China’s Ministry of Commerce recently announced the results of its “investigation on trade barriers against Taiwan”. On the 21st, it terminated the agreed tariff rates on the import of 12 petrochemical products including propylene on the grounds that Taiwan violated the provisions of the Cross-Strait Economic Cooperation Framework Agreement (ECFA).Former legislator Cai Zhengyuan appeared on a political commentary program on the 22nd“Wind Direction, Dragon and Phoenix”It was pointed out that China only imposed sanctions on the petrochemical industry with low tariffs, which is a sign of goodwill. However, if Taiwan does not respond, China may withdraw 539 items of tariff preferences, causing many people in Taiwan to lose their jobs.
Cai Zhengyuan pointed out that EFCA has a total of 539 early-harvest list benefits. China has selected 12 petrochemical industries with tax rates below 10%, and has not targeted the textile and machinery industries with higher tax rates. Not only that, the sanctioned projects are all projects of large companies such as China National Petroleum Corporation and Formosa Plastics. Even if the tax rate reduces orders for sales to the mainland or reduces profits, it will not affect the employment of employees of large companies. For those with above For Formosa Plastics and China National Petroleum Corp., which have 10,000 employees, the number of employees can be reduced by at most a few hundred, but they can also be transferred to other departments or related industries. “This wave is just a warning bell, the fire has not started yet.”
Tsai Ching-yuan mentioned that among the 2,509 products that Taiwan prohibits from being exported to the mainland, there are agricultural products, metal products, textiles, etc. However, these products are not produced in Taiwan itself, but are imported in large quantities from Southeast Asia, South Korea, and Japan. Therefore, Taiwan does not prohibit China from importing them. The reason is that Taiwan has had a trade deficit with Japan since 1950 and has never had a surplus with Japan, but it still allows Japanese muscat grapes, apples, and beer.
Tsai Ching-yuan said that Taiwan’s foreign trade policies have been seriously interfered by the ideology of the Democratic Progressive Party. Most of them are designed to bribe Japan and the United States, and are not planned with Taiwan’s interests at the center. They can even import pork containing dopamine from the United States, but not from China. mutton. Tsai Ching-yuan also mentioned that politics aside, Taiwan and China have a complementary relationship in economy and trade, and the DPP government’s ban on the import of Chinese products is a complete violation of WTO regulations.
Regarding the statements by Executive President Chen Jianren and Economic Minister Wang Meihua that they intend to appeal to the WTO against China’s sanctions, Cai Zhengyuan said that ECFA is a free trade agreement between our country and China, and “the WTO will not care about you.” He also reminded that the only trade agreement currently protecting Taiwan is the Information Technology Agreement (ITA) passed by the WTO in 1979. Exported information and communication electronic products cannot be subject to tariffs in any country. However, China can also claim that Taiwan violated ECFA first. stipulates that Taiwan should be punished with ITA.
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2023-12-23 01:21:33
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