Taiwanese pomelo, known for its deliciousness and softness, is very popular on both sides of the Taiwan Strait, especially during the Mid-Autumn Festival, an important holiday in Chinese culture that falls on September 10, 2020. now.
August and September are usually the busiest months for Li and other pomelo farmers in Madou town, as they prepare for the harvest, but this year they are facing an unexpected challenge. : China’s import ban.
Li, who normally sends about 60% of his pomelo production to mainland China, said he was “very surprised” when he first learned of the export ban, describing the situation as “the most difficult” since when the family business started in the early 2000s..
“I don’t see the ban in effect so far, we were caught off guard,” Li said. “I can’t do anything, it’s some kind of political problem between Taiwan and China … we simply want to grow good fruits and sell them at a good price.”
‘By surprise’
During the annual pomelo harvest, Li is often busy by phone completing deals with buyers in China and other parts of Asia as his 40 contractors select the best fruits to box and sent abroad.
But this year, news of China’s sudden import ban threw his plans into disarray.
“When I heard about the ban, I immediately called my business partner in China to check if that was the case,” he said. “I was taken aback, because we signed the contract and set the price, and even the shipping date was confirmed.”
“But now it’s all in vain, so we have to try to find a way to sell them to the domestic market,” he added.
Li is not the only Taiwanese affected by China’s economic retaliation. According to statistics from the Agriculture Council of Taiwan, last year, Taiwan produced more than 82,000 tons of pomelo, of which about 7% – or about 5,000 tons – was exported to mainland China.
Along with China’s import bans on other pomelos and two fish products, the panel estimated that Taiwan’s exports worth NT$620 million ($20 million) would be affected. enjoy.
Sun Tzu-min, general manager of the Madou Farmers Association, said there are between 2,000 and 3,000 pomelo farmers in the town, adding that while most pomelos are sold in the country, the ban will likely affect market prices and reduce farmers’ incomes.
“It is difficult for the farmers,” she said. “A sudden ban could bring everything to a halt. Grapefruit trees can live for decades, and their fruit gets sweeter as the trees get older, so farmers can’t get rid of them.”
“When all the fruit stays on the island, the market price will go down… farmers lose money when they can’t export,” she said.
Fruit and politics
Since last year, China has targeted a number of Taiwanese agricultural products as it ramps up military, diplomatic and economic pressure on Taiwan – a democratic, self-governing island with 24 million people are located just off the southeast coast of China.
Before the most recent ban, China suspended imports of all Taiwanese pineapples, sugar apples, wax apples and grouper, each time citing pesticides or toxic chemicals.
Experts say Beijing’s moves are a politically motivated attempt to pressure Taiwan to follow the line.
He added: “Mainland China is trying to influence the views of farmers and low-income Taiwanese towards the ruling party, as their products are banned from being sold to China.
After last year’s pineapple ban, Taiwan’s Foreign Minister Joseph Wu labeled the product “freedom pineapple”, while shoppers across Asia – including the late Japanese leader Shinzo Abe – rushed to buy them as an act of political solidarity.
Chiao said that while the latest ban will have some short-term impact on Taiwanese farmers, it is unlikely to create any significant economic impact as agricultural exports account for only one billion dollars. small percentage of Taiwan’s total trade.
According to Roy Lee, deputy executive director at Taiwan’s Chung-hua Economic Research Institute, more than half of Taiwan’s exports to China are semiconductors, while agricultural products make up just under up to 1% of the total value.
“I think the weaponization of sanctions on agricultural products and food creates a larger symbolic impact than the actual economic impact,” Lee said.
Chiao agrees that “psychology is a bigger factor” behind the import bans. However, he said that economic coercion would likely create greater anti-China sentiment among the Taiwanese public.
“This time, China announced these economic sanctions in the context of large-scale military exercises,” he said. “If you think that the military exercises are the main character, there must be other supporting roles. Therefore, the Commerce Department also issued economic sanctions to support the threat of (China) Country).”
China’s economic sanctions against Taiwan
Economist Lee said while China is Taiwan’s largest trading partner, Beijing has so far not targeted Taiwan’s more valuable industries as it could disrupt their own economy.
He added: “The expansion of economic sanctions to include semiconductors will have a larger, negative impact on China’s economic growth than the countries China is trying to achieve. political or diplomatic goals.
However, he warned that as cross-strait tensions worsen, Beijing could intensify its retaliation by targeting Taiwanese companies operating in mainland China.
Last year, Taiwan’s Far East group, which also operates in mainland China, was fined millions of US dollars by Chinese regulators for a series of violations. Chinese state media openly criticized the company for providing financial support to Taiwan’s ruling Democratic Progressive Party, prompting the group’s chairman Douglas Hsu to declare that he opposes Taiwan’s independence.
“I think we will see more and more Taiwanese investments in China being investigated, or prompted to make remarks or statements that favor China’s position on Taiwan,” he said. Lee added.
But for farmers in the town of Madou, the impact of China’s economic coercion has been felt.
To mitigate the financial impact, the Agricultural Council of Taiwan has announced a plan to boost citrus fruit sales across the island with advertising and distribution campaigns, as well as subsidies to farmers.
Sun, the head of the farmers’ union, said it is also turning grapefruit into other products – such as essential oils, jams and masks – to attract new customers in Taiwan.
But farmer Li is not optimistic. As pomelos began to pile up in his warehouse, he worried that he could have to lay off 30% of his contractors next year if the ban is not lifted.
“Honestly, it doesn’t matter who visits Taiwan,” he said. “US-China tensions should be resolved between the two countries. I don’t think Taiwanese farmers should be the ones to suffer.”
