Office of the President Republic of China(Taiwan)

In a recent interview with Time magazine, President Lai Ching-te responded to questions regarding diplomacy, cross-strait relations, the semiconductor industry, and Taiwan’s domestic economic development. Following is the text of the questions and the president’s responses: Q: Thank you so much for sparing us the time today and congratulations on your election victory. How are you settling into the new job? I know you’ve just moved one level down from where you were previously, but I hope that your access to bubble tea has not been adversely impacted by the new job. President Lai: My interest in bubble tea has not changed. The transition into my new job has also been steady, having just moved from the fourth to the third floor. I had previously served as a legislator, premier, and was vice president for four years, so I have a clear understanding about national policies and the direction of former President Tsai Ing-wen’s past governance. So far, it has been very smooth. Thank you. Q: Obviously you’ve had four months now since your election victory to prepare for this role. How have you spent that time and what advice has [former] President Tsai given you about taking the most important job in Taiwan? President Lai: Over the past four months, the most important task was the transition process with former President Tsai. This included foreign affairs, national defense, cross-strait affairs, and key domestic issues. Some of this took place in meetings at the Presidential Office and some at military facilities and different government agencies. I also worked to assemble a cabinet, inviting Cho Jung-tai (卓榮泰) to be premier. Cheng Li-chiun (鄭麗君) was invited to serve as vice premier, and former National Development Council Minister Kung Ming-hsin (龔明鑫) as secretary-general of the Executive Yuan. Premier Cho has invited people based on talent across political affiliations to form the cabinet. So far, the public response has been positive. As for advice and encouragement from former President Tsai, she emphasized to me that the president’s job is to safeguard the country and uphold the constitutional system of freedom and democracy. Second, we must listen to public opinion and take care of the people. Third, faced with difficult challenges, we should collectively discuss a course of action forward. This way there will be less headwind. Q: Speaking of headwinds, it was just 48 hours after your election victory that Beijing announced that one of Taiwan’s diplomatic allies, Nauru, was now going to switch recognition to Beijing. This seems to be quite a clear signal to you before you’d even stepped into office or made any policy decisions or anything. How concerned are you by Taiwan’s dwindling recognition on the world stage? President Lai: We cooperate with our diplomatic allies in a sincere way, holding to the principles of mutual benefit and reciprocity. We cherish our friendships with our diplomatic allies and thank them for voicing support for Taiwan in the international community, as well as creating greater international space for us. We also greatly value the cooperation projects we have with our diplomatic allies because these help the people of both countries. Taiwan has always held firm to these principles, regardless of which political party is in power. In the case that our diplomatic allies decide to switch allegiances to the People’s Republic of China (PRC), while we wish them well, such harmful actions by the PRC will not affect Taiwan’s status as a beacon of freedom and a bastion of democracy in the world. So, [on this issue of recognition], we are not deeply worried. Q: You chose and invited Bi-khim Hsiao to be your vice president and she left Washington, DC, where she was serving as your de facto ambassador to the US. Does that signify that US-Taiwan relations are going to take on newfound importance for your administration? President Lai: During Vice President Hsiao’s term as ambassador to the United States, she performed exceedingly well. Taiwanese society has recognized her as amongst the very best within our ambassadors to the US. The international community, including the US, has also recognized her outstanding performance. Now as vice president, she can support the new administration in furthering trusted channels with the US, which will help advance our bilateral cooperation. With Bi-khim’s support, we will engage in more substantive cooperation on national security and defense, the economy, and other substantive exchanges. I trust that we will make much progress, as Bi-khim has been instrumental in bridging Taiwan together with the US. Q: In your inauguration speech, you called for resumption of cross-strait dialogue, trade, and educational exchanges but caveated that on dignity and equivalence. What exactly do you mean by dignity and equivalence with the PRC? President Lai: First, the PRC should recognize that the Republic of China (ROC) exists. They should be sincere in building exchanges and cooperation with the popularly elected and legitimate government of Taiwan. Second, each issue should be mutually beneficial and reciprocal. For example, if Taiwan allows tourists to go to China, they should allow tourists to visit Taiwan. And if we let our students go to China, their students should be allowed to come here. Third, as we conduct exchanges and cooperate with each other, we should share a common conviction to enhance the well-being of people on the two sides of the Taiwan Strait, working toward an objective of peace and mutual prosperity. Q: Also, in your speech, you said that the ROC and the PRC are not subservient to each other. That obviously provoked a reaction from Beijing. We saw the military drills but also some of your political opponents here have said that this undermines the strategic ambiguity which has been the bedrock of peace and stability. How do you counter that? Do you think that you were unnecessarily provocative in hindsight? President Lai: What I said was the truth. Moreover, I was not the first person to express this truth. My intention was not to provoke. During her 2021 National Day Address, former President Tsai said as part of her Four Commitments that the ROC and PRC should not be subordinate to each other. Former President Ma Ying-jeou had also once said the ROC is a sovereign and independent state and that neither side of the strait is subordinate to the other. Third, I stated this in accordance with Articles 2 and 3 of the ROC Constitution, given that in Taiwan we have had our own citizens, land, sovereignty, and government for decades. According to international law, we are already a sovereign and independent country. My goal is to bring the people of Taiwan together. Q: In April, US Secretary of State Antony Blinken traveled to Beijing and met with Xi Jinping. From diplomatic sources, he became quite animated when discussing the status of Taiwan and US support for Taiwan. Do you worry that President Xi is becoming emboldened and impatient about resolving the so-called Taiwan issue? President Lai: Peace and stability across the Taiwan Strait are indispensable elements of global peace and prosperity. In my inaugural address, I told the international community that I would uphold former President Tsai’s Four Commitments. We will neither yield nor provoke. We will maintain the status quo and fulfill our responsibilities. I also urge President Xi to understand that conflict in the Taiwan Strait and disruptions to peace and stability in the Indo-Pacific region will not be accepted by the international community. I invite President Xi to jointly shoulder with us the responsibility of maintaining peace and stability, building regional prosperity, and advancing world peace. Q: Since we last spoke, China’s economic problems continue to mount. Do you feel that this makes Taiwan more vulnerable, or is this an opportunity for further engagement for mutual benefit? President Lai: I have always believed that a stable China leads to a safer Taiwan. A prosperous Taiwan can also bring about progress in China. Therefore, I do not wish to see growing difficulties in China’s economy or its society become more unstable. Indeed, economic relations between Taiwan and China are the result of divisions of labor within global supply chains. In the past, China was the world’s factory as well as the world’s market. Many countries, including Taiwan, invested in manufacturing in China and sold products manufactured at home via China to the entire world. But today things have changed because China’s business environment has worsened. China has placed ever stricter controls on the free market. They have adopted a policy of placing state-owned businesses first, at the expense of the private sector. China’s intellectual property rights protection has also long fallen short of international expectations. In addition, China’s military expansionism in the East and South China Seas has impacted regional peace and stability. This is why capital investment from Taiwan and other countries is no longer heading to China at the pace it was in the past. Taiwanese companies have pulled out of China’s manufacturing sector en masse, favoring countries in the Indo-Pacific – including Japan – the US, and Europe. In 2010, investments in China accounted for 83.8 percent of Taiwan’s total foreign investment, meaning that for every NT$100, NT$83.8 was invested in China. During the same period of time, over half of Taiwan’s foreign trade was dependent on China. Parts and equipment produced in Taiwan were sent to China for assembly or used in the production of other goods, and then the finished products were sold internationally. Last year, investment in China accounted for only 11.4 percent of Taiwan’s total foreign investment, dropping from 83.8 percent. Taiwan’s foreign trade with China also fell from its previous high of over 50 percent, totaling 35.5 percent in 2023. Despite this, Taiwan’s economic growth rate has averaged 3.15 percent over the past eight years – ranking first among the Four Asian Tigers. During former President Tsai’s eight-year term, the stock market grew by 155.5 percent and its value increased 1.8-fold. When former President Tsai first assumed office, the stock market was a little over 8,000 points; it has now surpassed 20,000 points. In other words, even as China’s economy