Office of the President Republic of China(Taiwan)

The Legislative Yuan, meeting in an extra session, passed pension reform bills for civil servants, public school employees, and political appointees this week, and on the afternoon of June 30 President Tsai Ing-wen made a statement on pension reform in which she thanked government colleagues and members of the general public who participated in and supported pension reform efforts. She also called on people throughout society to appreciate the progress that has been achieved thus far in nation's reform efforts, and maintain social solidarity. The following is a translation of President Tsai's remarks: The Legislative Yuan has been very busy this week. We have passed laws governing the pension system for public servants, public school employees, and political appointees. Now that these laws have been passed, pension system bankruptcy is no longer an urgent crisis in Taiwan. By the passage of these laws, we have lowered the income replacement rate for civil servant pensions, reduced or eliminated the preferential interest rate of 18% paid to retired civil servants and public school employees, and pushed back the age of eligibility for pensions. It is estimated that these actions will save the public coffers NT$1.4 trillion. We will take the money saved and inject it into the Public Service Pension Fund to ensure that it will remain viable for at least 30 years. At the same time, in order to uphold the interests of civil servants and public school employees, we have also designed our systemic reforms to provide transitional periods during which adjustments are gradually phased in, and established pension income floors to reduce the impact of these reforms. So first of all I want to thank all civil servants and public school employees. I thank all of you for your willingness, at a time when the nation is in difficulty, to sacrifice personal interests to the public good, and once again play a decisive role in helping to stabilize the nation. I especially want to thank the civil servants and public school employees who have already retired. You served the nation and society faithfully throughout your careers, and now you have helped the nation negotiate a difficult pass. I really cannot thank you enough. I do believe that the way you've acquitted yourselves will make our younger civil servants and public school employees take even greater pride in their work. Next, I want to thank all the members of the Legislative Yuan for your hard work. In particular, special thanks are due to the members of the ruling party caucus. The government is an integrated unit. We have all remained united and succeeded in smoothly achieving the difficult task of pension reform. Reform is what we pledged to do, and we have not let the people down. In addition, during the process of deliberations at the Legislative Yuan, we adopted many good-faith amendment proposals put forward by the opposition party caucuses, including suggestions to lower the pension eligibility age for indigenous persons, and to allow divorced spouses to claim pensions. The opposition parties also worked very hard on the pension reform, so I also want to express my thanks to them. I firmly believe that history will remember the contributions of the Ninth Legislative Yuan. Third, I want to thank our colleagues at the Examination Yuan and the Executive Yuan for their hard work, as well as the members of the Pension Reform Committee. Consensus building is a challenging process, but we all know that we had to go through that step if the pension reform effort was to succeed. Your participation has brought about the completion of a very big mission for Taiwan. In this process, Vice President Chen Chien-jen, as convener of the Pension Reform Committee, made every effort to communicate with society and help as many people as possible understand the thinking behind pension reform. And Minister without Portfolio Lin Wan-i (林萬億), as the deputy convener, conscientiously solicited a wide range of views and led the Pension Reform Office as it worked to draft a pension reform proposal. I especially want to thank those two for their persistence and dedication. Fourth, I want to thank all the people of Taiwan. Democracy is an important part of this nation's heritage, and our highest value. Over the past year, there has been some tumult, to be sure, but the firm support of the people of Taiwan for reform got us through the tough spots. This was key. Democracy has once again made Taiwan great. Democracy is no longer just a value; now it is a method of resolving controversies. For this reason, I thank all the people from the bottom of my heart. To be able to lead this kind of nation is a source of incomparable honor and pride. Pension reform affects the vital interests of people from all different lines of work. So even broaching the topic of pension reform can spark all sorts of controversy. And that is why, when previous presidents tried to promote pension reform, they always fell a bit short of their goal. We've been subject to intense pressure from all quarters recently, but we stood firm. This round of pension reform has an important significance, for we've proven that pension reform is neither a political minefield, nor a taboo issue that absolutely cannot be broached. And no one will become destitute because of the pension reform passed during the Tsai Ing-wen administration. In the process of reform, pressure is inevitable, and those pressures are mine to bear. All criticisms should be directed to me. I urge the public to stay calm. Above all, please don't subject certain members of the Legislative Yuan to irrational verbal attacks. If someone has to pay the price, I will do it. There is no need to make life difficult for anyone else. I realize that some people still take issue with the pension reform. Some feel that the reforms have not gone far enough, and some feel they are moving too slowly. Such criticisms are expressions of concern for the nation, and I humbly accept them. However, I call upon everyone in our society to appreciate the progress we've achieved in our reform efforts. All systems need to be continually adjusted to stay in synch with the times, and our pension system is no exception. In carrying out the pension reform, we established a mechanism for regular reviews. Now that we've had this successful experience, when it next comes time for a review of the pension system, we will have more confidence. My fellow citizens, Taiwan has finally achieved a sustainable pension system under which "the government can afford to pay for pensions, and retirees can receive them, now and in the future." Despite all the pressure, we endured, and made good on our pledge to carry out reform. The completion of our reform efforts marks the beginning of social solidarity. This country still has many other problems that we need to continue working on. But since we completed something as difficult and complex as pension reform, is there anything we Taiwanese can't accomplish? And finally, once again, I want to thank everyone who took part in this pension reform, and the members of the public who supported our efforts. People of Taiwan—let's keep moving forward!

