Office of the President Republic of China(Taiwan)

On April 10, an article penned by President Lai Ching-te entitled “Taiwan Has a Roadmap for Deeper US Trade Ties” was published by Bloomberg News, explaining to a global audience Taiwan’s strategy on trade with the United States, as well as how Taiwan will engage in dialogue with the aim of removing bilateral trade barriers, increasing investment between Taiwan and the US, and reducing tariffs to zero. The following is the full text of President Lai’s article: Last month, the first of Taiwan’s 66 new F-16Vs rolled off the assembly line in Greenville, South Carolina. Signed during President Donald Trump’s first term, the $8 billion deal stands as a testament to American ingenuity and leadership in advanced manufacturing. Beyond its economic impact – creating thousands of well-paying jobs across the US – it strengthens the foundations of peace and stability in the Indo-Pacific.  This deal is emblematic of the close interests shared between Taiwan and the US. Our bond is forged by an unwavering belief in freedom and liberty. For decades, our two countries have stood shoulder-to-shoulder in deterring communist expansionism. Even as Beijing intensifies its air force and naval exercises in our vicinity, we remain resolute. Taiwan will always be a bastion of democracy and peace in the region. This partnership extends well beyond the security realm. Though home to just 23 million people, Taiwan has in recent years become a significant investor in America. TSMC recently announced it will raise its total investment in the US to $165 billion – an initiative that will create 40,000 construction jobs and tens of thousands more in advanced chip manufacturing and R&D. This investment will bolster the emergence of a new high-tech cluster in Arizona. Taiwan is committed to strengthening bilateral cooperation in manufacturing and innovation. As a trade-dependent economy, our long-term success is built on trade relationships that are fair, reciprocal and mutually beneficial. Encouraging Taiwanese businesses to expand their global footprint, particularly in the US, is a vital part of this strategy. Deepening commercial ties between Taiwanese and American firms is another. These core principles will guide our response to President Trump’s reciprocal tariffs. First, we will seek to restart trade negotiations with a common objective of reducing all tariffs between Taiwan and the US. While Taiwan already maintains low tariffs, with an average nominal rate of 6%, we are willing to further cut this rate to zero on the basis of reciprocity with the US. By removing the last vestiges to free and fair trade, we seek to encourage greater trade and investment flows between our two countries. Second, Taiwan will rapidly expand procurement of American goods. Over the past five years, rising demand for semiconductors and AI-related components has increased our trade surplus. In response to these market trends, Taiwan will seek to narrow the trade imbalance through the procurement of energy, agriculture and other industrial goods from the US. These efforts will create thousands of new jobs across multiple sectors.  We’ll also pursue additional arms procurements that are vital to our self-defense and contribute to peace and stability over the Taiwan Strait. During President Trump’s first term, we secured $18 billion in arms deals, including advanced fighter jets, tanks and anti-ship missiles. Future purchases, which are not reflected in trade balances, build on our economic and security partnership while being essential to Taiwan’s “Peace Through Strength” approach. Third, new investments will be made across the US. Already, Taiwanese firms support 400,000 jobs throughout all 50 states. Beyond TSMC, we also see emerging opportunities in electronics, ICT, energy and petrochemicals. We will establish a cross-agency “US Investment Team” to support bilateral trade and investment – and we hope that efforts will be reciprocated by the Trump administration. Fourth, we are committed to removing non-tariff trade barriers. Taiwan will take concrete steps to resolve persistent issues that have long impeded trade negotiations. And finally, we will strongly address US concerns over export controls and improper transshipment of low-cost goods through Taiwan. These steps form the basis of a comprehensive roadmap for how Taiwan will navigate the shifting trade landscape, transforming challenges in the Taiwan-US economic relationship into new opportunities for growth, resilience and strategic alignment. At a time of growing global uncertainty, underpinned by growing Chinese assertiveness, closer trade ties are more than sound economics; they are a critical pillar of regional security. Our approach is long-term and principled, grounded in a lasting commitment to our friendship with the US, a firm belief in the benefits of fair and reciprocal trade, and an unwavering dedication to peace and stability across the Taiwan Strait. We are confident that our shared economic and security interests will not only overcome turbulence in the international trade environment – they will define the future of a free and open Indo-Pacific.

