Office of the President Republic of China(Taiwan)

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

On the afternoon of September 30, President Lai Ching-te met with a delegation led by Luke Lindberg, under secretary for Trade and Foreign Agricultural Affairs at the United States Department of Agriculture. In remarks, President Lai stated that Taiwanese businesses plan to purchase US$10 billion of American agricultural products over the next four years, which will boost the efficiency of Taiwan’s livestock industry and enhance its food security. The president expressed hope of utilizing Taiwan’s advantages in the high-tech industry to strengthen cooperation between Taiwan and the US in agricultural technology innovation and food security and resilience, fostering an even more mutually beneficial partnership.  A translation of President Lai’s remarks follows: It is a pleasure to once again welcome Under Secretary Lindberg, a good friend of Taiwan, just a year after his previous visit. Taiwan’s agricultural trade goodwill mission just concluded its visit to the US. And now, we are meeting with Under Secretary Lindberg and his delegation of dozens of industry representatives, highlighting the deep friendship and close partnership between Taiwan and the US. I extend a sincere welcome to our guests and applaud this step forward in Taiwan-US trade exchanges. Taiwan is currently the seventh-largest trade partner of the US and its seventh-largest export market for agricultural products. The US has also become Taiwan’s largest investment destination and largest market for agricultural exports. All of this goes to show that, in trade and the agricultural sector, Taiwan and the US are interdependent and enjoy close collaboration. This month, Taiwan’s agricultural mission visited Washington, DC, and several agricultural states, including South Dakota, Under Secretary Lindberg’s home state. This demonstrated that Taiwan is determined to continue elevating the Taiwan-US trade partnership. During the trip, industry representatives from Taiwan and the US signed procurement letters of intent. Taiwanese businesses plan to purchase US$10 billion of American agricultural products, including soybeans, wheat, corn, and beef, over the next four years. We anticipate that importing high-quality raw materials for animal feed will boost the efficiency of Taiwan’s livestock industry. And US agricultural products can also enhance Taiwan’s food security. Taiwan is also a reliable and important partner to the US in technology. Looking forward, we hope to utilize Taiwan’s advantages in the high-tech industry to strengthen cooperation between Taiwan and the US in agricultural technology innovation and food security and resilience. Taiwan faces geopolitical risks and challenges as it is situated on the first island chain in the Indo-Pacific and serves as a crucial hub for global non-red supply chains. I believe that regional neighbors and like-minded countries must join hands to safeguard global peace, stability, and prosperity. This delegation led by Under Secretary Lindberg not only contributes to mutual prosperity in agricultural trade across the public and private sectors, it also symbolizes the firm and steady steps by which we are deepening the strategic and economic partnership between Taiwan and the US. Let us continue to work together to strengthen Taiwan-US relations and contribute even more to global prosperity. Under Secretary Lindberg then delivered remarks, first thanking President Lai for having them here today. He then expressed their sincere best wishes to all of the people in Taiwan who were impacted by Super Typhoon Ragasa. He mentioned that their delegation, consisting of 25 US businesses, is here to help sell US agricultural products and build continued relationships in Taiwan. He also noted that it is a particularly exciting time of year to be here in Taiwan to celebrate the upcoming Mid-Autumn Festival, which is a time of cultural importance here in Taiwan.  Under Secretary Lindberg thanked Taiwanese consumers for continuing to purchase American agricultural products, adding that roughly 25 percent of the food that is imported into Taiwan is from the US, contributing to Taiwan’s food security. As a friend of Taiwan, he said, the US is also committed to Taiwan’s resilience through energy security.  Mentioning the recent goodwill mission that Taiwan’s minister of agriculture led to the US last week, Under Secretary Lindberg said that he comes as well with some goodwill for the Taiwanese people, explaining that they have decided to take the next step in allowing Taiwanese producers of pineapple access to the US market. He expressed hope that this will bring great joy and prosperity to many families here in Taiwan as the mid-autumn season begins. The under secretary said he looks forward to their discussion and expressed hope for continued prosperity and growing relations. The delegation was accompanied to the Presidential Office by American Institute in Taiwan Acting Director Karin M. Lang.

