Taiwan talks trade with U.S. & Britain as China tensions loom over Biden-Xi meeting

Taiwan is pushing to secure trade deals with the U.S. and Britain despite China’s opposition to efforts to strengthen economic ties between Taiwan and other countries. The discussions come amid heightened tensions between the U.S. and China that are expected to come into focus when President Joe Biden and Chinese President Xi Jinping meet Monday on the sidelines of the G20 summit in Bali, Indonesia.

China opposes efforts by Taiwan, a self-governing democracy that the ruling Chinese Communist Party regards as a breakaway province, to further its trade and diplomatic ties with other countries. Both the U.S. and Britain lack formal diplomatic ties with Taiwan but have robust unofficial relationships with the Taiwanese government.

The Wall Street Journal reported that a spokesman for the Chinese Embassy accused the U.S. of "wrongdoing" by pursuing the trade deal and added, "China is always against any country negotiating economic and trade agreements of sovereign implication or official nature with China’s Taiwan region."

Officials from the U.S. and Taiwan held two days of talks in New York as part of the U.S.-Taiwan Initiative on 21st-Century Trade, which is a bilateral companion to the Indo-Pacific Economic Framework for Prosperity the Biden administration announced over the summer with a dozen countries in the region.

A press release from the Office of the U.S. Trade Representative stated that the discussions were "productive" and additional meetings are expected 

"in the near future." The talks encompass efforts to promote transparency regulatory practices, grow small- and medium-sized businesses, reduce corruption, and take other measures to increase trade in areas ranging from agriculture to the digital economy

British Trade Minister Greg Hands traveled to Taipei to meet with Taiwanese officials, including President Tsai Ing-wen, on trade topics including technological cooperation, green energy, and supply chain resiliency. Hands said in a press release, "Boosting trade with this vital partner is part of the UK’s post-Brexit tilt towards the Indo-Pacific and closer collaboration will help us future-proof our economy in the decades to come."

Tsai said that Taiwan is willing to "make the best allocations" to help with the global restructuring of semiconductor supply chains as her country is home to one of the world’s largest computer chipmakers, the Taiwan Semiconductor Manufacturing Company (TSMC).

Reuters reported that a spokesman from the Chinese Foreign Ministry urged Britain to "stop any form of official exchange with Taiwan and stop sending wrong signals to separatist forces for Taiwan independence."

China has ramped up tensions over Taiwan in recent months. Chinese military forces conducted large-scale live fire exercises in waters around Taiwan following a visit by House Speaker Nancy Pelosi’s to the island in August. Chinese leader Xi Jinping was granted an unprecedented third term at the Communist Party Congress in October, when he issued a warning that,

 "No one should underestimate the Chinese people’s staunch determination, firm will, and strong ability to defend national sovereignty and territorial integrity."

Xi later added, "We persist in striving for the prospect of peaceful reunification with the greatest sincerity. However, there is no commitment to renounce the use of force and the option to take all necessary measures is retained."