On the afternoon of November 18, President Lai Ching-te attended the opening of the 2024 European Union Investment Forum. In remarks at the event, President Lai stated that as we face the threat of expanding authoritarianism, Taiwan and the EU must form a strong democratic umbrella, and that, more than ever, we must come together to build supply chains for global democracies that are more secure and resilient. The president expressed hope for the signing of an economic partnership agreement (EPA) between Taiwan and the EU, which would make both our economies more resilient and secure and ensure the stable operation of global supply chains. He also expressed hope that Taiwan and Europe will continue to build on our bilateral ties and make every moment the best moment for Taiwan-EU relations.  A transcript of President Lai’s remarks follows: I am honored to be here today with all of you, to witness the five-year milestone of the EU Investment Forum, an important platform for envisioning the future of collaboration between Taiwan and the EU. The forum has boosted Taiwanese investment in Europe, while helping the EU to remain Taiwan’s largest source of foreign investment over several years. I would especially like to thank the EETO [European Economic and Trade Office], our Ministries of Foreign Affairs and Economic Affairs, and all the co-organizers for their combined efforts. I am sure that today’s forum will enrich the already fruitful cooperation between Taiwan and the EU. Taiwan and the EU share the values of freedom and democracy, and each of us is an indispensable strategic partner. As we face the threat of expanding authoritarianism, Taiwan and the EU must form a strong democratic umbrella. And, more than ever, we must come together to build supply chains for global democracies that are more secure and resilient. Building on this solid foundation, Taiwan will work to further expand cooperation with the EU. In recent years, we have promoted the Taiwan-Europe Connectivity Initiative, Central and Eastern Europe Credit Fund, and cooperation in the semiconductor industry. Each of these major policies reinforces the goals of the EU Investment Forum, and brings Taiwan and the EU into a much deeper partnership in high tech, green energy, and other sectors. Last year, Taiwan initiated 22 new investment projects in the EU, totaling over US$4.9 billion – an impressive growth of 750 percent from 2022. We see many big-name Taiwanese enterprises expanding their presence in the EU market. And we hope to see many more European enterprises do the same by investing in Taiwan, which will benefit both of us, as we leverage our industrial strengths. Looking to the future, Taiwan hopes to take an innovative approach toward the signing of an economic partnership agreement with the EU. Such an agreement would deepen our mutually beneficial partnership and set a sound institutional basis for further cooperation. The EU released its European Economic Security Strategy last year, followed by a set of five initiatives this year to strengthen economic security. Both specifically emphasize “partnering with the broadest possible range of countries” to advance economic security interests. Given this direction of policy, cooperation between Taiwan and the EU is essential. I believe that through an EPA, Taiwan and the EU can open up cooperation in fields including semiconductors, AI, digital tech, environmental protection, green energy, and more. This would not only make both our economies more resilient and secure, but also ensure the stable operation of global supply chains. We share a common mission – to provide investment-friendly environments for our enterprises. We also share a common goal – to advance democracy, peace, and prosperity around the world. I want to take this opportunity to express my appreciation to the EU and European nations for taking concrete action to safeguard freedom of navigation in the Taiwan Strait. I also want to thank the European External Action Service for the statements it issued when China launched military exercises this past May and October. These statements reaffirmed the Service’s unwavering stance on supporting peace and stability in the Taiwan Strait. While the EU is actively engaged in Indo-Pacific affairs, Taiwan is doing its utmost to protect democratic values. We will continue to contribute humanitarian aid to Ukraine, and work hand in hand with European nations for mutual prosperity and growth. To close, I want to thank the EETO once again for the invitation. Let’s continue to build on the ties between Taiwan and Europe, and make every moment the best moment for Taiwan-EU relations. I wish you all a very successful forum. Thank you. Also in attendance at the event were EETO Head Lutz Güllner, European Commission Deputy Director-General for Trade Maria Martin-Prat, and members of the foreign diplomatic corps in Taiwan.

On the evening of November 12, ahead of his departure for Peru to attend the 2024 APEC Economic Leaders’ Meeting (AELM) from November 15 to 16 in Lima, APEC Leader’s Representative Lin Hsin-i (林信義) delivered remarks on his upcoming trip. Leader’s Representative Lin said that he hopes to convey to leaders’ representatives and delegations of other APEC economies that Taiwan is an important, stable, and indispensable force for the economic prosperity of the region. He also expressed confidence in his and his fellow delegation members’ ability to fulfill their mission. In remarks, Leader’s Representative Lin first thanked everyone for making the trip to see him and his delegation off, and he thanked the members of the media for their concern and support. He said it is a great honor to represent the president in attending the AELM in Lima, adding that government agencies have practically been working around the clock in preparation for the trip. Over the past year, he said, senior officials, ministers, and people in business and industry have been working in a spirit of solidarity, attending meeting after meeting, accumulating an impressive body of achievements. Therefore, he underlined, he and his fellow delegation members are quite confident in their ability to fulfill their mission. Leader’s Representative Lin mentioned that an especially large number of topics will be addressed in this year’s AELM proceedings, including inclusive digital transformation; twin green and digital transition; reduction of food loss and waste; improvement of human resource organizations and human capital; competitiveness of micro-, small- and medium-sized enterprises in the digital age; and increased participation of women’s groups and disadvantaged groups in economic development. As Taiwan is especially strong in the fields of digital medicine, agriculture, and small- and medium-sized enterprises, he said, the delegation will take the opportunity in AELM meetings to actively familiarize the leaders’ representatives and delegations of other APEC economies with Taiwan’s efforts, achievements, and contributions, so that everyone can understand Taiwan as an important, stable, and indispensable force for the economic prosperity of the region. Leader’s Representative Lin once again thanked everyone for coming to show support for the delegation, which was greatly meaningful to them. He then wished everyone good health and happiness.

