Office of the President Republic of China(Taiwan)

On the morning of November 13, the Presidential Office held a press conference on the 2021 APEC meetings, including the APEC Economic Leaders' Meeting (AELM) and Ministerial Meetings. Joined by Minister without Portfolio John C. C. Deng (鄧振中), Minister of Economic Affairs Wang Mei-hua (王美花), National Security Council Deputy Secretary-General Hsu Szu-chien (徐斯儉), and Director-General Sharon S. N. Wu (吳尚年) of the Ministry of Foreign Affairs' Department of International Organizations as Senior Official for APEC, Leader's Representative Dr. Morris Chang (張忠謀) briefed the public on the results of this year's APEC meetings and responded to questions from the media. Dr. Chang discussed the remarks he delivered at the previous day's AELM, a full transcript of which follows: Prime Minister [Jacinda] Ardern has encouraged us to respond to the question of "How can we work together to accelerate the economic recovery from COVID-19?" Chinese Taipei will respond as follows: First, COVID-19 is not over yet. The world, including APEC, is still struggling toward what we may consider to be a valid signpost that COVID-19 is behind us: namely, free travel again, without restrictions and quarantines. To get to that signpost, the best medical advice appears to be: sufficiently broad vaccination coverage among the world population. Getting back to APEC, some members do not have enough vaccines while others have surpluses and/or are manufacturers. We believe that the latter should make it easy for the former to obtain sufficient vaccines and implement broad vaccination coverage. On behalf of Chinese Taipei, I am happy to report that, while I expressed some concern in our special session in July about our vaccine adequacy, that concern has now eased somewhat due to generous donations by the US and Japan, and by several local enterprises and institutions. Also, as perhaps one of the most successful APEC members to control the severity of the pandemic outbreak through digital tools so far, Chinese Taipei repeats our willingness to help other members by sharing our experience with them. Once we have reached the signpost of free travel, it means we have conquered, or at least neutralized COVID-19. What remains to be our main challenge? Free trade--free trade that is only subject to vital national security needs. APEC members have thrived during the past several decades through free trade. Chinese Taipei is concerned that, recently, "free trade" seems to carry more conditions and qualifications than it used to. We believe most of those conditions and qualifications are counterproductive. We earnestly believe that free trade, subject to only vital national security needs, is the broad avenue to supply chain resiliency and robust prosperity for each and every APEC member. Speaking of supply chain resiliency, the recent semiconductor supply bottleneck has often been brought up. The chip shortage is a culmination of an original underestimation of demand, natural disaster, logistical jams, and digital demand spikes. While a shortage of any critical component is a serious problem, a free market, which includes free trade and free competition, is still the best solution. In fact, the greatly stepped-up building of chip manufacturing capacity in response to the recent chip shortage, is testimony to our belief that the free market is the best solution to shortage or excess problems. Regional economic integration brings our economic and trade relations closer. Chinese Taipei believes that our economic development depends importantly on APEC regional prosperity. Therefore, we believe in supporting initiatives that deepen economic integration, promote high standards on trade-related rules, and help improve the livelihoods of our people across the Asia-Pacific. Because of these beliefs, we have applied to join the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership), a comprehensive agreement that could generate momentum for the development of the region – liberalizing trade and investment while promoting sustainable growth. Chinese Taipei plays an irreplaceable role in the global high-tech supply chain. We also have a highly transparent market economy, and are able and willing to respect the CPTPP's high standards. Finally, we thank New Zealand for overcoming all the challenges this year and successfully hosting all the APEC meetings. We believe that the achievements in this year's priority areas will lay the groundwork for the APEC agenda in the future. We also thank and support the United States' and Peru's offers to host APEC in 2023 and 2024, respectively. We also look forward to the APEC meetings to be hosted by Thailand next year. Dr. Chang further stated that at this year's AELM, APEC members focused on two important issues, the first of which was vaccines. He said that countries with a vaccine surplus outlined how many doses they have donated and how many they will donate in the future, and noted that APEC members without enough vaccines voiced complaints. Dr. Chang said that Chinese Taipei lies somewhere in the middle, and that while we are not in a position to donate vaccines, the shortage he mentioned in July seems to have eased. The second issue of common concern, Dr. Chang said, was economic recovery and the question of how to use technology and digitalization to revive our economies in an inclusive way, so that the resulting economic prosperity is not limited to only a minority of people. Other issues discussed included sustainability and climate change. Dr. Chang then answered questions from the media. Asked whether other APEC members had responded to his statement during the AELM expressing our desire to join the CPTPP and citing Taiwan's competitive advantages, Dr. Chang said that AELM participants delivered their statements in alphabetical order, with no time allotted in the agenda for responses. He added that, in regard to our CPTPP accession, he had made clear in his remarks that Chinese Taipei plays an irreplaceable role in global high-tech supply chains, has a highly transparent market economy, and is willing and able to respect the CPTPP's high standards, all of which are strong qualifications for entry. Dr. Chang was also asked if China had expressed goodwill or sought to clarify its previously stated position that, in order to participate in mechanisms for economic cooperation, Taiwan or Chinese Taipei must do so under the "one China principle." Dr. Chang responded in the negative, saying that China did not bring up the "one China principle" in the meeting. Dr. Chang was further asked if other leaders had expressed concern about chip shortages or had discussed related issues with him. Dr. Chang responded that none of the other leaders had broached the topic, and that he was the only one to mention it, adding that he brought it up only as a good example of why the free market is the best solution to shortages or oversupply problems. Regarding the chip shortage, Dr. Chang said that, in a free-market environment, the private sector can quickly ramp up production capacity before any government takes action. Dr. Chang also referred to his statement during the AELM that free trade seems to carry more conditions and qualifications than it used to, citing the US as a longtime free trade advocate which has now suddenly added conditions requiring more domestic production of semiconductors and integrated circuits.

