China voiced strong opposition on Friday to a freshly signed trade agreement between the United States and Taiwan. The deal aims to reduce tariffs on Taiwanese products and encourage more investment from the island into the US.
Beijing's Firm Stance
Ministry spokesman Guo Jiakun made China's position clear. "China consistently and resolutely opposes any agreement signed between countries with which it has diplomatic relations and the Taiwan region of China," he stated. The Asian giant further pressed Washington to stick to the one-China principle. China views Taiwan as an inseparable part of its territory.
Details of the US-Taiwan Agreement
The United States and Taiwan finalized this trade pact on Thursday, local time. It lowers tariffs on Taiwanese goods. In return, Taiwan promises $250 billion in new investments for the US technology sector.
This move fits into former US President Donald Trump's broader trade strategy. That strategy included deals with the European Union and Japan. It also featured a one-year trade truce with China meant to stabilize relations with the world's second-largest economy.
Tariff Reductions and Investment Plans
Under the new agreement, tariffs on Taiwanese products will fall from 20% to 15%. This brings them in line with rates applied to other Asia-Pacific trading partners like Japan and South Korea.
The US Department of Commerce hailed the pact. They called it "a historic trade deal that will drive a massive reshoring of America's semiconductor sector." The deal establishes an "economic partnership" to develop world-class industrial parks within the United States.
Taiwan's government confirmed the agreement would strengthen the "Taiwan model" in the US. It helps expand the island's technology competitiveness while deepening strategic cooperation between the two nations.
Taiwanese companies will specifically invest $250 billion in key sectors. These include semiconductors, artificial intelligence, and energy.
Additional Provisions and Beijing's Criticism
The deal also exempts certain imports from tariffs. This includes generic pharmaceuticals and aircraft components. Taiwanese semiconductor firms investing in the US will receive favourable tariff treatments.
Beijing had already criticized the arrangement before its official announcement. Chinese officials labeled it "an economic plunder" by the US on Taiwan.