has continued to decline, Taiwan’s economy has continued to grow and has not been affected by China. Taiwan’s new government is willing to assist China and advance peace and prosperity across the Taiwan Strait. Q: Obviously Taiwan is central to global supply chains when it comes to semiconductors, producing 90 percent of the most advanced chips, but US export restrictions are preventing those chips from going to China. You mentioned that Taiwanese investment in China is plummeting. At the same time, Taiwan companies like TSMC are benefiting from billions of dollars from the US Chips Act. Do you fear that key players in Taiwan’s business industrial base moving closer to the US and being kept apart from China is increasing the risk of conflict? President Lai: In this era of smart technologies, semiconductors have become crucial industrial products. In the future, if all aspects of life – including food, clothing, housing, and transportation – are to be technologically advanced and intelligent, semiconductors will be indispensable. The industry runs on a global division of labor. From research and development, design, manufacturing, raw materials, and equipment, it is a worldwide industrial chain. Taiwan is involved in integrated circuit design, wafer manufacturing, and end-of-line packaging and testing, but raw materials are distributed across other countries. For example, components, equipment, and technology are sourced from the US, Japan, and the Netherlands. As we can see, this is an industry with a global division of labor. Although Taiwan has an advantage in the semiconductor industry, Taiwan also has a responsibility to promote global prosperity and development. Consequently, if semiconductor companies, including Taiwan Semiconductor Manufacturing Company (TSMC), decide to expand in the US, Japan, Europe, or other countries consistent with their own business interests, the government will respect their decisions. Geopolitical changes will continue to impact the distribution of semiconductor companies. Given that the restructuring of global supply chains is not specific to any single country, I do not believe that this will increase the risk of conflict. Q: Your only trip to China was in 2014 when you were serving as mayor of Tainan. I understand that you had some quite open and frank discussions with students in Shanghai about Taiwanese aspirations for independence. What did you learn from that interaction? President Lai: In 2014, I visited Shanghai because the Tainan City government organized a traveling art exhibition to commemorate the 120th anniversary of Chen Cheng-po’s (陳澄波) birth. During my interactions with the Shanghai municipal government and Fudan University, I made it clear that the two sides of the Taiwan Strait should seek common ground and set aside differences. Through exchanges and cooperation, we should promote mutual understanding, empathy, reconciliation, and peaceful development. Q: You won the election with over 40 percent of the vote, but the DPP lost control of the legislature, and so you need to work across the aisle with opposition parties to get your domestic agenda across. It’s not been a very harmonious time in the Legislative Yuan at the moment. We’ve seen brawls and a lot of sniping over the new bill to increase scrutiny of the executive branch. How confident are you that you can overcome these differences to have a constructive relationship with the opposition parties? President Lai: I remain fully confident about the future development of Taiwan. This is because of our democracy. After decades of collective effort, as well as the numerous sacrifices and contributions of many people, the vitality and values of democracy are deeply imbued within the Taiwanese people. These democratic values are an important foundation as I promote future national policy priorities. In my inaugural address, I mentioned that a divided legislature is the will of the people. This provides an opportunity for each party to share their ideas and jointly bear the responsibility of serving the nation. At the same time, if any one party does not live up to public expectations, I trust that people will respond accordingly so that the country can still move forward. In my address, I also pointed out that Taiwan will continue to move in the direction of democracy, peace, and prosperity, linking us with the international community. I will pursue policies that further entrench Taiwan’s democracy, maintain regional peace, and allow Taiwan to engage with the international community to enhance global prosperity and development. This roadmap will benefit both our country and its people. I do not think opposition parties will strongly oppose bills related to this roadmap. Q: Some of your DPP colleagues have pointed out that 17 KMT lawmakers went to China recently and met with Wang Huning, and they have openly accused the KMT of being a fifth column for the CCP in trying to disrupt your administration. Is that an opinion that you share? President Lai: In a democratic society, the interests of the people should take precedent; this is the principle of democracy at work. As a result, political parties should put national interests above their own – that is their sacred duty . As Taiwan faces different forms of pressure from China, everybody, regardless of party affiliation, should put the people first and prioritize national interests. They should not let themselves be influenced by any authoritarian country. Q: The CCP has refused to engage with your administration or the DPP. Is it beneficial for the KMT to have trips to China and engagements with China, whether it’s Ma Ying-jeou on an unofficial basis or KMT lawmakers? President Lai: The people of Taiwan and all political parties – regardless of affiliation – should recognize and respond to the fact that China’s ambition to annex Taiwan is part of their national policy. Only by coming together domestically and strengthening our global linkages can we maintain our sovereignty, freedom, and democratic way of life. By doing so, we will have the capacity and opportunity to determine our own future. No political party should sacrifice national sovereignty for political gain. Q: Following the devastating Hualien earthquake just a month ago, China offered to send aid to Taiwan but was rebuffed. You hadn’t taken office at that point. But do you feel that was the right decision? Do you think it could have been an opportunity to mend bridges across the strait? President Lai: Taiwan very much cherishes the expressions of concern and support we received from the global community. International assistance creates a positive feedback loop that helps us come together in times of need. This helps support global development and stability. With this being said, at the time, China had offered 100 prefabricated homes, which was not what the people affected by the Hualien earthquake required. When central Taiwan was struck by a major earthquake on September 21, 1999, the government had provided such homes to alleviate housing shortages at the time. However, over the past 20 or 30 years, Taiwan has accumulated greater experience and capacity for search and rescue and post-disaster reconstruction. We have moved past the period of requiring prefabricated housing. Today, if a home is made unsafe by an earthquake, a red notice will be attached to the structure. We will consequently provide financial support for both the property and its reconstruction. If people need to live in a hotel or guesthouse, stay with a relative, or rent a place to stay, these costs will also be subsidized until the home has been rebuilt. Therefore, we did not require prefabricated homes. People living in hotels or guesthouses also supported the tourism industry, which was affected by a large drop in visitors following the earthquake. Q: Some in the opposition want to restart negotiations for the cross-strait service trade agreement for close economic integration with China. Why do you oppose such a move?  President Lai: In short, the time for this has long passed. As I said, many Taiwanese businesses have left China. Looking ahead, we can see substantive differences opening up between Taiwan’s economy and China’s present economic structure. If the cross-strait service trade agreement were passed, Chinese business owners could come to Taiwan and set up shop with as little as NT$6 million dollars. And it is not just a matter of the owners – they could also bring employees over. This would greatly affect Taiwan’s local economy. Q: Beijing is aggressively courting the Global South to back its claim over Taiwan with 28 nations, according to recent reporting, firmly supporting China’s push for reunification. How important is it to win the argument over Taiwan’s right for autonomy amongst the international community, especially those of the Global South? President Lai: I hope that all countries will respect the choice of Taiwan’s people. The will of the people should not be subject to decisions made by a majority or show of hands [in international fora]. Neither should our people be threatened by violence or the threat of war. China is presently engaged in lawfare, which is affecting support for Taiwan internationally. While Taiwan will do its best to speak up for our own rights and interests, I hope that the international community will also continue to assist, understand, and support Taiwan. This is because if China’s attempts at lawfare were to succeed, this would affect Taiwan’s global backing, be it in times of peace or war. Q: Domestically in Taiwan, a lot of Taiwan people are struggling with a growing but slow economy, rising prices, and stagnated wages. What is your plan to try to help the average Taiwanese person? President Lai: I have been deeply focused on supporting the salaries and lives of our grassroots workers. I also prioritize reducing the gap between the rich and poor, as well as efforts to give our young people a brighter future. I will faithfully implement the Minimum Wage Act that was passed under former President Tsai. With this act, minimum wage increases will be based on how the GDP or prices increase. More importantly, we must help our industries upgrade and our economy transform. In my inaugural address, I said that economic development will take a threefold approach. First, we will have a clear view for a smart, sustainable