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!

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.

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.

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.

In a recent interview on Nippon Television’s news zero program, President Lai Ching-te responded to questions from host Mr. Sakurai Sho and Yomiuri TV Shanghai Bureau Chief Watanabe Masayo on topics including reflections on his first year in office, cross-strait relations, China’s military threats, Taiwan-United States relations, and Taiwan-Japan relations. The interview was broadcast on the evening of May 19. During the interview, President Lai stated that China intends to change the world’s rules-based international order, and that if Taiwan were invaded, global supply chains would be disrupted. Therefore, he said, Taiwan will strengthen its national defense, prevent war by preparing for war, and achieve the goal of peace. The president also noted that Taiwan’s purpose for developing drones is based on national security and industrial needs, and that Taiwan hopes to collaborate with Japan. He then reiterated that China’s threats are an international problem, and expressed hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war. Following is the text of the questions and the president’s responses: Q: How do you feel as you are about to round out your first year in office? President Lai: When I was young, I was determined to practice medicine and save lives. When I left medicine to go into politics, I was determined to transform Taiwan. And when I was sworn in as president on May 20 last year, I was determined to strengthen the nation. Time flies, and it has already been a year. Although the process has been very challenging, I am deeply honored to be a part of it. I am also profoundly grateful to our citizens for allowing me the opportunity to give back to our country. The future will certainly be full of more challenges, but I will do everything I can to unite the people and continue strengthening the nation. That is how I am feeling now. Q: We are now coming up on the 80th anniversary of the end of World War II, and over this period, we have often heard that conflict between Taiwan and the mainland is imminent. Do you personally believe that a cross-strait conflict could happen? President Lai: The international community is very much aware that China intends to replace the US and change the world’s rules-based international order, and annexing Taiwan is just the first step. So, as China’s military power grows stronger, some members of the international community are naturally on edge about whether a cross-strait conflict will break out. The international community must certainly do everything in its power to avoid a conflict in the Taiwan Strait; there is too great a cost. Besides causing direct disasters to both Taiwan and China, the impact on the global economy would be even greater, with estimated losses of US$10 trillion from war alone – that is roughly 10 percent of the global GDP. Additionally, 20 percent of global shipping passes through the Taiwan Strait and surrounding waters, so if a conflict breaks out in the strait, other countries including Japan and Korea would suffer a grave impact. For Japan and Korea, a quarter of external transit passes through the Taiwan Strait and surrounding waters, and a third of the various energy resources and minerals shipped back from other countries pass through said areas. If Taiwan were invaded, global supply chains would be disrupted, and therefore conflict in the Taiwan Strait must be avoided. Such a conflict is indeed avoidable. I am very thankful to Prime Minister of Japan Ishiba Shigeru and former Prime Ministers Abe Shinzo, Suga Yoshihide, and Kishida Fumio, as well as US President Donald Trump and former President Joe Biden, and the other G7 leaders, for continuing to emphasize at international venues that peace and stability across the Taiwan Strait are essential components for global security and prosperity. When everyone in the global democratic community works together, stacking up enough strength to make China’s objectives unattainable or to make the cost of invading Taiwan too high for it to bear, a conflict in the strait can naturally be avoided. Q: As you said, President Lai, maintaining peace and stability across the Taiwan Strait is also very important for other countries. How can war be avoided? What sort of countermeasures is Taiwan prepared to take to prevent war? President Lai: As Mr. Sakurai mentioned earlier, we are coming up on the 80th anniversary of the end of WWII. There are many lessons we can take from that war. First is that peace is priceless, and war has no winners. From the tragedies of WWII, there are lessons that humanity should learn. We must pursue peace, and not start wars blindly, as that would be a major disaster for humanity. In other words, we must be determined to safeguard peace. The second lesson is that we cannot be