Tien, Chung-kwang
Deputy Minister of Foreign Affairs
Republic of China (Taiwan)
November 17, 2021
(As Delivered)
Ladies and gentlemen:
Good afternoon!
On behalf of the Ministry of Foreign Affairs, it is a great honor to participate in this important event organized by the Taiwan ASEAN Studies Center of the Chung-Hua Institution for Economic Research.
In recent years, the Indo-Pacific region has accounted for 50 percent of the total international trade volume and 60 percent of global gross domestic product. The intense strategic competition in the international arena has also brought about dramatic changes for the geopolitical and economic landscapes of the region.
Due to the COVID-19 pandemic and the US-China trade war, many multinational corporations and enterprises have been under ever-growing pressure to consider diversifying their supply chains away from China.
Southeast Asia is of particular importance to the Indo-Pacific region. It forms not only a major hub for global supply chains but also the epicenter of the rivalry between the US Indo-Pacific Strategy and China's Belt and Road Initiative. Against this geopolitical background, Southeast Asia has become more attractive to foreign investors than ever before.
Thus, the development of Southeast Asia, the world's fastest-growing region, will surely shape the 21st century in many ways. Southeast Asian countries and Taiwan enjoy many similarities, and our economies are highly complementary. Taiwan is willing and able to engage in cooperation with its ASEAN partners based on our shared interests and values.
Taiwan seeks to leverage its competitive industries, including the semiconductor, ICT, and machinery industries, and work together with ASEAN countries to contribute to the region's economy, sustainable development, and prosperity. With this in mind and in the spirit of “Taiwan helps Asia, and Asia helps Taiwan,” Taiwan launched the New Southbound Policy in 2016.
To date, we have reached many achievements, including the signing of more than 80 agreements and MOUs with partner countries. These have covered a wide range of areas, such as trade, education, agriculture, and science and technology. Over the first half of this year, Taiwan investment in New Southbound Policy partners increased by 58.8 percent year-on-year. Likewise, the investments of these partner countries in Taiwan increased by 57.5 percent. Taiwan investment in ASEAN countries constitutes 35.1 percent of its total overseas investment, exceeding the 25.8 percent for China.
As we move toward the postpandemic era, the New Southbound Policy will continue to serve as Taiwan's guide for engaging with the region. Through it, Taiwan will seek to further strengthen links with strategic partners, such as the United States, Australia, India, Japan, and, of course, ASEAN countries. We are committed to integrating all resources, continuing existing projects, and proactively exploring new areas of cooperation so as to further amplify the policy's impact.
The New Southbound Policy not only has helped develop Taiwan's external trade relations but also has created new opportunities to promote exchange between Taiwan and partner countries, so that we all can jointly advance regional prosperity.
Taiwan may be small in terms of territory, but it has a large regional presence and role to play. Therefore, we look forward to joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and signing bilateral free trade agreements and digital trade agreements with nations throughout the region. Together, we can launch a new economic outlook for the postpandemic era.
Lastly, I would like to convey my sincere appreciation to the Taiwan ASEAN Studies Center for making this seminar possible. It provides a great opportunity for us to hear the insights and suggestions of experts from Southeast Asia. I wish today's event every success. Thank you.