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2020-09-08
President Tsai attends the Ketagalan Forum-2020 Asia-Pacific Security Dialogue

While addressing the Ketagalan Forum-2020 Asia-Pacific Security Dialogue on the morning of September 8, President Tsai Ing-wen emphasized that security and economic development are inextricably linked. She stated that by coming together to build a free, open and prosperous region, like-minded countries can continue to drive future development.

Following is a transcript of President Tsai's remarks, which she delivered in English:

I would like to begin with a very warm welcome to all of today's participants from around the world.

Through modern technology, and our determination to overcome time differences, we have gathered here today to discuss key issues that affect us all. 

I hope that after the pandemic has receded, you all have a chance to visit Taiwan, and experience our vibrant democracy for yourselves.

While science and technology have made today's event possible, they have their limitations. 2020 will be remembered as the year that humankind was presented with the greatest challenge of the 21st century. That is the COVID-19 pandemic.

As of this week, there are over 27 million confirmed cases worldwide, and about 890 thousand deaths. Countries all over the world are now dealing with the second and third waves of infection, while medical experts are working around the clock to develop a vaccine. The challenge is daunting but no one is yielding. Certainly not us in Taiwan.

Taiwan's efforts to combat COVID-19 are a good story to tell. Beginning in January this year, my government was proactive, decisive, and transparent in combating the virus.

Taiwan's success story is a well-told one and I need not repeat it in detail here. But the most important lesson for us all is that, Taiwan was able to become one of the safest places in the world during this pandemic, and we made sure of this while maintaining our democratic principles and freedoms.

The effectiveness of our democratic governance in spite of the pandemic was made possible through the joint efforts of individual citizens, the business community, civil society and the government.

One well-known aspect of our response is the rapid expansion of face mask production through extensive public and private collaborations. Taiwan is now the second largest face mask producer in the world, making 20 million masks per day. This achievement has allowed our government to donate more than 51 million masks to more than 80 countries. Face masks embossed with "Made in Taiwan" can be seen from the White House to the streets of Europe, Japan and many other places around the world.

Taiwan's efforts do not stop here. We have research teams working with different partners in the United States and Europe to develop a vaccine. Our top research institute has developed a rapid diagnostic test that can detect the virus in just 15 minutes. We have also held numerous meetings to exchange knowledge and expertise regarding the prevention and control of Covid-19 with friends in the international community.

"Taiwan Can Help" was the motto for our efforts to support the global community in combatting the pandemic. It is because we truly believe that "helping ourselves enables us to help others;" and that "when we help ourselves, others will help us."

This is also an important belief to maintain, as we all face daunting security challenges in the Indo-Pacific region.

Taiwan stands at the forefront of defending democracy from authoritarian aggression. And our commitment to democracy and its values is unwavering.

As the president of Taiwan, I have worked to further accelerate the development of our asymmetrical capabilities to strengthen our national defense. Planning for substantive reforms on our military reserve and mobilization systems is also well underway.

Taiwan bears the ultimate responsibility for our own defense. My government has increased our defense budget in proportion to the military challenges we face. As Commander in Chief, it is my responsibility to ensure that our men and women in uniform have the equipment they need, and for the Taiwanese people to feel confident in our self-defense.

We have also procured necessary equipment from the United States, including new F-16Vs, as well as missiles and other additions to our asymmetrical capabilities. I am pleased that over the past four years, we have engaged in a regular process for arms sales, fulfilling our defense priorities.

At the same time, my government has been committed to enhancing our domestic production capabilities. We are engaged in new aircraft and naval vessel production, because we believe that a robust defense posture can be better supported by a more competitive defense industry. As a result, our T-5 Brave Eagle first took flight in June this year, and is one of the most advanced Fifth-Generation Advanced Jet Trainers in the world.

We are giving ourselves the tools to defend our home, our democracy and our region.

But no one country can accomplish the goals of maintaining regional peace, prosperity and security alone. They require far-reaching collaboration. This is where we need others' help. And this is where we can help each other.

