TAIPEI, (Reuters) – Taiwan and Canada agreed to initiate talks on an investment security agreement. The announcement was made by both countries on Monday. It is part of Taiwan’s effort to improve relations with democracies as a result of rising pressure from Beijing.

Taiwan is looking for trade agreements with like-minded countries such as the United States of America and the European Union.

Taiwan, a member country of the World Trade Organization has only two significant economies with which it has free trade arrangements. China pressures countries not to interact directly with Taipei’s government.

According to Taiwan’s Cabinet, John Deng, chief trade negotiator, met with Mary Ng (Canada’s International Trade Minister) and agreed to begin “exploratory conversations” about a Foreign Investment Promotion and Protection Arrangement.

According to the cabinet statement, this was an important step in strengthening trade and economic relations.

Canada has, unlike most other countries, no diplomatic ties to Taiwan. The Canadian government said that Ng had “highlighted Taiwan” as an important trade and investment partner. Canada is expanding its trade relations and deepening its economic partnership in the Indo-Pacific.

China could be upset by the direct meeting of these two ministers. China has intensified its efforts to isolate Taiwan, as Beijing claims sovereignty.

China views democratically-governed Taiwan as part of its territory with no right to state-to-state ties, a view Taiwan’s government strongly rejects.

Canada is also a signatory to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (or CPTPP), which Taiwan and China applied for.