On the evening of January 22, President Tsai Ing-wen and Vice President Chen Chien-jen attended the closing ceremony of the national congress on pension reform, where they thanked the participants for their efforts to promote pension reform. The president stated that the day's congress demonstrated that the Taiwan society is capable of engaging in rational public discourse: "If we can successfully reform the pension system, then there is no reform that Taiwan is incapable of completing." In remarks, President Tsai said that by holding the national congress on pension reform, we have used concrete action to demonstrate that the Taiwan society is capable of engaging in rational public discourse. She thanked all the Pension Reform Committee members for sharing their valuable opinions, which will improve the reform proposal. She also thanked Vice President Chen for personally chairing the meetings of the Pension Reform Committee since last May, and for actively explaining to interested parties the significance of the reform effort. The vice president's patient and gentle way of dealing with various groups and differing opinions, she said, has been key to the smooth progress of the reform effort, and history will remember the drawings that he personally made by hand to explain the reform to the public. In addition, President Tsai also thanked Minister without Portfolio Lin Wan-i (林萬億) for bearing the brunt of pressure and criticism, even putting up with being falsely maligned. Despite everything, he chose to take up the responsibility of leading everyone at the Executive Yuan's Pension Reform Office as they solicited everyone's views and molded them into a concrete reform proposal. History will also remember his tremendous effort. Such tumult always dies down eventually, said the president, who added: "If we can successfully reform the pension system, then there is no reform that Taiwan is incapable of completing." Now that the pension reform congress has been completed, the government will formally put forward a final pension reform proposal and forward a related legislative bill to the Legislative Yuan for deliberations. But we still have a ways to go. A lot of different views still have to be expressed, especially in the Legislative Yuan. With respect to this reform, there are certain principles on which government is insistent, but it will continue communicating with all sectors of society to minimize the impact. President Tsai stressed that we are acting in line with the collective will of the people to build a more ideal system, and the country is moving forward one step at a time toward a fairer and better future. Vice President Chen delivered remarks at the very beginning of the closing ceremony. He also thanked participants for spending an entire day contributing their wisdom and sharing their penetrating insights regarding pension reform so that everyone can together seek consensus on the matter. The vice president stated that the central government agencies responsible for pension reform will most certainly treat everyone's valuable opinions as important reference as they draft legislative amendments in the future, and during this process they will continue to solicit a broad range of opinion. Once everyone's views have been properly evaluated, the government will need to carefully calculate budgetary matters, especially as they impact the economic well-being of individuals, in order to devise a fair way of amending the law that will yield an equitable distribution of wealth. Vice President Chen also stated that if, due to time constraints, the participants at the congress were unable to fully express their views on pension reform, or if they felt that the chairperson of any particular group did not fully express the views of the group in its report, they are welcome to mail their views in writing to the Pension Reform Office, or to send in their views online or via email and have the office forward their views to the central government agencies in charge of drafting legislative amendments. The vice president expressed his hope that the agencies involved in this undertaking—including the Ministry of Civil Service, the Ministry of Education, and the Ministry of Labor—can actively complete the drafting of legislative amendments. He also specially called upon the members of the Legislative Yuan and the Examination Yuan ministers without portfolio to bring about the speedy passage of all legislative bills related to pension reform.

In remarks at the opening ceremony for a national congress on pension reform on the morning of January 22, President Tsai Ing-wen stressed that the goal of pension reform is to ensure a sustainable pension system in which "the government can afford to pay pensions, and retirees can receive them, now and in the future." What we are proposing today is a sound approach to reform. We aren't insisting on solving everything all at once; rather, we will seek to gradually improve the system over a period of years in order to cushion the impact of the changes that will be made. "If we don't act on pension reform today, we'll regret it immediately," said the president, adding that we absolutely must succeed, and the longer we wait, the more painful the changes will be. For some time now, said the president, we've been seeing a lot of misinformation, and various attempts have been made to keep this congress from taking place, but there is no way this could have delayed the process. The reform effort simply must move ahead on schedule. The following is a translation of President Tsai's complete remarks: I believe all of you know that Vice President Chen Chien-jen held a press conference the other day and put forward, in a very responsible manner, a draft pension reform proposal to serve as the basis for discussions during this national congress. This draft proposal is the result of 20 meetings of the Pension Reform Committee as well as four regional pension reform congresses. In the process, we have received a broad range of input. The draft proposal puts forward a very sound plan. We aren't insisting on solving everything all at once; rather, we will seek to gradually improve the system over a period of years in order to minimize the impact. The provisions of the draft proposal would eliminate the 18% preferential interest rate, lower the income replacement rate for civil servants and educators, set a pension income floor, phase in