On the morning of November 7, President Lai Ching-te attended a press conference before Taiwan’s delegation departs for the 2024 APEC Economic Leaders’ Meeting (AELM). In remarks, President Lai thanked Senior Advisor to the President Lin Hsin-i (林信義) for acting as our leader’s representative to this year’s meeting. President Lai remarked that the theme for APEC 2024 is Empower, Include, Grow. He expressed hope that Senior Advisor Lin and the members of the delegation will convey three major propositions during the meeting: that Taiwan is actively contributing to the international community, supports a fairer and more inclusive international trade order, and is willing to promote the development of digital trade among other economies. The president emphasized that Taiwan has the capabilities and is more than willing to promote digital trade among other economies and begin the relevant cooperation. He expressed confidence that given Senior Advisor Lin’s professional expertise and experience, he will accurately convey Taiwan’s voice and perspectives to the other APEC member economies. A translation of President Lai’s remarks follows: This year’s AELM will kick off on November 15 in Lima, Peru. I want to offer special thanks to Senior Advisor Lin for accepting my invitation to serve as our country’s APEC leader’s representative, and represent me at this year’s meeting. Senior Advisor Lin has worked in both the public and private sectors, possesses extensive industry experience, and has successively served in important positions including minister of economic affairs, vice premier, and minister of the Council for Economic Planning and Development (now National Development Council) of the Executive Yuan. He not only combines practical experience with a high degree of professionalism, but also continues to serve as one of my senior advisors, an advisor on the Executive Yuan’s Economic Development Commission, and chairman of Taiwania Capital Management Corporation, contributing his outstanding expertise to the nation. In 2000 and 2001, Senior Advisor Lin represented the nation at the APEC Annual Ministerial Meeting (AMM). In 2005, he also served as leader’s representative and led a delegation to the AELM hosted by Korea, and successfully accomplished his mission. I am confident that given Senior Advisor Lin’s professional expertise and extensive experience, as well as his past participation in APEC-related meetings, he will accurately convey Taiwan’s voice and perspectives to the other APEC member economies. APEC is the most important forum in the Asia-Pacific region for multilateral economic and trade cooperation. Its purpose is to spur regional economic integration, growth, and development through dialogue and negotiation. The theme for APEC 2024 is Empower, Include, Grow. On that point, I have asked Senior Advisor Lin and the members of the delegation to convey Taiwan’s three major propositions during the meeting: First, Taiwan is actively contributing to the international community. I have asked Senior Advisor Lin and our AMM and APEC Business Advisory Council (ABAC) representatives to broadly raise awareness of Taiwan’s positive contributions to APEC, and in particular, give the various member economies a clear understanding of Taiwan’s developmental achievements and contributions over the years in fields including AI and digital medicine. Taiwan will continue to make such contributions. Second, Taiwan supports a fairer and more inclusive international trade order. APEC has long been concerned about the development of global free trade, including its impact on the rights of disadvantaged groups, and the hardships sustained by various countries due to unfair trade practices. For many years, APEC has continuously worked to promote fair and inclusive trade, and I have asked the delegation to convey Taiwan’s support and commitment to all the member economies. Taiwan is willing to cooperate with our APEC partners to create a fairer, more inclusive international trade order. Third, Taiwan is willing to promote the development of digital trade among other economies. Among the current member economies, digital trade has already become an important component of overall trade, and we are confident that Taiwan’s digital capabilities can spur global economic development. I hope that our delegation will take advantage of this opportunity to communicate with representatives from other member economies and show them that Taiwan has the capabilities and is more than willing to promote digital trade among other economies and begin the relevant cooperation. In closing, I would like to thank Senior Advisor Lin and all of the members of the delegation once again. I am confident that under Senior Advisor Lin’s leadership, the delegation will successfully complete its mission, and I wish you all a smooth journey. Thank you. Senior Advisor Lin then delivered remarks, first stating that he is very honored to be entrusted by the president with representing him at this year’s AELM to be held in Peru. Regarding the tasks and instructions laid out by President Lai, Senior Advisor Lin said that he and the entire delegation will spare no effort, and will not let down the people of Taiwan. Senior Advisor Lin indicated that with the current international economic landscape changing rapidly, alongside geopolitical changes, Taiwan is presented with an abundance of opportunities on the international economic stage, yet many challenges as well. He said that after accepting this important mission, he heard briefings from across government agencies in the limited time that was available and thoroughly read information concerning the meeting, and that the staff diligently made the best possible preparations. All administrative agencies worked together seamlessly under the coordination of the National Security Council (NSC), he said, which fills him with confidence. Senior Advisor Lin remarked that Taiwan has followed APEC’s themes for many years, promoting many initiatives which