There are going to be imperative associations in a new world order centered around the Indian context that are going to define the coming decades of this century. The India-Taiwan Association is one of them. Two democracies, one that has shown remarkable and pioneering technological promise and the other on the cusp of becoming the third largest economy in the world.
From geopolitics, global security, and trade to the complexities of modern-day foreign and domestic policy, what is the future of Taiwan, and how does it view the world situation and India’s increasing role? The Editor-in-Chief of NewsX was in conversation with Dr Joseph Wu, Minister for Foreign Affairs, Taiwan (ROC). Here are the key excerpts.
Q: We’ve done countless telecasts trying to promote the subjects of communication and collaboration between India and Taiwan, because it’s fundamentally important to where we see ourselves going in the Indian context. But there is a larger global situation in which we all have to figure out what the future is going to be. What are your views on the Russian-Ukraine conflict, the Israel-Palestine war, and the implications for peace instability, both in the Straits and Indo- Pacific at large?
A: You mentioned the dynamics in global geopolitics at this moment. The strategic situation that we see is the war in Ukraine, the conflicts in the Middle East, and also the tension in the Indo-Pacific. All point in one direction, which is the increasing tension between democracy on the one hand and terrorism on the other. If you look at the conflict and tension in different areas, we see that Russia, China and North Korea are working more closely with each other than ever. Under these circumstances, I think the democracies have no choice but to work further with each other in order to prevent authoritarianism from expanding further, and if you look at this part of the world, China has been targeting Taiwan to apply a lot of military pressure.
But other than Taiwan, China has also been threatening Japan, especially in the East China Sea. China has also been threatening the integrity of the South China Sea, especially with the Philippines. All this points in one direction, which is the expansion of authoritarian countries. Seeing how the authoritarian countries are working further with each other, we democracies, of which Taiwan is a member, and India, the largest in the world, will require all of us to work together.
Q: What is your opinion of the global situation, specifically in India, right now? The future of the next few decades is going to be centered around the Indo- Pacific. So how do you see this situation?
A: The Indo-Pacific is indeed a focal point of the international community concerning the expansionism of the PRC. I mentioned China’s ambitions over the South China Sea and the East China Sea, but if you look beyond this, China seems to have a lot of appetite for expanding itself in the Pacific. A couple of years ago, China signed a security agreement and that was a sign that China was trying to expand its presence in the Pacific to threaten other countries, especially democratic countries in the region. Just a couple of days ago, China sent police forces. Every time one of our best friends in Australia is doing a naval exercise along its coastal areas, China always sends a spy ship nearby to observe Australian naval exercises.
This is what’s happening in the Pacific. And I think that the Chinese expansion in the Indo- Pacific is beyond the top right now, I would also say that the Chinese expansion in the Indian Ocean should not escape our observation as well. China has a string of pearls strategy, setting up ports along the Indian Ocean for current or future naval activities. One of the most prominent examples is Port Hambantota in Sri Lanka. Now, the Chinese seem to be ready to use Hambantota for its military purposes. And it is just one of the examples of many places where China is trying to secure ports for naval operations in the future, and this is something that we are paying attention to.
And I’m sure that this is something that India cares quite a lot about. So if you look at the whole region, Chinese expansion is one phenomenon that democracies should care about, and other than the Indo-Pacific region, if you look at China’s influence in Africa and Latin America,. I think democracies should be wary in these aspects. China is influencing the Global South, and this is something that all democracies should watch for. But fortunately, we see India as a major player in this region, a key member of the Quad, and also working together with other democracies. And in this regard, I hope that Taiwan can work further with India. It may not be in the area of security, but economic cooperation, cultural cooperation, educational cooperation, and agricultural cooperation. All these provide wonderful opportunities for us to benefit each other, and they will pave the way for better relations between Taiwan and India.
Q: Speaking of economic collaboration, what is your assessment as you view India—now we are the fifth largest economy and the growth that India has seen in the last decade under PM Modi?
A: India has a bright future for its economy, and PM Modi also has a set of economic policies that will certainly bring India’s economy to new heights. When we observe the Indian economy, there is a new phenomenon that Taiwan is trying to catch: the declining economic status of China and gains to the Chinese economy are folding to a historical low. Taiwan’s investments in the PRC are withdrawing, and then we are investing in other countries. At the height of our economic relations with the PRC, 80% of our outbound investments went to the PRC, but right now, about 11% of Taiwan’s outbound investment is going to the PRC, and for the rest, we are targeting other markets for Taiwan’s economic outlets. For example, we are making a lot of investments in South East Asia.
Our companies are also going to Mexico and Europe, and a lot of talented companies are also going to India, and India is going to be a huge market for Taiwan’s businessmen. We also understand that the Indian leadership is targeting semiconductors as the next generation of economic production, and Taiwan happens to be a powerhouse of the semiconductor industry. and there are a lot of opportunities to work with each other, as India is at the beginning of its semiconductor production, we have been speaking with our Indian friends about how to proceed right now. We have a lot of semiconductor institutions, and we also have a lot of companies working in similar areas.
We are welcoming Indian students or engineers to come to Taiwan for higher education so that they can become the most important force in India’s future semiconductor production, especially in the area of hightech production. Right now, we have about 2,700 skilled Indian labourers and engineers working in Taiwan. We also have 500 university positions held by Indians here in Taiwan, and this is going to be the most important force to help India in the production of semiconductors. We also have companies that are interested in making investments in India, and we are helping all these industries to better themselves. I have a lot of confidence that Taiwan-India cooperation for semiconductor production is going to be very fruitful, but please remember that when we say we will send our industries to India, they also bring their equipment and materials to India.
But we are facing one difficulty, so we hope that India and Taiwan can discuss a free trade agreement so that this can reduce the cost of our industries when they move to India. But again, there is a very good prospect for India and Taiwan to work further together in the semiconductor industry and other related industries.