The ongoing conflict between Hamas and Israel has significant implications for Taiwan, which is closely monitoring the situation as it navigates its own relationship with China. Taiwan's observations of the Hamas-Israel conflict highlight the importance of defense infrastructure and international alliances, particularly in the face of increasing Chinese pressure. Iran has warned against further Israeli aggression towards Gaza, raising concerns about a potential two-front war and the possibility of Iranian involvement. The conflict has already resulted in at least 4,200 casualties, serving as a stark reminder of the importance of defense preparedness for Taiwan [f1e80135].
In a recent speech at the ONE TAIWAN 2023 symposium in Tokyo, Frank Hsieh, Taiwan's Representative to Japan, emphasized the need for solidarity between Japan and Taiwan to defend freedom and peace in the region. He pointed out that Taiwan's strategic location makes it a target for Beijing's expansionist goals. Hsieh warned that a Chinese invasion of Taiwan would not only be a major defeat for democracy but would also inflict trillions of dollars in economic losses globally. He called for treating the Taiwan issue as an international concern and underscored the importance of demonstrating deterrence to maintain peace [e7bafd66].
The dynamics of Israel-Taiwan relations are also evolving in this context. Core values shared by both nations include democracy, freedom, rule of law, and human rights, which are central to their security strategies. Both countries face security threats and rely heavily on U.S. support. Historically, their relations have evolved through four distinct periods: 'security-first' from the 1950s to the 1980s, 'transition' from 1993 to 2007, 'honeymoon' from 2008 to 2015, and the current 'it's complicated' phase since 2016. The competition between the U.S. and China significantly impacts their relations, particularly following Israel's arms sales to China in the 1990s, which created tensions [e56c744a].
In light of the recent Hamas attack on October 7, 2023, Taiwan has expressed strong support for Israel, reflecting an increased interest among Taiwan's political elite in Israel's defense strategies. Despite Israel's cautious approach towards China, future cooperation between Israel and Taiwan may expand as both nations seek to bolster their security and economic ties amid global tensions [e56c744a].
Moreover, the Taiwan Strait plays a pivotal role in global commerce, handling approximately $586 billion in trade annually. Taiwan is a critical player in this economic landscape, producing over 90% of the world’s semiconductors. Disruptions in this region could potentially erase trillions from the global GDP, affecting major economies like Japan and South Korea, which rely heavily on the strait for their imports and exports. In 2022, Japan depended on the strait for 32% of its imports and 25% of its exports, totaling $444 billion, while South Korea relied on it for 30% of imports and 23% of exports, valued at $357 billion. Australia also exported 27% of its goods through the strait, amounting to $109 billion. With China having $1.3 trillion in trade flows through the strait annually, its stability is crucial for global economic health [5151a94a].