In response to the announcement by the Chinese Communist Party (CCP) today (May 31) to cancel the second batch of ECFA tariff concessions, Chen Chuizheng, head of Taiwan’s Mainland Affairs Council, expressed strong protest and dissatisfaction, stating that the CCP unreasonably and unilaterally suspended 134 items from Taiwan’s ECFA early-harvest tariff reduction list under the pretext of trade sanctions.
The State Council Tariff and Tax Commission of the CCP announced today the suspension of tariff concessions for some products under the Economic Cooperation Framework Agreement (ECFA) with Taiwan, including 134 import items such as lubricating oil base oil originating from Taiwan, effective from June 15.
Premier Su Tseng-chang of Taiwan led heads of government departments to the Legislative Yuan today for a policy report and questioned by legislators. Legislator Wu Si-yao questioned the CCP’s violation of WTO and ECFA regulations by unilaterally suspending tariff concessions for Taiwanese ECFA products, asking how the government plans to respond.
Su Tseng-chang responded that when any crisis threatens the people and industries of a country, the government’s priority is to protect its citizens and industries and express opposition and a hope for correction to the international community through proper channels. He also emphasized the importance of adhering to established rules in international organizations to achieve a fair position globally.
Chen Chuizheng emphasized that the CCP’s actions, invoking trade sanctions and accusing Taiwan of violating ECFA, unreasonably and unilaterally suspended the 134 products on Taiwan’s ECFA early-harvest list. He condemned this political pressure and intimidation, which distorts the mutually beneficial development of cross-strait economic and trade relations and hinders industrial division between the two sides, shifting them further apart and disrupting cooperation.
Chen Chuizheng stated that despite the CCP’s actions not aligning with WTO and ECFA norms, negotiation remains crucial. Addressing trade disagreements between both sides, the mainland should face reality, remove political obstacles, and engage in practical communication for the most effective resolution in cross-strait economic and trade relations.
Minister of Economic Affairs Guo Zhihui of Taiwan mentioned that the ministry will communicate extensively with affected businesses to assist in market diversification in response to the current situation.
Presidential spokesperson Lee Wen issued a statement via press release today, emphasizing that both mainland China and Taiwan are WTO members and crucial participants in the global economic and trade system. Conducting negotiations on economic and trade issues within the framework and norms of the WTO is essential. The international community disapproves of political interference in global trade.
Regarding the economic coercion from the CCP towards Taiwan, Lee Wen stated that with the government’s early anticipation and preparedness, the impact is limited and manageable. Efforts to accelerate global industry layout and provide the best support to industries will continue. Lee Wen urged the public to remain calm and assured.
Lee Wen called on the CCP to abandon politically intervening in the market and distorting the normal functioning of the global economy through economic coercion, emphasizing the importance of returning to negotiation under the WTO framework to seek orderly and mutually beneficial cross-strait economic and trade relations.