Office of the President Republic of China(Taiwan)

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.  

Following the successful election of the 267th pope of the Roman Catholic Church, His Holiness Pope Leo XIV, on May 8, President Lai Ching-te extended sincere congratulations on behalf of the people and government of Taiwan, including its Catholic community. The president stated that he looks forward to working with Pope Leo XIV to continue deepening cooperation in the area of humanitarian aid and jointly defend the universal value of religious freedom, expanding and strengthening the alliance between Taiwan and the Vatican. Upon learning of the election results, President Lai directed the Republic of China (Taiwan) Embassy to the Holy See to convey a message of congratulations. In the message, President Lai extended sincere congratulations to Pope Leo XIV on behalf of the people and government of Taiwan, including its Catholic community, expressing confidence that His Holiness will lead the Catholic Church and its 1.4 billion followers worldwide with profound wisdom. President Lai also emphasized that Taiwan looks forward to continuing to work alongside the Holy See in the shared pursuit of peace, justice, religious freedom, solidarity, friendship, and human dignity. This year marks the 83rd anniversary of the establishment of diplomatic ties between Taiwan and the Vatican. Enjoying a strong alliance, Taiwan and the Vatican share such universal values as freedom of religion, respect for human rights, peace, and benevolence, and conduct close exchanges. Taiwan will continue to engage in exchanges and cooperation with the Holy See, further strengthen bilateral relations, and work alongside the Holy See to contribute even more to the world.  

On the afternoon of May 5, President Lai Ching-te met with a delegation from Japan led by House of Representatives Member and former Minister of Economy, Trade, and Industry Nishimura Yasutoshi. President Lai thanked the government of Japan for continuously speaking up for Taiwan at international venues and reiterating the importance of peace and stability in the Taiwan Strait. The president stated that to address China’s gray-zone aggression against neighboring countries, Taiwan and Japan, both located in the first island chain, should strengthen cooperation and respond together. He said he looks forward to bilateral industrial cooperation in fields including semiconductors, hydrogen energy, AI, and drones, jointly strengthening the resilience of non-red supply chains, and promoting mutual prosperity and development.    A translation of President Lai’s remarks follows: I would like to welcome all the members of the Japanese Diet who are using their valuable Golden Week vacation to visit Taiwan, especially House of Representatives Member Nishimura Yasutoshi, whom former Prime Minister Shinzo Abe deeply trusted and relied on, and who for many years held important cabinet positions. This is his first visit after a hiatus of 17 years, so I am sure he will sense Taiwan’s progress and development. House of Representatives Member Tanaka Kazunori has long promoted local exchanges between Taiwan and Japan, and I hope that our visitors will all gain a deeper understanding of Taiwan through this visit.  Yesterday, several of our distinguished guests made a special trip to Kaohsiung to pay their respects at the statue of former Prime Minister Abe, a visionary politician with a broad, international perspective. The former prime minister pioneered the vision of a free and open Indo-Pacific, and once said that “if Taiwan has a problem, then Japan has a problem,” demonstrating strong support for Taiwan and making a deep and lasting impression on the hearts of Taiwanese. Over the past few years, China has continuously conducted military exercises in the Taiwan Strait, East and South China Seas, and carried out acts of gray-zone aggression against neighboring countries, severely undermining regional peace and stability. Taiwan and Japan, both located in the first island chain, should strengthen cooperation and respond together. Especially since Taiwan and Japan are democratic partners who share values such as freedom, democracy, and respect for human rights, if we can strengthen cooperation in areas such as maritime security, social resilience, and addressing gray-zone aggression, I am confident we can demonstrate the strength of deterrence, ensure peace and stability in the Indo-Pacific region, and safeguard our cherished democratic institutions. I would like to take this opportunity to thank the Japanese government for continuously speaking up for Taiwan at international venues, including this year’s US-Japan leaders’ summit, the G7 foreign ministers’ joint statement, and the Japan-NATO bilateral meeting, reiterating the importance of peace and stability in the Taiwan Strait and expressing opposition to unilaterally changing the status quo by force or coercion. In the face of global economic and trade changes, economic security is becoming increasingly important, and Taiwan looks forward to further deepening economic cooperation with Japan. In addition to actively seeking to participate in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Taiwan hopes to sign an economic partnership agreement (EPA) with Japan as soon as possible. This will expand our cooperation in industries such as semiconductors, hydrogen energy, AI, and drones, establish a closer economic partnership, jointly strengthen the resilience of non-red supply chains, and promote mutual prosperity and development. Once again, I welcome all of our guests. I am deeply grateful for your taking concrete action to deepen Taiwan-Japan relations and show support for Taiwan. I wish you a successful and rewarding visit.  