Taiwan’s premier on Friday praised a new trade agreement with the United States as the “best tariff deal” granted to countries with trade surpluses, while China condemned the accord.

The deal reduces U.S. tariffs on Taiwanese goods to 15% in exchange for $250 billion in new investments in the U.S. tech industry. Taiwan Premier Cho Jung-tai said the agreement matched tariffs applied to Japan, Korea, and the European Union, and underscored Taiwan’s strategic importance to the U.S.

China, which claims Taiwan as its territory, criticized the deal, with Foreign Ministry spokesperson Guo Jiakun saying it opposed agreements carrying sovereign or official connotations with Taiwan.

The U.S. Commerce Department said the pact would establish industrial parks in the U.S., boost domestic manufacturing, and drive a reshoring of the semiconductor sector. Taiwanese firms investing in the U.S., including chipmaker TSMC, will benefit from favorable tariff treatment and exemptions. TSMC announced plans to increase capital spending by nearly 40% this year, with $165 billion pledged for U.S. investments and new fabrication plants in Arizona.

Cho said tariffs for automotive and wood furniture products are set at 15% with no added fees, and some aerospace components will face no tariffs. The deal requires ratification by Taiwan’s parliament, where opposition lawmakers have raised concerns about potential impacts on the domestic semiconductor industry.

Trade analysts noted the timing is significant, as the U.S. Supreme Court is set to rule soon on the legality of Trump-era tariffs, which could affect trade leverage. Taiwan, facing persistent security threats from China, was motivated to strengthen economic and strategic ties with the United States.