future. In other words, we must use technology to address climate change and respond to the global era of smart technologies. We will have an innovative economy and create a new Taiwan that is both smart and sustainable. Second, we will expand the space industry, exploring the future by developing medium- and low-orbit communications satellites and drones. We will also use our strengths as a maritime nation to explore the ocean, helping related industries grow and develop in many directions. Third, we will help our enterprises expand their presence and markets internationally. We will improve Taiwan’s investment environment and take care of our small- and medium-sized enterprises while helping our industries in their global reach. This will grow Taiwan’s economy, leading to development and creating an environment conducive to higher wages. During my election campaign, I put forward a National Project of Hope. With this, we will invest more in our society, take better care of both young and elderly people, as well as all those who need care. We will close the wealth gap, while supporting the people’s welfare and the future of our young people. Q: President Lai, thank you. You’ve been very generous with your time. But just to end off, we spoke before how you grew up in Wanli in a poor family and your father died when you were very young. You worked very hard to become a doctor and your mother wasn’t very keen about you taking a diversion route into politics. Now you’ve reached the very top of the political ladder in Taiwan, do you think that your mother would be proud, that she would have forgiven you for defying her? President Lai: My mother was just an ordinary person and, like many mothers in Taiwan’s society at that time, worked hard, took care of her family, and hoped that her children would grow up safe and sound. What probably mattered most to my mother was that I was safe and healthy. It did not matter to her whether I became a politician or not, just as I had no expectation that one day I would sit here in the Presidential Office. In fact, when I was little, I hoped to become a doctor so as to take care of the sick, relieve suffering, and save lives. But during the process of Taiwan’s democratization, many young people devoted themselves to politics, including myself. I had no idea that I would continue down this path, much less be here today. My mother told me that if people support me, then I should run for election; if not, then I should continue as a doctor. In other words, my mother felt that I probably would not pursue politics for very long. We were from the countryside and did not come from a political family. However, I attribute my success to Taiwan’s democratization. If it were not for the sacrifices, contributions, and achievements of countless individuals up until now, I could not have been afforded the opportunity to sit here. My responsibility is to further deepen Taiwan’s democracy and enable hardworking people from all walks of life to realize their ideals and contribute to our country.

In a recent interview with the British Broadcasting Corporation (BBC), President Tsai Ing-wen responded to questions regarding women’s participation in politics, marriage equality, Taiwan’s COVID-19 response, the cross-strait situation, Taiwan-US relations, the impact of Russia’s invasion of Ukraine on Taiwan, global supply chains, and her achievements during her time in office. Following is the text of the questions and the president’s responses: Q: You are the first female president elected here in Taiwan. That obviously makes you something of a transformational figure in Taiwan politics. So what do you think, in your own mind, are your most important achievements during that time? President Tsai: Let me say this first: people thought that was something unusual happening in Taiwan, but I want to say that the Taiwan society and democracy nowadays are mature enough to produce and accept a woman president, and that is a tremendous achievement of the Taiwan society. In these eight years you have [the] US-China trade conflict, you have wars, in Ukraine and recently in Israel as well, and also, you have the pandemic, as well as the increasing tension in the region because China has become more aggressive and assertive. So this is a time of changes and challenges. And being a president at this moment in time is pretty challenging, I must say. Q: You’re saying Taiwan is able to accept a female president. I mean, this is still a very patriarchal society. You have appointed many women to high positions in government. You have appointed the first transgender cabinet minister in Taiwan’s history. Do you think there’s an enduring legacy there that will last? Or is there a danger Taiwan could revert to what I might call the boys’ club once you’re gone? President Tsai: I do a lot of adjusting about that boys’ club. But this is an immigration society. People came to Taiwan at different times. And we also have the indigenous people here. So in an immigration society, there are a lot of challenges, and people are less bound by the tradition and the established practices because they are in a entirely different and sometimes very unfamiliar environment and they have to survive in all of this in the environment. So they are less bound by the traditions. And the main goal is to survive. And they have to help each other and be more accommodating. This is why we have been able to overcome all sorts of difficulties and move from the authoritarian age to [the] democracy that we have today, and we move ourselves from the traditional practices of marriage and also the faiths associated with it, to now that we are accepting same-sex marriage. So it’s the people here, and the people who came here at different times, and they learned to survive in an entirely different environment. Q: So you’re saying basically that means Taiwan is a more open-minded society than, for example, China is? President Tsai: We have the potential of being an open society, and the fact is that over the years we realized its potential and [have] become, in my view, an advanced society. Q: You talked a little bit about same-sex equality in marriage here. But you were well ahead of any other country in Asia in pushing through that legislation. Why was that such an important priority for you? President Tsai: Because that’s the hope [of] the younger generation, because that is a way to express ourselves as a more advanced country in terms of the progressive values. And also we have very active advocates for the same-sex marriage here. And it’s a test to the society here to see to what extent they can move forwards with their values. And it was a very difficult journey for us to travel through, to get to the stage that the legislature finally approved the same-sex marriage. So it has taken a lot of efforts and a lot of people’s contribution as well. And I am actually rather proud that we managed to overcome our differences and get together and produce a package that we can all live with, and eventually we are all proud of. Q: You mentioned also another thing that, as a success for Taiwan was his handling of the COVID pandemic. And the statistics are truly remarkable. That’s a tremendous achievement in an open, democratic society where you can’t use draconian measures to lock people down. There’s one thing that’s very noticeable. Although you didn’t have any lockdowns domestically, you did close your borders very quickly. Was that the key? President Tsai: That was one of the keys, because of the SARS experience. And the source of the disease back then was from China. And this time our suspicion is that it is also from China. So we make a very quick decision and then stopped the Chinese tourist groups coming into Taiwan. And that was a time very close to the Lunar New Year. But we made the decision. And it was quick and early enough. Q: I’m going to move on to sort of the big challenge that faces, has faced, you over the last eight years. And that’s the threat from China. A lot of people don’t really know what Taiwan’s status is around the world. Some people, you know, China claims that Taiwan is part of China. Most people here in Taiwan, when you look at surveys and you ask them, they say, we want to maintain the status quo. No unification, no independence, status quo. What is the status quo mean for you? President Tsai: I think all the people agree on this thing, that we are on our own. We make our own decisions. We have a political system to govern the place, and we have [a] constitution, we have laws regulating the society as a whole. And we have our military. So we have all the elements of a state. And it’s just that we don’t have enough number of diplomatic recognitions from other countries. But when [the] time comes, people may want to say yes, let’s move forward and let’s establish some sort of diplomatic relations with Taiwan. And China, of course, would say that we’re part of them, and they’re trying to use the UN resolution of the early 1970s, but a lot of other countries have different views because that doesn’t cover the future of Taiwan. So, it’s for the people to interpret what Taiwan represents at this moment in time. But the most important thing is that we are on our own, and we are a democracy, and we enjoy freedom and democracy and progressive values, and we are a group of people that are very proud of ourselves. Q: Do you fear Xi Jinping? Do you think the world, the democratic world, should fear Xi Jinping and his ambitions? President Tsai: Not to the extent of fear, but we have to be very careful in the development of China, because China is a source of uncertainties for the rest of the world. Of course, it’s a military power, but it has reached a stage where they are actually short of new momentum for its economic growth, and that has serious consequences for the Chinese society. So China has its own problem to deal with at the moment. And the world today, after the Ukrainian war, seems to be more united, especially the democracies are more united than before, to form some sort of deterrent against a possible expansion of China in this region and the rest of the world. I think Xi Jinping now, despite the fact that he may have a plan of some sort, but I don’t think that is a definitive plan because the world is changing, the situation in China is changing, he has to revisit