adjusted premium rates, improve pension fund efficiency, and establish a mechanism for the government to boost pension fund financial resources. In addition, the draft proposal would also deal with unreasonable facets of the current pension system including decoupling party and government pensions, and doing away with the practice of counting the earnings of political appointees toward their earnings as career civil servants, to which the 18% preferential interest rate applies. A key purpose of these actions is to ensure a sustainable system under which "the government can afford to pay for pensions, and retirees can receive them, now and in the future." I strongly hope that you will all be able to express your valuable opinions during today's congress and help bring about a more sound system. For some time now we've been seeing a lot of misinformation. People have been spreading rumors on the LINE app, and various attempts have even been made to keep this congress from taking place, but there is no way this could have delayed the process. The reform effort simply must move ahead on schedule. Many people have asked why pension reform must involve so many meetings. We are doing this because we've reviewed the reasons for the failed reform attempts of the past. Past reform efforts were short on public discussion. This time, before the government puts forward a final proposal and submits it to the Legislative Yuan for deliberations, we want to open up the process for "expanded participation" so that representatives of all stakeholders have ample opportunity to state their views. The pension funding crisis has been building for decades. To spend a half year analyzing the problem and developing a reform proposal is not only time well spent, it is truly necessary. I firmly believe that many years from now, when we all look back at these past few months, we'll be very glad that we buckled down and got through this process. This sort of process is significant in two big ways. First, we are enabling society to better understand the details and the importance of pension reform. In the past, there was majority support for reform, but the great complexity of the system meant that a lot of people didn't understand the many problems involved. Now, however, the pension system crisis has been fully exposed, so we have a better understanding of the importance and urgency of reform, and we're more determined to carry through. Second, we need to devise a reform proposal that is more concrete and reasonable. From the very beginning, we've never felt that pension reform can be treated as a "my way or the highway" proposition. Nor is it a matter of the government issuing an announcement then whipping up support for it. People have different ideas and different positions. Disputes are inevitable. Meetings focusing on pension reform have of course been contentious. But as a result, we've been able to hear lots of different viewpoints and incorporate them into our reform proposal. In one meeting after another, we have heard very valuable views regarding many different issues, such as calls to have the military pension system handled separately, the question of whether there should be special pension age exceptions for police officers, firefighters and elementary and middle school teachers, questions concerning the currently favored gradual approach to pension reform, and the setting of a pension income floor. I know there will be people protesting today outside the Office of the President. When anyone's interests are affected, they will feel dissatisfied. I can understand how they feel. However, only a sustainable pension system can ensure that everyone will be able to receive pension benefits, including those of you who are out protesting today, and your children. Four years ago this January, at this very same location, former President Ma Ying-jeou spoke in strong terms about the urgent need for pension reform. He said that a pension system involves both self help and mutual help. He said it is not a matter of "your pension" or "my pension," but of "our pensions" and "the pensions of our children and grandchildren." The pension system, he said at that time, "must not and will not become insolvent." So you can see that pension reform is not a "blue versus green" issue. It is not a political football. It is something that any political leader regardless of their party affiliation must undertake for the sake of the long-term good of the country. Former President Ma declared: "No matter how great the challenge, we have no choice but to reform the pension system." Unfortunately, the previous administration's pension reform effort did not succeed in the end. Taiwan cannot withstand yet another failure. We simply must succeed. The longer we wait, the more painful the changes will be. With the utmost sincerity, I urge all my fellow citizens to take a close look at all the proposals that have been put forward. If you do that, I firmly believe you will find that we're not bully any particular employment category, and we certainly won't make it impossible for people to survive. This is a moderate and gradual reform, with everyone yielding a bit and the different generations lending each other a helping hand. The fact is, we have a lot of retired military personnel, civil servants, and educators in our country who are willing to sacrifice their personal interests so that everyone can weather this crisis together. And there are young civil servants who don't want to see the pension system go bankrupt. They want it to be sustainable. I want to specially thank them for supporting pension reform. Ensuring a secure retirement for all is a responsibility that the government cannot shirk. After this reform is carried out, our pension system will no longer be under threat of bankruptcy, and will be on strong financial footing for about 25 years. I want to emphasize once more my hope that Taiwan will periodically review its pension system every five to ten years. That is the only way to ensure secure retirements for generations to come. If we don't act on pension reform today, we'll regret it immediately. For Taiwan's sake, we must take up this challenge together. Well, the congress is about to get started. I hope you can all help the discussions stay focused, because Taiwan's future is in our hands. If we can stay focused, then the path to a better future for Taiwan will come clearly into view.

