24 May 2025 

Written by: Emilie Sterna

The Indo-Pacific region has become an area of intense rivalry between India and China,  largely due to Beijing’s growing power. In this context, Taiwan emerges as a potential partner for  India, helping it to counter Chinese influence and diversify its alliances. The evolution of relations  between India and Taiwan could therefore reshape the regional power balance, while offering  Taiwan new opportunities in response of the isolation imposed by China. This article aims to  explore how Taiwan is part of India’s strategy to block China’s influence in the region.

I. The role of Taiwan in the geopolitical rivalry between China and India

Taiwan, located in East Asia, occupied a strategic geographical position in the Indo-Pacific  region and in the Sino-Indian rivalry. The island of Formosa connects the Indian Ocean to the South  China Sea and the Sea of Japan. Moreover, Taiwan prevents mainland China from having direct  access to the Pacific Ocean. The Indo-Pacific has become a crucial region, mainly due to the major  shipping routes that cross it. However, this region is facing strong geopolitical tensions because of  China’s claims to maritime territory in the area. Even if India is not directly affected by these  claims, India remains a major political actor in the Indo-Pacific, along with China, Japan, Australia,  and Southeast Asia. Since the recent decline of US influence in the region, India has the opportunity  to present itself as a country that preserves political stability and ensures a sustainable economy  within the Indo-Pacific. Although India and China are both part of the BRICS, they remain in  constant rivalry and opposition. Indeed, India, along with other countries, is very concerned about  China’s growing presence and influence in the area, especially since Beijing started its Belt and  Road Initiative (BRI). This economic initiative is a direct threat to India’s position as a regional  leader. Moreover, India and China have some border conflicts in the Himalayan area, which led to  an attack in 2020. Moreover, New Delhi has a number of concerns about China’s policies, including  issues of human rights and democracy, as well as territorial claims. India sees the Indo-Pacific as an  open, liberal and democratic zone. It insists on maintaining security and stability in the region, and  thus on not changing Taiwan’s status quo.

Taiwan is thus a strategic response for India to counter China’s influence. In fact, China  claims Taiwan because it believes Taiwan is part of its territory, based on history and the “One China” principle. China wants unification between Taiwan and the mainland, seeing this as  important for its national pride and power. On the other hand, Taiwan sees itself as different and  wants to keep its own government. In contrast to China, Taiwan is a democracy, whereas China  allows only the Chinese Communist Party, which is an authoritarian regime. Although India  respects the “One China” policy, it sees Taiwan as an important actor that can help India balance  China’s growing influence in Asia. Indeed, India and Taiwan share common values, such as  democracy and individual freedom. China’s claims, however, make the tensions grow higher in the  region. Therefore, security in the region is a major concern for India, as 40% of its trade with East  Asia passes through the Taiwan Strait. If a war were to break out between China and Taiwan, it  could cause huge economic damage to India as well as to the world. In addition, this conflict could  lead to the rise of authoritarian regimes in Southeast Asia. In other words, India’s interest in Taiwan  is both political and economic.

II. Taiwan’s place in India’s strategy towards China

Taiwan occupies a strategic place in India’s policy to counter Chinese expansionism. India  and Taiwan share democratic values and respect for the rule of law, in opposition to China’s attitude  in the Indo-Pacific. Regional security is crucial for India, a Sino-Taiwanese conflict would therefore  have significant economic and security repercussions for New Delhi. In 2019, India supported  Taiwan in the development of submarines, which provoked hostility from Beijing. Furthermore,  Taiwan also hopes that India will support its participation in the World Health Organization (WHO),  but China is firmly opposed. In fact, Beijing reacts negatively to any rapprochement between India  and Taiwan, particularly in the technological field. Thus, Indo-Taiwanese cooperation is aimed at  defending both strategic and democratic interests in response to Chinese pressure.

