Office of the President Republic of China(Taiwan)

The Presidential Office extends its sincere appreciation to United States President Donald Trump, who on December 2 (US EST) formally signed the Taiwan Assurance Implementation Act, which stipulates that the US Secretary of State shall conduct a review of the Department of State’s guidance that governs relations with Taiwan, including related documents, and reissue such guidance not less than every five years, as well as submit an updated report to Congress not later than 90 days after completing the review. Presidential Office Spokesperson Karen Kuo (郭雅慧) stated that the entry into force of the Taiwan Assurance Implementation Act carries great significance in that it affirms the value of US interaction with Taiwan, supports closer Taiwan-US relations, and stands as a firm symbol of our shared values of democracy, freedom, and respect for human rights. Spokesperson Kuo also indicated that in addition to Taiwan and the US sharing the fundamental values of freedom and democracy, a robust Taiwan-US relationship is a cornerstone for maintaining peace and stability in the Indo-Pacific region. Going forward, Taiwan will continue to maintain close contact with the US, deepen our partnerships across many sectors, and serve as a steady force for global prosperity and development. As a responsible member of the international community, Taiwan will work hand in hand with the US and other like-minded countries in the region to ensure peace, prosperity, and stable development in the Indo-Pacific.  

On November 25, an op-ed penned by President Lai Ching-te entitled “I will boost defense spending to protect our democracy” was published by The Washington Post, explaining to a global audience Taiwan’s firm resolve to strengthen its self-defense capabilities. The article also notes that Taiwan’s government will continue to boost military investment and recently introduced a historic US$40 billion supplementary defense budget, underscoring its commitment to defending Taiwan’s democracy. In addition to investing in the national defense industry and cutting-edge technologies, Taiwan is accelerating the development of the T-Dome, a multilayered, integrated defense system designed to protect Taiwan from PLA missiles, rockets, drones, and combat aircraft. Taiwan will also expand cooperation with like-minded countries to support a shared deterrence architecture across the Indo-Pacific. Furthermore, Taiwan will broaden coordination both domestically and with international partners, and improve collaboration between government, military, and civic groups so that society can better respond to disasters, both manmade and natural. The president emphasized that Taiwan and the United States share the conviction of peace through strength, and that Taiwan will ensure its sovereignty, democracy, and freedom are defended through robust, decisive action. The following is the full text of President Lai’s article: For more than four decades, the enduring foundations laid by the 1979 Taiwan Relations Act and reinforced by President Ronald Reagan’s Six Assurances have guided Taiwan and the United States in jointly upholding peace and stability across the Taiwan Strait. Together, we have recognized that safeguarding freedom and prosperity in the Indo-Pacific requires clarity and strength. Today, these principles remain as vital as ever. The People’s Republic of China’s unprecedented military buildup, combined with intensifying provocations in the Taiwan Strait, East and South China Seas and across the Indo-Pacific, have highlighted the fragility of peace in the region. Beijing’s willingness to alter the status quo by force has become increasingly evident. We are grateful that President Donald Trump has made clear the importance of American leadership around the world. The international community is safer today because of the Trump administration’s pursuit of peace through strength. A strong and engaged America remains a cornerstone for global stability, keeping potential conflict at bay. Taiwan is equally committed to keeping the Indo-Pacific region safe. Despite record People’s Liberation Army incursions into Taiwan’s vicinity — and military drills probing past what is known as the First Island Chain, extending from Japan to the Philippine archipelago — Taiwan has remained steadfast, acting with firm resolve against the threats and challenges faced. To further make good on our commitments, I am significantly increasing Taiwan’s defense budget. In response to growing pressure from Beijing, our defense spending, which has already doubled in recent years, is expected to rise to 3.3 percent of gross domestic