The rapid militarization of the South China Sea, increasing and frequent grey-zone tactics in the Taiwan Strait and East China Sea, coercive diplomacy used against countries and corporations, just to name a few, are all destabilizing the Indo-Pacific region.

Furthermore, Hong Kong's recent past shows us that liberty and freedom can easily be lost, if our efforts to protect them are not coordinated and sustained.

It is time for like-minded countries, and democratic friends in the Indo-Pacific region and beyond, to discuss a framework to generate sustained and concerted efforts to maintain a strategic order that deters unilateral aggressive actions. We need a strategic order that encourages cooperation, transparency and problem-solving through dialogue, not threats of war. We need a strategy that avoids war, yet clearly conveys our resolve to protect our democracies.

If the pandemic has taught us anything at all, it is that transparency and good governance prevail and best serve our people.

The challenges we face during this era of Covid-19 go beyond public health and security. The pandemic has also severely disrupted national economies and international trade.

One of the most important and painful lessons we have learned is this: the global supply chains and trade mechanisms, we have come to heavily rely on, are highly fragile and are often subject to coercive measures by aggressive actors.

However, the current situation gives us an opportunity to reexamine and reorganize economic and trade cooperation, and most importantly, adapt to restructuring supply chains and re-enforce fair and non-coercive trade rules.

Last week, during the groundbreaking visit by the Czech Republic's Senate President to Taiwan, the American Institute in Taiwan (AIT) hosted the "Forum on Supply Chain Restructuring: Improving Resilience Amongst Like-Minded Partners". Participants included representatives from the EU, Japan, the Czech Republic, and Taiwan.

The discussion included the need for restructuring global supply chains to bring them closer to home, or locate them in like-minded economies. Most importantly, these global supply chains should also be secure and free from political coercion.

Taiwan and the United States also issued a joint declaration on 5G security. We agreed that we should all be responsible for evaluating 5G hardware and software suppliers and supply chains to promote secure 5G architecture.

Taiwan and the US will also help raise awareness about risks regarding 5G networks, and work with like-minded partners to develop appropriate standards, guidelines and best practices.

This symbolizes a new chapter in the collaboration between like-minded partners with shared values, and a new future for the rules-based order in the Indo-Pacific, and around the globe.

This alliance will safeguard the values we cherish most: freedom, safety, human rights and democracy.

Let me conclude by saying that time and again, we have confronted great challenges. And yet, we have always been able to weather these storms by believing in our values and working together. Only by doing so can we create a peaceful, prosperous and secure Indo-Pacific region.

Security and economic development cannot be separated. A lack of economic integration amongst like-minded countries would only drive us to seek short-term solutions with those who do not share our values and beliefs. Divided we fall. Together, we are more than the sum of our parts.

One day, the current pandemic will recede. But I sincerely believe that the solidarity we develop through our efforts to create a free, open and prosperous region will continue to be a force in the future.

20 officials and academics from the US, Japan, the UK, France, Poland, Vietnam, India, Australia, New Zealand, Canada and Mexico, including former US National Security Advisor H.R. McMaster, member of the Japanese House of Councillors Matsukawa Rui, member of the Japanese House of Representatives Makishima Karen, former US Assistant Secretary of State for East Asian and Pacific Affairs Daniel Russel, member of the Australian House of Representatives Andrew Laming, and president of the Polish Academy of Sciences Jerzy Duszyński, engaged in dialogue with Taiwanese political and economic scholars at the event.

