Historical Matrix of Taiwan and the Philippines: A Geopolitical Prelude
The prospects and challenges offered by geographical locations are impossible to deny or even ignore. The blessings and hardships grappled by nations and countries due to geography compel nations around the world to have different strategies and goals to be achieved and national dreams to be realized. Asia, the largest continent of the world- symbolizes the continent of diversity and the continent of complexities: diversity in terms of diverse nations, languages, cultures, multipronged geographical features, and complexities in terms of conflicts, wars over water, and natural resources.
“Everything has to do with geography (Judy Martz)â€
Taiwan situated at the junction of the East and South China Seas in the northwestern Pacific Ocean is 749 miles apart from the Philippines, which is situated in South East Asia. Taiwan, officially the Republic of China (ROC), is an island nation off the eastern coast of mainland China. Its political status is intricate, with the People’s Republic of China (PRC) claiming it as a breakaway province. Despite the claims, Taiwan maintains its own government, military, and currency and is recognized as an independent country by a select few nations. In contrast, the Philippines, an archipelago in Southeast Asia comprising over 7,600 islands, is renowned for its biodiversity, picturesque beaches, and vibrant culture. Having experienced centuries of Spanish colonization and subsequent U.S. occupation, the Philippines emerged as an independent republic. While both these nations differ in political status, size, and population, they share deep cultural and economic ties.
Delving into the Economic Engines: Taiwan and the Philippines
Economic interests rule the roost in the present globalized world. And it is the information technology sector that is dominating every other socio-economic phenomenon. Chips rules the technological era and Taiwan’s 15% of GDP depends upon the chips industry Taiwan produces almost 60% of the world’s semiconductors. Taiwan’s “silicon shield†is strong enough to provide an economic shield to its neighbors.
Taiwan’s economic prowess, particularly in manufacturing, contributes to its global leadership, notably in electronics and semiconductors. This success is attributed to strategic emphasis on manufacturing, and substantial investments in research and development, education, and infrastructure. Boasting a favorable business environment, a skilled workforce, and integration into global supply chains, Taiwan’s economic achievements are reflected in consistent high GDP growth rates, low unemployment, and significant export earnings, with electronics and machinery leading the way.
“The blood of a commonwealth is its currency and trade, its nourishment will come from the goods and services produced by the society†The Wealth of Nations by Adam Smith
In contrast, the Philippines emerged as a rising star in the services sector, with a notable focus on business process outsourcing (BPO). Fueled by a large English-speaking workforce, a robust education system producing skilled professionals, and competitive labor costs, the Philippines has become an attractive destination for BPO companies. Top of Form
The Chessboard of the South China Sea: Taiwan, the Philippines, and a Delicate Dance
In the South China Sea, stability, power, and harmonious actions are essential for nations strolling a tightrope between buddies and foes. The most recent four-hour assembly between Chinese President Xi Jinping and U.S. President Joe Biden in San Francisco underscored Taiwan’s importance because of the maximum sizable and probably dangerous trouble in U.S.-China members of the family. President Xi expressed China’s preference for peaceful reunification with Taiwan but hinted at conditions allowing the use of pressure. President Biden reassured President Xi of the United States’ commitment to regional peace. Amidst increased Chinese military activity around Taiwan, the delicate ballet in the South China Sea revolves around the contentious issue of sovereignty over islands, reefs, and atolls.
Taiwan, adhering to the “One China” policy, aligns its claim with the People’s Republic of China (PRC), mirroring China’s expansive stance over the entire region. In contrast, the Philippines vehemently contests China’s claims, particularly within the Spratly Islands, emphasizing its own territorial rights. As China’s economic and military influence grows, tensions rise with neighboring claimants like Taiwan and the Philippines, perceiving China’s actions as threats to their sovereignty and security. The United States, a key regional player, intervenes to maintain a balance of power. Amid this complex interplay, Taiwan and the Philippines cautiously navigate relations with China, employing diplomatic dialogues and legal proceedings.
Bridging Waters with Culture and Education: The Taiwan-Philippine Nexus
Water is life and civilizations around the world grow and decay on water. Whatever life represents depends upon the availability of water. Although, the world has achieved unfathomable milestone in the field of technology however still water politics and blue economies still attracts all major powers. Besides this, all over the world, a multitude of tangible or intangible heritage is directly linked to water. This heritage comprises objects, practices, and traditions that facilitated human development over millennia by ensuring biological and cultural needs associated with water, which is not only essential for drinking, farming, and agriculture but also enables transportation and connectivity.
