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2019-03-21
President Tsai is interviewed by UK-based Monocle magazine

During an interview with UK-based Monocle magazine, President Tsai Ing-wen responded to questions regarding her background, political career, reforms, national defense, Taiwan-US relations, cross-strait relations, and the 2020 presidential election.

The text of the interview follows:

Q: Can you tell me something surprising about yourself? It doesn’t have to be your deepest secret, but is there something that people don’t really know about you?

A: People usually think that a woman politician probably is not as tough as a male one. And the fact that I was a professor for a long time—people tend to think that professors are not political enough. So this sense that people thought I was not politically tough enough is something that some people had a question mark with. But by now they should know that I’m politically okay, and I’m tough enough, even if my language might be soft.
 
Q: One of the things I’m fascinated about, looking into your upbringing, you’re the youngest of eleven children—

A: Yes.

Q: What I want to know from you is what was it like growing up being the youngest of eleven? Such a huge family.

A: On the one hand, the good side of it is that I have so many brothers and sisters, and my parents had all these dreams about the achievements of their children. So they always want to see the elders, the older children, perform better. So I do have sisters and brothers who performed very well at school. So that fulfilled my parents’ dream. So, in a way, I didn’t have much pressure as to how I’m going to perform in school. So, relatively, I did have an easy childhood in a sense that I didn’t have much pressure from my parents.

On the other hand, though, having so many brothers and sisters, I had to learn how to deal with them! And they, of course, have to deal with me, as well. But overall, it’s the parents. If the parents are fair enough, and know how to take care of the children, I don’t think there’s much complication there.
 
Q: You have, like I said, a very compact family now. Do you think growing up amongst that huge family has had an impact on your decisions—your personal decisions?

A: No. The thing is, as a politician, I deal with people every day. I deal with people in the office, I deal with people outside, and especially when a big gathering of people. In other words, I talk to people all the time, I deal with people all the time—I mean, with them, and try to understand what they are thinking. So my childhood helped, because I have so many brothers and sisters that I tried to observe, and understand them. And I was a negotiator for some time, and I learned how to … I trained myself how to observe, how to react to people’s comments. And this is a, sort of a new challenge for me, to mingle with the public, and to observe them, how they react, and what they want to express. So after a whole day of dealing with people, the last thing I want to do when I go home is to deal with people again! So normally I want to be by myself and have a good reflection on what happened during the day, and what needs to be done the next day.
 
Q: I know your father was a businessman. But would you say you grew up in a political household, or did your political awakening come later in life?

A: Oh, the political awakening came much later. My family … my father didn’t like his children getting too much involved in politics, and that is very typical of the last generation of parents because of this authoritarian rule; they didn’t want their children to get too much involved in politics. My father was a typical one, and he thought that his children should become professionals, like lawyers, doctors, architects, that sort of thing, and he didn’t make a plan for his children to become politicians at all.
 
Q: Just by being a woman in this role, you’ve very much changed the presidency of Taiwan, certainly from the optics. But in the last three years, during your first term, what is like the biggest change you’ve brought about to the Office of the President?

A: It’s very much in the policy area, because there are so many reforms that need to be carried out because we’re running short of time—especially the pension funds. Some of them may go bankrupt soon. So if we don’t do things, the whole system—the pension system—may collapse, and would become a financial disaster for the country. And also we have to assure pensioners that they will be able to receive pension payments without any sort of interruptions.

So it’s something we ought to do, and we have to do. This pension reform is unprecedented, and no political leader would dare to touch it, because as with pension reforms in other places, if you want to make it financially sound, you have to cut payments. And our previous payment terms were actually rather generous, in fact, too generous, and that caused a lot of discontent here, because people feel that it is not fair for laborers and government employees … the government employees’ pension fund was much more generous than what laborers can get after they retire. So there’s a sense of injustice going on. So we need to address that sense-of-justice issue, and also try to deal with the financial side of pension funds, to make it sustainable.

