Beijing rules Taiwan’s ban on Chinese goods is trade barrier

China determined that Taiwan’s ban on Chinese imports constitutes a trade barrier, with the decision coming a month before the self-governing island holds a critical presidential election.

The move, announced Friday by China’s Ministry of Commerce, follows an investigation since April after Taiwan banned the import of more than 2,500 Chinese products. The review was meant to last till Jan. 12, a day before the Taiwan election that could determine the future of its relations with Beijing.  

While China didn’t specify what steps it might take following its decision, Taiwan said the timing of the probe indicated it’s politically motivated and intended to interfere with the election through economic coercion. The Taiwanese curbs cover a range of Chinese goods including food, petrochemicals and textiles.

Taipei responded to China’s move by saying Beijing should stop its ‘political manipulation’ immediately, according to the Office of Trade Negotiations. The probe violates World Trade Organization principles and the two sides should hold talks in accordance with international rules to resolve disputes, the office said. 

Beijing’s move could affect the Economic Cooperation Framework Agreement, a trade deal signed between Taiwan under former President Ma Ying-jeou and China in 2010 that reduced tariffs on about 500 Taiwanese products. 

Any termination of the deal could hurt Taiwan’s exports significantly and pose a drag on economic growth, according to a report by Taipei-based Central News Agency, citing Dachrahn Wu, director of National Central University’s Research Center for Taiwan Economic Development.

--With assistance from Betty Hou.