Taiwan criticized the US government for declining a F-16 fighter jet sale but called Washington’s proposal a welcome step to keep the island strong against Beijing.
Breaking six decades of tension, China hopes allowing solo travelers to Taiwan will advance its goal of political unification, while Taiwanese see the prospect as a boon to the economy.
A potential free-trade deal between with Singapore may signal that China has stopped warning other countries against doing deals with Taiwan.
Taiwan's planned tax on everything from speculative real estate deals to yachts targets a politically volatile and growing wealth gap. Parliamentary and presidential elections are scheduled for early next year.
The investment deal points to deeper trust – and gains – between China and Taiwan.
The high-profile arrest will do more damage to Taiwan, where officials are under scrutiny for missing the suspected espionage, than it will to Taiwan-China relations.
The test, which revealed problems with several missiles, is considered a warning to China and a signal to the US that Taiwan still needs military assistance.
Riling China, the US's newest $6.4 billion sale includes 60 Blackhawk helicopters, Patriot missiles, and sophisticated command-and-control software.
Health concerns and angry protests have prompted partial bans on US beef imports in Taiwan, Japan, and South Korea – most recently by Taipei on Tuesday. The recurring dispute has strained relations.