(Bloomberg) -- China will remove its tariff exemptions on some agricultural products imported from Taiwan as Beijing ramps up pressure on the democracy.
The Chinese Customs Tariff Commission will scrap its tariff exemption on 34 Taiwanese agricultural imports, including fruit, vegetables and fishery products, starting from Sept. 25, the Ministry of Finance in Beijing said in a statement on Wednesday.
The monetary impact of China’s move appears to be small. The Ministry of Agriculture in Taipei told local media that the archipelago shipped $7.36 million of affected products across the strait last year.
It also comes after a German warship sailed though the Taiwan Strait last week for the first time in 22 years, highlighting a growing willingness by US partners to defy President Xi Jinping and send vessels through one of the world’s busiest shipping lanes.
Days after the German warship’s voyage, the US — which backs Taiwan politically, militarily and economically — flew a Navy reconnaissance plane through the strait. China then sailed an aircraft carrier in waters northeast of Taiwan.
China claims Taiwan as its territory, to be brought under Beijing’s control by force if necessary. China’s military called the German vessel’s passage a “security risk” and said it sent “incorrect signals.”
Beijing’s decision to end the tariff exemptions adds to tensions with Taipei that have mounted since Lai Ching-te became Taiwan’s president in May.
China deeply distrusts Lai, viewing him as trying to formalize Taiwan’s independence, and its move regarding the agricultural and fishery products could be a warning aimed at his government to stop activities it sees as provocative.
Shortly after Lai took office, Beijing halted tariff breaks on 134 items listed under a trade deal with Taiwan. Taiwanese official said that move would impact 10.2% of the $95.7 billion worth of Taiwan’s cross-strait shipments last year.
Taiwan’s Mainland Affairs Council said in a statement late Wednesday that “China uses economic measures to pressure and intimidate Taiwan, which is not helpful in maintaining cross-strait relations.”
It also urged Beijing to resolve any disputes through pragmatic communication.
(Updates with more details and context)
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