China avoids imposing harsh sanctions against Taiwan as both economies are interdependent

Aug 14, 2022

Beijing [China], August 14 : China's economic sanctions against Taipei over US House Speaker Nancy Pelosi's visit to Taiwan were not as harsh as it is portrayed, as both economies are interdependent, as per a report.
The fortunes of China and Taiwan are built on co-dependence, and the ties that have developed over the past generation to bind key industries like electronics cannot be severed without damaging both countries.
Beijing barred imports of various Taiwanese food products, as well as ended its exports of sand. This imbalance highlighted the uncomfortable truth facing Chinese leader Xi Jinping as he turns up the heat in the Taiwan Strait.
Both countries' economies stand to lose if the situation continues to escalate, as per the Atlantic Council.
Taiwan, which is powered by its world-leading semiconductor industry, is experiencing solid growth, while China's economy is facing badly affected due to its real-estate crisis and Xi's "zero-COVID" policies.
The US Congressional delegation landed in Taiwan earlier in August.
According to Atlantic Council, if China had been serious about imposing more economic punishment on Taiwan for hosting Pelosi, it could have targeted its economic ties with Taipei more directly.
China could have disrupted the export of Taiwanese electrical products to the mainland, which last year totalled more than 50 per cent of the country's USD 189 billion of exports to China and Hong Kong. It could have also seriously impeded the flow of goods through the Taiwan Strait, one of the most important waterways in the world for container vessels.
However, such actions also would amount to Beijing shooting itself in the foot. China's export machine would be crippled without Taiwan-made electronic components.
China which claims Taiwan as its territory and opposes any engagement by Taiwanese officials with foreign governments, announced multiple military exercises around the island, issued a series of harsh statements and even summoned the US ambassador to Beijing, Nicholas Burns, to protest against Pelosi's visit to Taiwan.
Notably, agricultural products and foodstuffs came to only 0.23 per cent of China's imports from Taiwan in the first six months of 2022, and most of the one hundred-plus Taiwanese companies directly affected by the sanctions focus on small market niches.
Resulting Beijing's propagandists resorted to claiming that the ban on food exports like citrus and fish products was aimed at punishing supporters of Taiwan's ruling Democratic Progressive Party--even though some rural producers are have traditionally been supporters of the opposition Kuomintang.
China used the military drills to influence the international community's freedom of navigation in the waters and airspace of the Taiwan Strait and to prepare for an invasion.
After Pelosi paid a visit to Taiwan against China's wishes, Beijing started holding large-scale military exercises while threatening to take over the self-ruled island. After more than a week-long training near Taiwan, China on Wednesday announced that it has concluded its military drills, simulating an attack on the island.
Two days after China halted its large-scale military drills near the self-ruled island, as many as 24 Chinese aircraft and six vessels were detected by the Taiwan Defence Ministry near its territory on Friday.
"Six PLAN vessels and 24 PLA aircraft around our surrounding region were detected today (August 12, 2022) until 1700(GMT+8). #ROCArmedForces have monitored the situation and responded to these activities with aircraft in CAP, naval vessels, and land-based missile systems," Taiwan Defence Ministry said in tweet.