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2025-03-18
President Lai meets Commander-in-Chief of US Veterans of Foreign Wars Alfred Lipphardt  
On the morning of March 18, President Lai Ching-te met with a delegation led by Alfred Lipphardt, commander-in-chief of the Veterans of Foreign Wars (VFW) of the United States. In remarks, President Lai thanked the US government and Congress for helping Taiwan strengthen its self-defense capabilities, helping defend our common interests in the Indo-Pacific region. The president noted that as China attempts to intimidate Taiwan politically and militarily, strengthening Taiwan’s security means advancing global security and prosperity. He stated that we will continue to work closely with like-minded countries to safeguard freedom and jointly uphold regional peace, stability, and prosperity. A translation of President Lai’s remarks follows: I warmly welcome Commander-in-Chief Lipphardt as he leads this delegation to Taiwan for exchange. The VFW of the US has a fraternal relationship with Taiwan’s Veterans Affairs Council (VAC). Every year, the VFW invites our VAC to attend and deliver remarks at its National Convention. The VFW has also passed resolutions in support of the Republic of China (Taiwan). I want to thank the VFW for continuing to advance exchanges and cooperation with Taiwan and for deepening our friendship over the years. There is much that Taiwan can learn about veteran care from the United States. For example, the US Department of Veterans Affairs (VA), formed in 1989, is the second-largest US federal agency after the Department of Defense. And the VA’s commitment to providing services and support to veterans is truly admirable. Since taking office, I have visited military bases and presided over important military events on numerous occasions. One memorable instance was a visit to the Taoyuan Veterans Home, where I attended residents’ birthday celebrations. I also thanked them for all they had done for our country and for showing patriotism through their actions. Soldiers go to great lengths to protect the nation and people’s lives and property. It is thus the government’s duty and responsibility to provide for veterans so that they can lead secure and dignified lives and to safeguard their beloved homeland. I want to thank the US government and Congress for helping Taiwan strengthen its self-defense capabilities, establishing robust bilateral economic and trade links, and supporting Taiwan’s international participation. These actions help defend our common interests in the Indo-Pacific region. As China attempts to intimidate Taiwan politically and militarily, strengthening Taiwan’s security means advancing global security and prosperity. We will continue to work closely with like-minded countries to safeguard freedom and jointly uphold regional peace, stability, and prosperity. In closing, I once again thank you all for your visit. I wish you a smooth trip and look forward to even stronger friendship between veterans in Taiwan and the US. Commander-in-Chief Lipphardt then delivered remarks, first thanking President Lai for giving his time and saying that he is very proud to lead his delegation here. Noting that the very strong relationship between the VFW of the US and VAC of Taiwan dates back to 1980, the commander-in-chief said that at their National Convention in 2023, VAC Deputy Minister Wu Chih-yang (吳志揚) and then-VFW Commander-in-Chief Tim Borland renewed that relationship in a joint proclamation. He also said that a pre-taped video message from then-President Tsai Ing-wen was played for the members in attendance, which was a very proud moment. Commander-in-Chief Lipphardt, mentioning that the VFW will be holding its National Convention in Columbus, Ohio, this coming August, said he hopes President Lai will be able to provide a video address for the event. He also noted that the VFW Department of Pacific Areas will have their convention in Bangkok, Thailand on June 18-21, and that they invite members of the Taiwan VAC to join them at these events. Commander-in-Chief Lipphardt stated that the VFW is very proud to be the only veteran service organization to have a post located here in Taipei. He mentioned that the VFW will also hold a community service project in May, and that they look forward to being joined by US veterans throughout the country who will come and join this meaningful event. Commander-in-Chief Lipphardt stated that the VFW treasures its relationship with Taiwan, adding that Taiwan is a beautiful country with beautiful people. In closing, the commander-in-chief thanked President Lai once again for allowing them to come visit today and said that they look forward to continuing to build our relationship. Also in attendance were National President of the VFW Auxiliary Brenda Bryant, National Chief of Staff of the VFW Jeff Carroll, former National President of the VFW Auxiliary Jane Reape, and Executive Director of the VFW Washington Office Ryan Gallucci.  
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2025-02-17
President Lai meets former United States Deputy National Security Advisor Matthew Pottinger