have garnered significant results and widespread acclaim. Particularly in recent years, he said, Taiwan has been promoting successful digital health initiatives which have made other economies aware of our proud efforts in the fields of public health and digitalization, as well as our substantial contributions to APEC. Senior Advisor Lin said that the delegation, in keeping with this year’s theme of Empower, Include, Grow, will share with the participating economies Taiwan’s own experiences in the economic empowerment of small- and medium-sized enterprises in addition to women, indigenous peoples, and economically disadvantaged groups. He said that they will also relate our efforts in agricultural technology for reducing food loss and waste as well as our actions toward net-zero transition. Such sharing, he said, will help the economies understand public-private partnership in Taiwan. It will also show how Taiwan can use its strengths in digital technology to contribute to APEC, he added, while also advancing economic growth in the Asia-Pacific region that is fairer, more inclusive, and more sustainable, contributing positive energy to the region. In closing, Senior Advisor Lin emphasized that he will use this opportunity to conduct exchanges with other leader’s representatives and convey Taiwan’s willingness to uphold the spirit of mutual assistance, mutual benefits, and reciprocity with the international community as well as to contribute to the peaceful and stable development of the Asia-Pacific region. This, he noted, will demonstrate that Taiwan is a good, reliable, and responsible member of the international community and garner more support from our friends around the world. He said that the delegation will commit all their efforts to completing the mission charged to them by President Lai. This year’s delegation also includes daughter of the leader’s representative Lin Wen-hsien (林玟萱), Minister without Portfolio of the Executive Yuan and National Development Council Minister Liu Chin-ching (劉鏡清), Minister without Portfolio of the Executive Yuan Yang Jen-ni (楊珍妮), NSC Deputy Secretary-General Hsu Szu-chien (徐斯儉), Ministry of Foreign Affairs Department of International Organizations Director General Jonathan C.Y. Sun (孫儉元), Acer Chairman Jason Chen (陳俊聖), Taiwan Mobile President Jamie Lin (林之晨), and Quanta Computer Chief Technology Officer Ted Chang (張嘉淵), the latter three serving as ABAC representatives. This year’s AELM will be held from November 15 to 16 in Lima, Peru. In addition to attending the AELM, Senior Advisor Lin, as our leader’s representative, alongside ABAC representatives Chairman Chen, President Lin, and CTO Chang, will engage in discussion with APEC member economy representatives and exchange views extensively on issues including regional economic development. On November 14, the host will convene the AMM, to which Minister Liu and Minister Yang will lead delegations to attend.

On the morning of July 12, President Lai Ching-te met with a delegation from Micron Technology. In remarks, President Lai thanked Micron for its long-term investment in Taiwan, and for continuously advancing dynamic random-access memory (DRAM) technology in Taiwan. The president noted that the development and mass production of advanced DRAM technology has accelerated, spurring supply chain localization. He said that here in Taiwan, beyond offering high-efficiency production, our government also attaches importance to businesses’ needs, and will work to create a friendly living environment for international talent. President Lai expressed hope that Micron will continue to expand its research and development capacity here, working with local supply chain partners to seize AI business opportunities. A translation of President Lai’s remarks follows: First, I would like to welcome you all for this visit, which demonstrates trust and support for Taiwan. As we look toward our future, we know that semiconductors will be indispensable, and the AI wave has already swept in. Amidst this wave, Micron, as a major international firm, certainly plays an indispensable role. I would like to thank Micron for its long-term investment in Taiwan, and for continuously advancing DRAM technology in Taiwan. Last year, we witnessed the opening of a new Micron facility in Taichung. This accelerated the development and mass production of advanced DRAM technology, spurring supply chain localization. With the help of Micron working with us side by side, Taiwan’s semiconductor industry has secured a pivotal global role. Moving forward, our government will continue developing the semiconductor industry and accelerate Taiwan’s transformation into an AI island. Major chip designers such as AMD, Nvidia, and Infineon have now all announced plans to set up research and development centers in Taiwan. We also welcome further cooperation with Micron. High-bandwidth memory (HBM), for example, is crucial for AI applications, and is already being manufactured by Micron in Taiwan. I am confident that with Micron continuing to expand production in Taiwan, as well as collaborating on research and development with Taiwanese chip designers and chipmakers, we can maintain our leading position in AI development for our mutual benefit. Here in Taiwan, beyond offering high-efficiency production, our government also attaches importance to businesses’ needs. For example, we meticulously review power supply and demand on a rolling basis to ensure stable accessibility. We will also take action to relax regulations and promote programs targeting international business talent to continue expanding global recruitment. We will work to create a friendly living environment for international talent, and meet business demand. In closing, I would once again like to welcome you to Taiwan. We hope that Micron will continue to expand its research and development capacity here, working with local supply chain partners to seize AI business opportunities. I wish everyone a successful and productive visit.

