China hits Taiwan with trade restrictions after Pelosi visit

CNN (08/03/2022)
  • China suspended imports of citrus fruits (lemons, oranges, etc) and some fish from Taiwan and exports of natural sand in retaliation for recently hosting US House Speaker Nancy Pelosi.
  • Despite lingering tensions over Taiwan’s self-governace, China remains Taiwan’s biggest trade partner accounting for 37% ($273B) of Taiwan’s total trade.
  • China declined admitting if the trade suspension was retaliatory.
  • While the trade suspension will have little impact, global investors fear escalating tensions disrupting Taiwan’s semiconductor industry which manufactures 90% of the world’s super-advanced chips.