President Lai Ching-te on the morning of October 10 attended the ROC’s 114th Double Tenth National Day Celebration in the plaza fronting the Presidential Office Building, and delivered an address titled “A New Taiwan Rises in a Time of Change.” A translation of the president’s address follows: National Day Celebration Chairperson Han Kuo-yu (韓國瑜), Vice President Bi-khim Hsiao, Premier Cho Jung-tai (卓榮泰), Her Excellency the Governor-General of Belize Froyla Tzalam and Mr. Daniel Mendez, His Excellency the Governor-General of St. Lucia Errol Charles and First Lady Anysia Charles, President of the Chamber of Deputies of the Republic of Paraguay Raúl Latorre, Japan-ROC Diet Members’ Consultative Council Chairman Furuya Keiji, heads of delegations from diplomatic allies and friendly nations, members of the foreign diplomatic corps in Taiwan, distinguished guests from home and abroad, and my fellow citizens here in person and watching on TV or online: Good morning. Today is the National Day of the Republic of China, and while we gather every year to celebrate the nation’s birthday, this year is an especially significant one. It is a historic year for Taiwan’s democratization. One month ago, September 10, was the historic date when the number of days Taiwan had spent free from martial law officially surpassed the number of days endured under its stifling rule. This signifies that we have parted entirely from an authoritarian regime and its shadow, and have ushered in a democratic future full of hope. We will not forget the blood and tears of those who united to defend against aggression, nor will we forget the selfless sacrifices of past generations in pursuit of democracy and freedom, granting sovereignty to the people. Those stories, which have become woven into the fabric of our land, are our collective memory. Democratic Taiwan, forged through untold hardships, is what most clearly positions the 23 million people of Taiwan, Penghu, Kinmen, and Matsu in this world. Taiwan is a beacon of democracy in Asia. For every person still living in darkness under authoritarian rule, we forever shine the light of hope. This year also saw Taiwan’s rise. Nations around the world are suffering drastic changes and challenges, and Taiwan is no exception. In addition to the Russia-Ukraine war, turmoil in the Middle East, and China’s continued military expansion, the United States’ tariff policy has delivered a blow to economies and industries alike. But the people of Taiwan are still on their feet. And not only that – this year’s economic performance greatly impressed the global community. According to the Asian Development Bank’s latest report, Taiwan’s economic growth rate this year leapt from 3.3 to 5.1 percent, leading the Four Asian Tigers and surpassing China. Taiwanese exports have continued to reach record highs, and employment is at its best in 25 years. Our stock market has also risen for six consecutive months, hitting an all-time high of 27,301 points. Taiwan’s market capitalization has topped US$3 trillion, making our stock market the world’s eighth largest, and foreign exchange reserves surpassed US$600 billion for the first time, setting a new record. In the midst of adversity, we remain undaunted. In the midst of challenges, we grow ever stronger. These are achievements that the people of Taiwan made together. Let us all celebrate them!  These impressive economic accomplishments also reflect the stellar record of Taiwan’s semiconductor, ICT, electronic component, and other leading industries. Their advantageous position in the global supply chain is the result of long-term key policies for the development of technological and manufacturing capabilities, unique business models, and government-led science parks. This is a monumental industrial achievement forged by decades of combined efforts, and it belongs to all the people of Taiwan. As president, it is my mission to protect these valuable assets and use them to boost Taiwan’s and even worldwide industrial and economic growth, helping to create even better lives for people in Taiwan and around the world. This is also the direction Taiwan is taking. Of course, we will certainly not ignore the formidable challenges in this time of global change, and the risks they pose to different industries, different fields, and groups of different backgrounds. Many of the champions, traditional industries, and micro-, small-, and medium-sized enterprises (MSMEs) leading Taiwan’s economic growth from behind the scenes are facing the pressure of the digital and net-zero transition. Many workers feel concerned and uneasy about job opportunities, salaries, commodity prices, and cost of living in the face of the AI wave. Farmers are also being impacted by an aging rural population and market liberalization. The government will not take these challenges lightly, and will not ignore the impact they have on each and every citizen. It is our responsibility to put our full effort into assisting traditional industries, MSMEs, working families, and those in the agricultural and fishing industries. Therefore, in addition to having proposed a 93-billion-NT-dollar tariff impact support plan to help enterprises, workers, and those in the agricultural and fishing industries weather this difficult time, the government will also be investing tens of billions of dollars each year to help MSMEs introduce AI into their work so they can move toward digital and net-zero upgrading and transformation and address challenges. For traditional machine tools, screws and nuts, and other industries that are facing difficulties, we will also be proposing separate countermeasures to actively help boost competitiveness and expand the market. My fellow citizens, times of change are also times of opportunity. Taiwan’s economic performance is clear for all to see, and our key position in the global supply chain can neither be challenged nor replaced. In the face of change, we must not doubt ourselves or waver, but seize opportunities with confidence and bravely follow through. We must not be complacent or turn back, but even more proactively forge ahead in the world. A Taiwan that is certain will serve as an important, reliable, and steady force for an uncertain world. Moving ahead, we will adopt three major strategies in order to ensure the Republic of China Taiwan’s competitive advantage: First, we will expand investment in Taiwan. Our Three Major Programs for Investing in Taiwan have yielded substantial results. Investment has surpassed NT$2.5 trillion, creating over 160,000 job opportunities. In July, the Executive Yuan extended the programs to 2027 while also expanding applicable industries and eligibility to include overseas Taiwanese businesses worldwide and foreign investing enterprises. The government is continuing to optimize the investment environment, adding NT$720 billion in new loans to attract investment in Taiwan and bring in an estimated NT$1.2 trillion in capital and 80,000 more job opportunities. Besides having good work, we should also have good lives. With this in mind, the government launched the Trillion NT Dollar Investment National Development Plan to encourage copious investment of private capital in public infrastructure through innovative public-private partnerships. It expands funding for construction