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Taiwan
ChinaDiplomacy

China-US relations: Washington, Taipei launch joint trade initiative

  • A Taiwanese representative said the new forum will allow Taipei to hold various trade talks, possibly leading to “multiple trade pacts”, with the United States
  • The initiative seeks to counter ‘non-market practices’ of state-owned and state-controlled enterprises

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The US-Taiwan Initiative on 21st Century Trade was launched by officials from Washington and Taipei. Photo: Reuters
Robert Delaneyin WashingtonandLawrence Chungin Taipei

US and Taiwanese officials have launched a bilateral economic and trade initiative that seeks to counter the “non-market practices of state-owned and state-controlled enterprises” in a move that appears aimed at Beijing, although the announcement made no mention of mainland China.

United States deputy trade representative Sarah Bianchi and Taiwanese minister without portfolio John Deng Chen-chung met virtually on Tuesday in an event organised by the American Institute in Taiwan (AIT), Washington’s de facto embassy on the self-ruled island, and the Taipei Economic and Cultural Representative Office in Washington (Tecro).

Deng said late on Wednesday that the new forum would allow Taipei to hold various trade talks, possibly leading to “multiple trade pacts”, with the United States.

Taiwanese minister without portfolio John Deng Chen-chung. Photo: Handout
Taiwanese minister without portfolio John Deng Chen-chung. Photo: Handout
Using language that Washington has deployed to describe other pacts seen as efforts to counter Beijing – including the Indo-Pacific Economic Framework (IPEF) – the US Trade Representative’s Office said the US-Taiwan Initiative on 21st-Century Trade was “intended to develop concrete ways to deepen the economic and trade relationship, advance mutual trade priorities based on shared values”.

“The United States and Taiwan recognise the significant distortions that can occur to international trade and investment from non-market practices of state-owned and state-controlled enterprises as well as government designated monopolies,” the USTR said.

“The two sides seek to develop provisions to create a level playing field for workers and businesses when competing against these entities in the international marketplace,” it added, without elaborating.

The announcement comes just over a week since US President Joe Biden announced the formation of the IPEF, which 12 Asia-Pacific nations have joined, as the US challenges Beijing by aligning more closely with other countries on economic objectives and national defence.

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