his plan from time to time to see whether there’s any adjustment needed. But the world is very different now, especially after the Ukrainian war, because the democracies seem to be able to get together to form a meaningful deterrent whenever there is an invasion contemplated. So, I think if we deal with the matter very carefully, there’s still a great possibility for us to maintain peace as we all need. Q: One of the things you’ve done very differently from your predecessor: He engaged in dialogue with China. He was trying to get Taiwan into, basically, an economic partnership with China. You, when you came to power, decided on a very different course, it strikes me, one of firstly, building up Taiwan’s own military strength. Is Taiwan stronger and more secure now than it was eight years ago, and if so, how? President Tsai: Responding to your question, I would say that the military capability of ours is much strengthened with the investments that we have put in in the last eight years and also with the assistance of our friends, primarily from the United States. So the investment that we have put into the military capacity building is unprecedented, despite the fact that people are urging us to increase the budget further. I think if there’s a need, we will always increase and expand our military spending, but this is the time for us to use the money available efficiently to build our capacity at a speed that can match with the expansion of the Chinese military capability. Q: I suppose your critics would say, this is all good, but ultimately Taiwan is small. It has a small population compared to China, and China’s military is vast, its military modernization is extraordinary. And that in the end – this is what your critics would say – Taiwan cannot hope, by itself, to deter China militarily. And so your policy of building up the military is sort of futile, because of the huge discrepancy in power. President Tsai: Of course that makes some sense, but in reality people are talking about whether a place is dispensable in relative terms. The cost of taking over Taiwan is going to be enormous, and Chinese leadership have to make a good calculation as to whether they are prepared to pay the cost. But what we need to do is to increase the cost of an invasion. Strengthening our military capability is one. And working with our friends in the region to form a collective deterrent is another. But [China] has become so aggressive and assertive in recent years. A lot of other countries in the region are alert and they to an extent some of them may have a conflict with China at sea. And so China is not an issue for Taiwan only. It’s an issue for the region, and it’s a concern for a lot of countries in the region as well. So people get together to express their concerns and they say very clearly that there should be no unilateral change of status quo, and [that] peace and stability is the most important thing for the region and for the world as well. That has become a consensus of some sort. Q: Suppose again, just playing devil’s advocate here, your critics would say, well, that’s all very well, but Taiwan has but very few formal diplomatic allies. It doesn’t have any formal military alliances. And that during the last eight years, particularly the last four years, the situation around Taiwan has actually become objectively more threatening. Every day we see Chinese PLA aircraft flying into Taiwan’s air defense identification zone. We see Chinese Navy ships coming across the median line. So the threat environment during this period seems to have gotten worse.  President Tsai: Of course, we cannot exclude any possibility at the moment, including a possible military conflict, an invasion from China. But the thing is with the collective efforts of the parties concerned in the region, China actually feels the pressure. Because it’s not only [the] military [that] is a concern. They have to be aware of the fact that a war may cost their economic development, and the economic consequences [are] such that it may probably delay the development of China for years, even for decades. So if you are a leader of China, what is more important, taking over Taiwan or your continuing growth economically and socially? Q: You talked about America being Taiwan’s friend. Clearly it is. President Biden has been extremely supportive of Taiwan. When asked about whether he would intervene if Taiwan were attacked, he has repeatedly said yes. His critics have said that that is moving America too far away from this idea of strategic ambiguity and that actually, that makes the situation for Taiwan more dangerous. What do you think? President Tsai: I think the US administration has been very careful in delivering the messages they want to deliver to the public. So as far as I’m concerned, the way I read it is that the ambiguity is still there. Q: And I know I was here when probably the most high-profile American visit during your presidency was that of the US House Speaker Nancy Pelosi. It caused a big reaction from China. For the first time, China fired ballistic missiles over the top of Taiwan into the Pacific Ocean. So I wonder, from your point of view, what are the benefits of these sort of very high-profile visits? Are they just a sort of somewhat empty gesture? Or is there something really concrete that they bring for Taiwan because they seem to cause a lot of trouble for you as well. President Tsai: For any president of Taiwan, you’re not in the position to say no when your friends want to come and show support to you. We have been isolated for a long time, and we need friends, and we need people to come and express their concerns for us. So for any president, you just can’t say no to a visit like Speaker Pelosi’s. But the thing is that, of course, there are risks associated with it, so you have to manage the risks. There are a lot of communications and diplomacy, the details of which I cannot tell you, but there [was] a lot of work behind the scenes to make it less of an impact on the cross-strait situation. Q: How important is victory on the battlefield of Ukraine and continuing Western support for Ukraine in terms of how it affects Taiwan? President Tsai: Many people suggest that Taiwan is a much [more] important case than Ukraine because we are indispensable in terms of global supply chain, and our geographic location represents a great deal in terms of strategic values to the region as a whole. And there are arguments that perhaps the US should shift their support and resources from Ukraine to Taiwan. We say, no, you have to support Ukraine until the very end because the determination is the most important thing as far as we are concerned. We don’t want to take advantage of the Western countries deciding to reduce or eventually abandon the Ukraine. No, that’s not our position. Our position is that the democracies should support Ukraine with all force and effect because that is a very important element in terms of building confidence here in Taiwan. Q: You mentioned Taiwan’s position in the global supply chain. Do you think there’s now a much wider recognition of just how important – and we’re talking here, of course, we’re talking about semiconductors, right? We’re talking about Taiwan semiconductors and other big Taiwanese companies. Do you think people around the world understand how vital Taiwan’s position is?  President Tsai: Let me put it this way: 90% of the advanced chips are produce in Taiwan. For the future technology like AI Taiwan holds the key. So that itself is important enough for the rest of the world. And geopolitically, you have Taiwan here, stand[ing] very firm against the possible aggression from China. That is a good demonstration [of] how a country can protect itself from invasion with strong determination. Q: We’re going back to a sort of legacy question, but it’s not so much about big politics, but about the sort of society and environment. I mean, what is it that you think of that makes you feel satisfied about how Taiwan has changed in these last eight years? President Tsai: I think we’re more international now. We have lots of friends outside of Taiwan. We used to be rather isolated and the primary relationship that we have to manage is with China. But nowadays we have to manage a lot of other relationships with the rest of the world. And we interact directly with a lot of other countries and we help each other, and we have trade and investment relationships. This is a time that we feel that we are actually part of the world rather than part of the cross-strait. And so I am actually rather pleased that we are now a Taiwan of the world, that is, probably, if you want to say achievement, one of the achievements I’ve got. The other thing is that I actually made this place a better place to live, in the sense that now, Taiwan’s economy is one of the most competitive in the world. And our technology level is, again, it’s very impressive and to the extent that a lot of people feel that Taiwan is indispensable to the world’s supply chains. It’s not limited to semiconductor. It’s to others as well.  And I have carried out reforms, so that we now have a more financially sounder pension systems, the pension plans for the public sector employees, as well as [for] the other types of pension plans here. I have helped improve the finances so that people do not have to worry that much about the financial sustainability of their pension plans here.  The other thing is the military reform. We made our military a more modern one, a more resilient one. And I was actually able to convince the public here that extension of the mandatory military service is something that we need to do, and I get the support of the people here. And also the young people, despite they have some complaint, but it’s not about their love for their country. They have love for their country. They have the dedication for their country. And they have no hesitation to serve in the military. It’s just that we have to make sure that their time spent in the military is worthwhile. We are obligated to provide them with the best equipment, best training, and they know how to protect themselves as well as protect the country. This involved a lot of work. But what is more important is that I work with the military so that we, in the process, are building what we call an all-of-the-society defense system here.

