US and Taiwan Begin Formal Negotiations on Trade Initiative

The US and Taiwan have initiated formal trade talks, which were anticipated following earlier consultations and the US's Indo-Pacific trade initiative that excluded Taiwan. This development occurs amid heightened tensions due to recent political visits, raising concerns about potential escalations. The close trade relationship between Taiwan and China poses questions about possible retaliatory actions from Beijing, which could impact both economies, especially given China's current economic challenges. The situation's severity will influence Beijing's response, balancing trade ties and geopolitical strategies.

How might Beijing respond to the trade initiative between the US and Taiwan?

What factors could influence Beijing's approach to trade ties with Taiwan?