Earlier, between Saturday and Sunday, Taiwan tracked 10 Chinese military aircraft and three naval ships…reports Asian Lite News
Taiwan’s Defence Ministry detected 5 Chinese military aircraft and four naval ships around Taiwan between 6 a.m. on Sunday (April 2) and 6 a.m. on Monday (April 3).
Taking to Twitter, Taiwan’s Defence Ministry said, “5 PLA aircraft and 4 PLAN vessels around Taiwan were detected by 6 a.m.(UTC+8) today. R.O.C. Armed Forces have monitored the situation and tasked CAP aircraft, Navy vessels, and land-based missile systems to respond these activities.” “Illustration of flight paths is not provided due to no trace of PLA aircraft crossing the middle line of the Taiwan Strait or entering Taiwan’s southwestern ADIZ during the time frame,” it added.
Earlier, between Saturday and Sunday also, Taiwan tracked 10 Chinese military aircraft and three naval ships, Taiwan News reported.
Of the 10 People’s Liberation Army (PLA) aircraft, four KA-28 anti-submarine warfare helicopters were monitored in the southwest corner of Taiwan’s air defence identification zone (ADIZ), according to the MND. No PLA aircraft crossed the Taiwan Strait median line during this time.
In response, Taiwan sent naval ships and used land-based missiles to monitor the PLA aircraft and vessels.
So far in April, Beijing has sent 28 military aircraft and seven naval vessels around Taiwan. Since September 2020, China has increased its use of grey zone tactics by routinely sending aircraft into Taiwan’s ADIZ.
According to Focus Taiwan, Grey zone tactics are defined as “an effort or series of efforts beyond steady-state deterrence and assurance that attempts to achieve one’s security objectives without resort to direct and sizable use of force.”
In a similar incident last week, Taiwan tracked nine Chinese military aircraft and four naval vessels around Taiwan between on Monday, March 27 and Tuesday, March 28, as per the report in Taiwan News.
Of the nine People’s Liberation Army (PLA) aircraft, three were tracked in Taiwan’s air defence identification zone (ADIZ), according to the MND. One CH-4 reconnaissance drone crossed the Taiwan Strait median line in the northeast sector of the ADIZ, while two Shenyang J-11 fighter jets entered the southwest corner of the identification zone.
So far in March, Beijing has sent 325 military aircraft and 101 naval vessels around Taiwan. Since September 2020, China has increased its use of grey zone tactics by routinely sending aircraft into Taiwan’s ADIZ, reported Taiwan News. (ANI)
The two governments agreed to develop friendly relations between the two countries on the basis of the principles of mutual respect for sovereignty and territorial integrity…reports Asian Lite News
Central American country Honduras has signed a joint communique formalising establishment of diplomatic ties with China, and severing its decades-long ties with Taiwan, Xinhua reported.
A joint communique was signed by Chinese State Councilor and Foreign Minister Qin Gang and Honduran Foreign Minister Eduardo Reina after they held talks in Beijing on Sunday. The comminique statest that the Government of the Republic of Honduras recognizes that there is but one China in the world, the Government of the People’s Republic of China is the sole legal government representing the whole of China, and Taiwan is an inalienable part of China’s territory.
According to the communique, the People’s Republic of China and the Republic of Honduras, in keeping with the interests and desires of the two peoples, have decided to recognize each other and establish diplomatic relations at the ambassadorial level, effective from the date of signature of this communique, Xinhua reported.
With deep regret we announce the termination of diplomatic relations with Honduras. 82 years of friendship & cooperation bringing real benefit to the peoples were dismissed by the Castro government. Taiwan remains unbowed & continues to work as a force for good in the world.
— 外交部 Ministry of Foreign Affairs, ROC (Taiwan) 🇹🇼 (@MOFA_Taiwan) March 26, 2023
The two governments agreed to develop friendly relations between the two countries on the basis of the principles of mutual respect for sovereignty and territorial integrity, mutual non-aggression, non-interference in each other’s internal affairs, equality, mutual benefit and peaceful coexistence, the communique stated.
The Government of Honduras shall sever “diplomatic relations” with Taiwan as of this day and undertakes that it shall no longer develop any official relations or official exchanges with Taiwan. The Government of the People’s Republic of China appreciates this position of the Government of the Republic of Honduras, the communique said.
