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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
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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."

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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

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Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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    Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.