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Taiwan hits out at Beijing ‘dollar diplomacy’, warns developing nations of debt trap
May 1, 2018
TAIPEI – Accusing China of using “dollar diplomacy”, Taiwan has announced immediate termination of diplomatic relations with the Dominican Republic, and has terminated “all co-operative projects and assistance”. Taiwan and the Dominican Republic have had diplomatic relations since 1941.
“Since wresting away diplomatic ally Panama in June 2017, China has offered huge financial incentives to the Dominican Republic, successfully enticing it to end 77 years of ties with Taiwan on May 1,” Taiwan’s Ministry of Foreign Afairs (MOFA) said in a statement.
“The Republic of China (Taiwan) is deeply upset by China’s actions.”
The MOFA statement continued: “The Ministry condemns China’s contemptible decision to use dollar diplomacy to wrest away Taiwan’s diplomatic allies, and its heavy-handed methods of suppressing Taiwan’s international participation.
“Beijing’s crude attempts at foreign policy can only drive a wedge between the two sides of the Taiwan Strait, erode mutual trust, and antagonise the people of Taiwan.
“MOFA wants to use this opportunity to remind the international community of the lack of follow-through on China’s promises to former diplomatic allies of Taiwan.
“This is exemplified by China’s failure to deliver on a pledge of US$1 billion in assistance to Costa Rica to build a refinery, and US$400 million to construct highways, when it established ties with the country in 2007.
“More recently, since establishing relations with Sao Tome and Principe in December 2016, it has failed to uphold its pledge to provide US$140 million in aid. Agreed-upon plans to build an airport and deepen a harbour have also been shelved.
“As former US Secretary of State Rex Tillerson once said, Beijing ‘encourages dependency using opaque contracts, predatory loan practices, and corrupt deals that mire nations in debt and undercut their sovereignty, denying them their long-term, self-sustaining growth’.
“Developing nations must beware the danger of falling into a debt trap when engaging with China.”
MOFA said: “We believe that, as the world moves towards reconciliation and dialogue, as the international community moves towards regional peace and stability, including on the Korean Peninsula, as it moves towards the improved welfare of all peoples, China is moving in the opposite direction.
“As it continues to raise military friction in the region, as it continues to manipulate the so-called ’one China principle’, it has created regional and cross-strait tensions.
“The measures taken by China have unilaterally imperilled the peaceful cross-strait status quo, and cannot be considered those of a responsible member of the international community. Such misguided actions should cease immediately.
“Although Taiwan faces serious diplomatic challenges, the Government will not bow to China’s pressure.
“We will work with friendly nations to fight for and solidify regional peace and stability, and ensure our rightful place in the international community. The nation’s diplomats, meanwhile, will continue to fight to defend the nation’s dignity and rights.”