Taiwan’s Ambassador to Honduras, Vivia Chang on Saturday returned home as ties between the island country and Honduras worsened as reported Taiwan News.
When holding talks with Reina, Qin noted that the one-China principle is a prevailing consensus in the international community and a widely recognized basic norm in international relations.
“Honduras has made an important decision to recognize the one-China principle and join the mainstream of the world, which is in full accordance with the fundamental and long-term interests of Honduras and its people, and is also a choice to stand on the right side of history and the side of the vast majority of countries,” Qin was cited as saying.
China highly appreciates Honduras’ clear attitude and firm determination to establish diplomatic relations between the two countries, he added, Xinhua reported.
The establishment of diplomatic relations between China and Honduras is fair and square, which is a historical trend that no person or force can stop, Qin said.
Qin called on the two sides to strengthen their synergy and coordination and speed up consultations on important bilateral agreements and cooperation mechanisms. He also welcomed Honduras in supporting and joining the Belt and Road Initiative, the Global Development Initiative, the Global Security Initiative and the Global Civilization Initiative, Xinhua reported.
China will fully support Honduras’ economic and social development and improvement of its people’s living standards, Qin said, adding that China is willing to expand imports of Honduran speciality products, encourage Chinese companies to invest in Honduras, participate in large-scale infrastructure construction in Honduras, and give priority to the implementation of projects benefiting people’s livelihoods.
The establishment of diplomatic relations between China and Honduras will not only benefit the two peoples but will also have an important impact on strengthening unity and cooperation among developing countries and promoting greater democracy in international relations, Qin said.
For his part, Reina said the establishment of diplomatic relations between Honduras and China has opened a new era of bilateral relations and taken a historic step, which will greatly benefit the two peoples, Xinhua reported.
Honduras promises to abide by the one-China principle and is ready to work with China to further enhance bilateral relations, advance bilateral cooperation in various fields at full speed, and strengthen communication and coordination in multilateral fields so as to achieve mutual benefit and win-win results, Reina said.
When attending a joint press conference together with Reina after their talks, Qin said Honduras has chosen to stand together with 181 countries in the world and made the political decision to recognize and pledge to abide by the one-China principle and establish diplomatic ties with China without any preconditions, which fully conforms to the fundamental and long-term interests of Honduras and its people, Xinhua reported.
“This once again fully proves that adhering to the one-China principle is the right choice in keeping with the general interests of the world and the trend of the times,” Qin said.
“We want to make it clear to the Taiwan authorities that ‘Taiwan independence’ separatist activities go against the will and interests of the Chinese nation, go against the historical trend, and will only lead to a dead end,” Qin said.
Reina said Honduras is willing to strengthen cooperation with China on finance, trade, infrastructure, science and technology, culture and tourism, and maintain closer communication and coordination under multilateral frameworks, Xinhua reported.
A Chinese Foreign Ministry spokesperson on Sunday also made remarks on the establishment of diplomatic relations between China and Honduras.
Noting that Honduras is an important country in Central America, the spokesperson said: “This is the right choice that is in line with the prevailing trend and supported by the people. China highly appreciates that.”
By following the Five Principles of Peaceful Coexistence, China stands ready to enhance friendly cooperation with Honduras in various fields to the benefit of the two countries and peoples, the spokesperson said. (ANI)
U.S. Defense Secretary Lloyd Austin attends a press conference in Tel Aviv, Israel on April 11, 2021. (Gideon Markowicz/JINI via Xinhua/IANS)
Taiwan’s importance lies in its control of 90 percent of the global supply of advanced semiconductors, he said, adding that an invasion would result in “a world of hurt”…reports Asian Lite News
In order to ensure that Taiwan has sufficient military capabilities amid China’s aggression, the Pentagon has formed a “tiger team” to discuss foreign military sales.
US Secretary of Defense Lloyd Austin on Thursday said he has assembled the team to ensure that weapons purchased by Taiwan would be delivered sooner. Austin was responding to a remark by US Representative Ken Calvert, chairman of the US House of Representatives Defense Appropriations Subcommittee, after his visit to Taiwan last week that arms deliveries were moving at an “extremely slow pace,” reported Taipei Times.
