China’s showcase of aggression in Galwan has been a turning point in Sino-India relations. Since then, India has showcased an unprecedented political will to tackle China. Unlike in the past, India’s solution was not war, rather to level the playing field. Ironically, India’s inspiration derived from the teachings of ancient Chinese strategician Sun Tzu. In the ‘Art of War’, Sun Tzu says that “the skilful leader subdues the enemy’s troops without any fighting.”[1]Correspondingly, India’s policy marked a significant change.
Beginning with the economic boycott of Chinese products and investment, India tried to reduce its reliance on China in toto. On a tactical front, India’s policy primarily relied on reciprocity vis-à-vis bilateral obligations. India vowed to hold-off all commitments with China, including its allegiance to the One China Policy, a matter which is critical to the existence of China per se. By doing so, India was avoiding bloodshed as well as flexing China to honour its commitments.
The One China Policy: De-Facto versus De- Jure
One China Policy has been a paradoxical issue for China. The policy asserts that there is only one China, and it is the Peoples Republic of China (PRC), and not the Republic of China (ROC) situated in Taiwan. This has been the case since the Chinese Civil War in 1949, where the Kuomintang (ROC) was defeated by the Communists and forced to retreat to the island of Taiwan. China, irrespective of actual control, affirms that it also encompasses Taiwan, and maintains an official stance.[2]Whereas, ROC states that it is the legitimate government of the free-area of Taiwan and is independent of China.[3]
India was one of the first countries to recognise the One China Policy back in 1950.[4]Earlier, India-Taiwan relations were uncommon, and on many occasions, India had reiterated the PRC view of One China Principle. However, from 1995 onwards, India had affirmed the existence of ROC as a territorial entity, and exchanged semi-diplomatic representation through trade and cultural offices. Yet, post the Galwan debacle, the reasons for India to reconsider the One China policy speaks for itself.
Chinese Conundrums: Gung-Ho, Debt-Trap Diplomacy and Kashmir
China’s armed expansion has been a major concern for India. There are two versions of Chinese aggression; combat and intimidation. Combat is not a novice threat to India. Since the War of 1962, India has faced rough and vicious hostilities from China, both in the Northern and Eastern frontiers. Comparatively, India’s primary worry is the Chinese Gunboat tactics. Chinese Navy is frequent in the Indian Ocean (String of Pearls factor), and regular developments are being sponsored by the People’s Liberation Army (PLA)along the Indian border. Instances like Doklam are just the tip of the iceberg. Upon such notions, India fears that it might fall prey to China’s very own Thucydides Trap[5]which might lead to economic and strategic fallouts.
Moreover, Chinese expansion in South Asia is critical to India’s sustenance in the region. Through attractive investments, China has swayed South Asian countries into its debt-trap and has captured its interests in the region. As speculated, China’s String of Pearls strategy, has surrounded and endangered India’s territorial integrity. Inter alia, by China making inroads in the subcontinent, India’s relevance is diminishing, which is again directly contributing to conflicts within the neighbourhood. An ideal example would be the recent border demarcation dispute with Nepal in Kalapani and Lipulekh.[6]So, while Chinese funds liquidate South Asia, India is losing its political and cultural foothold in the region.
Furthermore, China’s position on Kashmir has been divergent. On the one hand, it has been vocal against India’s claim on Kashmir.[7]On the other, China has backed Pakistan’s occupation of Kashmir, mainly to secure its marquee project- the China Pakistan Economic Corridor (CPEC).Plus, China itself is in control of Aksai Chin, a territory which belonged to Ladakh (erstwhile state of Jammu and Kashmir). These instances led India to alter its perspectives on an ambivalent China and paved the way to target political predicaments that haunted Beijing’s power citadel.
India-Taiwan Relations: Turf-to-Turf Approach
As India deconstructs the One China policy, Taiwan emerges as a strong strategic partner in the East.Taiwan’s geopolitical importance coupled with its strong economy, provides India the perfect opportunity to further its strategic imperatives in the Indo-Pacific region. The Taiwanese government, through its ‘New Southbound Policy,’[8]has also welcomed India’s commitment and cooperation in various sectors, which is a positive sign for both the states. On that note, India has a two-fold agenda in developing better relations with Taiwan; strategic and economic.
