“The New Southbound Policy is a prime pillar of the national development strategy by President Tsai Ing-wen,” the office said in a press release, adding it pursues stronger relations with ASEAN, South Asian countries, Australia and New Zealand, covering trade and investment, agriculture, culture, education and tourism.

In the sphere of economic cooperation, priority is given to industrial development, infrastructure renewal and construction as well as bolstering of trade, the representative mission said. Taipei will also provide financial support to Taiwanese firms aiming to penetrate markets in the above regions, with an emphasis on the services industries.

In terms of human exchange, the policy will adopt a “people-centered” approach, encouraging collaboration among young scholars and students and industry experts.

“For resource sharing, Taiwan will seek bilateral and multilateral partnerships using the country’s capacities in agriculture, culture, medicine, technology and tourism,” the mission said. “Buttressing regional connectivity entails institutionalizing various channels of bilateral and multilateral partnerships.”

The grand scheme, announced on the inauguration of Tsai on May 20, differs from previous approaches, according to policy experts, reinforcing a multilayered and multifaceted cooperation. 

Previous presidents Lee Teng-hui and Chen Shui-bian had attempted similar measures, but to little avail, they noted, adding expectations would be different this time around.

Lai I-chung, deputy chief executive of the Democratic Progressive Party-affiliated Taiwan Thinktank, reported, “China’s economy is slowing down and many Taiwanese businesses are actively looking to other markets for growth. After years of reconstruction, ASEAN is gradually regaining its economic prosperity.”

The policy is riding on the wave of surging Taiwanese investments in ASEAN, which has attracted increasing foreign investments following the launch of the ASEAN Economic Community last year.

Experts have argued that the policy is also expected to run into headwinds, as Taiwan is embroiled in a territorial dispute with the Philippines and Vietnam over the Taiping Island in the South China Sea, and capitals around the world have cut or curtailed ties with Taipei, succumbing to Beijing’s pressure.

Taipei has itself trimmed and streamlined diplomatic missions worldwide recently to align them with the New Southbound Policy.

Diplomatically recognized under Beijing’s purview by many nations, Taipei has faced hostile cross-strait currents since Tsai assumed office. Her Democratic Progressive Party has historically sought independence from the mainland, which sees Taiwan as one of its provinces under the enshrined foreign relations doctrine, the “One China” policy.

Diplomatic relations between Taipei and Seoul were terminated on Aug. 23, 1992, after Seoul officially established ties with Beijing.

By Joel Lee (joel@heraldcorp.com)