In recent years, cross-strait relations have become increasingly tense. On the export front, the latest statistics from Taiwan’s Ministry of Finance show that in July, Taiwan’s exports to mainland China and Hong Kong reached US$19.17 billion, accounting for approximately 25.5% of total monthly exports. While this marks an increase compared to the same period last year, it is a clear decline from past years when exports to China and Hong Kong routinely exceeded 30% of total exports.

Notably, since July, online rumors have circulated claiming that 'China has removed preferential treatment for Taiwan,' specifically stating that as of June 30, China canceled tariff-free benefits for 146 Taiwanese products listed under the ECFA Early Harvest List. In response, Taiwan’s Fact-Checking Center released an investigation report to clarify the misinformation.

What is ECFA? What products are included in the Early Harvest List?

At the end of June 2010, both sides of the Taiwan Strait signed the 'Cross-Strait Economic Cooperation Framework Agreement' (ECFA). In simple terms, ECFA serves as the overarching framework for cross-strait economic and trade cooperation, aiming to reduce tariffs and trade barriers on certain goods and expand economic exchanges. It officially came into effect on September 12 of the same year.

ECFA itself is not a free trade agreement that eliminates tariffs on all goods. Instead, it establishes a cooperative framework, with specific measures to be implemented later. The most critical component is the 'Early Harvest' program, which refers to the first batch of goods to receive reduced tariffs under ECFA. The so-called 'Early Harvest List' is the detailed catalog of these items.

On June 24, 2010, during ECFA negotiations in Taipei, then Vice Chairman and Secretary-General of the Straits Exchange Foundation, Kao Kong-lian (right), shook hands with Executive Vice Chairman of the Association for Relations Across the Taiwan Straits, Zheng Licheng (left) (file photo, AP).

Has China canceled tariff exemptions under the ECFA Early Harvest List?

The fact-checking report indicates that various versions of the online claims and videos assert that China has ended over a decade of tariff preferences for Taiwan, canceling duty-free treatment for 146 Taiwanese products under the ECFA Early Harvest List starting June 30, covering four major sectors: petrochemicals, textiles, machinery, and auto parts—claimed to be Taiwan’s main exports to China.

However, the fact-checking center confirmed that neither Taiwan’s Ministry of Finance nor China’s Taiwan Affairs Office (TAO) or official media have announced such a change. In reality, China began phasing out duty-free benefits for these 146 items in 2023 and 2024, not as abruptly as claimed on June 30.

What are Taiwan’s main exports to China?

Regarding the Early Harvest List, the report cites the Mainland Affairs Council (MAC) stating that China originally committed to 539 items on Taiwan’s Early Harvest List, with tariffs reduced to zero starting in 2013. However, by the end of that year, China announced the suspension of duty-free treatment for 12 petrochemical imports, citing Taiwan’s discriminatory and restrictive practices, with implementation beginning January 1, 2024. On May 31, 2024, China announced that another 134 items would also lose duty-free status, effective June 15 (totaling 146 items removed, reducing Taiwan’s Early Harvest List to 393 items).

As for the claim that petrochemicals, textiles, machinery, and auto parts are Taiwan’s primary exports to China, the report references statistics from Taiwan’s Ministry of Economic Affairs, which show that electronics dominate Taiwan’s exports to China. Integrated circuits and memory chips alone account for 50% of exports, followed by LED modules, solid-state non-volatile storage devices, and processors.

How effective has ECFA been? What do the MAC and TAO say?

The fact-checking center clarifies that the Early Harvest List does not represent all of Taiwan’s exports to China. Additionally, at the end of June, on the 16th anniversary of ECFA’s signing, the MAC issued a press release stating that exports under the Early Harvest List totaled US$13.1 billion, accounting for 13.1% of exports to China—the lowest level since ECFA took effect. It also noted a decline in overall exports to China, indicating structural changes in cross-strait economic and trade relations.

In response, China’s TAO cited data to counter this, claiming that cross-strait trade in 2025 exceeded US$300 billion, with an annual growth rate of 7.3%, demonstrating continued economic vitality and asserting that 'Taiwan’s economy cannot be decoupled from the mainland.' However, according to MAC statistics, the total cross-strait trade value in 2025 was US$191.78 billion, rising to US$263.6 billion when including Hong Kong.

The report attributes the data discrepancy to differences in statistical systems, rules of origin, exchange rates, and other factors between the two sides.

FACT BOX

  • Source: PR Times
  • Category: News