On the morning of February 17, President Lai Ching-te met with a delegation led by former United States Deputy National Security Advisor Matthew Pottinger. In remarks, President Lai thanked the delegation for demonstrating staunch support for Taiwan through their visit. The president pointed out that increased cooperation between authoritarian regimes is posing risks and challenges to the geopolitical landscape and regional security. He emphasized that only by bolstering our defense capabilities can we demonstrate effective deterrence and maintain peace and stability across the Taiwan Strait and around the world. The president stated that moving forward, Taiwan will continue to enhance its self-defense capabilities. He also expressed hope of strengthening the Taiwan-US partnership and jointly building secure and resilient non-red supply chains so as to ensure that Taiwan, the US, and democratic partners around the world maintain a technological lead. A translation of President Lai’s remarks follows: I am delighted to welcome our good friends Mr. Pottinger and retired US Rear Admiral Mr. Mark Montgomery to Taiwan once again. Last June, Mr. Pottinger and Mr. Ivan Kanapathy came to Taiwan to launch their new book The Boiling Moat. During that visit, they also visited the Presidential Office. We held an extensive exchange of views on Taiwan-US relations and regional affairs right here in the Taiwan Heritage Room. Now, as we meet again eight months later, I am pleased to learn that Mr. Kanapathy is now serving on the White House National Security Council. The Mandarin translation of The Boiling Moat is also due to be released in Taiwan very soon. This book offers insightful observations from US experts regarding US-China-Taiwan relations and valuable advice for the strengthening of Taiwan’s national defense, security, and overall resilience. I am sure that Taiwanese readers will benefit greatly from it. I understand that this is Mr. Montgomery’s fourth visit to Taiwan and that he has long paid close attention to Taiwan-related issues. I look forward to an in-depth discussion with our two friends on the future direction of Taiwan-US relations and cooperation. Increased cooperation between authoritarian regimes is posing risks and challenges to the geopolitical landscape and regional security. One notion we all share is peace through strength. That is, only by bolstering our defense capabilities and fortifying our defenses can we demonstrate effective deterrence and maintain peace and stability across the Taiwan Strait and around the world. Moving forward, Taiwan will continue to enhance its self-defense capabilities. We also hope to strengthen the Taiwan-US partnership in such fields as security, trade and the economy, and energy. In addition, we will advance cooperation in critical and innovative technologies and jointly build secure and resilient non-red supply chains. This will ensure that Taiwan, the US, and democratic partners around the world maintain a technological lead. We believe that closer Taiwan-US exchanges and cooperation not only benefit national security and development but also align with the common economic interests of Taiwan and the US. I want to thank Mr. Pottinger and Mr. Montgomery once again for visiting and for continuing to advance Taiwan-US exchanges, demonstrating staunch support for Taiwan. Let us continue to work together to deepen Taiwan-US relations. I wish you a smooth and fruitful visit.  Mr. Pottinger then delivered remarks, first congratulating President Lai on his one-year election anniversary and on the state of the economy, which, he added, is doing quite well. Mentioning President Lai’s recent statement pledging to increase Taiwan’s defense budget to above 3 percent of GDP, Mr. Pottinger said he thinks that the benchmark is equal to what the US spends on its defense and that it is a good starting point for both countries to build deterrence. Echoing the president’s earlier remarks, Mr. Pottinger said that peace through strength is the right path for the US and for Taiwan right now at a moment when autocratic, aggressive governments are on the march. He then paraphrased the words of former US President George Washington in his first inaugural address, saying that the best way to keep the peace is to be prepared at all times for war, which captures the meaning of peace through strength. In closing, he said he looks forward to exchanging views with President Lai.
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2024-12-26
President Lai presides over second meeting of Whole-of-Society Defense Resilience Committee