while at the same time promoting critical infrastructure projects across counties and cities nationwide, in areas such as water, electricity, housing, education, healthcare, culture, tourism, and transportation. This will help meet local residents’ needs so they can live happy lives, and enable industries and spheres of living to develop in a complementary way so that we can achieve our goal of a balanced Taiwan. Second, we will deepen international economic and trade cooperation, and expand our global presence. This year, Taiwan and the United Kingdom, under the framework of our Enhanced Trade Partnership arrangement, additionally signed three pillar arrangements in investment, digital trade, and energy and net-zero. This marks a new milestone for Taiwan-UK economic and trade relations, showing our mutual commitment to high international trade standards and laying the foundation for cooperation in technology, advanced manufacturing, and other strategic industries. Moving ahead, Taiwan will sign bilateral economic and trade cooperation agreements with even more friends and allies while upholding the principle of mutual benefits. We will also actively engage in reciprocal tariff negotiations with the US to secure a reasonable rate, resolve the trade deficit between Taiwan and the US, and deepen industrial cooperation. This will enable Taiwan’s economic development to become more globally connected and thereby make great strides. Third, we are building a chain of “guardian mountains” to shore up Taiwan’s industrial capabilities. In this digital age, we will implement 10 new AI infrastructure initiatives. In addition to helping make Taiwan one of the world’s top five computing centers, we will also invest more vigorously in R&D in three key technological fields: quantum technology, silicon photonics, and robotics. This will facilitate the introduction of AI tools in different sectors and professions, and promote the application of AI in various fields, helping Taiwan move toward an era of comprehensive smart technology and continue to maintain its leading position in global tech development. We are also building Taiwan into a hub in Asia for asset management. This will not only help retain trillions in Taiwanese capital, but attract investment in Taiwan with international capital, promoting growth in the financial industry, creating quality job opportunities, and strengthening Taiwan. The biopharmaceutical industry is a key national industry and has thus been included in our National Project of Hope. We are also developing toward greater use of precision health in health maintenance, preventive medicine, diagnosis, treatment, and care, giving our nation durable competitiveness and advancing the well-being of our people. Next year, our National Infectious Diseases Bank will be completed, and Taiwan will continue stepping up its cooperation with other countries in the field of biotechnology. Through our program for investment in smart healthcare innovation and entrepreneurship, with its budget of NT$10 billion, we will encourage more firms to invest in innovative R&D, expand investment, and move the biomedical industry toward becoming a trillion-NT-dollar industry, which will be one more guardian mountain for our nation. My fellow citizens, Taiwan is for all the people of Taiwan. We are well aware that no matter how impressive our economic performance may be, we must not overlook anyone on this land. The fruits of our economic growth should be enjoyed by all our people. Good numbers should translate into good lives, with no one left behind. Helping our citizens stay healthy, nurturing young talent, creating an even better environment for the younger generation, and providing greater support for young families is the government’s absolute responsibility. The Healthy Taiwan Cultivation Plan, launched this year, is improving the medical environment and system overall and will ensure higher quality healthcare services for all citizens. Also this year, we officially established the Ministry of Sports, ushering in a new era of sports for all, competitive sports, and professional sports. With this new ministry, we aim to ensure that all athletes receive full national support so that they can pursue their dreams on the global stage, winning national glory. In addition, to support our young people, we are providing free tuition for high schools and vocational schools, and an NT$35,000 annual tuition subsidy for students of private junior colleges, colleges, and universities. Our Taiwan Global Pathfinders Initiative, which supports young people aged 15 to 30 in pursuing their dreams abroad, is officially underway. Moreover, for renters, the government provides NT$30 billion in annual rent subsidies. Unmarried renters with an annual income below NT$626,000, families of four with a combined annual income below NT$1.641 million, and households with three generations living together with a combined annual income below NT$2.1245 million will be exempt from individual income tax. We will also provide even greater support to the young parents in our society. In addition to promoting version 2.0 of our national childcare policy for ages 0–6, with increased childcare allowances and expanded childcare subsidies, starting next year, the government will provide an increased birth subsidy of NT$100,000 per child. Nor do our senior citizens need to worry. Next year, with the launch of Long-Term Care 3.0, the government will work hard to ensure that all seniors receive more convenient, more comprehensive care. Our goal is to ensure that all to whom the nation belongs – our children, young people, parents, and grandparents – receive better care so that they can face the future with greater confidence. This year also marks the 80th anniversary of the end of World War II. The lessons of World War II are still fresh in our memory. The ambitions of the aggressors in that conflict caused widespread devastation and loss of life. In today’s world, authoritarianism continues to expand and the international order faces severe challenges. Regional order in the Taiwan Strait, East China Sea, and South China Sea, and even the security of the entire first island chain, are under serious threat. Democratic Taiwan is a crucial link for the peace and stability of the Indo-Pacific and a responsible member of the international community. As such, Taiwan will work to uphold the status quo, ensure peace and stability across the Taiwan Strait, and promote the prosperous development of the region. We look forward to the day when China can take responsibility as a major power and cease its distortion of United Nations General Assembly Resolution 2758 and historical World War II documents. We also hope it will renounce the use of force or coercion to change the status quo across the Taiwan Strait so that we can jointly maintain the peace and stability of the Indo-Pacific. Looking back at World War II, we see that so many experienced the suffering of war and the pain of invasion. We should learn from these lessons and ensure that the tragedies of history are never repeated. The outcomes of that conflict tell us that aggression fails, unity prevails, and that peace is won through strength. I want to declare to our citizens and the international community: At the end of this