The Chinese mainland will suspend tariff reductions for 134 products from the Taiwan region starting June 15, a move experts say responds to recent political friction. 🔄 Analysts argue the decision stems from Taiwan authorities' refusal to reverse trade restrictions against mainland businesses and leader Lai Ching-te's recent 'two states' rhetoric during his inauguration speech.
Economic Fallout Looms
Small businesses in Taiwan face a direct hit, warns Teng Tai-Hsien of the Straits Economic & Cultural Interchange Association. 🏭 Over 10,000 Taiwanese enterprises rely on tariff-free access to mainland markets through the Economic Cooperation Framework Agreement (ECFA) – a deal credited with generating $10.1 billion in savings for the region since 2010.
Cross-Strait Ties at Risk
'The ECFA's value goes beyond economics – it builds bridges between people,' emphasizes academic Zhang Hua. 🌉 However, tensions escalated as Taiwan authorities blocked 2,500+ mainland imports and restricted tech collaborations last year. Tech-sector restrictions now cover 22 'protected core technologies.'
Business Leaders Urge Reset
Want Want China Times Group's Chou Hsi-wei stresses: 'Peaceful coexistence starts with recognizing our shared Chinese heritage.' 📉 With Taiwan's 2023 exports dropping 10% and economic growth hitting a 10-year low, industry voices argue political posturing can't offset lost trade opportunities.