On the afternoon of December 26, President Lai Ching-te presided over the second meeting of the Whole-of-Society Defense Resilience Committee. President Lai stated that the committee’s goal is to enhance overall resilience in terms of national defense, economic livelihoods, disaster prevention, and democracy through five key areas: civilian force training and utilization, strategic material preparation and critical supply distribution, energy and critical infrastructure operations and maintenance, social welfare, medical care, and evacuation facility readiness, and information, transportation, and financial network protection. That morning, he said, was the first time that central and local government officials, as well as civilian observers, gathered at the Presidential Office to conduct cross-disciplinary tabletop exercises, demonstrating cooperation between central and local governments to jointly enhance social resilience. President Lai also announced that the existing Wan An and Min An Exercises, which are air raid drills and disaster response drills, respectively, beginning from next year will be combined into the 2025 Urban Resilience Exercises, the nomenclature of which matches up with that of similar exercises carried out overseas. The exercises, he said, will strengthen the defensive mechanisms of the non-military sector, and verify the ability of civil defense and disaster preparedness systems to protect our nation’s people. The president emphasized that combining government and private-sector forces is the only way to strengthen Taiwan’s overall defense capabilities, jointly consolidate global democratic resilience, and maintain regional peace and stability. A translation of President Lai’s opening statement follows: Today, we are convening the second meeting of the Whole-of-Society Defense Resilience Committee, implementing the conclusions reached at the last meeting, conducting tabletop exercises, and verifying the preparedness of government agencies to address extreme situations. Looking back over the past year, circumstances at home and abroad have changed rapidly. Authoritarian states around the world continue to converge, threatening the rules-based international order, and they now present a collective challenge to the peace and stability of the entire first island chain. To address threats, whether natural disasters or ambitions for authoritarian expansion, we believe that as long as the government and all of society are prepared, we can respond. With determination, there is no need to worry. With confidence, our people can rest assured. This is the goal of whole-of-society defense resilience. Of course, these preparations are not easy. Taiwan’s society must race against time, and work together to build capabilities to respond to major disasters and threats, and deter enemy encroachment. Therefore, the goal of this committee is to formulate action plans through the five key areas: civilian force training and utilization, strategic material preparation and critical supply distribution, energy and critical infrastructure operations and maintenance, social welfare, medical care, and evacuation facility readiness, and information, transportation, and financial network protection, thereby verifying central and local government capacities to respond in times of disaster, and enhance overall resilience in terms of national defense, economic livelihoods, disaster prevention, and democracy. This morning at the Presidential Office, we conducted the first-ever cross-disciplinary tabletop exercises involving central and local government officials as well as civilian observers. Participating teams from central government departments were all led by deputy ministers, Tainan City Deputy Mayor Yeh Tse-shan (葉澤山) led a team, and Tainan Mayor Huang Wei-che (黃偉哲) also came to participate, demonstrating cooperation between central and local governments to jointly enhance social resilience. The exercises were based on Taiwan’s mature disaster prevention and relief system’s response to comprehensive threats. We had scenarios, but no scripts, so the participating units did not prepare notes in advance, but reacted on the spot. When presented with a problem, they proposed countermeasures, which is closer to a real crisis situation. To address the continued threat of authoritarian expansion to regional stability and order, in the first scenario we simulated that a high-intensity gray-zone operation occurred; for the second scenario, we simulated a state of being on the verge of conflict. The most important core objectives of the exercises were to ensure that people could carry on their daily lives and that society could function normally. I would like to thank our three deputy conveners for serving as exercise commanders, Minister of the Interior Liu Shyh-fang (劉世芳) and Minister without Portfolio of the Executive Yuan Chi Lien-cheng (季連成) for serving as deputy exercise commanders, and Deputy Secretary-General to the President Chang Tun-han (張惇涵) as well as National Security Council Deputy Secretary-General Lin Fei-fan (林飛帆) for serving as chief officials. I also want to thank all our advisors, committee members, and colleagues from government agencies at both the central and local levels for coming together to complete tabletop exercises aimed at testing out components of the five key areas. After conducting numerous exercises in the past, many government agencies improved their emergency response capabilities, and I want to recognize those achievements. However, I also want to emphasize that we must identify problems in our current systems, and then make improvements. Whether it be the central or the local level, we cannot just talk about the good things and sweep the unpleasant things under the rug. We have to rigorously ascertain numbers and make sure just how accurate the sources of our information are, because it is always a good thing when we discover problems in our exercises, and find places where improvements are needed. This means that our testing has achieved its