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.

On the afternoon of June 23, President Tsai Ing-wen attended the first meeting of the Office of the President's Pension Reform Committee. The president emphasized that the need for reform of the national pension system is so urgent that "failure to act now will be regretted immediately." She also expressed hope that the post-reform pension system is stable and sustainable, so that the pension system can be an important part of the social safety net. That is the only way to put people at ease and achieve social cohesion. The following is the full text of the president's speech: The Office of the President's Pension Reform Committee is meeting today for the very first time, so I want to make a point of coming here to give my regards to all of you. I also want to announce to society that our government's pension reform committee is formally commencing its operations today. Various surveys have shown that the nation's pension system is one of the issues that the people of Taiwan are most concerned about. Structural changes, both demographic and industrial, are putting our pension system at risk of bankruptcy. Worries about financial security after retirement are very upsetting for a lot of people. The need for pension system reform is one of the most pressing issues we now face. I've said before that our administration is here to solve problems. Now, we must resolve the problems besetting our pension system. With some reforms, "failure to act now will be regretted later." But in this case, the need for reform of the national pension system is so urgent that "failure to act now will be regretted immediately." Taiwan's pension system problems have a long history plagued by poor financial planning. Now, aging demographics and a falling birth rate are causing funding shortfalls and generating huge deficits that threaten to bankrupt the system. On top of that, the lack of comprehensive planning means that citizens working in some sectors receive less generous retirement benefits than others simply because of their employment category, despite the fact that they've worked just as hard as anyone else and contributed just as much to society. The pension system should ensure basic security for all citizens; it should not cause some members of the public to worry about their old-age financial security after a lifetime of hard work. These problems have arisen because the original design of the system was not comprehensive enough, resulting in funding that is not sufficiently stable and discrepancies in the benefits received by retirees from different employment categories. This is a burden left over from the past. We are faced with systemic problems, not with problems that can be attributed to individuals. The point of pension reform is to resolve these problems so that all senior citizens can be adequately protected by our social safety net. Previous administrations have attempted reform on multiple occasions, but their efforts all came to naught. We've looked into the reasons, and have concluded that it was because pension reform affects the interests of the public. If the government acts unilaterally in pushing for reform, success is unlikely. This time around, therefore, we've adopted a bottom-up approach that welcomes expanded participation. We've established a national pension reform committee to serve as a platform for dialogue that will afford people from every segment of society opportunities to express their views via representatives. These principles guided the effort to establish the Office of the President's Pension Reform Committee. The committee members here today were all recommended by different occupational associations and broadly vetted prior to their selection. I would like to offer my thanks to each committee member. You've agreed to undertake this work because you appreciate the urgency need for reform. It is your participation that ensures a robust foundation for the reform effort. However, I want to stress that democratic procedure must be observed at your meetings. Reform must move forward in a sound manner. We must proceed one step at a time. At the same time, though, we have a responsibility to seize the historic opportunity before us by acting decisively to achieve a sustainable pension system for Taiwan. To ensure the success of reform, there are a few principles and objectives that we will have to keep in mind as we proceed. First, in terms of the system's design, we must take into consideration both financial stability and what the people can afford. Second, while maintaining reasonable benefits, we must provide for the financial security of disadvantaged people. Third, to maintain social cohesion and avoid controversy, we must narrow the retirement benefits gap between different occupations. And fourth, during the course of reform we must abide by democratic principles and maintain transparency. Another point of reform is to ensure that the post-reform pension system is stable and sustainable, so that the pension system can be an important part of the social safety net. That is the only way to put people at ease and achieve social cohesion. It's extremely gratifying to see that all of the committee members have been able to take part in today's meeting. I fervently hope that we can all maintain unity. For the sake of future generations, we have a responsibility to do more. I ask all of you to support reform and work together to safeguard Taiwan's future by establishing a sustainable, fair, and just pension system. And finally, I want to stress once again that an ideal pension reform must conform to the principles of equity. In seeking equality, we must also be appropriately tolerant of differences. I also want to stress once more that our purpose in pursuing pension system reform is to ensure the financial security of every senior citizen and the sustainability of the pension system.

