China’s threat to absorb Taiwan — through possible military action if necessary — has sent nerves soaring in this city while sparking debate half a world away in Washington about the long-held policy of “strategic ambiguity” of what exactly the U.S. military would do to protect the island democracy from an invasion.

Some argue that the era of strategic ambiguity is over. President Biden has responded to increased Chinese military drills near Taiwan by saying U.S. forces will defend the island in the event of an “unprecedented attack.”

China needs to convince the rest of the world it is not an "agent of instability" and will act peacefully in the Taiwan Strait, US Ambassador to China Nicholas Burns said in his first TV interview since taking up his post in Beijing six months ago.

Burns spoke candidly about Beijing's reaction to a visit by United States House Speaker Nancy Pelosi to Taiwan earlier this month, to which China responded by launching extensive military drills around the self-governing island and suspending key diplomatic communications with the US.

The United States and Taiwan have agreed to start trade talks under a new initiative to reach agreements with "economically meaningful outcomes", with a Taiwan official saying China's "economic coercion" would also be discussed.

Washington and Taipei unveiled the U.S.-Taiwan Initiative on 21st-Century Trade in June, just days after the Biden administration excluded the Chinese-claimed island from its Asia-focused economic plan designed to counter China's growing influence. 

The U.S. and Taiwan will engage in formal trade talks, the office of the U.S. Trade Representative said. 

The talks are connected to the U.S.-Taiwan Initiative on 21st-Century Trade, which was announced on June 1 and comes amid tense U.S-China relations.  

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).

A US congressional delegation has arrived for an unannounced visit to Taiwan, 12 days after a tour of the island by House Speaker Nancy Pelosi.

Five members of Congress will visit until Monday, said Washington's de-facto embassy in the capital Taipei.

China launched its largest-ever military exercises around Taiwan after Ms Pelosi's visit earlier in August.

Beijing sees the self-governing island as its own, renegade territory that must be united with the mainland.

China announced more military drills around Taiwan as the island's president met with members of a new U.S. congressional delegation on Monday, in a further sign of support among American lawmakers for the self-governing island Beijing claims as its own.

Taiwanese media showed the delegation arriving for the talks, but details of the meeting were not immediately released. The delegation was due to depart later Monday on a U.S. government plane.

China will renew its military drills around Taiwan after a delegation of U.S. lawmakers made a surprise visit to the self-governed Island, China announced Monday.

Five members of Congress landed in Taiwan on Sunday, less than two weeks after House Speaker Nancy Pelosi outraged China with her own visit. Pelosi's visit triggered China to hold unprecedented military drills surrounding Taiwan. Those drills will now be renewed in reaction to the second Congressional delegation.

Beijing has rescinded a pledge not to send troops to Taiwan if it takes control of the island and accused the U.S. of trying to "undermine China’s development and progress" in a new policy document.

The big picture: Beijing's first white paper on Taiwan since Xi Jinping became president comes days after China's military held live ammunition drills near the democratically governed island in protest at House Speaker Nancy Pelosi's visit to the capital, Taipei.

China said Friday it would halt cooperation with the United States on areas including military relations and climate change while imposing sanctions against House Speaker Nancy Pelosi, as Beijing stepped up its retaliation to her Taiwan visit.

The new measures were announced as military drills Beijing launched furiously in the wake of her trip earlier this week sent warplanes, naval ships and missiles menacingly close to this small island democracy despite growing criticism.