US and Taiwan plan to announce negotiations to deepen economic ties

The US and Taiwan are planning to announce economic talks to deepen their ties, Bloomberg reported on Friday, citing unnamed 'people familiar with the matter.'

Key takeaways

“Bilateral economic talks to be announced in the coming weeks.”

“Talks would focus on enhancing economic cooperation and supply-chain resiliency, falling short of a traditional free-trade agreement. “

“The deal is likely to include areas of trade facilitation, supply-chain work and trade in agricultural products.”

Market reaction

The confirmation of the proposed talks between the US and Taiwan is unlikely to go down well with China, although markets seem to have ignored that for now.

AUD/USD, the Chinese proxy, is jumping 0.51% on the day to trade around 0.7135, as of writing.

Meanwhile, the S&P 500 futures are losing 0.12% so far.