Unlike virtually every country in the world, Taiwan has weathered the first wave of the COVID-19 pandemic admirably well. Taiwan’s governance system has stood firm in the face of crisis, gaining international acclaim for the competence and efficiency of its response to the outbreak. And the people of Taiwan have garnered goodwill through their generosity, reflected in their donations of medical equipment to the United States and elsewhere.
Sadly, others have not fared so well. Both the spread and death toll of the virus already have overwhelmed countries across the world. As the global thinker Fareed Zakaria has observed, we likely are “in the early stages of what is going to become a series of cascading crises.” A health crisis will lead to a global economic recession, which will cause national defaults, which will strain countries’ ability to cope with rising demands for social services, and so on. In other words, the pandemic will change the world as we know it.
In recent weeks, many analysts have stepped forward to offer their views on what the world will look like after COVID-19. For some, this moment would provide a referendum on the relative advantages of democratic versus authoritarian systems. Several warned that China might seize America’s moment of domestic turmoil to eclipse the United States on the world stage, while others suggested that the pandemic would be a permanent stain on China’s international reputation that never would be washed away.
If history is any guide, predictions made about the future from the fog of crisis tend to offer little predictive or explanatory value. I would be surprised if this experience ends up becoming much different.
We all should be humble about anticipating the consequences of this crisis. But that doesn’t mean we can afford to ignore considering some of the key questions that this crisis already has begun to expose. Like the cataclysms of great depression and world war in the 1930s and 1940s, this period similarly may end up becoming an era of intellectual ferment, where bold ideas about reform and renewal comingle with immediate requirements for responding to the pandemic.
My grandparents lived through the Great Depression in the United States, an experience that seared into them a habit for frugality. What will be the lasting effects on the generation that comes of age during the era of COVID-19? Will it lead to wariness of spending time around strangers? Will it alter consumption patterns, including in the entertainment, travel, and sports sectors?
At a macroeconomic level, will COVID-19 strengthen countries’ prioritization on national-level industrial mobilization? If so, we may soon begin to see greater emphasis on resilience and self-sufficiency over efficiencies gained through cross-border value chains. Such a shift could have significant consequences for Taiwan’s economy, given its role as a supplier of intermediate goods for complex global value chains.
At a global level, will multilateral institutions stand up to the challenges the world confronts? The early results have not been promising. The United Nations has struggled to mobilize collective action. No safety nets under the global economy have come into view. There is cause for concern that a defanged World Trade Organization will be capable of pushing back against protectionist forces. And there is diminishing hope that the World Health Organization will exercise capacity for creativity in ensuring that timely information is available to the 23 million people in Taiwan. If these institutions prove unworthy of this moment, where will resistance to forces calling for deglobalization emerge from?
At a societal level, will governments that have become significantly more intrusive in individuals’ lives during the crisis retreat back to their self-imposed pre-pandemic levels of surveillance and monitoring? Or will it become the new normal for governments to track individuals’ movements and personal health, all in the name of public safety?
This crisis also will raise fresh questions for Taiwan. It could lead to an intensification of cross-Strait tensions. Chinese authorities might nurture grievances about Taiwan’s early decision to halt shipments of medical supplies and its public references to COVID-19 as the “Wuhan virus.” Taiwan’s leaders also have no shortage of complaints about China’s handling of cross-Strait relations during the crisis, foremost among them Beijing’s prioritization on diplomatic point-scoring at the World Health Organization over considerations for individuals’ health and safety in Taiwan.
And in the United States, anger is building up around China’s negligent initial response to the outbreak of the virus. Some of this anger already has begun to be expressed through calls for the United States to show more visible support for Taiwan, including as a means of imposing costs on China.
In other words, this crisis has exposed a range of fresh challenges and questions about the future, the answers of which presently are unknowable. But our inability to answer them must not impede our thinking on the types of outcomes that would be preferable, and steps that could be taken now to realize them later. We are standing at a hinge point in history. The decisions made now and in the coming months will have lasting consequences well into the future.
Ryan Hass is Fellow and Michael H. Armacost Chair in Foreign Policy Studies at the Brookings Institution, where he holds a joint appointment to the John L. Thornton China Center and the Center for East Asia Policy Studies.
When US budget carrier Southwest Airlines last week announced a new partnership with China Airlines, Southwest’s social media were filled with comments from travelers excited by the new opportunity to visit China. Of course, China Airlines is not based in China, but in Taiwan, and the new partnership connects Taiwan Taoyuan International Airport with 30 cities across the US. At a time when China is increasing efforts on all fronts to falsely label Taiwan as “China” in all arenas, Taiwan does itself no favors by having its flagship carrier named China Airlines. The Ministry of Foreign Affairs is eager to jump at
The muting of the line “I’m from Taiwan” (我台灣來欸), sung in Hoklo (commonly known as Taiwanese), during a performance at the closing ceremony of the World Masters Games in New Taipei City on May 31 has sparked a public outcry. The lyric from the well-known song All Eyes on Me (世界都看見) — originally written and performed by Taiwanese hip-hop group Nine One One (玖壹壹) — was muted twice, while the subtitles on the screen showed an alternate line, “we come here together” (阮作伙來欸), which was not sung. The song, performed at the ceremony by a cheerleading group, was the theme
Secretary of State Marco Rubio raised eyebrows recently when he declared the era of American unipolarity over. He described America’s unrivaled dominance of the international system as an anomaly that was created by the collapse of the Soviet Union at the end of the Cold War. Now, he observed, the United States was returning to a more multipolar world where there are great powers in different parts of the planet. He pointed to China and Russia, as well as “rogue states like Iran and North Korea” as examples of countries the United States must contend with. This all begs the question:
In China, competition is fierce, and in many cases suppliers do not get paid on time. Rather than improving, the situation appears to be deteriorating. BYD Co, the world’s largest electric vehicle manufacturer by production volume, has gained notoriety for its harsh treatment of suppliers, raising concerns about the long-term sustainability. The case also highlights the decline of China’s business environment, and the growing risk of a cascading wave of corporate failures. BYD generally does not follow China’s Negotiable Instruments Law when settling payments with suppliers. Instead the company has created its own proprietary supply chain finance system called the “D-chain,” through which