According to reports, Taiwan has renewed its thrust to deepen manufacturing ties with India.

This comes amid heightened tensions with China and a US-driven effort to look at alternatives to Beijing in setting up factories for products ranging from smartphones to aeroplanes.

A Taiwanese delegation led by its deputy economic affairs minister Chern-Chyi Chen arrived in Delhi on Wednesday expected to go to important cities, including Chennai.

The delegation also has members from Taiwan’s trade body Chinese National Federation of Industries.

Chen says, “Our companies tend to be small and medium enterprises. 97 percent of our economy is supported by these small and medium enterprises. Secondly, our companies tend to be very quick at technology and work in the business model of OEM. Taiwanese companies’ business model requires the utmost trust from customers.”

Taiwan’s focus on partnering with India comes at a time when tensions between it and China are at an all-time high. The friction peaked after the People’s Liberation Army (PLA) conducted military drills following the recent visit of Nancy Pelosi, the Speaker of the US House of Representatives, to Taiwan, which China views as a breakaway province.

Reports suggest that, for the industry, the interests are primarily from two sources: Taiwanese business interests are dependent on China, and they wish to change that; and secondly, the US’s stand vis-à-vis China has also been adversarial.

Taiwan-India ties have grown organically over the years since the establishment of economic and cultural centres in New Delhi and Taipei nearly three decades ago.

Ajai Chowdhry, cofounder, HCL says, “Taiwan is actively strengthening ties in electronics and several areas. So far, Taiwanese companies have not focused on engaging with the product development and R&D talent of India. I am sure they would soon move forward in that direction.”