product by next year. I am committed to lifting this baseline to 5 percent by 2030, representing the largest sustained military investment in Taiwan’s modern history. As part of this effort, my government will introduce a historic $40 billion supplementary defense budget, an investment that underscores our commitment to defending Taiwan’s democracy. This landmark package will not only fund significant new arms acquisitions from the United States, but also vastly enhance Taiwan’s asymmetrical capabilities. In doing so, we aim to bolster deterrence by inserting greater costs and uncertainties into Beijing’s decision-making on the use of force. My message here is clear: Taiwan’s dedication to peace and stability is unwavering. No country will be more determined in safeguarding Taiwan’s future than our own. Looking forward, we will also invest in cutting-edge technologies and expand Taiwan’s defense industrial base. Partnering with like-minded countries, we will leverage Taiwan’s manufacturing strengths to reinforce defense supply chains, accelerate the deployment of advanced systems and rapidly respond to emerging threats — all while creating new jobs at home and abroad. As part of this, I am accelerating the development of ‘T-Dome,’ a multilayered, integrated defense system designed to protect Taiwan from PLA missiles, rockets, drones, and combat aircraft. Together with other AI-driven and unmanned platforms, these capabilities bring us closer to the vision of an unassailable Taiwan, safeguarded by innovation and technology. Furthermore, we will broaden coordination both domestically and with international partners. Last year, we established a top-level Whole-of-Society Defense Resilience Committee, improving collaboration between government, military, and civic groups so that our society can better respond to disasters, both manmade and natural. These preparations will continue to intensify. We will continue to pursue closer security ties with trusted partners and allies. We are grateful that the international community has continued to speak out forcefully for peace across the Taiwan Strait. Recent statements from Japan, the U.S., Europe, South Korea, Australia, New Zealand and the Group of Seven have all contributed to deterrence in the region. We will further cooperate across maritime, cybersecurity, resilience and other domains that support a shared deterrence architecture across the Indo-Pacific. Cross-strait stability is best served when we heighten the costs of military escalation, while minimizing the threshold of de-escalation. The risks of conflict must always outweigh the price for peace. This is underscored by the pace of our defense reforms and my firm determination to uphold the cross-strait status quo. While we will continue to pursue opportunities for cross-strait dialogue, with the understanding that our democracy and freedom remain nonnegotiable, we remain grounded by more than wishful thinking, as some have suggested. We will ensure that Taiwan’s security and sovereignty are defended not just by rhetoric but through robust, decisive action. Both presidents Trump and Reagan have understood the significance of peace through strength. Standing on the front lines of democracy, this is a lesson we live by each and every day. While there is much at stake, Taiwan’s resolve has never been stronger. Working together with America and like-minded democracies, we are confident that peace will prevail.

On the morning of November 25, President Lai Ching-te met with a delegation led by Speaker of the House of Assembly Jabulani Mabuza of the Kingdom of Eswatini. In remarks, President Lai thanked Eswatini for speaking out in support of Taiwan at international forums over the years. The president noted that cooperation between Taiwan and Eswatini has been fruitful in areas such as agriculture, public health, education, women’s empowerment, and renewable energy. He expressed hope that we will continue working together to make Eswatini an important base for linking Taiwan with African markets, creating even more opportunities for cooperation and spurring progress and prosperity in our nations and around the world. A translation of President Lai’s remarks follows: I extend a warm welcome to Speaker Mabuza, who is leading a delegation to Taiwan after his last visit in 2018, and also to the members of the House of Assembly, who are here for the first time. Your presence is a demonstration of Eswatini’s strong support for Taiwan and a sign that diplomatic ties between our countries continue to deepen. On behalf of the people of Taiwan, I would like to express my gratitude to you all. I also want to thank Speaker Mabuza for