U.S. and Taiwan ink trade deal as China issues warning

Subject: International Relations

Section: International events

Concept:

US-Taiwan trade deal: In a latest development, the United States and Taiwan entered into a trade agreement amid the continued opposition by China, which claims the self-ruled island democracy as part of its territory.
After the signing of the deal, the two concerned governments claimed that the US-Taiwan Initiative on 21st-Century Trade will strengthen commercial relations by improving customs, investment and other regulations.
They have no formal diplomatic ties but maintain unofficial relations and have billions of dollars in annual trade.

Aim of the trade agreement

The agreement is intended to “strengthen and deepen the economic and trade relationship,” the Office of the US Trade Representative said in a statement. The deputy USTR, Sarah Bianchi, attended the signing.
The Chinese government accused Washington of violating agreements on Taiwan’s status and demanded the US government stop official contact with the island’s elected government.
Taiwan and China split in 1949 after a civil war. The island never has been part of the People’s Republic of China, but the mainland’s ruling Communist Party says it is obligated to unite with China, by force if necessary.

Tensions escalate between China and US

It is pertinent to mention here that tensions between China and the US have been escalating since House Speaker Nancy Pelosi paid a visit to Taiwan on August 2.
The relations between the two countries have hit a new low after her visit to the self-ruled democratic island despite continuous warnings from the People’s Republic of China (PRC).

About Taiwan

Taiwan is officially known as the Republic of China (ROC).
It is a state in East Asia with Neighbouring states include the People’s Republic of China (PRC) to the west, Japan to the north-east, and the Philippines to the south.
The East China Sea lies to its north, the Philippine Sea to its east, the Luzon Strait directly to its south and the South China Sea to its southwest.
The Taiwan Strait separates the island of Taiwan from mainland China. The strait is currently part of the South China Sea and connects to the East China Sea to the north.
Taipei is the capital.
Taiwan is no longer a member of the UN, having been replaced by the PRC in 1971. Taiwan is claimed by the PRC, which refuses diplomatic relations with countries that recognize the ROC.
Taiwan maintains official ties with 14 out of 193 UN member states and the Holy See.
The bilateral relations between India and Taiwan have improved since the 1990s despite both nations not maintaining official diplomatic relations.