Taipei, Aug. 20 (CNA) Taiwan’s Mainland Affairs Council (MAC) has accused Beijing of seeking to meddle in Taiwan’s presidential election by launching an investigation into what China has described as trade barriers imposed by Taiwan.
It was the first time that Taiwan’s government agency in charge of cross-Taiwan Strait affairs has branded the probe launched by China as interference in the presidential election, slated for Jan. 13, 2024.
The time frame in which the fair trade inspection will be carried out — from Apr. 12 to Oct. 12, 2023 or Jan. 12, 2024 if necessary– pointed to economic coercion that is politically motivated, the MAC argued in a statement.
The MAC’s comment came in response to the release of the preliminary results of an investigation into Taiwan’s use of the 1993 Regulations Governing Trade between the Taiwan Area and the Mainland Area to ban imports of certain Chinese goods.
Beijing had looked into what it alleged were trade barriers imposed by Taiwan on more than 2,455 Chinese products, and in its initial findings on Aug. 17 said that Taiwan was in breach of World Trade Organization (WTO) rules.
It threatened to end preferential tariffs for select Taiwan goods under the Economic Cooperation Framework Agreement (ECFA) as a potential retaliatory measure.
The ECFA was signed in 2010.
On Aug. 18, Taiwan’s Ministry of Economic Affairs (MOEA) dismissed China’s accusations as politically motivated, stating that Taiwan’s ban of certain Chinese imports on protectionist and national security grounds was not in breach of WTO rules.
The MOEA also underlined that the 1993 regulations had come into existence before the two countries joined the WTO in 2002.
In light of the longstanding nature of the current arrangements, the MOEA said it hoped China would refrain from “politicizing” trade issues and instead discuss any concerns regarding import bans with Taiwan at the WTO.
But asked on Aug. 17 if China might suspend preferential tariffs under the ECFA, Shu Jueting (???), a spokesperson for China’s Department of Commerce, said corresponding measures would be taken if the department’s ongoing investigation substantiated claims of discriminatory practices by Taiwan.
Shu said China had raised its concerns via the WTO’s trade policy review mechanism several times over the years, but Taiwan had yet to change its regulations, and that the list of Chinese agricultural, textiles, metals, coal and mineral imports prohibited by Taiwan continued to grow, reaching 2,509 products as of Aug. 17.
Hsu Chia-hao (???), an assistant political science professor at National Sun Yat-sen University in Taiwan, told CNA that Beijing will use the inspection strategically based on how the election unfolds.
For instance, the investigation could be used to manipulate voter preferences during the campaign period, or as an excuse for economic punishment if the election outcome did not meet Beijing’s expectations, Hsu said.
Amid the cross-strait standoff, however, local industry representatives called for more communication.
Hsu Shu-po (???), the president of the General Chamber of Commerce of the Republic of China, said the business community is concerned about possible disruptions to the ECFA.
Neither China nor Taiwan benefits from a halt in economic exchanges as they are important trade partners, and it required both sides to extend goodwill to solve related disputes, Hsu said.
