New Delhi/Taipei: – India has initiated steps to increase cooperation with Taiwan. Discussions have started between India and Taiwan for free trade and investment agreements. At the same time, India has begun movements to create the Semiconductor Hub in the country with Taiwanese collaboration. Only a few days ago, the Indian Foreign Secretary had indicated that it would take a prudent decision regarding the trade relations with China. Against this background, the cooperation between India and Taiwan attracts attention.
A few days ago, India announced an ambitious plan with an outlay of $10 billion to become a leader in the semiconductor sector. Talks are underway with companies to develop India as a ‘Semiconductor Hub’, including major Taiwanese companies TSMC and UMC. TSMC is the largest semiconductor company in the world. Analysts claim that if this company accepts the Indian offer, it will be a huge opportunity for India.
Earlier, Taiwanese companies set up a semiconductor hub in the United States, which is considered strategically important. Taiwan’s investment in India’s semiconductor sector is also considered strategically important. India has initiated efforts to strengthen cooperation with Taiwan, apart from the semiconductor sector, even in other sectors. Negotiations have already begun on a free trade agreement between India and Taiwan and a bilateral investment agreement. It is said that two rounds of discussions have been completed in this regard.
Moreover, by claiming Taiwan as is its territory, China has repeatedly threatened Taiwan that it is not an independent country. In such a scenario, India’s cautious policy towards Taiwan is changing. Besides, now India is openly taking the initiative to cooperate with Taiwan. This is the shock being delivered by India to China. It is because challenging India on the Taiwan issue can cost China.
Furthermore, Indians are already angry with China over the tension over the Line of Actual Control. In such a scenario, if China shows more aggression on the political level against India, it will harm trade between the two countries. This could be a massive blow to China.
Related posts:
India delivers a message to China by sending good wishes to Taiwan
India to purchase Predator-B drone from United States
US sends stern message to China by landing P-8 Poseidon aircraft at Andaman-Nicobar
China upset over growing India-Taiwan ties
India-US cooperation scaling new heights while distrust increasing between India-China, claims US Admiral Aquilino
China’s conflict with India and Taiwan will escalate if the aggression is not stopped, infers analyst Gordon Chang
Activation of QUAD increases Chinese concerns
US and China clash in at UNSC meet on maritime security convened by India
