Taiwan pitch for close ties on mineralsTop envoy predicts...

Taiwan pitch for close ties on minerals

Top envoy predicts growing demand for rare earths & energy

Adrian Rauso

Taiwan’s top emissary Down Under believes Australia can break the economic dominance of China and declared his country open for business when it comes to Australia’s minerals, particularly rare earths and iron ore.

Douglas Hsu, Taiwan’s chief representative in Australia, was in Perth on Friday as part of a continuing mission to strengthen investment ties between the countries.

China is eager to take back control of Taiwan and the Asian island’s status as the world’s premier producer of microchips means military conflict would significantly impact the global supply of electronics, cars and advanced weaponry.

Australia shares similar values to the democratically governed Taiwan, according to Mr Hsu, and our heavy reliance on China as a trading partner also makes us susceptible to coercion.

“We (Australia and Taiwan) are like minded, and we both have this experience being coerced economically (by China),” he told The West Australian in an exclusive interview.

“Australia is the most, not one of, the most important partner for Taiwan when it comes to mining and energy. That is why we have to maintain and grow this relationship with Australia, and Western Australia is definitely at the core.

“Doing this will help both of us to keep diversifying economically.”

About 70 per cent of Taiwan’s energy is imported from Australia and Mr Hsu sees a raft of opportunities for Taiwan’s cashed-up businesses to invest further in Australia’s “abundant” natural resources.

Rare earth elements are high up on the agenda. Rare earths are an important input in the creation of microchips and currently China dominates production of the minerals.

Mr Hsu in May met Australia’s Lynas Rare Earths — the Western world’s number one player in the market — nudging the door ajar for a new commodity supply chain to be developed.

“With regard to Lynas specifically, I don’t think we have a specific (business) case we are talking with them yet, but (rare earths) is one of the priorities for my government,” he said.

“In past couple of years, my government has been focused on those kind of supply chain resilience initiatives after COVID.”

Taiwan’s ally Japan is a big buyer of Lynas’ production, but the company also counts China as a key customer.

Mr Hsu concedes Australian miners face a difficult balancing of act of maintaining their lucrative relationships with China, while also trying to branch out into Taiwan.

Iron ore is another priority for supply chain security, he says, and Taiwan already has Australian inroads via a small stake in the massive Roy Hill operation.

Mr Hsu’s visit to Perth comes as tensions between the world’s two superpowers over Taiwan continue to escalate.

The US this week announced a $US567 million military aid package to Taiwan, a move that China strongly denounced.

Taiwan is gunning for membership of the United Nations, which would boost its chances of global recognition as a country.

Most of the world, including the US and Australia, do not formally recognise Taiwan as a country independent from China. The Australian Government, like many of its peers, has been reticent to have a strong stance on Taiwan given its geopolitical hot potato status. “Everybody is connected, so we cannot just pretend that this problem doesn’t exist,” Mr Hsu said.

We have to maintain and grow this relationship with Australia. Envoy Douglas Hsu