The US and Taiwan will begin formal talks on a trade and investment agreement this fall

WASHINGTON—The United States announced Wednesday that it and Taiwan will begin talks this fall on a bilateral trade and investment initiative to deepen ties on a range of issues, including technology and agriculture.

The new deal will outline ways to respond to “distorting practices of state-owned enterprises and non-market policies and practices,” the U.S. Trade Representative’s office said, in a clear reference to China’s policies, without naming the country.

Details of the bilateral initiative follow tensions over Taiwan between the United States and China following the initial announcement of the plan in June. Visit to Swarajya Island By the Speaker of the House

Nancy Pelosi

August and A Subsequent delegation Last weekend Sen. Led by Ed Markey (D., Mass.).

A new delegation of US lawmakers visited Taiwan and met with President Tsai Ing-wen during a previously unannounced visit, prompting China to resume military exercises near the island. Photo: Office of the President of Taiwan/AFP/Getty Images

The congressional visits, designed to show support for Taiwan and democracy, have prompted strong responses from Beijing. America and China For their very difficult relationship over the years.

The agreement 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,” said US Deputy Trade Representative Sarah Bianchi.

“We plan to pursue an ambitious schedule to achieve high-quality commitments and meaningful outcomes across eleven trade areas in the negotiating commission, which will help build a fairer, more prosperous and resilient economy for the 21st century.”

Chinese Foreign Ministry spokesman Wang Wenbin condemned the talks during a press conference in Beijing on Thursday.

“The United States should not negotiate agreements with China’s Taiwan region with a sovereign or official character, or send the wrong signal to separatist forces in the name of ‘Taiwan independence’ in the name of trade and economic ties,” Mr. Wang said. “China will resolutely defend its sovereignty and territorial integrity. We urge America not to miscalculate this.

House Speaker Nancy Pelosi, in a bright blue mask, with Taiwanese President Tsai Ing-wen, in a gray jacket, in Taipei, Taiwan, this month.


Photo:

Chien Chih-Hung/Taiwan Presidential Office/Getty Images

The US has insisted there is no change in its policy towards China and Taiwan China’s ambassador blamed Washington this week Escalating tensions, including visits to the island by Ms. Pelosi and other lawmakers.

Bilateral negotiations will be held under the auspices of the American Institute in Taiwan, the US Embassy in Taipei, and the Taipei Economic and Cultural Representative Office in the United States, Taiwan’s Representative Office in the United States.

Although the United States has strong ties to Taiwan, it has not had formal diplomatic relations with the island since 1979, when the United States established formal relations with China, which views Taiwan as part of its territory.

The list of areas to be covered by the new deal, known as the US-Taiwan Initiative on 21st Century Trade, includes trade facilitation, regulatory procedures, anti-corruption standards and promoting trade between small and medium-sized enterprises.

The two sides will discuss removing discriminatory trade barriers and imposing stricter labor and environmental standards, as well as digital and agricultural trade issues.

Separately, Commerce Secretary Gina Raimondo said it would begin in June A Conversation with Taiwan To address technology trade and investment along supply chains and technology export controls.

The U.S. effort to strengthen trade ties with Taiwan comes as it seeks to expand economic engagement in the Asia-Pacific region to counter China’s influence.

During President Biden’s visit to the region in May, negotiations between the United States and a dozen countries to deepen ties in trade, supply chain resilience, environmental policy and the digital economy formally began negotiations to create a new platform called the Indo-Pacific Economic Framework. As in other areas.

Taiwan expressed interest in joining a broader agreement called IPEF, but was not included.

Economic officials from IPEF countries are expected to meet in the United States in September.

The negotiating mandate for the bilateral initiative released on Wednesday outlines the topics to be discussed under 11 areas.

Discussions on state-owned enterprises address the “significant distortions” in trade and investment caused by the practices of state-owned and state-controlled enterprises and government-appointed monopolies. While competing against these companies internationally.

In non-market policies and practices, both sides will seek to enhance cooperation to counter harmful practices.

“The U.S. and Taiwan are market economies and understand the harm that can be caused by trading partners who deploy non-market policies and practices that threaten livelihoods and harm workers and businesses”.

Write to Yuka Hayashi at yuka.hayashi@wsj.com

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