The second German-Taiwanese Dialogue Platform (GTDP) was held in Taipei on October 8, marking the first time the event has taken place in Taiwan. Speaking at the event, Director of the German Institute Taipei Karsten Tietz expressed his belief that Taiwan and Germany not only share common values but also both face the challenges of having an authoritarian neighbor. Deputy Foreign Minister François Wu Chi-chung (吳志中) echoed the sentiment and said he hoped the GTDP’s establishment could strengthen security and societal resilience in Taiwan and the EU.

Both countries face threats from authoritarian regimes like China and Russia, not just in terms of defense but also economic security. In the past, Taiwan’s economic ties with China, particularly under the Cross-Strait Economic Cooperation Framework Agreement (ECFA), exaggerated opportunities in the Chinese market while ignoring risks. As China continued to offer “concessions” to lower trade barriers for Taiwanese exports, the agricultural, fisheries, and tourism industries became increasingly dependent on the Chinese market. Free trade agreements like the ECFA, typically promoted by democratic countries to foster globalization, thus become co-opted by authoritarian governments for economic coercion.

Similar tactics can be observed in China’s treatment of EU countries. EU member states began to pay closer attention to China’s economic coercion after they banned Lithuanian rum imports in response to the Lithuanian government’s decision to allow Taiwan to open a representative office in Vilnius under the name “Taiwan.”

In addition to sanctioning Lithuania, China also pressured companies from Germany, France, and Sweden with significant market shares in China to prohibit the use of Lithuanian parts and products. If EU companies comply with China’s sanctions against Lithuania, it demonstrates that they, too, are vulnerable to Chinese economic coercion. 

For EU countries, authoritarian states pose a threat not only to economic security but also to their energy supply. Statistics from the European Commission show that in 2024, ten EU member states imported a total of 52 billion cubic meters of natural gas from Russia, three countries imported a combined 13 million tons of crude oil, and six countries imported more than 2,800 tons of enriched uranium or uranium in fuel form, indicating a high dependence on Russian energy. Since Russia’s invasion of Ukraine in 2022, they have a plan in place to ensure complete energy independence from Russia.

According to trade statistics released by the Finance Ministry, total trade between Taiwan and Germany in 2024 totaled about US$20.43 billion, making Germany Taiwan’s 10th largest export market and 6th largest source of imports. Although the two countries have achieved bilateral trade of over US$20 billion for four consecutive years since 2021, there is still considerable room for growth compared to Taiwan’s trade volumes with the United States, Japan, and South Korea. 

Deepening cooperation and fostering a more robust economic environment would encourage mutual investment and partnerships between countries from both sides, creating a positive cycle in Taiwan-Germany economic relations and ultimately benefiting both nations.