The U.S. and Taiwan will hold a second round of economic talks with Reuters next week

WASHINGTON (Reuters) – The United States and Taiwan will hold a second round of economic talks last week in the face of growing pressure from China on the island, the State Department said on Friday.

The announcement came after a virtual meeting between US President Joe Biden and Chinese leader Xi Jinping. After the meeting, Xi warned that supporters of Taiwan independence in the United States were “playing with fire.”

A State Department statement said U.S. Undersecretary for Economic Growth, Energy, and the Environment, Jose Fernandez, will lead the U.S.-Taiwan Economic Prosperity Association Dialogue on Monday.

He said the interview would be conducted under the auspices of the American Institute of Taiwan (AIT) and the Office of the Taipei Economic and Cultural Delegation (TECRO), which act as an unofficial embassy.

“Our partnership is built on strong two-way trade and investment, interpersonal bonding and a united defense of freedom and shared democratic values,” the statement said.

Taiwan hopes that the talks can finally reach a free trade agreement with the US and called the initial meeting last year a step forward.

It was part of the U.S. commitment to Taipei that the Biden administration continued to depend on former President Donald Trump, much to the chagrin of Beijing, which claims Taiwan is its own.

The two sides had long-delayed talks on the Trade and Investment Framework Agreement in almost July, and Taiwan said it hoped that one day it would be possible to sign a FTA.

Last year, the Taiwanese government lifted a ban on the import of pork with an additive to improve slimming, ractopamine, removing a major hurdle to an agreement with Washington, but a referendum on the issue is due in December.

Taiwan is a major producer of semiconductors, the shortage of which has disrupted supply chains around the world and has particularly affected automakers in and around Washington to help Taiwan accelerate chip production.