Taiwan accused China of engaging in economic coercion and election interference following Beijing’s announcement to terminate tariff cuts on certain chemical imports from the island. China argued that Taipei had violated a trade agreement.
This move comes just ahead of Taiwan’s presidential and parliamentary elections scheduled for January 13. The elections are taking place amid increased tensions with China, which considers Taiwan as its territory.
The Taiwanese government, particularly the ruling Democratic Progressive Party (DPP), has consistently asserted that China is attempting to interfere in the elections, either through military pressure or influencing Taiwanese politicians to favour Beijing.
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China’s Finance Ministry said that starting Jan. 1, tariff cuts will be suspended for 12 products, including acrylic and p-xylene, citing “discriminatory prohibitions and restrictions” Taiwan imposed on Chinese exports in violation of a 2010 trade deal.
“It is hoped that Taiwan will take effective measures to lift trade restrictions on the mainland,” it said.
China last week said it had determined Taiwan had put up trade barriers in contravention of both World Trade Organization (WTO) rules and the 2010 trade deal.
Taiwan’s Office of Trade Negotiations, in a statement after a weekly Cabinet meeting on Thursday, said China was carrying out “typical economic coercion” and that it should stop its “one-sided political manipulation” and have talks under the World Trade Organization, of which both are members.
China’s investigation process has been unfair, opaque and not in line with international norms, it said.
“Our government was deliberately skipped over during the investigation process, showing that (the probe’s) political aims were greater than their economic ones.”
Taiwan’s China-policy-making Mainland Affairs Council said that China had many different ways to interfere in the election, and the trade probe was one of them.
“The election is the Chinese communists’ short-term political goal, but its economic coercion against Taiwan will not end with the election and will continue for a long time,” spokesperson Jan Jyh-horng told reporters.
However, National Development Council Minister Kung Ming-hsin said the tariff move would not affect Taiwan’s economic outlook.
“We won’t change next year’s economic growth (forecast) because of this. It will still exceed 3%,” Kung said.
China’s Taiwan Affairs Office laid the blame on Taiwan’s government, saying the ruling Democratic Progressive Party’s (DPP) “stubborn adherence to Taiwan independence” had made it hard to properly resolve problems.
China detests the DPP and its presidential candidate, current Vice President Lai Ching-te, who is leading in the polls, believing they are separatists.
Lai says only Taiwan’s people can decide their future and has repeatedly offered talks with China but has been rebuffed.
With inputs from Reuters.