India Plans to Send Thousands of Workers to Taiwan, Potentially Angering China

By | November 10, 2023

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Accident – Death – Obituary News : India and Taiwan are strengthening their economic ties by planning to send a significant number of workers to the island nation as early as next month, according to senior officials familiar with the matter. This move, however, has the potential to raise tensions with China, India’s neighbor and Taiwan’s territorial claimant.

The officials, who requested anonymity as the discussions are private, revealed that Taiwan is considering hiring up to 100,000 Indian workers to address its labor shortage in sectors such as factories, farms, and hospitals. The two sides are expected to sign an employment mobility agreement by December, paving the way for this significant labor exchange.

Taiwan faces an aging population and requires a larger workforce to sustain its economy. Meanwhile, India struggles to generate enough employment opportunities for its burgeoning young population. Taiwan is projected to become a “super-aged” society by 2025, with the elderly comprising more than 20% of its population.

However, this employment deal may escalate geopolitical tensions with China, which vehemently opposes any official exchange with Taiwan. China considers Taiwan a part of its territory and has been India’s top source of imports for the past two decades. It is separated from Taiwan by a narrow body of water and shares a Himalayan border with India.

It is important to note that India’s engagement with Taiwan does not indicate a departure from its “One China Policy,” which recognizes Taiwan as a part of China. However, India has refrained from reiterating this position in public documents and has fostered an active unofficial relationship with Taiwan.

Arindam Bagchi, a spokesperson for India’s Ministry of External Affairs, stated that the India-Taiwan jobs pact is in its final stages of negotiation. Taiwan’s Ministry of Labor, when contacted by Bloomberg News, did not specifically comment on the India deal but expressed its openness to cooperating with countries that can provide workers.

The negotiations are also addressing the certification of the health of Indian workers willing to relocate to Taiwan. Details on this mechanism are still being worked out, according to sources familiar with the discussions.

Taiwan, whose unemployment rate recently reached its lowest level since 2000, requires a steady supply of workers to sustain its $790 billion economy. In a bid to attract Indian workers, Taiwan is offering them pay parity with locals and insurance policies, setting it apart from other countries with which India has signed agreements.

India, now the world’s most populous country after surpassing China this year, is actively pursuing employment pacts with developed nations grappling with aging workforces. The Indian government has already signed agreements with 13 countries, including Japan, France, and the UK. Additionally, discussions for similar arrangements are underway with the Netherlands, Greece, Denmark, and Switzerland.

India’s relations with China have been strained since a border clash in 2020, marking the worst confrontation in four decades. Both countries have deployed thousands of troops and military equipment to the Himalayan region since then. Diplomatic talks have made little progress, and tensions persist, with China releasing a new map in August that lays claim to certain Indian-controlled territories. Furthermore, three former Indian military chiefs visited Taiwan this year for a security conference, drawing objections from Beijing. Notably, Taiwan and India already have an investment promotion pact that was signed in 2018..