He said he assembled a “tiger team” months ago to “dig down on the foreign military sales issues” and strive to expedite deliveries.
Speaking at the US House Committee on Appropriations, Austin attributed the backlog to the Covid-19 pandemic and supply chain pressures, but said that “the industry will catch up,” reported Taipei Times.
Leaders from the US Department of Defense gather regularly “to make sure that we are providing the right kinds of capabilities that Taiwan needs,” he added.
The US National Guard has been working with Taiwan to increase its proficiency in several areas, he said, adding that continuing the joint program “will be very, very valuable.”
The defence secretary was joined by US Joint Chiefs of Staff Chairman General Mark Milley, who was asked about the potential impact of a cut in defence spending and how it would affect Washington’s ability to provide deterrence against Chinese activities in the Indo-Pacific region, reported Taipei Times.
Milley said the operational tempo and training of the US military would be greatly reduced not just in the region, but worldwide.
He said cuts could force the US to make fewer transits through the Taiwan Strait, and also “less freedom of navigation, less patrolling of the air, less ISR [intelligence, surveillance and reconnaissance]. Everything will be less, which will increase risk, increase danger and send the wrong message,” reported Taipei Times.
Separately, US Representative Michael McCaul, chairman of the House Foreign Affairs Committee, called on Washington to speed up arms deliveries to Taiwan at the committee’s budget hearing.
“The threat of communist China cannot be overstated,” he said adding, “I personally think Chairman Xi is going to try to influence the (legislative and presidential) elections” in Taiwan next year, referring to Chinese President Xi Jinping.
If Xi fails, his “plan B” would be a blockade and “an invasion on a scale that will make Ukraine look like a very small thing,” he said. “Taiwan is not prepared,” he said, citing an absence of joint military exercises between Taiwan and the US, as well as arms sale delays, reported Taipei Times.
Along with the AUKUS security alliance comprising Australia, the UK and the US, and the Quadrilateral Security Dialogue between Australia, India, Japan and the US, he called on the US to arm Taiwan to deter a potential Chinese invasion, which he said would be “devastating.”
Taiwan’s importance lies in its control of 90 percent of the global supply of advanced semiconductors, he said, adding that an invasion would result in “a world of hurt”.
The budget requested by the US Department of State and the US Agency for International Development Indo-Pacific Opportunity Project for fiscal 2024 increased by 18 per cent compared with the previous fiscal year, reported Taipei Times.
US Representative Ann Wagner, vice chairwoman of the foreign affairs committee, urged the US to show “resolute and unflinching support for this important democratic partner as it faces increased bullying and coercion” by China.
She questioned the approach taken by the US, saying that it “is overly concerned with avoiding even the slightest chance of offending Beijing,” while only 2 per cent of the proposed budget goes toward the Indo-Pacific region, reported Taipei Times. (ANI)
US Secretary of Defense said he assembled a “tiger team” months ago to “dig down on the foreign military sales issues” and strive to expedite deliveries.
In order to ensure that Taiwan has sufficient military capabilities amid China’s aggression, the Pentagon has formed a “tiger team” to discuss foreign military sales, reported Taipei Times.
US Secretary of Defense Lloyd Austin on Thursday said he has assembled the team to ensure that weapons purchased by Taiwan would be delivered sooner. Austin was responding to a remark by US Representative Ken Calvert, chairman of the US House of Representatives Defense Appropriations Subcommittee, after his visit to Taiwan last week that arms deliveries were moving at an “extremely slow pace,” reported Taipei Times.
He said he assembled a “tiger team” months ago to “dig down on the foreign military sales issues” and strive to expedite deliveries.
Speaking at the US House Committee on Appropriations, Austin attributed the backlog to the Covid-19 pandemic and supply chain pressures, but said that “the industry will catch up,” reported Taipei Times.
Leaders from the US Department of Defense gather regularly “to make sure that we are providing the right kinds of capabilities that Taiwan needs,” he added.
The US National Guard has been working with Taiwan to increase its proficiency in several areas, he said, adding that continuing the joint program “will be very, very valuable.”