The Philippines and Taiwan, situated amidst the South China Sea and the Pacific Ocean, share a dynamic interplay of migration, with a substantial flow from the Philippines to Taiwan. Originating in the late 1980s to address labor shortages and demographic shifts, Taiwan’s foreign labor force has swelled to over 700,000, with 150,000 hailing from the Philippines only. These workers contribute significantly to Taiwan’s manufacturing and caregiving sectors, embodying approximately 60% and 36% of the foreign workforce, respectively. Beyond labor dynamics, some 20,000 foreign workers engage in Taiwan’s distant water fishing sector. Remittances from overseas Filipino workers, totaling US $30.1 billion in 2019, constitute 9% of the country’s GDP. There are also collaborative efforts between Taiwan and the Philippines in the educational sector, exemplified by scholarship programs and partnerships with institutions, attracting Filipino talents to study in Taiwan. The “New Southbound Policy” by President Tsai Ing-wen amplifies people-to-people exchanges, fostering deeper ties in education, tourism, and culture. As both nations strive for complementarity, Taiwan’s appeal as an ideal destination for Filipinos pursuing higher education is underscored by its safety, cultural richness, affordability, and world-class academic resources. This nexus not only bridges waters but also intertwines the cultural and educational fabric of Taiwan and the Philippines.
Treading the Economic Seas: Rivalry and Rapport between Taiwan and the Philippines
In the complex geopolitical landscape of the South China Sea, Taipei’s quest for acknowledgment and respect from Manila unfolds against a backdrop as tangible as the sea’s expansive horizon. Despite underlying tensions, the bilateral relations between Taiwan and the Philippines showcase stable economic and people-to-people connections. Taipei, aligning with its “New Southbound Policy,” strategically positions the Philippines as a pivotal market and gateway to other ASEAN nations. The data from the Philippine Statistics Authority in 2022 underscores Taiwan’s significance as the Philippines’ 9th major trading partner and 8th export market. Bilateral trade, fluctuating between USD $8 billion to $12 billion annually over the past decade, indicates economic resilience. Areas such as agriculture, green technology, fisheries, law enforcement, climate change, education, and people-to-people exchanges emerge as fertile ground for cooperative development, offering a trajectory of mutual benefit. While robust economic and labor ties thrive, maritime disputes, particularly in fisheries and the South China Sea, persist as points of contention. Taiwan exercises prudence in navigating the maritime realm, considering the evolving U.S. stance on the South China Sea, which may dissuade parties, including Taiwan and the Philippines, from resorting to force in pursuit of territorial claims and maritime interests. In this economic seascape, the relationship between Taiwan and the Philippines is marked by elements of rivalry and rapport.
Challenges and Opportunities
Amidst the geopolitical complexities surrounding the South China Sea, Taiwan faces challenges and opportunities that stem from China’s assertive actions and territorial claims. China’s contentious “ten-dash line” in its national map has intensified disputes, causing concern among Southeast Asian nations, including the Philippines. As U.S. treaty allies, both the Philippines and Japan are positioned close to Taiwan, with the U.S. establishing military bases in strategic locations, potentially impacting regional dynamics. While Taiwan confronts military threats, its economic equilibrium with China reveals interdependence, notably in the semiconductor industry. Taiwan’s exports to China contribute significantly to its economic growth, highlighting the delicate balance between reliance and vulnerability. However, Taiwan seeks alternatives by exploring new markets and manufacturing bases, emphasizing the need for a diversified approach. As Taiwan grapples with economic challenges, its role in global supply chains, particularly in semiconductors, underscores its significance beyond technological prowess, calling for international recognition and support.
In a parallel narrative, the Philippines, under President Ferdinand Marcos Jr., navigates economic successes and challenges. The unveiling of China’s controversial new “ten-dash line” map for the South China Sea this 12-month heightened tensions with Southeast Asian nations, including the Philippines, Malaysia, and Vietnam, all of which assert claims to the contested waters. The Philippines, as a U.S. Treaty ally, unearths itself strategically positioned near Taiwan, with new U.S. Navy bases planned in its northern provinces and Palawan. The proximity to Taiwan and the South China Sea underscores the delicate balance the Philippines must strike in maintaining economic partnerships and addressing security concerns in a region faced by geopolitical complexities.
Future Outlook
In contemplating the future trajectory for Taiwan and the Philippines, Taiwan’s economic vigor and innovation come into sharp focus amidst military threats and vulnerabilities, particularly in the semiconductor industry. Proactively diversifying markets and manufacturing bases, Taiwan seeks to mitigate dependence risks, emphasizing the imperative of global support beyond its technological prowess.
Conversely, the Philippines, under President Ferdinand Marcos Jr., confronts a landscape of economic triumphs and challenges, prioritizing the delicate equilibrium between addressing inflation, stabilizing prices, and steering economic growth. Its strategic proximity to Taiwan, coupled with its role as a U.S. treaty ally, adds layers of complexity, requiring adept navigation of economic partnerships and security considerations.
As the future unfolds, Taiwan and the Philippines share a common challenge of harmonizing national interests, fostering economic growth, and navigating geopolitical realities. The pursuit of diplomatic dialogues, legal avenues, and strategic alliances becomes pivotal, with the nexus of culture and education emerging as a promising avenue for fortifying ties.
