Nikkei Asia recently reported that Taiwan and Japan on December 5 formally signed the Taiwan–Japan Digital Trade Agreement, citing remarks by Jeremy Chang Chih-Cheng, CEO of DSET. The accord marks the first major economic and trade agreement advanced between Taiwan and Japan since Japanese Prime Minister Sanae Takaichi took office, underscoring the determination of both sides to deepen cooperation amid rapidly shifting global economic and digital governance dynamics.
According to Taiwan’s Office of Trade Negotiations (OTN), under the Executive Yuan, the new agreement builds on a 2013 e-commerce arrangement and represents a comprehensive upgrade. OTN noted that the accord is expected to facilitate digital economic activity for businesses and consumers on both sides and strengthen market confidence.
Nikkei Asia highlighted that the agreement was concluded at a particularly tense moment in the region, and that Japan’s decision to proceed with the signing demonstrates the resilience and stability of Taiwan–Japan engagement.
DSET’s CEO Jeremy Chang told Nikkei Asia that efforts to pursue a comprehensive, package-style bilateral FTA between Taiwan and Japan have for years faced significant political headwinds. As a result, both sides have traditionally adopted a pragmatic approach by advancing cooperation through targeted agreements focused on individual chapters commonly found in bilateral or multilateral FTAs. “This strategy has allowed Taipei and Tokyo to steadily push forward their economic and trade agenda,” Chang said.
The report also noted that China has recently escalated political and economic pressure on Japan in response to remarks made by Prime Minister Takaichi. Chang argued that Beijing’s retaliatory measures underscore “China’s growing willingness to weaponize trade interdependence.” By targeting consumer-oriented sectors, Beijing aims to pressure other governments into yielding to its political agenda, he said.
Nikkei Asia further reported that Japan remains one of Taiwan’s most important security and strategic partners. Taiwan’s Foreign Minister Lin Chia-lung quietly visited Japan over the summer—the first known visit by a Taiwanese top diplomat since formal ties ended in 1972—reflecting the continued deepening of mutual trust between the two sides despite a rapidly evolving regional security environment.
The Taiwan–Japan agreement also represents an important step in Taiwan’s broader efforts to expand digital trade and cross-border cooperation. The report noted that Taiwan’s e-commerce market continues to grow, while Japan ranks as the world’s fourth-largest e-commerce market, highlighting strong complementarities between the two economies in the digital sector.