US President Joe Biden is seen along with Secretary of State Antony Blinken and chairman of the Joint Chiefs of Staff General Mark Milley. (Photo Twitter@POTUS)
The defence secretary was joined by US Joint Chiefs of Staff Chairman General Mark Milley, who was asked about the potential impact of a cut in defence spending and how it would affect Washington’s ability to provide deterrence against Chinese activities in the Indo-Pacific region, reported Taipei Times.
Milley said the operational tempo and training of the US military would be greatly reduced not just in the region, but worldwide.
He said cuts could force the US to make fewer transits through the Taiwan Strait, and also “less freedom of navigation, less patrolling of the air, less ISR [intelligence, surveillance and reconnaissance]. Everything will be less, which will increase risk, increase danger and send the wrong message,” reported Taipei Times.
Separately, US Representative Michael McCaul, chairman of the House Foreign Affairs Committee, called on Washington to speed up arms deliveries to Taiwan at the committee’s budget hearing.
“The threat of communist China cannot be overstated,” he said adding, “I personally think Chairman Xi is going to try to influence the (legislative and presidential) elections” in Taiwan next year, referring to Chinese President Xi Jinping.
If Xi fails, his “plan B” would be a blockade and “an invasion on a scale that will make Ukraine look like a very small thing,” he said. “Taiwan is not prepared,” he said, citing an absence of joint military exercises between Taiwan and the US, as well as arms sale delays, reported Taipei Times.
A soldier looks through binoculars during combat exercises and training of the navy of the Eastern Theater Command of the Chinese People’s Liberation Army (PLA) in the waters around the Taiwan Island, Aug. 5, 2022. (Photo by Lin Jian/Xinhua/IANS)
Along with the AUKUS security alliance comprising Australia, the UK and the US, and the Quadrilateral Security Dialogue between Australia, India, Japan and the US, he called on the US to arm Taiwan to deter a potential Chinese invasion, which he said would be “devastating.”
Taiwan’s importance lies in its control of 90 percent of the global supply of advanced semiconductors, he said, adding that an invasion would result in “a world of hurt”.
The budget requested by the US Department of State and the US Agency for International Development Indo-Pacific Opportunity Project for fiscal 2024 increased by 18 per cent compared with the previous fiscal year, reported Taipei Times.
US Representative Ann Wagner, vice chairwoman of the foreign affairs committee, urged the US to show “resolute and unflinching support for this important democratic partner as it faces increased bullying and coercion” by China.
She questioned the approach taken by the US, saying that it “is overly concerned with avoiding even the slightest chance of offending Beijing,” while only 2 per cent of the proposed budget goes toward the Indo-Pacific region, reported Taipei Times. (ANI)
Zheng also stated that he wanted to make this clear to the relevant British politicians: any actions that undermine China’s interests will be met with its resolute countermeasures…reports Asian Lite News
China’s embassy in the United Kingdom, on Sunday, condemned the visit of the British delegation to Taiwan and said that this was a “flagrant violation of the one-China principle” and interference in their country’s internal matters.
In a statement, Chinese ambassador to Britain Zheng Zeguang said, “In disregard of China’s firm opposition, relevant members of the UK Parliament went ahead to visit the Taiwan region of China. This is a flagrant violation of the one-China principle and blatant interference in China’s internal affairs which sends a grossly wrong signal to the separatist forces for “Taiwan independence”. China strongly condemns this.” He further stated that Taiwan is part of China’s territory, and the discussion on Taipei is purely China’s internal affair. “The one-China principle is a recognized basic norm of international relations and a universal consensus of the international community. It is also the political foundation for the establishment and development of diplomatic relations between China and the UK,” the statement added.
The Chinese ambassador urged the UK to abide by the basic norms governing international relations and stop any action that violates the one-China principle and interferes with China’s internal affairs.
Zheng also stated that he wanted to make this clear to the relevant British politicians: any actions that undermine China’s interests will be met with its resolute countermeasures.
Meanwhile, Taiwan welcomed the delegations of the British on Sunday.
British lawmaker Bob Stewart, who co-chairs the British-Taiwanese All-Party Parliamentary Group, is leading the British delegation of cross-party legislators until Friday, the ministry said in a news release.
