Beijing is stating rather bluntly that resetting ties with Taiwan has an economic cost attached.
In a tit-for-tat move, Beijing’s China Daily newspaper has quoted a senior state planning official as saying the country will soon slap a penalty on a U.S. auto manufacturer for its monopolistic behaviour.
The development comes in the wake of U.S. President-elect Donald Trump questioning the long-standing U.S. policy of acknowledging that Taiwan is part of “one China”.
China has maintained that self-ruled Taiwan, is its wayward province and has not renounced the usage of force to take it back.
China’s daily has quoted Zhang Handong, director of the National Development and Reform Commission as saying investigators have found that a U.S. company had instructed its distributors to fix vehicle prices way back in 2014.
Zhand has however dismissed speculations of China’s tit-for-tat policy saying, no one should “read anything improper” into the timing or target of the penalty.
The article strategically did not provide any further details.
China is the world’s largest car market and is thus crucial for global car manufacturing companies, including General Motors and Ford Motor Co.
“We are unaware of the issue,” said Mark Truby, Ford’s chief spokesman for its Asia-Pacific operations.
GM did not immediately respond to requests for comment.
Although Zhang has tried to portray neutrality into the issue, the China Daily’s editorial has loudly stated that the U.S. must recognise the importance of close economic cooperation between the two countries and it could be wain if it were to try “to gain an upper hand in what is essentially a win-win relationship”.
“History proves that what it good for Sino-U.S. relations is good for their economies”. Significantly, the Chinese Daily went on to note that Chinese customers purchased more than a third of General Motor’s 9.96 million sold worldwide.
“For the American economy to be great again… the U.S. needs to cement its economic relations with China, rather than destroy them.”