In a recent interview with Japan’s Nikkei, President Lai Ching-te responded to questions regarding Taiwan-Japan and Taiwan-United States relations, cross-strait relations, the semiconductor industry, and the international economic and trade landscape. The interview was published by Nikkei on May 13. President Lai indicated that Nikkei, Inc. is a global news organization that has received significant recognition both domestically and internationally, and that he is deeply honored to be interviewed by Nikkei and grateful for their invitation. The president said that he would like to take this rare opportunity to thank Japan’s government, National Diet, society, and public for their longstanding support for Taiwan. Noting that current Prime Minister Ishiba Shigeru and former Prime Ministers Abe Shinzo, Suga Yoshihide, and Kishida Fumio have all strongly supported Taiwan, he said that the peoples of Taiwan and Japan also have a deep mutual affection, and that through the interview, he hopes to enhance the bilateral relationship between Taiwan and Japan, deepen the affection between our peoples, and foster more future cooperation to promote prosperity and development in both countries. Following is the text of the questions and the president’s responses: Nikkei: What is your personal view regarding the free trade system and the recent tariff war? President Lai: Over the past few decades, the free economy headed by the Western world and led by the US has brought economic prosperity and political stability to Taiwan and Japan. At the same time, we have also learned or followed many Western values. I believe that Taiwan and Japan are exemplary students, but some countries are not. Therefore, the biggest crisis right now is China, which exploits the free trade system to engage in plagiarism and counterfeiting, infringe on intellectual property rights, and even provide massive government subsidies that facilitate the dumping of low-priced goods worldwide, which has a major impact on many countries including Japan and Taiwan. If this kind of unfair trade is not resolved, the stable societies and economic prosperity we have painstakingly built over decades, as well as some of the values we pursue, could be destroyed. I therefore think it is worthwhile for us to observe the recent willingness of the US to address unfair trade, and if necessary, offer assistance. Our national strategic plan for Taiwanese industries is for them to be rooted in Taiwan while expanding their global presence and marketing worldwide. Therefore, while the 32 percent tariff increase imposed by the US on Taiwan is indeed a major challenge, we are willing to address it seriously and find opportunities within that challenge, making Taiwan’s strategic plan for industry even more comprehensive. Nikkei: What is your view on Taiwan’s trade arrangements? President Lai: In 2010 China accounted for 83.8 percent of Taiwan’s outbound investment, but last year it accounted for only 7.5 percent. In 2020, 43.9 percent of Taiwan’s exports went to China, but that figure dropped to 31.7 percent in 2024. We have systematically transferred investments from Taiwanese enterprises to Japan, Southeast Asia, Europe, and the US. Therefore, last year Taiwan’s largest outbound investment was in the US, accounting for roughly 40 percent of the total. Nevertheless, only 23.4 percent of Taiwanese products were sold to the US, with 76.6 percent sold to places other than the US.  In other words, we don’t want to put all our eggs in one basket, and hope to establish a global presence. Under these circumstances, Taiwan is very eager to cooperate with Japan. At this moment, the Indo-Pacific and international community really need Japan’s leadership, especially to make the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) excel in its functions. We also ask Japan to support Taiwan’s CPTPP accession. Taiwan hopes to sign an Economic Partnership Agreement (EPA) with Japan, to build closer ties in economic trade and promote further investment. We also hope to strengthen relations with the European Union, and even other regions. Currently, we are proposing an initiative on global semiconductor supply chain partnerships for democracies, because the semiconductor industry is an ecosystem. For example, Japan has materials, equipment, and technology; the US has IC design and marketing; Taiwan has production and manufacturing; and the Netherlands excels in equipment. We therefore hope to leverage Taiwan’s advantages in production and manufacturing to connect the democratic community and establish a global non-red supply chain for semiconductors, ensuring further world prosperity and development in the future, and ensuring that free trade can continue to function without being affected by dumping, which would undermine future prosperity and development. We want industries to expand their global presence and market internationally while staying rooted here in Taiwan. Having industries rooted in Taiwan involves promoting pay raises for employees, tax cuts, and deregulation, as well as promoting enterprise investment tax credits. We have also proposed Three Major Programs for Investing in Taiwan for Taiwanese enterprises. We are actively resolving issues regarding access to water, electricity, land, human resources, and professional talent so that the business community can return to Taiwan to invest, or enterprises in Taiwan can increase their investments. We are also actively signing bilateral investment agreements with friends and allies so that when our companies invest and expand their presence abroad, their rights and interests as investors are ensured.  Additionally, as I just mentioned, we hope to sign an EPA with Japan, similar to the Taiwan-US Initiative on 21st-Century Trade and the Economic Prosperity Partnership Dialogue, or the Enhanced Trade Partnership arrangement with the United Kingdom, or similar agreements or memorandums of understanding with Canada and Australia that allow Taiwanese products to be marketed worldwide. Those are our overall arrangements. Looking at the history of Taiwan’s industrial development, of course it began in Taiwan, and then moved west to China and south to Southeast Asia. We hope to take this opportunity to strengthen cooperation with Japan to the north, across the Pacific Ocean to the east, and develop the North American market, making Taiwan’s industries even stronger. In other words, while we see the current reciprocal tariffs imposed by the US as a kind of challenge, we also view these changes positively. Nikkei: Due to pressure from China, it is difficult for Taiwan to participate in international frameworks such as the CPTPP or sign an EPA with Japan. What is your view on this situation? President Lai: The key point is what kind of attitude we should adopt in viewing China’s acts of oppression. If we act based on our belief in free trade, or on the universal values we pursue – democracy, freedom, and respect for human rights – and also on the understanding