EU to increase trade ties with Taiwan even as China warns bloc 'not to gamble': Report

The European Union (EU) has planned to ramp up its trade and investment relations with Taiwan as the 27-nation bloc views the island’s “role as a hi-tech leader” even though China has warned the EU "not to gamble" on the issue. However, this comes after the EU dropped the plan of enhancing ties with Taiwan in a bid to avoid angering China. In particular, Brussels is eager to attract Taiwanese investment in its semiconductor sector and considers the increased political engagement as a way to help the same. 

The South China Morning Post, in a report, stated that the bloc’s trade chief Valdis Dombrovskis told the European Parliament that a “modernised” trade and investment dialogue will take place on June 2. These talks were previously held at the deputy director and vice-ministerial level. Now, the online talks will be led by the EU’s director for trade, Sabine Weyand, and the Taiwanese minister for economic affairs, Wang Mei-hua.

The EU’s plans regarding ties with Taiwan were first reported in November when they were axed at the last minute following concerns from European Commission President Ursula von der Leyen over damaging the bloc’s ties with China. However, the report noted that the China-EU ties have anyway deteriorated and the bloc has acknowledged that it requires Taiwanese backing if it is willing to follow through on a €45 billion (US$47 billion) European Chips Act unveiled by von der Leyen in February.

It is pertinent to note that Taiwan is a world leader in semiconductors and produces at least 90% of the world’s most advanced chips. Dombrovskis said, “In line with the EU Indo-Pacific strategy, we want to develop our trade and investment partnership with Taiwan in areas where our interests intersect”, as per the report.

“This is why [the Directorate-General for] Trade and Taiwan’s Bureau of Foreign Trade have worked together to modernise their annual dialogue, reflecting Taiwan’s role as hi-tech leader,” he added.

The pair will also discuss “critical sectors and policy areas linked to supply chains, export control and FDI [foreign direct investment] screening”, as per SCMP. 

As per the report, Taiwan’s envoy to Belgium and the European Union (EU), Ming-yen Tsai welcomed the EU’s move. He said, “The EU’s decision ... demonstrates the importance it attaches to the economic and trade exchanges between Taiwan and the EU, as well as its willingness to strengthen Taiwan-EU supply chain cooperation”. 

China warns EU 'not to gamble' on the issue

However, a spokesperson for the Chinese mission to the EU called on the bloc “not to gamble on this issue, abide by the one-China principle, earnestly respect China’s sovereignty and honour its political commitments with concrete actions”.

“We firmly oppose any form of official interactions or any discussion and signing of an agreement with implications of sovereignty and of an official nature between countries or organisations and the Taiwan region. It needs to be noted that this is not a trade issue, but a serious political issue that concerns the political foundation of China-EU relations,” the spokesperson added, according to the report. 

(Image: AP)