Chinese and Taiwan conflict, Impact on India

China and Taiwan Issue

The conflict between China and Taiwan is a long-standing and complex one. The two sides have been in a state of political and military standoff for decades, with each side claiming to be the legitimate government of all of China. The conflict has its roots in the Chinese Civil War of the 1940s when the Communist Party of China ousted the Nationalist Party from power. The Nationalists retreated to the island of Taiwan, where they set up a government in exile. China has always considered Taiwan to be a part of its territory and has vowed to one day reunify the island with the mainland. Taiwan, on the other hand, has declared itself to be an independent country and has been recognized as such by a number of countries around the world. The two sides have never reached a compromise on the issue, and the conflict has occasionally flared up into open warfare, most notably during the First and Second Taiwan Strait Crises in the 1950s and 1960s.

India's dependence on Taiwan

India is one of the world’s largest economies and is home to a population of over 1.3 billion people. The country is also the world’s second most populous nation. India is a leading player in the global economy and is a member of the G20 group of nations. The country has a diversified economy with a large service sector, a thriving manufacturing sector, and a rapidly growing agricultural sector.

One of the key factors driving India’s economic growth is its strong trade relations with other countries. India is a member of the World Trade Organization (WTO) and has bilateral trade agreements with a number of countries. The country is also a member of the Regional Comprehensive Economic Partnership (RCEP) which is a mega-regional free trade agreement that is currently being negotiated between 16 countries including India.

Taiwan is one of India’s major trading partners. In 2016-17, bilateral trade between India and Taiwan stood at US$ 14.57 billion. Taiwan is also one of the top destinations for Indian tourists. In 2016, around 1.26 lakh Indian tourists visited Taiwan.

There are a number of reasons why India is dependent on Taiwan. Firstly, Taiwan is a major source of electronic goods for India. The country is a world leader in the manufacturing of semiconductors, integrated circuits, and other electronic components. These products are used in a wide range of industries including the automotive, healthcare, and telecommunications sectors.

Secondly, Taiwan is also a major source of machinery and equipment for India. A large number of Indian companies source machinery and equipment from Taiwan for their manufacturing operations.

Thirdly, Taiwan is a major market for Indian exports. The country is one of the largest importers of Indian goods and services. In 2016-17, Taiwan imported goods and services worth US$ 6.3 billion from India.

Fourthly, Taiwan is a major source of investment for India. The country is one of the top 10 sources of Foreign Direct Investment (FDI) for India. In 2016-17, Taiwan invested US$ 1.4 billion in India.

Finally, Taiwan is an important partner for India in the area of defense and security. The two countries have a close relationship in this domain and cooperate extensively in areas such as defense technology and intelligence sharing.

India's dependence on china

The economic relationship between India and China has been growing rapidly in recent years with bilateral trade reaching $84.4 billion in 2016, up from $5.6 billion in 2000.

China is India's largest trading partner and India is China's ninth largest. The two countries have also been investing more in each other, with Chinese investment in India reaching $8 billion in 2016, up from just $500 million in 2010.

However, the trade relationship between India and China is not without its challenges. India has a trade deficit with China of $46.56 billion, and its companies often complain about Chinese regulations and intellectual property rights violations.

The two countries are also competing for influence in third countries, particularly in Africa. While both India and China see Africa as an important market for their products and a source of raw materials, they have different approaches to engagement.

China's economic relationship with India is an important part of its overall strategy in Asia. By investing in India and increasing trade with the country, China is seeking to create a market for its products and to increase its influence in the region.