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2024-06-13
President Lai interviewed by Time magazine

In a recent interview with Time magazine, President Lai Ching-te responded to questions regarding diplomacy, cross-strait relations, the semiconductor industry, and Taiwan’s domestic economic development.

Following is the text of the questions and the president’s responses:

Q: Thank you so much for sparing us the time today and congratulations on your election victory. How are you settling into the new job? I know you’ve just moved one level down from where you were previously, but I hope that your access to bubble tea has not been adversely impacted by the new job.

President Lai: My interest in bubble tea has not changed. The transition into my new job has also been steady, having just moved from the fourth to the third floor. I had previously served as a legislator, premier, and was vice president for four years, so I have a clear understanding about national policies and the direction of former President Tsai Ing-wen’s past governance. So far, it has been very smooth. Thank you.

Q: Obviously you’ve had four months now since your election victory to prepare for this role. How have you spent that time and what advice has [former] President Tsai given you about taking the most important job in Taiwan?

President Lai: Over the past four months, the most important task was the transition process with former President Tsai. This included foreign affairs, national defense, cross-strait affairs, and key domestic issues. Some of this took place in meetings at the Presidential Office and some at military facilities and different government agencies.

I also worked to assemble a cabinet, inviting Cho Jung-tai (卓榮泰) to be premier. Cheng Li-chiun (鄭麗君) was invited to serve as vice premier, and former National Development Council Minister Kung Ming-hsin (龔明鑫) as secretary-general of the Executive Yuan. Premier Cho has invited people based on talent across political affiliations to form the cabinet. So far, the public response has been positive.

As for advice and encouragement from former President Tsai, she emphasized to me that the president’s job is to safeguard the country and uphold the constitutional system of freedom and democracy. Second, we must listen to public opinion and take care of the people. Third, faced with difficult challenges, we should collectively discuss a course of action forward. This way there will be less headwind.

Q: Speaking of headwinds, it was just 48 hours after your election victory that Beijing announced that one of Taiwan’s diplomatic allies, Nauru, was now going to switch recognition to Beijing. This seems to be quite a clear signal to you before you’d even stepped into office or made any policy decisions or anything. How concerned are you by Taiwan’s dwindling recognition on the world stage?

President Lai: We cooperate with our diplomatic allies in a sincere way, holding to the principles of mutual benefit and reciprocity. We cherish our friendships with our diplomatic allies and thank them for voicing support for Taiwan in the international community, as well as creating greater international space for us. We also greatly value the cooperation projects we have with our diplomatic allies because these help the people of both countries.

Taiwan has always held firm to these principles, regardless of which political party is in power. In the case that our diplomatic allies decide to switch allegiances to the People’s Republic of China (PRC), while we wish them well, such harmful actions by the PRC will not affect Taiwan’s status as a beacon of freedom and a bastion of democracy in the world. So, [on this issue of recognition], we are not deeply worried.

Q: You chose and invited Bi-khim Hsiao to be your vice president and she left Washington, DC, where she was serving as your de facto ambassador to the US. Does that signify that US-Taiwan relations are going to take on newfound importance for your administration?

President Lai: During Vice President Hsiao’s term as ambassador to the United States, she performed exceedingly well. Taiwanese society has recognized her as amongst the very best within our ambassadors to the US. The international community, including the US, has also recognized her outstanding performance. Now as vice president, she can support the new administration in furthering trusted channels with the US, which will help advance our bilateral cooperation. With Bi-khim’s support, we will engage in more substantive cooperation on national security and defense, the economy, and other substantive exchanges. I trust that we will make much progress, as Bi-khim has been instrumental in bridging Taiwan together with the US.

Q: In your inauguration speech, you called for resumption of cross-strait dialogue, trade, and educational exchanges but caveated that on dignity and equivalence. What exactly do you mean by dignity and equivalence with the PRC?

President Lai: First, the PRC should recognize that the Republic of China (ROC) exists. They should be sincere in building exchanges and cooperation with the popularly elected and legitimate government of Taiwan. Second, each issue should be mutually beneficial and reciprocal. For example, if Taiwan allows tourists to go to China, they should allow tourists to visit Taiwan. And if we let our students go to China, their students should be allowed to come here. Third, as we conduct exchanges and cooperate with each other, we should share a common conviction to enhance the well-being of people on the two sides of the Taiwan Strait, working toward an objective of peace and mutual prosperity.

Q: Also, in your speech, you said that the ROC and the PRC are not subservient to each other. That obviously provoked a reaction from Beijing. We saw the military drills but also some of your political opponents here have said that this undermines the strategic ambiguity which has been the bedrock of peace and stability. How do you counter that? Do you think that you were unnecessarily provocative in hindsight?

