Taiwan wants to join the IMF to get monetary protection from China

WASHINGTON — Taiwan, a major economy the size of Poland but absent from global organizations, is making a longshot push to join the International Monetary financing, the 190-country organization that offers members emergency loans and other monetary assistance.

“Taiwan’s membership at the IMF would assist boost monetary resilience,” the Taipei Economic and Cultural Representative Office in Washington said during this week’s IMF and globe lender annual meetings. The office serves as Taiwan’s de facto embassy in the U.S.

The push is part of a wider attempt to boost the self-governed island’s global position. Taiwan also is seeking to participate in the U.N. globe Health Organization’s annual globe Health Assembly and join Interpol. The U.S. and its allies are Taiwan’s supporters.

But China, which sees Taiwan as a breakaway province and threatens to annex it by force, has blocked such efforts and insists it represent Taiwan in international forums. The island is now designated as “Taiwan Province of China” in IMF literature.

In 2020, then-President Donald Trump signed legislation making it U.S. policy to advocate for Taiwan’s membership or observer position in international organizations such as the IMF.

The U.S. State Department said the globe “stands to advantage from Taiwan’s expertise and resources to address some of today’s most challenging global challenges.” It said it will continue to back Taiwan’s membership in international organizations where statehood is not required and inspire Taiwan’s meaningful participation in groups where its membership is not feasible.

The IMF had no comment on Taiwan’s efforts to boost membership. The U.S. has the biggest declare within the throng, but China is also influential, having more voting power than any other country except for the United States and Japan.

Bo Li, who had worked as vice governor of the People’s lender of China, now serves as the IMF’s deputy managing director.

The concept for Taiwan to join the IMF is to protect the democratically ruled island from a monetary assault by China, which is determined to seize the island, by force if essential.

While Washington is worried over a military dispute in the Taiwan Strait, analysts and observers have raised concerns that Beijing could wage an economic and cyber war to force a surrender from Taiwan.

In a update this month, the research throng Taiwan Academy of Banking and Finance warned that China could try to destabilize the Taiwanese funds by placing large bets against Taiwan’s stake economy and manipulating foreign swap markets. Joining the IMF would provide Taiwan access to a rainy-day financing it could use to defend itself.

The U.S. House has approved a invoice that would direct the United States to advocate for Taiwan’s IMF membership. The legislation reflects growing concern from Republicans and Democrats alike over Beijing’s rising threats to Taiwan, an island critical to the global supply of computer chips.

Rep. Patrick McHenry, a North Carolina Republican and chairman of the House monetary Services Committee, argued in January that the United States needed to look beyond Beijing’s military threats and assist Taiwan defend itself financially.

“As one of the globe’s most advanced and innovative economies, Taiwan should be included under the financing’s activities,” McHenry said.

Taiwan does not have a seat at the United Nations. But Rep. youthful Kim, R-Calif., has noted that Kosovo in southeastern Europe is an IMF member even though it is not recognized by the U.N.

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AP writer Fatima Hussein contributed from Washington.