9 Jan, 2024
The integration measures were jointly announced on Tuesday by the mainland Ministry of Commerce, top economic planning body the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Taiwan Affairs Office – the official mainland agency managing cross-strait ties.
But the Ministry of Commerce also hit out at Taiwan’s ruling Democratic Progressive Party (DPP) on Tuesday, saying it had not taken any “effective measures” to lift trade restrictions on mainland goods and warning of further retaliatory moves.
Taiwan’s fisheries, machinery, automotive and textile sectors might be targeted for further suspension of preferential tariffs, state broadcaster CCTV quoted a ministry spokesman as saying, though Beijing’s carrot-and-stick trade approach to cross-strait ties has also included lifting a ban on Taiwanese grouper and some fruit imports.
The 21-article blueprint for “peaceful reunification” released on September 12 said authorities aimed to remove constraints on cross-strait trade and investment, and Taiwanese seeking mainland residency, to make Fujian the first-choice mainland gateway for Taiwanese residents and companies.
Expanding on this, the latest policy paper proposes 14 measures across five sectors for Fujian to “better leverage its unique relation with Taiwan” and boost its role as a “demonstration zone” for cross-strait integration. This will include support for Taiwanese service trade businesses wishing to invest in Fujian’s Pilot Free Trade Zone, faster customs clearance, and mutual recognition of professional qualifications.
The DPP has also stepped up exchanges with Washington in recent years. This has angered Beijing, which sees Taiwan as part of China to be reunited by force if necessary, and such moves as a challenge to its sovereignty.
While most countries, including the US, do not recognise the self-governed island as independent, Washington is opposed to any attempt to take Taiwan by force and is committed to arm it.
05:27
Taiwan election exposes generational rift over potential reunification with mainland China
The outcome of the January 13 presidential vote is expected to shape cross-strait and even US-China ties. Beijing has repeatedly attacked the front runner, DPP candidate Vice-President William Lai Ching-te, and his running mate Hsiao Bi-khim, as supporters of Taiwan independence. It strongly favours the main opposition party, the Beijing-friendly Kuomintang.
“[The DPP] has engaged in political manipulation, attempting to shift blame and evade responsibility [since then],” CCTV quoted the commerce ministry spokesman as saying on Tuesday.
Beijing’s December 21 move, in effect from this year, was seen as an early warning of the possible economic fallout of a DPP victory. The party criticised the timing of the trade probe as “obvious meddling in the election”.
The Taiwan Affairs Office said DPP’s stance on independence was the main cause for the difficulty in resolving issues related to the 2010 Economic Cooperation Framework Agreement.
The directive said the coastal areas of Fujian should strengthen trade links with Quemoy and Matsu by easing tariff and regulatory frameworks and building cooperative development zones.
The plans include helping Fujian to set up e-commerce comprehensive pilot zones catering to the Taiwan market, and a small commodity trading market that would become the leading mainland platform for Taiwan’s small and medium enterprises.
The paper also called for more efforts to help Taiwanese companies in Fujian to invest in advanced manufacturing and hi-tech industries, and for common industrial standards to promote interoperability.