UK Relations with Taiwan

Desmond Swayne Excerpts

Tuesday 24th October 2017 Westminster Hall

[Bob Blackman (Harrow East) (Con)]

I beg to move,

That this House has considered UK relations with Taiwan.

It is a pleasure to serve under your chairmanship for the first time in Westminster Hall, Mr Paisley. I place on record my entry in the Register of Members’ Financial Interests: along with many colleagues, I took part in the all-party parliamentary group visit last month to Taiwan, where we were hosted by the Government and businesses from across Taiwan. That is one of the great values of all-party parliamentary groups; we can visit countries and states around the world, report back to Parliament and brief Ministers and members of the Government who, despite the extremely hard work that they undertake, cannot be everywhere all the time. It is a vital part of our parliamentary work.

To set the scene, Taiwan is the 22nd largest economy in the world, with a gross domestic product of close to $530 billion. It is a growing country with a population of 24 million, concentrated around the coast of a volcanic island, and its industry is growing dramatically. It is a vibrant democracy and an open society, with opportunities to share our values of freedom, democracy, the rule of law and human rights. The UK and Taiwan have many shared interests in maintaining peace and stability not only in Asia but in the Asia-Pacific region in general.

Taiwan is also, of course, well known around the world for its high-tech information and communications technology industry. Its target of increasing and strengthening five key industries—the Asian silicon valley, biomedicine, green energy, smart machinery and defence—means ample opportunities for free trade between us and Taiwan. I am one of those who believe that in the Brexit era, we have an opportunity to be internationalist and broaden our horizons in terms of the countries with which we trade and opportunities to set up new arrangements around the world. Taiwan is one country where we have a huge opportunity, because we have such a strong base to build on.

Taiwan has been a World Trade Organisation member since 2002. Who knows where we will be after March 2019, but I suspect that given our involvement with countries such as Taiwan, we will have an opportunity to forge closer links and possibly a free trade deal and further co-operation with Taiwan post-Brexit. As our economic relationship is central, further improvements have been made. More than 300 UK companies have business operations in Taiwan already. I ask not only the Foreign and Commonwealth Office but the Department for International Trade to encourage more UK companies to set up trading links with Taiwan.

At the last count, Taiwan was the UK’s 39th largest export market and 28th largest source of imports overall. We exported £1.8 billion in goods to Taiwan in 2015, but imported £3.5 billion, giving a trade deficit of £1.7 billion. We have had a trade deficit in each of the last 10 years. It is important, in the post-Brexit world, to look to improve the importance and levels of our exports. Our exports to Taiwan peaked as long ago as 2010, so there is a lot of potential to improve on the position.

To give a brief history of Taiwan and our trade involvement, in 1950 we ended unofficial relations with the Republic of China following the Chinese civil war and recognised the People’s Republic of China, but we maintained our relations in Taipei and continued to conduct trade-related activities. In September 1963, a Government office was established in the UK by the name of the Free Chinese Centre, becoming the Taipei Representative Office in 2015. Obviously, there is a lot of opportunity there.

In 1976, we established the Anglo-Taiwan Trade Committee in Taipei, which ended up increasing our involvement with Taiwan overall. In 1993, the Anglo-Taiwan Trade Committee and the UK Education Centre merged to become the British Trade and Cultural Office, which became the British Office Taipei in 2015, to ensure that we extended the full scope of the work.

The Government’s position on Taiwan has been summarised in written evidence to the Select Committee on Foreign Affairs:

“Under the terms of the 1972 agreement with China,”

the Government

“acknowledged the position of the government of the PRC that Taiwan was a province of the PRC and recognised the PRC Government as the sole legal Government of China. This remains the basis of our relations with Taiwan.”

Will my right hon. Friend the Minister clarify, when he replies to this debate, our relations with China?

[Sir Desmond Swayne (New Forest West) (Con)]

I, too, have an entry in the register. Early in my ministerial career, it became abundantly clear to me what huge importance our principal ally, the United States, attaches to free movement within the South China sea. Does my hon. Friend agree that we must bear in mind in all our future relations with China the importance that our principal ally attaches to the South China sea?

[Bob Blackman]

The military position with respect to Taiwan and the statements made by the People’s Republic of China—not least this week, as representatives have met to determine their future strategy and reconfirm their view that Taiwan is a province of China—strengthens my view that we must stand steadfast with our allies in the United States and in Taiwan to ensure Taiwan’s future economic prosperity and independence.

--- Later in debate ---

[Bob Blackman]

I thank my hon. Friend for that intervention, I think. My view is that as a country we should not be going round trying to upset people across the world.

[Sir Desmond Swayne]

Can I take my hon. Friend back to his assertion that the Taiwanese people do not see themselves as Chinese? Part of the complexity of the issue is that some do. The tragedy was that Chiang Kai-shek saw precisely that identity, and it was that put him in the position of refusing the possibility of remaining in the United Nations when the People’s Republic of China became the proper representative of China and the Chinese.

[Bob Blackman]

My right hon. Friend tempts me to talk through the history. As he knows, the people of Taiwan have transferred from Japanese and Chinese rule to independence. They fiercely defend their independence from both Japan and China.