TAIPEI: The United States and Taiwan will sign a trade deal on Thursday, Taipei said, in a move likely to stoke tensions between Beijing and Washington over the island.
The Office of Trade Negotiations in Taipei announced that the first batch of agreements under "The US-Taiwan Initiative on 21st Century Trade" will be inked in Washington at 10am local time (1400 GMT), without providing details.
Washington has remained a key ally and arms supplier to Taiwan despite switching diplomatic recognition from Taipei to Beijing in 1979. It is also the island's second-largest trade partner.
But Beijing detests any hint of diplomatic relations between Taiwan and other governments as it considers the self-ruled island its own territory.
"The deal that will be signed tonight is not only very historic but also signals a new beginning," cabinet spokesman Alan Lin told reporters in Taipei.
"Relevant tasks are yet to be completed... Taiwan will continue to move towards a comprehensive FTA (free trade agreement) with the United States to ensure Taiwan's economic security."
The new initiative looks to boost trade by streamlining customs checks, improving regulatory procedures, and establishing anticorruption measures between the US and the island.
Taiwan's government has described the deal as "the most comprehensive" trade agreement signed with Washington since 1979.
Beijing has in recent years stepped up threats and rhetoric against Taiwan, increasing military drills in the seas around the island and working to cut off its official ties with countries around the world.
The issue prompts rare bipartisan agreement in the US, with politicians including Republican House Speaker Kevin McCarthy and his Democratic predecessor Nancy Pelosi both meeting publicly with Taiwanese leader Tsai Ing-wen.
Washington unveiled plans for the trade negotiations last August in a show of support as Beijing was staging huge military drills in response to then-speaker Pelosi's visit to Taipei.
China lashes out at any diplomatic action that appears to treat Taiwan as a sovereign nation and has reacted with growing anger to visits by Western politicians.
In April, Beijing conducted three days of military exercises simulating a blockade of the island in response to McCarthy and Tsai meeting in California.