In a recent interview via videoconference with The New York Times for its DealBook Summit, President Lai Ching-te responded to questions from host Andrew Ross Sorkin on topics including Taiwan’s national defense, cross-strait relations, Taiwan-US relations, the Russia-Ukraine war, and the semiconductor industry. The interview was broadcast in the early morning of December 4. The DealBook Summit is a major annual event held by The New York Times aimed at facilitating dialogue among leaders from various sectors and sharing their insights and analyses on international affairs. This year’s summit was held on December 3 (US EST) in New York, and included such speakers as Israeli Prime Minister Benjamin Netanyahu, United States Treasury Secretary Scott Bessent, California Governor Gavin Newsom, Palantir CEO Alex Karp, and Turning Point USA CEO and Chair of the Board Erika Kirk. The following is the full text of the interview: Q: Here’s where I want to start the conversation. You’ve just announced this past week that you’re introducing a US$40 billion special budget for military spending to buy more weapons from the US to try to deter China from invading Taiwan. What indicators, and perhaps new indicators, are you looking at that shows an increased threat to Taiwan? President Lai: We can see that China’s military drills targeted at Taiwan are becoming increasingly frequent and intense. They have even moved beyond the first island chain into the second, affecting the wider Indo-Pacific region. At the same time, China’s united front influence campaigns against Taiwan are also becoming more serious. In order to safeguard national security and fulfill our responsibility to maintain peace and stability across the Taiwan Strait, we have announced this special defense budget. We believe that peace is priceless, and war has no winners. While we aspire to peace, we cannot harbor illusions about it. Peace must be secured through strength. This is why we are increasing our defense budget and strengthening our national defense capabilities, while also cutting back our economic dependence on China. This includes improving our economic resilience. In 2010, 83.8 percent of Taiwan’s outbound investment went to China; last year, that figure had dropped to around 7 percent. We are also working side-by-side with other democracies to reinforce deterrence. Robust preparations are the best way to avoid war and achieve peace. Q: Let me ask you this: President Xi has said that his goal for China’s military is to be capable of taking Taiwan by force by 2027. You said that Beijing is accelerating these preparations for an attempted invasion. So what do you think China’s timeline is now? President Lai: We must ensure the best possible preparations for the worst-case scenarios. Whatever timeline the PLA may have, Taiwan’s fundamental principle is that we must be ready first – this is our basic principle. I also want to use this opportunity to reiterate to the international community that Taiwan will do everything necessary to protect itself and to safeguard regional peace and stability. We are grateful to the international community, including the G7, the president of the United States, Japan’s political leaders, and many others for their interest in cross-strait peace and emphasizing that stability in the Taiwan Strait is essential to global security and prosperity. Their shared position greatly contributes to stability in Taiwan and peace in the region. We hope Taiwan can continue working with the international community to uphold the rules-based international order. Q: Well, let me ask you about that because, Mr. President, last week you said the relationship between Taiwan and the US is rock-solid. How confident are you that the United States, and in particular President Trump, would come to the aid of Taiwan if China were to invade? President Lai: Although Taiwan and the United States do not have official diplomatic relations, Taiwan is deeply grateful to the US Congress for passing the Taiwan Relations Act and to President Ronald Reagan for the Six Assurances. For decades, successive US administrations and both parties in Congress have strongly supported Taiwan based on this foundation. Our relationship truly is rock-solid. Since President Trump took office, cooperation with Taiwan has not only continued but even expanded. We look forward to working with the United States through tariff negotiations – not only to help address their trade deficit, but also to deepen bilateral economic relations and strengthen our friendship. Q: We’ve all been watching what’s been happening play out in Ukraine between Ukraine and Russia. And there have been questions inside Ukraine about the support that the United States has provided or not in terms of how this ultimately gets settled. How do you view what’s happening in Ukraine right now and the role that the US is playing there? President Lai: Taiwan stands with the people of Ukraine. We hope this irrational and illegitimate war will be over as soon as possible so that the Ukrainian people will no longer have to suffer. However, in ending this war, we also hope that Ukraine’s national dignity and the well-being of its people will be