TENSIONS IN TAIWAN STRAIT – INTERNATIONAL

News: China launches military drills around Taiwan as ‘stern warning’

 

What's in the news?

       The Chinese military launched drills around Taiwan as a “stern warning” over what it called collusion between “separatists and foreign forces,” its Defence Ministry said, days after the island's vice president stopped over in the United States.

 

China-Taiwan Relations:

       Taiwan is an island territory across the Taiwan Strait, located off the coast of mainland China.

       The ruling Kuomintang (Nationalist) government of China fled to Taiwan after being defeated by the communist forces in the Chinese civil war of 1945-1949.

       Following the split of China and Taiwan in the civil war, the Republic of China (ROC) government was relocated to Taiwan. On the other hand, the Communist Party of China (CPC) established the People’s Republic of China (PRC) in the mainland.

       Since then, the PRC observes Taiwan as a traitor province and awaits reintegration with Taiwan, if possible, by peaceful means.

       PRC allied itself with the Union of Soviet Socialist Republics (USSR) and ROC with the US in the cold war further straining the China-Taiwan relations.

       Currently, only 13 countries recognise Taiwan as a sovereign country.

 

Significance of Taiwan to the world:

       Much of the world’s global supply chain of semiconductors is reliant on Taiwan.

       Further, its contract manufacturers together accounted for more than 60% of total global semiconductor revenue in 2021.

 

Relevance to China:

Economic cooperation:

       China and Taiwan’s economies are inextricably linked.

       China is Taiwan’s biggest export partner, with an export value of 515 billion dollars from 2017 to 2022, more than double the US, which was the next biggest partner.

 

Geographic Aspect:

       Taiwan is much closer to mainland China than the other islands, and has been claimed by Beijing since Nationalists were driven there during the Chinese revolution in 1949.

 

Relevance to the United States:

       Taiwan anchors a chain of islands which includes a list of US-friendly territories that the US is planning to use as a place of leverage for countering China’s expansionist plans.

       The US does not have official diplomatic ties with Taiwan but is bound by US law (Taiwan Relations Act, 1979) to provide the island with the means to defend itself.

       It is by far the largest arms dealer for Taiwan and follows a ‘strategic ambiguity’

 

Stand of India on the Taiwan Issue:

India-Taiwan Ties:

Backdrop:

       As a part of India’s Act East Foreign Policy, India has sought to cultivate extensive ties with Taiwan in trade and investment as well as developing co-operation in science & technology, environment issues and people-to-people exchange.

       India and Taiwan do not have formal diplomatic relations but since 1995, both sides have maintained representative offices in each other’s capitals that function as de facto embassies.

       Since 1949, India has accepted the One China policy that accepts Taiwan and Tibet as part of China.

       Even though India has stopped mentioning its adherence to One China policy in joint statements and official documents since 2010, its engagement with Taiwan is still restricted due to the framework of ties with China.

       India and other major powers must establish a red line for any Chinese attempt to annex Taiwan militarily. After all, the Taiwan issue is not simply a moral one about enabling a totalitarian state to destroy a successful democracy or a matter of international ethics about adhering to the concept of peaceful resolution of disputes.

       While following the One-China policy, India has an office in Taipei for diplomatic functions - India-Taipei Association (ITA) is headed by a senior diplomat. Taiwan has the Taipei Economic and Cultural Center (TECC) in New Delhi. Both were established in 1995.

       Their ties focus on commerce, culture and education. Now in their third decade, these have been deliberately kept low-profile, owing to China’s sensitivities. For example, parliamentary delegation visits and legislature-level dialogues have stopped since 2017, around the time the India-China border standoff happened in Doklam.

 

Bilateral relations:

The bilateral relations between India and Taiwan have improved since the 1990s, despite both nations not maintaining official diplomatic relations.

 

Commercial ties:

Both governments have launched efforts to significantly expand bilateral trade and investment, especially in the fields of information technology (IT), energy, telecommunications and electronics.

 

Cultural exchanges:

Buddhism is the most widely practiced religion in Taiwan, usually alongside elements of Daoism, and Bollywood films have in recent years gained a reasonably popular following, along with other aspects of Indian culture such as yoga, cuisine and Indian dance.

 

Trade:

Taiwan’s relations with India have increased in breadth spanning trade, research and academia, as well as depth trade ties, which amounted to $7.5 billion in 2019, up from $1 billion in 2000.

 

Taipei Economic and Cultural Center in India (TECC):

       The Taiwanese government has a representative office namely the Taipei Economic and Cultural Center in India (TECC) which oversees the collaboration on different fronts like education, tourism, culture, the media, and economic development.

       Taiwan’s increased investments have occurred in the face of cultural challenges, bureaucratic hurdles, and pressure on India from domestic producers.

 

Free trade Agreement:

India has suggested the possibility of a free trade agreement with Taiwan although this decision is not without precedent as Taiwan maintains economic cooperation agreements (ECAs) with New Zealand and Singapore, both unofficial relationships.

 

Implications of the rising tensions for India:

       With India facing its own problems with China on the LAC, there have been suggestions that it should review its One China Policy.

       It has in any case long stopped reiterating this officially and uses not just the Tibet card, but also develops more robust relations with Taiwan to send a message to China.

       India and Taiwan currently maintain “trade and cultural exchange” offices in each other’s capitals.