Taiwanese products power everything from iPhones and fridges to guided missiles. The island makes more than 60% of the world’s semiconductors. Yet for such an important place few countries recognise its government
with Taiwan—most recently Honduras, on March 25th—and around 50 since the 1970s. Why is the island losing its friends?
When it began, this diplomatic competition was about who ruled China. Both governments accepted that Taiwan was part of China, over which each claimed sovereignty. But over the years, Taiwan has changed. It long ago abandoned hope of reconquering the mainland, and no longer claims sovereignty over it. So it would accept countries having diplomatic relations with both it and the government in Beijing.
China also uses more underhand methods to win over Taiwan’s friends. David Panuelo, the outgoing president of Micronesia—which currently recognises China, but is considering switching to recognise Taiwan—describes offers of bribes by China to politicians, including envelopes of cash and trips in private jets. China may withdraw carrots, as well as proffering them. One option is to divert its legions of free-spending tourists. If carrots don’t work, out comes the stick.
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