The Chinese government’s announcement that it is to suspend tariff relief on imports of 12 Taiwanese petrochemical products from Jan. 1 is “regrettable,” the Ministry of Economic Affairs said in a statement yesterday.
The move is the latest example of Beijing “politicizing trade,” this time in the run-up to the presidential and legislative elections on Jan. 13, the ministry said.
Taiwan continues to urge that any trade disputes be handled through the WTO, of which both sides are members, it said.
Photo: CNA
The comments came after the Chinese Customs Tariff Commission announced sanctions on 12 petrochemical products, including propylene and paraxylene, which have reduced tariffs under the Economic Cooperation Framework Agreement (ECFA) that the two sides signed in 2010.
The measures come in response to “unilateral, discriminatory trade restrictions” by Taiwan on imports of Chinese products, contravening ECFA provisions, the commission said, referring to the results of a probe that Beijing announced last week.
Office of Trade Negotiations Deputy Trade Representative Jenni Yang (楊珍妮) described the commission’s decision yesterday as “classic economic coercion” and out of step with international norms.
However, National Development Council Minister Kung Ming-hsin (龔明鑫) said that the move would not harm Taiwan’s economic outlook, as overall ECFA exports only account for about 4 percent of the nation’s total and only 12 items are affected.
“We will not change next year’s economic growth [forecast] because of this. It will still exceed 3 percent,” Kung told reporters after a regular Cabinet meeting.
The Mainland Affairs Council separately condemned Beijing’s “election interference,” saying its actions harm others at no benefit to itself.
Zhu Fenglian (朱鳳蓮), spokeswoman for China’s Taiwan Affairs Office, cast blame for the decision on trade restrictions enacted by the Democratic Progressive Party government.
Beijing is hopeful that cross-strait relations can “return to the right track of peaceful development,” Zhu said, adding that negotiations to resolve trade disputes could begin “immediately” on the basis of the so-called “1992 consensus.”
The “1992 consensus” refers to a tacit understanding between the Chinese Nationalist Party (KMT) and the Chinese Communist Party that both sides of the Taiwan Strait acknowledge that there is “one China,” with each side having its own interpretation of what “China” means.
The Petrochemical Industry Association of Taiwan said that because much of the petroleum sector consists of joint products — those generated in a single production process — the effects of the reinstated tariffs are likely to be felt up and down supply chains.
The Taipei-based Chinese National Federation of Industries said that the government should set up channels to communicate with China on the issue, while also expediting efforts to help local companies diversify into other international markets.
Ministry data showed that about US$1.8 billion of the 12 products were exported to China in the first 11 months of this year, or about 1.3 percent of Taiwan’s total exports to China.
The vast majority of those products — about US$1.6 billion — would now be subject to an import tax of 1 to 2 percent, it said.
Through last month, China accounted for about 35 percent of Taiwan’s total annual exports, down from 40 percent in previous years, it added.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
SEA WARNING LIKELY: The storm, named Gaemi, could become a moderate typhoon on Wednesday or Thursday, with the Taipei City Government preparing for flooding A tropical depression east of the Philippines developed into a tropical storm named Gaemi at 2pm yesterday, and was moving toward eastern Taiwan, the Central Weather Administration (CWA) said. Gaemi could begin to affect Taiwan proper on Tuesday, lasting until Friday, and could develop into a moderate typhoon on Wednesday or Thursday, it said. A sea warning for Gaemi could be issued as early as Tuesday morning, it added. Gaemi, the third tropical storm in the Pacific Ocean this typhoon season, is projected to begin moving northwest today, and be closest to Taiwan on Wednesday or Thursday, the agency said. Today, there would likely
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old