TAIPEI (TVBS News) — China announced on Friday (May 31) that it will suspend preferential tariff rates under the Economic Cooperation Framework Agreement (ECFA) for 134 import products originating from Taiwan starting June 15.
This decision marks a substantial shift from December 2023, when only 12 tax items were targeted, indicating a deepening rift in cross-strait economic relations.
The suspension of the ECFA tariff rates by China's finance ministry is a response to Taiwan's discriminatory trade restrictions on over 2,500 mainland products, a violation of the ECFA provisions, China's Taiwan Affairs Office (TAO) spokesperson Chen Binhua said.
Chen stated that this action is a direct consequence of Taiwan's failure to lift its trade restrictions against the mainland and its actions that undermine cross-strait economic and trade cooperation.
He emphasized that the ECFA, signed on the basis of the "1992 Consensus," has been compromised by Taiwan's pro-independence stance, undermining the foundation for cross-strait negotiations and the agreement's implementation.
The TAO spokesperson warned that adherence to a pro-independence agenda not only jeopardizes peace and development but also inflicts severe damage to the interests of Taiwanese businesses and the public.
This development suggests a further deterioration in cross-strait relations, with significant implications for the economic and political landscape in the region.
As tensions continue to escalate, the impact on Taiwanese enterprises and the broader economy remains a critical concern, highlighting the need for a cautious approach to navigating the complex cross-strait dynamics.
