Governor Greg Abbott Announces Establishment of Taiwan Tax Trade Office

July 8 (UPI) — Texas plans to open a trade representative office in Taiwan, Governor Greg Abbott announced, amid strained relations between the United States and China.

Abbott made the announcement Sunday on the first full day of his three-nation economic development mission to Asia, which will take him to Taiwan, South Korea and Japan.

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According to a statement from his office, the Republican governor met with President Lai Ching-te at the presidential office where the two men “explored opportunities for Texas and Taiwan to work together to strengthen trade and investment relationships in critical economic drivers,” including the semiconductor, energy and electric vehicle manufacturing industries.

The new office in Taiwan will operate under the Texas Economic Development and Tourism Office with a mission to “attract foreign direct investment and job creation to Texas and increase Texas exports to Taiwan and other countries,” the governor’s office said in a separate statement.

“Texas and Taiwan are vital economic partners seeking to drive the future of innovation,” Abbott said. “Working together, we will ensure our citizens have the freedom and opportunity to thrive in the growing economies of the 21st century.”

The announcement of the new trade relations office came after the politicians and Taiwanese Minister of Economic Affairs Jyh-Huei Kuo signed a declaration of intent on economic development aimed at strengthening investment, trade and collaboration between their two governments.

According to Abbott’s office, Texas-Taiwan trade will total $21.3 billion in 2023, making the Asian island nation Texas’ seventh-largest total trading partner.

Lai said in an online statement that he was “happy” to welcome Abbott to Taiwan.

“We are pleased to strengthen the friendship between Taiwan and Texas and create opportunities for new trade and investment ties,” the president said.

He added in a separate statement that Abbott told him he was “proud” to open the new office.

“I believe that the establishment of the Texas office in Taiwan will serve as a solid pillar of the friendship between Taiwan, Texas and the United States, strengthening and deepening the Taiwan-U.S. partnership and creating peace and prosperity together,” he said.

The United States cut diplomatic ties with Taiwan in 1979 in order to establish ties with China, which views the self-ruled democratic island as a rogue province and has vowed to retake it by force if necessary.

However, the United States maintains informal diplomatic relations with Taiwan that have grown over the years, with the U.S. State Department describing the island as “a key U.S. partner in the Indo-Pacific.”

Washington has even sought closer relations with Taiwan as China’s threat to its democracy has grown.

The Texas office will be the 23rd state office on the island, with four offices opening last year.