The delegation, which is in Taiwan at the government’s invitation, comprises British lawmakers Sarah Atherton, Tanmanjeet Singh Dhesi, Afzal Khan, Marie Rimmer, and Rob Butler, the other cochair of the UK-Taiwan parliamentary group, the ministry said, according to Taipei Times.
— 外交部 Ministry of Foreign Affairs, ROC (Taiwan) 🇹🇼 (@MOFA_Taiwan) March 19, 2023
The group is to meet with President Tsai Ing-wen, Premier Chen Chien-ren, and National Security Council Secretary-General Wellington Koo, and attend banquets hosted by Legislative Yuan Speaker You Si-kun and Minister of Foreign Affairs Joseph Wu, it said.
Stewart, who is on his second trip to Taiwan, has since become the group’s cochair in 2021 shown strong support for the nation, including leading discussions about Taiwanese-British friendship and cooperation in February last year, the ministry said. (ANI)
Taiwan retaliated by sending aircraft, naval boats, and land-based missiles to monitor the PLA aircraft and ships.,..reports Asian Lite News
At least 26 Chinese military aircraft and four naval vessels were tracked by the Ministry of National Defence (MND), Taiwan between Friday and Saturday, Taiwan News reported today.
According to the MND, 15 of the 26 People’s Liberation Army (PLA) aircraft were observed in Taiwan’s Air Defence Identification Zone (ADIZ). Four Chengdu J-10 fighters, four Shenyang J-16 fighters, one CH-4 reconnaissance drone, and one Harbin BZK-005 reconnaissance drone crossed the Taiwan Strait median line. Another reconnaissance drone from Harbin flew along the southern edge of Taiwan’s ADIZ. The southwest corner of the ADIZ saw the tracking of two Shenyang J-16 fighter jets, one Shaanxi Y-8 anti-submarine warfare aircraft, and one BZK-007 reconnaissance drone. A Harbin Z-9 anti-submarine helicopter also appeared in Taiwan’s identification zone’s southeast portion, Taiwan News reported.
Taiwan retaliated by sending aircraft, naval boats, and land-based missiles to monitor the PLA aircraft and ships.
Beijing has sent Taiwan with 67 naval vessels and 266 military aircraft so far this month. China has intensified its use of grey zone strategies since September 2020 by routinely dispatching aircraft inside Taiwan’s ADIZ.
Grey zone tactics are defined as “an effort or sequence of efforts beyond steady-state deterrence and assurance that aims to achieve one’s security objectives without resorting to direct and substantial use of force,” reported Taiwan News.
Chinese military ships, fishing vessels and sand dredgers regularly cross into Taiwan’s waters using what military analysts describe as grey-zone tactics — part intimidation campaign, part resource extraction — intended to keep Taiwan’s people and government on alert.
The Chinese Communist Party government shelled Matsu for decades after the nationalist Kuomintang (KMT) government retreated to Taiwan in defeat in 1949, and gained control of some of the outlying islands that are much closer to China than Taiwan.
Notably, Japan controls the islands, whereas China continues to claim them.
According to history and international law, the islands are inextricably linked to Japan’s territory, the Japanese government claims. (ANI)
Taiwna’s top envoy Hsiao Bi-khim met Chris Smith and discussed a number of issues relating to Taiwan’s security needs and the Chinese Communist Party’s security threats….reports Asian Lite News
United States Congressional-Executive Commission on China, Chris Smith voiced his support for Taiwan and called on America to eliminate double taxation between the two nations in a meeting with Taipei Representative to the US Hsiao Bi-khim, according to Focus Taiwan.
“Taiwanese investors pay three times the tax rate on dividends compared to investors from China, which gets even more preferential treatment than our allies Australia and South Korea,” Smith said in a statement. According to Smith, it is unreasonable that Taiwanese investors are penalised with double taxation, especially when Taiwan is investing to manufacture semiconductors in the US.
Last week Thursday, a statement released by the US Congressional-Executive Commission on China, where Smith cited the example that while investors from China are buying farmland near strategically-sensitive locations, Taiwan is investing roughly USD40 billion to build semiconductor factories in the US, reported Focus Taiwan.
