Following the opposition from China’s Commerce Ministry, the country’s Foreign Ministry also said on Thursday that Beijing will take resolute measures to defend its territorial integrity and urges the US not to make a wrong judgment after Washington and Taipei agreed to initiate trade talks early this autumn.

This comes after Deputy United States Trade Representative (USTR) Sarah Bianchi said early Thursday, the US-Taiwan trade negotiations “will deepen our trade and investment relationship, advance mutual trade priorities based on shared values, and promote innovation and inclusive economic growth for our workers and businesses.”

“We plan to pursue an ambitious schedule for achieving high-standard commitments and meaningful outcomes covering the eleven trade areas in the negotiating mandate that will help build a fairer, more prosperous and resilient 21st-century economy,” she added.

Market reaction

Amid a rebound in risk sentiment, the aussie dollar is benefiting the most amongst the higher-yielding currencies, ignoring the US-China spat over Taiwan.

AUD/USD is trading at 0.6961, adding 0.45% on the day, at the time of writing.