Fri, Dec 22, 2023 page1

• China’s tariff move ‘regrettable’: ministry

  LITTLE EFFECT? National Development Council Minister Kung Ming-hsin said suspension of tariffs relief would not affect the economy, as only 4% of exports are through the ECFA

  • Staff writer, with CNA
  • • 
    • 
    • 

  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.

  

  Propylene storage tanks operated by CPC Corp, Taiwan are pictured in Kaohsiung’s Cianjhen District yesterday.

  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.
• Most Popular

  • 1

    Robot dogs pose no security concerns: Taipei

  • 2

    Taiwan wins Little League world title

  • 3

    US Marines eye new Pacific supply outposts

  • 4

    Two arrested for public indecency after caught having sex in Kaohsiung park

  • 5

    TSMC to break ground on advanced fab in October