China's coercion will only hasten Taiwan's efforts to diversify trade links

Concerns mount that overreliance on China market will be a strategic liability

- Yip Wai Yee

In the middle of a legislative hearing on May 31, Taiwanese lawmaker Chuang Jui-hsiung of the ruling Democratic Progressive Party (DPP) recited the lyrics of a song by home-grown pop star Rainie Yang.

"The wolf is coming. Who is the next victim?" he asked during an exchange with Taiwanese Premier Cho Jung-tai, quoting from the 2007 song Wolf Coming.

Mr Chuang had used the lines to demonstrate the vulnerability of Taiwanese businesses to China's economic coercive tools, which are often swift and highly unpredictable for the industries they would target.

"The new (Taiwan) government had hoped for peaceful cross-strait exchanges after taking office, but the first move by the other side (of the Taiwan Strait) is to cut tariff concessions," he said in an emotional speech. He was referring to the administration of President Lai Ching-te, who was inaugurated on May 20.

On May 31, Beijing announced that it would, starting on June 15, reinstate tariffs on 134 items it imports from Taiwan under the Economic Cooperation Framework Agreement (ECFA), a historic trade pact amounting to a free trade agreement which was signed between Taipei and Beijing in 2010.

The ECFA favours Taiwan economically, with tariff concessions covering more than 500 Taiwanese products, double the 267 Chinese goods covered in the pact. The Chinese had hoped that it would foster closer economic ties between the two sides of the Taiwan Strait, which could make it harder for self-ruled Taiwan to seek de jure independence.

But since the independence-leaning DPP was elected into office in 2016, Beijing has weaponised economics in different ways with the aim of sowing public distrust in the ruling party's governance and ability to handle cross-strait relations.

For instance, Beijing has banned imports of Taiwanese agricultural products such as mangoes and pineapples, while also sharply reducing the number of Chinese tourists to the island.