respected, and future conflict will be prevented. Q: You talked about trade earlier. When you talk about the relationship between the US and Taiwan, one of the reasons that Taiwan is so valuable, such a strategic asset – and President Trump talks about it this way about Taiwan – is because of semiconductors. And one of the things that he says is that he hopes that the US is going to be manufacturing 40 to 50 percent of all semiconductors in the next couple of years with your help. Does that make Taiwan more valuable ultimately to the US or do you worry at all that it makes it less valuable to the US? President Lai: Taiwan’s semiconductor industry plays a crucial role, especially as we enter the future AI era. But I want to emphasize, with humility, that Taiwan’s semiconductor sector is a global asset. The industry functions as an ecosystem: the US excels in R&D, design, and has the world’s largest market; Japan provides materials and equipment; the Netherlands makes advanced lithography systems; Taiwan specializes in logic chip manufacturing; and Korea leads in flash memory chips. In other words, semiconductors are a global ecosystem – it requires worldwide cooperation to be effective. This is why our government supports TSMC and other Taiwanese semiconductor firms as they invest in the US, Japan, Europe, or wherever they believe is needed. This contributes to global progress and prosperity. As a result, we remain supportive as President Trump seeks investments from Taiwanese semiconductor companies and suppliers in the US. We hope Taiwan can support the reindustrialization of the US. President Trump wants the US to become the world center for AI, and we are willing to assist in this. As I said earlier, we hope Taiwan-US tariff negotiations will not only help reduce the US trade deficit, but also deepen bilateral economic cooperation, further integrate Taiwan’s industries with the American economic structure, and strengthen the Taiwan-US relationship. This will contribute to global prosperity and development. Q: Do you think that President Trump’s timeline, this idea that 40 to 50 percent of all semiconductors could be manufactured in the United States in the next two or three years, is realistic? President Lai: We understand President Trump’s sense of urgency; he wants the United States to maintain an edge in global competition. Whether this target of 40 to 50 percent can be achieved within this timeframe depends not only on Taiwan’s support but also on the US government’s ability to facilitate land acquisition, water and electricity supply, workforce and talent development, and investment incentives. If the US government manages to do this well and effectively, then this goal becomes much more achievable. Q: There’s a big debate in the United States right now about whether companies like Nvidia should be allowed to sell their most advanced chips to China. And there has not been a real answer yet here in the US. I’m curious what you think about that. Do you think that the most advanced chips should be allowed to be exported to China? President Lai: As Taiwan’s president, it would not be appropriate for me to comment on US domestic policy. But I can share an experience: Around the year 2000, Taiwan faced a similar debate about whether our advanced chip manufacturing capabilities should move to mainland China. There was an extensive and thorough discussion across society and among different political parties. The consensus was that it would be unwise and should not happen. Looking back, that decision was correct. Had Taiwan allowed its most advanced manufacturing to relocate to China, Taiwan would not be what it is today. Q: Final question for you. Your economy is red hot right now, in large part because of the AI boom. It’s a two-part question. I wonder whether you’re worried about an AI boom being an AI bubble. And I’m also curious how you think about the Chinese economy today and how that relates to how President Xi even views Taiwan, and when and if it would consider either invading or, through using the gray zone, trying to effectively cut off or control Taiwan. President Lai: There are many different views in the tech and economic communities. Some say AI could become a bubble; others say it may not. As a political leader, I believe the AI era will bring greater convenience to people’s lives, stimulate economic development, and contribute to global prosperity. That is why we must take steps to prevent AI from becoming a bubble. In other words, leaders around the world – especially those from countries with AI-related industries – should work together and take necessary measures to ensure AI develops sustainably and has a soft landing, so that it can drive long-term global growth. China’s economy is indeed struggling. Taiwan’s growth rate this year is projected to reach 7.37 percent, while international financial institutions estimate China’s growth to be only a little above 4 percent. We sincerely hope that as China faces economic pressures, President Xi Jinping will focus not on territorial expansion but on improving the well-being of the Chinese people. Taiwan is willing to help and to cooperate in addressing these economic challenges.

