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A Taiwanese minister has called upon the European Union to make substantial progress in negotiations for a long-delayed investment deal. This appeal comes as the EU actively seeks closer connections with major chip manufacturers on the tech-oriented island of Taiwan, particularly TSMC.
Taiwan has been actively advocating for the finalization of a Bilateral Investment Agreement (BIA) with the EU, citing its potential to attract more Taiwanese investments, especially from chip companies.
Although Taiwan was identified as a BIA candidate by the EU in 2015, no discussions have taken place regarding this matter.
Despite the lack of formal relations with the Chinese-claimed island, the EU has been wooing Taiwan as a “like-minded” prospective partner under the European Chips Act. This initiative aims to bolster semiconductor production in Europe and reduce reliance on Asia.
However, China regards Taiwan as a part of its territory, leading to Beijing’s routine objections to high-level interactions or agreements between foreign governments and Taipei. This complicates the diplomatic landscape concerning the BIA.
During a Taiwan-EU investment forum in Taipei, attended by Taiwan’s president and the de facto EU ambassador to Taipei, the head of Taiwan’s economic planning agency emphasized the shared values of democracy and freedom between Taiwan and the EU. He suggested that with mutual trust, any challenges could be overcome, and he encouraged EU headquarters to effectively initiate discussions on the BIA.
In her address at the same forum, President Tsai Ing-wen did not explicitly mention the BIA, although she did so in the previous year’s event. She expressed optimism about improving Taiwanese investments in Europe, highlighting the ongoing efforts in that regard.
For Taiwan, the establishment of a BIA holds significant political importance due to its diplomatic isolation and limited inclusion in global organizations and agreements, even though it is a member of the World Trade Organization.
Recently, Taiwan Semiconductor Manufacturing Corp (TSMC), the world’s largest contract chipmaker, announced a substantial 3.5 billion euro ($3.72 billion) investment in Germany to establish its first factory in Europe.
