US President Donald Trump Provokes China With $250-billion US-Taiwan Deal, Tensions Escalate

Washington: China has expressed strong objection to the trade and investment agreement worth about $250 billion between America and Taiwan. The mega agreement covers sectors that include semiconductors (chips), advanced technology, and energy and is being described as “one of the largest economic partnerships in history.” Taiwanese companies have pledged to invest heavily in the US, while Washington has paved the way for tariff cuts on imports from Taiwan.

These decisions have given Beijing the feeling of adding fuel to the fire because China considers Taiwan as its part and sees any kind of deep economic or political involvement as a challenge to itself.

What changes will happen under the US-Taiwan deal?

In this agreement, Taiwanese products and companies will get easy entry into America. America has decided to reduce the duties imposed on many goods coming from Taiwan. Duty on some products has been reduced by about 15 percent, while duty may be removed completely in some categories. This will make Taiwanese products more affordable and competitive in the US market.

How much did Taiwanese companies plan to invest in the US?

Major Taiwanese companies, especially semiconductor firms, have announced large-scale investments in the US. These investments will go towards expansion and construction of mill facilities in different US states, such as Arizona. These investments are aimed at strengthening the US semiconductor supply chain and boosting local jobs.

How did China react to the deal?

China has described the agreement as a “threat to regional stability.” Beijing believes that Taiwan is part of it and that the growing US-Taiwan partnership could weaken its integration policies. China has warned that such a move could further escalate tensions and affect the peaceful situation in the Taiwan Strait.

What do US officials say?

US Commerce Department officials have described the deal as important for expanding America's technology and production capacity. He says that this is not just a trade agreement but also a step to increase self-reliance in chips and advanced technology. Some officials have said that Taiwan saw the agreement as maintaining good relations with the United States.

This deal is yet to be implemented?

This agreement is yet to be passed in Taiwan's Parliament. Experts believe that if this is approved, the map of global technology investment could change. On the other hand, any possible retaliatory action by China is also being closely monitored.

What impact can this have on regional politics?

Analysts say the deal could create further turmoil against the backdrop of already ongoing political and economic tensions between the US and China. China may see this as an attempt to increase international recognition. However, some analysts believe that this step is part of America's strategy to firmly pull global technological leadership towards itself.

What could happen next?

If Taiwan's Parliament approves this agreement, formal steps regarding investment can be taken soon. Strategic equations may also change in the Indo-Pacific and South China Sea areas. The whole world is keeping an eye on China's reaction and further talks between America and Taiwan.