Taiwan looks to improve ties with India

KV Prasad in Taiwan 

Over two decades after India and Taiwan began engaging with one another, the new Democratic Progressive Party government of President Tsai Ing-wen is working to roll out its initiative — South-Bound Policy — which includes greater interaction with 18 countries, including 10 in Southeast Asia and India.

The end of Cold War in the early 1990s saw India easing travel restriction to the country and preferred a working trade and cultural relationship. New Delhi does not have diplomatic ties with Taiwan as it recognises the ‘one-China’ policy. President Tsai won elections this January, promising a policy different from the China-oriented approach of her predecessor Ma Ying-jeou of Koumintang or Nationalist Party. Since assuming office as the first female President in May, she has been working to take steps to set future course for the benefit of 23 million people. As in case of most democracies, her popularity is said to be sliding since the 56 per cent popular vote gave her party 68 of the 113 seats in the national assembly. 

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Perhaps aligning with India’s Act East Policy, the Tsai administration wants to build upon trade and economic ties with New Delhi, a country that is in the middle of its plans. “India is very important and the South Bound Policy focuses on 18 countries, including 10 in South East Asia, six in Asia, Australia and New Zealand... India possesses strong influence in international sphere and we need to earn India’s friendship… we need friends…’’ John Chen Chung Deng, a Minister without portfolio tasked with trade negotiations, told a group of visiting Indian journalists.

Bilateral trade grew over the past decade and a half from US $1.19 billion in 2001 to $5 billion last year with Indian exports standing at $3billion and imports at $2billion in 2015. Both have a number of agreements, including double taxation avoidance agreement, agriculture and air transportation. Besides, there are over 1,000 Indian students pursuing higher education in a place that boasts of having fine institutions, including some among top internationally ranked universities. Then there are some 2,000-odd professionals from the field of information technology. Taiwan, which is strong in hardware, hopes to work closely with software experts that India offers to the world.

Minister Chen Chung Deng is hopeful that domestic companies would work with Indian firms to take forward the “Make in India” campaign since manufacturing contributed from 25 to 30 per cent to its economy.

The bottom line of the new policy appears to have a sense of community between Taiwan and countries in Southeast Asia and Asia without appearing to tread on the toes of China across the straits. Yet, some strain in the relationship is developing probably on account of DPP’s preference for a separate identity and status. 

(To be concluded)