President Tsai Ing-wen was recently interviewed via videoconference by The New York Times for its DealBook Summit, during which she responded to questions regarding Taiwan-United States relations, cross-strait relations, and the semiconductor industry. The DealBook Summit is a major annual event held by The New York Times that invites the world's most influential leaders and elites in politics, business, and culture to share their views and experiences. This year's summit was held on November 29 (US EST) in New York City's Lincoln Center for the Performing Arts, and included such attendees as US Vice President Kamala Harris, former US House Speaker Kevin McCarthy, Tesla founder Elon Musk, and Nvidia founder and CEO Jensen Huang (黃仁勳). A transcript of the interview follows: Q: I want to start with an issue I think that everybody is thinking about, which is that in the aftermath of the APEC meeting between President [Joe] Biden and President Xi [Jinping], how do you evaluate the risk of invasion from China on Taiwan, at this point? A: Well, I understand where you're coming from for that question. Indeed, Taiwan is facing mounting military intimidation, gray-zone campaigns, cyberattacks and information manipulation. Now, in the face of such threats, the people of Taiwan remain calm, and some commentators even suggest that we may be "too calm." But the fact is, the people of Taiwan remain clear-eyed about the situation, and we continue to make our utmost efforts to strengthen our defense capabilities and societal resilience. And I know that many people want to talk about a potential timeline. And Mr. Xi has given his answer for that in the latest meeting with President Biden. I think it's also obvious that the international community has come to the consensus that peaceful and stable cross-strait relations are in everyone's best interest. Hence, like-minded partners are already making tremendous progress in jointly managing risk across the Taiwan Strait. You can see that in many of the statements made in recent bilateral and multilateral engagements, such as the Camp David Summit and G7 Tokyo meetings. Q: But, you know, President Xi did reiterate his intention to unify with Taiwan, but he said he wanted to do it peacefully. How do you believe that this, if it were to come, would happen? A: Well, I think the Chinese leadership at this juncture is overwhelmed by its internal challenges. And my thought is that perhaps this is not a time for them to consider a major invasion of Taiwan. Q: Because of the economic challenges in China right now? A: No, largely because the internal economic and financial as well as political challenges, but also, the international community has made it loud and clear that war is not an option, and peace and stability serves everybody's interests. Q: Let me ask you this. Taiwan's chip manufacturing is critical for the world, as you know so well. The Biden administration has made it a priority to try to move some of that chip production to the United States. What do you think the impact of that is going to be long term on the relationship and value of the strategic relationship that Taiwan has with the United States? A: Well, I think this move to the US in terms of our chip manufacturing capabilities, as far as we're concerned for the moment, is a good move in the sense that we are helping our allies and our friends in terms of building the supply chain resilience, but at the same time, we'll be able to use resources available in the United States, especially human resources and talents. Q: But do you worry that long term it makes the relationship any less valuable to the United States? Insofar as if in the future China were to want to take over and unify with Taiwan, that the US would be less likely to come to your defense or more? A: Well, the thing is that we have more than semiconductors to be valuable. You know, the clusters that we have here for semiconductor production cannot be rebuilt or replaced by elsewhere. So we're pretty confident that the capacity that we have now, and the importance of our industry, cannot be replaced anywhere else. Q: Let me ask in maybe a different way. The United States political posture towards Taiwan, as you know, has been this idea of strategic ambiguity. And yet, President Biden has been very outspoken that he would defend Taiwan if it came to that. What do you believe the real US policy is in practice? A: Well, I will say that we have noted there have been increasing debates in the US on policy toward Taiwan. Now, different groups have different understandings of what is the best approach toward Taiwan. But, I want to stress here that: First, the people of Taiwan remain deeply grateful, as always, for the long-standing and steadfast support from our American friends. And second, the people of Taiwan are resolute in our commitment to self-defense, and we are clear-headed about the fact that one is responsible for protecting one's own homeland. Now, on US support, putting policy pronouncements aside, the fact is that Taiwan-US collaboration across many domains has reached historic heights in recent years. Now, various undertakings, particularly on the security front, have been initiated to help Taiwan meet the challenges that we face. And in addition to the US, when we look around the world, there is growing international attention on Taiwan. It is widely recognized that, largely thanks to the US's rallying efforts, that the peace and stability of the Taiwan Strait are indispensable to global security and prosperity. Now, these all bear testament to the fact that the support we enjoy from the US, across party lines and different sectors, remains unequivocally clear, and we are fully confident in the US's commitment to maintaining a free and open Indo-Pacific. Q: There's a big question in the United States, specifically, but really in the West, about US businesses and others. And we have a number of CEOs that we're talking to today about whether they should continue to be doing business with China. And I'm curious about what you think about that specific question. Does the relationship at a business level between US businesses and China make your situation better or worse? A: Well, as doing business in China today is riskier than before, and the Western companies may want to look for alternative or additional bases in the region, we welcome them to foster deeper connections with Taiwan. The world has awakened to the importance of supply chain resilience. And resilience and secure supply chains are the backbone of a robust economy, and this is where Taiwan can be of tremendous value. Over the past 40 years, close collaboration between Taiwan and the US has made Taiwan a world leader in advanced chip production. Taiwan will continue to be a highly reliable, effective and secure partner with a proven track record in the restructuring of global supply chains. Lately, we have welcomed various major international companies to establish or expand their presence in Taiwan. Taiwanese businesses with overseas operations are also bringing their investment back to Taiwan. With abundant R&D, innovation and manufacturing strength, we look forward to forging deeper and closer cooperation with our international partners, of course, that includes the US. Q: In Washington right now, there is a debate taking place over the funding for the war in Ukraine, and now of course, the war in Israel. How much are you watching and following that as it relates to, again, the US support for Taiwan and what you think ultimately would happen? Does that concern you? A: We are watching the development in Ukraine very closely of course. Now speaking as president, I will say that protecting our democratic and free way of life for the people of Taiwan will always be my top priority. In the case of Taiwan, I think it's fair to say that international support for Taiwan has remained as solid as it has ever been, if not stronger. I want to thank the US for openly reiterating that its partnership with Taiwan is an enduring one, and that its focus in the Indo-Pacific remains unaffected by events elsewhere. Earlier this month, the G7 Foreign Ministers' Statement reiterated that the security of Taiwan is indispensable to global security. The wars in Ukraine and the Middle East have reminded us that the best war is the one not fought. And to avoid a war from taking place, it is crucial for us to demonstrate the strength and resolve to defend ourselves. At the same time, it is also crucial to remember that it takes concerted efforts by all partners and allies to fend off the aggression of extremism, terrorism and authoritarianism. Q: You met with a former Speaker Kevin McCarthy in the spring. Beijing called that a violation of its sovereignty. Pelosi, as you know, visited Taiwan and there was a military response to it. How do you calculate the importance of these meetings with the potential response from Beijing? A: The meetings are meaningful in the sense that that shows the US friendship toward Taiwan and also the relationship between the US and Taiwan are close. And that's why you have speakers of the US Congress visiting Taiwan or having meetings with the president of Taiwan. Now, of course, China had to react and they have to say what they need to say. But what is more important is that we all work together to manage whatever risks that we may be encountering. But I think what has been happening is that we have been managing the risk jointly, and I think we're okay in that regard. Q: And then finally, you have served eight years, two terms. The people of Taiwan will elect their next president coming up in January, and it appears that your Democratic Progressive Party will secure a third term. How much do you worry that it is going to raise the prospect of more military aggression in China? Is that what the result is going to be over the next several years? A: Well, I think China wants to be involved in our election. There's no secret about it. And they also make their preference known to the public as well in each one of our elections. But I think they're probably not particularly successful in their effort of trying to influence the election here. Primarily, because this is a democracy and people know that they have made their best decisions as to who is going to be the next leader of Taiwan. So you know, China, of course, is interested in interfering in Taiwan's election, and through different means that it is trying to sway our election in their favor. In fact, all major elections in Taiwan since 1996 have seen similar influence operations from China. This includes the use of military threats and economic coercion. Their extensive cognitive warfare campaigns on both traditional and social media platforms are also not unfamiliar to the people of Taiwan. Instead of wishing for the day when Beijing would give up on these tactics, we should rather focus on strengthening the resilience of our democracy. One way of doing so is to foster greater unity and trust among different social groups, so that people are able to resist dis- and/or misinformation and other influences aimed at sowing discord. When people have firm faith in the strength of democracy, we can more effectively push back against election interference.