So we thought we did quite all right in terms of the financial side. After reform, the pension funds can sustain for at least two or three decades, and the payment cuts—despite people complaining about it—they’re not the sort of cuts that would make people unable to live, or substantially reduce their standards of living. But again, I cut payments and affected a lot of people’s income as pensioners, and that is a source of discontent. And we paid a heavy political price for that.
 
Q: Do you think when you look at the midterms in November, was the pension issue the main reason why the DPP lost so heavily?

A: That is one of the issues. The other one is the same-sex marriage issue, because many of the religious bodies do have strong objections to that. But the younger generation here, the young people, thought that this is a matter of human rights and we should be moving towards a direction that makes us a more advanced country in terms of human rights in this respect. It’s a rather divisive issue here. You have younger generations who want to deal with this as a matter of human rights, and you have other, more traditional groups and religious groups that think that this is too advanced for Taiwan and we are not there yet. So it is a struggle between the two sides.

But this is not something that we can avoid, because it is coming, it is here already. It’s an issue that we have to deal with. And so during the last two to three years, the Grand Justices have made a constitutional interpretation requiring a change of law to move the whole system closer to what should be considered as equal rights protection. And of course, you have this referendum, trying to move the direction a bit backwards.

So, the bad thing is that we have this controversy and conflict over the last two-and-a-half years, but at the end, we still narrowed it down. On the one hand, the Grand Justices said, yes, it is a matter of human rights protection. And the referendum tells us that we should be mindful of the people who are very religious or traditionally inclined. The difference is like this.

But with this referendum and constitutional interpretation, we sort of narrowed it down. The issues are narrowed down to two things. One, I think people generally agree that we should provide protections to homosexuals. The second issue is in what form the legal protection should be provided. It is a good process in my view, despite the fact that we paid a political price for it. But we did get a highly controversial and divisive issue narrowed down to two issues only. People generally agree that their rights have to be protected. But the thing for the government is in what way and in what form the legal protection should be provided.
 
Q: Since you were elected, the global political landscape has changed somewhat by President Trump in the US. So what I wanted to know from you is, in this post-Trump era, looking ahead to 2020, do you feel like you need to be a bit more Trump? Or are you going to stick to your guns and stay true to who you are?

A: It depends on how you define political guts. By now, I think people think that despite the fact that I use softer language when I express issues, despite the fact that I’m a woman, I am a very determined person, and I am prepared to do things despite the political cost that is involved. And this is how a leader should be. It is not a matter of speaking tough, it is a matter of whether you are determined enough to complete reforms. In the process, you get attacked, you get pressured, and you have a lot of conflicts to deal with, but eventually it is the result that you want to present to the people.
 
Q: As we kind of gear up for the electioneering period in 2020, what would you say your top priorities are when it comes to foreign relations, cross-strait relations, and defense?

A: Well, I think that we have told the international community and countries in the region that we would be keeping the status quo, but given the changes in the environment, when we are talking about the status quo, we are talking about keeping the right kind of balance, so we’ll continue to keep the right kind of balance. We’re not going to be provocative in our relationship with China, but we have to equip ourselves with sufficient defense capabilities, given China’s large investments in its military development. We need to increase our military capabilities, to make Taiwan a more defendable place. That is our priority.
 
Q: I know you’re shifting the military towards full-volunteer service, that’s the goal, how is that going? When do you think that will be completed?

A: This policy has been initiated and carried out by the two former Presidents. My job at the moment is to make this all-volunteer system work, and also make our military defense capabilities improve as a result of this all-volunteer system. But the modern military situation is that we need soldiers with experience and know-how to deal with high-tech weaponry. A lot of professional training is required. If we go back to this old system of mandatory military service under which young men join the military for a year, it’s not enough to us.

Today, with this all-volunteer system, a volunteer would join the military for at least four years, so that gives us enough time to train them. And after they retire from their four-year stint―they can extend their service to a longer time as long as they’re qualified―so receiving these four years of training makes them very experienced soldiers. And we continue to keep them in, sort of reserve services. So you have a core group of all-volunteer professional soldiers, and you also have reserve groups, and they are primarily retirees from the volunteer services.
 
Q: Looking ahead to the election next year, some of your biggest critics would say that you only win if you play the China card. If Beijing does something silly, and you seize on it, rile people up, then the DPP will win. How do you respond to that?

