No China trade 'backdoor' via Taiwan to U.S.: Deputy minister

Taipei, April 10 (CNA) Taiwan's deputy foreign minister said Thursday that the country is committed to working with the United States to prevent "origin laundering," in response to concerns over free trade zone plans that some lawmakers fear could "open a backdoor" for China to attempt to evade U.S. tariffs.

Deputy Foreign Affairs Minister Chen Ming-chi (陳明祺) made the remarks at a session of the Legislative Yuan Foreign and National Defense Committee, where top officials reported on Taiwan's trade strategy following U.S. President Donald Trump's announcement last week of tariffs on America's global trading partners.

Attending ministries included Taiwan's Ministry of Foreign Affairs, the Ministry of Economic Affairs, the Mainland Affairs Council, the Ministry of Finance, the National Development Council, the Executive Yuan Office of Trade Negotiations, and the Central Bank of the Republic of China (Taiwan).

The deputy foreign minister was responding to concerns over the potential establishment of an "Offshore Free Trade Demonstration Zone," a project proposed by Taiwan's largest opposition party, the Kuomintang (KMT), under amendments to the Offshore Islands Development Act.

The amendments, which were introduced by KMT lawmaker Chen Yu-jen (陳玉珍), would allow people, companies, goods and services from China to enter the zone under regulations that are yet to be determined.

The proposal's explanation said the change, which aims to liberalize trade between China and Taiwan's outlying Kinmen and Matsu Islands, aimed to facilitate cross-border commerce and "appropriately loosen relevant rules."

During the interpellation session, lawmaker Puma Shen (沈伯洋) from the ruling Democratic Progressive Party (DPP) warned that the proposed amendments would "open a backdoor" that China could try to use to evade the 125 percent tariffs it faces on America-bound exports.

DPP lawmaker Lin Chu-yin (林楚茵) also said the proposal contradicts efforts to build supply chains decoupled from China.

She cited the 2019 Foreign Trade Act, which enhances origin verification efforts and penalties in an attempt to prevent Taiwan from becoming a transit hub for origin laundering in the "U.S.-China trade war."

Deputy Foreign Affairs Minister Chen reiterated that the United States is highly focused on the issue and that Taiwan would take "comprehensive precautions."