complacent toward authoritarian powers. If you give them an inch, they will take a mile. They will keep growing, and eventually, not only will peace be unattainable, but war will be inevitable. The third lesson is why WWII ended: It ended because different groups joined together in solidarity. Taiwan, Japan, and the Indo-Pacific region are all directly subjected to China’s threats, so we hope to be able to join together in cooperation. This is why we proposed the Four Pillars of Peace action plan. First, we will strengthen our national defense. Second, we will strengthen economic resilience. Third is standing shoulder to shoulder with the democratic community to demonstrate the strength of deterrence. Fourth is that as long as China treats Taiwan with parity and dignity, Taiwan is willing to conduct exchanges and cooperate with China, and seek peace and mutual prosperity. These four pillars can help us avoid war and achieve peace. That is to say, Taiwan hopes to achieve peace through strength, prevent war by preparing for war, keeping war from happening and pursuing the goal of peace. Q: Regarding drones, everyone knows that recently, Taiwan has been actively researching, developing, and introducing drones. Why do you need to actively research, develop, and introduce new drones at this time? President Lai: This is for two purposes. The first is to meet national security needs. The second is to meet industrial development needs. Because Taiwan, Japan, and the Philippines are all part of the first island chain, and we are all democratic nations, we cannot be like an authoritarian country like China, which has an unlimited national defense budget. In this kind of situation, island nations such as Taiwan, Japan, and the Philippines should leverage their own technologies to develop national defense methods that are asymmetric and utilize unmanned vehicles. In particular, from the Russo-Ukrainian War, we see that Ukraine has successfully utilized unmanned vehicles to protect itself and prevent Russia from unlimited invasion. In other words, the Russo-Ukrainian War has already proven the importance of drones. Therefore, the first purpose of developing drones is based on national security needs. Second, the world has already entered the era of smart technology. Whether generative, agentic, or physical, AI will continue to develop. In the future, cars and ships will also evolve into unmanned vehicles and unmanned boats, and there will be unmanned factories. Drones will even be able to assist with postal deliveries, or services like Uber, Uber Eats, and foodpanda, or agricultural irrigation and pesticide spraying. Therefore, in the future era of comprehensive smart technology, developing unmanned vehicles is a necessity. Taiwan, based on industrial needs, is actively planning the development of drones and unmanned vehicles. I would like to take this opportunity to express Taiwan’s hope to collaborate with Japan in the unmanned vehicle industry. Just as we do in the semiconductor industry, where Japan has raw materials, equipment, and technology, and Taiwan has wafer manufacturing, our two countries can cooperate. Japan is a technological power, and Taiwan also has significant technological strengths. If Taiwan and Japan work together, we will not only be able to safeguard peace and stability in the Taiwan Strait and security in the Indo-Pacific region, but it will also be very helpful for the industrial development of both countries. Q: The drones you just described probably include examples from the Russo-Ukrainian War. Taiwan and China are separated by the Taiwan Strait. Do our drones need to have cross-sea flight capabilities? President Lai: Taiwan does not intend to counterattack the mainland, and does not intend to invade any country. Taiwan’s drones are meant to protect our own nation and territory. Q: Former President Biden previously stated that US forces would assist Taiwan’s defense in the event of an attack. President Trump, however, has yet to clearly state that the US would help defend Taiwan. Do you think that in such an event, the US would help defend Taiwan? Or is Taiwan now trying to persuade the US? President Lai: Former President Biden and President Trump have answered questions from reporters. Although their responses were different, strong cooperation with Taiwan under the Biden administration has continued under the Trump administration; there has been no change. During President Trump’s first term, cooperation with Taiwan was broader and deeper compared to former President Barack Obama’s terms. After former President Biden took office, cooperation with Taiwan increased compared to President Trump’s first term. Now, during President Trump’s second term, cooperation with Taiwan is even greater than under former President Biden. Taiwan-US cooperation continues to grow stronger, and has not changed just because President Trump and former President Biden gave different responses to reporters. Furthermore, the Trump administration