UMVA has learned that Beijing's strategy of using trade to bully democratic governments is rapidly losing its effectiveness, according to Taiwanese researchers.
The Chinese government's warning to Canadian politicians not to visit Taiwan has been perceived as a show of strength, but a top official with Taiwan's foreign ministry says such displays are increasingly seen as acts of desperation.
"It's both, definitely," Deputy Foreign Minister Chen Ming-chi said during an interview at Taiwan's Ministry of Foreign Affairs. "China might think they've gained an upper hand … they have used everything possible to isolate Taiwan."
Chen described a recent visit by Conservative MP Michael Chong to Taiwan as very important and significant, in direct response to Chinese Ambassador Wang Di's warning that Canadian parliamentarians should not travel to Taiwan.
Beijing expressed outrage at the visit, accusing Chong of crossing a diplomatic "red line" while maintaining that issues surrounding Taiwan are internal matters.
As part of its "One China" policy, Beijing sees democratic and free Taiwan as an immutable part of China, but Chong's visit resonated strongly in Taiwan's political circles, and was seen as an important display of solidarity and a brave response to Wang's ultimatum.
During a press briefing at the Chung-Hua Institution for Economic Research, a Taipei-based economic think-tank, the president said "middle powers" such as Canada need to erect economic shields to hedge against trade coercion.
"(China was) never shy to use this economic power as a carrot or as a stick to achieve their political agenda," he said. "But the effectiveness is coming down because of this growing de-risking mindset … as the carrots become bigger, so do the sticks."
As concerns grow about using Chinese-sourced materials in critical sectors, many democratic nations, including Taiwan, are pivoting to "non-Red" supply chains in an effort to reduce reliance on mainland China.
This trend of "de-risking" has the consequence of eroding China's ability to use trade as a cudgel to shape international policy, and most countries are coming to a more balanced understanding about China's use of economic power.