purpose, and that there is much room for progress and improvement. I also want to report to you all that, over the past few years, due to the global pandemic and Russia’s invasion of Ukraine, countries throughout the world have been bolstering their defense resilience. NATO and the European Union, for example, have both adopted guidelines aimed at strengthening whole-of-society resilience. This shows that Taiwan is not a special case. The task of whole-of-society defense resilience is being addressed throughout the world. Taiwan’s ongoing efforts to strengthen its whole-of-society defense resilience is something the international community at large is wanting to see. This month I visited the Republic of the Marshall Islands, Tuvalu, and the Republic of Palau, all of which are Pacific allies of Taiwan, and I made transit stops in the United States islands of Hawaii and Guam. Friends in each of these places expressed firm support for Taiwan and repeatedly said they hope for peace and stability in the Taiwan Strait. We must continue taking action to respond to the international community’s support. Taiwan must have the capability to defend its own security. As president, I want to take this opportunity to emphasize to the international community that Taiwan is determined to defend regional peace and stability. We will accelerate the pace of efforts to build a more resilient Taiwan. I therefore wish to announce that our existing Wan An and Min An Exercises, which are air raid drills and disaster response drills, respectively, beginning from next year will be combined, and we will hold the 2025 Urban Resilience Exercises. This new nomenclature matches up with that of similar exercises carried out overseas, making it easier for others to understand the efforts that Taiwan is putting forth. In addition, the 2025 Urban Resilience Exercises will feature absolutely no reliance on military support, and will have a design that takes the latest international experiences into account. These resilience exercises will be distinct from the Han Kuang military exercises, and yet complementary at the same time. In other words, whole-of-society defense resilience must particularly strengthen the defensive mechanisms of the non-military sector, and must verify the ability of civil defense and disaster preparedness systems to protect our nation’s people. I want to emphasize once again that the more resilient we make Taiwan, like-minded nations around the world will be more willing to coordinate with us in responding to various challenges together. I realize that to defend democracy, we must gather together every bit of strength we have. The task of promoting whole-of-society defense resilience is a massive undertaking. The public sector must adopt a more open-minded attitude and be willing to tap into private-sector human resources, because combining government and private-sector forces is the only way to jointly respond to challenges arising under extreme conditions, and is the only way to strengthen Taiwan’s overall defense capabilities, jointly consolidate global democratic resilience, and maintain regional peace and stability. In just a few moments, Minister Liu will deliver a report on the progress of certain items listed in the first committee meeting, and Deputy Secretary-General Lin will deliver a report on the outcomes of the tabletop exercises held this morning. Next, let us engage in open discussions and examine and verify each component of the tabletop exercises, so that together we can improve whole-of-society defense resilience, make Taiwan more secure, and make the region more stable. Thank you. After listening to the report on the progress of certain items listed in the first committee meeting and the report on the outcomes of the tabletop exercises, President Lai exchanged views with the committee members regarding the content of the reports.123
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2024-11-30
Presidential Office thanks Biden administration for announcing its 18th military sale to Taiwan
On November 29 (US EST), the United States government announced that it had notified Congress of the sale to Taiwan of two military packages: a US$320 million sale of spare parts and support for F-16 aircraft and Active Electronically Scanned Array radar spare parts and support; and a US$65 million sale of Improved Mobile Subscriber Equipment Follow-on Support and related equipment. Presidential Office Spokesperson Karen Kuo (郭雅慧) stated that the Presidential Office is sincerely grateful to the US government for its unwavering commitment to continue to strengthen the cooperative partnership between Taiwan and the US and support Taiwan in enhancing self-defense capabilities in accordance with the Taiwan Relations Act and the Six Assurances.  Spokesperson Kuo stated that this marks the 18th military sale to Taiwan announced during the Biden administration since 2021, emphasizing that the deepening Taiwan-US security partnership is a critical cornerstone for peace and stability in the Indo-Pacific region. The spokesperson said that in the face of mounting security challenges in the region, Taiwan will continue to enhance self-defense capabilities and work alongside like-minded countries to jointly defend the values of freedom and democracy and ensure the peace and stability of the Indo-Pacific region.