publicly stated that in the future, the US will shift its strategic focus from Europe to the Indo-Pacific. The US secretary of defense even publicly stated that the primary mission of the US is to prevent China from invading Taiwan, maintain stability in the Indo-Pacific, and thus maintain world peace. There is a saying in Taiwan that goes, “Help comes most to those who help themselves.” Before asking friends and allies for assistance in facing threats from China, Taiwan must first be determined and prepared to defend itself. This is Taiwan’s principle, and we are working in this direction, making all the necessary preparations to safeguard the nation. Q: I would like to ask you a question about Taiwan-Japan relations. After the Great East Japan Earthquake in 2011, you made an appeal to give Japan a great deal of assistance and care. In particular, you visited Sendai to offer condolences. Later, you also expressed condolences and concern after the earthquakes in Aomori and Kumamoto. What are your expectations for future Taiwan-Japan exchanges and development? President Lai: I come from Tainan, and my constituency is in Tainan. Tainan has very deep ties with Japan, and of course, Taiwan also has deep ties with Japan. However, among Taiwan’s 22 counties and cities, Tainan has the deepest relationship with Japan. I sincerely hope that both of you and your teams will have an opportunity to visit Tainan. I will introduce Tainan’s scenery, including architecture from the era of Japanese rule, Tainan’s cuisine, and unique aspects of Tainan society, and you can also see lifestyles and culture from the Showa era.  The Wushantou Reservoir in Tainan was completed by engineer Mr. Hatta Yoichi from Kanazawa, Japan and the team he led to Tainan after he graduated from then-Tokyo Imperial University. It has nearly a century of history and is still in use today. This reservoir, along with the 16,000-km-long Chianan Canal, transformed the 150,000-hectare Chianan Plain into Taiwan’s premier rice-growing area. It was that foundation in agriculture that enabled Taiwan to develop industry and the technology sector of today. The reservoir continues to supply water to Tainan Science Park. It is used by residents of Tainan, the agricultural sector, and industry, and even the technology sector in Xinshi Industrial Park, as well as Taiwan Semiconductor Manufacturing Company. Because of this, the people of Tainan are deeply grateful for Mr. Hatta and very friendly toward the people of Japan. A major earthquake, the largest in 50 years, struck Tainan on February 6, 2016, resulting in significant casualties. As mayor of Tainan at the time, I was extremely grateful to then-Prime Minister Abe, who sent five Japanese officials to the disaster site in Tainan the day after the earthquake. They were very thoughtful and asked what kind of assistance we needed from the Japanese government. They offered to provide help based on what we needed. I was deeply moved, as former Prime Minister Abe showed such care, going beyond the formality of just sending supplies that we may or may not have actually needed. Instead, the officials asked what we needed and then provided assistance based on those needs, which really moved me. Similarly, when the Great East Japan Earthquake of 2011 or the later Kumamoto earthquakes struck, the people of Tainan, under my leadership, naturally and dutifully expressed their support. Even earlier, when central Taiwan was hit by a major earthquake in 1999, Japan was the first country to deploy a rescue team to the disaster area. On February 6, 2018, after a major earthquake in Hualien, former Prime Minister Abe appeared in a video holding up a message of encouragement he had written in calligraphy saying “Remain strong, Taiwan.” All of Taiwan was deeply moved. Over the years, Taiwan and Japan have supported each other when earthquakes struck, and have forged bonds that are family-like, not just neighborly. This is truly valuable. In the future, I hope Taiwan and Japan can be like brothers, and that the peoples of Taiwan and Japan can treat one another like family. If Taiwan has a problem, then Japan has a problem; if Japan has a problem, then Taiwan has a problem. By caring for and helping each other, we can face various challenges and difficulties, and pursue a brighter future. Q: President Lai, you just used the phrase “If Taiwan has a problem, then Japan has a problem.” In the event that China attempts to invade Taiwan by force, what kind of response measures would you hope the US military and Japan’s Self-Defense Forces take? President Lai: As I just mentioned, annexing Taiwan is only China’s first step. Its ultimate objective is to change the rules-based international order. That being the case, China’s threats are an international problem. So, I would very much hope to work together with the US, Japan, and others in the global democratic community to prevent China from starting a war – prevention, after all, is more important than cure.

