After Pelosi's visit, China suspended trade with Taiwan!
After Pelosi's visit, China suspended trade with Taiwan!
Updated on August 03, 2022 23:29 PM by admin
Imports and exports!
The US House Speaker Nancy Pelosi had a visit that china suspended some trade with Taiwan in apparent retribution. The suspension of fruits and fish imports from Taiwan and natural sand exports to the island.
Trading partner!
China is Taiwan’s largest trading partner. Last year, the bilateral trade worth was about $273 billion. According to the Taiwanese government, accounting for 33% of the island's total trade with the rest of the world. In the supply of semiconductor chips for the self-governed democratic island, 24 million people are a global leader.Add Block
Suspended imports!
On Wednesday, China’s Taiwan Affairs Office suspended imports of grapefruit, lemons, oranges, and citrus fruits that chilled white striped hairtail and frozen horses mackerel from Taiwan. Import suspension of citrus fruit results from pest control, excessive pesticide residues, and Covid prevention for suspension of sea foods.
Banned imports of Taiwan!
China banned imports of some Taiwanese products, including pineapple, followed by some types of apples. They also banned Taiwanese grouper fish, high-value seafood, and also detection of some banned drugs. After the Pelosi visit, the country's military launched a series of targeted military operations to counteract the situation.Add Block
Domestic tension!
The country's economy has slipped to the lowest growth over two years of Covid lockdowns and a slumping property market. The unemployment of the youth was at the highest record.Add Block
Global supply chain impact!
China-Taiwan is worried about their trade and analysts impacting the global supply chain and inflation. According to China, the Pelosi trip to Taiwan has an impact on supply chains and demand that keep the inflationary strong.
One of the world’s largest contract manufacturers of chips is Taiwan Semiconductor Manufacturing Company, which plays a vital role in powering products designed by tech companies like Qualcomm, Apple, and Nvidia. TSMC is Asia's most valuable company and accounts for 90% of the world's super-advanced chips.
Lasting impact!
The impact will depend on the duration and intensity though the very least, that promote supply disruptions for semiconductors by firms and policymakers. In the coming days, China will unveil further responses as per the approach of the 20th party Congress.