US-Taiwan Trade Deal Sparks Warning from Beijing

The US-Taiwan trade deal is significant for both countries, as it aims to deepen economic relations between them. The US-Taiwan Initiative on 21st Century Trade is a comprehensive agreement that looks to streamline customs checks, improve regulatory procedures, and establish anti-corruption measures between the US and Taiwan. This agreement is a milestone for Taiwan’s economic security, as it is the most comprehensive trade agreement signed with Washington since 1979.

Despite not having official diplomatic relations, the US and Taiwan maintain unofficial ties through the de facto US embassy on the island, the American Institute in Taiwan. The US has remained a key ally and arms supplier to Taiwan, even after switching diplomatic recognition from Taipei to Beijing in 1979. The US is also the island’s second-largest trade partner.

However, China has warned against any pact “with connotations of sovereignty or of an official nature with China’s Taiwan region,” as it considers the self-ruled island its own territory. Beijing has increased military drills in the seas around Taiwan and worked to cut off its official ties with countries around the world. In April, Beijing conducted three days of military exercises simulating a blockade of the island in response to a meeting between Taiwanese leader Tsai Ing-wen and Republican House speaker Kevin McCarthy.

The US-Taiwan trade deal is a significant milestone for Taiwan, as it signals a new beginning for the country. Taiwan plans to move towards a comprehensive free trade agreement with the US to ensure its economic security. Despite China’s warning, the US-Taiwan trade deal shows that the US is committed to strengthening its relationship with Taiwan and supporting its economic growth.

Source: https://www.theguardian.com/world/2023/jun/02/taiwan-hails-comprehensive-trade-deal-with-us-as-china-issues-warning