On the morning of November 26, President Lai Ching-te convened a high-level national security meeting regarding action plans to safeguard democratic Taiwan. Following the meeting, the president held a press conference to address intensifying threats from China against Taiwan and the Indo-Pacific region, introducing two major action plans: to uphold national sovereignty with a comprehensive democratic defense, and to bolster defense capabilities while developing a robust, full-spectrum defense industry. President Lai stated that the national security team and executive agencies will take action to demonstrate to the world Taiwan’s firm resolve and will to safeguard the nation and maintain the status quo. He said that the government aims to build defense capabilities, economic strength, and democratic defense mechanisms sufficient for Taiwan to protect itself, comprehensively responding to urgent national security threats and sparing no effort to safeguard democratic Taiwan. The president emphasized that democracy is not a provocation, and Taiwan’s existence is no excuse for aggressors to disrupt the status quo. Safeguarding democratic Taiwan, he said, is the shared responsibility of the government, ruling and opposition parties, and all the people of Taiwan. He expressed hope that all citizens will unite to safeguard the nation and the freedom of Taiwan’s people. A translation of President Lai’s remarks follows: Earlier today, I convened a high-level national security meeting to hear a briefing from our team regarding the current national security situation. The Beijing authorities have recently been comprehensively advancing attempts to turn democratic Taiwan into “Taiwan, China.” This has already posed a severe threat to our national security and Taiwan’s freedom and democracy. After thorough discussion, we have formulated a concrete strategic response: two national security action plans to safeguard democratic Taiwan, which I will now present. As the international community has noted, China’s threats against Taiwan and the Indo-Pacific region are intensifying. Recently, hybrid threats, including various types of military provocations, maritime gray-zone tactics, and disinformation and cognitive operations, have occurred continuously in and around Japan, the Philippines, and the Taiwan Strait, causing deep unease and disturbance for all parties in the region, including Taiwan. Furthermore, the Beijing authorities have set the goal of completing military preparations to attempt unification with Taiwan by force by 2027, and are accelerating preparations for an attempted invasion. They continue to ramp up military exercises and gray-zone aggression around Taiwan with the ambition to annex Taiwan by militarily forcing unification or surrender. Aside from its use of military force, China is also escalating legal, psychological, and public opinion warfare in its effort to erase Taiwan’s sovereignty from the world stage. By opposing independence, urging for unification, and engaging in transnational repression, it is attempting to encroach upon the jurisdiction of the Republic of China government and create a false impression of their substantive “governance” over Taiwan. China is expanding its united front infiltration and division tactics within Taiwan, with the aim of obscuring the national identity of our citizens and weakening our unity, all to forcibly impose their goals of “one country, two systems” and “governance by ‘patriots’” in Taiwan. The purpose of these actions is to take a free and prosperous Taiwan, a Taiwan that shines on the world stage, a democratic Taiwan, and lock it in an authoritarian cage under the label “Taiwan, China.” This would allow them to achieve their ambition of annexing Taiwan and dominating the Indo-Pacific region. To address this situation, which is more severe than ever, our national security team has formulated two major action plans to fully address urgent national security threats and safeguard democratic Taiwan. The first of these is to uphold national sovereignty with a comprehensive democratic defense. I want to reiterate that democratic Taiwan is a sovereign, independent nation; that among people here and in the international community, some call this land the Republic of China, some call it Taiwan, and some, the Republic of China Taiwan; that the Republic of China and the People’s Republic of China are not subordinate to each other; that Taiwan resists annexation or encroachment upon its sovereignty; and that the future of the Republic of China Taiwan must be decided by the 23 million people of Taiwan. This is the status quo that we must uphold. Therefore, we firmly oppose China’s distortion of United Nations General Assembly Resolution 2758 and its manipulation of historical World War II documents to falsify historical facts and falsely claim that Taiwan is part of the People’s Republic of China. We remain highly vigilant to the reality that while accelerating preparations to attempt unification with Taiwan by military force, China is also intensifying its push – internationally, across the strait, and in various fields – for an ostensibly “peaceful” unification that is in reality a forced unification, with the goal of bringing Taiwan under the jurisdiction of China. When it comes to national security, there is no room for compromise. National sovereignty and the core values