signing an economic cooperation agreement with Taiwan on behalf of the government of Eswatini when he visited in 2018 in his capacity as minister of commerce, industry and trade. The agreement laid a solid foundation for bilateral economic and trade interactions. I am confident that this visit will give Speaker Mabuza and the delegation a more comprehensive understanding of Taiwan and create greater opportunities for bilateral exchanges and collaboration. Over the past few years, cooperation between Taiwan and Eswatini has been fruitful in areas such as agriculture, public health, education, women’s empowerment, and renewable energy. In particular, our two countries are working together to build a strategic oil reserve facility, which will not only enhance Eswatini’s energy security but also advance its sustainable development. Eswatini is Taiwan’s key ally in Africa. Home to a stable investment environment and an outstanding talent pool, Eswatini is also an important member of the Southern African Customs Union and the African Continental Free Trade Area. Taiwan sees enormous potential for further developing the partnership with Eswatini. Moving forward, we will continue to encourage more companies in Taiwan to expand their global presence and market worldwide, and make Eswatini an important base for linking Taiwan with African markets. This will create even more opportunities for cooperation. On behalf of the people of Taiwan, I would also like to express heartfelt thanks to Eswatini for speaking out in support of Taiwan at international forums over the years. At this year’s United Nations General Assembly, His Majesty King Mswati III called to end the misinterpretation of UNGA Resolution 2758 and include Taiwan so that the UN can fulfill its mandate that no country is left behind. This staunch backing gives Taiwan additional strength to collaborate and deepen partnerships with Eswatini and other like-minded countries. I look forward, with the efforts of our esteemed guests, to continued development, spurring progress and prosperity in our nations and around the world. In closing, I once again thank Speaker Mabuza for leading this delegation to Taiwan. Please convey greetings from Taiwan to the king and queen mother. I wish you all a smooth and successful visit. Speaker Mabuza then delivered remarks, saying that it is his singular honor for him to stand here today as the speaker of the Kingdom of Eswatini. He then conveyed warm greetings from His Majesty King Mswati III and the Indlovukazi and the people of Eswatini, extending their sincerest appreciation for the unwavering support and friendship that Taiwan has consistently demonstrated towards their nation. He remarked that their visit to Taiwan has been a remarkable journey filled with insightful meetings, enriching cultural exchanges, and a deepened understanding of Taiwan’s remarkable achievements in various fields. He noted that they are particularly impressed by Taiwan’s technological advancement, vibrant democracy, commitment to social welfare, and environmental sustainability, adding that these are qualities they admire and aspire to emulate in their own development endeavors in Eswatini. Speaker Mabuza said that President Lai’s leadership and vision for Taiwan’s future are truly inspiring, and that the emphasis on innovation, education, and people-centered policies resonates deeply with their own national aspirations. He stated that as we navigate the challenges of our time, from climate change to economic inequality, they believe our nations can learn from each other and work together to find solutions that benefit not just our peoples, but the global community at large. Speaker Mabuza pointed out that diplomatic relations between our two countries are a testament to our shared values of sovereignty, mutual respect, and cooperation. He stated that Eswatini cherishes the strong bonds we have forged over the years and is committed to further strengthening those ties. Whether through economic partnership, cultural exchanges, or collaborative efforts in areas such as healthcare and technology, he said, they see vast potential for growth and mutual benefit.  Speaker Mabuza expressed hope of continuing our fruitful relationship and exploring new avenues of cooperation so that together, we can build a brighter future for our citizens and contribute positively to regional and global peace and prosperity. In closing, the speaker once again thanked Taiwan for the warm hospitality and for being a steadfast friend to the Kingdom of Eswatini. The delegation also included House of Assembly Members Lindiwe Mamba, Joseph Souza, Jabulane M. Simelane, and Allen Vilane.

