US to hold trade talks with Taiwan, island drills military

Hualien (Taiwan): The U.S. government on Thursday announced trade talks with Taiwan in a sign of support for the island democracy China claims as its own territory, prompting a warning by Beijing that it will take action if necessary to safeguard its sovereignty.

The announcement comes after Beijing fired missiles into the sea to intimidate Taiwan after U.S. House Speaker Nancy Pelosi this month became the highest-ranking American official to visit the island in 25 years.

Chinese President Xi Jinping's government criticized the planned talks as a violation of its stance that Taiwan has no right to foreign relations. It warned Washington not to encourage the island to try to make its de facto independence permanent, a step Beijing says would lead to war.

China firmly opposes this, said Ministry of Commerce spokeswoman Shu Jueting. She called on Washington to fully respect China's core interests.

Also Thursday, Taiwan's military held a drill with missiles and cannon simulating a response to a Chinese missile attack.

Taiwan and China split in 1949 after a civil war and have no official relations but are bound by billions of dollars of trade and investment.

The island never has been part of the People's Republic of China, but the ruling Communist Party says it is obliged to unite with the mainland, by force if necessary.

President Joe Biden's coordinator for the Indo-Pacific region, Kurt Campbell, said last week trade talks would deepen our ties with Taiwan but stressed policy wasn't changing. The United States has no diplomatic relations with Taiwan, its ninth-largest trading partner, but maintains extensive informal ties.

The U.S. Trade Representative's announcement made no mention of tension with Beijing but said formal negotiations would develop trade and regulatory ties, a step that would entail closer official interaction.

Being allowed to export more to the United States might help Taiwan blunt China's efforts to use its status as the island's biggest trading partner as political leverage. The mainland blocked imports of Taiwanese citrus and other food in retaliation for Pelosi's Aug. 2 visit.

U.S.-Chinese relations are at their lowest level in decades amid disputes over trade, security, technology and Beijing's treatment of Muslim minorities and Hong Kong.