China's reliance on Taiwan would make trade retaliation costly

China could also restrict more of its own exports to Taiwan, as it did with natural sand. - AFP

BEIJING (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.