Recently, reports emerged that India and Taiwan are working towards finalising a trade deal. However, there has been no official confirmation about the progress of the negotiations from either side.
On Tuesday, China responded to the reports warning India to approach its partnership with Taiwan “prudently and properly.” A statement by China’s Foreign Ministry spokesperson Zhao Lijian read: “The ‘One-China principle’ is a universal consensus of the international community, including India … It is also the political basis for China to develop ties with other countries. So, we firmly oppose any official exchanged between countries having diplomatic ties with China and Taiwan or signing any official documents. The Indian side should remain committed to the ‘One-China principle’.”
This controversy closely follows an objection raised by the Chinese embassy in New Delhi with the Ministry of External Affairs (MEA) regarding a display of posters wishing Taiwan “Happy National Day.” The posters were put up across the capital by Tajinder Pal Singh Bagga, spokesperson for the ruling Bhartiya Janata Party. In response, the MEA said, “There is free media in India, that reports on issues that they see fit.”
Beijing has also expressed its concern about the decision to include Australia in the Malabar Naval Exercise, which was originally attended by India, Japan and the United States. Zhao said, “We have taken note of this development. We always believe that military cooperation between countries should be conducive to regional peace and stability.”
Bolstering the India-Taiwan partnership is in consonance with India’s Act East Policy and Taiwan’s New Southbound Policy. According to the former, India seeks to boost economic, strategic, and diplomatic partnerships with countries in Southeast Asia and in the Asia-Pacific region. Similarly, the latter aims to secure cooperation with 18 countries in Southeast Asia, South Asia, and Australasia. Friendship with Taipei is also particularly crucial for New Delhi as it seeks to replace Chinese players in its market. Taiwan, which is known for its manufacturing resources in science and technology, will help India achieve this.
In 2018, India and Taiwan entered into two bilateral agreements, which were focused on boosting trade and investment between the two sides. India and Taiwan have also signed the 2002 Bilateral Investment Agreement, which is aimed at protecting Taiwanese investments in India and safeguarding the rights of investors. Despite the absence of formal diplomatic relations, these agreements bolstered the trade partnership between the two countries, making India Taiwan’s 16th largest trade partner in 2018. The documents have also facilitated cross-border movement by streamlining and simplifying border processes.
India, Taiwan Work to Finalise Trade Deal, China Voices Strong Opposition
On Tuesday, China responded to the reports warning India to approach its partnership with Taiwan “prudently and properly.”
October 22, 2020
Liu Shih-chung, vice-chairman of Taiwan External Trade Development Council, and Tien Chung-kwang, representative of the Taipei Economic and Cultural Centre in India. SOURCE: SCMP