Taiwan rarely makes front page news in Canada, yet this self-governing democracy carries clear geopolitical significance.
As one of eight Canadian fellows recently selected to participate in a two-week immersive exchange program organized by Taiwan’s Ministry of Foreign Affairs, I now have a better understanding of why Taiwan is so important to Canada and the world.
At the Canadian Trade Office in Taipei, we met civil servants advancing Canada’s interests in Taiwan as part of an unofficial diplomatic framework shaped by Canada’s One China policy.
Adopted in 1970, this policy recognizes the People’s Republic of China, governed from Beijing, as the sole legitimate government of China. However, it allows Canada to maintain unofficial but substantial ties with Taiwan in areas such as trade, culture and civic engagement.
While the PRC claims Taiwan as part of its territory, Canada does not endorse or reject that claim. This intentionally ambiguous stance enables Canada to engage meaningfully with both Beijing and Taipei, reflecting the complexity of the region’s geopolitics.
During the fellowship, we learned that nearly half the world’s container traffic transits the Taiwan Strait, a 180-kilometre-wide body of water separating Taiwan from mainland China and linking the South China Sea to the East China Sea.
Canadian naval ships, including HMCS Ottawa and HMCS Vancouver, help ensure this route stays open — a matter of importance to Canada and Taiwan to ensure critical supply chains are not disrupted.
Canadian potash exports, for instance, fuel food production across Asia. In return, Taiwan sends Canada high-tech components that underpin Canada’s clean economy and digital transformation.
But Taiwan is more than just a shipping chokepoint. It is the beating heart of the global tech economy.
Approximately 90 per cent of the world’s most advanced semiconductors are produced on the island, powering everything from AI labs in Vancouver to electric buses assembled in Quebec.Â
During a workshop on chip manufacturing, experts shared that the factories where semiconductors are made — known as fabrication plants — consume a significant share of Taiwan’s overall energy. That’s why energy security and international partnerships to green its grid are among Taipei’s top priorities.
With abundant clean energy technology and critical mineral resources, Canada is well positioned to contribute.
Bilateral ties are already strong. In 2023, Canada exported $2.6 billion of goods to Taiwan — up significantly from recent years — and received $9.5 billion of imports from Taiwan.
Taiwan’s investment in Canada is growing as well, with battery production initiatives in B.C. and R&D partnerships in Ontario. The Foreign Investment Promotion and Protection Arrangement, signed last December between Canadian and Taiwan trade offices, is expected to further unlock two-way capital flows.
Meanwhile, Canadian entrepreneurs are receiving mentorship and matchmaking support through the Canadian Technology Accelerator in Taipei. The accelerator aims to help Canadian tech companies scale into Asian markets by facilitating introductions to potential investors, partners, and buyers in Taiwan’s innovation ecosystem.
But for all of these impressive economic ties, what struck me most was how freely Taiwanese people could speak and organize.
Freedom House gives Taiwan a 94 out of 100 rating — the second highest in Asia after Japan.
“Taiwan’s vibrant and competitive democratic system has allowed for regular peaceful transfers of power since 2000, and protections for civil liberties are generally robust,” reads the profile by Freedom House, a non-profit that monitors the state of democracy around the world.
This democratic resilience is an inspiration in a world where democratic norms are increasingly challenged.
Strengthen cooperation
So, what should Ottawa do to further strengthen this relationship and reinforce Canada’s strategic interests?
First, Ottawa should support Taiwan’s observer status at the World Health Assembly, the decision-making body of the World Health Organization. Taiwan’s exclusion since 2017 has limited opportunities for the global health community to benefit from Taiwan’s expertise and early warning systems.
Taiwan’s internationally praised response to COVID-19 showed how its inclusion could strengthen global health preparedness and cooperation at a time when shared challenges demand shared solutions.
Second, Ottawa should further deepen economic trade ties with Taiwan. Ottawa should explore joint R&D tax credits tied to semiconductor and battery supply chains, which are critical sectors to both countries.
Canada should also support Taiwan’s inclusion in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a free trade agreement between Canada and 10 other countries in the Indo-Pacific. Doing so would anchor the Canada-Taiwan relationship in a broader framework of rules-based trade among like-minded economies.
Third, Ottawa should appoint a dedicated Indo-Pacific deputy minister to strengthen cooperation with Taiwan while navigating the boundaries of the One China policy. An official, cabinet-level visit to Taiwan would also send a constructive signal of Canada’s long-term commitment to deeper engagement.
Prior to the fellowship, Taiwan was a faraway place on a map. Now, I understand its significance and the benefits of deeper ties.
Taiwan’s future and Canada’s interests intersect more than ever. It’s time our policies caught up with the possibilities.
Wouldn’t it be great if all countries in the world could get along like Canada and Taiwan. Free trade and all helping each other. Peace throughout the world.