year, we will be proposing a special budget for national defense. Defense spending, as it is defined by NATO, will exceed 3 percent of GDP next year, and will reach 5 percent of GDP by 2030, showing our determination to safeguard the nation. The increase in defense spending has a purpose; it is a clear necessity to counter enemy threats and a driving force for developing our defense industries. Through our new defense budget, we aim to achieve three major goals: First, we will accelerate our building of the T-Dome, establish a rigorous air defense system in Taiwan with multi-layered defense, high-level detection, and effective interception, and weave a safety net for Taiwan to protect the lives and property of citizens. Second, we will advance the integration of high-tech and AI technologies to build a smart defense combat system, maximizing effective deterrence for our asymmetric strategy. Third, we will continue to invest in innovative defense technologies and collaborate with the military industries of advanced nations to bolster our defense industry capabilities. We will strengthen our domestic supply chains through local R&D, design, and manufacturing. This will enable Taiwan to accelerate industry upgrades, enhance the resilience of our military equipment, and boost the capacity of our defense industry. In that way, Taiwan, becoming a trusted security partner for our friends and allies, can jointly avoid the red supply chain and foster trust in defense among free and democratic countries, while building a robust line of defense to safeguard the values of freedom and democracy. We are determined to maintain peace through strength. We firmly believe that strength is not obtained through military strength alone, but must also rely on resilience throughout society. Over the past year, through the efforts of the Office of the President Whole-of-Society Defense Resilience Committee, we have built up greater strength between the government and private sector, and between the central and local governments. We have integrated disaster prevention and defense to strengthen military-civilian cooperation. We have also continued to strengthen resilience in civilian training, energy, healthcare, information and communications networks, and finance, comprehensively enhancing our ability to respond to various crises. I want to emphasize that building societal defense and resilience requires every ounce of effort. Last month, we released our updated national public safety guide, which includes strategies for responding to various natural disasters and even extreme scenarios such as a military invasion. We plan to gradually ensure that each and every household has access to this safety guide, because only when all of society participates and learns to help themselves and one another can Taiwan develop greater resilience to face all kinds of challenges. My fellow citizens, over the past year, we have faced numerous challenges together, but the people of Taiwan never give up hope. Whenever a crisis arises, we always see numerous Taiwanese standing on the frontline, selflessly dedicating themselves to the nation they love. Just last month we saw two very moving scenes. The first was at the UN General Assembly held in New York, where many members of the overseas Taiwanese community raised money and launched a fundraising campaign to light up Times Square with advertisements to “Chip in with Taiwan,” promoting Taiwan’s participation, and advocating that we are “Better Together.” It touched the hearts of people around the world. The second was the tens of thousands of volunteers who, after the Fata’an Creek barrier lake disaster, slipped on their rain boots, shouldered their shovels, and traveled great distances to provide relief to help the affected residents of Hualien return to normal life as soon as possible.  These “superheroes with shovels” did more than dig out heavy mud and sludge to help disaster victims return home; these heroes also uncovered a light – a light of hope that warmed every heart it touched. More than that, they proved the remarkable resilience of the Taiwanese people and their resolve to protect our homeland in the face of crisis. Now, let us all thank these superheroes of disaster relief, who come from all walks of life and from all over the country, as well as friends from abroad and the military, police, firefighters, and central and local government personnel who devoted themselves to the relief effort. This spontaneous nationwide movement is absolutely unique in the world, and for that the world will remember: Taiwan, that small mountainous country, is truly compassionate, and truly great! Moving forward, I will continue to lead the country, hearts united, without fear of hardship or challenge, bravely, toward an even better tomorrow. Let’s keep going, Taiwan! Let’s keep going, Republic of China! Let’s keep going, Republic of China Taiwan! Thank you.

President Lai Ching-te recently met with Stephen Yates, senior research fellow at the Heritage Foundation’s Asian Studies Center; Buck Sexton, host of the American radio program The Clay Travis and Buck Sexton Show; and Mr. Sexton’s brothers Mason and Keats. President Lai was also interviewed by Buck Sexton and responded to questions regarding cross-strait relations, the regional landscape, national defense, the economic and trade partnership between Taiwan and the United States, and Taiwan’s social welfare policies. The interview was broadcast on the early morning of October 7. Following is the text of the questions and the president’s responses: Q: One of the things we’ve noticed that has already gotten some attention back in the States is the sense of civic responsibility here, how respectful and law-biding everyone is, how safe everyone feels on your streets. It is inspiring to tell Americans about this. I also wanted to ask you about the situation right now with your neighbor, China. There’s obviously a lot of global concern about a sense of rhetoric heating up, a sense that there is a pathway now that is becoming more imminent that there could be a crisis. How do you want to describe the situation right now, for specifically an American audience? President Lai: First of all, I am very glad that you have seen a lot of things during your stay in Taiwan and that you are having a fruitful trip so far. I also want to thank you for commending our civil society. In the international community, Taiwan is often lauded as being a place where the most beautiful scenery is actually its people. Recently, due to a typhoon, a barrier lake overflowed in Hualien, causing a significant number of injuries and deaths. Streets and houses were covered in mud. Taiwanese society mobilized to help people affected. We had a long holiday weekend this past weekend. On the first day, 30,000 people traveled to Hualien to offer assistance. And on both the second and third days, another 40,000 went, meaning that over 100,000 people, of their own accord, took their shovels to help those affected. In our society, these people were referred to “superheroes with shovels.” So you can feel that in Taiwan there is a lot of warmth. People are kind. So our streets, at nighttime or daytime, are generally very safe. Your question was about Taiwan’s relations with China. I very much hope that everyone in