that a bilateral trade agreement between Taiwan and Japan would contribute to the economic prosperity and development of both countries, or that Taiwan’s accession to the CPTPP would benefit progress and prosperity in the Indo-Pacific region, then I personally hope that our friends and allies will strongly support us. Nikkei: Regarding the Trump administration’s “reciprocal tariff” policy and the possibility of taxing semiconductors, how do you interpret their intentions? How does Taiwan plan to respond? President Lai: Since President Trump took office, I have paid close attention to interviews with both him and his staff. Several of his main intentions are: First, he wants to address the US fiscal situation. For example, while the US GDP is about US$29 trillion annually, its national debt stands at US$36 trillion, which is roughly 124 percent of GDP. Second, annual government spending exceeds US$6.5 trillion, but revenues are only around US$4.5 trillion, resulting in a nearly US$2 trillion deficit each year, about 7 percent of GDP. Third, the US pays nearly US$1.2 trillion in interest annually, which exceeds the US$1 trillion defense budget and accounts for more than 3 percent of GDP. Fourth, he still wants to implement tax cuts, aiming to reduce taxes for 85 percent of Americans. This would cost between US$500 billion and US$1 trillion. These points illustrate his first goal: solving the fiscal problem. Second, the US feels the threat of China and believes that reindustrialization is essential. Without reindustrialization, the US risks a growing gap in industrial capacity compared to China. Third, in this era of global smart technology, President Trump wants to lead the nation to become a world center of AI. Fourth, he aims to ensure world peace and prevent future wars. So, if you ask me what the US seeks to achieve, I would say these four areas form the core of its intentions. That is why President Trump has raised tariffs, demanded that trading partners purchase more American goods, and encouraged friendly and allied nations to invest in the US, all in order to achieve these goals. The 32 percent reciprocal tariff poses a critical challenge for Taiwan, and we must treat it seriously. Our approach is not confrontation, but negotiation to reduce tariffs. We have also agreed to measures such as procurement, investment, resolving non-tariff trade barriers, and addressing origin washing in order to effectively reduce the trade deficit between Taiwan and the US. Of course, through this negotiation process, we also hope to turn challenges into opportunities. First, we aim to start negotiations from the proposal of zero tariffs and seek to establish a bilateral trade agreement with the US. Second, we hope to support US reindustrialization and its aim to become a world AI hub through investment, while simultaneously upgrading and transforming Taiwan’s industries. This would help further integrate Taiwan’s industries into the US economic structure, ensuring Taiwan’s long-term development.  As I have repeatedly emphasized, Taiwan’s national industrial strategy is for industries to stay firmly rooted in Taiwan while expanding their global presence and marketing worldwide. We have gone from moving westward across the Taiwan Strait, to shifting southbound, to working closer northward with Japan, and now the time is ripe for us to expand eastward by investing in North America. In other words, while we take this challenge seriously to protect national interests and ensure that no industry is sacrificed, we also hope these negotiations will lead to deeper Taiwan-US trade relations through Taiwanese investment in the US. These are our expectations. Naturally, the reciprocal tariffs imposed by the US will have an impact on Taiwanese industries. In response, the Taiwanese government has already proposed support measures for affected industries totaling NT$93 billion. In addition, we have outlined broader needs for Taiwan’s long-term development, which will be covered by a special budget proposal of NT$410 billion. This has already been approved by the Executive Yuan and will be submitted to the Legislative Yuan for review. This special budget proposal addresses four main areas: supporting industries, stabilizing employment, protecting people’s livelihoods, and enhancing resilience. As for tariffs on semiconductors, Taiwan Semiconductor Manufacturing Company (TSMC) has committed to investing in the US at the request of its customers. I believe TSMC’s industry chain will follow suit. These are concrete actions that are unrelated to tariffs. However, if the US were to invoke Section 232 and impose tariffs on semiconductors or related industries, it would discourage Taiwanese semiconductor and ICT investments in the US. We will make this position clear to the US going forward. Among Taiwan’s exports to the US, there are two main categories: ICT products and electronic components, which together account for 65.4 percent. These are essential to the US, unlike final goods such as cups, tables, or mattresses. What Taiwan sells to the US are the technological products required by AI designers like NVIDIA, AMD, Amazon, Google, and Apple. Therefore, we will make sure the US understands clearly that we are not exporting end products, but the high-tech components necessary for the US to reindustrialize and become a global AI center. Furthermore, Taiwan is also willing to increase its defense budget and military procurement. We are committed to defending ourselves and are strongly willing to cooperate with friends and allies to ensure regional peace and stability. This is also something President Trump hopes to see. Nikkei: Could TSMC’s fabs overseas weaken Taiwan’s strategic position as a key hub for semiconductor manufacturing? And could that then give other countries fewer incentives to protect Taiwan? President Lai: Political leaders around the world including Japan’s Prime Minister Ishiba and former Prime Ministers Abe, Suga, and Kishida have emphasized, at the G7 and other major international fora, that peace and stability in the Taiwan Strait are essential for global security and prosperity. In other words, the international community cares about Taiwan and supports peace and stability in the Taiwan Strait because Taiwan is located in the first island chain in the Indo-Pacific, directly facing China. If Taiwan is not protected, China’s expansionist ambitions will certainly grow, which would impact the current rules-based international order. Thus, the international community willingly cares about Taiwan and supports stability in the Taiwan Strait. That is the reason, and it has no direct connection with TSMC. After all, TSMC has not made investments in that many countries. That point, I think, is clear.  