At noon on November 18, President Lai Ching-te hosted a state banquet in honor of Prime Minister of Tuvalu Feleti Teo and his wife. In remarks, President Lai thanked Tuvalu for supporting Taiwan at numerous international venues. The president indicated that Taiwan and Tuvalu have made excellent progress in cooperation in recent years, signing many significant agreements which have helped lay a formidable foundation for their diplomatic ties. He expressed hope for continued cooperation to promote democracy, peace, and prosperity. A translation of President Lai’s remarks follows: I once again warmly welcome Prime Minister Teo, Madame Tausaga Teo, and their delegation to Taiwan. When I visited Tuvalu last year, I was deeply impressed by its natural beauty and the hospitality of its people. I hope that our distinguished guests will also gain a deeper understanding of Taiwan on this trip. Frequent exchanges help strengthen the bonds of friendship as we pave the way to a better future. On behalf of the people of Taiwan, I would like to especially thank Tuvalu for taking concrete action at various international venues in staunch defense of Taiwan’s right to international participation. At the Pacific Islands Forum Leaders Meeting in September this year, thanks to Prime Minister Teo’s full support, Taiwan’s right to take part and its contributions were acknowledged in the forum communiqué. At this year’s United Nations General Assembly, Prime Minister Teo also advocated for Taiwan, stressing that UNGA Resolution 2758 does not preclude Taiwan’s meaningful participation in the UN system and calling for its inclusion in the UN. Since Prime Minister Teo took office over a year ago, Taiwan and Tuvalu have continued to expand exchanges and make excellent progress in cooperation across many domains. We have signed numerous agreements, including today’s Taiwan-Tuvalu Kaitasi Treaty, the Agreement on Diversifying Fisheries Cooperation, and the Letter of Intent on Sports Exchange and Cooperation, which have helped lay a formidable foundation for our diplomatic ties. I once again thank Tuvalu for its staunch support. Let us work closely together to defend democracy, maintain peace, and contribute to the prosperity and development of both countries. In closing, I wish Prime Minister Teo the best of health and success in his endeavors. May diplomatic relations between Taiwan and Tuvalu go from strength to strength, and may our friendship continue to flourish. Prime Minister Teo then delivered remarks, stating that it has been a day of profound significance, starting with a magnificent military parade and followed by a substantive, fruitful, and highly productive bilateral meeting with President Lai. The meeting was followed, he said, by the signing of the historical Kaitasi Treaty that delivers on the pledge that he and President Lai made during the latter’s state visit to Tuvalu in December last year to further strengthen and enhance the relationship between Tuvalu and Taiwan. The prime minister noted that two other agreements were also signed, signifying further cooperation between Tuvalu and Taiwan in the areas of diversification of fisheries cooperation and sports and cultural exchanges. The moment that both sides shared, the prime minister said, reminded them once again of the enduring friendship, mutual respect, and shared values that unite Tuvalu and the Republic of China (Taiwan). Prime Minister Teo went on to state that the banquet symbolizes more than just an occasion for sharing a meal and drink, but the bond of family, cooperation, and shared purpose that underpin the new kaitasi relationship between Tuvalu and Taiwan. It also reflects a bond of friendship grounded in mutual respect, loyalty, and trust, he said. The prime minister then reaffirmed Tuvalu’s unwavering friendship and commitment to strengthening its partnership with Taiwan in the years ahead. He stated that Tuvalu continues to stand steadfastly in support of Taiwan’s effort to reengage fully in international relations. Prime Minister Teo expressed hope that cooperation will continue to grow, guided by the principles of the kaitasi, which are shared destiny, shared responsibility, and a shared future, including respect for the principle of democracy and the rule of law. He concluded his remarks by stating that they look forward to continuing this journey together as trusted partners. Also in attendance at the banquet was Tuvalu Ambassador Lily Tangisia Faavae.

On the morning of November 18, President Lai Ching-te, accompanied by Vice President Bi-khim Hsiao, met with Prime Minister Feleti Teo of Tuvalu at the Presidential Office following a welcome ceremony with military honors for him and his wife. The leaders also witnessed the signing of Taiwan-Tuvalu Kaitasi Treaty, the Agreement on Diversifying Fisheries Cooperation, and the Letter of Intent on Sports Exchange and Cooperation. In remarks, President Lai expressed hope that Taiwan will continue to expand and diversify exchanges and strengthen our cooperative partnership with Tuvalu as we jointly contribute even more to the world. A translation of President Lai’s remarks follows: Last December, I visited the beautiful country of Tuvalu on my first overseas trip as president. I want to thank Prime Minister Teo for the warm hospitality accorded to me by his government and the Tuvaluan people. I am delighted to meet in discussion with you again today. Taiwan and Tuvalu are members of the Austronesian family as well as staunch partners. After his appointment last year, Prime Minister Teo announced 21 policy priorities, of which strengthening diplomatic relations with Taiwan was listed as a key policy goal. Since