India Taiwan

Taiwan and One China Policy

Taiwan, officially the Republic of China (ROC) was formed in 1949
In 1949 Chinese Communist Party armies defeated Nationalist forces (Kuomintang party) and established People’s Republic of China (Present China).
Nationalist forces fled to Taiwan resulting in the separation of Taiwan from China in 1949 and formation of ROC. Both sides said they represented all of China.
Initially, many governments including US recognised Taiwan separately. But with shift of diplomatic relation the US held One China policy.
According to One China Policy any country wishing to establish diplomatic relations with China (PRC) must acknowledge there is only ‘One China’ and sever all formal ties with Taiwan.
Taiwan is not a member of the United Nations and WHO. But is member of WTO by name Chinese Taipei (Taiwan).
179 of the 193 member states of UN do not maintain diplomatic ties with Taiwan.

India and Taiwan

Two Indian MPs, for the first time virtually attended the swearing-in ceremony of newly elected President of Taiwan.
Post-independence in 1950 India accorded diplomatic recognition to People’s Republic of China (PRC).
During Cold War, even informal ties between New Delhi and Taiwan remained remote, as Taiwan joined the US-led block and India the non-aligned movement.
1990s Indian Government reoriented India’s policy towards Taiwan in the face of India’s domestic economic crises and foreign policy challenges.
India and Taiwan set up unofficial relations in 1995 with India-Taipei Association (ITA) in Taipei (Capital of Taiwan). Taipei Economic and Cultural Centre (TECC), founded in 1995, is Taiwan government's representative office in India.
India does not have any official diplomatic relations with Taiwan and nor does it recognise Taiwan as independent country.
Strategic Prospects

The growing assertiveness of China in the region opportunity for India and Taiwan closer for their security interest
Taiwan can further consolidate its identity as an independent state and India can ensure freedom of navigation in South China Sea and further expand its oil and gas exploration
Taiwan sees important member of the Asia-Pacific region and accepted its responsibility to contribute to regional peace, stability and prosperity

Double Taxation Avoidance Agreement and the Customs Cooperation Agreement in 2011
Between 1995 and 2018, bilateral trade grew from $934 million to $7.5 billion , with Target to achieve a trading volume of US$ 10 billion by 2020.
Taiwan huge foreign reserves and expertise in hardware manufacture, construction, mines exploration, electronics, and automobiles etc. critical role in the success of the Make in India, Digital India, and Skill India initiatives
Taiwan owns the world-class bamboo charcoal technology. India can make use of its bamboo resources to produce high value-added goods.

religious tourism has great potential, considering Buddhism is the majority religion in Taiwan and India is its birth place.
India has extended e-visa privileges to those traveling from Taiwan for tourism, informal business trips, while Taiwan allows online travel authorization and 30-day visa-free stay for eligible Indian visitors
Taiwan is host to 160 accredited universities that accept hundreds of thousands of international students every year. Degrees earned in Taiwan are recognised worldwide.

China opposes any official contact between Taiwan and other countries and has asked India in the past to strictly follow ‘one-China’ policy. Closer relations with Taiwan might upset China.
Despite the economic interests, the economic exchange is still insignificant. Bilateral trade is around 1 % of total trade for both countries.
Taiwanese entrepreneurs complain about long drawn review process, longer clearances (like no single window clearance), non-availability of and one-time banking clearance to bring in capital in India etc.

India’s acceptance of “one China policy” should not deter it from seeking close security and economic ties with Taiwan
Both India and Taiwan should establish a mechanism to facilitate reciprocal high-level visits, so as to institutionalize economic cooperation through a formal special economic partnership.
Closer relationship with Taiwan helps in better understanding of China’s strategic depth

India should maintain a pragmatic approach toward Taiwan that would help it to delink its relationship with mainland China from that of Taiwan.

India’s Act East Policy (AEP) and Taiwan’s New Southbound Policy (NSP)

Taiwan’s export-oriented economy and interest in diversifying traditional targets of investment make it a natural collaborator for India under AEP.
Taiwan NSP in 2016 aims to reinvigorate and expand Taiwan’s ties with South and Southeast Asia, Australia, and New Zealand and move away from China.
While India was not central to the first two phases of Taiwan’s Go South Policy, it has now become an integral part of NSP
Recent Happenings- Taiwanese parliamentary delegation visited India in 2017, inviting criticism from China.

India-Taiwan Parliamentary Friendship Forum 2016
Taiwan-India Webinars on COVID-19 were held, in which Taiwan shared best practices, knowledge with Indian medical staff engaged in battle against COVID-19.
Taiwan also donated one million face masks to India to help protect frontline medical personnel engaged in fight against COVID-19.

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