The Taiwan Fed is denying giving up the event voluntarily.
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That article is interesting. This passage elucidates things:
"Speaking at a press event on Thursday, CTSU Secretary-General Eddy Wu (吳奕德) confirmed the ISU statement that it did propose another Asian country should host the event "as an option" to the ISU in May.
However, that proposal was only made because the CTSU had been informed by members of the ISU that some would boycott the tournament if Taiwan hosted.
Wu did not explain why some members would boycott Taiwan, saying only that there has been "invisible pressure in the international arena." He also would not speculate whether Chinese pressure was the main reason countries threatened to boycott Taiwan as the host.
If there were insufficient participating countries, the results may not have been recognized by the ISU, Wu explained."
I think the "members" (or member) who threatened to boycott is pretty obvious. Basically, CTSU took the high road by agreeing that ISU start looking for other countries to host to guarantee that participating athletes could have their results recognized at this event. So Taiwan plays nice for the good of the athletes and loses an event, while some other country bullies the ISU and gets its way.