On the evening of August 4, President Tsai Ing-wen delivered recorded remarks on the live-fire military exercises China is conducting in areas around Taiwan. A translation of the president's remarks follows: My fellow citizens:  Good evening. Today, China initiated live-fire military exercises in areas around Taiwan. This type of continued, deliberately heightened military threat, especially the dangerous launch of missiles into some of the busiest transportation corridors in the world, is irresponsible, both to Taiwan and to the entire international community.  This not only undermines the status quo in the Taiwan Strait and encroaches upon our nation's sovereignty. It also creates high tensions in the Indo-Pacific region, as part of which air and maritime transportation safety, as well as the normal functioning of international trade, are all coming under unprecedented threat. We solemnly call upon China to act with reason and exercise restraint. I want to emphasize that we will neither escalate conflict nor instigate disputes. But we will resolutely defend our nation's sovereignty and security as a bulwark of democracy and freedom. As we speak, our nation's armed forces are already heightening their readiness, and are closely following in real time all military developments in surrounding areas. We are also in close contact with our allies, working together to halt further escalation of the regional security situation. Our national security agencies are monitoring the situation, and are communicating closely with other government agencies in order to ensure that flight and shipping routes remain safe and open, that our airports and seaports continue to function normally, and that our economy and financial markets remain stable. I want to ask my fellow citizens to rest assured that our government is responding with a steady hand. I also want to say to the international community that democratic Taiwan has consistently been a responsible member of the international community. We will work to maintain the peaceful and stable status quo in the Taiwan Strait. We are calm and will not act in haste. We are rational and will not act to provoke. But we will absolutely not back down.  Here, I want to call upon the international community to support democratic Taiwan and come together to put a halt to these unilateral and irrational military actions. As we have in the past, Taiwan will work with those in the region and democratic partners around the world to uphold peace and stability in the Taiwan Strait and the Indo-Pacific region. I also want to say to my fellow citizens that, over the next few days, China most likely will conduct intensive information warfare operations. These will include cyberattacks on Taiwan’s public and private sectors, as well as attempts to cause psychological unrest among our people through disinformation campaigns. To address cyberattacks, I have instructed government agencies to be on heightened alert, and I call on private enterprises to step up their response measures. To address information warfare, especially information from Chinese sources, I ask all our friends from the media to be even more meticulous when fact checking and extra careful with attribution. I also ask my fellow citizens to remain alert.  I have directed all government agencies to provide correct information as soon as possible. Please take the information from our official government sources as accurate, and remember not to share unverified information. Lastly, I want to thank the G7 countries and our many good friends around the world for supporting peace and stability in the Taiwan Strait and the region, and for reiterating their firm commitment to maintaining peace and stability in the Taiwan Strait. I want to emphasize again that peace in the Taiwan Strait is the shared responsibility of everyone in the region. We are doing our utmost to uphold the cross-strait status quo, and we remain open to constructive dialogue. Taiwan does not give in to challenges, and it never will. I hope that everyone in Taiwan comes together, and that all political parties stand united to jointly defend our nation's territory, our sovereignty, and our democracy. Thank you.

President Tsai Ing-wen convened a high-level national security meeting on the morning of October 31, and issued directives on five issues: China's military threat and regional security; continuing to deepen Taiwan-US relations; stabilizing cross-strait relations; the stability and security of domestic politics and economics; and future economic development. President Tsai stated that to address the challenges of completely new circumstances and possibilities, and based on the principle of upholding and defending the values of democracy and freedom, the government will continue to deepen and consolidate Taiwan-US relations and staunchly maintain peace and stability in the Taiwan Strait. This administration has the confidence and capabilities to respond to all different situations, and the public can rest assured.  President Tsai then issued the following directives: I. China's military threat and regional security The president stated that for some time, increasingly frequent Chinese People's Liberation Army (PLA) military activities in the Taiwan Strait, South China Sea, and even the East China Sea have impacted regional security. As a member of the regional community, Taiwan will continue to faithfully fulfill our responsibilities. History has proven that showing weakness and making concessions has never brought peace, and only strong determination and solid defense capabilities can protect our homeland. The Ministry of National Defense (MND) and National Security Council (NSC) should properly monitor the recent PRC regional military activities and carefully assess all possible threats and risks, and must be fully prepared. Taiwan will continue to enhance the modernization of defensive combat capabilities, upgrade asymmetric combat capabilities, promote self-defense capabilities, and reform the military reserve mobilization system to respond to the expansion and provocations of military activities from across the Taiwan Strait.      II. Continuing to deepen Taiwan-US relations President Tsai stated that recent mainstream public opinion in the US favors Taiwan, with unanimous bipartisan support. The Congress has already passed numerous bills and resolutions including the Taiwan Travel Act, TAIPEI Act, and Taiwan Assurance Act. The executive branch has many high-level officials that have visited Taiwan, and has also passed several arms sale packages. Taiwan citizens can clearly see the progress in Taiwan-US relations. Taiwan-US relations are the crux of our diplomatic efforts. Whatever the outcome of the US elections, continuing to deepen relations with both the Republican and Democratic parties and striving for continued unanimous cross-party support for democratic Taiwan are our primary goals to promote the development of Taiwan-US relations. President Tsai instructed the NSC, Ministry of Foreign Affairs (MOFA), and Taipei Economic and Cultural Representative Office in the United States to continue to strengthen diplomatic efforts in the United States, including the effective monitoring of relevant situations and developments, striving for broad bilateral support for Taiwan, steady implementation of key ongoing policies, and identifying the priority tasks for the next several months and proactively executing them. Taiwan and the United States are an alliance of ideals and values, and we believe that Taiwan-US relations will continue to grow stronger and deeper in the future based on our existing interaction and cooperation, and will not be affected by other variables.  III. Stabilizing cross-strait relations Addressing changes in cross-strait relations, President Tsai reiterated that maintaining cross-strait stability is in our common interest. Based on mutual respect, goodwill, and understanding, both sides should discuss how we can live in peace and coexist. Under the principles of parity and dignity, we are willing to work together to facilitate meaningful cross-strait dialogue. We hope the Beijing authorities will also take on that same responsibility, and make that dialogue happen soon. IV. Stability and security of domestic politics and economics To prevent external factors from impacting public safety and social order, the president instructed the relevant government agencies, including the Coast Guard Administration and the National Police Agency, to ensure that they maintain public safety, prevent the spread of disinformation, and strengthen the security and protection of public infrastructure, vigorously protecting Taiwan's democratic system and free way of life. V. Future economic development The president also instructed ministries and agencies related to finance and economics to pay special attention to changes in financial markets and the economy after the US presidential election; strengthen implementation of relief measures for industries impacted by the COVID-19 pandemic; and speed up the implementation of major investment projects and infrastructure programs to enhance our economy's