The year 2020 is turning out to be an inflection point in the world’s relationship with China. This also opens up new possibilities for Taiwan, which has had limited diplomatic and trade relations with the world. China objects to such ties and countries respond positively to Chinese concerns.
Taiwan has been pressing for a formal trade deal with India for years now. India has been reluctant given that it has supported the One-China policy, and also because a formal trade deal with Taiwan may engage it in a trade dispute with China at the World Trade Organisation (WTO).
Now, reports suggest that India and Taiwan are finally talking about having a trade deal. This comes at a time when both India and Taiwan are seeing their bilateral relations with China deteriorate sharply. Many see India and Taiwan as natural partners as both are democracies.
Though there is no official word on an India-Taiwan trade deal, the reports have gained currency from Chinese reaction. China said it is “firmly opposed” to such a deal asserting that “the one-China principle is the common consensus of the international community including India, and serves as political foundation for China to develop relations with any country”.