India sends tens of thousands of workers to Taiwan, and this irritates China
India forges closer economic ties with Taiwan with a plan to send tens of thousands of workers to the island as early as next month, senior officials familiar with the matter said, angering neighboring China . The news was reported by the Economic Times .
Taiwan could hire up to 100,000 Indians to work in factories, farms and hospitals, said the officials, who asked not to be identified because the discussions are private. The ROC has a severe labor shortage that impedes the growth of its economy. India has a large number of well-educated workers seeking higher incomes. The exchange is soon done.
The two sides are expected to sign a job mobility agreement as early as December.
Taiwan's aging society means it needs more workers, while in India the economy is not growing fast enough to create enough jobs for the millions of young people entering the job market every year. Taiwan is projected to become a “super-aged” society by 2025, with older adults expected to make up more than a fifth of the population.
But the employment agreement risks increasing geopolitical tensions with China, which opposes any official exchange with Taiwan, a self-governing island that Beijing claims as its own. China is separated from Taiwan by a narrow strait and shares a Himalayan border with India. It has also been India's largest source of imports for the last two decades.
A pact with Taiwan does not mean India is discarding the “One China Policy,” a position that recognizes the island as part of China. However, New Delhi has not reiterated this position in public documents and has instead fostered an active unofficial relationship with Taiwan. Even if the recognition of Taiwan is not formal, in fact 100,000 Indian workers will go to work in a state that does not exist and will follow its laws, all with India's approval.
People familiar with the discussions are still working out a mechanism to certify the health of Indian workers willing to relocate to Taiwan, so negotiations are in the final stages of addressing practical factors.
In Taiwan, where the unemployment rate has fallen to its lowest level since 2000, the government needs workers to run a $790 billion economy. Unlike other countries with which New Delhi has struck deals, Taiwan offers Indian workers pay parity with locals and insurance policies to sweeten the deal. An intelligent immigration policy because it is not permanent (contracts are not permanent), controlled by the two states and which provides fair and profitable conditions for everyone. The exact opposite of what happens with irregular immigration.
In India, which this year overtook China to become the world's most populous country, the government is pushing jobs pacts with developed countries facing an aging workforce.
So far, the Indian government has signed agreements with 13 countries, including Japan, France and the United Kingdom, and is discussing similar agreements with the Netherlands, Greece, Denmark and Switzerland.
Ties between India and China have been strained since a border clash occurred in 2020, the worst in forty years. Since then, both countries have moved thousands of soldiers, artillery guns and tanks to the Himalayan region. Diplomatic talks have made little progress and in August China released a new map claiming some Indian-controlled territory.
Three former Indian military chiefs, who resigned last year, visited Taiwan for a security conference this year – a trip that drew objections from Beijing. Taiwan and India also have an investment promotion pact signed in 2018.
Thanks to our Telegram channel you can stay updated on the publication of new Economic Scenarios articles.
The article India sends tens of thousands of workers to Taiwan, which irritates China comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/lindia-manda-decine-di-migliaia-di-lavoratori-a-taiwan-e-questo-irrita-la-cina/ on Sun, 26 Nov 2023 10:37:14 +0000.