China-Taiwan Trade Pact Stirs More Protests

Tens of thousands of demonstrators have been on the streets of Taipei to protest again against a trade deal between China and Taiwan agreed late last week that will cut export tariffs and ease cross-Strait investment restrictions. The agreement is in line with Taiwan President Ma Ying-jeou’s policy of pursuing closer ties with China and comes after several rounds of talks started last year.

Objectors say it will bind Taiwan and China too closely economically creating a relationship that would be like that between China and pre-reunification Hong Kong. The opposition Democratic Progressive Party wants a referendum held on the deal, formally known as the Economic Cooperation Framework Agreement.

Taiwan gets more out the agreement as it stands than China. Chinese tariffs on more than 500 Taiwanese products, including car parts, petrochemicals and fruit, will be cut immediately and abolished within three years, roughly double the number of Chinese products that will get similar treatment from Taiwan. But the test for Beijing’s motives would be whether it will now let Taiwan pursue free-trade agreements with other countries.

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Filed under China-Taiwan, Economy, Politics & Society

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