Pelosi's Taiwan visit and worry for the World
US House of Representatives Speaker Nancy Pelosi
has finally reached Taiwan. For some days, China had warned The USA about this
possible visit of Pelosi. A large number of weapons were deployed in and around
the Taiwan Strait. Chinese warplanes had encroached on Taiwan's airspace.
Despite all this pressure, Pelosi's plane landed in Taipei from Malaysia.
China's Foreign Ministry had threatened that Pelosi's visit would have serious
political consequences. Still, the visit by a representative of the USA is a very
different aspect of the relationship between the USA and China, as well as for
the future of the Cold War.
The Sensitive Issue for China
China is very sensitive on the issue of Taiwan, and the reason for this has been since the communist revolution there. The Communist revolution took place in China under the leadership of Mao and the Communists came to power in 1949. The then ruler of China, Chang Kai Shek, fled to the island of Taiwan and established his government there. Chiang Kai-shek was the president of Taiwan until 1975.
China never recognized its government. China's official position is that Taiwan is a province of China. On the contrary, Taiwan says that it was never a part of Communist China. Only 13 countries, mainly including countries in Latin America and the Pacific Ocean, recognized Taiwan. No major country, including the US, has recognized Taiwan. So, Taiwan has established its presence in the world in different ways. That is why their athletes are landing in the Olympics under the name of Chinese Taipei. Many countries have developed informal relations with Taiwan. Therefore, China's strong insistence on the One China Policy is seen.
The USA's Partner Taiwan
Although the USA has not recognized Taiwan, it
has been shown regularly that Taiwan is an important partner for the USA. The
USA broke diplomatic relations with Taiwan and recognized China in 1979. So,
relations with Taiwan were established under the Taiwan Relations Act of 1980.
The relationship between the two systems is maintained through the American
Institute in Taiwan (AIT). These bilateral relations are continuously
strengthening. Both shared values, Trade and economic ties, and increased
people-to-people exchanges that strengthen these friendships. The USA has
always supported Taiwan as an international backer and arms supplier. Democracy
and free culture are the core values of their relationship. Therefore, the
politics between the USA and China on the issue of Taiwan can be regarded as a
politics of symbolic and ideological conflict. The USA is trying to show that
it supports democratic thinking and a free system. Supporting Taiwan is a
direct challenge to China's One China policy. On the other side, China's
takeover of Taiwan is a threat to the USA's global credibility.
Strong Financial Ties
The economic relations between the USA and China are extensive, and the trade between the two countries is worth billions of dollars. In that comparison, Taiwan with a population of 24 million has many limitations. Still, Taiwan's importance to the USA for trade and investment is undeniable. Taiwan's GDP is also up to 600 billion USD. Taiwan is one of the largest hub for technology, especially semiconductor manufacturing. Besides, bilateral partnerships are increasing in the areas of trade and investment, health, supply chain, science and technology, and education. Taiwan is the USA's eighth-largest trading partner, and the USA is Taiwan's second-largest trading partner.
The USA's exports of goods and services to Taiwan supported an estimated 188,000 American jobs in 2019. Taiwanese cumulative investment in the United States was nearly 137 billion USD in 2020. Taiwan's direct investment in the United States is led by manufacturing, wholesale trade, and depository institutions. These investments directly support an estimated 21,000 jobs in the United States and 1.5 billion USD in USA exports. The USA goods and services trade with Taiwan totalled an estimated 105.9 billion USD in 2020. Exports were 39.1 billion USD; imports were 66.7 billion USD.
Taiwan is Important for China
On the one hand, Taiwan is important to Western
countries, but Taiwan is also important to China. There is a historical reason
for that. At the same time, Taiwan's GDP is 600 billion USD. They have trade
with all major countries in the field of technology. After taking over Taiwan,
China's economic monopoly will only increase. Also, possession of Taiwan is
strategically important for China. After taking over Taiwan, China will have
undisputed dominance over the East China Sea. The sea route passing through
this area will come under China's influence. Taiwan's military on the other
hand is not well equipped in comparison. Over the years, the Navy and the Air
Force have undergone reforms. However, it has limitations. Still, China is
preparing for the possibility that the US and Japan will intervene if there is
a conflict over Taiwan.
Anti-China Pelosi
A visit to Taiwan by an important person in the
US system has naturally caused a reaction from China. Before this 25 years ago
i.e. Back in 1997, then-House Speaker Newt Gingrich of the Republican Party
visited Taiwan. Nancy Pelosi is also a bitter opponent of China. She has visited
China many times. However, he has always opposed the violation of human rights
in China. Even in these visits, he has always raised his voice about these
violations. China fears that the US leaders' visit will encourage Taiwan's
democratic citizens.
China's threats
Fear of nuclear war
The war between Russia and Ukraine in Europe has had a major impact on the world order. Now, the United Nations fears that such meetings to test each other's strength could spark a nuclear war. Still, the South China Sea, Sino-Japanese relations and North Korea's nuclear program continue to fuel tensions in this region of the Pacific Ocean as well. Not having the same explosion is what matters to the world.
India Should be Aware
Relations between India and Taiwan have grown rapidly over the years. At the same time, it is also important for India to enhance its presence in the rapidly developing Indo-Pacific region and limit China's interference. Although India did not recognize Taiwan, it began to implement a Look East Policy in the 1990s. India-Taipei Association was established in 1995. Through it, the process of business, tourism and cultural exchange between the two countries is being implemented. Visa approval is also done through this. From there, the relationship between India and Taiwan developed even faster. Trade between the two countries increased from 2 billion to 7 billion USD between 2006 and 2020. India's principal exports during this period were fish, sesamum seeds, cotton, flours meals, oil cake, flours and meals of soya beans, other residues of rape or colza seeds etc. Metal-cutting machine tools, machine tool parts, and forging equipment are among the major machinery shipped to India. Foreign direct investment from Taiwan to India has increased to 1.5 billion USD. More than 100 Taiwanese companies are operating in India. The two countries signed a free trade agreement last year, a sign of strengthening bilateral trade ties. There is a desire to develop India as a semiconductor manufacturing hub. This can combine Taiwan's investment and technology with India's natural resources. The influence of the 'Quad' is also important in the bilateral relations between India and Taiwan. India, the USA, Japan and Australia formed the Quad. The main objective of this group was to curb China's influence. So far the importance of this group has not been revealed. Therefore, while the importance of this group is growing, it is also important for India to maintain its interests in the ASEAN countries, East Asia and the Indo-Pacific region. Therefore, India also has to keep an eye on Taiwan or any other developments in this region.
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