Taiwna’s top envoy Hsiao Bi-khim met Chris Smith and discussed a number of issues relating to Taiwan’s security needs and the Chinese Communist Party’s security threats.
“The US should be disincentivising investment from Communist China while encouraging investment from democratic Taiwan-not the other way around,” he said.
Discussing Taiwan’s security needs and the Chinese Communist Party’s security threats, Smith said, “Taiwan is a beacon of freedom and a great strategic partner who respects human rights and shares our values and aspirations.”
During the meeting, he said the US must stand firmly with Taiwan to counter the growing threat posed by the communist regime under Chinese President Xi Jinping, not only to Taiwan but also to US national security.
Meanwhile, he also personally thanked Taiwan for its donation of 300,000 medical masks to New Jersey residents in the early days of the COVID-19 pandemic, Focus Taiwan reported.
The Taipei Economic and Cultural Representative Offices in the US and in New York assisted quickly after he contacted them amid a dire mask shortage in the state in the early days of the COVID-19 pandemic, Smith said.
“The people of Taiwan were there for us when we were facing the worst of COVID-19, and we must have their backs in their own time of need,” Smith added. (ANI)
China has stepped up its military activities around Taiwan in recent years, including almost daily air force incursions into the island’s air defence identification zone….reports Asian Lite News
Taipei’s defence minister said Taiwan was prepared to “fire the first shot” if Chinese forces enter its territorial space, Al Jazeera reported, adding that Taiwan must be on alert this year for a “sudden entry” by the Chinese military into areas close to its territory as tensions rise across the Taiwan Strait.
China has stepped up its military activities around Taiwan in recent years, including almost daily air force incursions into the island’s air defence identification zone. However, Taiwan has not reported any incident of Chinese forces entering its contiguous zone, 44.4km (24 nautical miles) from its coast. But it has shot down a civilian drone that entered its airspace near an islet off the Chinese coast last year, as reported by Al Jazeera.
Answering questions from lawmakers in parliament, Defence Minister Chiu Kuo-cheng said on Monday the Chinese People’s Liberation Army (PLA) might find excuses to enter areas close to Taiwan’s territorial air and sea space as the self-governing island steps up its military exchanges with the United States, to Beijing’s ire.
The PLA might make a “sudden entry” into Taiwan’s contiguous zone and get close to its territory, which the island defines as 22km (12 nautical miles) from its coast, he said.
“Specifically make these comments this year, meaning they are making such preparations,” Chiu said, adding, “Looking forward, they would use force if they really have to.”
In response, Chinese foreign ministry spokesperson Mao Ning said at a daily briefing that Beijing “will take firm measures to defend its sovereignty and territorial integrity”.
Al Jazeera reported that Taiwan said it will exercise its right to self-defence and counterattack if Chinese armed forces enter its territory.
Last year, China staged unprecedented military exercises around Taiwan in reaction to a visit to the island by then-US House Speaker Nancy Pelosi.
Chiu said China was looking to “make trouble under a certain pretext”, which might include visits to the island made by senior foreign government officials or Taiwan’s frequent military contacts with other countries.
Asked by a lawmaker if the US was planning to store some of its military equipment in Taiwan, Chiu said such discussions were ongoing but declined to elaborate.
The US is Taiwan’s most important international arms supplier, and increasing US support for the democratic island has added to the tension in already strained US-China relations, Al Jazeera reported.
Chiu said the PLA sends about 10 planes or ships to areas near Taiwan daily. Some cross the median line of the Taiwan Strait, which has traditionally served as an unofficial buffer, he said.
Chiu said since China abandoned a tacit agreement on military movements in the strait, Taiwan has made preparations to “fire the first shot” if Chinese entities, including drones or balloons, enter its territorial space.
China claims self-governed Taiwan as its own and has not renounced the use of force to bring it under Chinese control if needed. Taiwan strongly rejects China’s sovereignty claims and says only its people can decide their future. (ANI)
The move is expected to further heighten tensions between the US and China…reports Asian Lite News
The United States has given the green light for the sale of $619 million in munitions to Taiwan, including advanced missiles for F-16 fighter jets, according to a statement released by the Pentagon.
