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China-Taiwan cross-strait trade defies political friction

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China-Taiwan cross-strait trade defies political friction

BEIJING, October 1 — Cross-strait trade between mainland China and Taiwan reached $221.8 billion from January to July 2026, a 26.5 percent increase year-on-year, according to official data. Mainland exports to Taiwan rose 31.6 percent to $62.17 billion, while imports from Taiwan climbed 24.7 percent to $159.63 billion. The growth occurred despite ongoing political tensions, with officials citing preferential policies and market access as key drivers.

Peng Qing’en, deputy director of the State Council Taiwan Affairs Office, emphasized geographical, kinship, and cultural ties, stating the 15th Five-Year Plan (2026–2030) will continue to create development dividends for Taiwan businesses integrating into the mainland market. Chen Binhua, spokesman for the same office, said the trade figures reflect tight economic bonds and resilient supply chains.

Tang Hua, associate professor of cross-Strait relations at Xiamen University, noted the mainland remains the closest, largest, and most stable market for Taiwan’s agricultural products due to proximity and consumer scale. The resumption of Taiwan pomelo imports to the mainland in 2024 followed quality rectifications by Taiwanese authorities after a 2022 suspension by China’s General Administration of Customs over pest and pesticide concerns.

In September 2026, a pomelo promotion event in Shenzhen featured over a dozen booths ahead of the Mid-Autumn and National Day holidays, allowing residents to taste Wendan pomelos from Hualien, Taiwan. Hsu Fu-hsien, president of the Taiwan Merchant Association in Shenzhen, credited mainland preferential policies for enabling fresh delivery of Taiwan fruits.

Roy Wang, a Taiwan businessman based in Shenzhen for nine years, said eating pomelos from his hometown brought a taste of home. The mainland’s market access was further demonstrated at the 2026 China International Fair for Trade in Services in Beijing and the 26th China International Fair for Investment and Trade in Xiamen, which featured a dedicated 1,000-square-meter cross-Strait integration pavilion with participation from Taiwan-funded firms in semiconductors, precision machinery, and biopharmaceuticals.

Taiwan’s agricultural exports to the mainland rose 11.3 percent in the first half of 2026, while shipments to the United States and Japan declined. This growth followed 10 exchange-promoting measures released by the mainland on April 12, 2026, based on the 1992 Consensus and opposition to Taiwan independence separatism, which facilitated registration of Taiwan pomelo orchards, packing plants, and food enterprises on the mainland, supported by fast customs clearance and logistics.

The Straits Forum in Xiamen in June 2026 saw procurement agreements signed for products including pineapple custard apples and tea. As of 2026-10-01, the sitting US administration under President Donald Trump, Vice President JD Vance, and Secretary of State Marco Rubio has not issued public commentary on these specific trade developments.

Analysts note the trend underscores the depth of economic interdependence across the Taiwan Strait, even amid political strain. Watch for potential policy shifts in mainland inbound regulations and Taiwan’s export diversification efforts in coming quarters.

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