In a recent news, India has received assistance from Taiwan in its fight against the Covid-19 pandemic. The aid includes oxygen concentrators and cylinders. This assistance has brought into limelight the growing engagement between India and Taiwan. It is noteworthy that this is happening in the wake of increasing tensions between India and China along the Line of Actual Control (LAC). Further, China’s growing aggression in the region, which includes repeated violations of Taiwan’s airspace, has heightened the importance of India-Taiwan relations.
Geopolitical Status of Taiwan
Taiwan, officially known as the Republic of China (ROC), is an island located off the southern coast of China. Since 1949, it has been governed separately from mainland China and has its own democratically elected government. With a population of twenty-three million, Taiwan is the most populous state not in the United Nations (UN) and also the largest economy outside the UN. Despite China’s claim on Taiwan as a province of its country, Taiwan maintains a distinct political identity, with its leaders having different views on its status and relations with mainland China.
Taiwan’s Economy
Taiwan ranks as Asia’s 5th largest economy. The island country is globally recognized for chip manufacturing and is the second-largest manufacturer of IT hardware. Despite its economic prowess, Taiwan has yet to gain full international recognition due to political complexities, particularly the ‘One-China Policy’.
The ‘One China Policy’ Explained
The ‘One-China policy’ refers to the diplomatic recognition of the belief that there is only one Chinese government. Countries seeking diplomatic ties with the People’s Republic of China (PRC, Mainland China) are needed to cease official relations with Taiwan (ROC) and vice versa.
India-Taiwan Relations
India and Taiwan may not share formal diplomatic ties, but since 1995, they have had representative offices in each other’s capitals functioning much like embassies. Despite acknowledging the ‘one-China policy’, India’s economic relations with Taiwan have grown significantly over the years, reaching a peak of USD 7.5 billion in 2019 from just USD 1 billion in 2000. Besides, there are currently over 200 Taiwanese companies operating in India across multiple sectors.
Hurdles to India-Taiwan Relations
One key challenge to India-Taiwan bilateral relationship is the ‘One China policy’. While about 15 countries worldwide recognize Taiwan as an independent state, India isn’t among these countries. There are also other factors, such as cultural differences, bureaucratic hurdles, and domestic pressure that pose as obstacles to Taiwan’s increased investments in India.
Potential for Increasing Ties with Taiwan
Taiwan holds a critical geographical position in the Indo-Pacific region. As India views the Indo-Pacific region inclusively, it must foster participation from Taiwan and other countries sharing similar ideologies. Furthermore, Taiwan’s global leadership in semiconductor and electronics manufacturing can greatly boost India’s ‘Make in India’, ‘Digital India’ and ‘Smart Cities’ campaigns.
Moving Forward
As vibrant democracies, India and Taiwan can strengthen their commitment to the rule of law and good governance through increased parliamentary interactions and visits. The aim is not to use ties with Taiwan as a countermeasure against China but to build a strong India-Taiwan relationship independently from India-China relations. In conclusion, as Taiwan is extending its hand towards India, India should match this gesture and respond positively.
