China’s true colors
Last month, the Chinese Customs Tariff Commission announced that starting from Jan. 1, preferential tariffs on 12 petrochemical products established by the Economic Cooperation Framework Agreement would be suspended. Chinese officials have indicated that preferential tariffs related to agriculture and fisheries, machine and vehicle parts, and textiles might also be revoked.
In the face of China’s economic coercion, a great number of Taiwanese businesspeople have already shifted their focus to the Southeast Asian market. Although these enterprises are affected by Beijing’s move, Taiwan clearly has rid itself of its entire dependence on the Chinese market. The New Southbound Policy has helped Taiwanese businesspeople be more flexible. The government’s goal of diversifying trade has been gradually realized.
On the other hand, China insists on controlling its market in a conventional way. Beijing tries to attract developing countries to its side by providing some incentives, derived from China’s internal market.
However, the truth is that for some countries that have participated in China’s Belt and Road Initiative (BRI), their economies soon collapsed.BRI contracts are fundamentally unequal treaties. China is an egoistic country and even more selfish than the West. Beijing has no sympathy for others.
China has suspended preferential tariffs, but this would not pose a major threat to Taiwan’s economy. Instead, Beijing’s move has in some ways helped Taiwanese confirm that economic decoupling from China is the right thing to do. The government has been exploring the Southeast Asian market in Vietnam, Thailand and India. As Taiwan continues to confront China’s unreasonable economic sanctions, the government must offer more precautionary measures to lower the risk for small and medium-sized enterprises. That way, officials and businesspeople can be prepared and collaborate to deal with upcoming problems.
Lin Che-yu
Taipei
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