taking office as president, I have actively promoted the Diplomatic Allies Prosperity Project. By sharing Taiwan’s experience, we aim to deepen collaboration with our allies and other like-minded countries to jointly advance prosperity and development. During my visit to Tuvalu last year, I signed a joint communiqué with Prime Minister Teo on advancing the comprehensive partnership between Taiwan and Tuvalu. Our two nations designated representatives to form a team of experts to enhance our cooperative projects and strengthen bilateral ties. Thanks to the efforts of that team, we will momentarily be signing the Kaitasi Treaty between Taiwan and Tuvalu. Our countries are like family. The word kaitasi, which connotes kinship, symbolizes the deep bonds of friendship and mutual support that we share. As we move forward, the treaty will lay the foundation for further bilateral collaboration, enabling us to continue deepening our partnership in the economy, food security, medicine and public health, and other areas. Today, our countries are also signing an agreement on diversifying fisheries cooperation and a letter of intent on sports exchange and cooperation. During my trip to Tuvalu last year, Prime Minister Teo highlighted the issue of strengthening fisheries cooperation, which is also a priority for me. After that visit, Taiwan sent a fact-finding mission to Tuvalu and both sides worked to reach a consensus, leading to the signing of today’s agreement and bringing our bilateral ties into a new chapter. We are also enhancing talent development and exchanges in sports in the hope that both countries will engage more with the world and enhance our international visibility by participating in sports. Taiwan will continue to expand and diversify exchanges with Tuvalu to promote mutual prosperity and development. Let us show the international community the depth of our friendship and the strength of our cooperative partnership as we contribute even more to the world.  Prime Minister Teo then delivered remarks, first expressing his thanks for the splendid reception extended to him and his delegation. He expressed his excitement that, less than a year after President Lai’s state visit to Tuvalu in December last year, when the two leaders pledged to further strengthen the Tuvalu-Taiwan partnership by establishing a team of experts, they are delivering on that pledge today by witnessing the signing of the Kaitasi Treaty between Taiwan and Tuvalu. This treaty, he said, will be the first treaty of its kind between Tuvalu and Taiwan, and it will be launched on a legal platform, giving rise to legal commitments instead of merely political commitments. Prime Minister Teo pointed out that the treaty uses the word kaitasi, which in Tuvaluan literally means “eat together” but carries a far more significant traditional value of shared ownership and shared responsibility. He further explained that the treaty commits to establish a new and innovative assistance mechanism to ensure predictability and sustainability in Taiwan’s future support to Tuvalu’s national development priorities while also consolidating cooperation on climate action, economic development, food security, health, education, and cultural exchanges. In addition, he said, they will also be signing an agreement on diversifying fisheries cooperation, which will expand opportunities in the purse seine and longline fisheries and related activities; and a letter of intent on sports exchange and cooperation, which will strengthen youth development and cultural ties. Prime Minister Teo expressed gratitude for the almost five decades of support that Taiwan has provided to Tuvalu in the areas of education and scholarships, health and medical services, fisheries partnership, agriculture and food security, infrastructure development, and cultural, sports, and people-to-people exchanges. The prime minister stated that Tuvalu is committed and will continue to advocate strongly for the inclusion and participation of Taiwan in the United Nations and its specialized agencies. He mentioned that as the UN celebrated its 80th anniversary of existence this year, he reminded the United Nations General Assembly in September of this year of the hypocrisy and injustice of the UN system advocating for the principle of “not leaving anyone behind” while not finding a place for the voice of the more than 23 million citizens of Taiwan in the UN systems. Likewise, he added, at the regional annual meeting of the Pacific Islands Forum (PIF) in September this year in the Solomon Islands, he fought hard and successfully for Taiwan to remain engaged in the work of the PIF as it has done so since 1992. Prime Minister Teo, emphasizing that climate change and climate-induced sea-level rise remain the greatest existential threats to Tuvalu’s future survivability, expressed Tuvalu’s gratitude to Taiwan for supporting adaptation efforts through their Tuvalu Coastal Adaptation Project and for committing to recognize Tuvalu’s future statehood and sovereignty regardless of the impact of climate change. He concluded by expressing hope that the Kaitasi Treaty will set the firmest of foundations for decades of cooperation ahead. After the bilateral talks, President Lai and Prime Minister Teo witnessed the signing of the Kaitasi Treaty between Taiwan and Tuvalu, the Agreement on Diversifying Fisheries Cooperation, and the Letter of Intent on Sports Exchange and Cooperation by Minister of Foreign Affairs Lin Chia-lung (林佳龍), Minister of Agriculture Chen Junne-jih (陳駿季), and Minister of Sports Lee Yang (李洋). The delegation was accompanied to the Presidential Office by Tuvalu Ambassador Lily Tangisia Faavae and her husband.