resilience. President Tsai emphasized that to address the realignment of supply chains, based on the "5+2 innovative industries plan," "Six Core Strategic Industries," and the "trillion NT-dollar investment program," the government will speed up the transformation and upgrading of domestic industries, and in coordination with the New Southbound Policy and through bilateral and multilateral economic and trade cooperation with key trade partners, assist supply chains to establish links overseas. The president emphasized once again the need to deepen Taiwan-US economic cooperation. After we made a policy announcement relaxing restrictions on US pork and beef imports on August 28, the US Vice President, Secretary of State, members of Congress from both parties, and representatives of Taiwan and US industry immediately used numerous channels to publicly and actively respond and support closer economic cooperation with Taiwan. During a recent visit to Taiwan by US Under Secretary of State Keith Krach, the two sides engaged in wide-ranging discussions on economic matters. A bipartisan majority in the US Senate also issued a joint letter to the Office of the US Trade Representative urging the administration to begin negotiations on a bilateral trade agreement with Taiwan. These advances are all due to Taiwan's willingness to face and resolve problems, and demonstrate our determination to re-establish our international credibility and promote substantive progress. Based on this progress, we believe that Taiwan-US trade negotiations can continue to gain momentum and will be successful when conditions are ripe. In closing, the president stated that, in addition to Premier Su Tseng-chang's (蘇貞昌) directive at the Cabinet meeting last Thursday,  to strengthen supply chain cooperation in strategic areas, the government will also actively convene a "Taiwan-US economic dialogue," seek to resume negotiations with the US under the Trade and Investment Framework Agreement (TIFA), and enter into talks with the United States on a bilateral trade agreement (BTA), laying a foundation for institutionalized bilateral cooperation. At the same time, we must fully utilize the "framework to strengthen basic infrastructure financing and market building cooperation" to actively push for Taiwan and the United States to establish supply chain cooperation networks in the New Southbound countries and Latin America. During the meeting, President Tsai also expressed deep concern about the recent death of a Malaysian student enrolled at Chang Jung Christian University. In addition to extending deepest condolences to the student's family, the president also directed the relevant government agencies to do their utmost to help the family handle related matters. In a response to the death of a Malaysian student in our country, President Tsai expressed her deepest apologies to the student's family and the people of Malaysia. She feels that Taiwan should be the most friendly and safe country. This unfortunate incident has caused great harm to Taiwan's international image, and represents a gap in our efforts to maintain a safe society, and we must undertake a thorough review to ensure that this kind of incident never happens again. President Tsai also expressed deep concern upon hearing about the strong earthquake that struck on October 30 in the Aegean Sea off the coast of Turkey, causing considerable damage. In addition to directing MOFA to quickly confirm the safety of Taiwanese expatriates, the president also asked the Ministry to convey her concern and condolences, along with those of the people of Taiwan, to the people of Turkey. She expressed hope for an early recovery in the disaster area, and stated that Taiwan stands ready to provide all possible assistance.  

On the morning of January 1, President Lai Ching-te delivered his 2025 New Year’s Address, titled “Bolstering National Strength through Democracy to Enter a New Global Landscape,” in the Reception Hall of the Presidential Office. President Lai stated that today’s Taiwan is receiving international recognition for its performance in many areas, among them democracy, technology, and economy. In this new year, he said, Taiwan must be united, and we must continue on the right course. The president expressed hope that everyone in the central and local governments, regardless of party, can work hard together, allowing Taiwan sure footing as it strides forward toward ever greater achievements.  President Lai emphasized that in 2025, we must keep firm on the path of democracy, continue to bolster our national strength, make Taiwan more economically resilient, enhance the resilience of supply chains for global democracies, and continue working toward a Balanced Taiwan and generational justice, ensuring that the fruits of our economic growth can be enjoyed by all our people. The president said that Taiwan will keep going strong, and we will keep walking tall as we enter the new global landscape. A translation of President Lai’s address follows: Today is the first day of 2025. With a new year comes new beginnings. I wish that Taiwan enjoys peace, prosperity, and success, and that our people lead happy lives. Taiwan truly finished 2024 strong. Though there were many challenges, there were also many triumphs. We withstood earthquakes and typhoons, and stood firm in the face of constant challenges posed by authoritarianism. We also shared glory as Taiwan won the Premier12 baseball championship, and now Taiwanese people around the world are all familiar with the gesture for Team Taiwan. At the Paris Olympics, Wang Chi-lin (王齊麟) and Lee Yang (李洋) clinched another gold in men’s doubles badminton. Lin Yu-ting (林郁婷) took home Taiwan’s first Olympic gold in boxing. At the International Junior Science Olympiad, every student in our delegation of six won a gold medal. And Yang Shuang-zi’s (楊双子) novel Taiwan Travelogue, translated into English by King Lin (金翎), became a United States National Book Award winner and a tour de force of Taiwan literature on the international level. Our heroes of Taiwan are defined by neither age nor discipline. They have taken home top prizes at international competitions and set new records. They tell Taiwan’s story through their outstanding performances, letting the world see the spirit and culture of Taiwan, and filling all our citizens with pride. My fellow citizens, we have stood together through thick and thin; we have shared our ups and downs. We have wept together, and we have laughed together. We are all one family, all members of Team Taiwan. I want to thank each of our citizens for their dedication, fueling Taiwan’s progress and bringing our nation glory. You have given Taiwan even greater strength to stand out on the global stage. In this new year, we must continue bringing Taiwan’s stories to the world, and make Taiwan’s successes a force for global progress. In 2025, the world will be entering a new landscape. Last year, over 70 countries held elections, and the will of the people has changed with the times. As many countries turn new pages politically, and in the midst of rapid international developments, Taiwan must continue marching forward with steady strides. First, we must keep firm on the path of democracy. Taiwan made it through a dark age of authoritarianism and has since become a glorious beacon of democracy in Asia. This was achieved through the sacrifices of our democratic forebears and the joint efforts of all our citizens. Democracy’s value to Taiwan lies not just in our free way of life, or in the force driving the diverse and vigorous growth of our society. Democracy is the brand that has earned us international trust in terms of diplomacy. No matter the threat or challenge Taiwan may face, democracy is Taiwan’s only path forward. We will not turn back. Domestic competition among political parties is a part of democracy. But domestic political disputes must be resolved democratically, within the constitutional system. This is the only way democracy can continue to grow. The Executive Yuan has the right to request a reconsideration of the controversial bills passed in the Legislative Yuan, giving it room for reexamination. Constitutional institutions can also lodge a petition for a constitutional interpretation, and through Constitutional Court adjudication, ensure a separation of powers, safeguard constitutional order, and gradually consolidate the constitutional system. The people also have the right of election, recall, initiative, and referendum, and can bring together even greater democratic power to show the true meaning of sovereignty in the hands of the people. In this new year, the changing international landscape will present democratic nations around the world with many grave challenges. Russia’s invasion of Ukraine and conflict between Israel and Hamas rage on, and we are seeing the continued convergence of authoritarian regimes including China, Russia, North Korea, and Iran, threatening the rules-based international order and severely affecting peace and stability in the Indo-Pacific region and the world at large. Peace and stability in the Taiwan Strait are essential components for global