US, Taiwan Agree on Bilateral Trade Talks as Washington-Beijing Tensions Persist

The US and China remain at odds over Taiwan, which is seen by Beijing as an essential part of Chinese territory. Washington-Beijing tensions escalated following what China described as a “provocative” visit by House Speaker Nancy Pelosi to Taiwan earlier this month.

Washington and Taipei have “reached a consensus on the negotiating mandate” for bilateral trade initiative to bolster economic ties, according to the Office of the US Trade Representative (USTR).

In a statement on Wednesday, the USTR said that the first round of talks pertaining to the US-Taiwan Initiative on 21st-Century Trade is expected to take place early this autumn.

The negotiations “will deepen our trade and investment relationship, advance mutual trade priorities based on shared values, and promote innovation and inclusive economic growth for our workers and businesses,” the statement pointed out.

Deputy United States Trade Representative Sarah Bianchi for her part told reporters that USTR plans to pursue “an ambitious schedule for achieving high-standard commitments and meaningful outcomes covering the eleven trade areas in the negotiating mandate that will help build a fairer, more prosperous and resilient 21st-century economy.”

Taiwan’s Office of Trade Negotiations, in turn, voiced hope that Taipei's promotion of agricultural trade and plan to help small and medium-sized enterprises enter US markets will add to the strengthening the island’s economy.

The Office added that Taipei is also seeking to boost international investor confidence in Taiwan, and help the island “attract funds and technologies from the US and the world”.

According to the office, “Both sides have shown a high degree of ambition and look forward to achieving concrete results as soon as possible and signing a trade agreement.”

The US-Taiwan Initiative on 21st-Century Trade was unveiled in June, a few weeks after the Biden administration launched the so-called Indo-Pacific Economic Framework to counter China’s growing regional clout. The deal did not feature Taipei despite the fact that more than 50 senators called on President Joe Biden to include Taiwan.

Wednesday’s statements come amid Washington-Beijing tensions, which escalated after US House Speaker Nancy Pelosi’s trip to Taiwan in early August and a subsequent visit to the island by a delegation of US Democratic lawmakers. China slammed Pelosi’s trip as provocative, arguing that it violates Chinese sovereignty and launching large-scale drills in waters near the island as part of retaliatory measures.

The same tone was struck by Beijing regarding the US lawmakers’ visit to Taiwan, which the Chinese Defense Ministry said “sends the wrong signal to separatist forces advocating Taiwan's independence”, and “completely exposes the face of the United States as the destroyer of peace and stability in the Taiwan Strait."

Taiwan deems itself autonomous, while Beijing perceives the island is an integral part of China. Washington сontinues to bolster relations with Taiwan, which Beijing perceives as an integral part of China, in particular by delivering weapons and maintaining bilateral relations, which Beijing sees as a violation of China’s integrity.