A: The thing that people care about, of course, is national security, and whether we will be able to maintain a stable relationship with China. I think people want to have that. It’s not a matter of speaking loud in a tough manner. Of course, sometimes I have to be loud and tough, but it is not the only thing a leader should do. What we need to do is make sure that our national security is okay, and at the same time we will be able to maintain a stable relationship with China.

But the other thing that the general public here care a lot about is the economy. Despite the fact that people may not have noticed, the economy began picking up actually after 2016. In 2016, when I first became the President, many people thought that I wouldn’t be able to achieve 1 percent GDP growth, because the previous year it was 1 percent or even lower. We achieved that. By 2016, the growth rate was 1.51, and in 2017, we did even better, 3.08 percent growth rate. That is a major achievement. And last year, we did not bad, in 2018 it was 2.63 percent, which is not bad, because that shows the economy is picking up and presents a stable trend upwards. In terms of income, in nominal or substantive terms, it is all in an increasing trend. Exports are doing well, despite the fact that this year we may have some challenges due to the US-China trade conflict, but overall the economy is going up steadily. It’s just that people were worried whether we would be able to make sure there would be enough electricity supply, but our own calculation is that there won’t be a problem there.
 
Q: President Xi made a big speech in January, a sort of saber-rattling speech, and some people say that in that speech he set a timeline in Beijing for reunification, and that kind of changes the status quo. Do you agree with that? Is that how you see it?

A: I would say that his January 2 speech does, to a certain extent, change the balance in the relationship, and requires a certain amount of rebalancing.
 
Q: What does that rebalancing involve?

A: That means that we have to be more cautious in terms of managing the relationship. And because the remarks of January 2 have presented a sense of urgency on the Chinese side, what we need to do is to expedite whatever preparations we need to prepare ourselves.
 
Q: If we look at some other countries that have a dispute, the two Koreas. This time last year, they were perhaps on the brink of nuclear war, and now they’re looking like the best of friends. At the moment, your relations with China aren’t looking too rosy, but let’s look ahead at next year, could you see a similar change in relations, that quickly?

A: The change of relationship requires a lot of things. First of all, the Chinese have to be prepared to treat Taiwan as equals, and no precondition or political framework is there as prerequisite for any peace process. On our side, I think without preconditions, or this framework of the “one China principle” or “one country, two systems,” and if the process is conducted in a way that we are treated as equals and they have enough respect for the sovereignty we have, then there is no reason why we can’t sit down with them and talk.
 
Q: Referendums are in vogue right now, in your own country and in the UK, where I’m from. But obviously the results don’t always go your way. Will you categorically rule out a referendum on Taiwanese independence during your second term, if you were to be reelected?

A: Taiwan is a democracy. It’s not the leader who makes these decisions. A leader’s responsibility is to make sure our democracy works, and also that democracy can facilitate the people here to make a collective decision as to what we want for the next phase of our relationship with others. But for the President, the most important thing is to make sure that we’ve got our freedom protected, our democracy protected, and a stable relationship with China.
 
Q: Some people have been saying one of the reasons why the DPP lost so heavily in November was because during your three years, you’ve been focusing too much on Taiwanese independence, Taiwanese identity, and perhaps renaming the country Taiwan. What do you say to that?

A: No. In fact, in the last election, it was a local election, the cross-strait relationship was not a major issue in that. In the first two-and-a-half years of my term, we have been very carefully managing the cross-strait relationship, we have not been provocative at all. And we managed to maintain a stable relationship with China. We have been under tremendous pressure from China as well, because they are more assertive in terms of their military exercises, and also they make attempts to take away our diplomatic allies. So we have to deal with all these pressures. But for us, we are not provocative, we deal with the relationship, we manage the relationship very carefully. It’s the Chinese trying to change the status quo, and we are reacting to it. But last year’s election was more about domestic issues, and some of them are rather divisive.
 
Q: There are big anniversaries this year, one being the Taiwan Relations Act in April. When that comes about, what will your message be to the US?

