BEIJING - A trade deal between the United States and Taiwan that includes relocating semiconductor factories from Taiwan to the US in exchange for reduced import tariffs has been condemned by the Chinese government.
This was conveyed by Chinese Foreign Ministry spokesman Guo Jiakun at a press conference in Beijing on Friday (16/1), one day after the US and Taiwan announced a trade deal.
"China firmly opposes any negotiations and signing of any agreement that has the connotation of sovereignty and is official between China's Taiwan region and countries that have diplomatic relations with China," he said, as reported by ANTARA, Saturday, January 17.
The trade agreement includes Taiwan's investment commitment of 250 billion US dollars (about 4,227.2 trillion) in the US semiconductor and technology manufacturing sector. In return, import tariffs on Taiwanese products were reduced from 20 percent to 15 percent.
The deal ends months of negotiations over Taiwan's semiconductor industry, following US President Donald Trump's request that chip production be moved to his country.
In addition, Taiwan is said to provide an additional credit guarantee of US$250 billion to help small companies in the semiconductor supply chain that are expanding in the US.
"The US needs to earnestly abide by the one-China principle and the three joint communiques with China," said Guo, stressing that Taiwan is an inseparable part of China's territory.
Based on the agreement, Taiwanese chip manufacturers expanding in the US will be given semiconductor import facilities without additional tariffs during certain construction periods.
TSMC, the Taiwanese semiconductor giant, previously committed to investing $100 billion to expand its business in Arizona.
The US government says its deal with Taiwan is to strengthen US semiconductor supply and production chains, amid global competition in the strategic technology sector.
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