Insights
- From January 1, 2024, China will suspend preferential tariffs on select Taiwanese chemical products like propylene and paraxylene.
- This response to Taiwan's alleged discriminatory trade practices, such as bans on mainland products, breaches the Economic Cooperation Framework Agreement, which aims to reduce trade barriers across the Taiwan Strait.
The Chinese mainland has announced the suspension of preferential tariffs on specific chemical products originating from Taiwan. This decision will be effective from January 1, 2024.
Twelve chemical items, including propylene and paraxylene, would no longer benefit from reduced tax rates under the Economic Cooperation Framework Agreement (ECFA), Customs Tariff Commission of the State Council said in a media release.
The ECFA, a pivotal economic agreement, was designed to lower commercial barriers across the Taiwan Strait.
The commission's statement highlighted that the suspension is a direct response to Taiwan's unilateral and discriminatory trade practices, which reportedly contravene the terms of the ECFA. These practices include bans and restrictions on products from the Chinese mainland, Chinese media reports said.
Fibre2Fashion News Desk (KD)
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