Taiwan

Preliminary Trade Agreement Between U.S., Taiwan Garners Approval from Senate

Wed, 19 Jul 2023 20:00:00 GMT

The Senate has approved a preliminary trade agreement with Taiwan, clearing its path to President Biden’s desk for final approval. This legislation was a result of negotiations between the Biden administration and Taipei.

The bill outlines transparency and cooperation terms for future negotiations and could potentially pave the way for stronger tax ties between the U.S. and the island nation. Though the bill had previously been blocked in the Senate, it managed to secure passage due to its bipartisan support.

The bill was initially introduced back in June by Sen. Ron Wyden (D-Ore.), Finance ranking member Mike Crapo (R-Idaho), House Ways and Means Chair Jason Smith (R-Mo.), and ranking member Richard Neal (D-Mass.). These legislators believe that this bill sends a strong message about the willingness of Congress to enhance its trade relationship with Taiwan, subsequently asserting Congress’s constitutional authority over trade agreements.

The leaders also drafted a proposed legislation earlier this month that promises treaty-like benefits for businesses seeking cross-border investment opportunities via the tax code.

Of note: This tax bill will aim to lower withholding taxes on dividends, interest, and royalties associated with cross-border investments, making it accessible for smaller businesses to engage in these types of investments by alleviating related barriers. Thus, encouraging increased economic cooperation and mutual financial benefits between the two nations.

U.S. Defense Spending Bill Leads to China Taking Aim at Taiwan

Tue, 27 Dec 2022 19:48:48 GMT

Taiwan’s defense ministry said China sent 71 warplanes and seven naval vessels on “strike drills”⁠ — rehearsals for conflict ⁠— into its air-defense zone on Monday.

China had condemned an American spending bill that included military assistance for Taiwan, accusing both countries of escalating their “collusion and provocation.” Tensions have been especially high since Nancy Pelosi, the former speaker of the House, visited the island in August.

Meanwhile, Taiwan extended mandatory military service in response to growing fears of China. From 2024, conscripts will spend a year in the military, up from four months currently. The move could increase Taiwan’s military manpower by about 40%, analysts told Reuters.

Conscripts will be tasked with guarding infrastructure, allowing the island’s professional forces to respond to an invasion, and make it more like a “porcupine” — prickly and hard to attack.

More on China :

China Cites U.S. Ag for Why It’s Chosen Not to Invade Taiwan
China Halts COVID-19 Data
5 Trends Happening In China That Will Affect Your Farm

China Cites U.S. Ag for Why It's Chosen Not to Invade Taiwan

Tue, 01 Nov 2022 19:32:58 GMT

Can U.S. agriculture stand between China and a war in Taiwan? According to economists, it can and is.

“China’s own military released a report maybe two months ago that said the single main reason for us not to intervene in Taiwan directly is that the U.S. might see this as an excuse to impose sanctions if we do not bring in food from outside China,” Chris Kuehl, Armada Corporate Intelligence chief economist said in an episode of Farming the Countryside.

Also in the report, China acknowledged that they are only 20% independent in soybeans and buy 80% of what it needs.

China’s military report comes as the country grapples with a protein shortage .

Up the Pork Ante

In October, China sold 200,000 metric tons of pork from state reserves to help ease surging domestic pork prices.

Jim Wiesemeyer, Pro Farmer policy analyst, says China announced it now plans to release its seventh batch of frozen pork from reserves.

Increasing pork production might be the country’s main tactic to tackle low pork numbers.

China’s sow herd grew 2% in September versus the prior month to 43.62 million head, according to the country’s ag ministry. The hog herd increased 3.1% from the prior month to 443.94 million head and was up 1.4% from year-ago.

Will History Repeat Itself?

With the herd increase and reserves in tow, will the resources be enough to curb China’s imports of U.S. protein and allow the country to invade Taiwan? Kuehl isn’t convinced.

He says the choice to hold off on war in Taiwan is based on a page from China’s history books.

“In the last 2,500 years, every Chinese government that has fallen, has fallen over food,” says Kuehl. “They need those import markets—be it from the U.S, Canada, Brazil, Argentina or Australia.”

China can likely “get along” without U.S. imports, as Kuehl thinks they would seek out other countries. However, he doesn’t feel their exports could handle a riff with the U.S. due to its sales stake in stores such as Walmart and Target.

Exploring Other Avenues

Any hope for becoming less dependent on imports is useless in China, according to Kuehl, who says almost two-thirds of its land is “useless.”

“As far as ag, China is desert, mountains and simply not up for this—they’re actually quite resource poor,” he says. “They import oil and many precious metals that they need. Some things they have independence with, but not many.”

U.S.’s Trade Tactics

The news in China comes as the Office of the U.S. Trade Representative (USTR) announced next steps in its four-year review of tariff actions in China.

USTR will open an electronic portal on Nov. 15 to gather information on the impacts of China’s acts, policies and practices in technology transfer, intellectual property and innovation.

According to USTR, the electronic portal will be open to the public, with the questions in the portal made available to respondents sometime this week.

More on trade:

New Legislation Could Halt Gas Exports When Prices are High
Mexico to Proceed with GMO Corn Ban
Saudi Arabia Accuses Unnamed Countries of Using Emergency Oil Reserves to Manipulate Markets

DC Signal to Noise: Weather, War, and Waiting Games

Mon, 11 Oct 2021 23:28:04 GMT

Chip Flory of AgriTalk and Pro Farmer policy analyst Jim Wiesemeyer summarize the most recent happenings on The Hill. Click on the video above or the podcast below for insight on these topics and more:

> Market fluctuations influenced by weather and COVID-19

> U.S., China, and Taiwan tensions

> Debt limit extension