Skip to content

Escalating Tension Over Taiwan Strait Airspace May Hinder Travel for Lunar New Year

Jan. 31, 2018
4 min read
Night scenes of the Taipei city, Taiwan
Escalating Tension Over Taiwan Strait Airspace May Hinder Travel for Lunar New Year
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don’t cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.

The Lunar New Year is the biggest holiday season for many Asian cultures. Tradition dictates that children return to their parents' homes, wives be allowed to visit their families of origin, and extended relatives gather together to ring in the new year across generations.

But this year, an escalating dispute over airspace in the Taiwan Strait may leave many thousands of Taiwanese expats based in China unable to make the important pilgrimage home.

On January 19, Taiwan's Civil Aeronautics Administration announced that it was denying Chinese carriers Xiamen Air and China Eastern Airlines permission to fly new flight routes over the Taiwan Strait because the routes were not previously discussed with the Taiwan government. The action was perceived by Taiwan as yet another sign of disrespect for the tenuous relationship between the two countries, as the new passenger routes skirt the borders of Taiwanese military and civilian airspace. Plus, this is a particularly sensitive time with Chinese military drills increasingly encroaching on the boundaries of Taiwan's airspace.

In response on January 30, Xiamen Air and China Eastern Airlines announced the cancellation of 176 flights that had been added to meet holiday demand, potentially stranding Taiwanese expats in China who hope to return home to their families.

The same day that the flights were canceled, Taiwan's armed forces conducted their annual live-fire military drills. Attack aircraft, helicopters, F-16s and other aircraft and tanks worked together in a simulation on Taiwan's east coast, showcasing the nation's readiness in the event of an invasion.

Taiwan's presidential office also released a statement regarding the airspace dispute on the same day, stating that the safety of everyone flying across the strait was "a responsibility that cannot be abandoned." Taiwan's statement referenced a consensus between the two countries in 2015, urging the Chinese government to focus on their joint commitment to "regional stability, cross-strait relations and flight safety."

Daily Newsletter
Reward your inbox with the TPG Daily newsletter
Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG’s experts

Despite increasing tensions, China and Taiwan's politics and business are closely interwoven. The People's Republic of China, founded in Beijing in 1949, has never forcibly acted upon its claim of Taiwan as a territory. Taiwan, in contrast, considers itself an distinct and independent government — a claim that also doesn't sit well with the government in Beijing.

In the 1980s, Taiwanese businesses began branching out into China for manufacturing and other work opportunities under the shadow of political tension. However, cross-strait travel had to detour through non-direct destinations such as Hong Kong, Macau and Okinawa before China and Taiwan negotiated direct commercial flights in 2008.Today, close to one million Taiwanese expats live and work in China in a complicated economic balance. Many are employed by Taiwan-based companies with large-scale operations in various Chinese cities, especially Shenzhen, just north of Hong Kong. Many of these companies employ a large number of Chinese workers as well, such as Taiwanese electronics giant Foxconn, with more than 1 million Chinese employees across 12 factories in nine cities.

"This move has harmed the shared rights and interests of our company and customers," said China Eastern Airlines, which canceled 106 round-trip tickets for nearly 40,000 passengers.

Xiamen Air said the move had "seriously hurt the feelings of people on both sides of the strait," as reported by the New York Times.

Both airlines stand to face significant financial losses from the decision.

Featured image by Getty Images

TPG featured card

Best for businesses with high spending
TPG Editor‘s Rating
4.5 / 5
Go to review

Rewards

2 - 10X miles

Intro offer

LIMITED-TIME OFFER: Earn up to 400K bonus miles

Annual Fee

$395

Recommended Credit

740-850
Excellent

Why We Chose It

The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)

Pros

  • The Capital One Venture X business card has a very lucrative welcome offer.
  • In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
  • Business owners are also able to add employee cards for free.

Cons

  • The card requires significant spending to earn the welcome offer.
  • Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
  • LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
  • Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
  • Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
  • With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
  • Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
  • Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
  • Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
  • Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
  • Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
  • This is a pay-in-full card, so your balance is due in full every month
Apply for Capital One Venture X Business
at Capital One's secure site
Terms & restrictions apply. See rates & fees
Best for businesses with high spending
TPG Editor‘s Rating
4.5 / 5
Go to review

Rewards Rate

2X miles2 miles per dollar on every purchase
5X miles5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel
10X miles10 miles per dollar on hotels and rental cars booked through Capital One Business Travel
  • Intro Offer

    LIMITED-TIME OFFER: Earn up to 400K bonus miles
  • Annual Fee

    $395
  • Recommended Credit

    740-850
    Excellent

Why We Chose It

The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)

Pros

  • The Capital One Venture X business card has a very lucrative welcome offer.
  • In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
  • Business owners are also able to add employee cards for free.

Cons

  • The card requires significant spending to earn the welcome offer.
  • Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
  • LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
  • Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
  • Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
  • With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
  • Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
  • Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
  • Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
  • Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
  • Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
  • This is a pay-in-full card, so your balance is due in full every month