Some fruits and fish imports suspended also exports of natural sand

China has suspended some trade with Taiwan in apparent retribution for a visit by the US House Speaker, Nancy Pelosi to the self-governing island.

CNN Business is reporting that the trade restrictions include the suspension of some fruits and fish imports from Taiwan, and exports of natural sand to the island. China is Taiwan’s largest trading partner with bilateral trade worth US$273 billion last year, accounting for 33 per cent of its total trade with the rest of the world.

Experts are concerned about the impact escalating tensions between Taipei and Beijing may have on Taiwan’s semiconductor industry. The self-governed democratic island of 24 million people is a global leader in the supply of semiconductor chips,which are a vital component for virtually all modern electronics, from cars to refrigerators to mobile phones.

Suspension confirmed by China’s Taiwan Affairs Office

China’s Taiwan Affairs Office confirmed in a statement today (August 4) that it would suspend imports of grapefruit, lemons, oranges and other citrus fruits, as well as chilled white striped hairtail and frozen horse mackerel from Taiwan.

In a separate statement, Chinese customs officials said the import suspension of citrus fruit is a result of “pest control” and “excessive pesticide residues,” and cited “COVID prevention” for the suspension on seafood imports.

In addition, China’s Commerce Ministry has suspended exports of natural sand to Taiwan, a key component for the production of semiconductor chips.

“Nancy Pelosi’s visit to Taiwan has triggered the expected ire of Chinese authorities,” said analysts from ING Group today.

Pelosi’s visit is the first by an sitting US House Speaker in 25 years, and comes after Beijing issued stern warnings that it would take counter-measures in retaliation. In response, Taiwan officials said China’s sand export suspensionwould have a “limited” effect and that Chinese sand accounts for “less than one percent” of its total demand.

China’s retaliatory actions

China has previously banned imports of some Taiwanese products amid escalating tensions. Last year, China banned imports of pineapples from the island followed by some types of apples later in the year citing “pest control”.

Earlier this year, it also banned Taiwanese grouper fish, a high-value seafood product from Taiwan, citing detection of some banned drugs.

During a press briefing yesterday, a spokesperson for China’s Ministry of Foreign Affairs said that “the US and Taiwan separatist forces must take the responsibility and pay the price for the mistakes they made”.

Her comments came after she was asked whether the latest export suspensions are intended to punish Taiwan for Pelosi’s visit, which she declined to answer directly, saying “please ask relevant department in charge”.