US to Hold Trade Talks With Taiwan, Island Holds Military Drills

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US to Hold Trade Talks With Taiwan, Island Holds Military Drills
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The U.S. government will hold talks with Taiwan on a wide-ranging trade treaty in a sign of support for the self-ruled island democracy China claims as its own territory.

Chinese President Xi Jinping’s government had no immediate reaction to the announcement.

Xi’s government says official contact with Taiwan such as Pelosi’s one-day visit might embolden the island to try to make its decades-old de facto independence permanent, a step Beijing says would lead to war. China takes more than twice as much of Taiwan’s exports as the United States, its No. 2 foreign market. Taiwan’s government says its companies have invested almost $200 billion in the mainland. Beijing says a 2020 census found some 158,000 Taiwanese entrepreneurs, professionals and others live on the mainland.

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