ABSTRACT
In the context of its ‘One China’ policy, Australia’s relationship with Taiwan has become closer since the early 1990s because of Taiwan’s democratisation as well as the growing Australia-Taiwan trade. The bilateral relationship, which was never close, suffered a major blow when Australia switched its formal diplomatic recognition to the People’s Republic of China (PRC) in 1972. In the years following this switch ties between the two were negligible. This changed in the 1980s as the growth in two-way trade and investment as well as person-to-person exchanges rapidly expanded. Since then ties between Australia and Taiwan have developed further with quasi-diplomatic privileges, direct air links and ministerial visits.
