Added 134 Items to 12 Suspended Categories Since December Last Year
China has decided to suspend tariff reductions on 134 items, including lubricating base oils from Taiwan.
The Tariff Commission of the State Council of China stated on the 31st, "The Taiwan region has unilaterally imposed discriminatory prohibitions and restrictions on exports of mainland (China) products, violating the provisions of the Economic Cooperation Framework Agreement (ECFA) between the two sides." It added, "On December 21, 2023, the Tariff Commission suspended tariff reductions on some ECFA products, but the Taiwan region has still not taken any effective measures to lift trade restrictions." Furthermore, it said, "In accordance with regulations and procedures, tariff reductions on some additional ECFA products will be suspended."
The Taiwan-origin products subject to the additional suspension of tariff reductions include lubricating base oils, liquid paraffin, various plastic and metal products, lithium-ion batteries, vehicle parts, golf equipment, and a total of 134 items. The suspension of tariff reductions will take effect from June 15.
Under the ECFA signed between China and Taiwan in 2010, from January 2013, 267 Taiwan-origin and 539 China-origin items were designated as "early liberalization" items, receiving duty-free or reduced tariff benefits. However, in December last year, ahead of the Taiwan presidential election, Chinese authorities suspended tariff reductions on 12 Taiwan-origin items including propylene, butadiene, isoprene, and vinyl chloride.
On the 20th, after Taiwan President Lai Ching-te mentioned sovereignty in his inauguration speech, China conducted a "Taiwan encirclement" military exercise involving the army, navy, air force, and rocket forces just three days after his inauguration, while government agencies and state media have been pressuring President Lai.
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