China’s economic sanctions on Taiwan over Pelosi visit ‘symbolic’, but could hit billions if tensions escalate
- China has suspended natural sand exports, while also blocking imports of citrus fruits, chilled white scallops, frozen mackerel, confectionery, biscuits and bread
- US House Speaker Nancy Pelosi defied repeated warnings from Beijing and met President Tsai Ing-wen on Wednesday in Taipei
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US House Speaker Pelosi meets Taiwanese president, officials and activists on controversial visit
Mainland China could target hundreds of billions of dollars worth of Taiwanese investments and two-way trade if tensions with the self-ruled island worsen after a sharp slide this week due to US House Speaker Nancy Pelosi’s visit to Taipei, analysts said.
But they are targeting the ruling pro-independence Democratic Progressive Party and probably saving any moves against high-value exports or direct investments as a final move, the analysts added, as measures against Taiwan could ripple back to the mainland.
“[Taiwanese] companies are such an integral part of the Chinese value chain that it becomes difficult to put too much pressure on those trade routes,” said Zennon Kapron, the Singapore-based director of financial industry research firm Kapronasia.
The People’s Liberation Army kick-started large-scale military drills following Pelosi’s arrival on Tuesday night, while Beijing has already rolled out various economic sanctions.
Pelosi’s visit might well push China into restricting certain imports from Taiwan and the
The Ministry of Commerce also suspended exports of natural sand, a raw material needed for the construction of transport infrastructure and water projects.