Representative Nishimura then delivered remarks, first thanking President Lai for taking time out of his busy schedule to meet with the visiting delegation. He also expressed admiration for the performance of President Lai’s government, which has allowed Taiwan to develop smoothly amidst the current complex international situation. Representative Nishimura mentioned that when former Prime Minister Abe unfortunately passed away in 2020, President Lai, who was vice president at the time, personally visited the former prime minister’s residence to offer his condolences. The representative said that including that meeting, today is the second time he and President Lai have met. This delegation’s visit to Taiwan, he said, carries on the legacy of former Prime Minister Abe. He said that Taiwan and Japan are countries that share universal values and have close ties in terms of economic cooperation and mutual visits. Notably, he highlighted, in 2024, business travelers from Taiwan made over six million visits to Japan, and based on population, Taiwan has the highest percentage of visitors to Japan. He also expressed hope that more Japanese people will visit Taiwan for tourism.   Representative Nishimura stated that the delegation visited Kaohsiung yesterday to pay their respects at the statue of former Prime Minister Abe. Then, he said, they traveled to Tainan to sample a wide variety of fruits and local delicacies, during which time they also discussed the Wushantou Reservoir, built by Japanese engineer Hatta Yoichi. Since May 8 is the anniversary of Mr. Hatta’s birth, Representative Nishimura said he hopes to use this opportunity to continue Mr. Hatta’s concern and love for Taiwan, and further deepen the friendship between Taiwan and Japan. Representative Nishimura said that when he served as Japan’s Minister of Economy, Trade, and Industry, he welcomed Taiwan’s application to join the CPTPP on behalf of the Japanese government. He also said that his government has also provided substantial assistance for the establishment of Taiwan Semiconductor Manufacturing Company’s (TSMC) fab in Kumamoto, Japan. He said he believes that mutual cooperation between Taiwan and Japan in the semiconductor sector can further promote semiconductor industry development, and build a more resilient supply chain system. Representative Nishimura pointed out that former Prime Minister Abe once said, “If Taiwan has a problem, then Japan has a problem.” Currently, many European countries are also very concerned about peace and stability in the Asia-Pacific region, because it is crucial to peace and stability in the entire international community. It can therefore be said that “if Taiwan has a problem, the world has a problem.” He said he believes that in order to maintain peace and stability in the Taiwan Strait, like-minded countries and allied nations must all cooperate closely and definitively proclaim that message. He then said he looks forward to exchanging views with President Lai on issues such as strengthening Taiwan-Japan relations and changes in the international situation. The delegation also included Chairman of Kanagawa Prefecture Japan-Taiwan Friendship Association Matsumoto Jun, Japanese House of Representatives members Nishime Kosaburo, Sasaki Hajime, Yana Kazuo, and Katou Ryusho, and Japan-Taiwan Exchange Association Taipei Office Chief Representative Katayama Kazuyuki. 

On the afternoon of May 2, President Lai Ching-te met with a delegation from the Atlantic Council, a think tank based in Washington, DC. In remarks, President Lai said that we have already proposed a roadmap for deepening Taiwan-US trade ties to achieve a common objective of reducing all bilateral tariffs. At the same time, the president said, we will expand investments across the United States and create win-win outcomes for both sides through the trade and economic strategy of “Taiwan plus the US.” The president also emphasized that Taiwan is not only a bastion of freedom and democracy, but also an indispensable hub for global supply chains. He expressed hope that, given shared economic and security interests, Taiwan and the US will generate even greater synergy and prove to be each other’s strongest support. A translation of President Lai’s remarks follows: I welcome you all to Taiwan. In particular, Vice President Matthew Kroenig visited Taiwan last June and now is making another trip less than a year later. He also contributed an important article supporting Taiwan to a major international publication, highlighting the concern that our international friends have for Taiwan. We are truly moved and thankful. On behalf of the people of Taiwan, I sincerely thank all sectors of the US for their longstanding and steadfast support for Taiwan. Especially, as we face the challenges arising from the regional situation, we hope to continue deepening the Taiwan-US partnership. Holding a key position on the first island chain, Taiwan faces military threats and gray-zone aggression from China. We will continue to show our unwavering determination to defend ourselves. I want to emphasize that Taiwan is accelerating efforts to enhance its overall defense capabilities. The government will also prioritize special budget allocations to increase Taiwan’s