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2024-10-26
Presidential Office thanks Biden administration for announcing its 17th military sale to Taiwan
On October 25 (US EST), the United States government announced that it had notified Congress of the US$1.988 billion sale to Taiwan of three military packages, including the National Advanced Surface-to-Air Missile System as well as L-band and non-L-band radar turnkey systems. Presidential Office Spokesperson Karen Kuo (郭雅慧) on October 26 stated that strengthening Taiwan’s self-defense capabilities is the foundation for maintaining regional stability. The spokesperson said that the Presidential Office is grateful to the US government for continuing to provide Taiwan with the weaponry it needs in accordance with the Taiwan Relations Act and the Six Assurances. Spokesperson Kuo stated that this marks the 17th military sale to Taiwan announced during the Biden administration since 2021, as well as the largest single military sale since President Biden took office, demonstrating the unwavering commitment of the US government to the security of Taiwan. She emphasized that Taiwan will continue to strengthen its self-defense capabilities as it works to maintain the rules-based international order, ensuring the peace, stability, and prosperity of the Indo-Pacific region.
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2025-04-06
President Lai delivers remarks on US tariff policy response
On April 6, President Lai Ching-te delivered recorded remarks regarding the impact of the 32 percent tariff that the United States government recently imposed on imports from Taiwan in the name of reciprocity. In his remarks, President Lai explained that the government will adopt five response strategies, including making every effort to improve reciprocal tariff rates through negotiations, adopting a support plan for affected domestic industries, adopting medium- and long-term economic development plans, forming new “Taiwan plus the US” arrangements, and launching industry listening tours. The president emphasized that as we face this latest challenge, the government and civil society will work hand in hand, and expressed hope that all parties, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. A translation of President Lai’s remarks follows: My fellow citizens, good evening. The US government recently announced higher tariffs on countries around the world in the name of reciprocity, including imposing a 32 percent tariff on imports from Taiwan. This is bound to have a major impact on our nation. Various countries have already responded, and some have even adopted retaliatory measures. Tremendous changes in the global economy are expected. Taiwan is an export-led economy, and in facing future challenges there will inevitably be difficulties, so we must proceed carefully to turn danger into safety. During this time, I want to express gratitude to all sectors of society for providing valuable opinions, which the government regards highly, and will use as a reference to make policy decisions.  However, if we calmly and carefully analyze Taiwan’s trade with the US, we find that last year Taiwan’s exports to the US were valued at US$111.4 billion, accounting for 23.4 percent of total export value, with the other 75-plus percent of products sold worldwide to countries other than the US. Of products sold to the US, competitive ICT products and electronic components accounted for 65.4 percent. This shows that Taiwan’s economy does still have considerable resilience. As long as our response strategies are appropriate, and the public and private sectors join forces, we can reduce impacts. Please do not panic. To address the reciprocal tariffs by the US, Taiwan has no plans to adopt retaliatory tariffs. There will be no change in corporate investment commitments to the US, as long as they are consistent with national interests. But we must ensure the US clearly understands Taiwan’s contributions to US economic development. More importantly, we must actively seek to understand changes in the global economic situation, strengthen Taiwan-US industry cooperation, elevate the status of Taiwan industries in global supply chains, and with safeguarding the continued development of Taiwan’s economy as our goal, adopt the following five strategies to respond. Strategy one: Make every effort to improve reciprocal tariff rates through negotiations using the following five methods:  1. Taiwan has already formed a negotiation team led by Vice Premier Cheng Li-chiun (鄭麗君). The team includes members from the National Security Council, the Office of Trade Negotiations, and relevant Executive Yuan ministries and agencies, as well as academia and industry. Like the US-Mexico-Canada free trade agreement, negotiations on tariffs can start from Taiwan-US bilateral zero-tariff treatment. 2. To expand purchases from the US and thereby reduce the trade deficit, the Executive Yuan has already completed an inventory regarding large-scale procurement plans for agricultural, industrial, petroleum, and natural gas products, and the Ministry of National Defense has also proposed a military procurement list. All procurement plans will be actively pursued. 