A: I hope the relationship, the good relationship, will continue, and cooperation between our two sides will be close enough to meet the challenges of the future in the region.
 
Q: Last year looked like a pretty good year for US-Taiwan relations, they opened that new quasi Embassy, and there was the Taiwan Travel Act, and there were a few high-level delegations. When you look at 2019, what is on top of your new year’s wish list for things or gifts from the US?

A: It’s not like Christmas. The relationship is not a matter of Christmas time, receiving gifts. It is a solid relationship, and we want to keep a close working and cooperative relationship with the US. I do hope that our relationship can improve every day in substantive terms.
 
Monocle magazine, launched in 2007 and based in London, provides content focused on economic and political current events, as well as global affairs. The magazine has also published a series of Monocle Guides on a wide range of topics, and operates a round-the-clock online radio station, called Monocle24, that gives commentary on developments in global affairs, politics, economics, and culture.

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A more secure and sustainable economic and trade partnership will allow us to address the challenges posed by geopolitics, climate change, and the restructuring of global supply chains. In closing, I wish Chairman Ricketts and Ranking Member Coons a smooth and successful visit. Chairman Ricketts then delivered remarks, first thanking President Lai for his hospitality. He said that he and his delegation have had a wonderful time meeting with government officials, industry representatives, and the team at the American Institute in Taiwan. Highlighting that Taiwan has long been a friend and partner of the US, he said their bipartisan delegation to Taiwan emphasizes long-time bipartisan support in the US Congress for Taiwan, and though administrations change, that bipartisan support remains. Chairman Ricketts stated that the US is committed to peace and stability in the Indo-Pacific and that they want to see peace across the Taiwan Strait. He also stated that the US opposes any unilateral change in the status of Taiwan and that they expect any differences between Taiwan and China to be resolved peacefully without coercion or the threat of force. To that end, he said, the US will continue to assist Taiwan in its self-defense and will also step up by bolstering its own defense capabilities, noting that there is broad consensus on this in the US Congress. Chairman Ricketts stated that they want to see Taiwan participate in international organizations and memberships where appropriate, and encourage Taiwan to reach out to current and past diplomatic allies to strengthen those bilateral relationships. He pointed out that the long economic relationship between the US and Taiwan is important for our as well as the entire world’s security and prosperity. He also noted that there are many opportunities for us to continue to grow the economic relationship that will help create more prosperity for our respective peoples and ensure that we are more secure in the world. Chairman Ricketts emphasized that they made this trip early on in the new US administration to work with Taiwan to develop three points: security, diplomatic relations, and the economy. He stated that in the face of rising aggression from communist China, the US will provide commensurate help to Taiwan in self-defense and that they will continue to provide the services and tools needed. In closing, Chairman Ricketts once again thanked President Lai for the hospitality and said he looks forward to dialogue on how we can continue these relationships. Ranking Member Coons then delivered remarks. Mentioning that their delegation also visited the Philippines on this trip, he said that there and in Taiwan, they have been focused on peace, stability, and security, and the ways for deepening and strengthening economic and security relations. He noted that 46 years ago, the US Senate passed the Taiwan Relations Act, adding that it was strongly bipartisan when enacted and that support for it is still strongly bipartisan today. Its core commitment, he said, is that the US will be engaged and will be a partner in ensuring that any dispute or challenge across the strait will be resolved peacefully, and that Taiwan will have the resources it needs for its self-defense. Ranking Member Coons said that between people, friendships are deepest and most enduring when they are based not just on interests but on values, and that the same is true between the US and Taiwan. Free press, free enterprise, free societies, democracy – these core shared values, he said, anchor our friendship and partnership, making them deeper. He remarked that they are grateful for the significant investment in the US being made by companies from Taiwan, but what anchors our partnership, in addition to these important investments and investments being made by Taiwan in its own security, are the values that mobilize our free-enterprise spirit and our commitment to free societies. In Europe in recent years, Ranking Member Coons said, an aggressive nation has tried to change boundaries and change history by force. He said that the US and dozens of countries committed to freedom have come to the aid of Ukraine to defend it, help it stabilize, and secure its future. So too in this region of the world, he added, the US and a bipartisan group in the US Senate are committed to stable, secure, peaceful relations and to deterring any unilateral effort to change the status quo by force. In closing, he said he is grateful for a chance to return to Taiwan after the pandemic and that he looks forward to our conversation, our partnership, and the important work we have in front of us. The delegation was accompanied to the Presidential Office by American Institute in Taiwan Taipei Office Director Raymond Greene.
