China Threatens Taiwan With More Trade Measures After President’s Speech Sparks Anger

China is considering further trade measures against Taiwan, the Ministry of Commerce announced on Saturday, October 12. 

This comes just two days after Taiwan's President William Lai Ching-Te delivered a speech that angered Beijing. According to the Chinese government, Taiwan’s ruling Democratic Progressive Party (DPP) has not made any effort to lift trade restrictions against mainland China. As a result, China is looking into new actions it can take in response to these trade issues.

China sees Taiwan as part of its own territory, even though Taiwan is a self-governed island with its own government and political system. China strongly opposes any talk of Taiwan being independent.

 President Lai is viewed by Beijing as a “separatist” because he supports the idea that Taiwan’s future should be decided only by its own people, not by China. This disagreement has led to years of rising tension between the two sides.

Lai’s National Day Speech Causes Friction

In a speech on Thursday, Taiwan’s National Day, Lai made statements that upset the Chinese government. He said that the People's Republic of China has no right to represent Taiwan. 

However, he also said that Taiwan is open to working with China on shared global challenges like climate change, showing a willingness to cooperate on certain issues. Despite this, China was angered by the remarks, accusing Lai of promoting "separatist ideas" and making the situation between the two sides even more difficult.

Following Lai’s speech, China’s Ministry of Commerce hinted that new trade measures could soon be taken against Taiwan. These actions might involve tariffs, or taxes on goods, and other restrictions. 

In May, China had already reinstated tariffs on 134 items imported from Taiwan. These tariffs had been removed under a trade agreement called the Cross-Strait Economic Cooperation Framework Agreement (ECFA), signed in 2010. However, China brought them back, claiming that Taiwan was not keeping its promises under the deal.

Now, China is saying it may take even more economic steps based on its investigation into Taiwan’s trade practices. Some believe this could lead to changes in the ECFA agreement, reducing the benefits that Taiwan has enjoyed in its trade relationship with China.

China's View on Taiwan's Government

China’s Taiwan Affairs Office also responded to Lai’s speech by accusing Taiwan’s DPP government of continuing to push for independence. 

They said this political stance is the main reason why trade problems between China and Taiwan cannot be solved through negotiations. According to the office, Taiwan’s political position is preventing any meaningful progress on trade talks.

Tensions between China and Taiwan have been high for many years, but they have grown even more serious recently. 

China's threats of new trade actions could make the relationship between the two sides even worse. As Taiwan continues to assert its own identity and push back against China’s claims, Beijing seems determined to increase economic and political pressure.