The United States and Taiwan have officially agreed to launch negotiations on a new trade and investment pact, according to statements released by Washington and Taipei.

The two unveiled the US-Taiwan Initiative of 21st Century Trade in June, soon after Taiwan was excluded by US President Joe Biden from the Indo-Pacific Economic Framework (IPEF).

The negotiations would cover 11 topics, including "trade facilitation, good regulatory practices, anti-corruption, SMEs, agriculture, standards, digital trade, labor, environment, state-owned enterprises, and non-market policies and practices," according to a statement by Taiwan's Office of Trade Negotiations on Thursday.

Both sides would also discuss ways of addressing China's "economic coercion," Taiwan's trade representative John Deng said in a press conference on Thursday.

He added that "everyone can see that China is engaging in economic coercion" towards "not only Taiwan, the US but also many other countries," which is "harmful to the world economic order."

Authorities in Beijing claim full sovereignty of Taiwan, even though Taiwan has never been controlled by China's ruling Communist Party. The two sides have been governed separately for more than seven decades.