Taiwan, locked in a political fight with China, is exploring alternatives to its investment and trade portfolio that is uncomfortably tied to China and is seeing India as the choice destination for further investment, trade, and partnership. Democratic Taiwan is at odds with autocratic China and intellectuals in Beijing and Washington think that it really wants to assert de facto independence through economic, political, military, and trade so even an eventual integration with China will preserve its autonomy.
At present Taiwan has invested USD 200 billion in China and over 30% of its trade is with that country. Compared to this, it has invested only USD 200 million in India and the USD 2.5 billion trade valuation only accounts for .67% of its total trade. Experts see this as major opportunity that Taiwan will grab.
Taiwan has large complementary skills that they can use to mutual benefit and without any disagreements. For example, Taiwan has a large hardware base and India a large software base. Together, they can easily assume responsibility for large-scale manufacturing, hardware maintenance, software development, and software maintenance from many companies.
Further, as seen from their experience in two Taiwanese experts say that labor in India is not only cheaper than China but also qualitatively better. The biggest hurdles to growing this relationship would be cultural orientation and understanding, which will develop over a period of time.