India’s strategic narratives in Taiwan are based on its geographical proximity to the Chinese mainland through the Taiwan Straits. It plans to stimulate the strategy in two ways. One, India directly promoting its Act East Policy, and fostering strategic ties and promoting cooperation with Taipei. Two, the India- US factor. The US shares friendly relations with both Taiwan and India. India can utilise this triangular relationship to intimidate China in its backyard. In apropos, India’s participation in US-led capacity building initiatives like the Malabar Exercise would be more productive, with Taiwan acting as the intermediate point for military logistics in the South China Sea.
Over the years, India-Taiwan Economic and Trade relations have grown significantly. During the previous financial year(2019-20), India-Taiwan trade stood at $ 7 billion[9], a 30 per cent hike from a trade balance ofa mere$ 1 billion in 2000. Taiwanese investment in India has witnessed a significant growth in the past decade, with a cumulative inflow of over $ 700 million.[10]Besides, with the US-China tariff war intensifying due to the Coronavirus pandemic, India is set to welcome further inflow of FDI from Taiwan due to lesser costs and a better talent pool.
Technology is another aspect that goes hand-in-hand with India-Taiwan relations. Taiwan’s economy has been dominated by its vibrant electronics industry. It is the leader in semi-conductors and accounts for an annual export of $ 3.9 billion.[11] India buys more than 80 per cent of its semi-conductor chips from Taiwan.[12]Also, India, as a result of the‘Make in India’campaign, hosts around 55[13]Taiwanese electronic companies that produce various IT products. In addition, two of Apple’s largest contract manufacturers, Foxconn[14] and Pegatron[15], both of Taiwanese origin, have setup shop in India to cater to Indian and International Markets. Thanks to Taiwan, India now has a locally produced iPhone.
From this, it can be characterised that India and Taiwan share a quid pro quo approach; the latter gets the ideal market, while the former can successfully fulfil its strategy in the Orient.
Key Takeaways: Is India’s policy in Unchartered Waters?
Noticing the Covid-19 pandemic and the global animosity against the Chinese government, India can use this opportunity to amplify its One-China stance better than ever. Due to China’s bandwagon, Taiwan has been isolated for the past seven decades. If India gradually pitches on Taiwan’s position, particularly in multilateral institutions like the UN, it will be a positive factor for Taiwan and its people. India should bat for Taiwan’s cause, at least to affirm its priorities. Howbeit, India while pursuing this angle should take care of two issues- policy and partisan divides in Taiwan.
First, India should not revoke the One China policy completely, as grave repercussions tend to follow, including further aggression from China. Rather, India should partially abrogate the commitment like the US, by furthering active defence and cultural ties with Taiwan, sans diplomatic representation. This way India can actively beta-test its policy derivative, and can drive a hard bargain against China in its own turf. Second, the opinion divides between Taiwan’s major political parties- Kuomintang (KMT) and Democratic Progressive Party (DPP),has been a major roadblock for India’s interests in the region. KMT supports better relations with China over India. On the contrary, DPP (Ruling Party), backs for strengthenedties with India[16]. For the time being, India’s interests are stable, but if KMT secures power in Taiwan, India needs to be cognizant of the developments and should act accordingly.
Conclusion
Delhi’s determination matters the most. Importantly, India should inherently understand that China is an occupying force, and both the states are not in entente cordiale. On the same plane, India must move past its fait accompli moments with China. Instead, pragmatism should be the catharsis for India’s resurgence. In short, for India to execute its policy paradigms, its diplomatic psyche should be affirming than compromising. As Thucydides states in his accomplished work, ‘The History of the Peloponnesian War’:“The bravest are surely those who have the clearest vision of what is before them, glory and danger alike, and yet notwithstanding go out to meet it.”[17]Similarly, India, heedless of win or vain, should confront China by skewing the One China policy. After all, India only has two options- either face it or feel the brunt.
