In China’s already tense relations with the USA and Taiwan, there is a risk of new resentment. The governments in Washington and Taipei announced on Thursday that they intend to start formal trade talks as part of a new initiative. The first round should take place in “early fall,” said the office of US Trade Representative Katherine Tai. Both sides wanted to deepen trade and investment relations.
The communist leadership in Beijing regards Taiwan only as part of the People’s Republic and rejects all forms of official contacts from other countries to Taipei. With a view to the preliminary trade talks between Taiwan and the United States, the Chinese Foreign Ministry had also made clear its opposition to any agreements that were of an official nature and would have an impact on China’s sovereignty, it said.
Tensions with China had recently escalated following a visit by US House Speaker Nancy Pelosi to Taiwan. It was the highest-ranking visit from the United States in a quarter of a century. Pelosi is number three in America after the President and Vice President. Shortly thereafter, another delegation from the US Congress traveled to Taipei. Beijing spoke of “provocations”.
In response, Beijing began large-scale maneuvers around the democratic island republic. A naval and air blockade, a possible conquest and other combat missions were practiced in China’s largest military show of force in decades. Beijing is threatening to take the island of 23 million by force, while Taiwan claims independence. The US, in turn, has committed itself to Taiwan’s defense capability.
Washington and Taipei had already presented the US-Taiwan initiative on trade in June. The negotiations are under the umbrella of the unofficial representations of both sides: The American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representation (Tecro) in Washington. “We plan to pursue an ambitious roadmap,” said the Office of Trade Representatives.
The respective trade priorities should be promoted on the basis of shared values and innovation and inclusive growth should be promoted. It should be about trade facilitation, regulatory issues, the fight against corruption and more trade between small and medium-sized companies and agricultural goods. Washington also mentioned the elimination of disadvantages, digital trade, environmental and labor standards and practices that distort competition.
Taiwan wants to strengthen its economic capabilities and attract more investment from the United States and other countries. The way should also be paved to be able to join other trade pacts, as the Office for Trade Talks (OTN) in Taipei announced. The Asia-Pacific free trade agreement CPTPP was expressly mentioned here.
In response to Pelosi’s visit, China had also halted imports of hundreds of agricultural products from Taiwan, as well as mainland sand shipments vital to the island, to increase pressure on Taipei. “Through economic cooperation, Taiwan and the US can work together to resist China’s economic coercion,” Cabinet Spokesman Lo Ping-cheng said of the trade talks. (dpa)