On the morning of September 30, President Lai Ching-te met with a delegation led by Japanese Liberal Democratic Party (LDP) Members’ General Assembly in the House of Councillors Chairperson Matsuyama Masaji. In remarks, President Lai stated that democratic countries must unite in solidarity in the face of the continued expansion of authoritarian regimes, and expressed hope to further deepen partnerships with Japan in areas such as security, trade, and the economy. He also emphasized jointly establishing democratic non-red supply chains, enhancing economic security, promoting regional peace, contributing even more to the world, and building an even brighter future for the Taiwan-Japan friendship. A translation of President Lai’s remarks follows: I want to sincerely welcome Chairperson Matsuyama and his delegation, who have taken the time to visit Taiwan, and I am grateful for their efforts to further deepen Taiwan-Japan exchanges. I am confident that this visit will help provide a greater understanding of Taiwan’s political and economic situation, as well as the development and achievements of Taiwan-Japan relations. Taiwan and Japan support each other like family. The care and condolences from various groups in Japan regarding the recent disaster in Hualien have been truly moving. Over the years, Taiwan and Japan have worked together to overcome challenges such as earthquakes and the pandemic, and have jointly faced the threat of authoritarian expansion. Japan has not only long remained attentive to the situation in the Taiwan Strait, but has also continued to demonstrate through concrete action its determination to maintain regional peace. Last week, the foreign ministers of the United States, Japan, and Korea convened and issued a joint statement, marking the third time this year that these countries have reaffirmed support for peace and stability in the Taiwan Strait. They also opposed any attempts to unilaterally change the status quo and voiced concern for the increasingly frequent destabilizing actions in the region. These firm standpoints represent a consensus among the global democratic community. Democratic countries must unite in solidarity in the face of the continued expansion of authoritarian regimes. Taiwan hopes to continue deepening its partnerships with Japan across areas such as security, trade, and the economy, including collaboration in industries like semiconductors, hydrogen energy, AI, and drones to jointly establish democratic non-red supply chains, enhance economic security, and promote regional peace and stability. In 2021, for the first time, the House of Councillors unanimously passed a resolution calling on countries to support Taiwan’s participation in the World Health Assembly. I want to express my gratitude once again and hope that all House of Councillors members will continue to support Taiwan’s international participation, allowing Taiwan to deepen exchanges on global issues and make even greater contributions to the world. I wish the delegation a successful and fruitful visit. I am sure that through our joint efforts, we will build an even brighter future for the Taiwan-Japan friendship. Chairperson Matsuyama then delivered remarks, noting that he visited Taiwan many times during his tenure as president of Junior Chamber International Japan. However, he said, this visit is his first as chairperson of the LDP Members’ General Assembly in the House of Councillors. He said it is an honor to meet President Lai and thanked him for taking the time to receive the delegation despite the recent typhoon in Hualien. He offered condolences for those who lost their lives, and extended sympathies to the injured, expressing his sincere hope that those affected by the disaster can soon return to their normal lives. Chairperson Matsuyama noted that both Taiwan and Japan frequently face natural disasters and have always extended help to each other in times of need. He expressed hope that our countries can further strengthen collaboration in disaster prevention and mitigation. Chairperson Matsuyama mentioned that the delegation visited Kaohsiung the day before to pay tribute with flowers at the bronze statue of former Prime Minister Shinzo Abe, and deeply felt the Taiwanese people’s respect for former Prime Minister Abe and their friendship with Japan. He emphasized that Taiwan is very important to Japan, as our countries share universal values. Economic exchanges and mutual visits between our two countries are frequent, he said, making Taiwan a key partner and friend. He expressed hope that Taiwan and Japan continue deepening exchanges and collaboration. Chairperson Matsuyama then presented President Lai with a list of donations from the delegation for those affected by the recent disaster in Hualien. The delegation also included Japanese House of Councillors Members Watanabe Takeyuki, Ueno Michiko, and Horii Iwao, and was accompanied to the Presidential Office by Japan-Taiwan Exchange Association Taipei Office Chief Representative Katayama Kazuyuki.

