The National Development Council has downplayed the impact of China's ending
tariff cuts on 12 petrochemical imports from Taiwan, saying the ECFA
preferential tariff accounts for less than 4% of Taiwan's overall exports.

China made the announcement earlier today, saying it's in response to
Taiwan's "discriminatory prohibitions and restrictions" which Taiwan imposed
on Chinese exports in violation of the 2010 Economic Cooperation Framework
Agreement.

NDC chairman Gong Ming-xin says the 12 Taiwanese products take just a small
part of Taiwan's total exports, so China's decision won't affect our
3-percent economic growth next year.

The Ministry of Economic Affairs, meanwhile, points out that China has been
developing its own petrochemical industry since 2015, and some markets are
already saturated.

The MOEA says consequently, Taiwanese businesses had already taken proactive
measures to diversify their markets.

The value of petrochemical exports to mainland China was approximately $2
billion U.S. dollars last year.

The MOEA also criticizes China's measure as not complying with with
international economic and trade norms, saying it's a form of economic
coercion tactic.

It has promised to support businesses in four major aspects, including
low-carbon subsidies, smart manufacturing, and market diversification and
expansion, as well as more subsidies.

(JL)