3. Expand investments in the US. Taiwan’s cumulative investment in the US already exceeds US$100 billion, creating approximately 400,000 jobs. In the future, in addition to increased investment in the US by Taiwan Semiconductor Manufacturing Company, other industries such as electronics, ICT, petrochemicals, and natural gas can all increase their US investments, deepening Taiwan-US industry cooperation. Taiwan’s government has helped form a “Taiwan investment in the US” team, and hopes that the US will reciprocate by forming a “US investment in Taiwan” team to bring about closer Taiwan-US trade cooperation, jointly creating a future economic golden age.  4. We must eliminate non-tariff barriers to trade. Non-tariff barriers are an indicator by which the US assesses whether a trading partner is trading fairly with the US. Therefore, we will proactively resolve longstanding non-tariff barriers so that negotiations can proceed more smoothly. 5. We must resolve two issues that have been matters of longstanding concern to the US. One regards high-tech export controls, and the other regards illegal transshipment of dumped goods, otherwise referred to as “origin washing.” Strategy two: We must adopt a plan for supporting our industries. For industries that will be affected by the tariffs, and especially traditional industries as well as micro-, small-, and medium-sized enterprises, we will provide timely and needed support and assistance. Premier Cho Jung-tai (卓榮泰) and his administrative team recently announced a package of 20 specific measures designed to address nine areas. Moving forward, the support we provide to different industries will depend on how they are affected by the tariffs, will take into account the particular features of each industry, and will help each industry innovate, upgrade, and transform. Strategy three: We must adopt medium- and long-term economic development plans. At this point in time, our government must simultaneously adopt new strategies for economic and industrial development. This is also the fundamental path to solutions for future economic challenges. The government will proactively cooperate with friends and allies, develop a diverse range of markets, and achieve closer integration of entities in the upper, middle, and lower reaches of industrial supply chains. This course of action will make Taiwan’s industrial ecosystem more complete, and will help Taiwanese industries upgrade and transform. We must also make good use of the competitive advantages we possess in such areas as semiconductor manufacturing, integrated chip design, ICT, and smart manufacturing to build Taiwan into an AI island, and promote relevant applications for food, clothing, housing, and transportation, as well as military, security and surveillance, next-generation communications, and the medical and health and wellness industries as we advance toward a smarter, more sustainable, and more prosperous new Taiwan. Strategy four: “Taiwan plus one,” i.e., new “Taiwan plus the US” arrangements: While staying firmly rooted in Taiwan, our enterprises are expanding their global presence and marketing worldwide. This has been our national economic development strategy, and the most important aspect is maintaining a solid base here in Taiwan. We absolutely must maintain a solid footing, and cannot allow the present strife to cause us to waver. Therefore, our government will incentivize investments, carry out deregulation, and continue to improve Taiwan’s investment climate by actively resolving problems involving access to water, electricity, land, human resources, and professional talent. This will enable corporations to stay in Taiwan and continue investing here. In addition, we must also help the overseas manufacturing facilities of offshore Taiwanese businesses to make necessary adjustments to support our “Taiwan plus one” policy, in that our national economic development strategy will be adjusted as follows: to stay firmly rooted in Taiwan while expanding our global presence, strengthening US ties, and marketing worldwide. We intend to make use of the new state of supply chains to strengthen cooperation between Taiwanese and US industries, and gain further access to US markets. Strategy five: Launch industry listening tours: All industrial firms, regardless of sector or size, will be affected to some degree once the US reciprocal tariffs go into effect. The administrative teams led by myself and Premier Cho will hear out industry concerns so that we can quickly resolve problems and make sure policies meet actual needs. My fellow citizens, over the past half-century and more, Taiwan has been through two energy crises, the Asian financial crisis, the global financial crisis, and pandemics. We have been able to not only withstand one test after another, but even turn crises into opportunities. The Taiwanese economy has emerged from these crises stronger and more resilient than ever. As we face this latest challenge, the government and civil society will work hand in hand, and I hope that all parties in the legislature, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. Let us join together and give it our all. Thank you.
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