President Donald Trump’s administration is negotiating a trade deal with Taiwan that could see the self-governed island renewing its investment of semiconductors and other advanced tech in the U.S., according to a new report.
The potential deal, reported by Reuters, would also see major Taiwanese chipmakers like TSMC expand their operations in the U.S. and train more U.S. workers. In exchange, the tech investment would contribute to a larger deal where the Trump administration reduces the current 20% tariff level on other Taiwanese goods.
The White House has remained quiet about any potential negotiations, however.
“Until announced by President Trump, reporting about potential trade deals is speculation,” White House spokesman Kush Desai told Reuters.
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The quiet talks with Taiwan come amid weeks of heightened tensions around the island after Japanese Prime Minister Sanae Takaichi gave a full-throated defense of Taiwan’s independence earlier this month, suggesting that any attack by Beijing on Taiwan would warrant a military response from Japan.
While she later softened her statement, Chinese officials were quick to take offense as Beijing has long considered Taiwan to be part of its territory and its reunification with the mainland an “internal” affair.
Chinese officials responded by summoning Japan’s ambassador and warning Chinese citizens against traveling to Japan. China’s defense ministry also vowed that any Japanese intervention would be ineffective in protecting Taiwan.
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The most vicious response came from China’s consul general in Osaka, who appeared to threaten to decapitate Takaichi in a now-deleted post on social media.
The official, Xue Jian, wrote, “That filthy neck that barged in on its own – I’ve got no choice but to cut it off without a moment’s hesitation. Are you prepared for that?”
Chinese President Xi Jinping also brought up Taiwan during a phone call with Trump earlier this week. China’s foreign ministry said he “underscored that Taiwan’s return to China is an integral part of the post-war international order.”
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