New Delhi: Amidst the reported buzz in favour of India formalising trade ties with Taiwan, China’s word of caution, on Tuesday, that New Delhi should abide by the “one China” policy has rung clear.
On Tuesday, Bloomberg had reported that there was “growing support” in the Indian government to formally start talks for a trade deal with Taiwan. This, of course, is in the backdrop of the deterioration of ties with China over the ongoing stand-off at the border in eastern Ladakh.
India and Taiwan do not have direct diplomatic relations with each other, but have trade offices at each other’s capitals. Like most countries, India maintains commercial ties with Taiwan.
According to the news agency, Taiwan has sought a trade deal with India for several years, but the Indian government had been reluctant to take this forward as it would provoke Chinese sensitivities when the act was registered with the World Trade Organisation.
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Quoting an un-named senior Indian government official, Bloomberg reported that the over the last few months, the China hawks who want trade talks with Taiwan have gotten an upper hand. “A trade deal with Taiwan would help India’s goal of seeking greater investment in technology and electronics,” the official said, adding that it is “unclear as to when a final decision would be made on whether to start talks”.
The Chinese foreign ministry was predictably critical.
“There is only one China and Taiwan is an inalienable part of China’s territory. The one-China principle is the common consensus of the international community, including India, and also serves as the political foundation for China to develop relations with any other country,” said foreign ministry spokesperson Zhao Lijian at the daily briefing on Tuesday.
He added that China was “firmly opposed to any official exchanges of any form and the signing of any agreement of official nature between Taiwan and any country having diplomatic relations with China”.
“The Indian side should earnestly abide by the one-China principle and handle the Taiwan question prudently and properly,” said Zhao.
In 2018, India and Taiwan signed an updated bilateral investment treaty. Trade has grown substantially from $1 billion in in 2000 to $7.5 billion in 2019.
According to Reuters, three top Taiwan firms, Foxconn Technology group, Wistron Group and Pegatron Corp – all of them top contract manufacturers for Apple – were approved for investment plans of upto $900 million (roughly Rs. 6,630 crores) in India in the next five years.
Earlier this month, Modi’s government gave approval to firms including Taiwan’s Foxconn Technology Group, Wistron Corp and Pegatron Corp as he looks to attract investment worth more than Rs 10.5 lakh crore ($143 billion) for smartphone production over five years.
Indian commerce ministry spokesman Yogesh Baweja did not immediately respond to a request seeking comment. Taiwan’s top trade negotiator, John Deng, also did not immediately respond to emails seeking comment.
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Any formal talks with India would amount to a big win for Taiwan, which has struggled to begin trade negotiations with most major economies due to pressure from China. Like most countries, India does not formally recognise Taiwan, with the two governments maintaining unofficial diplomatic missions in the form of “representative offices.”
India and Taiwan in 2018 signed an updated bilateral investment agreement in a bid to further expand economic ties. Trade between them grew 18% to $7.2 billion in 2019, according to India’s department of commerce.
Taiwan’s profile in India has increased as the worst India-China military stand-off shows no sign of resolution.
There had been no official greetings from India on Taiwan’s national day on October 10, but the spokesperson of BJP’s Delhi unit put up posters with Taiwanese flag outside on the road near Chinese embassy. The civic body took them down.
Taiwan’s President Tsai Ing-wen has mentioned India’s friction with China in her national day speech. She also thanks Indians for sending greetings and tweeted a number of post to showcase her affinity with India, with photographs of her visit to Taj Mahal and love for Indian food.