SOURCE / ECONOMY
Ministry says probe into Taiwan authorities' trade restrictions indicates alleged violations of WTO rules
Published: Aug 17, 2023 10:28 PM
Shu Jueting, a spokesperson from the Ministry of Commerce of China Photo: VCG

Shu Jueting, a spokesperson from the Ministry of Commerce of China Photo: VCG


The Ministry of Commerce (MOFCOM) said initial findings in its ongoing probe into Taiwan authorities' trade restrictions showed the island authority has violated WTO principles and more items are now being investigated.

Experts urged Taiwan authorities to abolish such measures immediately and that the Chinese mainland may take countermeasures on relevant products.

MOFCOM on April 12 launched a trade barriers investigation into the Taiwan region's trade restrictions imposed on more than 2,000 imports from the Chinese mainland, after reviewing a request made by three industry associations.

Briefing the latest development in the trade probe, Shu Jueting, a spokesperson from MOFCOM, said on Thursday that initial findings have indicated the island authority's trade restrictive measures against goods from the Chinese mainland have violated the non-discrimination principle and rule of general elimination of quantitative restrictions of the WTO.

The update was announced as the secessionist Democratic Progressive Party (DPP) authorities on the Taiwan island once again sought to collude with US politicians to challenge the one-China principle, with a "transit" of Taiwan's deputy regional leader Lai Ching-te in the US.

Shu said that the mainland has repeatedly and clearly expressed its concerns on the island authority's trade restrictive measures in its trade policy review at the WTO.

Despite repeated urgings from the mainland side, the island authority has made no remedy so far, Shu said. 

Shu noted that as Taiwan has expanded the scope of import ban on mainland goods in recent years, the scope of mainland investigation now was expanded to include 2,509 items, up from April's 2,455 items.

The Chinese mainland has adopted positive, open and favorable policies and measures without specific restrictions on imports from the Taiwan island, while the Taiwan DPP authorities have been taking restrictive measures under the pretext of political and security reasons for a long time, Wang Jianmin, a cross-Straits expert at Minnan Normal University, told the Global Times on Thursday. 

The restrictions are discriminatory and violate WTO rules, said Wang, adding that the Chinese mainland has not made specific responses in consideration of the interests of the compatriots and enterprises. 

The increase of the items came as the Taiwan DPP authorities implemented the restrictive measures in conjunction with US' suppression measures targeting the Chinese mainland. 

The investigative body is processing the reviews in an orderly, just and open fashion and in accordance with China's Foreign Trade Law and Foreign Trade Barrier Investigation Rules, with questionnaires and field visit.

The probe, initiated upon due procedures at the request submitted jointly by three industry associations, including the China Chamber of Commerce of the I/E of Foodstuffs, Native Produce and Animal By-Products, will be concluded by October 12 this year. 

The island authorities' trade restrictive measures have affected a wide range of sectors, including petrochemical, textile, mechanical and electrical equipment, automobiles as well as many high-quality, low-cost agricultural goods and daily necessities, and relevant exporters suffered, Shu said, noting that companies and industry bodies participating in the review are also calling for the earlier cancellation of these restrictive measures by Taiwan. 

Moving forward, Wang said that the Chinese mainland may file cases through the WTO mechanism to require the Taiwan island to ease relevant restrictions, noting that the potential filing will not violate the one-China principle as both the Chinese mainland and the Taiwan island are WTO members. Meanwhile, Wang said that the Chinese mainland may take countermeasures on relevant products if the Taiwan DPP authorities persist with the restrictions.

The investigation is not targeted at Taiwan compatriots, but aims to counter "Taiwan independence" secessionists, who are actively working to undermine normal cross-Straits economic and trade cooperation, experts noted.

Experts said it is believed that the mainland will respond accordingly to the findings of the probe, and the DPP is responsible for any potential impact on the Taiwan regional economy, which is already facing downward pressure.

Relevant findings will be announced in due course, according to MOFCOM.