Trade deal between the UK and Taiwan is heralded as a first in promoting bilateral trade between Europe and Taiwan.
Following the announcement of an agreement on bilateral trade discussions, the Chinese government charged that the UK was using trade cooperation as “as an excuse” to strengthen its ties with Taiwan.
An enhanced trade partnership (ETP) was signed on Wednesday by John Dennis, a British envoy based in Taipei, and Kelly Hsieh, Taiwan’s representative to the UK. Future discussions on trade-related topics including digital trade and investment, as well as green energy, are made possible by this agreement. Taiwan’s third-largest European trading partner overall and its third-biggest in Europe is the UK.
Dennis, the de facto ambassador of the UK, stated, “The arrangement will take our trade relations to new heights and represents the culmination of our longstanding work to develop new forms of engagement.”
The two sides expressed their hope that the agreement would serve as an example for other nations in a statement, stating that it was the first time a framework had been formed to promote bilateral trade between Taiwan and Europe.
Beijing disagreed with the deal because it sees Taiwan as a province of China and takes issue with any foreign policy that can be interpreted as acknowledging Taiwan’s independence.
Only thirteen nations have formal diplomatic ties with the government of Taiwan; however, several more have established trade offices and other informal economic links.
Beijing has consistently vehemently opposed any formal communication between nations that maintain diplomatic ties with China and “China’s Taiwan region,” according to a statement sent by the Chinese embassy in London.
“We call on the UK to respect the one-China principle and to cease using trade cooperation as a pretext for establishing formal relations with Taiwan or holding official exchanges.”
In light of China’s economic difficulties, geopolitical unrest, and government interference in key industries, numerous international governments are investigating ways to decrease their dependency on trade with China. Instead of fully decoupling, the US has portrayed its initiatives as “derisking,” whereas many European governments are promoting economic diversification.
Taiwan is attempting to become a member of the Trans-Pacific Partnership (CPTPP), of which the United Kingdom is currently the newest member. Enhancing economic ties with the UK is “crucial” for Taiwan’s aspirations, according to John Deng, a minister and chief trade negotiator for Taiwan.
Taiwan’s membership is opposed by Beijing, which is also pushing for Taiwan’s inclusion in the CPTPP. China’s leader, Xi Jinping, reportedly brought up China’s proposal at a meeting with Australian Prime Minister Anthony Albanese this week, marking the latter’s first visit to the country in seven years. However, Xi Jinping did not specifically request Australia’s support.
All current countries must vote in favor of China’s participation in the CPTPP, and some, most notably Japan, are against it.
David Spencer, the chief executive of the Taiwan Policy Center, which advocates for stronger ties between Taiwan and the UK and supports Taiwan’s CPTPP bid, said, “We applaud the UK government for taking this step. In light of greater threats from the PRC, it is vital that the democratic world builds closer and deeper ties with Taiwan and trade deals like this are the perfect way to do exactly that.”
“Global semiconductor supply chains can be made more secure, net zero can be increased globally, and safe digital technological advancements can be improved with a closer trading partnership between the UK and Taiwan.” Everyone’s financial well-being depends on diversifying outside of the PRC in these and other sectors.