Taiwan accuses China of economic threat after tariff cut removals

Taiwan accuses China of a “typical economic threat” after the announcement of China to end tariff cuts on the import of chemical weapons. China removed the tariff cuts saying Taiwan violated a trade agreement with it.

This decision of China comes just ahead of the Taiwanese elections which will take place next month. Taiwan’s presidential and parliamentary elections are taking place on January 13, 2024.

According to Taiwan, China considers Taiwan as its territory and attempts to force Taiwan to accept China’s sovereignty claims.

Taiwan accused China of ‘typical economic coercion’ after Beijing announced the end of tariff cuts on some chemical imports from the island – saying Taipei violated a trade agreement – just ahead of Taiwanese elections next month https://t.co/v5hwtOcxZo
— Reuters (@Reuters) December 21, 2023

The Taiwan government has repeatedly stated that China is attempting to influence the elections and accuses it of economic threat. China is trying to do so whether through military forces or by co-opting Taiwanese officials to achieve a favorable outcome for it.

Why did China end tariff cuts for Taiwan?

China’s Finance Ministry announced that traffic cuts for 12 products including acrylic will be stopped beginning on January 1. This traffic cut is in the wake of discriminatory prohibitions and restrictions that Taiwan imposed on Chinese exports in violation of a 2010 trade agreement.

China stated it is hoped that Taiwan will take effective steps to lift trade restrictions on the mainland. It announced last week that it had found in an investigation that Taiwan had created trade barriers in violation of both WTO rules and the 2010 trade agreement.

China considers Taiwan a “trade barrier”

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Taiwan Office of Trade Negotiations said China should stop its one-sided political manipulation. Instead, it should hold discussions under the World Trade Organization (WTO). China and Taiwan are both members of the WTO.

It further stated the investigation of China has been unfair, unclear, and in violation of international forums. However, Taiwan Minister Kung Minghsin said the tariff move of China would not affect the economy of Taiwan.

Although China blames the ruling party DPP of Taiwan saying its stubborn adherence to Taiwan’s independence has made it hard to properly resolve problems. However, DPP believes only the Taiwanese can decide their future.