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Former Defense Secretary Recommends US-Taiwan FTA Wrapped Up by End of 2023

The U.S. should enter into a free trade agreement with the government of Taiwan "by the end of next year," former Secretary of Defense Mark Esper said during a July 26 Atlantic Council webinar. The former secretary, now on the board of the think tank, went on to say that not only should the U.S. pursue an agreement with Taiwan, but that America should persuade its European allies to do the same, regardless of pushback from China.

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China is trying to dominate the world market in areas like semiconductors and rare earth minerals, Esper said. The West is hesitant to take on China because of business relationships and supply chain integration, but forming closer economic relationships with Taiwan and investing in domestic production through actions like the CHIPS Act are economic alternatives with strategic necessity.

Esper said that the U.S. and its allies should not take threats from China "too seriously" in the wake of Chinese statements saying a possible visit to Taiwan by House Speaker Nancy Pelosi, D-Calif. would "seriously violate the one-China principle ... harm China's sovereignty and territorial integrity, and seriously damage the political foundation of China-US relations." Esper predicted that Chinese leadership would likely be more aggressive following the Communist Party Congress in November, so the time to make moves is now, he said.