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Here is why China may not impose stronger trade restrictions on Taiwan

The value of trade targeted by China's sanctions contributes a tiny amount of less than 1% to Taiwan's gross domestic product, according to economists

Photo: Bloomberg
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China and Hong Kong account for around 40% of Taiwan’s total exports, though Taipei has made efforts to reduce its economic dependence on China in recent years. (Photo: Bloomberg)

Sarah Zheng | Bloomberg
China’s military drills after US House Speaker Nancy Pelosi visited Taiwan sparked alarm around the region, although its trade retaliation barely made a dent -- mostly because Beijing doesn’t want to hurt itself.
 
The value of trade targeted by China’s sanctions contributes a tiny amount of less than 1% to Taiwan’s gross domestic product, according to economists, taking the sting out of China’s announcements. Beijing could ramp up actions by targeting more food products, wood or minerals. But levies on any big-ticket items that would cause real damage to Taipei -- such as semiconductors -- are