Taipei, Taiwan - China responded angrily to a new trade agreement that will see Taiwanese chip companies will invest at least $250 billion in the US.

Taiwan will also provide credit guarantees for at least another $250 billion in investments, the US Treasury Department said on Thursday in a statement.

Under the deal, which was concluded after months of negotiations, tariffs imposed by President Donald Trump on goods from Taiwan will drop to 15% from 20%.

Beijing swiftly slammed the announcement.

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"China consistently and resolutely opposes any agreement... signed between countries with which it has diplomatic relations and the Taiwan region of China," foreign ministry spokesperson Guo Jiakun said.

He urging the US to abide by the one-China principle, which considers Taiwan to be Chinese territory.

US Commerce Secretary Howard Lutnick said that the trade agreement would help "bring that whole supply chain to America."

"So, we're going to bring it all over so we become self-sufficient in the capacity of building semiconductors," he explained, while admitting that Taipei had no choice but to keep Trump "happy."

Taiwan's President Lai Ching-te said that, under the agreement, the US also committed to increase investment in Taiwan across key sectors, including semiconductors, artificial intelligence and biomedical technology.

Lai added that the outcome of these negotiations will foster a coordinated, mutually beneficial economic partnership between Taiwan and the US, supporting Taiwanese industries to "strengthen their domestic presence while expanding globally and reaching international markets."