US Signals Resumption of Trade Agreement Talks with Taiwan... China Emphasizes 'One China' Policy and Protests

TIFA Talks Suspended During Trump Era Likely to Resume
China Strongly Protests "US Sends Wrong Signal to Taiwan"

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The U.S. government is expected to face strong opposition from China as it signals the resumption of the Trade and Investment Framework Agreement (TIFA) with Taiwan, which was suspended during the previous Donald Trump administration. When the Taiwanese government hinted at resuming TIFA in August last year, the U.S. was focused on trade negotiations with China and rejected the idea. However, with the inauguration of the Joe Biden administration, the U.S. is reportedly taking active steps to restart TIFA. This shift is interpreted as a result of Taiwan's increasing strategic value as a key hub in the international semiconductor supply chain.

On the 7th (local time), U.S. Secretary of State Antony Blinken appeared before the House Foreign Affairs Committee hearing and, when asked about a bilateral trade agreement with Taiwan, stated, "We are in discussions about a trade agreement with Taiwan and expect to reach some framework agreement soon," adding, "The U.S. Trade Representative (USTR) will have more details, but these conversations need to begin." This is interpreted as a sign of resuming TIFA negotiations, which were discussed during the Barack Obama administration but suspended under the previous Trump administration.

The Taipei Economic and Cultural Representative Office in Washington also issued a statement on the same day, saying, "We are working with the USTR to negotiate a trade agreement," and "We expect this to bring progress to the trade relationship between the two countries." Previously, in August last year, Taiwanese President Tsai Ing-wen officially requested the U.S. government to resume TIFA negotiations, emphasizing the need for a Free Trade Agreement (FTA) between the U.S. and Taiwan. However, at that time, the USTR did not respond to the request. The Trump administration was known to have suspended TIFA negotiations, focusing instead on trade talks with China rather than Taiwan.

Boni Glaser, an Asia expert at the German Marshall Fund (GMF), a U.S. public policy think tank, said, "Secretary Blinken's remarks increase the likelihood of concluding TIFA with Taiwan, which has not been held since the Obama administration," adding, "Senior Biden administration officials have been encouraging the USTR to hold TIFA talks, and Taiwan is also eager to hold them soon."

However, strong opposition from China is also anticipated. Glaser explained, "China will view these talks as part of Biden's strategy to strengthen relations with Taiwan and see it as a strategy by the U.S. to weaken its commitment to the 'One China' policy."

The Chinese government is opposing any contact between the U.S. and Taiwan, claiming it violates the One China principle. Following news that a U.S. congressional delegation visited Taiwan to provide vaccine support, the Chinese Ministry of Foreign Affairs issued a statement warning, "The U.S. must immediately cease any exchanges with Taiwan, handle Taiwan issues prudently, and not send wrong signals to separatist forces advocating Taiwan independence."

This content was produced with the assistance of AI translation services.