US, Taiwan defy Beijing in ‘sensitive moment’ when pressures are mounting on China

Renewed attempts by the United States and Taiwan to foster closer trade ties are underscoring Beijing’s concerns over a deteriorating international environment, and analysts say these types of external uncertainties help illustrate why China is looking inward to get its economy back on track.

Chinese authorities remain caught in a dilemma as Beijing’s zero-Covid strategy has disrupted supply chains and hurt investor confidence, while the Russia-Ukraine war, US Federal Reserve’s interest rate increases and Washington’s “strategic rivalry” take a heavy toll on the world’s second-largest economy.

In recent months, the US and China disagreed over the terms of their phase-one trade agreement, which expired at the end of last year and has not been renewed. Their economic and technological rivalries have also intensified.

And now, attention has increasingly shifted to Taiwan after Beijing’s refusal to condemn Russia’s invasion of Ukraine.

Beijing, which considers Taiwan a breakaway province that must be brought under control, by force if necessary, strongly opposes official exchanges between other countries and the island.