Taiwan to Establish Representative Office in Mumbai, Boosting India-Taiwan Ties: Taiwan has announced the establishment of its third representative office in India, this time in Mumbai. Taiwan has not grown its presence in the country in over a decade. The establishment of the Taiwan Economic and Cultural Center (TECC) in Mumbai aims to facilitate trade, investment, and provide various services to Taiwanese nationals and Indian businesspeople and tourists. This development signifies a big step towards improving commercial ties and boosting relations between India and Taiwan.
Daily Current Affairs Quiz: July 2023
Historical Background
Due to India’s adherence to the One-China policy, India and Taiwan do not maintain formal diplomatic connections. However, in 1995, the two countries created the India-Taipei Association (ITA) in Taiwan and the Taipei Economic and Cultural Centre (TECC) in New Delhi, both of which functioned as de facto embassies for both countries. In 2012, Taiwan further expanded its presence by establishing the TECC in Chennai, which became a thriving hub for Taiwanese firms.
Expansion of Taiwan’s Presence
The decision to open a TECC in Mumbai holds its own strong rationale and is not solely linked to the current downturn in India-China relations. Ashok Kantha, former Indian Ambassador to China and Director of the Institute of Chinese Studies, emphasised India and Taiwan’s critical mass and strategic interest in the context of emerging global and regional dynamics. Mumbai, as a major economic center in western India, presents opportunities for mutually beneficial trade and investment.
No Government-to-Government Engagement
The previous openings of representative offices in 1995 and 2012 did not adversely affect India-China relations. India conveyed to China that these offices were not official diplomatic missions, and there would be no government-to-government engagement. The primary aim was on establishing trade and investment links between India and Taiwan, recognising Taiwan’s economic importance as a significant trading entity.
Geopolitical Significance
India recognizes the importance of maintaining peace and the status quo in the Taiwan Strait. Any conflict or heightened tensions in the region could have severe implications for India’s economic and national security interests. Former Foreign Secretary Vijay Gokhale highlighted the potential impact of a blockade by China on semiconductor exports to India, as Taiwan is a major producer of advanced logic chips and critical components.
