US-Taiwan Pact on to Establish Annual Economic Talks for 5 years

The US and Taiwan have signed a pact to establish the annual economic talks for five years. It was signed in Washington on November 20, 2020. The pact have been signed despite it was objected by China.


  • The memorandum of understanding (MoU) was signed between US and Taiwan after an inaugural round of economic talks.
  • With this pact, the discussion between both the countries would be held alternatively in future.

Memorandum of Understanding (MoU)

  • US and Taiwan agreed upon the strategic cooperation on the semiconductor industry.
  •  Both the countries further agreed on to collaborate in supply chains, science and technology, 5G, telecommunications security and global health.
  • This agreement can be extended for another five years after the current pact will end.

When the talk began?

50 senators had signed a letter to urge the US Trade Representative Robert Lighthizer to begin talks with Taiwan in the month of October 2020. Pressure to begin trade talks was increased after Taiwan’s restrictions on the import of US pork and beef was lifted in August 2020.

Why China is not happy with the deal?

The displeasure of China on the pact also lies in the fact that the  ruling Communist Party in Beijing claims Taiwan as its own territory even though China never controlled it. China has repeatedly opposed over improving ties between US and Taiwan. So, China is claiming the deal as a political provocation. In the past also, China had sent military aircraft over the median line of the Taiwan Strait when an US official visited Taiwan in September 2020.