On Friday, China announced that 134 items under the Cross-Strait Economic Cooperation Framework Agreement (ECFA) will be suspended starting June 15. The decision comes on the heels of President Lai Ching-te’s (賴清德) inauguration and two days of PLA military drills in waters surrounding Taiwan.
The ECFA was first signed in 2010 and includes 806 items approved for tariff reductions, as well as agreements laying out future steps for further cross-strait trade liberalization. China’s Taiwan Affairs Office Director Chen Binhua (陳斌華) said the ban is a response to Taiwan’s failure to remove trade restrictions on more than 2,500 Chinese products, which he said violates the provisions of the ECFA. Chen stated that President Lai’s “stubborn adherence” to supporting Taiwan independence also contributed to their decision to suspend tariff reductions.
Mainland Affairs Council Chairman Chiu Chui-cheng (邱垂正) called for constructive dialogue between the two sides. He pointed out that the ECFA has been beneficial to both Chinese and Taiwanese industries, and strongly protested the use of trade sanctions as a form of political intimidation. In response to Chen’s allegation that the ECFA was originally implemented on the basis of the 1992 Consensus of “one China, different interpretations,” and that Lai’s statements have therefore undermined the agreement, Chiu said the ECFA is in fact based on World Trade Organization regulations.
Premier Cho Jung-tai (卓榮泰) said the government’s first priority is to protect Taiwanese people and industries, and that Taiwan will express its position on China’s unilateral suspension of the ECFA to the international community. Economic Affairs Minister J.W. Kuo (郭智輝) added that the ministry will communicate with any businesses adversely impacted by the decision and assist them in shifting markets.
Members of the Legislature, including Legislature Minority Secretary-general Rosalia Wu (吳思瑤) of the DPP, Legislature Caucus Convener Fu Kun-chi (傅崐萁) of the KMT, and TPP Chairman Ko Wen-je (柯文哲) shared their opinions on the matter. Wu referred to the decision as another “trick” in China’s playbook for suppressing Taiwan, while Fu said he hoped President Lai could rejuvenate cross-strait relations. Ko stressed that the most crucial thing at this juncture is how the Taiwanese government plans to protect Taiwanese people.