Chairman McKay and members of the Standing Committee on National Defence, good afternoon.
I would like to start by thanking you for the invitation to appear before this committee. I appreciate every opportunity to share my views from Taiwanese perspectives.
The topic today is the situation in the Indo-Pacific. As I dived into this topic and tried to sort out my findings, I encountered the difficulty of focusing only on the Indo-Pacific. The more I looked into it, the more I was convinced that no region in the world is exempt from the geopolitical complexities we face today. What is happening in the Indo-Pacific is unavoidably related to what is taking place in other parts of the world and vice versa, notably in Ukraine, central Asia, Africa and the Middle East.
To many of us, the most unnerving geopolitical risks today are to be found in either the Russia-Ukraine war, the U.S.-China rivalry or the North Korean aggression and tension in the Taiwan Strait. Perhaps the war in Ukraine looms larger and more imminent than the other potential conflicts. However, as we have witnessed, Russia, China and North Korea are gradually moving to cuddle up more closely with each other, forming a cohesive alliance to help buttress their regimes and swat what they perceive as external pressures. We must realize that our struggle goes beyond the Indo-Pacific.
In between Russia and China, there has always been more of a mutually supportive economic and diplomatic relationship, not to mention hard-core military co-operation. However, as the Russian invasion of Ukraine has gradually faced uphill battles, the Russia-Chinese relationship seems to have strengthened into a stealthy, semi-military alliance which North Korea was recently invited to join as part of a trilateral bloc.
One dictator is hard enough to predict; imagine three.
Antony Blinken, the U.S. Secretary of State, gave a major speech at the School of Advanced International Studies, SAIS, at Johns Hopkins University last week. He said:
What we're experiencing now is more than a test of the post-Cold War order. It’s the end of it.... There is a growing recognition that several of the core assumptions that shaped our...post-Cold War era no longer hold....
Decades of relative geopolitical stability have given way to an intensifying competition with authoritarian powers, revisionist powers.
Media quickly picked up the gist of Mr. Blinken's speech: The post-Cold War era is over. A new one is forming.
The proposal from Mr. Blinken is to adopt a new concept of “diplomatic variable geometry” to cope with the challenges of the incoming era. I do not fully grasp the meaning of the concept yet, but I'm sure that as we forge ahead, the rivalries between democracies and autocracies will only magnify as time goes on.
To conclude, I would like to point out that at the beginning of this year, we might still have thought that the most serious geopolitical uncertainties came from the Ukraine theatre, the U.S.-China confrontation, the Korean peninsula and the Taiwan Strait, as I mentioned earlier. However, as we look forward from now, the somewhat unexpected rapid downturn of the Chinese economy and its spillover effect may well overshadow other regional concerns. Potentially, China's economic failure could be the biggest geopolitical risk in the years ahead.
What we have seen in the Chinese economic difficulties may be only fermenting. If China's economy continues to deteriorate, and with nothing to hold it back, the consequences will most likely not stop at its economy but will be a combination of social, economic and political emergencies. There will likely be a systemic crisis and overall transformation affecting every aspect of China and spilling over to regions beyond.
In short, there is a huge uncertainty hovering over China.
For Taiwan, much is at stake in terms of our close trade relations.
I'm ready to respond to your questions.
Let me stop here. Thank you.