The move is expected to further heighten tensions between the US and China, which views Taiwan as a wayward province.
The package includes 100 High-Speed Anti-Radiation Missiles (HARM), 200 Advanced Medium Range Air-to-Air Missiles (AMRAAM), and training equipment, which will enhance Taiwan’s “capability to provide for the defence of its airspace, regional security, and interoperability with the United States,” the statement said.
The sale has been approved in accordance with the Taiwan Relations Act and Washington’s One China Policy, which acknowledges the existence of only one state named China, according to a separate statement released by the US State Department.
The department also stressed that the sale will contribute to the maintenance of peace and stability in the Taiwan Strait and the region.
Taiwan has welcomed the sale, which is the first US arms deal of the year and the ninth during President Joe Biden’s administration. Taiwan’s Foreign Ministry spokesman Jeff Liu said, “In the face of China’s continued military expansion and provocative behavior, Taiwan will continue to actively improve its self-defense capabilities.”
The announcement comes amid growing tensions between the US and China, exacerbated by the downing of a Chinese surveillance balloon over US airspace last month.
The international uproar over the balloons has shed light on China’s military surveillance capabilities.
The U.S. has since recovered sensors and other electronic equipment from the wreckage, which insinuates the balloon was likely used for eavesdropping on electronic signals. On further analysis of the debris, the balloon was equipped to detect and collect intelligence signals as part of a huge, military-linked aerial surveillance program.
Union Finance Minister Nirmala Sitharaman presents the Union Budget 2023-24 in the Lok Sabha, in New Delhi,on Tuesday, Feb. 1, 2023. (Photo:IANS/Sansad TV)
The 2023 Budget can be considered a prominent push for investors, heralding success for Taiwanese industries…reports Asian Lite News
The 2023 Indian Budget was announced on February 1. According to Commonwealth Magazine, the Budget will open a new window for bilateral cooperation between India and Taiwan, ranging from semiconductors, battery manufacturing, and electric vehicles to 5G technology.
When India’s Budget proposals were announced, not only the citizens of India but also the world was looking with great enthusiasm, according to Commonwealth Magazine. Since Taiwan is currently looking for a manufacturing partner for offshoring China-based Taiwan businesses, the 2023 Budget can be an indication of how more India-Taiwan business collaboration can be streamlined, Commonwealth Magazine said.
The 2023 Budget, according to Commonwealth Magazine, entails several adjustments to budget allocation, allowing the electric vehicle (EV) battery industry where Taiwan and India are highly interdependent, to enjoy 13 per cent (down from the original 21 per cent) custom duty exemption for lithium battery cells. This will not only encourage India to transition to electric vehicles but also pave the way for more collaboration and cultivate confidence between India and Taiwan.
Since the relaxing of Covid protocols, we have witnessed several high-level business delegations from both countries visiting one another with the aim to understand the opportunities. Last November, Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA) chairman Richard Lee, and Taiwan’s de-facto Ambassador to India, Baushuan Ger, visited important Indian cities to enhance the India-Taiwan bilateral investment framework, especially for EV and relevant technology areas, according to Commonwealth Magazine. Now, this budget brings more opportunities for Taiwan EV battery sectors.
The semiconductor industry, which has the highest potential for collaboration, is allocated with a Budget totaling Rs 3,000 crore (USD 360 million). The Commonwealth Magazine said this would include silicon-based semiconductor fabs, other kinds of semiconductor fabs including chip packaging, and design-linked incentives (DLIs). This budget is particularly relevant with the Foxconn-Vedanta JV project, which is aimed at creating a semiconductor fab unit, a display fab unit, and a semiconductor assembling and testing unit. Besides that, as Foxconn is proactively expanding its production in India, the group’s supply chain could very well leverage this new budgetary scope and can plan to expand in or relocate to India.
In September 2019, the Indian government announced that any new domestic manufacturing company can enjoy a corporate income tax at 15 per cent, the lowest in the world. According to Commonwealth Magazine, the 2023 Budget has further extended such discount to any new manufacturing cooperative societies commencing production before March 31, 2024, in order to encourage more manufacturing in the cooperative sector. A great number of attendees at match-making events organized by industries, including the Automotive Component Manufacturers Association of India (ACMA), affirmed a positive outlook from both countries.