Since 2020, India and Taiwan have intensified their economic ties, while maintaining  unofficial relations to limit China’s influence. Taiwan plays a key role in the development of India’s  manufacturing sector, supporting India’s ambition to become an export hub. The election of Tsai  Ing-wen in 2016 made relations between Taipei and Beijing more complicated, pushing Taiwan to  diversify its economic partnerships, especially with India. This strategy is part of Taiwan’s  southbound policy, which makes India a major partner to counterbalance China. Moreover, India, as  a member of the Quadrilateral Security Dialogue (QUAD), must balance its strategic interests in the region by cooperating with key partners. This cooperation not only enhances India’s security capabilities but also strengthens its position in countering China’s growing influence. As part of the  QUAD, India is encouraged to support a free and open Indo-Pacific, which aligns with Taiwan’s  interests as well. Therefore, to reduce its dependence on China, India encourages Taiwanese  companies to set up operations on its territory through the “China Plus One” initiative. Trade  between India and Taiwan has almost doubled since 2018, reaching more than 10 billion dollars in  2023. Consequently, taiwanese investments in India have generated 170,000 jobs. Recently, the  Indian Minister of Foreign Affairs has emphasised the growing importance of technological  cooperation, especially in electronics and semiconductors. Taiwan, as a world leader in microchips  with TSMC, is a priority partner for New Delhi. India wants to attract TSMC, but for the moment  the company is prioritising its relations with the United States. Despite this, technological  exchanges are diversifying into other sectors, such as the automobile industry. This cooperation  offers India opportunities to strengthen its industry, but it still has to overcome the challenge of  attracting the biggest Taiwanese actors. By strengthening economic and technological ties with  Taiwan, India can reduce its dependence on China and build alternative supply chains, as well as  Closer relations with Taiwan also help India balance power in the Indo-Pacific region and signal to  China that it has other strategic options.

III. The regional and global implications of the India–China–Taiwan triangle

The Indo-Pacific region is experiencing increasing tensions, notably due to China’s  ambitions in the South China Sea and Taiwan. Therefore, India is seeking to maintain a balance  between its relations with China and the strengthening of its ties with Taiwan. Historically, India has  already had to manage the balance of power, notably during the Cold War between China and the  USSR. Today, India must anticipate the consequences of a possible invasion of Taiwan by China. A  Chinese success would weaken American influence and push countries in the region to reconsider  their alliances. It could also increase Chinese military pressure on India’s borders. A Chinese failure  could also heighten tensions along the Line of Actual Control (LAC), which is the disputed border  area between China and India. Finally, a conflict in the Taiwan Strait would disrupt Indian maritime  trade routes, hence the need for India to adopt a proactive policy to preserve its interests and  regional stability.

Taiwan occupies an ambivalent place in Sino-Indian relations, being able both to strengthen strategic cooperation with India and to aggravate tensions with China. However, economic  exchanges remain modest, but technological partnerships, such as the one between PSMC and Tata  for a semiconductor factory in India, demonstrate a growing rapprochement. These initiatives  irritate Beijing, which considers any link with Taiwan as an infringement on its sovereignty. The re election of Modi and the congratulations from the Taiwanese president recently provoked a strong  reaction from Pekin. For India, Taiwan represents a strategic lever in the face of Chinese  aggressiveness, notably after the 2020 border attacks. However, India remains cautious and avoids  any explicit political statement about Taiwan so as not to compromise its position on “One China.”  More specifically, the visions of the two partners diverge: India prioritises the economy, while  Taiwan wishes for greater political engagement. The two countries are therefore continuing to get  closer with their respective goals. In the end, Taiwan is both a strategic catalyst for India and a  factor of tension with China, requiring careful diplomatic management from India’s government.

In conclusion, Taiwan occupies a key strategic position in Sino-Indian rivalry. Despite its  traditional commitment to the ‘‘One China principle’’, India sees the island of Formosa as an  essential economic partner to counterbalance China’s growing power in the Indo-Pacific. Relations  between India and Taiwan have intensified over the past five years, particularly following tensions  between India and China over the Himalayan border in 2020. In addition to shared democratic  values, Taiwan is a strategic axis for India, particularly the supply of advanced technologies such as  semiconductors. India is therefore trying to strike a balance between supporting the status quo by  strengthening its unofficial ties with Taiwan and avoiding offending China. Economic ties are  growing, particularly in the technology sectors, where Taiwan is a major actor. However, this  partnership remains a sensitive area for China, which sees any relationship with Taiwan as a threat  to its sovereignty. India is therefore seeking to preserve its strategic interests while sending a clear  message to Beijing about its desire to diversify its alliances. Although modest, the exchanges  between India and Taiwan reflect a strategic importance in the Indo-Pacific region, redefining the  balance of power in a region crucial to global security and the global economy.

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