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US-Taiwan Trade Pact: China Warning

The US-Taiwan trade deal signed on Thursday deepens economic relations and triggers a warning from Beijing



Image Courtesy: CNN


On Thursday, the United States and Taiwan entered into a trade deal called the U.S.-Taiwan Initiative on 21st Century Trade, aiming to enhance their economic ties. This move, however, has drawn a warning from Beijing. The agreement focuses on facilitating trade by simplifying customs procedures, improving regulatory processes, and implementing anti-corruption measures between the U.S. and Taiwan. It is worth noting that the two nations do not have official diplomatic relations, but maintain unofficial ties through the American Institute in Taiwan, acting as a de facto embassy. The initial agreement under this new initiative was signed by representatives from the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States. Beijing strongly opposes any suggestion of diplomatic relations between Taiwan and other governments. Despite this opposition, Taiwan aims to continue progressing towards a comprehensive free trade agreement with the United States to safeguard its economic security.


The Taiwanese government has characterized the recent agreement with the United States as the most extensive trade deal since 1979. However, China cautioned the U.S. against entering into any agreement with Taiwan that could be interpreted as asserting sovereignty or carrying official significance. China's foreign ministry spokeswoman, Mao Ning, emphasized that the U.S. should refrain from inadvertently encouraging pro-independence sentiments in Taiwan through trade-related actions.


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