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Picture Courtesy: https://www.hindustantimes.com/analysis/india-must-engage-with-taiwan-and-not-just-because-of-china/story-rxKdf4jtfgsMmgqe82XshK.html
China strongly objected to Taiwan's opening of a new Economic and Cultural Centre (TECC) in Mumbai.
China's objection to Taiwan opening a new Economic and Cultural Centre (TECC) in Mumbai is rooted in its strict "One-China Principle." This principle asserts that there is only one China, with Taiwan being an inseparable part of it, and that the People's Republic of China (PRC) is the sole legal government of China.
The TECC in Mumbai is Taiwan’s third office in India, following those in New Delhi and Chennai. These offices are part of Taiwan’s strategy to strengthen economic and cultural ties with India.
The center promote cultural exchanges and provide visa services, acting like embassies without formal diplomatic recognition, they promote Taiwanese culture and strengthen economic partnerships.
With Taiwan being a major hub for technology and semiconductors, the TECC aims to enhance trade and investment between the two regions. Bilateral trade between Taiwan and India has grown significantly, from $2 billion in 2006 to $8.9 billion in 2021.
Taiwan’s "New Southbound Policy" aims to reduce its economic dependence on China by strengthening ties with South and Southeast Asian countries, including India.
China views Taiwan's international engagements as attempts to assert its independence. By opening a TECC, Taiwan is seen as enhancing its official presence abroad, which challenges China’s claim over Taiwan.
China has reminded India of its commitment to the One-China Principle, which it claims is essential for stable Sino-Indian relations. China believes that any official interaction between Taiwan and India undermines this principle.
The roots of this tension go back to the Chinese Civil War in the early 20th century. After the war, Chiang Kai-shek’s Nationalists retreated to Taiwan, claiming it as the legitimate government of China, while the Communists established the People's Republic of China (PRC). China always argues that any recognition of Taiwan is a challenge for its sovereignty.
Taiwan is located in the East China Sea, between China, Japan, and the Philippines. This strategic location makes Taiwan an important player in the East and Southeast Asia region.
The Taiwan Strait is one of the busiest waterways in the world, it is essential for regional trade, therefore, any conflict in this area could disrupt global trade routes; especially affecting Southeast Asian economies.
Political Status
Since 1949, after the Chinese Civil War, Taiwan has functioned independently. The Nationalist Party (Kuomintang) retreated to Taiwan after being defeated by the Communist Party of China.
Taiwan operates as a separate nation with its own government, president, military, and constitution. However, China views Taiwan as a breakaway province and insists on the “One-China Policy.”
Only 11 countries officially recognize Taiwan as a sovereign state, including the United States, which acknowledges the One-China Policy but maintains unofficial relations with Taiwan.
Despite limited official recognition, many countries are concerned about potential conflict between China and Taiwan due to its implications for global trade, especially in the electronics industry where Taiwan is a key player.
The conflict traces back to the Chinese Civil War (1945-1949). After the Communist Party, led by Mao Zedong, won the war, the defeated Nationalist Party established a separate government in Taiwan. China asserts that there is only one China and Taiwan is part of it. Taiwan, however, operates independently with its own government and military.
China frequently conducts military drills near Taiwan, showing its military capabilities and signaling its willingness to use force if necessary. Taiwan seeks international recognition and support, however, China pressures countries and international organizations to diplomatically isolate Taiwan.
India does not officially recognize Taiwan as a separate country due to its commitment to the One-China Policy, however, India maintains informal relations with Taiwan. Growing tensions between India and China, especially after the 2020 Galwan Valley clashes, have led India to reconsider its strategic partnerships, including with Taiwan.
Trade between India and Taiwan has been growing. In 2023, total bilateral trade was $8.224 billion, with Taiwan exporting $6.013 billion and India importing $2.211 billion. Taiwanese companies have invested in various sectors in India, including IT, electronics, and manufacturing.
India’s commitment to the One-China Policy limits the scope of its official engagement with Taiwan. Any clear support for Taiwan could provoke a strong reaction from China. India must balance its relations with both China and Taiwan to avoid regional conflict and maintain stability.
Strengthening economic ties with Taiwan could provide India the technical advancements and investment opportunities, collaborating on regional security issues can help India to counterbalance China’s growing influence in the Indo-Pacific region.
The Indian approach towards the China-Taiwan issue needs to be a balance of maintaining its commitment to the One-China Policy while exploring economic and strategic opportunities with Taiwan.
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PRACTICE QUESTION Q.Critically analyze India’s policy of strategic ambiguity towards Taiwan. What are the potential benefits and risks of this approach in the context of India’s broader geopolitical strategy in the Indo-Pacific region? (250 words) |
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