Skip to content

Taiwan and Japan work on trade pact akin to UK deal

Talks reported by Nikkei Asia aim at a broad framework drawn up to limit political sensitivity as Beijing presses Taipei over its trade diplomacy.

Skardu Times desk
Taiwan and Japan work on trade pact akin to UK deal
Photo: Nikkei Asia

Taiwan and Japan are working on a broad economic cooperation pact, according to sources with direct knowledge of the talks cited by Nikkei Asia, a framework that could give Taipei a firm trade foothold in Asia and break a logjam in Taiwanese trade diplomacy.

The report, published on Monday, described the potential agreement as a strategic anchor between the two Asian technology economies. It said the arrangement would be similar in shape to the pact Taiwan reached with Britain, which it called the Taipei-London pact.

Nikkei Asia said the framework is being designed to "minimize political sensitivity" at a time of pressure from China, which claims Taiwan as its own territory and objects to other governments treating Taipei as a state. Japan does not have formal diplomatic relations with Taiwan.

The sources were not named. The report did not say what the pact would cover, when the talks began or whether a signing date has been set, and it described the work as a broad framework rather than a concluded agreement. Neither government has announced the negotiations publicly.

For President Lai Ching-te, completing an economic cooperation pact with Japan would be a hard-won victory, according to the report, which said his administration has struggled to gain traction on trade agreements. Lai attended the Computex trade show in Taipei in June.

The report gave no timetable for the talks and did not say which agencies on either side are handling them.

PoliticsPakistan

Pakistan bars Taiwan carriers from its airspace under One-China policy

Defence Minister Khawaja Asif told Bloomberg that only mainland Chinese airlines are permitted to fly over Pakistan, as Taiwanese carriers re-route Europe-Asia flights.

Science & TechnologyChina

China's robot makers shift spending from hardware to AI brains

Embodied AI startups in China raised 93.5 billion yuan in the first half of 2026, five times the year-earlier total, as the contest with US developers moves to software.

SecurityAustralia

Sydney starts armed police patrols after Bondi Beach attack

New South Wales says the 250-officer Armed Response Command will guard events, tourist areas and places of worship with rifles, an Australian first.

PoliticsChina

China's Communist Party to monitor members' online activity for graft

A document adopted at a Central Committee plenum pledges digital discipline inspection and a crackdown on corruption linked to virtual currency and blockchain.

PoliticsChina

China's Communist Party expels record 33 members at plenum

The fifth plenum of the 20th Central Committee left more than a quarter of its seats empty as Xi Jinping defended the discipline campaign.

EconomyNorth Korea

Binance resumes withdrawals as FBI blames North Korea for $6.3bn hack

The exchange says it has replaced 90 percent of the stolen tokens and that customers will not carry the loss from the largest crypto theft on record.

EconomyUnited StatesHow the reports differ

Marvell to buy Lumentum for $115bn in AI data-centre bet

Reuters gave the figure without terms or a closing date, as an LG CNS facility opened in Jakarta and Bank of America warned on the AI boom.

EconomyGilgit-Baltistan

Government Proposes 10% LPG Quota for Gilgit-Baltistan, Remote Areas

Producers would sell a tenth of their output to state marketing companies at producer prices, with the other 90% going to OGRA-prequalified bottlers at monthly auctions.