Taiwan is betting that India will gradually reduce its economic dependence on China and avoid opening up to China’s expansionism. More and more Taiwanese companies leave China and choose to invest in the Indian subcontinent, where there is also a huge market, cheap labor, reduced relief, 3% stable rate and falling house prices.
The cooperation between Taipei and Delhi will begin four years ago. The Covid-19 crisis has further promoted relations between the two parties. When the crisis began, the global supply chain was interrupted, and Chinese manufacturing played a major role in it. Attempts to leave China and its investment diversification plan have also exacerbated this situation, thereby preventing the effects of changes brought about by the possible economic “decoupling” between China and the United States.
For a long time, thousands of Taiwanese companies, especially those in the electronics and machinery industries, have transferred their production to China. Rising labor costs in China have led the government to impose tariffs on Chinese exports, and these companies are slowly turning to other markets.
Currently, there are 140 Taiwanese companies operating in India, and this trend is increasing. Including Foxconn, Foxconn is responsible for assembling Apple products in China. In 2018, Taipei’s investment in India increased to 306 million euros. Between 2014 and 2019, the trade between Taiwan and the Indian giant increased by 14% to 4.9 billion euros.
Both the Taiwan region and India are worried about China’s rise. .Last month, the most recent military conflict broke out on the drunken Himalaya border. Delhi banned the use of 100 Chinese mobile applications, including the popular Shake. sound.
Since 2016, Tsai Ing-wen has been selected as the leader of Taiwan, and the relationship between Taipei and Beijing has deteriorated. mainland. According to “foreign policy” sources, Taiwan’s mainland companies promised to bring back 28.1 billion euros of investment to Taiwan. Among them, 5.8 billion euros have been invested in 2019; by the end of this year, this number will reach 95 billion.
