USTR: To begin formal negotiations on a trade initiative with Taiwan in early autumn

US Trade Representative Office said in a statement on Thursday that “early this autumn, the US and Taiwan will begin formal negotiations on a trade initiative.”

Separately, a top US diplomat for East Asia Kritenbrink said that “China has used House Rep. Speaker Pelosi's visit to Taiwan to try to change the status quo.”

Additional quotes

Several warships remain around Taiwan.

These actions are part of an intensifying campaign by China around Taiwan.

Expects China's pressure campaign against Taiwan to continue.

International community has interest in maintaining peace and stability in Taiwan Strait.

We are sticking to our one-China policy, the us policy toward Taiwan has remained consistent.

Taiwan's independence is not supported by the US.

We intend to strengthen our ties with Taiwan.

The US is committed to maintaining peace and stability across the Taiwan strait.

We have maintained open lines of communication with Beijing.

The US remains across the board committed to our partnership with Taiwan.

What has not changed is the US one China policy, our approach to partnership with Taiwan.

What has changed is Beijing's use of coercive and provocative actions.

One concern is that Beijing will continue to take steps to put pressure on Taiwan.

Market reaction

Risk sentiment remains sour in the Asian session this Thursday, with investors now weighing on the latest US news on Taiwan.

AUD/USD is tumbling towards 0.6900 after the dismal Australian jobs data, trading modestly flat at 0.6936, as of writing.