TSMC’s investments in Japan, Europe, and the US are all natural, normal economic and investment activities. Taiwan is a democratic country whose society is based on the rule of law, so when Taiwanese companies need to invest around the world for business needs, the government will support those investments in principle so long as they do not harm national interests. After TSMC Chairman C.C. Wei (魏哲家) held a press conference with President Trump to announce the investment in the US, he returned to Taiwan to hold a press conference with me here at the Presidential Office, where he explained to the Taiwanese public that TSMC’s R&D center will remain in Taiwan and that the facilities it has already committed to investing in here will not change and will not be affected. So, to put it another way, TSMC will not be weakened by its investment in the US. I want to emphasize this once more: Taiwan has strengths in semiconductor manufacturing, and Taiwan is very willing to work alongside other democratic countries to promote the next stage of global prosperity and development. Nikkei: It feels as though we are returning to what was previously called the Cold War, with two opposing blocs – East and West – facing off again. Between the US and China, which side should we choose? President Lai: Some experts and scholars describe the current situation as entering a new Cold War era between democratic and authoritarian camps. Others assert that the war has already begun, including information warfare, economic and trade wars, and the ongoing wars in Europe – the Russo-Ukrainian War – and the Middle East, and the Israel-Hamas conflict. These are all matters experts have cautioned about. I am not a historian, so I will not attempt to define today’s political situation from an academic standpoint. However, I believe that every country has a choice. That is to say, Taiwan, Japan, or any other nation does not necessarily have to choose between the US and China. What we are deciding is whether our country will maintain a democratic constitutional system or regress into an authoritarian regime. This is essentially a choice of values – not merely a choice between two major powers. Taiwan’s situation is different from other countries because we face a direct threat from China. We have experienced military conflicts such as the August 23 Artillery Battle and the Battle of Guningtou – actual wars between the Republic of China and the People’s Republic of China. China’s ambition to annex Taiwan has never wavered. Today, China’s political and military intimidation, as well as internal united front infiltration, are growing increasingly intense. Therefore, to defend democracy and sovereignty, protect our free and democratic system, and ensure the safety of our people’s lives and property, Taiwan’s choice is clear. China’s military exercises are not limited to the Taiwan Strait, and include the East China Sea, South China Sea, and even the Sea of Japan, as well as areas around Korea and Australia. Taiwan, Japan, Australia, and the Philippines are all democratic nations. Taiwan’s choice is clear, and I believe Japan also has no other choice. We are all democratic countries whose people have long pursued the universal values of democracy, freedom, and respect for human rights. That is what is most important. Nikkei: As tensions between the US and China intensify, what roles can Taiwan and Japan play? President Lai: In my view, Japan is a powerful nation. I sincerely hope that Japan can take a leading role amid these changes in the international landscape. I believe that countries in the Indo-Pacific region are also willing to respond. I think there are several areas where we can work together: first, democracy and peace; second, innovation and prosperity; and third, justice and sustainability. In the face of authoritarian threats, we should let peace be our beacon and democracy our compass as we respond to the challenges posed by authoritarian states. Second, as the world enters an era characterized by the comprehensive adoption of smart technologies, Japan and Taiwan should collaborate in the field of innovation to further drive regional prosperity and development. Third is justice and sustainability. Because international society still has many issues that need to be resolved, Taiwan and Japan can cooperate for the public good, helping countries in need around the world, and cooperating to address climate change and achieve net-zero transition by 2050. Nikkei: Do you hope that the US will continue to be a leader in the liberal democratic system? President Lai: Although the US severed diplomatic ties with the Republic of China, for the past few decades it has assisted Taiwan in various areas such as national defense, security, and countering threats from China, based on the Taiwan Relations Act and the Six Assurances. Taiwan has also benefited, directly and indirectly, in terms of politics, democracy, and economic prosperity thanks to the US. Therefore, Taiwan naturally hopes that the US remains strong and continues to lead the world. When the US encounters difficulties, whether financial difficulties, reindustrialization issues, or becoming a global center for AI, and hopes to receive support from its friends and allies to jointly safeguard regional peace and stability, Taiwan is willing to stand together for a common cause. If the US remains strong, that helps Taiwan, the Indo-Pacific region, and the world as a whole. The vital role of the US on the global stage has not changed. However, after decades of shouldering global responsibilities, it has encountered some issues. Now, it has to make adjustments, and I firmly believe it will do so swiftly, and quickly resume its leadership role in the world. Nikkei: I remember you said during your election campaign that you would like to invite China’s President Xi Jinping for bubble tea. Have you changed your mind? President Lai: Taiwan is a peace-loving country, and Taiwanese society is inherently kind. Therefore, we hope to get along peacefully with China, living in peace and mutual prosperity. So, during my term as vice president, I was expressing the goodwill of Taiwanese society. Of course, I understand that China’s President Xi would have certain difficulties in accepting this. However, I must emphasize that the goodwill of Taiwanese society has always existed. If China reflects on the past two or three decades, it will see that its economy was able to develop with Taiwan as its largest foreign investor. Every year, 1 to 2 million Taiwanese were starting businesses or investing in China, creating numerous job opportunities and stabilizing Chinese society. While many Taiwanese businesses have profited, Chinese society has benefited even more. In addition, every time a natural disaster occurs, if China is in need, Taiwanese always offer donations. Therefore, I hope that China can face the reality of the Republic of China’s existence, and understand that the people of Taiwan hope to continue living free and democratic lives with respect for human rights. I also hope China can pay attention to the goodwill of Taiwanese society. We have not abandoned the notion that as long as there is parity, dignity, exchange, and cooperation, the goodwill