Taiwan, US could start talks on closer economic ties ‘in weeks’

The new talks “will explore concrete ways to deepen the U.S.-Taiwan trade and investment relationship,” the officials said, emphasizing the institutionalization of cooperation in chain resilience. procurement, labor, environment and sustainable development.

An official announcement will come after “coordination and consultations”, according to a senior official.

CNN is reaching out to the White House for comment.

A senior official also told CNN on Friday that Taiwan may send a delegation to attend the SelectUSA summit in Maryland in June. The summit facilitates foreign business investment in the United States.

Taiwan has been excluded from the Indo-Pacific Economic Framework (IPEF), a regional economic plan unveiled by President Joe Biden during his visit to Tokyo earlier this week. The setting is Biden’s attempt to engage a region increasingly under China’s influence.

The IPEF is not a trade agreement in the traditional sense. It includes a “pillar” related to trade, but also integrates other areas such as making supply chains more resilient, promoting clean energy and fighting corruption.

The nations participating in IPEF are Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand and Vietnam, alongside the United States.

“The future of the 21st century economy is going to be largely written in the Indo-Pacific, our region,” Biden said as he launched the plan.

Taiwan had expressed its desire to be part of the framework but was left out of the launch — a move some analysts thought was likely based on some members’ desire not to inflame tensions with China.

“Many countries have expressed a desire to minimize the US-China confrontation within IPEF, and that is the main reason why Taiwan was not invited to attend the launch ceremony,” Roy said. Lee, deputy executive director of Taiwan’s Chung-hua Institution. Economic research.

“Some countries pointed out that the inclusion of Taiwan would boost [the IPEF’s] effectiveness, but there was also concern that China viewed these countries as choosing a side,” he added.

Taiwan plays a crucial role in global supply chains as it is a world leader in the supply of semiconductor chips.
One Taiwanese company in particular – Taiwan Semiconductor Manufacturing Company (TSMC) – is the world’s largest chip contract manufacturer and plays a vital role in powering products engineered by technology companies such as Apple (AAPL), Qualcomm (COMQ) and Nvidia (NVDA).

The penalty Nearly $500 billion, TSMC is one of Asia’s most valuable companies and accounts for 90% of the world’s super advanced chips.

Growing tensions between the United States and China

The self-governing island of 24 million people has faced increasing military aggression from China in recent months. Communist authorities in Beijing claimed Asia’s 7th largest economy as part of its territory, although it never ruled over it.

Taiwan has become one of the central issues between China and the United States, and Biden’s Asia tour this month focused on Beijing growing influence in the region.

On Monday, Biden said the United States would intervene militarily if China attempted to take Taiwan by force – in what appeared to be a strong warning to Beijing not to emulate Russia’s invasion of Ukraine.

Russia's invasion of Ukraine is causing foreign investors to flee Taiwan.  here's why
The White House quickly played down the comments, saying they did not reflect a change in US policy. It’s the third time in recent months — including during a CNN town hall in October — that Biden has said the United States will protect Taiwan from Chinese attack, only to have the White House backtrack on the remarks.

Beijing responded angrily, calling on Washington to be “cautious in its words and deeds on the Taiwan issue”.

The United States does not maintain formal diplomatic relations with the authorities in Taipei, but it has continued to maintain close unofficial ties by facilitating economic exchanges and supplying Taiwan with defensive weapons to defend against invasion.

Last Friday, Taiwan’s top trade negotiator John Deng held a bilateral meeting with U.S. Trade Representative Katherine Tai in Thailand, where they agreed to explore ways to deepen trade relations and strengthen each other. meet again in the coming weeks to discuss the way forward, according to a reading. from the United States Trade Representative Office.

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