China suspends tariff rebates on select Taiwan imports

ISTANBUL

China on Thursday said it will suspend special tariff rebates on select imports from Taiwan, local media reported.

Beijing said the move is in response to the island nation’s “unilateral, discriminatory trade restrictions,” according to Xinhua News.

The tariff reductions on 12 items of chemical products from Taiwan will be suspended as of Jan. 1.

Beijing said Taiwan’s trade bans and restrictions on mainland products have breached the Economic Cooperation Framework Agreement, a free trade agreement signed in 2010 and covers 806 list of goods approved for tariff reductions.

The agreement defines the trade relations across the Taiwan Strait as Taiwan’s almost 40% of exports are shipped to the mainland. The bilateral trade volume in the first 11 months of 2023 was recorded at around $245 billion.

Beijing said last week that Taipei had imposed “barriers” on imports of numerous goods from mainland China during an eight-month probe.

China considers Taiwan as its “breakaway province,” while Taipei has insisted on its independence since 1949, enjoying full diplomatic relations with 13 nations.

The latest trade measures by China come as Taiwan prepares to hold its presidential elections on Jan. 13.