According to the Hong Kong China News Agency, Zhang Zhijun, president of the Mainland and the Association for the Sea of China, said recently that he "don't want the ECFA achievements to be lost again." Cai Zhengxiu, associate professor of the Department of Mass Communication at Jingyi University, told China Review News Agency that this statement does not mean that ECFA will not stop. Although the mainland's policies to benefit Taiwan remain unchanged, ECFA is still the biggest weapon for mainland China to restrict economic restrictions on Taiwan. In particular, the Tsai administration continues to "pro-US and anti-China" route, and TSMC sets up factories in the United States to declare Taiwan's position in the US-China science and technology war. The mainland threatens to retaliate against the United States and will not be ruthless in analyzing and judging economic sanctions on Taiwan. ECFA is the best operating leverage.
In response to the possibility of ECFA cessation, Tsai Zhengxiu, who was an associate researcher of the Mainland Affairs Council and a special researcher of the Cross-Strait Exchange Vision Foundation, believes that since TSMC announced the establishment of a factory in the United States, the probability of ECFA being cancelled has increased.
Cai Zhengxiu analyzed that TSMC, the world's leading wafer foundry, set up a high-end wafer factory in the United States, which means that Taiwan is in the competition for US and China's technology. Taiwan’s statement of “alliance between the United States and China” has caused mainland China to lose resources in the technological struggle. Cai Zhengxiu said that it is expected that mainland China will use retaliation measures, and major American manufacturers such as Apple, Qualcomm, and Boeing may be included in the list.
From this trend, the mainland is likely to impose economic sanctions on Taiwan. Cai Zhengxiu believes that in the past, the mainland was dependent on TSMC's wafer supply, and the economy and trade between the two sides did not break up. Once the two sides lost their cooperative relationship, the mainland's economic suppression measures against Taiwan would emerge one by one, and ECFA is one of the operable tools.
Tsai Zhengxiu pointed out that although the mainland's measures to benefit Taiwan are still being released and there are even signs of deepening, which seems optimistic in the operation of ECFA, in fact, the terms to benefit Taiwan are still different from ECFA. Because the mainland does not necessarily need to maintain ECFA to win over the centripetal force of the Taiwanese people, but stopping ECFA will definitely hit the Tsai administration's foreign trade performance, and the damage is so great that it can be said to be the best weapon.
Taiwan has advantages in the information industry, especially Tsai Zhengxiu said that if Taiwan forms an alliance with the United States to compete with mainland China to take over the attempts of mainland China to dominate global information standards, especially 5G communication standards, Taiwan will become a stumbling block for mainland China to develop the technology field. Mainland China will inevitably take countermeasures, and may take a heavy move on Taiwan's economic contraction.
Tsai Zhengxiu said that the mainland's economic sanctions against Taiwan will be more effective than launching a war. When cross-strait economic and trade exchanges are suspended, Taiwan will immediately lose a trade surplus of nearly US$90 billion, which will inevitably hit Taiwan's foreign trade output value. If the trade surplus is lost, only the trade deficit will remain. Taiwan's foreign trade output value will show a loss deficit, and the Tsai administration will be unable to resist.
Looking at the above situation, Tsai Zhengxiu believes that ECFA is a bargaining chip for mainland economic and trade means against Taiwan. Although the mainland has never clearly stated whether ECFA will stop, as the two sides of the Taiwan Strait gradually drift away, and the Tsai administration continues to move closer to the United States, the mainland cannot sit idly by. The means of retaliation against Taiwan will not be light or heavy, which corresponds to the possibility of ECFA renewal, and cannot be overly optimistic.