China’s government has accused the UK of using trade cooperation “as an excuse” to enhance its ties with Taiwan, after the announcement of a bilateral trade talks agreement.
On Wednesday Taiwan’s representative to the UK, Kelly Hsieh, and his British counterpart based in Taipei, John Dennis, signed an enhanced trade partnership (ETP). The agreement paves the way for future talks on green energy, digital trade and investment, among other trade-based issues. The UK is Taiwan’s third-biggest trading partner in Europe and 21st largest overall.
“The arrangement will take our trade relations to new heights and represents the culmination of our longstanding work to develop new forms of engagement,” said Dennis, the UK’s de facto ambassador.
In a statement, the two parties said the agreement was the first time a framework had been established to foster bilateral trade between Taiwan and Europe, and it hoped it would serve as a model for other countries.
Beijing objected to the agreement – it claims Taiwan as a province of China and objects to any international action that appears to recognise Taiwan’s sovereignty.
Only 13 countries have official diplomatic relations with Taiwan’s government but many others maintain informal relations, with mutually established trade offices, and economic ties.
China’s embassy in London said in a statement that Beijing always firmly opposed any form of official contact between countries that have diplomatic relations with China and “China’s Taiwan region”.
“We urge the UK to abide by the one-China principle and stop using trade cooperation as an excuse to engage in official exchanges or enhance substantive relations with Taiwan.”
Amid economic troubles in China, geopolitical instability, and Chinese government intervention on major industries, many world governments are exploring how to reduce their reliance on Chinese trade. The US has framed its actions as “derisking” rather than decoupling completely, while many European governments are pursuing economic diversification.
Taiwan is seeking to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), of which the UK is the newest member. Taiwanese minister and its chief trade negotiator, John Deng, said improving economic relations with the UK was “crucial” for Taiwan’s bid.
Beijing, which is also lobbying to join the CPTPP, is opposed to Taiwan’s inclusion. This week the Australian prime minister, Anthony Albanese, visited China for the first time in seven years, during which China’s leader, Xi Jinping, reportedly raised China’s bid in a meeting with him but did not ask explicitly for Australia’s support.
Entry into the CPTPP requires the unanimous support of existing members, and several – particularly Japan – are opposed to China’s inclusion.
“In the face 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, so we applaud for the UK government for taking this step,” said David Spencer, chief executive of the Taiwan Policy Centre which campaigns for closer ties between Taiwan and the UK, and supports Taiwan’s CPTPP bid.
“A closer UK-Taiwan trading partnership can help to secure global semiconductor supply chains, boost net zero around the globe, and enhance safe digital technological developments. Diversifying away from the PRC in these areas and beyond, is vital to the economic wellbeing of everyone.”