of choosing dialogue over confrontation and exchange over containment will always exist. Nikkei: What is your view on the national security reforms in response to China’s espionage activities and infiltration attempts? President Lai: China’s united front infiltration activities in Taiwan are indeed very serious. China’s ambitions to annex Taiwan rely not only on the use of political and military intimidation, but also on its long-term united front and infiltration activities in Taiwanese society. Recently, the Taiwan High Prosecutors Office of the Ministry of Justice prosecuted 64 spies, which is three times the number in 2021. In addition to active-duty military personnel, many retired military personnel were also indicted. Moreover, Taiwan also has the Chinese Unification Promotion Party, which has a background in organized crime, Rehabilitation Alliance Party, which was established by retired military personnel, and Republic of China Taiwan Military Government, which is also composed of retired generals. These are all China’s front organizations, and they plan one day to engage in collaboration within Taiwan. This shows the seriousness of China’s infiltration in Taiwan. Therefore, in the recent past I convened a high-level national security meeting and proposed 17 response strategies across five areas. The five areas include the following: first, to address China’s threat to Taiwan’s sovereignty; second, to respond to the threat of China’s obscuring the Taiwanese people’s sense of national identity; third, to respond to the threat of China’s infiltrating and recruiting members of the ROC Armed Forces as spies; fourth, to respond to the threat of China’s infiltration of Taiwanese society through societal exchanges and united front work; and fifth, to respond to the threat of China using “integration plans” to draw Taiwan’s young people and Taiwanese businesses into its united front activities. In response to these five major threats, I have proposed 17 response strategies. One of which is to restore the military trial system. If active-duty military personnel commit military crimes, they must be subject to military trials. This expresses the Taiwanese government’s determination to respond to China’s united front infiltration and the subversion of Taiwan. Nikkei: What actions can Taiwan take to guard against China’s threats to regional security?  President Lai: Many people are worried that the increasingly tense situation may lead to accidental conflict and the outbreak of war. My view is that Taiwan is committed to facing China’s various threats with caution. Taiwan is never the source of these problems. If there is an accidental conflict and it turns into a full-scale war, it will certainly be a deliberate act by China by using an accidental conflict as a pretext. When China expanded its military presence in the East China Sea and South China Sea, the international community did not stop it; when China conducted exercises in the Taiwan Strait, the international community did not take strong measures to prevent this from happening. Now, China is conducting gray-zone exercises, which are aggressions against not only the Taiwan Strait, the South China Sea, and the East China Sea, but also extending to the Sea of Japan and waters near South Korea. At this moment, Taiwan, the Philippines, Japan, and even the US should face these developments candidly and seriously. We must exhibit unity and cooperation to prevent China’s gray-zone aggression from continuing to expand and prevent China from shifting from a military exercise to combat. If no action is taken now, the situation may become increasingly serious. Nikkei: Some US analysts point out that China will have the ability to invade Taiwan around 2027. How do you assess the risk of a Chinese invasion at this stage? President Lai: As the country on the receiving end of threats and aggression, Taiwan must plan for the worst and make the best preparations. Our armed forces have a famous saying: “Do not count on the enemy not showing up; count on being ready should it strike.” This is why I proposed the Four Pillars of Peace action plan. First, we must strengthen our national defense. Second, we must strengthen economic resilience. Not only must our economy remain strong, but it must also be resilient. We cannot put all our eggs in the same basket, in China, as we have done in the past. Third, we must stand shoulder to shoulder with friends and allies such as Japan and the US, as well as the democratic community, and we must demonstrate the strength of deterrence to prevent China from making the wrong judgment. Fourth, I would like to emphasize again that as long as China treats Taiwan with parity and dignity, Taiwan is willing to conduct exchanges and cooperate with China and seek cross-strait peace and mutual prosperity through exchanges and cooperation. Nikkei: Amid intensifying US-China confrontation, in which areas do you think Taiwan and Japan should strengthen cooperation? In addition, Japan’s Ishiba administration is also a minority government. What are your expectations for the Ishiba administration? President Lai: In the face of rapid and tremendous changes in the political situation, every government faces considerable challenges, especially for minority governments. But the Japanese government led by Prime Minister Ishiba has quite adequately responded with various strategies. Furthermore, Japan is different from Taiwan. Although Japan’s ruling party lacks a majority, political parties in Japan engage in competition domestically while exhibiting unity externally. Taiwan’s situation is more challenging, because the ruling and opposition parties hold different views on the direction of the country, due to differences in national identity. In the future, I hope that Taiwan and Japan will enjoy even more comprehensive cooperation. I have always believed that deep historical bonds connect Taiwan and Japan. Over the past several decades, when encountering natural disasters and tragedies, our two nations have assisted each other with mutual care and support. The affection between the people of Taiwan and Japan is like that of a family. In addition, both countries face the threat of authoritarianism. We share a mission to safeguard universal values such as democracy, freedom, and respect for human rights. Our two countries should be more open to cooperation in various areas to maintain regional peace and stability as well as to strengthen cooperation in economic and industrial development, such as for semiconductor industry chains and everyday applications of AI, including robots and drones. We can also cooperate on climate change response, such as in hydrogen energy and other strategies. Our two countries should also continue to strengthen people-to-people exchanges. I would like to take this opportunity to once again invite our good friends from Japan to visit Taiwan for tourism and learn more about Taiwan. The Taiwanese people wholeheartedly welcome our Japanese friends.