On the morning of May 20, President Lai Ching-te delivered an address on the first anniversary of his taking office. In his address, the president stated that the Taiwan of today is a Taiwan of the world, and whether it is global technological development, divisions of labor within international supply chains, worldwide economic and trade exchanges, or regional security matters, Taiwan plays a pivotal and indispensable role. He said that, looking forward, we will not cower in the face of challenges; rather, we will bravely march forward into the future. We will maintain solidarity, he emphasized, and with our resilience, perseverance, and enthusiasm as Taiwanese, forge ahead with transition, steadily and solidly.  President Lai stated that moving forward, the government will set up a fund to boost Taiwan’s economic momentum. He also stated that he will be instructing the national security team to initiate a major national security briefing for the chairs of opposition parties, in the hope that leaders of all parties can prioritize our nation’s interests and uphold our nation’s security so that we can tackle our nation’s challenges side by side. A translation of President Lai’s address follows: Yesterday, outside of Beida Elementary School in New Taipei City’s Sanxia District, there was a major traffic accident that, sadly, claimed several lives and resulted in multiple injuries. The Executive Yuan immediately formed a task force, and last night I personally visited the victims in hospital. Central government agencies and the local government will cooperate to provide assistance to the victims’ families. They will work as quickly as possible to determine the cause of the accident and assess areas for improvement, so as to prevent reoccurrence of accidents like this. Today, let me express my deepest condolences to the bereaved families for the unfortunate loss of life and my hope for the quick and full recovery of those injured. The purpose of government is to serve the people. I want to thank the people of Taiwan for entrusting me, one year ago today, with the responsibility of leading the nation bravely forward. I want to thank all my fellow citizens for working hand in hand with the government over this past year. Together, we have overcome numerous challenges to ensure that our nation will keep moving forward.  As we face three major challenges that receive international attention and create the largest impact on our citizens: climate change, the promotion of health, and social resilience, I decided to establish three committees at the Presidential Office. In each committee, we have thus far seen incremental progress. We are working to align ourselves with international standards. The voluntary bottom-up plans of different government agencies plus the top-down approach of the Executive Yuan National Council for Sustainable Development’s Net Zero Emissions Transition Taskforce have produced 20 flagship carbon reduction projects for six major sectors. The government is expected to continue to inject over NT$1 trillion in the budget for the net-zero transition by 2030; and we expect to spur at least NT$5 trillion in private green investment and financing as we work toward the new 2035 NDC target for emissions reductions of 38±2 percent. Taiwan’s air quality has been steadily improving. From 2015 to today, the annual average PM2.5 concentration has dropped from 21.82 to 12.8 μg/m3. Taiwan officially began collecting fees for its carbon fee system this year. With firm resolve, a steady pace, and flexible strategies, we will work to realize the vision of net-zero transition by 2050; and together with the world we will pursue sustainable growth and prosperous development. To address the challenges in the post-pandemic world, we are establishing a national center for disease prevention and control, strengthening our central pandemic response. To promote health for all, we are promoting cancer screening, establishing a fund for new cancer drugs, and launching the five-year, NT$48.9 billion Healthy Taiwan Cultivation Plan. This year, we significantly increased the total National Health Insurance budget by NT$71.2 billion to achieve sustainable NHI development. We aim to create a Healthy Taiwan, keeping people healthy and making the nation stronger so that the world embraces Taiwan. We are also hard at work to enhance our whole-of-society defense resilience. In addition to continuing to assess various aspects of preparedness at the national level and conduct field verification, we have concerted the efforts of various ministries to propose 17 major strategies to respond to national security and united front threats, uniting our people to resist division and protecting our cherished free and democratic way of life. Recently, the Executive Yuan made special budget allocations of NT$410 billion, of which NT$150 billion is aimed to enhance national resilience. On this, we look forward to mutual support from the ruling and opposition parties. As our nation continues on the path forward, challenges and obstacles