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.

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