It is clear that Taiwan shares much in common with Australia. It is an island in the Pacific with a population of 23 million people, a population of indigenous people with a long history, and a country with a complex relationship with China and the United States.
However, little is known about Taiwan among many Australians. Taiwan is most often referred to as a security risk or “flashpoint” in world affairs. This is especially so in Australia, where Taiwan is seen through the prism of our relationship with China and what relations between these two countries mean for regional stability.
However, continued references to Taiwan in this way only serve to diminish and obfuscate the important relationship Australia actually has with Taiwan.
Taiwan as a partner in the Asia-Pacific region
Taiwan’s successful political model, functioning inside a culturally Chinese society, is proof that Chinese culture and democracy are compatible.
Australia and Taiwan do not have official diplomatic relations. Australia recognises the government of the PRC (the People’s Republic of China, as opposed to the Taiwanese Republic of China) as the sole legal government of China.
However, according to DFAT’s brief on Taiwan, Australia does support the development of economic and cultural contacts – on an unofficial basis – between Australia and Taiwan.
Australia is often told it punches above its weight in world affairs. Taiwan, as the world’s 19th largest economy, could equally be said to be the same. However, it is internationally recognised only for its fragile political status.
The renewed debate about Australia’s balancing act between China and the United States runs the risk of clouding our relationship with Taiwan.
As Australia starts to enter the Asian Century, Australia’s future will be increasingly centred in Asia, and forming enduring social and cultural ties is essential to ensure Australia maintains good relations with its neighbours in the future.
Business Relations with Taiwan
From an economic point of view, Taiwan and Australia are much closer than many would expect. According to DFAT, Taiwan was Australia’s sixth largest merchandise export market in 2011, increasing by 9% from the previous year – with coal, iron ore, and aluminium being the main products being imported.
Taiwan is also a global economic player. It has 42 companies in the Forbes Global 2000 Leading Companies, compared to Australia’s 44. Moreover, Taipei, the capital of Taiwan, is ranked in the top 25 metropolitan areas with the most Global 500 companies. No Australian city is included in the top 25.
Taiwan is a hub for exports and trade
Australian businesses should look for new markets in Southeast Asia as the Chinese economy is slowing down. Taiwan can act as a launching pad to enter other South Asian markets.
Taiwan has also been able to preserve much of its history and is now a bastion of Chinese culture and history.
As Asia becomes more and more important, and China in particular. It will be increasingly important to understand the cultural and historical paradigms shaping these societies.
While Australia is already a large destination for Taiwanese students, Taiwan is still very much overlooked by Australian students. Yet the Taiwanese government offers generous scholarships to Australians via its Huayu Scholarship program to learn Chinese and get to know Taiwan.
Taiwan as a “Tech Giant”
Many Taiwanese companies are making significant contributions to the global economic environment with companies such as HTC and Acer, while Taiwanese companies are major suppliers of parts which make up Apple products.
One of the original four “Asian Tigers,” Taiwan is often overlooked, dwarfed by the economic success stories of China and India. Yet, Taiwan is a relatively free place to do business and has a strong history and tradition of welcoming foreign direct investment (FDI).
In Countering The Growing Chinese Dominance
As everyone is aware, China has an expansionist mentality and won’t stop till Taiwan. From a security perspective, Taiwan is equally crucial for both Australia and south-east Asia to counter the growing influence of China in the region.
If Taiwan is overlooked economically, then perhaps it is best known for its fragile political relationship with China.
In 1949, following the Chinese civil war, the Communist forces took full control of mainland China and founded the People’s Republic of China (PRC). As a consequence, the Republic of China (ROC) reset its government to Taiwan.
Following the lifting of martial law in 1987, Taiwan made a transition from authoritarian rule to democratic rule, with direct presidential elections held for the first time in 1996.
Taiwan’s current president, Ma Ying-jeou has improved the relationship with China since he took office, mainly marked by a trade agreement known as the Economic Cooperation Framework Agreement (ECFA). Relations across the strait have never been better since Taiwan and China split in 1949.
However, tensions still exist. In 2005, China passed the “Taiwan Anti-Secession Law”, whereby China commits to a military response if Taiwan declares independence or if peaceful reunification efforts fail.