the world who pays attention to Taiwan-China issues can be clear about several things. Firstly, the Republic of China and the People’s Republic of China are not subordinate to each other. Taiwan is not a part of the PRC. China does not have the right to invade Taiwan. Secondly, China has been holding military exercises in the Taiwan Strait, undermining peace and stability in the region. So it is China – not Taiwan – that is disrupting the cross-strait status quo. The fact that the Taiwanese people seek to protect their sovereignty and pursue a way of life based on democracy, freedom, and human rights should not be seen as a provocation against China. Thirdly, even though Taiwan is facing increasing threats from China, Taiwan has not given up on seeking peace and mutual prosperity across the strait. We understand that peace is priceless and that there are no winners in war. Peace and stability across the Taiwan Strait are essential elements of global security and prosperity. Our pursuit of peace is an ideal, not a fantasy. We believe that to achieve peace, there must be strength. Since taking office, I have implemented the Four Pillars of Peace action plan. The first pillar is strengthening Taiwan’s national defense. Our defense spending, as defined by NATO, will reach 3.32 percent of GDP next year. And this will increase to 5 percent of GDP by 2030. We are procuring arms from the United States and partners across the international community. At the same time, we are promoting indigenous defense capabilities. We will work with the international community to codevelop arms, including R&D, design, and manufacturing. This will allow the domestic defense industry to grow and contribute to Taiwan’s security. Drones, unmanned submarines, and robotics are all areas that Taiwan will prioritize in the future. The second pillar is enhancing our economic resilience. In 2010, 83.8 percent of Taiwan’s outbound investment went to China. But last year, this number was only 7 percent. The United States is now Taiwan’s largest destination for outbound investment. In other words, we are not putting all of our eggs in the same basket. We hope that Taiwan’s industries will be rooted in Taiwan, deploy globally, and market across the world. This will not only strengthen our economy but also make it more resilient, thereby safeguarding Taiwan’s security. The third pillar is standing together with the United States and other free and democratic countries to bolster joint deterrence. This will allow us to prevent war by preparing for one. And fourthly, Taiwan is willing to engage in dialogue with China based on parity and dignity. Through exchanges and cooperation, we can achieve the goal of peace and mutual prosperity. I noticed that US President Donald Trump once said publicly that Xi Jinping actually called him and stated that he would not attack Taiwan during President Trump’s term in office. We hope that Taiwan will continue to enjoy the support of President Trump. If he is able to convince Xi Jinping to permanently renounce the use of force against Taiwan, President Trump will surely win the Nobel Peace Prize. Q: If you could speak directly to President Trump about Taiwan’s situation right now, the security situation more specifically, what would you want him to know?  President Lai: If I had the chance to meet President Trump in person and talk about the current cross-strait situation, I would suggest that he take note of the fact that Xi Jinping is not just holding ever-larger military exercises in the Taiwan Strait but expanding China’s military deployment in the South and East China Seas. China’s military exercises now extend across the Indo-Pacific region. Its aircraft carriers are moving beyond the first island chain and second island chain. And its northern fleet even sailed around Japan for a week. Chinese naval vessels also conducted live-fire exercises in Australia’s exclusive economic zone. The situation in the Indo-Pacific region is changing constantly, and tensions are rising. So the issue is not only a possible annexation of Taiwan. If it is able to annex Taiwan, China will be in a stronger position to compete with the United States and alter the rules-based international order. This would eventually also impact US interests. So we hope that President Trump can continue to maintain peace and stability in the Indo-Pacific. Taiwan is determined to ensure its national security. We will fulfill our responsibility and work with free and democratic countries to maintain regional peace and stability. Q: Because America has learned some difficult lessons about foreign policy and foreign policy intervention, there is a focus on partners who will carry their weight for their own defense and have a willingness to fight. If anyone in America, policymaker or citizen, has a question about whether Taiwan is willing to defend its own sovereignty, what would you say to them? President Lai: I would tell them that Taiwan is absolutely determined to ensure its own national security. Peace and stability across the Taiwan Strait are indispensable elements in global security and prosperity. So when Taiwan looks after its own national security, it shows that Taiwan is committed to protecting regional peace and stability as well. That is why, as I mentioned before, we are continuing to increase our national defense budget. So during former President Tsai Ing-wen’s term, the national defense budget was increased from 1.9 percent of GDP to 2.5 percent. Next year, it will reach 3.32 percent. And we hope to increase this to 5 percent by 2030. This would be five years earlier than NATO’s own goal. Also, we have established the Whole-of-Society Defense Resilience Committee under the Office of the President. This committee brings various sectors of Taiwan together and combines the strengths of the public and private sectors to carry out exercises and drills that enhance whole-of-society defense. I also convened a high-level national security meeting in which we defined the Chinese Communist Party regime as a foreign hostile force; and I proposed 17 strategies to address the five major threats we face from China. These will translate into more than a hundred amendments to our national security laws, which will be reviewed by the Legislative Yuan during the current session. This will put Taiwan on a stronger legal footing, bolster its national defense, and allow people to contribute their power toward safeguarding our nation and protecting regional peace and stability. I believe that people help those who help themselves. So I very much agree with your idea that Taiwan and other countries should meet their own responsibilities. Only by helping ourselves can we expect help from others. And when we show unity and work together, that is when deterrence is at its strongest; and that is when we will be able to safeguard peace and stability in the world. Q: Obviously, there’s a tremendous global and American, specifically, interest in artificial intelligence and the future of it. Also very interesting is the incredible facility that TSMC has built and is building out more in Arizona. I would like to ask you to speak to the economic partnership, specifically in advanced technology, microchip manufacturing, and artificial intelligence, and the relationship between Taiwan