In response to the United States' second donation of COVID-19 vaccines to Taiwan, which comprised 1.5 million Moderna doses and arrived around noon on November 1, Presidential Office Spokesperson Xavier Chang (張惇涵) stated that the Presidential Office sincerely thanks the United States government for once again taking concrete action to support Taiwan. Noting that the US has to date donated a total of 4 million COVID-19 vaccine doses to Taiwan, Spokesperson Chang said this latest donation reflects a virtuous cycle of cooperation between democratic partners in our fight against the pandemic, shows that the Taiwan-US friendship is flourishing in the spirit of "real friends, real progress," and highlights that US government support for Taiwan is rock-solid. Spokesperson Chang noted that this past June, when Taiwan was facing a serious challenge from the pandemic, the US government acted quickly to donate 2.5 million vaccine doses, which helped Taiwan significantly in overcoming that challenge. During her visit to Taiwan that month, US Senator Tammy Duckworth declared that the US would not let Taiwan "stand alone," a remark which deeply touched the people of Taiwan. As US President Joe Biden said, vaccines are the product of the power of democracy and scientific ingenuity; the US government's move to again extend a helping hand demonstrates a firm belief in democratic values and that Taiwan is not alone. Spokesperson Chang also noted that, thanks to the tireless work of Taiwan's pandemic response professionals, the togetherness of our people, and continued assistance from our democratic partners, Taiwan gradually emerged from the outbreak of COVID-19 earlier this year, which has been effectively brought under control. To date, over 70% of people in Taiwan have received at least one vaccine shot, and over 30% have received two. The spokesperson again expressed sincere gratitude to the US government for its timely vaccine donations, and said that inspections of this shipment will proceed quickly so that the doses can be distributed and administered via Taiwan's vaccination program. Spokesperson Chang reiterated that the Presidential Office is deeply thankful to the members of Taiwan's diplomatic corps as well as all others on both sides who were involved in facilitating the prompt delivery of these vaccines. Taiwan and the US are steadfast partners who share the same values, and we are convinced that Taiwan-US cooperation can overcome the challenges of the pandemic and contribute to global public health. Taiwan will continue to deepen all facets of its cooperative partnership with the US, as we work together to maintain regional peace and stability and promote prosperity and development.

