EFSAS ARTICLE - Navigating Cross-Strait Waters - India-Taiwan Relations in the Indo-Pacific Era

Following the KMT’s defeat against the CCP in 1949 and the KMT’s subsequent fleeing to Taiwan, however, India formally recognized the CCP- led People's Republic of China, rather than Chiang’s Taiwan-based Republic of China, as the international representative of the Chinese people. [...] As part of this, the ISM seeks to capitalize on the central role Indian firms and Indian semiconductor engineers play in parts of the supply chain, most notably in the design of semiconductors in industry hubs such as Bangalore. [...] However, the infrastructure and regulation-related failure of the Foxconn-Vedanta joint venture indicates the extent to which structural issues in the Indian economy and the regulatory state constrain the degree to which Taiwanese firms can enter the Indian market. [...] The derisking of the Taiwanese economy is directly linked with the deterioration in cross-strait relations: as tensions ramp up, China can weaponize the dependencies of Taiwan on the Chinese market to exert pressure on Taiwan and reshape domestic policy priorities. [...] This includes the diversification of trade and economic partners to alleviate dependencies on China, cultural and educational exchanges to foster a deeper understanding and appreciation among the people of Taiwan and the target countries, the enhanced provision of humanitarian assistance and disaster relief, and collaboration in technology sectors in which key Taiwanese firms possess market-leadin.