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EU to upgrade trade ties with Taiwan as China warns Brussels ‘not to gamble on this issue’
- EU revisits plans to upgrade relations with Taipei that were abandoned last November amid fear of damaging relations with Beijing
- Spokesman for Chinese mission to EU warned Brussels ‘not to gamble on this issue’
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Finbarr Berminghamin Brussels
The European Union will upgrade its trade and investment relations with Taiwan, as it looks to tap into Taipei’s “role as a hi-tech leader”, having earlier ditched the plan to avoid angering China.
In particular, Brussels is keen to attract Taiwanese investment in its semiconductor sector, and sees increased political engagement as a way to help that along.
A “modernised” trade and investment dialogue will take place on June 2, the bloc’s trade chief Valdis Dombrovskis told the European Parliament.
01:21
US and Taiwanese officials discuss chip supply and ‘economic coercion’
US and Taiwanese officials discuss chip supply and ‘economic coercion’
Previously held at the deputy director and vice-ministerial level, these online talks will now be led by the EU’s director for trade, Sabine Weyand, and the Taiwanese minister for economic affairs, Wang Mei-hua.
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The plans were first reported by the South China Morning Post in November, when they were axed at the last minute following concerns from European Commission President Ursula von der Leyen that they would damage relations with China.
But that relationship has deteriorated anyway, and the EU acknowledges that it requires Taiwanese support if it is to follow through on a €45 billion (US$47 billion) European Chips Act unveiled by von der Leyen in February.
Taiwan is a world leader in semiconductors, producing 90 per cent of the world’s most advanced chips.
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