Taiwan Seeks Membership in IMF Amid Global Support

Washington – Taiwan, an economy comparable to Poland but often sidelined in international forums, is fervently pursuing membership in the International Monetary Fund (IMF), a global institution comprising 190 nations that provides emergency loans and other financial support.

The Taipei Economic and Cultural Representative Office in Washington articulated this aspiration during the ongoing annual meetings of the IMF and World Bank. It underscored that “Taiwan’s membership at the IMF would enhance financial resilience.” This office serves as Taiwan’s unofficial diplomatic representation in the U.S.

This initiative is part of a broader strategy aimed at elevating Taiwan’s international standing. In addition to seeking IMF membership, Taiwan aims to take part in the U.N. World Health Organization’s annual World Health Assembly and to join Interpol with backing from the U.S. and its allies.

However, China, which deems Taiwan a breakaway province and has threatened to annex it, has consistently obstructed these endeavors while claiming to represent Taiwan in global discussions. Currently, the IMF categorizes Taiwan as “Taiwan Province of China” in its documents.

In 2020, the then U.S. President Donald Trump enacted legislation positioning it as U.S. policy to advocate for Taiwan’s inclusion or observer status in international bodies, including the IMF.

The U.S. State Department recently remarked that the global community “stands to gain from Taiwan’s expertise and resources to tackle some of today’s most pressing challenges.” They affirmed their commitment to back Taiwan’s membership in entities that do not require statehood and encourage its substantial participation in groups where full membership isn’t feasible.

The IMF has refrained from commenting on Taiwan’s membership efforts. While the United States wields significant influence within the organization, China also holds a substantial voting authority, being the second-most influential country after the U.S. and Japan. Notably, Bo Li, a former vice governor at the People’s Bank of China, currently serves as the IMF’s deputy managing director.

Taiwan’s push to join the IMF is chiefly about bolstering defenses against potential financial assaults from China, which could aim to forcibly reunite with Taiwan. Amid concerns over a possible military confrontation in the Taiwan Strait, analysts express apprehension that Beijing may resort to economic and cyber warfare tactics to compel a surrender from Taiwan.

A recent report by the Taiwan Academy of Banking and Finance warned that China might attempt to destabilize the Taiwanese currency by making substantial negative bets on Taiwan’s stock market and manipulating foreign exchange rates. Gaining IMF membership would provide Taiwan access to important financial resources to safeguard against such actions.

Recently, the U.S. House of Representatives approved a bill mandating America to promote Taiwan’s candidacy for IMF membership, reflecting bipartisan worries regarding Beijing’s escalating threats to Taiwan—a key player in the global computer chip supply chain.

In a statement earlier this year, Rep. Patrick McHenry, a Republican from North Carolina and chairman of the House Financial Services Committee, emphasized the importance of addressing financial defenses alongside military threats from Beijing. “As one of the world’s most advanced and innovative economies, Taiwan deserves to be included in the fund’s activities,” he stated.

Although Taiwan lacks representation in the United Nations, Rep. Young Kim, a California Republican, pointed out that Kosovo, despite its non-recognition by the U.N., is a member of the IMF, suggesting a potential path for Taiwan’s accession.