Canada and Taiwan are starting to talk trade, in an attempt by both countries to boost trading relationships beyond China.
Some context: China is Canada’s third-biggest trading partner after the US and EU. Recent affairs, such as the extradition case of Huawei CFO Meng Wanzhou have reinforced the need for Canada to explore its options.
In the country’s first step towards “seeing other people,” Canada’s International Trade Minister Mary Ng met with Taiwan’s Chief Trade Negotiator and Minister John Deng on Sunday to start exploratory discussions.
What we’re hearing: Former Canadian ambassador to China, Guy Saint-Jacques, said Taiwan not only abides by international trade rules, but would make a more dependable trade partner than China to Canada.
- Meanwhile, Beijing’s Foreign Ministry spokesman Wang Wenbin criticized Canada for holding trade talks with Taiwan.
- China has also recently come under fire for undermining international trade rules, with the US accusing them of "skewing the playing field” back in October.
Why it matters: Taiwan dominates the world’s semiconductor chip market. Taiwan Semiconductor Manufacturing makes over 90% of the world’s most advanced chips, used in everything from mobile phones to electric cars. A trade partnership with Taiwan could promote further supply chain resilience.