Amid his first visit to Taiwan, Texas Governor Greg Abbott announced on Sunday the opening of a Texas-Taiwan trade representative office in Taipei to strengthen business and economic ties between the state and island.

Taiwan-based companies have been expanding into Texas for years, specifically in the semiconductor and petrochemical industries. Totaling $21.3 billion in 2023, Taiwan is Texas’ seventh-largest trade partner, according to Abbott.

One of the notable expansions is by GlobalWafers, a Taiwan-based semiconductor silicon wafer company, which announced in 2022 plans to build a state-of-the-art silicon wafer factory in Sherman, Texas. This facility, expected to be the first of its kind in the United States in over two decades, aims to address the semiconductor supply chain issues in the U.S. by reducing the reliance on imported silicon wafers from Asia. This project is anticipated to create around 1,500 jobs and significantly bolster the state’s local economy.

During a visit to Taiwan on Sunday, Abbott announced the opening of the State of Texas Taiwan Office (STTO), making it the 23rd U.S. state to open an office in Taipei. The STTO, which will operate under Texas’ Economic Development & Tourism Office, was announced in an effort to strengthen business and economic ties between the state and island, with the Republican governor also signing a letter of intent.

Newsweek has reached out to Abbott’s office via email for comment.

“We understand, both in Texas and in the United States, the importance of a strong Taiwan for the future of the entire globe. One of the best things that we can do to strengthen Taiwan and strengthen its future is by expanding our economic ties, so that Taiwan grows even stronger economically,” Abbott said on a stage with Taiwan Minister of Economic Affairs Jyh-Huei Kuo.

In a post on X, formerly Twitter, Abbott praised the opening of the office and wrote on Sunday morning, “Taiwan President Lai welcomed our Texas delegation in Taipei. We also announced the opening of a trade representative office for the State of Texas. We do BILLIONS in trade with Taiwan. The country was very hospitable.”

According to Taiwanese President Lai Ching-te, Texas is an important trading partner as the Lone Star state is the ninth largest export market, with exports exceeding $11.5 billion in 2023.

“During this trip you will open the state of Texas-Taiwan office and sign an economic development statement of intent. I assure that the office will create new and trailblazing opportunities for an even stronger collaboration between Taiwanese and US businesses,” Lai said, according to Taiwan News.

However, the announcement comes as tensions between Taiwan and China continue to grow.

In May, Lai faced China’s largest-scale military exercises in nearly two years. It comes as a response to Lai’s inauguration speech as he asserted that “the Republic of China Taiwan is a sovereign, independent nation,” adding it is “an important link in the global chain of democracies.” While Taiwan has been independently governed since 1949, China views the island as part of its territory and hasn’t ruled out the use of force to unify the nations.

In addition, China has said it would launch a war if Taiwan were ever to officially declare independence. Lai, like his predecessor, former President Tsai Ing-wen, has maintained that there is no need to do so, as Taiwan is already an independent state.

Last week, China issued a no-sail zone warning in waters near Taiwan.

Maritime Safety Administration of China’s eastern Zhejiang province issued the navigational warning for a “military exercises” in the East China Sea from Wednesday to Friday as China’s military deployed 22 aircraft and six vessels.