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admin2 said:
I've added parenting to update.xml although I'm not 100% sure if it works.
You can do "parent:12345" in any tag input (create, update). I'm not sure if there's a way to use the update.xml API to do this without querying the current tags first, though (overwrites all tags too, so you have to specify them all).

I don't know if this is new. Works in tag scripts, too, to reparent lots of posts.