Economics Minister Kuo Jyh-Huei (郭智輝) gave reassurances on Wednesday that the ministry will provide tax subsidies to businesses affected by China’s unilateral decision. This was said in response to China’s termination of preferential tariff rates while delivering a report at the Legislature.
China announced on May 31 the suspension of tariff concessions on 134 Taiwanese products starting June 15. The imports had been part of a 2010 bilateral trade deal also known as the Economic Cooperation Framework Agreement (ECFA). The categories of items include plastics, textiles, steel and metal, transportation equipment, heavy machinery, wires, and cables made in
Taiwan.
Kuo noted that this was the second time that China has taken such actions. Last December 2023, preferential import duties for 12 Taiwanese petrochemical products were terminated starting this year. He observed that the 134 affected products this time are mostly from traditional industries, accounting for about 2% of total exports.
Kuo says to help businesses manage export losses, in addition to the tax subsidies, assistance will be provided in upgrading, transforming, and shifting markets to enhance competitiveness. In particular, Southeast Asia and India are potential markets and the ministry can assist businesses in establishing a presence in those regions for market diversification.