US-Taiwan relations: New trade deal to be signed amid China tensions

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Supporters of free Taiwan gather to greet President Tsai Ing-wen during her first visit to the US in March.Image source, Getty Images

Image caption,

Supporters of free Taiwan during the first visit to the US by President Tsai Ing-wen

By Annabelle Liang

Business reporter

US and Taiwan are set to sign a new trade agreement on Thursday amid heightened tensions with China.

It will mark the first deal under a framework for talks between Washington and Taipei, called the US-Taiwan Initiative on 21st Century Trade.

The announcement comes ahead of a high-level global security summit in Singapore this weekend.

In recent years, the relationship between the US and China has become increasingly strained.

Taiwan's Office of Trade Negotiations said the agreement will be signed in Washington on Thursday morning, US time.

Deputy United States Trade Representative Sarah Bianchi is expected to be at the event.

It will be the first agreement to be signed under the US-Taiwan Initiative on 21st Century Trade framework, which started last year.

The framework aims to strengthen economic ties between Washington and Taipei and open Taiwan to more US exports.

Beijing has denounced the trade talks, as it does with all forms of high-level engagement between the US and Taiwan, which it claims as its own territory.

The deal is expected to be signed ahead of the Shangri-La Dialogue annual defence summit, which begins on Friday.

US Defense Secretary Lloyd Austin and his Chinese counterpart Li Shangfu are expected to travel to Singapore for the event.

Earlier this week, the Pentagon said Beijing had declined Washington's invitation for the two officials to meet.

General Austin told reporters after meeting Japanese Defence Minister Yasukazu Hamada in Tokyo on Thursday that China's decision was "unfortunate".

Gen Austin added that it was important for countries with "significant capabilities" to talk to each other so they can "manage crises and prevent things from spiralling out of control unnecessarily".

Relations between Taiwan and China deteriorated sharply following a visit to the island by the then-US House Speaker, Nancy Pelosi in August.

Beijing condemned Ms Pelosi's visit as "extremely dangerous".

China sees the self-ruled island as a part of its territory and insists it should be unified with the mainland, by force if necessary.

But Taiwan sees itself as distinct from the Chinese mainland, with its own constitution and democratically-elected leaders.

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