Japan and Taiwan Sign Digital Trade Agreement: Geopolitical Implications for the Cryptocurrency Industry

Source: CritpoTendencia Original Title: Taiwan and Japan sign digital trade agreement amid tensions with China Original Link: Recently, authorities from Japan and Taiwan sealed a digital trade agreement that could be of enormous significance for the region. This move becomes a strong signal of rapprochement between the two economic powers despite pressure from mainland China.

A few days ago, Japan’s Prime Minister Sanae Takaichi threatened to become militarily involved in a hypothetical conflict between China and Taiwan. This angered authorities in Beijing, who called the statements “reckless” in addition to issuing warnings from a more diplomatic standpoint.

Amid these tensions, Taipei and Tokyo are taking this new step toward closer ties. Representatives of the two administrations signed the agreement during a technology meeting held in Taiwan. Authorities highlight that the agreement includes the incorporation of “more comprehensive and important standards of contemporary virtual trade.”

Among the points addressed by this digital trade agreement are elements such as tariff exemptions on cross-border electronic data transmission. This is complemented by paperless trade, data and privacy protection, network security, and online consumer protection.

In addition to this, the representatives signed a memorandum of customs cooperation.

The digital trade agreement and pressure from China

As mentioned earlier, the agreement comes at a time of serious tensions between Tokyo and Beijing. As is well known, China considers Taiwan a part of its territory, something that the vast majority of nations around the world (including the US) accept. However, within the island’s domestic politics there are also separatist factions seeking independence.

This latter point is considered a red line by China. Thus, a declaration of independence could trigger a forced military reunification by Beijing. This is a conflict with a long history dating back to the civil war between the Kuomintang and the Communist Party.

While most nations of the world see it as an internal matter for China, recently Japan has become involved, which has caused discomfort in the communist country. As can be seen, this context is enormously complicated, which is why Chinese authorities are closely monitoring any agreement between Taiwan and other nations.

Despite this, trust and ties between the authorities of Japan and Taiwan are growing stronger. Digital trade is one of the sectors with the greatest potential in Asia, which makes this agreement an element of enormous significance.