security and prosperity. Taiwan needs to prepare for danger in times of peace. We must continue increasing our national defense budget, bolster our national defense capabilities, and show our determination to protect our country. Everyone has a responsibility to safeguard Taiwan’s democracy and security. We must gather together every bit of strength we have to enhance whole-of-society defense resilience, and build capabilities to respond to major disasters and deter threats or encroachment. We must also strengthen communication with society to combat information and cognitive warfare, so that the populace rejects threats and enticements and jointly guards against malicious infiltration by external forces. Here at home, we must consolidate democracy with democracy. Internationally, we must make friends worldwide through democracy. This is how we will ensure security and peace. The more secure Taiwan, the more secure the world. The more resilient Taiwan, the sounder the defense of global democracy. The global democratic community should work even closer together to support the democratic umbrella as we seek ways to resolve the war in Ukraine and conflict between Israel and Hamas. Together, we must uphold stability in the Taiwan Strait and security in the Indo-Pacific, and achieve our goal of global peace. Second, we must continue to bolster our national strength, make Taiwan more economically resilient, and enhance the resilience of supply chains for global democracies. In the first half of 2024, growth in the Taiwan Stock Index was the highest in the world. Our economic growth rate for the year as a whole is expected to reach 4.2 percent, leading among the Four Asian Tigers. Domestic investment is soaring, having exceeded NT$5 trillion, and inflation is gradually stabilizing. Export orders from January to November totaled US$536.6 billion, up 3.7 percent from the same period in 2023. And compared over the same period, exports saw a 9.9 percent increase, reaching US$431.5 billion. Recent surveys also show that in 2024, the average increase in salaries at companies was higher than that in 2023. Additionally, over 90 percent of companies plan to raise salaries this year, which is an eight-year high. All signs indicate that Taiwan’s economic climate continues to recover, and that our economy is growing steadily. Our overall economic performance is impressive; still, we must continue to pay attention to the impact on Taiwan’s industries from the changing geopolitical landscape, uncertainties in the global economic environment, and dumping by the “red supply chain.”  For a nation, all sectors and professions are equally important; only when all our industries are strong can Taiwan be strong as a nation. Our micro-, small-, and medium-sized enterprises (MSMEs) are the lifeblood of Taiwan, and the development of our various industrial parks has given Taiwan the impetus for our prosperity. We must carry the spirit of “Made in Taiwan” forward, bringing it to ever greater heights. Thus, beyond just developing our high-tech industry, our Executive Yuan has already proposed a solution that will help traditional industries and MSMEs comprehensively adopt technology applications, engage in the digital and net-zero twin transition, and develop channels, all for better operational structures and higher productivity. Taiwan must continue enhancing its economic resilience. In recent years, Taiwan has significantly increased its investments in the US, Japan, Europe, and the New Southbound countries, and such investment has already surpassed investment in China. This indicates that our efforts in diversifying markets and reducing reliance on any single market are working. Moving forward, we must keep providing assistance so that Taiwan industries can expand their global presence and market internationally from a solid base here in Taiwan. At the same time, Taiwan must use democracy to promote economic growth with the rest of the world. We must leverage our strengths in the semiconductor and AI industries. We must link with democratic countries so that we can together enhance the resilience of supply chains for global democracies. And through international cooperation across many sectors, such as UAVs, low-orbit communications satellites, robots, military, security and surveillance, or biopharmaceuticals, renewable energy technology, new agriculture, and the circular economy, we must keep abreast of the latest cutting-edge technology and promote diverse development. This approach will help Taiwan remain a leader in advancing global democratic supply chains, ensuring their security and stability. Third, we must continue working toward a Balanced Taiwan and generational justice, ensuring that the fruits of our economic growth can be enjoyed by all our people. Democracy means the people have the final say. Our nation belongs to all 23 million of us, without regard for ethnic group, generation, political party, or whether we live in urban or rural areas. In this new year, we must continue to pursue policies that promote the well-being of the nation and the people. But to that end, the central government needs adequate financial resources to ensure that it can enact each of these measures. Therefore, I hope that the ruling and opposition parties can each soberly reconsider the amendments to the Act Governing the Allocation of Government Revenues and Expenditures and find a path forward that ensures the lasting peace and stability of our country. For nine consecutive years, the minimum wage has continued to rise. Effective today, the minimum monthly salary is being raised from NT$27,470 to NT$28,590, and the hourly salary from NT$183 to NT$190. We hope by raising the pay for military personnel, civil servants, and educators for two consecutive years, coupled with benefits through wage increases and tax reductions, that private businesses will also raise wages, allowing all our people to enjoy the fruits of our economic growth. I know that everyone wants to pay lower taxes and rent. This year, we will continue to promote tax reductions. For example, unmarried individuals with an annual income of NT$446,000 or less can be exempt from paying income tax. Dual-income families with an annual income of NT$892,000 or less and dual-income families with two children aged six or younger with an annual income of NT$1,461,000 or less are also exempt from paying income tax. Additionally, the number of rent-subsidized housing units will also be increased, from 500,000 to 750,000 units, helping lighten the load for everyone. This year, the age eligibility for claiming Culture Points has been lowered from 16 to 13 years, so that now young people aged between 13 and 22 can receive government support for experiencing more in the arts. Also, our Ten-Billion-Dollar Youth Overseas Dream Fund is about to take effect, which will help more young people in Taiwan realize their dreams by taking part in education and exchange activities in many places around the world. We are also in the process of establishing a sports ministry to help young athletes achieve their dreams on the field, court, and beyond. The ministry will also be active in developing various sports industries and bringing sports and athletics more into the lives of the people, making our people healthier as a result. This year, as Taiwan becomes a “super-aged society,” we will launch our Long-term Care 3.0 Plan to provide better all-around care for our seniors. And we will expand the scope of cancer screening eligibility and services, all aimed at creating a Healthy Taiwan. In addition, Taiwan will officially begin collecting fees for its carbon fee system today. This brings us closer in line with global practices and helps us along the path to our goal of net-zero emissions by 2050. We will also continue on the path to achieving a Balanced Taiwan. Last month, the Executive Yuan launched the Trillion NT Dollar Investment National Development Plan and its six major regional flagship projects. Both of these initiatives will continue to expand the investment in our public infrastructure and the development of local specialty industries, narrowing urban-rural and wealth gaps so that all our people can live and work in peace and happiness. My fellow citizens, today’s Taiwan is receiving international recognition for its performance in many areas, among them democracy, technology, and economy. This tells us that national development is moving in the right direction. In this new year, Taiwan must be united, and we must continue on the right course. We hope that everyone in the central and local governments, regardless of party, can work hard together to ensure that national policies are successfully implemented, with the people’s well-being as our top priority. This will allow Taiwan sure footing as it strides forward toward ever greater achievements. In this new year, we have many more brilliant stories of Taiwan to share with the world, inspiring all Taiwanese, both here and around the world, to cheer time and again for the glory of Taiwan. Taiwan will keep going strong. And we will keep walking tall as we enter the new global landscape. Thank you.