Washington and Taipei signed a trade deal that will reduce Taiwan’s export tariffs to 15%, the same as those imposed by Asian allies Japan and South Korea, and will also open Taiwan’s market to American goods.

Taiwan will eliminate or reduce tariff barriers on 99% of U.S. goods and provide “preferential market access” to U.S. industrial and agricultural exports. These include automobiles, beef products and minerals.

Taiwan Also planning Purchase more than $84 billion in U.S. goods from 2025 to 2029, including liquefied natural gas and crude oil, as well as aircraft and electrical equipment.

The USTR said Taiwan has committed to “addressing long-standing non-tariff barriers” such as accepting U.S. vehicles built to U.S. federal motor vehicle safety standards without any additional requirements.

The deal was first announced January At that time, Taiwanese chip and technology companies pledged to invest at least US$250 billion in production capacity in the United States and receive an equal amount of government credit support “to promote additional investment by Taiwanese companies.”

However, Taiwan and the United States have different views on chip supply chain issues.

The goal is to bring 40% of Taiwan’s entire semiconductor supply chain to the United States during the U.S. presidential term Secretary of State Howard Lutnick told CNBC last month. He also said that Taiwanese chip companies that do not produce in the United States may face 100% tariffs.

However, Taiwan rejected the offer and told Washington to move 40% of Taiwan’s semiconductor supply chain to the United States is “impossible” According to Taipei’s top tariff trade negotiator.

Vice Prime Minister Cheng Liqun told local media that the semiconductor ecosystem Taiwan has built over decades cannot simply be relocated.

She said in Mandarin that Taiwan’s international expansion, including investment in the United States, is based on the idea that the industry remains rooted in Taiwan and continues to expand domestic investment.

China considers democratically governed Taiwan to be part of its territory Criticism of the January Agreementindicating that the transaction will “It will only consume Taiwan’s economic interests.” And added that the ruling Democratic Progressive Party is letting the United States “Empty” The island’s pillar industry.

Chinese President Xi Jinping views Taiwan’s reunification with mainland China”historical inevitability” Taiwan denies these claims.

Although the United States does not have a mutual defense treaty with Taiwan and has no obligation to defend Taiwan, Taiwan Relations Act of 1979 The statement stated that the United States “will provide Taiwan with necessary defense articles and defense services” to “enable Taiwan to maintain adequate self-defense capabilities.”

United States in December $11.15 billion approved The arms sales to Taiwan, one of the largest U.S. transactions with Taiwan, drew a strong response from Beijing, with its foreign affairs spokesman Kuo Jiakun accusing the United States of violating the “one-China principle” as the island faces a growing threat from China.

—CNBC’s Anniek Bao and Dylan Butts contributed to this story.