TAIPEI (Taiwan News) — Taiwan and Japan signed a digital trade pact on Thursday, deepening cooperation despite rising tensions with China, Nikkei Asia reported.
Officials sealed the agreement at the Japan–Taiwan Economic and Trade Conference in Taipei, marking the first major economic accord since Japanese Prime Minister Takaichi Sanae’s recent diplomatic clash with Beijing.
Taiwan’s Office of Trade Negotiations said the pact expands on a 2013 e-commerce agreement and incorporates modern digital rules. It covers tariff exemptions on cross-border electronic transmissions, free data flows, and cybersecurity.
The two sides also signed a memorandum on customs cooperation. Japan was represented by the Japan–Taiwan Exchange Association, the body that manages unofficial relations in the absence of formal diplomatic ties.
The pact comes at a sensitive time as China lashes out at Takaichi’s comments on a potential Taiwan conflict. Beijing has discouraged tourism to Japan and criticized any international engagement with Taipei, particularly under President Lai Ching-te’s (賴清德) administration.
A source familiar with the matter said the deal shows that Tokyo–Taipei cooperation will continue despite Beijing’s objections. Japan remains Taiwan’s most important partner after the US, and Taipei has supported Tokyo in recent disputes, including by easing seafood import restrictions.
For Lai, the agreement offers a diplomatic win as Taiwan struggles to expand global trade ties under steady Chinese pressure. Sources said several initiatives have stalled or been blocked.
Research Institute for Democracy, Society, and Emerging Technology CEO Chang Chih-cheng (張智程) said both sides have relied on targeted agreements because a full bilateral free trade deal faces up to political headwinds. This incremental strategy, he said, helps Taipei and Tokyo steadily push forward their trade agenda.
Chang also warned that Beijing’s reaction to Takaichi’s remarks shows how China weaponizes economic interdependence. By targeting consumer sectors, Beijing aims to pressure governments into aligning with its goals, he said.
Taiwan continues to seek deeper economic ties with Japan, especially through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership trade bloc. Foreign Minister Lin Chia-lung (林佳龍) recently called both sides “key partners in the first island chain” and urged Tokyo to support Taiwan’s bid.
The digital trade pact follows a similar deal to the one Taiwan signed with the UK in June. Taiwan’s e-commerce sector continues to grow at a compound annual rate of 5.5%, while Japan remains one of the world’s largest online retail markets.
