China to Heighten Economic Pressure on Taiwan


China’s head of the General Administration of Quality Supervision, Inspection and Quarantine, Zhi Shuping, attends a news conference on the sidelines of China’s National People’s Congress (NPC) in Beijing, China, March 14, 2017. REUTERS/Stringer

In my post “China Subdues Taiwan by Military Threat, Driving, Drawing Away Funds, Talents” on March 16, I said that China using stratagem to subdue Taiwan by stratagem without the need of fighting a war.

What stratagem? It is putting pressure on Taiwan economy by military threat that force Taiwan to spend more in weapons and scare away foreign investors and Taiwanese capital and talents while attracting Taiwan capital and talents with preferential policies.

To screw up the pressure, according to Reuters’ report titled “China says Taiwan tensions affecting some imports”, China greatly reduced import of cosmetics and food from Taiwan on the excuse of political tension that has affected cooperation on safety standards. The situation will not improve unless Taiwan “recognized the ‘1992 consensus’” i.e. one-China consensus.

As China is Taiwan’s major export market, China can further screw up pressure by reducing more import, which does not affect China and may give rise to great difficulties in Taiwan.

Now the US is going to help China in drying Taiwan’s financial resources by selling more weapons to Taiwan. (See my post “Trump administration crafting big new arms sales to Taiwan: sources” yesterday.)

Comment by Chan Kai Yee on Reuters’ report, full text of which can be viewed at http://www.reuters.com/article/us-china-parliament-taiwan-idUSKBN16L0G0

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3 Comments on “China to Heighten Economic Pressure on Taiwan”

  1. Simon says:

    Also Trump’s “America First” protectionist policy means Washington will not give preferential treatment to import from Taiwan without subjecting them to the same higher tax than home producers. Without China’s support Taiwan is dead in the water. Even S Korea is suffering huge economic meltdown by Chinese backlash over THAAD.

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  2. Steve says:

    Not enough, Taiwan still has lots of money in the piggy bank reserves. China need to tighten the bolts of poverty in Taiwan. Even if the DPP acknowledges the 1992 consensus is irrelevant. The damage to cross straits relations is now irreversible, the door to peaceful unification has closed. The DPP has created a cancerous tumour and its malignant. China need to fortify the political pressure against the DPP, so that the Taiwanese will wake up and revolt against this Separatist.

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