The Budget also has a focus on developing talents familiar with manufacturing facilities utilizing future technologies, specifically, machine learning, artificial intelligence and robotics, according to Commonwealth Magazine. Furthermore, the Budget also prioritises commercial, residential, and retail development.
Another point of note is the government’s infrastructure investment, specifically in railways, road transport, and highways. Commonwealth Magazine said a 33 per cent increase in capital expenditure on infrastructure investment could prominently improve connectivity and bring in prominent foreign direct investment in different real estate sectors. In fiscal year 2021, India received USD 81.72 billion FDI for infrastructure activities. Over the past decade, Commonwealth Magazine said Japan is proactively attuning Indian infrastructure projects and is involved in several major projects, including the Guwahati Water Supply Project, and the North-East Road Network Connectivity Improvement Project.
Recently, the Chief Representative of JICA India has announced possibilities to set up joint foreign infrastructure development projects with India and its neighbouring countries, according to Commonwealth Magazine. With this aim, Taiwan can also cultivate the possibilities to be involved in projects aligned with Indian budgetary allocation.
The Production-Linked Incentive (PLI) Scheme is one more point that manufacturing companies are paying attention to in the budget. The scheme became quite popular in Taiwan when Foxconn and Wistron, two major Taiwanese companies, were chosen for the PLI incentives in 2021, according to Commonwealth Magazine.
With the introduction of the PLI scheme in 2018, Indian manufacturing facilities see their budgetary allocation grow almost every year. However, the 2023 Budget remained silent about the PLI. And we might need to wait till the next year to see new budgets allocated to a few closely-watched sectors, like toy manufacturing, leather and renewable energy, according to Commonwealth Magazine.
The current Indian budgetary reforms are believed to boost foreign direct investment and create a manufacturing hub. It is expected that India can see a GDP growth of around 7 per cent in 2023, providing robust growth compared to those of other major economies.
India and Taiwan have been accelerating their engagement. Bilateral trade has grown nearly six-fold from USD 1.19 billion in 2001 to almost USD 7.7 billion in 2021, according to Commonwealth Magazine. With an increase in India-Taiwan collaboration, the long-requested FTA between the two countries now stands a better chance of becoming reality.
The 2023 Budget can be considered a prominent push for investors, heralding success for Taiwanese industries.
New Southbound Policy
Though New Delhi and Taipei have no diplomatic ties at present, India is one the 18 countries under its New Southbound Policy” that Taiwan is looking to expand its ties with.
“The investment would be considered a win for Indian Prime Minister Narendra Modi’s government, which aims to create an ecosystem for semiconductor manufacturing in India,” Taipei Times said in a report.
Last year, the Centre gave its nod for a Rs 76,000 crore PLI scheme aimed at developing the semiconductor and display manufacturing ecosystem.
India has been solely relying on imports of this critical component that forms a key raw material for almost all electronic items.
Senior government officials of both countries pointed out the need to expand bilateral relations “based on mutual interests.”
“Taiwan is a developed economy and a powerhouse of technology and we must establish good relations with the country,” the late Shakti Sinha, a former bureaucrat and director at Atal Bihari Vajpayee Institute of Policy Research and International had told India Narrative in an interview.
Invest India, meanwhile, in its assessment said that India’s semiconductor demand at present, is valued around $ 24 billion but by 2025, the market is expected to touch $ 100 billion.
Demand for semi-conductor has increased significantly with the rise in usage of mobile phones and computers. The advent of 5G technology will push demand further.
Invest India, the nodal body facilitating investments in the country, noted that the shortage of semi conductor amid the Covid 19 pandemic and the new geopolitical realities further exacerbate the need to develop trusted and reliable sources for chip manufacturing.
It has also set up a new mechanism under the umbrella ‘Taiwan Plus’ to help and handhold Taiwanese companies set up shop here.
Besides Foxconn, several other Taiwanese contract manufacturers including Wistron Corp and Pegatron Corp have also set up their manufacturing facilities in India. According to a Reuters report, these companies have drawn up plans to plough in $900 million in India over the next five years to tap into the government’s production-linked incentive plan. (ANI/IANS)
