Beijing ‘should be wary’ as US, Taiwan seek closer economic ties

As four days of trade talks wrap up, analysts say mainland China may need to choose between carrot and stick in response

‘US will pressure Taiwan’ not to work closely with Beijing and reducing reliance will be part of agreements, according to observer

Reading Time:2 minutes

Taiwanese and American officials held talks in Taipei under the new US-Taiwan Initiative on 21st Century Trade. Photo: Reuters

Published: 6:00am, 18 Jan 2023Updated: 12:43pm, 18 Jan 2023

Beijing should be cautious about growing economic ties between Taipei and Washington, and may need to choose between carrot and stick in response, according to mainland Chinese analysts.

The remarks come as Taiwanese and US officials wrapped up four days of trade talks in Taipei on Tuesday, being held under the new US-Taiwan Initiative on 21st-Century Trade.

Both sides have indicated that they may reach agreement on issues such as trade facilitation and promotion of good regulatory practices.

Taiwan’s top trade negotiator John Deng said Taipei was hoping for some positive results. Photo: Handout

Wang Jianmin, who specialises in Taiwan issues at Minnan Normal University in Fujian province, said the negotiations were an important part of efforts from both sides to reduce economic reliance on Beijing.

“The core of the initiative is to counter the mainland and establish a US-Taiwan economic cooperation system, and to include Taiwan in the US supply and industrial systems,” Wang said.

Taiwan’s top trade negotiator John Deng told reporters at the start of the talks on Saturday that the island was hopeful of achieving positive results in four key areas – trade facilitation, the promotion of small and medium-sized enterprises, good regulatory practices, and anti-corruption measures.

According to Wang, Beijing should be wary of closer economic links between Taiwan and the United States.

“The US will pressure Taiwan not to work [closely] with the mainland … and it is obvious that excluding the mainland and reducing [the island’s] reliance on the mainland will be part of the agreements,” he said.