The Ministry of Economic Affairs (MOEA) yesterday said the government has a plan in place to assist local businesses after China warned it was considering further suspending the preferential tariffs for Taiwanese goods.
Deputy Minister of Economic Affairs Chen Chern-chyi (陳正祺) said at a news conference in Taipei that the government would assist Taiwanese businesses in diversifying their markets by helping them become more competitive, while also providing industry players with research and development subsidies to carry out product differentiation and strengthen market expansion.
Given China’s industrial overcapacity and the situation in the Red Sea, Taiwanese firms in the auto and textile industries have already been diversifying to other markets, lowering their dependence on the Chinese market, Chen said.
Photo: CNA
The Economic Cooperation Framework Agreement (ECFA) is mutually beneficial and China should not engage in political manipulation or use cross-strait trade as a “weapon,” Chen said, accusing Beijing of using the bilateral trade agreement to exert pressure on Taiwan ahead of the presidential and legislative elections tomorrow.
Chen’s remarks came after the Chinese Customs Tariff Commission on Tuesday said that it was studying measures to suspend tariff concessions on more Taiwanese imports such as agricultural, fisheries and machinery products as well as auto parts and textiles.
The move is being contemplated because the “Democratic Progressive Party authorities” have not taken effective measures to remove Taiwan’s trade restrictions following China’s suspension of preferential tariffs on 12 Taiwanese products, the commission said.
The commission is referring to Taiwan’s ban on imports of more than 2,400 Chinese goods, which China last month described as a “trade barrier.”
Hsiao Chen-jung (蕭振榮), chief of staff of the Office of Trade Negotiations under the Executive Yuan, yesterday said cross-strait trade issues should be handled by WTO mechanisms.
He criticized China for adopting unilateral measures to terminate some of the ECFA terms, which contravenes WTO norms.
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