Weaponization of Trade Barrier Investigations: Economic Coercion in China-Taiwan Relations

Drawing on China’s recent trade barrier investigation (TBI) against Taiwan, this article explores the transformations of economic coercion in international trade and their implications for the global trading system. On this basis, the article analyses the potential role of the World Trade Organization (WTO) and its judiciary vis-à-vis economic coercion. It contends that, as trade measures have evolved into tools for pursuing elevated political goals, the formerly distinct dichotomy between economic and political objectives has been further eroded. This transformation makes it increasingly challenging to ward off the ‘weaponization’ of trade measures. This article posits that the adjudication of economic coercion through conventional trade jurisprudence may create centrifugal effects for the WTO. In conclusion, this article calls for a jurisprudential approach capable of identifying coercive intent, thereby upholding the principles of free trade and state sovereignty. © 2024 Kluwer Law International BV, The Netherlands.