Taiwan and the United States signed the first agreement under the Joe Biden administration to create a Coast Guard Working Group to coordinate policy after China passed a law allowing its Coast Guard to open fire on foreign ships, Reuters reported.

The defacto Taiwanese ambassador to the United States, Hsiao Bi-khim, has signed an agreement in Washington, her office said in a statement. “It is our hope that with the new Coast Guard Working Group, both sides will forge a stronger partnership and jointly contribute even more to a free and open Indo-Pacific region.”

The signing ceremony was attended by U.S. Acting Assistant Secretary of State for East Asian and Pacific Affairs Sung Kim.

The American Institute in Taiwan, which deals with US relations with the island, said the United States supports “Taiwan’s meaningful participation and contributions to issues of global concern, including in maritime security and safety”.

Taiwan is upgrading its coast guard with new ships that can be recruited into naval service in the event of war.

Although the United States, like most countries, does not have formal diplomatic relations with Taiwan, it is the island's most important international sponsor and arms supplier.

In January, China passed legislation allowing its coast guard to fire on foreign ships for the first time.