[1]Tzu, Sun. The Art of War. 1st ed., Rupa Publications, 2016, p. 20.
[2]“What’s Behind the China-Taiwan Divide?”. BBC News, 2019, https://www.bbc.com/news/world-asia-34729538.
[3]Ibid
[4]“Where Is India On the One China Policy?”. The Diplomat, 2017, https://thediplomat.com/2017/03/where-is-india-on-the-one-china-policy/.
[5]Chattaraj, Abir. “Thucydides Trap in Asia: The Sino-Indian conflict” Modern Diplomacy, 2016, https://moderndiplomacy.eu/2016/10/25/thucydides-trap-in-asia-the-sino-indian-conflict/
[6] Nepal is a beneficiary of China’s marquee project- Belt and Road Initiative, and it was dissuaded by China to snap relations with India on the account of the border dispute. See- Singh, Mansheetal, and Shreya Behal. “China’s Proxy Battle with India In Nepal”. Observer Research Foundation (ORF), 2020, https://www.orfonline.org/expert-speak/chinas-proxy-battle-with-india-in-nepal-69016/.
[7]“India, China Clash Over Kashmir As It Loses Special Status and Is Divided”. Reuters, 2019, https://in.reuters.com/article/uk-india-kashmir/india-china-clash-over-kashmir-as-it-loses-special-status-and-is-divided-idINKBN1XA1BW.
[8]The New Southbound Policy is an initiative of the current Taiwanese Government to enhance cooperation and exchange between Taiwan and South Asia, Southeast Asia and Australasia. The key areas include- economic cooperation, regional linking, resource sharing etc. See- Marston, Hunter, and Richard C. Bush. “Taiwan’s Engagement with Southeast Asia Is Making Progress Under the New Southbound Policy”. Brookings, 2018, https://www.brookings.edu/opinions/taiwans-engagement-with-southeast-asia-is-making-progress-under-the-new-southbound-policy/.
[9]“VALUE OF EXPORTS & IMPORTS BY COUNTRY”. Bureau Of Foreign Trade, Government Of The Republic Of China, 2020, https://cus93.trade.gov.tw/FSCE040F/FSCE040F.
[10]Dewan, Neha. “Taiwan Sets Eyes on India Amid China-US Trade War”. The Economic Times, 2019, https://economictimes.indiatimes.com/small-biz/trade/exports/insights/taiwan-sets-eyes-on-india-amid-china-us-trade-war/articleshow/69408405.cms?from=mdr.
[11]“Taiwan Regains Top Spot in Semiconductor Market”. Taipei Times, 2019, https://www.taipeitimes.com/News/biz/archives/2019/12/09/2003727214.
[12]Supra. Note- 10.
[13]“2019 Taiwan-India Industrial Collaboration Summit Held in Taipei On October 17”. PR Newswire, 2019, https://www.prnewswire.com/in/news-releases/2019-taiwan-india-industrial-collaboration-summit-held-in-taipei-on-october-17-863399392.html.
[14]“’Made in India’ iPhone 11 goes into production in Chennai”Nikkei Asian Review, 2020, https://asia.nikkei.com/Business/Technology/Made-in-India-iPhone-11-goes-into-production-in-Chennai
[15] “iPhone-maker Pegatron registers India subsidiary as Apple pushes to diversify supply” The Economic Times, 2020, https://economictimes.indiatimes.com/tech/hardware/iphone-maker-pegatron-registers-indian-subsidiary-lays-foundation-for-apple-to-kick-china-habit/articleshow/77010035.cms
[16]Rich, Timothy et al. “Taiwan’s Relations with India: Partisan Divides”. The Diplomat, 2020, https://thediplomat.com/2020/01/taiwans-relations-with-india-partisan-divides/.
[17]Winn Livingstone, Sir Richard. The History of The Peloponnesian War. Oxford University Press, 1961, p. 113.
