China Hits Back at Taiwan Decoupling Claims with $185B Trade Data

China’s Taiwan Affairs Office (TAO) on Wednesday forcefully rebutted claims by Taiwan’s top administrative official that the island is reducing its economic dependence on the mainland, releasing trade data showing cross-strait commerce reached $185 billion in the first half of 2026 — a figure the office said proves that mutually beneficial exchanges “cannot be stopped by anyone.”

According to Xinhua News Agency, TAO Spokesperson Zhang Han made the remarks in response to comments by Taiwan Regional Administrative Agency head Cho Jung-tai, who claimed at an “Asian Taiwan Chambers of Commerce” event that Taiwan had shifted away from reliance on the “single China market” toward Europe, the Americas, and Southeast Asian nations.

Trade Data Tells a Different Story

Zhang presented detailed trade figures that painted a starkly different picture. In the first half of 2026, mainland China imported $133.1 billion worth of goods from Taiwan — a year-on-year increase of 22.5% — while mainland exports to Taiwan reached $31.9 billion, up 32.9% year-on-year. The combined $185 billion in total trade underscored what Zhang described as the deeply complementary nature of the two economies.

“This fully demonstrates that the industrial structures on both sides of the strait are complementary, with broad prospects for cooperation,” Zhang said, as reported by Xinhua. “Strengthening cross-strait economic cooperation and deepening integrated development serves the common interests of people and enterprises on both sides, and is the result of both economic laws and market principles.”

Sharp Rhetoric Against DPP Policies

The spokesperson did not stop at the numbers. In remarks also covered by Phoenix TV, Zhang launched a blistering verbal attack on the Democratic Progressive Party (DPP) administration, accusing it of “shamelessly selling out Taiwan” and “sycophantically currying favor” with external forces.

“Cross-strait exchanges and cooperation, mutual benefit and win-win outcomes cannot be stopped by anyone,” Zhang said. “The DPP authorities, in seeking ‘independence through reliance on foreign forces,’ are shamelessly selling out Taiwan, sycophantically currying favor, and pandering to external forces to hollow out Taiwan’s advantageous industries — these are unequivocally actions that harm and endanger Taiwan.”

The strong language reflects Beijing’s growing frustration with the DPP’s efforts under President Lai Ching-te to diversify Taiwan’s trade relationships through initiatives such as the “New Southbound Policy,” which aims to strengthen economic ties with Southeast Asia, India, and Pacific nations as a counterweight to mainland China’s economic influence.

Economic Reality vs. Political Ambition

Despite the DPP’s stated goal of reducing economic vulnerability to China, the latest trade data suggests that structural interdependence remains deeply entrenched. Taiwan’s semiconductor and electronics industries — the backbone of its export economy — continue to be heavily integrated with mainland supply chains, making rapid decoupling economically challenging.

A separate analysis cited in the research noted that cross-strait trade grew 8.2% year-on-year in the first half of 2026, with the mainland remaining Taiwan’s largest trading partner and export market by a significant margin. Cross-strait small and medium enterprise cooperation cases also increased 12% year-on-year, with many Taiwanese SMEs continuing to invest in the mainland.

Broader Context

The TAO’s statement on Wednesday was one of several issued on the same day addressing Taiwan-related matters. The office also condemned Taiwan’s Mainland Affairs Council for warning citizens against traveling to the mainland, criticized the DPP for echoing the Philippines in criticizing Beijing, and confirmed that Chinese consular officials in Irkutsk had provided assistance to injured Taiwanese nationals.

These coordinated statements signal Beijing’s intensified campaign to assert its position on cross-strait affairs across multiple fronts — economic, diplomatic, and consular — as the DPP administration approaches the midpoint of President Lai’s term.

What to Watch

The trade data released by the TAO raises important questions about the feasibility of the DPP’s economic diversification strategy. While political tensions between Beijing and Taipei show no signs of abating, the deepening economic integration reflected in the H1 2026 figures suggests that market forces may be pulling in the opposite direction from political ambitions. How the DPP navigates this tension — and whether Taiwanese businesses will continue to expand mainland ties despite political headwinds — will be a key dynamic to watch in the months ahead.