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2025-04-17
President Lai meets New Zealand delegation from All-Party Parliamentary Group on Taiwan  
On the morning of April 17, President Lai Ching-te met with a delegation from New Zealand’s All-Party Parliamentary Group on Taiwan. In remarks, President Lai thanked the government of New Zealand for reiterating the importance of peace and stability across the Taiwan Strait on multiple occasions since last year. He also stated that this year, the Taiwan-New Zealand economic cooperation agreement (ANZTEC) is being implemented in its complete form. The president expressed hope that deeper collaboration in such fields as smart agriculture, food manufacturing, biomedicine, the digital economy, and clean energy, as well as exchanges among our indigenous peoples, will allow our economies and industries to continue evolving as they adapt to the challenges arising from global changes. A translation of President Lai’s remarks follows: I extend a warm welcome to all of our guests. New Zealand’s All-Party Parliamentary Group on Taiwan was established in 2023, marking a significant milestone in the deepening of Taiwan-New Zealand relations. I would like to thank Members of Parliament Stuart Smith and Tangi Utikere for leading this delegation, and thank all our guests for demonstrating support for Taiwan through action. We currently face a rapidly changing international landscape. Authoritarian regimes continue to converge and expand. Democracies must actively cooperate and jointly safeguard peace, stability, and the prosperous development of the Indo-Pacific region. Since last year, the government of New Zealand has on multiple occasions reiterated the importance of peace and stability across the Taiwan Strait. On behalf of the people of Taiwan, I would like to express our sincere gratitude for these statements and demonstrations of support. This year, ANZTEC is being implemented in its complete form. We look forward to exploring even more diverse markets with New Zealand. Deeper collaboration in such fields as smart agriculture, food manufacturing, biomedicine, the digital economy, and clean energy, as well as exchanges among indigenous peoples, will allow our economies and industries to continue evolving as they adapt to the challenges arising from global changes. Taiwan and New Zealand share the universal values of democracy, freedom, and respect for human rights, and parliamentary diplomacy is a tradition practiced by democracies around the world. Looking ahead, our parliamentary exchanges and mutual visits are bound to become more frequent. This will enable us to explore even more opportunities for cooperation and further deepen and solidify the democratic partnership between Taiwan and New Zealand. Thank you once again for making the long journey to visit us. I wish you a fruitful and successful trip. I also hope that everyone can take time to see more of Taiwan, try our local cuisine, and learn more about our culture. I hope our guests will fall in love with Taiwan. MP Smith then delivered remarks, saying that it is a great pleasure and an honor to be received by President Lai. The MP, noting that President Lai already covered many of the points he planned to make, went on to say that New Zealand and Taiwan share many values. He indicated that both are trading nations that rely on easy access for imports and exports, and that is why freedom of navigation is so important. That is why New Zealand had a naval vessel sail through the Taiwan Strait, he said, to underline the importance of freedom of navigation and our mutual security. MP Smith said that they look forward to building stronger relationships and enhancing the trade between our two nations. He added that New Zealand has much to offer in the field of geothermal energy to assist Taiwan, and mentioned that New Zealand is third largest in terms of the number of rocket launchers for satellites, which could assist Taiwan with communications in the future. New Zealand has other products as well, he said, but looks for assistance from Taiwan’s technology and technological sector. Lastly, MP Smith stated that he looks forward to a long and prosperous relationship between Taiwan and New Zealand. MP Utikere then delivered remarks, indicating that like Taiwan, New Zealand is a nation that is surrounded by ocean, which means that they rely on strong partnerships with communities of interest all around the globe. He said that the all-party parliamentary friendship group that was established and that they