Indo-Taiwanese relations

The bilateral relations between the Republic of India and Taiwan (officially the Republic of China) have improved since the 1990s despite both nations not maintaining official diplomatic relations, [http://www.ficci.com/international/countries/taiwan/taiwan-commercialrelations.htm India-Taiwan Commercial Relations] ] [http://www.atimes.com/atimes/China_Business/HB15Cb02.html For Taiwan, India's in the slightly-less-hard basket] ] [http://www.ipcs.org/whatsNewArticle1.jsp?action=showView&kValue=2338&status=article&mod=b India-Taiwan Relations: In Delicate Minuet] ] as India remains supportive of the "One China" policy and recognises only the People's Republic of China (in mainland China) and not the Republic of China's contention of being the legitimate government of territorial China - a conflict that emerged after the Chinese Civil War (1945-49). However, India has expanded economic and strategic cooperation with Taiwan. [http://www.ipcs.org/whatsNewArticle1.jsp?action=showView&kValue=2338&status=article&mod=b India-Taiwan Relations: In Delicate Minuet] ] [http://www.ficci.com/international/countries/taiwan/taiwan-commercialrelations.htm India-Taiwan Commercial Relations] ]

Background

India recognised the People's Republic of China on April 1, 1950 and was supportive of its stand that it was the only state that could be recognised as "China" and that the island of Taiwan was a part of Chinese territory. India was one of the key supporters of the People's Republic of China's bid to join the United Nations and replace the Republic of China to fill the seat for China in the U.N. Security Council. [http://www.atimes.com/atimes/China_Business/HB15Cb02.html For Taiwan, India's in the slightly-less-hard basket] ] Despite the Sino-Indian War of 1962 and the consequent strategic rivalry between India and the People's Republic of China, India has not changed its stance on the "One China" issue and supports the reunification of Taiwan with mainland China.

Development of bilateral relations

Owing to the strategic rivalry and tenuous relations between the People's Republic of China and India since the 1962 war, India has slowly sought to develop better commercial and strategic cooperation with Taiwan even while ruling out the possibility of establishing diplomatic relations. Taiwan has also viewed India's rising geopolitical standing as a potential counter-balance to China's dominance in the region. [http://www.c3sindia.org/taiwan/98/taiwan-india-new-friends/ Taiwan-India: New Friends?] ] As a part of its "Look East" foreign policy, India has sought to cultivate extensive ties with Taiwan in trade as well as working together over weapons of mass destruction issues, environment and fighting terrorism. [http://www.c3sindia.org/taiwan/98/taiwan-india-new-friends/ Taiwan-India: New Friends?] ] Both sides have aimed to develop ties to counteract Chinese rivalry with both nations. [http://www.c3sindia.org/taiwan/98/taiwan-india-new-friends/ Taiwan-India: New Friends?] ] The India-Taipei Association (ITA) Office has been established in Taipei since 1995 to promote non-governmental interactions between India and Taiwan, and to facilitate business, tourism, cultural and people-to-people exchanges. [http://www.ficci.com/international/countries/taiwan/taiwan-commercialrelations.htm India-Taiwan Commercial Relations] ] The India-Taipei Association has also been authorised to provide all consular and passport services. In 2002, India became the 28th nation to sign the Investment Protection Agreement with Taiwan and in 2006, both nations established the Taiwan-India Cooperation Council. [http://www.c3sindia.org/taiwan/98/taiwan-india-new-friends/ Taiwan-India: New Friends?] ] [http://www.atimes.com/atimes/China_Business/HB15Cb02.html For Taiwan, India's in the slightly-less-hard basket] ] Furthermore, Taiwan promotes trade with India as a means to reduce the extent of their economic dependence with China. [http://www.ipcs.org/whatsNewArticle1.jsp?action=showView&kValue=2338&status=article&mod=b India-Taiwan Relations: In Delicate Minuet] ] In 2007, Ma Ying-jeou, the leader of the Kuomingtang, Taiwan's largest political party supportive of reunification, and a major candidate in the 2008 presidential elections made an unofficial visit to India. [http://www.ipcs.org/whatsNewArticle1.jsp?action=showView&kValue=2338&status=article&mod=b India-Taiwan Relations: In Delicate Minuet] ] [http://www.c3sindia.org/taiwan/98/taiwan-india-new-friends/ Taiwan-India: New Friends?] ]

Commercial ties

Both governments have launched efforts to significantly expand bilateral trade and investment, especially in the fields of information technology (IT), energy, telecommunications and electronics. [http://www.atimes.com/atimes/China_Business/HB15Cb02.html For Taiwan, India's in the slightly-less-hard basket] ] Taiwan's Ministry of Economic Affairs and Bureau of Foreign Trade designated Year 2004 as "Focus India" year, organizing several trade and investment delegations to India. [http://www.ficci.com/international/countries/taiwan/taiwan-commercialrelations.htm India-Taiwan Commercial Relations] ] In a major deal in 2006, Taiwan's state-run Chinese Petroleum Corporation announced it would buy 26% of India's Nagarjuna Oil Corp Ltd. [http://www.atimes.com/atimes/China_Business/HB15Cb02.html For Taiwan, India's in the slightly-less-hard basket] ] Major Indian exports to Taiwan include metals, cotton yarn, chemicals, granite, iron ore and diamonds. Major Taiwanese exports to India include cellular phones, integrated circuits and other electronic products. [http://www.ficci.com/international/countries/taiwan/taiwan-commercialrelations.htm India-Taiwan Commercial Relations] ] In 2005, bilateral trade stood at USD 2.26 billion and both nations set targets to expand bilateral trade to USD 7 billion by 2007. [http://www.atimes.com/atimes/China_Business/HB15Cb02.html For Taiwan, India's in the slightly-less-hard basket] ] Growth in trade has been affected by cultural and linguistic barriers and reticence on part of both Taiwanese and Indian businesses. [http://www.atimes.com/atimes/China_Business/HB15Cb02.html For Taiwan, India's in the slightly-less-hard basket] ]

Contentious issues

Although territorially restricted to the island of Taiwan, the Kuomingtang, Taiwan's largest political party supportive of reunification, has maintained elements of policies it held during its rule on mainland China prior to 1949, including claiming the territory of the Indian state of Arunachal Pradesh. [http://www.ipcs.org/whatsNewArticle1.jsp?action=showView&kValue=2338&status=article&mod=b India-Taiwan Relations: In Delicate Minuet] ] [http://www.c3sindia.org/taiwan/98/taiwan-india-new-friends/ Taiwan-India: New Friends?] ] In 2007, Taiwan controversially rejected a visa to an Indian citizen from the state of Sikkim, stating that the applicant looked "like ethnic Chinese or Tibetans," based on its worry of the influx of illegal ethnic Chinese into the island. [http://www.ipcs.org/whatsNewArticle1.jsp?action=showView&kValue=2338&status=article&mod=b India-Taiwan Relations: In Delicate Minuet] ]

References