Taiwan's Diplomacy in the South Pacific

Abstract

Taiwan's international profile has increased dramatically in recent years, both economically and politically. Economically, as one of the world's most dynamic economies, it now has the world's second largest foreign reserves and also ranks amongst the highest per capita income countries in Asia after Japan, Hongkong and Singapore. In China and in most of the South East Asian countries, Taiwan topped the list of foreign investors. International recognition of the economic importance of Taiwan is exemplified by the acceptance of Taiwan as a member of APEC, and its admission to membership of GATT is just a matter of time. Politically, Taiwan's bilateral relations with many countries have been upgraded, although many are still reluctant to develop formal diplomatic relations with it to avoid provoking China. Indications of Taiwan's increasing political clout on the international stage are provided by three phenomena. Firstly, many countries have allowed Taiwan to upgrade its representation in them by changing the name of its quasi-embassy from East Asia Trading Centre to Taipei Economic and Cultural Office. Secondly, many countries have recently opened direct air links with Taiwan. These countries include Britain, Canada, Australia and New Zealand. Thirdly, visits of foreign government ministers to Taiwan have become more open. Australia and New Zealand, for example, have recently sent government ministers to Taiwan for the first time in more than twenty years.