In a recent interview via videoconference with The New York Times for its DealBook Summit, President Lai Ching-te responded to questions from host Andrew Ross Sorkin on topics including Taiwan’s national defense, cross-strait relations, Taiwan-US relations, the Russia-Ukraine war, and the semiconductor industry. The interview was broadcast in the early morning of December 4. The DealBook Summit is a major annual event held by The New York Times aimed at facilitating dialogue among leaders from various sectors and sharing their insights and analyses on international affairs. This year’s summit was held on December 3 (US EST) in New York, and included such speakers as Israeli Prime Minister Benjamin Netanyahu, United States Treasury Secretary Scott Bessent, California Governor Gavin Newsom, Palantir CEO Alex Karp, and Turning Point USA CEO and Chair of the Board Erika Kirk. The following is the full text of the interview: Q: Here’s where I want to start the conversation. You’ve just announced this past week that you’re introducing a US$40 billion special budget for military spending to buy more weapons from the US to try to deter China from invading Taiwan. What indicators, and perhaps new indicators, are you looking at that shows an increased threat to Taiwan? President Lai: We can see that China’s military drills targeted at Taiwan are becoming increasingly frequent and intense. They have even moved beyond the first island chain into the second, affecting the wider Indo-Pacific region. At the same time, China’s united front influence campaigns against Taiwan are also becoming more serious. In order to safeguard national security and fulfill our responsibility to maintain peace and stability across the Taiwan Strait, we have announced this special defense budget. We believe that peace is priceless, and war has no winners. While we aspire to peace, we cannot harbor illusions about it. Peace must be secured through strength. This is why we are increasing our defense budget and strengthening our national defense capabilities, while also cutting back our economic dependence on China. This includes improving our economic resilience. In 2010, 83.8 percent of Taiwan’s outbound investment went to China; last year, that figure had dropped to around 7 percent. We are also working side-by-side with other democracies to reinforce deterrence. Robust preparations are the best way to avoid war and achieve peace. Q: Let me ask you this: President Xi has said that his goal for China’s military is to be capable of taking Taiwan by force by 2027. You said that Beijing is accelerating these preparations for an attempted invasion. So what do you think China’s timeline is now? President Lai: We must ensure the best possible preparations for the worst-case scenarios. Whatever timeline the PLA may have, Taiwan’s fundamental principle is that we must be ready first – this is our basic principle. I also want to use this opportunity to reiterate to the international community that Taiwan will do everything necessary to protect itself and to safeguard regional peace and stability. We are grateful to the international community, including the G7, the president of the United States, Japan’s political leaders, and many others for their interest in cross-strait peace and emphasizing that stability in the Taiwan Strait is essential to global security and prosperity. Their shared position greatly contributes to stability in Taiwan and peace in the region. We hope Taiwan can continue working with the international community to uphold the rules-based international order. Q: Well, let me ask you about that because, Mr. President, last week you said the relationship between Taiwan and the US is rock-solid. How confident are you that the United States, and in particular President Trump, would come to the aid of Taiwan if China were to invade? President Lai: Although Taiwan and the United States do not have official diplomatic relations, Taiwan is deeply grateful to the US Congress for passing the Taiwan Relations Act and to President Ronald Reagan for the Six Assurances. For decades, successive US administrations and both parties in Congress have strongly supported Taiwan based on this foundation. Our relationship truly is rock-solid. Since President Trump took office, cooperation with Taiwan has not only continued but even expanded. We look forward to working with the United States through tariff negotiations – not only to help address their trade deficit, but also to deepen bilateral economic relations and strengthen our friendship. Q: We’ve all been watching what’s been happening play out in Ukraine between Ukraine and Russia. And there have been questions inside Ukraine about the support that the United States has provided or not in terms of how this ultimately gets settled. How do you view what’s happening in Ukraine right now and the role that the US is playing there? President Lai: Taiwan stands with the people of Ukraine. We hope this irrational and illegitimate war will be over as soon as possible so that the Ukrainian people will no longer have to suffer. However, in ending this war, we also hope that Ukraine’s national dignity and the well-being of its people will be