Taiwan’s New Southbound Policy is bearing fruit, but could benefit from concrete proposals that map with partner countries’ own development agendas.
The News Lens
Date: 2018/12/11
By: Hsin-Huang Michael Hsiao, Jeremy Huai-Che Chiang and Alan Hao Yang, TAEF, East Asia Forum
Credit: Reuters / TPG
Since Taiwanese President Tsai Ing-wen (蔡英文)’s inauguration in 2016, Taiwan has looked to strengthen its ties with neighboring states in Asia under an approach known as the New Southbound Policy. The policy seeks to enhance Taiwan’s cooperation with Southeast Asia, South Asia, Australia and New Zealand, while decreasing Taiwan’s economic dependence on any single market.
Taiwan has long promoted the regionalization and internationalization of its existence. In previous decades, Taiwan has relied heavily on the United States’ security assurance to play the Taipei–Beijing–Washington “strategic triangle.” But with the world heading towards a multipolar future, the Tsai administration is adapting Taiwan’s foreign policy approach and broadening its overseas relationships.
The new policy has had some initial successes. Taiwan’s high levels of trade and investment with China are yet to drop. But bilateral trade with Southeast and South Asian countries grew around 15 percent from 2016–17, while Taiwan’s investment in these countries rose by 54 percent.
While China is on track to be the world’s largest economy in 2050, India and Indonesia will rank second and fourth, respectively. Southeast and South Asia are rising players in world politics. And while China’s assertive influence in the region is inducing some, it is also irritating many others and creating new opportunities for Taiwan.
[FULL STORY]