On the morning of September 26, President Lai Ching-te met with a delegation of Latin American and Caribbean intelligence and security chiefs in Taiwan for a joint meeting. In remarks, President Lai noted that previous joint meetings have been a great success, helping us defend against common threats. He stated that Taiwan will continue to enhance its self-defense capabilities and build whole-of-society defense and resilience, and going forward, hopes to strengthen joint defense and intelligence-sharing mechanisms with our allies and promote various exchanges to further enhance our collaborative capabilities. A translation of President Lai’s remarks follows: First, on behalf of the government and all the people of the Republic of China (Taiwan), I would like to offer a sincere welcome to the delegation. This visit by intelligence and security chiefs from our allies is not only a testament to the deep diplomatic friendships between Taiwan and your countries, but also represents our determination to resolutely defend shared values such as freedom and democracy. Previous joint meetings among intelligence chiefs from Taiwan, Latin America, and the Caribbean have been a great success. This multilateral cooperative mechanism promotes normalized intelligence resource sharing and exchanges, and helps us defend against common threats.  The international security environment is becoming increasingly complex, and multiple challenges including foreign infiltration, digital manipulation, disinformation, and cyberattacks are posing a massive threat to democratic systems. These challenges from authoritarian countries transcend borders, and only by strengthening cooperation among democratic allies can we prevent authoritarian expansion and build social and democratic resilience. In particular, over the past few years China has continued to increase military coercion against Taiwan, and has also engaged in infiltration, cognitive warfare, and manipulation around the world, using hybrid warfare tactics in an attempt to influence political decision-making in various countries and undermine the operations of democratic politics. Taiwan is on the forefront of threats from China. We continue to enhance our self-defense capabilities and build whole-of-society defense and resilience. Going forward, we hope to strengthen joint defense and intelligence-sharing mechanisms with our allies to enhance vigilance against China’s infiltration. I will also direct the National Security Bureau to continue to promote various exchange, assistance, and training mechanisms with our allies to further enhance our collaborative capabilities. I would like to take this opportunity to thank our allies for their long-term support for Taiwan, and for continuing to speak up for Taiwan at international venues. Taiwan is willing and able to contribute even more to the international community. We look forward to the continued support of our allies for Taiwan’s international participation, providing mutual assistance in the international arena to jointly promote mutual prosperity and development, maintain regional peace and stability, and safeguard global democracy and freedom. In closing, let me once again welcome you all to Taiwan. Please convey my most sincere greetings and best wishes to your heads of state, and let us continue to deepen the diplomatic alliances between our countries. Minister Marco Alcaraz of Paraguay’s National Secretariat of Intelligence then delivered remarks, stating that we are currently in an era of rapid global change, with technology developing at breakneck speed, influencing daily life, social systems, and public policy at virtually every level. While these circumstances compel every nation to formulate flexible and forward-looking response strategies, he said, these measures are insufficient to address increasingly complex and sophisticated technological attacks by geopolitical rivals. Minister Alcaraz indicated that in this context, hacktivism is rapidly rising, coinciding with China’s large-scale energy investments and economic policies in Latin America. This not only demonstrates China’s economic strength, he said, but has also allowed it to obtain critical information through secret tactics that it then uses to conduct negotiations and assess the risk levels of various projects. The minister stated that this brings substantial benefits to China, especially when promoting the Belt and Road Initiative, attempting to access information such as the organization of global supply chains, which has a direct impact on the stability and sovereignty of various countries. Minister Alcaraz further pointed out that all countries are facing attacks by various hacker organizations targeting strategic areas such as telecommunications, government agencies, the military, and non-governmental organizations. China’s goal is not only to steal sensitive data from the infrastructure of various countries, he said, but also to weaken their democratic systems, digital sovereignty, and diplomatic relations. Minister Alcaraz also stated that the more united allies are, the more opponents will try to divide us, so countries must make greater efforts to strengthen mutual cooperation and exchanges. Latin American countries are increasingly subject to China’s divisive tactics, he said, but in circumstances fraught with challenges and threats, Paraguay is never alone, with staunch allies always providing support, among which Taiwan is especially important. Minister Alcaraz expressed confidence that Taiwan and Paraguay will further deepen bilateral cooperation, and continue to consolidate our partnership through long-term strategic planning. Minister Alcaraz mentioned that President Lai’s staunch support and commitment to diplomatic relations have given Taiwan a pivotal role in strengthening alliances that promote regional cooperation and defend shared values. He then thanked Taiwan for playing a critical role in bringing Latin America and the Caribbean together as steadfast allies.