of freedom and democracy are the foundation of Taiwan’s establishment. This struggle is not about ideology, and even less is it about unification versus independence. Rather, it is about defending democratic Taiwan and refusing to submit and become “Taiwan, China.” This is the shared position of the Taiwanese people. To uphold our sovereignty and build a strong democratic defense, we will take the following concrete actions: First, our national security team will work with the relevant agencies to establish a permanent task force to formulate action plans centered around democratic Taiwan versus “Taiwan, China.” Through strategic international and domestic communication, historical narrative, and counter-lawfare, these plans will help link Taiwan society and friends and allies to show the world that democratic Taiwan has the determination and will to defend itself and resolutely maintain the status quo. They will also comprehensively counter Beijing’s hegemonic actions that attempt to eliminate the sovereignty of the Republic of China and take away the freedom of Taiwan’s people, all of which disrupt the status quo. Second, facts and truth are the foundation upon which democratic countries build social trust and strengthen national identity. The Executive Yuan will assess China’s intervention, interference, and possible impact during major acts of governance and elections. By revealing the facts and ensuring the circulation of correct information, we will enhance the understanding and awareness of all sectors of society regarding Beijing’s interference in our internal affairs and its promotion of forced unification, strengthen our national identity, and achieve internal unity in facing external forces. Third, the 17 major strategies to counter China’s united front infiltration and national security threats that were released and implemented in March this year have already yielded initial results. The government will continue to implement those strategies and accelerate the promotion of legislation for 10 national security laws and related administrative measures to strengthen our protection of national security. Fourth, the Executive Yuan, along with the National Security Council (NSC), will take concrete measures and effective countermeasures against China’s transnational repression of Taiwan’s people, including: establishing a reporting, liaison, and protection system for victims; strengthening strategic communication with friendly and allied countries and international organizations to enhance transnational cooperation to protect potential victims; and improving the legal system and severely punishing local collaborators who assist China in carrying out transnational suppression, harming our nation and its citizens. Fifth, opinion polls show that the people of Taiwan have always overwhelmingly opposed China’s “one country, two systems” model for Taiwan. Through government policy declarations, Legislative Yuan resolutions, and collective action by political parties and civil society groups, it should be established that for Taiwan society, the “one country, two systems” model crosses a red line. On that basis, institutional norms should be established for exchanges and political dialogue between domestic political parties, legal entities, or civil society organizations and China, while using the principles of democratic governance and transparency to prevent China from exploiting Taiwan’s internal conflicts to promote forced unification. Next is an explanation of the second action plan: bolstering defense capabilities while developing a robust, full-spectrum defense industry. Peace is won through strength, and investing in national defense is investing in security, and investing in peace. Faced with China’s ever-increasing military threats and hegemonic ambitions toward the region and Taiwan, democratic countries in the Indo-Pacific region such as Japan, Korea, the Philippines, and even Australia are gradually forming a consensus on island chain defense and responsibility sharing, making more national defense investments, and strengthening their response to China’s threats. As the most important and critical link in the first island chain of defense, Taiwan must not become a gap in regional security. Taiwan must show determination, and take on greater responsibility for self-defense by enhancing national defense more quickly, dealing with threats through indigenous defense and joint deterrence. Three major strategies – denial, resilience, and the adoption of smart technologies – will be used to achieve the following three phased goals: The first goal is to achieve a high level of combat readiness for our armed forces’ joint combat units by 2027 to effectively deter threats from China. The second goal is to further build highly resilient and comprehensive deterrent defense capabilities by 2033. Our ultimate goal is to build national defense capabilities that can defend democratic Taiwan indefinitely. For this, we will take the following concrete actions: First, in response to development trends in global defense, Taiwan will systematically increase defense spending. 