are a part of goes a long way in ensuring that a secure relationship between our two parliaments can continue to prosper. The MP also thanked Taiwan’s Representative to New Zealand Joanne Ou (歐江安) and her team for their work, which has ensured the success of the delegation’s visit. He said that the delegation experienced meetings with ministers in Taiwan’s government, members of the legislature, and those from the non-government organization sector as well. He also said that they enjoyed the opportunity to visit Wulai, and that the strength of the connections between the indigenous peoples of Taiwan and the indigenous peoples of Aotearoa New Zealand is something that certainly landed with members of the delegation. MP Utikere noted that he will take up President Lai’s offer on experiencing more of Taiwan, and will spend a few extra days in Tainan, which he understands has a very special place in the president’s heart, adding that he looks forward to his time and experiences there. The MP concluded his remarks by saying that this will be a relationship that continues to go from strength to strength. After their remarks, the New Zealand delegation sang the Māori song “Tutira Mai Nga Iwi” to extend best wishes to Taiwan. Also in attendance at the meeting were New Zealand Members of Parliament Jamie Arbuckle, Greg Fleming, Hamish Campbell, Cameron Luxton, and Helen White.  
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2025-04-06
President Lai delivers remarks on US tariff policy response
On April 6, President Lai Ching-te delivered recorded remarks regarding the impact of the 32 percent tariff that the United States government recently imposed on imports from Taiwan in the name of reciprocity. In his remarks, President Lai explained that the government will adopt five response strategies, including making every effort to improve reciprocal tariff rates through negotiations, adopting a support plan for affected domestic industries, adopting medium- and long-term economic development plans, forming new “Taiwan plus the US” arrangements, and launching industry listening tours. The president emphasized that as we face this latest challenge, the government and civil society will work hand in hand, and expressed hope that all parties, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. A translation of President Lai’s remarks follows: My fellow citizens, good evening. The US government recently announced higher tariffs on countries around the world in the name of reciprocity, including imposing a 32 percent tariff on imports from Taiwan. This is bound to have a major impact on our nation. Various countries have already responded, and some have even adopted retaliatory measures. Tremendous changes in the global economy are expected. Taiwan is an export-led economy, and in facing future challenges there will inevitably be difficulties, so we must proceed carefully to turn danger into safety. During this time, I want to express gratitude to all sectors of society for providing valuable opinions, which the government regards highly, and will use as a reference to make policy decisions.  However, if we calmly and carefully analyze Taiwan’s trade with the US, we find that last year Taiwan’s exports to the US were valued at US$111.4 billion, accounting for 23.4 percent of total export value, with the other 75-plus percent of products sold worldwide to countries other than the US. Of products sold to the US, competitive ICT products and electronic components accounted for 65.4 percent. This shows that Taiwan’s economy does still have considerable resilience. As long as our response strategies are appropriate, and the public and private sectors join forces, we can reduce impacts. Please do not panic. To address the reciprocal tariffs by the US, Taiwan has no plans to adopt retaliatory tariffs. There will be no change in corporate investment commitments to the US, as long as they are consistent with national interests. But we must ensure the US clearly understands Taiwan’s contributions to US economic development. More importantly, we must actively seek to understand changes in the global economic situation, strengthen Taiwan-US industry cooperation, elevate the status of Taiwan industries in global supply chains, and with safeguarding the continued development of Taiwan’s economy as our goal, adopt the following five strategies to respond. Strategy one: Make every effort to improve reciprocal tariff rates through negotiations using the following five methods:  1. Taiwan has already formed a negotiation team led by Vice Premier Cheng Li-chiun (鄭麗君). The team includes members from the National Security Council, the Office of Trade Negotiations, and relevant Executive Yuan ministries and agencies, as well as academia and industry. Like the US-Mexico-Canada free trade agreement, negotiations on tariffs can start from Taiwan-US bilateral zero-tariff treatment. 2. To expand purchases from the US and thereby reduce the trade deficit, the Executive Yuan has already completed an inventory regarding large-scale procurement plans for agricultural, industrial, petroleum, and natural gas products, and the Ministry of National Defense has also proposed a military procurement list. All procurement plans will be actively pursued. 