China to tax agricultural products to punish Taiwan

China to tax agricultural products to punish Taiwan
China to tax agricultural products to punish Taiwan

China announced Wednesday that it will end tariff exemptions on 34 types of agricultural products imported from Taiwan, including fresh fruits and vegetables, amid bilateral tensions. The move, billed as a retaliatory measure, will take effect on September 25, state broadcaster CCTV reported, citing a government commission. It will likely be a blow to Taiwanese producers.

“The Taiwan region has unilaterally adopted discriminatory bans and restrictions on exports of products from mainland China, seriously hampering cross-Strait economic and trade cooperation.”CCTV reported.

“The tariff exemption policy for 34 types of agricultural products originating in Taiwan, including fresh fruits, vegetables and aquatic products, will be abolished.”she said, citing the government commission on customs duties.

Bilateral relations have been terrible since 2016 and the arrival of Tsai Ing-wen as president of the island, then of her successor Lai Ching-te in May 2024, both generally being in favor of more relaxed ties between Taiwan and mainland China. They are as such hated by Beijing, which has been exerting strong diplomatic, economic and military pressure on the island territory for several years.

Read the fileTaiwan threatened by China: everything you need to know about the tensions between the small democratic island and its communist neighbor

Agreements dating back to 2005

According to Chen Binhua, a spokesman for the Taiwan Affairs Office, a Chinese government agency, the exemptions on Taiwanese agricultural and aquatic products date back to 2005 and 2007 and have greatly served the interests of the island’s producers. “But since the Lai Ching-te administration came to power, it has persisted in its position supporting ‘Taiwan independence’.” And “intensified hostility” between Beijing and Taipei, Mr. Chen said, according to the official Xinhua news agency.

“It has unilaterally imposed import restrictions on more than 1,000 types of agricultural products originating from mainland China, seriously harming people’s well-being.” residents of the island and the mainland, he stressed. Tropical fruits from Taiwan are highly valued in mainland China, where they are an important outlet for producers on the island.

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