defense spending from 2.5 percent of GDP to more than 3 percent. This reflects the efforts we are putting into safeguarding our nation and demonstrates our determination to safeguard regional peace and stability. During President Donald Trump’s first term, Taiwan purchased 66 new F-16V fighter jets. The first of these rolled off the assembly line in South Carolina at the end of this March. This is crucial for Taiwan’s strategy of achieving peace through strength. In the future, we will continue to procure defense equipment from the US that helps ensure peace and stability across the Taiwan Strait. We also look forward to bilateral security collaboration evolving beyond arms sales to a partnership that encompasses joint research and development and joint manufacturing, further strengthening our cooperation and exchanges. Taiwan firmly believes in fair, free, and mutually beneficial trade ties. Indeed, we have already proposed a roadmap for deepening Taiwan-US trade ties. This includes our common objective of reducing all bilateral tariffs as well as narrowing the trade imbalance through the procurement of energy and agricultural and other industrial products from the US. At the same time, we will expand investments across the US. We will promote our “Taiwan plus one” policy, that is, the new trade and economic strategy of “Taiwan plus the US,” to build non-red supply chains and create win-win outcomes for both sides. As the US is moving to reindustrialize its manufacturing industry and may hope to become a global manufacturing center for AI, Taiwan is willing to join in the efforts. Taiwan is not only a bastion of freedom and democracy, but also an indispensable hub for global supply chains. We have every confidence that, given shared Taiwan-US economic and security interests, we can generate even greater synergy and prove to be each other’s strongest support. In closing, I thank Vice President Kroenig once again for leading this delegation, demonstrating support for Taiwan. I look forward to exchanging opinions with you all in just a few moments. I wish you a smooth and successful trip. Vice President Kroenig then delivered remarks, first thanking President Lai for hosting them. He said that it is an honor to be here and to lead a delegation from the Atlanta Council, which consists of a mix of former senior US government officials with responsibility for Taiwan and also rising stars visiting Taiwan for the first time. Vice President Kroenig said that they are here at a critical moment, as there is an ongoing war in Europe, multiple conflicts in the Middle East, and increased Chinese aggression in the Indo-Pacific. Moreover, he pointed out, the regimes of China, Russia, Iran, and North Korea are increasingly working together in a new axis of aggressors. Vice President Kroenig indicated that the challenge facing the US and its allies and partners, including Taiwan, is how to deter these autocracies and maintain global peace, prosperity, and freedom, especially in Taiwan, whose security and stability matter, not only for Taiwan, but also for the US and the world. Vice President Kroenig assured President Lai and the people of Taiwan that the US is a reliable partner for Taiwan. The vice president stated that the administration under President Trump is prioritizing the deterrence of China, and that President Trump has announced an intention to have the largest US defense budget in history, more than US$1 trillion, to resource this priority. Pointing out that an America-first president will not help a country that is not helping itself, Vice President Kroenig said that their delegation has been impressed with the steps President Lai and the administration are taking to strengthen Taiwan’s security, including increasing defense spending, developing a societal resilience strategy, and using cutting edge technologies like unmanned systems to promote indigenous defense production. Vice President Kroenig said that more than money and equipment are necessary to secure a democracy against a powerful and ruthless neighbor, adding that history shows that the human factor is the most important. In the end, he said, it will be the will of the people of Taiwan to resist coercion and to defend their home which will be the most important factor determining the future fate of Taiwan and for the ability of the people of Taiwan to chart their own destiny. Vice President Kroenig emphasized that Americans are willing to support Taiwan in this endeavor, but it will be the people of Taiwan and strong and capable leaders like President Lai at the forefront of this struggle, with the firm support of America. Vice President Kroenig said that as the US and Taiwan work together on these challenges, the Atlantic Council looks forward to offering support behind the scenes. Founded in 1961 to support the Transatlantic Alliance, he said, the Atlantic Council is a global think tank, and part of its DNA is working closely with friends and allies in the Indo-Pacific, including Taiwan. He said they look forward to continuing their close and longstanding cooperation with Taiwan through visiting delegations, research and reports, and public and private events. In closing, Vice President Kroenig thanked President Lai again for hosting them and for the work he is doing to secure the free world. The delegation also included former Deputy Assistant Secretary of Defense for East Asia Heino Klinck and former Director for Taiwan Affairs at the White House National Security Council Marvin Park.