will continue to emerge. Early last month, the United States announced its new tariff policy, and in response I proposed five major strategies. I also launched industry listening tours, with the aim of working alongside industries to overcome challenges and open up new opportunities. The Executive Yuan is also soliciting opinions from all sectors as quickly as possible to put forward a special act to enhance the resilience of Taiwan’s national security. The annual surplus will be utilized in the special budget allocations totaling NT$410 billion to not only support industries and stabilize employment, but also strengthen the economy, protect people’s livelihoods, enhance resilience in homeland security, and ensure that Taiwan’s industries continue to steadily advance amidst changing circumstances. Notably, in our discussions across different industries, all sectors advocated against raising electricity prices and were in support of government subsidies for Taiwan Power Company. These would offset Taipower’s losses from subsidies to support people’s livelihoods and for industrial electricity usage since the COVID-19 pandemic and Russo-Ukrainian War, both strengthening its finances and stabilizing electricity prices. We look forward to cooperation among the ruling and opposition parties to pass the Executive Yuan’s special budget. All sectors hope to maintain a stable power supply. As energy security is national security, ensuring a stable power supply while developing more forms of green energy is, whether now or in the future, one of the government’s most important tasks. Aside from the issue of electricity prices, the Taiwanese people have also been closely following the recent Taiwan-US tariff negotiations. The first round of in-person talks have concluded, and tariff negotiations are currently still going smoothly. The government will uphold the principles of ensuring national interests and safeguarding industry development, under no circumstances sacrificing any one sector. We will stand firm on Taiwan’s position and, from the basis of deepening Taiwan-US economic and trade relations, strive for optimal negotiation results in a well-paced, balanced manner. Taiwan shares democratic values with our democratic partners around the world. When combined with our adherence to free market principles to foster mutual prosperity, those values are our greatest assets. They form a protective umbrella that allows Taiwanese businesses to unleash their vitality and energy. They are also the most significant mark of distinction between us and authoritarian regimes. For many years now, Taiwan, the US, and our democratic partners have actively engaged in exchange and cooperation, spurring mutual growth. Among friends, there is always some friction; but that friction is always resolvable. Just as it says in the Bible, “As iron sharpens iron, so one person sharpens another.” Through mutual exchange, friends can smooth out their shortcomings and further hone their strengths. Even when differences arise, so long as there is a foundation built on trust and honest dialogue, friends can better understand one another and further deepen their bonds. Now, Taiwan’s market is global; its stage is international. Going forward, we will hold firm to our democratic values and expand into diverse markets. First, Taiwan’s economic path is clearly established. Taking a market-oriented approach, we will promote an economic path of staying firmly rooted in Taiwan and expanding the global presence of our enterprises while strengthening ties with the US. In recent years, Taiwan has updated investment protection agreements with such countries as the Philippines, India, Vietnam, and Thailand, and signed a foreign investment promotion and protection arrangement with Canada. Moving forward, we will endeavor to sign investment protection agreements and double taxation avoidance agreements with our friends and allies. Second, Taiwan’s trade strategy is clearly defined. We will extend our market connections with the US and other free, democratic nations, expanding our presence worldwide. To that end, we have completed the signing of the first agreement under the Taiwan-US Initiative on 21st-Century Trade and signed an enhanced trade partnership arrangement with the United Kingdom. We are in active negotiations on trade agreements with other countries, and we continue to seek admission to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and other mechanisms for regional economic integration. Third, we must ensure that Taiwan’s economy is export-led while expanding domestic demand, concurrently prioritizing strong technological R&D and upgraded traditional industries, and boosting software development, production, and manufacturing. We must also continue tapping into Taiwan’s strengths to attract international firms here to invest and collaborate. In just the past few years, Entegris opened a new manufacturing facility in Kaohsiung, Micron launched a new facility in Taichung, and Google further solidified Taiwan as its biggest R&D hub outside