New Bloom (Taipei) — China announced a series of new import bans on Taiwanese products late last week, primarily seafood and beverages, in what appears to be the mainland’s latest effort at applying economic pressure.

The seafood bans were announced on December 8, with the squid ban receiving the most attention. This could result in a loss of a NT$3.7 billion (US$120 million) market for squid, with over 75,000 tons of these mollusks sold to China last year. Overall, more than a hundred Taiwanese companies are affected.

Other fisheries products blocked by the Chinese authorities included fourfinger threadfin, Pacific saury, and skipjack tuna.

Two days later, it became apparent that beer and liquors, as well as other beverages, had also been banned by China.

The most prominent of these beverages may be Taiwan Beer and Kinmen Kaoliang, two of Taiwan’s most recognizable alcohol products, which fall under the purview of the state-owned Taiwan Tobacco and Liquor Corporation and Kinmen Kaoliang Liquor. Other companies affected include Win Shan International, Taihu Brewing (best known for craft beer), Legend Brewery, and King Car Food Industrial Co. (best known for Kavalan Whiskey). Collectively, this may lead to a loss of around NT$1 billion (US$33 million).

More than a third of all Taiwanese beverages registered for export to China were impacted.

Beijing’s General Administration of Customs explained that the bans were imposed primarily on the basis of insufficient documentation. In some cases the supposedly deficient paperwork related to manufacturing licenses and in other cases application documents.

Taiwan’s Food and Drug Administration called on the Chinese government to provide further clarification, but so far has not received an answer.

For its part, Beijing claims to be merely enforcing new regulations which were effectuated at the beginning of this year.

Taiwanese companies complain that, in any case, their registrations were still supposed to be valid until 2026 or 2027, and that they have been responding to followup requests from the Chinese government. Overall, they say, it has become more difficult to export to China in recent years.

The Taiwanese government suggested that it may take the matter to the World Trade Organization (WTO). At the same time, it is possible that China might use the WTO as an avenue for further retaliatory measures against Taiwan. There would be a risks to such a strategy.

Some companies are calling on the Taiwan government to assist them in pivoting away from mainland China and toward new markets abroad. Specifically, it is thought that increased exports to Southeast Asia, North America, and Europe might be possible.

In response to such calls, the Ministry of Economic Affairs stated that it is willing to help out with advertising and training, as well as other measures.

Meanwhile, some Pan-Blue politicians, such as former Taipei Mayor Ko Wen-je, have criticized the Chinese government for its actions, suggesting that it will contribute to negative views of China in Taiwan.

Other Pan-Blue politicians, such as Nationalist Party (KMT) Chairman Eric Chu and former Taiwan President Ma Ying-jeou, have sought to place the blame on the Tsai Ing-wen administration for the overall deterioration of cross-Strait relations leading up to the bans.

Jessica Chen, a KMT lawmaker from the Kinmen Islands, stated that she intends to negotiate directly with China over the issue.

It is not entirely clear what Beijing’s specific objectives may be in imposing such bans on Taiwanese products, but a recurring theme has been the targeting of products with high symbolic value, such as Taiwanese pineapple or iconic snacks as Guai Guai. It is possible that China hopes to pressure Taiwanese companies, particularly those involved in fisheries and agriculture, hoping that this might induce them to throw their political support behind the more China-friendly KMT.

But it is also possible that China’s measures targeting Taiwanese companies will simply result in the mainland being regarded as an increasingly risky market where companies may be suddenly targeted on political grounds. This could even lead to a decoupling of the Taiwanese and Chinese economies. If so, this would paradoxically remove one of the key levers by which China seeks to influence Taiwan.

This article was originally published in New Bloom. Edits for style.

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