The US government announced it will enter into formal bilateral trade negotiations with Taiwan.
The move comes only weeks after US Speaker Nancy Pelosi visited Taiwan, which saw China react with outrage.
The first round of negotiations will start in the fall, according to the Office of the United States Trade Representative (USTR). Talks will focus on trade facilitation, digital trade and rules on corruption, BBC News reported.
The US-Taiwan Initiative on 21st Century Trade was announced in June. Both countries said they now have "reached consensus on the negotiating mandate.”
"We plan to pursue an ambitious schedule.... that will help build a fairer, more prosperous and resilient 21st century economy," deputy US Trade Representative Sarah Bianchi said in a statement.
Chinese President Xi Jinping’s government slammed the talks as violating China's position that Taiwan is not a separate country. It also threatened that if Washington encouraged Taiwan to officially become an independent nation, it would be a de facto declaration of war, Global News reported.
Taiwan is a strong trading partner of the US, with nearly $106 billion of trade between Washington and Taipei in 2020.