On the morning of September 25, President Lai Ching-te met with a delegation from the Institute for Indo-Pacific Security (IIPS), a think tank based in the United States. In remarks, President Lai emphasized that the people of Taiwan possess an unwavering determination to protect national sovereignty and that Taiwan is actively bolstering its self-defense capabilities and enhancing whole-of-society defense resilience. The president stated that Taiwan will continue to elevate Taiwan-US defense cooperation and advance exchanges with the US and other like-minded countries in such areas as national security, cybersecurity, and countering disinformation, while further strengthening the strategic economic and trade partnership with the US. He expressed his hope that the IIPS will continue to assist Taiwan in connecting with the US and deepening cooperation with other friends and allies. A translation of President Lai’s remarks follows: I am delighted to welcome back Chairman Randall G. Schriver, a good friend of Taiwan. It has been over a year since our last meeting. I look forward to exchanging views with you today. On behalf of Taiwan, I would like to once again express heartfelt condolences for the passing earlier this year of former US Deputy Secretary of State Richard Armitage, a mentor and dear friend of Chairman Schriver, and pay him tribute. I would also like to thank all of you for supporting Taiwan and for continuing to help strengthen Taiwan-US relations. The distinguished guests here today are members of the IIPS – the successor to the Project 2049 Institute – and experts who have served important roles in the US government. Your visit demonstrates the stable ties and close exchanges that Taiwan and the US enjoy on matters of national defense and security. Taiwan is situated at a crucial location on the first island chain in the Indo-Pacific and faces China’s political and military intimidation and gray-zone aggression. Thus, we profoundly appreciate the importance of national security and peace across the Taiwan Strait. I want to emphasize that the people of Taiwan possess an unwavering determination to protect national sovereignty, safeguard their free and democratic way of life, uphold the rules-based international order, and ensure regional peace and stability in line with global development interests. In the spirit of peace through strength, and strength through resilience, Taiwan is actively bolstering its self-defense capabilities and enhancing whole-of-society defense resilience. Just last Saturday, the largest-ever iteration of the Taipei Aerospace and Defense Technology Exhibition drew to a close. And that same day, the Office of the President held the first-ever Resilient Taiwan for Sustainable Democracy International Forum. During Chairman Schriver’s visit last year, we exchanged opinions on defense budgets as a percentage of GDP. Moving forward, Taiwan will continue to invest in national defense and security. Defense spending, as it is defined by NATO, will reach 3.32 percent of GDP next year, and is expected to reach 5 percent of GDP by 2030. Pursuing indigenous defense capabilities and adhering to our asymmetric strategy, Taiwan will continue to elevate Taiwan-US defense cooperation through military procurement from the US and joint research, development, and manufacturing. We will also advance exchanges with the US and other like-minded countries in such areas as national security, cybersecurity, and countering disinformation, as we work together to safeguard regional peace and stability. Moreover, Taiwan seeks to further strengthen its strategic economic and trade partnership with the US so as to jointly ensure global supply chain security and advance prosperity and development around the world. I look forward to the IIPS continuing to assist Taiwan in connecting with the US and deepening cooperation with other friends and allies. In closing, I once again welcome the delegation to Taiwan, and I wish you a pleasant and successful visit. Chairman Schriver then delivered remarks, first thanking President Lai for taking the time to meet with the delegation. He then offered their condolences and sympathies for the victims and all affected by the typhoon in Hualien and wished success to those engaged in relief and rescue work. He added that the IIPS team will be making contributions to the relief effort and expressed confidence that they will be joined by many Americans in that regard. Chairman Schriver, mentioning the meeting of the United Nations in New York, underlined the fact that Taiwan is not there, and pointed out that this is a reminder of China’s increasing pressure to isolate Taiwan and to prevent its meaningful participation in the UN, UN affiliated agencies, and other international organizations. However, he noted, it is also a reminder of Taiwan’s innovative approach to meaningful participation in regional and global affairs. Taiwan, he continued, is a generous country in its own relief efforts for neighboring countries and for countries out of the region, such as in its assistance during the Ebola outbreak in West Africa and, more recently, assistance to Ukrainian refugees in Poland. Despite the isolation, he said, Taiwan continues to be a tremendous regional and global citizen, which he believes will continue under President Lai’s leadership. Chairman Schriver stated that they are here to learn about Taiwan’s current situation and priorities as well as how they, as friends and strong advocates of Taiwan, can help when they return to Washington to promote international support as well as speak out for Taiwan. Chairman Schriver said that the overall Taiwan-US relationship is healthy, but noted that there is work to do. He expressed his hope that Taiwan and the US can keep deepening cooperation in such areas as trade and security, including the timely delivery of military equipment procured from the US. In closing, the chairman once again thanked President Lai for receiving the delegation.

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