China Suspends Preferential Tax Rates on Taiwanese Chemical Imports

Move follows a trade barrier investigation and comes ahead of Taiwan's elections, sparking accusations of 'economic coercion' by China.

China has suspended preferential tax rates on 12 key Taiwanese chemical imports, effective from January 1, accusing Taiwan of violating a cross-strait trade agreement.
The suspension follows a nine-month trade barrier investigation by China, which concluded that Taiwan had adopted discriminatory bans and restrictions on the export of mainland products.
Taiwan has accused China of 'typical economic coercion' and has called for talks under the World Trade Organization (WTO).
The move comes ahead of Taiwan's presidential and parliamentary elections on January 13, and is seen by some as an attempt by China to influence the vote.
Despite the tensions, analysts suggest the economic impact of the measures will be minimal, as the affected products account for only 1.1% of China's imports from Taiwan.