Canada and Taiwan agreed on Tuesday to start formal negotiations on a bilateral foreign investment deal and deepen their Indo-Pacific partnership. Taiwan has been looking to expand relations across the Western world, such as Canada, as it faces growing military and political pressure from China to give in to Beijing’s sovereignty claims over the island. Additional trade and investment deals are a part of this effort. The Taiwanese foreign ministry in a statement called it “positive progress” and said Taipei would work to complete the negotiations as soon as possible.

Canada announced its long awaited Indo-Pacific strategy late last year, including a C$2.3 billion military and cybersecurity spending to counter what it called a “disruptive” China.

Beijing, which recognizes the self-governed island as part of its own territory despite Taiwan’s strong rejection, has strained relations with Ottawa. Beijing views self-governing Taiwan as its own territory and has sour relations with Canada.

Taiwan, like China, has applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Since then, it has been lobbying existing members, like Canada, to back its application, saying Taipei supports transparency and rule of law, while running its own economy and doing business with other countries.

Tensions between China and Canada had risen in late 2018 when Canada detained a Huawei executive, followed by the arrest of two Canadians in China on spying charges. All three were freed in 2021 but relations remain strained.