3. Expand investments in the US. Taiwan’s cumulative investment in the US already exceeds US$100 billion, creating approximately 400,000 jobs. In the future, in addition to increased investment in the US by Taiwan Semiconductor Manufacturing Company, other industries such as electronics, ICT, petrochemicals, and natural gas can all increase their US investments, deepening Taiwan-US industry cooperation. Taiwan’s government has helped form a “Taiwan investment in the US” team, and hopes that the US will reciprocate by forming a “US investment in Taiwan” team to bring about closer Taiwan-US trade cooperation, jointly creating a future economic golden age.  4. We must eliminate non-tariff barriers to trade. Non-tariff barriers are an indicator by which the US assesses whether a trading partner is trading fairly with the US. Therefore, we will proactively resolve longstanding non-tariff barriers so that negotiations can proceed more smoothly. 5. We must resolve two issues that have been matters of longstanding concern to the US. One regards high-tech export controls, and the other regards illegal transshipment of dumped goods, otherwise referred to as “origin washing.” Strategy two: We must adopt a plan for supporting our industries. For industries that will be affected by the tariffs, and especially traditional industries as well as micro-, small-, and medium-sized enterprises, we will provide timely and needed support and assistance. Premier Cho Jung-tai (卓榮泰) and his administrative team recently announced a package of 20 specific measures designed to address nine areas. Moving forward, the support we provide to different industries will depend on how they are affected by the tariffs, will take into account the particular features of each industry, and will help each industry innovate, upgrade, and transform. Strategy three: We must adopt medium- and long-term economic development plans. At this point in time, our government must simultaneously adopt new strategies for economic and industrial development. This is also the fundamental path to solutions for future economic challenges. The government will proactively cooperate with friends and allies, develop a diverse range of markets, and achieve closer integration of entities in the upper, middle, and lower reaches of industrial supply chains. This course of action will make Taiwan’s industrial ecosystem more complete, and will help Taiwanese industries upgrade and transform. We must also make good use of the competitive advantages we possess in such areas as semiconductor manufacturing, integrated chip design, ICT, and smart manufacturing to build Taiwan into an AI island, and promote relevant applications for food, clothing, housing, and transportation, as well as military, security and surveillance, next-generation communications, and the medical and health and wellness industries as we advance toward a smarter, more sustainable, and more prosperous new Taiwan. Strategy four: “Taiwan plus one,” i.e., new “Taiwan plus the US” arrangements: While staying firmly rooted in Taiwan, our enterprises are expanding their global presence and marketing worldwide. This has been our national economic development strategy, and the most important aspect is maintaining a solid base here in Taiwan. We absolutely must maintain a solid footing, and cannot allow the present strife to cause us to waver. Therefore, our government will incentivize investments, carry out deregulation, and continue to improve Taiwan’s investment climate by actively resolving problems involving access to water, electricity, land, human resources, and professional talent. This will enable corporations to stay in Taiwan and continue investing here. In addition, we must also help the overseas manufacturing facilities of offshore Taiwanese businesses to make necessary adjustments to support our “Taiwan plus one” policy, in that our national economic development strategy will be adjusted as follows: to stay firmly rooted in Taiwan while expanding our global presence, strengthening US ties, and marketing worldwide. We intend to make use of the new state of supply chains to strengthen cooperation between Taiwanese and US industries, and gain further access to US markets. Strategy five: Launch industry listening tours: All industrial firms, regardless of sector or size, will be affected to some degree once the US reciprocal tariffs go into effect. The administrative teams led by myself and Premier Cho will hear out industry concerns so that we can quickly resolve problems and make sure policies meet actual needs. My fellow citizens, over the past half-century and more, Taiwan has been through two energy crises, the Asian financial crisis, the global financial crisis, and pandemics. We have been able to not only withstand one test after another, but even turn crises into opportunities. The Taiwanese economy has emerged from these crises stronger and more resilient than ever. As we face this latest challenge, the government and civil society will work hand in hand, and I hope that all parties in the legislature, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. Let us join together and give it our all. Thank you.
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