China has announced a new set of economic incentives for Taiwan, including the resumption of direct flights across the Taiwan Strait and improved market access for Taiwanese food products. The measures, unveiled by Beijing’s Taiwan Affairs Office, also propose sharing energy and water supplies with the Taiwanese-governed islands of Matsu and Kinmen, and exploring the construction of a bridge linking them to the mainland.
The announcement follows a six-day visit to Beijing by Cheng Li-wun, chairwoman of Taiwan’s main opposition party, the Kuomintang (KMT), who met Chinese President Xi Jinping. The KMT has historically favoured closer ties with mainland China, a stance that has drawn criticism from Taiwan’s ruling Democratic Progressive Party (DPP).
Taiwan’s government has expressed scepticism over Beijing’s latest offer. The Mainland Affairs Council (MAC) warned that similar measures had been rolled out and suspended in the past without institutional safeguards for Taiwan’s industries, farmers, and public interests. A presidential spokesperson stressed that any cross-strait exchanges should not be subject to political preconditions or used for partisan political gain.
Taiwan has been a de facto self-governing territory since 1949, when nationalist forces retreated there after losing the Chinese civil war. Beijing continues to regard the island as an integral part of its territory under the One China policy, a position supported by the majority of UN member states.
The timing of the economic incentives—coming shortly after high-level KMT-Beijing talks—has heightened political sensitivities in Taipei, with concerns that the measures may be aimed at influencing Taiwan’s domestic politics ahead of future elections.