Responding to Japan's sixth donation of AstraZeneca COVID-19 vaccines, which comprised 300,000 doses and arrived in Taiwan on the morning of October 27, Presidential Office Spokesperson Xavier Chang (張惇涵) stated that the Presidential Office once again expresses heartfelt and sincere thanks to the Japanese government. Spokesperson Chang noted that Japan has donated a total of more than 4.2 million COVID-19 vaccine doses to Taiwan over six shipments, demonstrating our genuine friendship. Spokesperson Chang stated that the "friendship vaccines" donated by the Japanese government have contributed substantially to raising overall vaccination coverage in Taiwan and better protecting our society. The people of Taiwan have been deeply moved by these vaccine donations, which reflect the resolute friendship between Taiwan and Japan and are a testament to the enduring virtuous cycle of mutual support between our countries. Spokesperson Chang said that the Presidential Office once again expresses sincere thanks to our diplomatic personnel and all others who contributed to this effort. The spokesperson added that Taiwan and Japan are steadfast partners who share common values, and that we will continue to strengthen our bilateral cooperation to enhance the well-being of our peoples, while upholding peace and stability and promoting prosperity and development in the region. Spokesperson Chang emphasized the government's belief that, through continued cooperation, Taiwan and Japan will overcome the challenges posed by the COVID-19 pandemic and be a positive force for global public health.

Responding to the September 26 arrival of 160,000 AstraZeneca COVID-19 vaccine doses donated by Slovakia, Presidential Office Spokesperson Xavier Chang (張惇涵) said that the Presidential Office is sincerely thankful to the government of Slovakia for its support for Taiwan. Spokesperson Chang stated that Slovakia's decision to increase its originally announced donation of 10,000 doses to 160,000 highlights the close friendship Taiwan and Slovakia have maintained in our joint efforts to fight the COVID-19 pandemic. The people and government of Taiwan are deeply grateful for Slovakia's assistance. Spokesperson Chang noted that since the outbreak of the pandemic last year, Taiwan and Slovakia have cooperated closely to fight the spread of COVID-19. Our central government, the Kaohsiung City government, and Taiwan's private sector have donated 700,000 face masks to Slovakia, and Slovakia last year became the first European Union member to include Taiwan on a "green list" for international travelers. This year, moreover, the Foreign Affairs Committee of Slovakia's National Council passed a resolution supporting Taiwan's participation in the World Health Assembly. Spokesperson Chang added that as the world continues to fight COVID-19, these actions reflect a virtuous cycle of mutual support between fellow democracies. Spokesperson Chang pointed out that Taiwan's friendly ties with countries in Central and Eastern Europe have continued to deepen throughout the fight against COVID-19, with Lithuania, the Czech Republic, Poland, and Slovakia having donated a combined total of more than 840,000 vaccine doses to Taiwan. Their assistance has greatly increased Taiwan's vaccination coverage and helped protect Taiwanese society from COVID-19, stated Spokesperson Chang, who said that the Presidential Office again extends its deepest gratitude to Taiwan's diplomatic team and everyone else who helped facilitate the prompt delivery of these vaccines. Spokesperson Chang further noted that the Taiwan government's recently announced trade and investment delegation to Eastern Europe is scheduled to visit Slovakia in October, and has received an enthusiastic response from the industrial sector. Building on an already robust foundation, Taiwan and Slovakia will continue to enhance our cooperative partnership across a range of fields, said Spokesperson Chang, adding that we firmly believe that Taiwan will continue to expand and deepen its friendly ties with the nations of Central and Eastern Europe, overcoming the pandemic together and acting as force for good in the world.

In response to Japan's fourth donation of AstraZeneca COVID-19 vaccine doses, which arrived in Taiwan on the afternoon of September 7, Presidential Office Spokesperson Xavier Chang (張惇涵) said that the Presidential Office is again sincerely grateful for Japan's timely and continued assistance. Including today's shipment of 64,000 doses, the Japanese government has now donated over 3.4 million vaccine doses to Taiwan. Spokesperson Chang said that doses from Japan's three previous donations have already been distributed for use in our domestic vaccine drive, significantly boosting Taiwan's vaccination coverage and helping to protect Taiwanese society from COVID-19. The Japanese government has once again extended a helping hand to Taiwan, even as the international community continues to face a serious pandemic, as global vaccine supplies remain limited, and as AstraZeneca vaccines are being administered to the Japanese public. Japan's assistance reflects the sincere friendship between Taiwan and Japan, and has deeply touched the people of Taiwan. Spokesperson Chang added that the Presidential Office would like to once again express sincere thanks to our diplomatic team and everyone else who helped facilitate this donation, and further expressed confidence that Taiwan and Japan will overcome the challenges of the pandemic through mutual cooperation and assistance. Taiwan will continue to expand its wide-ranging partnership with Japan on this strong foundation, working together to promote regional peace, stability, development, and prosperity while jointly contributing to global health and welfare.

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.