US, Taiwan Reaffirm Economic Ties

Taiwan and the United States are stepping up economic ties. The countries have agreed to a five-year deal establishing the Economic Prosperity Dialogue that will be held annually.

The Chinese Communist Party views Taiwan as its own territory—and it has criticized increasing ties between the United States and the island. It responded to the meeting by flying fighter jets across the Taiwan Strait.

Taiwan and the United States don’t have a free trade agreement. But in August, Taiwan eased restrictions on imports of American beef and pork. This lowered the trade barrier and could set the stage for further trade negotiations.

Last year, U.S. trade with Taiwan was estimated at nearly $104 billion.

The United States has also started selling more advanced weaponry to Taiwan under the Trump administration. This includes a $2.4 billion sale of Harpoon missile systems announced in October.