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, demonstrating our determination to defend the nation. Second, to build key combat capabilities for future warfare scenarios, the Ministry of National Defense (MND) has completed the planning and budgeting for a special act on procurement for enhancing defense, resilience, and asymmetric capabilities. Over the next eight years (2026-2033), we plan to invest NT$1.25 trillion to develop an advanced defense system including three major features: the T-Dome, a multi-layered air defense system with high-level detection and effective interception; the introduction of advanced technologies and AI to form a resilient defense system that enables efficient decision-making and precision strikes; and enhanced indigenous defense capabilities, expanding the defense industry for economic and security benefits. Third, the Executive Yuan will complete their review of the draft act and submit it to the Legislative Yuan. It will also instruct the Ministry of Finance and the Directorate-General of Budget, Accounting and Statistics to properly manage funding sources and finances to avoid crowding out other budget items. Fourth, in view of the successful integration and rapid iteration of new technologies, the MND will comprehensively optimize and strengthen equipment procurement mechanisms, accelerate acquisition and military development timelines, and ensure anti-corruption measures are in place to prevent delays. Fifth, while introducing advanced equipment and continuously developing asymmetric capabilities and defense resilience, the MND will to its utmost to implement comprehensive and timely reforms to optimize military force structure and develop new training methods, tactics, and logistical support. Increasing defense spending not only enhances military capabilities and national security, but also strengthens defense industry development and boosts national income. In addition to foreign procurement, this special budget will allocate a significant portion to domestic construction projects, commercial purchasing, and commissioned production, creating substantial economic output and employment opportunities. With Taiwan’s strong capabilities in high tech and manufacturing, including an integrated ecosystem of semiconductors, ICT, and AI, as well as precision machinery and related foundational industries, the country can play a significant role in the global advanced defense and military industry. This can also drive the transformation and upgrading of domestic industries and the economy, enabling more engineers and technology professionals to help strengthen national defense, fulfilling our goal of building a strong nation with prosperous citizens. Sixth, the government will promptly formulate an action plan for defense and military industry development. On this basis, we will develop a comprehensive strategy to further advance Taiwan’s industry and economy. Seventh, to support cooperation with friends and allies and build non-red supply chains, we will strengthen measures on the protection of high tech to fully safeguard and utilize advanced technologies. Eighth, the NSC, together with the MND and relevant agencies, will strengthen public communication, build consensus, and secure the support and recognition of our people, guided by the principle of investing in defense, peace, and Taiwan’s economic future. My fellow citizens, China has many scenarios for annexing Taiwan, but the greatest threat of all is not their military force, but our giving in. Under China’s united front offensive, some individuals regard upholding democracy and enjoying freedom as a provocation to China, mistakenly believing that if the people of Taiwan are willing to give up some freedoms or sacrifice some sovereignty, and humbly accept the transformation of democratic Taiwan into “Taiwan, China,” it could somehow secure “peace.” History, however, has shown that compromising with aggressors only leads to endless war and oppression. In 1938, many in Europe believed that if Czechoslovakia ceded some territory to the fascists, it could secure a generation of peace. Instead, it triggered the full outbreak of World War II, bringing untold suffering and tragedy. In 1951, the people of Tibet thought that by signing the Seventeen Point Agreement with Beijing, they could preserve their culture and way of life. Instead, their snowy nation became a red plateau under communist control. Democracy is not a provocation, and Taiwan’s existence is no excuse for aggressors to disrupt the status quo. As a democratic country, our ruling and opposition parties may hold differing views, but we sincerely hope that in safeguarding democracy and freedom of the Republic of China Taiwan and ensuring national sovereignty, we can oppose any actions that disrupt the status quo of peace and stability in the region. Protecting democratic Taiwan and preventing Taiwan from being forcibly annexed or reduced to “Taiwan, China” must be the shared responsibility of the government, ruling and opposition parties, and all the people of Taiwan. We must all unite to safeguard our nation and the freedom of Taiwan’s people. Our national security team and administrative agencies will now take action to build defense capabilities, economic strength, and democratic defense mechanisms sufficient for Taiwan to protect itself – laying an unshakable foundation to secure Taiwan’s safety and national sovereignty. For Taiwan, for the Republic of China, let us all take action together! Thank you. May Taiwan be blessed! Let’s keep going, Taiwan!

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.