of the US by opening a new office here. AMD, Nvidia, and major cloud computing companies from the US have also been expanding their presence here. And yesterday, Nvidia even announced that it will establish an overseas headquarters in Taiwan. Through such collaboration across borders, we are introducing advanced technology from overseas and engaging in international R&D. We will build Taiwan into an even more resilient economy. Moving forward, the government will set up a fund to boost Taiwan’s economic momentum. With our sights set on the whole globe, we will invest in international markets, while the government will also set up a sovereign wealth fund and build a national-level investment platform. We will make full use of Taiwan’s industrial advantages and, with the government taking the lead and synergizing private-sector enterprises, expand our global presence and link with major target markets of the AI era. Domestically, we will bolster local supply chains and strengthen industries’ ability to adapt to changing circumstances. The government will enhance the functions of the National Development Fund to achieve industrial restructuring and assist domestic industries and small- and medium-sized enterprises with upgrading and transformation, raising international competitiveness and consolidating domestic industry foundations. My fellow citizens, our market and our values are defined by democracy. Democracy is also a display of our national strength. Taiwan was once the country with the world’s longest martial law period, but now, we are a beacon for democracy in Asia. Our past generations, through valiant sacrifice and devotion, bravely resisted authoritarianism and pursued democracy. Today’s younger generations are able to proactively engage in politics, protect the nation, further entrench democracy, and strive for a diverse Taiwan through all manner of constitutional and legal means, without fear of difficulty. This is the democratic Taiwan we take pride in. I am confident that no one Taiwanese would give up their free and democratic way of life. And no president can abandon the values of freedom and democracy. On the path of democracy, Taiwan never relied on the mobilization of hate; rather, it relied on the participation and coming together of citizens. We do not fear differences in opinion because the core of democracy is about finding, within difference, unity. I have always believed that democratic disputes are resolved through greater exercise of democracy. Over the past year, despite the domestic political situation, ruling and opposition parties formed a delegation to attend the inaugural ceremonies of the president and vice president of the US, demonstrating that democratic Taiwan stands united for deepening Taiwan-US ties. I also, in accordance with the powers granted me by the Constitution, convened a national policy meeting with the heads of the five branches of government, with the hope of achieving reconciliation and encouraging cooperation. I have always been willing, with open arms, to work hard for cross-party dialogue and strengthened cooperation among our political parties. That is why I will be instructing our national security team to initiate a major national security briefing for the chairs of opposition parties. It is hoped that leaders of all parties, regardless of political stance, can prioritize our nation’s interests and uphold our nation’s security; and grounded in shared facts, we can openly and honestly exchange views and discuss matters of national importance, so that we can tackle our nation’s challenges side by side. Later today is the opening ceremony of COMPUTEX TAIPEI, an event that will be closely followed in the international community. Taiwan, as the world’s silicon island, is a central pillar in the global economy and the field of AI, and this event will therefore attract important tech industry figures from around the world. Once a small-scale expo initially held near Taipei’s Songshan Airport, COMPUTEX has continued to grow in scale over the past 40-plus years, and now marks an important milestone in the development of global technological innovation. COMPUTEX is a microcosm of the Taiwan story, an achievement that the people of Taiwan share. The Taiwan of today is a Taiwan of the world. Whether it is global technological development, divisions of labor within international supply chains, worldwide economic and trade exchanges, or regional security matters, Taiwan plays a pivotal and indispensable role. My fellow citizens, we do not cower in the face of challenges; rather, we bravely march forward into the future. As the saying goes, success is 30 percent destiny and 70 percent hard work. We will maintain solidarity, and with our resilience, perseverance, and enthusiasm as Taiwanese, forge ahead with transition, steadily and solidly. That is the spirit of us Taiwanese. We will keep working together in solidarity and meet challenges with firm strides, making Taiwan a global beacon, a pilot for world peace, and a force for global prosperity. Thank you.