Mainland denounces Taiwan-US trade deal as 'sellout pact'

A Chinese mainland spokesman on Wednesday criticized the recent trade agreement between Taiwan and the United States, labeling it a "sellout pact" and accusing Taiwan's Democratic Progressive Party of jeopardizing the well-being of its people and undermining industrial development.

Peng Qing'en, spokesman for the State Council Taiwan Affairs Office, stated at a press conference that the trade negotiations were conducted under intense pressure from Washington, which used tariffs as leverage to compel Taiwan to significantly increase its investments in the US, potentially weakening Taiwan's competitive industries.

Peng described the agreement as "a capitulation in the face of economic bullying".

Under the deal, the US agreed to lower tariff rates on goods imported from Taiwan to 15 percent.

In exchange, Taiwan committed to investing at least $250 billion in the US focusing on sectors like semiconductors and artificial intelligence, and providing more than $250 billion in credit guarantees.

While DPP officials praised the agreement as the "best deal", Peng highlighted that Taiwan is committing a total of $500 billion in investments and risks relocating 40 percent of its semiconductor supply chain to the US. This, he argued, was in return for a minor tariff reduction from 20 percent to 15 percent.

US Commerce Secretary Howard Lutnick told CNBC that the US aimed to transfer 40 percent of Taiwan's semiconductor production capacity to the US.

Peng criticized the DPP for misleading the public by portraying unilateral concessions as equal cooperation and described the deal as a "complete capitulation" under the guise of a "Taiwan model".

He further accused the DPP of incompetence and shamelessness, suggesting that their actions would lead to Taiwan's industrial decline and economic instability. Peng noted that the $500 billion investment is approximately 80 percent of Taiwan's foreign exchange reserves and equates to each Taiwan resident contributing NT$680,000 ($21,489) as a "political donation" to the DPP's external reliance strategy.

Peng warned that relocating a significant portion of Taiwan's semiconductor production capacity to the US would erode the island's core industrial advantage, turning it from an "island of technology" into a "hollow island".

He emphasized that the trade negotiations' outcome illustrated that "Taiwan independence" is a dead end and that external forces cannot be relied upon. "Without the support of a strong motherland, Taiwan risks becoming 'a piece of fat meat' for external powers and 'a lamb to be slaughtered at will'," Peng said.