On the morning of May 1, President Lai Ching-te met with a delegation from Japan’s Liberal Democratic Party (LDP) Youth Division. In remarks, President Lai thanked the guests for demonstrating support for deepening Taiwan-Japan ties through concrete actions. The president expressed hope that Taiwan and Japan can continue to conduct exchanges in such areas as national defense, the economy, education, culture, sports, and the arts so that bilateral relations reach even greater heights. A translation of President Lai’s remarks follows: I want to welcome our distinguished guests, who include Diet members in the LDP Youth Division and guests from Junior Chamber International (JCI) Japan, to the Presidential Office. It is also a pleasure to see LDP Youth Division Director Nakasone Yasutaka, House of Representatives Member Hiranuma Shojiro, and House of Councillors Member Kamiya Masayuki again today. I look forward to discussions with all our distinguished guests. The LDP Youth Division and JCI Japan have once again demonstrated support for deepening Taiwan-Japan ties through concrete actions. On behalf of the people of Taiwan, I also want to thank the LDP Youth Division for launching a fundraising campaign to help those affected by the earthquake in Hualien County on April 3 last year. LDP Youth Division members will be important leaders in Japan’s political arena in the future. Taiwan deeply values our exchanges with the Youth Division and hopes to bring about concrete results from such exchanges. Peace and stability in the Taiwan Strait are critical to the security and prosperity of the world, and Taiwan and Japan can work together to promote peace and stability in the Indo-Pacific region. Former Prime Ministers Abe Shinzo and Kishida Fumio, and current Prime Minister Ishiba Shigeru have repeatedly stressed the importance of peace and stability in the Taiwan Strait at important international venues. Taiwan is deeply grateful to Japan’s current and former prime ministers for their concern and support for this issue. Taiwan and Japan can also cooperate in industry and the economy. As our industries are complementary, further cooperation can create win-win outcomes. In the semiconductor industry, for instance, Taiwan’s strengths lie in manufacturing, while Japan’s strengths lie in materials, equipment, and technology. If we work together, the semiconductor industry is sure to see even more robust development. In addition to the economy and national defense, Taiwan and Japan can also conduct exchanges in such areas as education, culture, sports, and the arts. Our countries have long shared deep ties – Director Nakasone’s grandfather, former Prime Minister Nakasone Yasuhiro, was stationed in Taiwan and lived in what is now the Mingde New Residential Quarter of Kaohsiung City’s Zuoying District. I am confident that on the basis of our already solid foundations, Taiwan-Japan relations can reach even greater heights. Director Nakasone then delivered remarks, first thanking President Lai for finding time in his busy schedule to meet with the visiting delegation. He said that the LDP Youth Division sends a visiting delegation to Taiwan each year and is always granted the opportunity to meet with the president, demonstrating his high regard for the delegation, for which the director again expressed his gratitude. He remarked that he, together with House of Representatives Member Suzuki Keisuke, visited Taiwan last July, and that whenever he visits Taiwan, it feels as if he is returning home. Director Nakasone recalled President Lai’s earlier remarks, saying that he hopes the young people of Taiwan and Japan can fully engage in exchanges in the areas of national defense, the economy, culture, education, and the arts. The director said he believes that in today’s complex and difficult international situation, such directives are necessary. This is especially so, he emphasized, during United States President Donald Trump’s second term, when things once taken for granted are no longer so, and when the global economy is undergoing significant changes. Director Nakasone expressed his full support for strengthening Taiwan and Japan’s practical and strategic cooperation. He said he believes each side will be able to benefit from such cooperation and hopes that exchanges will progress toward shared goals. He pointed out that, as maritime nations, Taiwan and Japan share the goals of protecting the ocean and using marine resources wisely, goals that we ought to cooperate on and devote our full efforts to. The peace and stability of the Taiwan Strait are critical to the peace and stability of East Asia and even the world, he said, so we must ensure that the world and its leaders recognize this point, and Japan will do its utmost to advocate for it. Director Nakasone said, on the topic of semiconductors, that Taiwan Semiconductor Manufacturing Company’s new fab in Japan’s Kumamoto Prefecture has made the area very lively, adding that the Japanese government is providing more than 1.25 trillion yen in subsidies. Moving forward, the Japanese government plans to inject an additional 10 trillion yen, he said, to aid in the development of AI and other fields. Noting that Taiwan and Japan both excel in semiconductors, he expressed his hope that each can give free rein to its strengths to produce an even greater effect. Director Nakasone said that despite Taiwan’s facing formidable internal and external circumstances, it saw 4.6 percent economic growth last year under President Lai’s strong leadership, and it continued to promote measures to enhance overall societal resilience, all of which is admirable. In closing, the director thanked President Lai once again for taking the time to meet with them. Also in attendance were Japanese House of Representatives Members Nemoto Taku and Fukuda Kaoru, and Japan-Taiwan Exchange Association Taipei Office Chief Representative Katayama Kazuyuki.

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.