China’s Trade Sword Dangles Over Taiwan as Taiwanese Elections Near

In a recent escalation of tensions between China and Taiwan, the Chinese government has issued a warning of additional trade sanctions if Taiwan’s ruling Democratic Progressive Party (DPP) continues to support independence. The threat comes ahead of Taiwan’s presidential and parliamentary elections scheduled for January 13, 2023, as China intensifies efforts to assert its claims over the self-governing island.

The latest round of hostilities began when Taiwan accused China of economic coercion and election interference after Beijing terminated tariff cuts on certain chemical imports from the island. The move was justified by China, alleging that Taiwan violated a trade agreement signed in 2010 between the two sides. China argued that Taiwan had erected trade barriers in violation of World Trade Organization (WTO) rules and the terms of the 2010 trade deal.

Speaking at a routine news briefing in Beijing, Chen Binhua, spokesperson for China’s Taiwan Affairs Office, pointed to the DPP’s adherence to Taiwan’s formal independence as the “root cause” of the ongoing issues related to the 2010 agreement. Chen stated, “If the DPP authorities are determined to persevere, continue to stubbornly adhere to their Taiwan independence position, and refuse to repent, we support the relevant departments taking further measures in accordance with the regulations.”

China has consistently opposed the DPP and its presidential candidate, Vice President Lai Ching-te, considering them separatists. Despite leading in the polls, Lai maintains that only the people of Taiwan can decide their future and has expressed willingness to engage in talks with China, a proposal that has been consistently rebuffed by Beijing.

Chen emphasized that Taiwan is “facing a crossroads” and insisted that discussions could only take place on the basis of opposing Taiwan’s independence, reinforcing China’s stance that any move towards independence would be met with military action.

Notably, the spokesperson extended “heartfelt thanks” to Taiwanese companies that donated money to aid recovery efforts following an earthquake in northwestern China that claimed the lives of nearly 2,000 people. However, he made no mention of condolences from Taiwanese President Tsai Ing-wen or offers of assistance from the Taiwanese government.