Crazy, stop funding rebel that fights you is such a crazy idea! Nobody would be having this conversation anywhere else. Yet here we are.
I suspect some sort of corruption going on that led to this irrational policy.
That decision isn’t about making money or corruption, it was an attempt to avoid AR by promoting economic interdependence and cultural exchange to get past all the propaganda of Taiwan and the western MSM.
It is working to a degree based on the millions of Taiwanese that live and work in mainland China.
It also gives China a proxy vote as those in Taiwan who benefit from trade with China should vote against policies that will damage cross strait relations and thus their own economic well being.
It is proving to be insufficient to totally offset all the propaganda and the sheer stupidity of many on the island. But it was a project worth doing.
I personally see the revoking of favourable trading terms as a sign that AR is becoming inevitable, as it means that Beijing is giving up attempts to peacefully sway the people of Taiwan and is gearing up for AR.