respected, and future conflict will be prevented. Q: You talked about trade earlier. When you talk about the relationship between the US and Taiwan, one of the reasons that Taiwan is so valuable, such a strategic asset – and President Trump talks about it this way about Taiwan – is because of semiconductors. And one of the things that he says is that he hopes that the US is going to be manufacturing 40 to 50 percent of all semiconductors in the next couple of years with your help. Does that make Taiwan more valuable ultimately to the US or do you worry at all that it makes it less valuable to the US? President Lai: Taiwan’s semiconductor industry plays a crucial role, especially as we enter the future AI era. But I want to emphasize, with humility, that Taiwan’s semiconductor sector is a global asset. The industry functions as an ecosystem: the US excels in R&D, design, and has the world’s largest market; Japan provides materials and equipment; the Netherlands makes advanced lithography systems; Taiwan specializes in logic chip manufacturing; and Korea leads in flash memory chips. In other words, semiconductors are a global ecosystem – it requires worldwide cooperation to be effective. This is why our government supports TSMC and other Taiwanese semiconductor firms as they invest in the US, Japan, Europe, or wherever they believe is needed. This contributes to global progress and prosperity. As a result, we remain supportive as President Trump seeks investments from Taiwanese semiconductor companies and suppliers in the US. We hope Taiwan can support the reindustrialization of the US. President Trump wants the US to become the world center for AI, and we are willing to assist in this. As I said earlier, we hope Taiwan-US tariff negotiations will not only help reduce the US trade deficit, but also deepen bilateral economic cooperation, further integrate Taiwan’s industries with the American economic structure, and strengthen the Taiwan-US relationship. This will contribute to global prosperity and development. Q: Do you think that President Trump’s timeline, this idea that 40 to 50 percent of all semiconductors could be manufactured in the United States in the next two or three years, is realistic? President Lai: We understand President Trump’s sense of urgency; he wants the United States to maintain an edge in global competition. Whether this target of 40 to 50 percent can be achieved within this timeframe depends not only on Taiwan’s support but also on the US government’s ability to facilitate land acquisition, water and electricity supply, workforce and talent development, and investment incentives. If the US government manages to do this well and effectively, then this goal becomes much more achievable. Q: There’s a big debate in the United States right now about whether companies like Nvidia should be allowed to sell their most advanced chips to China. And there has not been a real answer yet here in the US. I’m curious what you think about that. Do you think that the most advanced chips should be allowed to be exported to China? President Lai: As Taiwan’s president, it would not be appropriate for me to comment on US domestic policy. But I can share an experience: Around the year 2000, Taiwan faced a similar debate about whether our advanced chip manufacturing capabilities should move to mainland China. There was an extensive and thorough discussion across society and among different political parties. The consensus was that it would be unwise and should not happen. Looking back, that decision was correct. Had Taiwan allowed its most advanced manufacturing to relocate to China, Taiwan would not be what it is today. Q: Final question for you. Your economy is red hot right now, in large part because of the AI boom. It’s a two-part question. I wonder whether you’re worried about an AI boom being an AI bubble. And I’m also curious how you think about the Chinese economy today and how that relates to how President Xi even views Taiwan, and when and if it would consider either invading or, through using the gray zone, trying to effectively cut off or control Taiwan. President Lai: There are many different views in the tech and economic communities. Some say AI could become a bubble; others say it may not. As a political leader, I believe the AI era will bring greater convenience to people’s lives, stimulate economic development, and contribute to global prosperity. That is why we must take steps to prevent AI from becoming a bubble. In other words, leaders around the world – especially those from countries with AI-related industries – should work together and take necessary measures to ensure AI develops sustainably and has a soft landing, so that it can drive long-term global growth. China’s economy is indeed struggling. Taiwan’s growth rate this year is projected to reach 7.37 percent, while international financial institutions estimate China’s growth to be only a little above 4 percent. We sincerely hope that as China faces economic pressures, President Xi Jinping will focus not on territorial expansion but on improving the well-being of the Chinese people. Taiwan is willing to help and to cooperate in addressing these economic challenges.