and America going forward, and how you view that to grow and bring prosperity for both countries. President Lai: So we all know that Taiwan’s technology industry has performed well. This is the result of decades of cooperation among Taiwan’s industries, government, academia, and R&D sector, as well as the support of the Taiwanese people. But I must also note with appropriate humility that TSMC and the Taiwanese semiconductor industry are still only one part of a bigger ecosystem, and do not represent the whole system. So if you look at the entire semiconductor ecosystem, the United States is strong in areas such as innovation, R&D, and design. And it is also the biggest market. Japan is strong in raw materials and related equipment. And the Republic of Korea, they have flash memory. Taiwan’s strength is in wafer manufacturing. And the Netherlands makes the critical equipment that is used to make semiconductors. But in the whole ecosystem, you can see that around 80 percent of profits go to the United States. So for semiconductors, I would say the United States is still the leader in this ecosystem. Looking ahead, as we face the AI era, every nation in the semiconductor ecosystem will be extremely important. And the United States will continue to lead the world in this. So Taiwan is very willing to work with the United States to achieve this goal. We want to help the United States reindustrialize and become a global AI hub. We want the United States to continue to lead the world in this new AI era and we want to help make America great again. So with regard to Taiwan’s semiconductor industry, we see it as an important responsibility in terms of ensuring the world’s future prosperity. That is why the Taiwan government has been very supportive of TSMC’s investments in the United States and Japan, as well as Germany. In the future, when the United States has reindustrialized and become a global AI hub, I am sure that TSMC will continue to play a crucial role. Q: Over the course of meetings with various members of your government, I learned something very interesting that has to do with family formation, a problem we have also started to look at in America. It will be very interesting, I think, to the American audience, to hear of countries that are trying to use policy to address issues like encouraging marriage and encouraging children so that a society can replenish – so that there is replenishment and there is resiliency. Could you please speak to some of the ways that you are encouraging people to have more kids here? What is Taiwan doing and how are those initiatives going so far? President Lai: I am very glad that you look positively at what we have been doing in Taiwan. Actually, Taiwan’s policies were made with reference to what the United States and other countries have been doing. Concerning our strategies: first, the government is supporting families in jointly raising children from birth to six years old by providing monthly subsidies. Tuition is also free for both public and private high schools and vocational schools. We also have a long-term care system for senior citizens. Across Taiwan, there are some 15,000 service centers with around 100,000 long-term care staff who look after seniors over the age of 65 as well as people with disabilities so that they can receive quality care. Young people who want to get married and have children are given priority in applying for social housing. If they want to buy a home, they can get government funding to subsidize the interest on their mortgage. And if they are renting, they can get a rent subsidy from the government. For couples who are having problems conceiving, the government subsidizes fertility treatment. We are also cutting taxes. Taiwan’s government is currently investing more in our society and cutting taxes by more than ever before in our history. These initiatives will help our young people feel confident that they can get married, have children, and will be able to raise them. I note that President Trump is also cutting taxes. We want to reduce the burden on households so that more people can start a family. This will promote social stability, prosperity, development, and continual growth for the country.

On the morning of August 1, President Lai Ching-te delivered remarks at the Presidential Office on the response to the reciprocal tariff policy of the United States. President Lai explained that technical consultations with the US are finished, but as the final concluding meeting has not yet taken place, 20 percent has been set for Taiwan as an interim tariff rate. The president said that Taiwan will work towards a more favorable and reasonable rate in the subsequent negotiations, and that the US has expressed its willingness to continue talks. He added that a support plan for Taiwan’s export supply chain in response to US tariffs has been proposed to assist small- and medium-sized enterprises (SMEs) in responding to the US tariff policy. A translation of President Lai’s remarks follows: Earlier today, the US government informed our lead negotiator, Vice Premier Cheng Li-chiun (鄭麗君), that an interim tariff rate for Taiwan has been set at 20 percent. Since April 2, when the US introduced its new tariff policy targeting countries worldwide, Taiwan has actively engaged in four in-person rounds of negotiation and multiple discussions over videoconference with the US government. Throughout the process, both sides have negotiated in good faith based on the shared goal of addressing the trade deficit between Taiwan and the US and creating complementary and mutually beneficial outcomes. Although we have achieved an interim reduction in the tariff rate from 32 percent to 20 percent at this point in the negotiations, 20 percent was never our goal. We hope to work towards a more favorable and reasonable rate for Taiwan in the subsequent negotiations, and the US has expressed its willingness to continue talks. We have finished technical consultations, but as the final concluding meeting has not yet taken place, a final tariff rate has not yet been reached. This is the reason for the setting of an interim tariff rate. I extend my sincere gratitude to Vice Premier Cheng and Minister without Portfolio of the Executive Yuan Yang Jen-ni (楊珍妮) for working tirelessly over the past few months leading the negotiation team, remaining on call whether in Taiwan or the US. From here in Taiwan I, along with Vice President Bi-khim Hsiao, National Security Council Secretary-General Joseph Wu (吳釗燮), Premier Cho Jung-tai (卓榮泰), and Secretary-General Pan Men-an (潘孟安), have also provided full support to our negotiating team in the US. Regardless of the final tariff rate, Taiwan’s industries will inevitably be impacted. I am deeply grateful to Premier Cho for proposing on April 4 a support plan for Taiwan’s export supply chain in response to US tariffs, and for holding over 20 industry consultation sessions. The special budget has also been increased from NT$88 billion to NT$93 billion. This special act has already been submitted to the Legislative Yuan and passed review. I hope that the Executive Yuan will promptly submit the budget request for legislative review so that the special budget can be implemented as soon as possible to assist SMEs in responding to this new US tariff policy.