President Lai: What I said was the truth. Moreover, I was not the first person to express this truth. My intention was not to provoke. During her 2021 National Day Address, former President Tsai said as part of her Four Commitments that the ROC and PRC should not be subordinate to each other. Former President Ma Ying-jeou had also once said the ROC is a sovereign and independent state and that neither side of the strait is subordinate to the other. Third, I stated this in accordance with Articles 2 and 3 of the ROC Constitution, given that in Taiwan we have had our own citizens, land, sovereignty, and government for decades. According to international law, we are already a sovereign and independent country. My goal is to bring the people of Taiwan together.

Q: In April, US Secretary of State Antony Blinken traveled to Beijing and met with Xi Jinping. From diplomatic sources, he became quite animated when discussing the status of Taiwan and US support for Taiwan. Do you worry that President Xi is becoming emboldened and impatient about resolving the so-called Taiwan issue?

President Lai: Peace and stability across the Taiwan Strait are indispensable elements of global peace and prosperity. In my inaugural address, I told the international community that I would uphold former President Tsai’s Four Commitments. We will neither yield nor provoke. We will maintain the status quo and fulfill our responsibilities. I also urge President Xi to understand that conflict in the Taiwan Strait and disruptions to peace and stability in the Indo-Pacific region will not be accepted by the international community. I invite President Xi to jointly shoulder with us the responsibility of maintaining peace and stability, building regional prosperity, and advancing world peace.

Q: Since we last spoke, China’s economic problems continue to mount. Do you feel that this makes Taiwan more vulnerable, or is this an opportunity for further engagement for mutual benefit?

President Lai: I have always believed that a stable China leads to a safer Taiwan. A prosperous Taiwan can also bring about progress in China. Therefore, I do not wish to see growing difficulties in China’s economy or its society become more unstable. Indeed, economic relations between Taiwan and China are the result of divisions of labor within global supply chains. In the past, China was the world’s factory as well as the world’s market. Many countries, including Taiwan, invested in manufacturing in China and sold products manufactured at home via China to the entire world.

But today things have changed because China’s business environment has worsened. China has placed ever stricter controls on the free market. They have adopted a policy of placing state-owned businesses first, at the expense of the private sector. China’s intellectual property rights protection has also long fallen short of international expectations.

In addition, China’s military expansionism in the East and South China Seas has impacted regional peace and stability. This is why capital investment from Taiwan and other countries is no longer heading to China at the pace it was in the past. Taiwanese companies have pulled out of China’s manufacturing sector en masse, favoring countries in the Indo-Pacific – including Japan – the US, and Europe.

In 2010, investments in China accounted for 83.8 percent of Taiwan’s total foreign investment, meaning that for every NT$100, NT$83.8 was invested in China. During the same period of time, over half of Taiwan’s foreign trade was dependent on China. Parts and equipment produced in Taiwan were sent to China for assembly or used in the production of other goods, and then the finished products were sold internationally.

Last year, investment in China accounted for only 11.4 percent of Taiwan’s total foreign investment, dropping from 83.8 percent. Taiwan’s foreign trade with China also fell from its previous high of over 50 percent, totaling 35.5 percent in 2023. Despite this, Taiwan’s economic growth rate has averaged 3.15 percent over the past eight years – ranking first among the Four Asian Tigers. During former President Tsai’s eight-year term, the stock market grew by 155.5 percent and its value increased 1.8-fold. When former President Tsai first assumed office, the stock market was a little over 8,000 points; it has now surpassed 20,000 points. In other words, even as China’s economy has continued to decline, Taiwan’s economy has continued to grow and has not been affected by China. Taiwan’s new government is willing to assist China and advance peace and prosperity across the Taiwan Strait.

Q: Obviously Taiwan is central to global supply chains when it comes to semiconductors, producing 90 percent of the most advanced chips, but US export restrictions are preventing those chips from going to China. You mentioned that Taiwanese investment in China is plummeting. At the same time, Taiwan companies like TSMC are benefiting from billions of dollars from the US Chips Act. Do you fear that key players in Taiwan’s business industrial base moving closer to the US and being kept apart from China is increasing the risk of conflict?

President Lai: In this era of smart technologies, semiconductors have become crucial industrial products. In the future, if all aspects of life – including food, clothing, housing, and transportation – are to be technologically advanced and intelligent, semiconductors will be indispensable. The industry runs on a global division of labor. From research and development, design, manufacturing, raw materials, and equipment, it is a worldwide industrial chain. Taiwan is involved in integrated circuit design, wafer manufacturing, and end-of-line packaging and testing, but raw materials are distributed across other countries. For example, components, equipment, and technology are sourced from the US, Japan, and the Netherlands. As we can see, this is an industry with a global division of labor.

Although Taiwan has an advantage in the semiconductor industry, Taiwan also has a responsibility to promote global prosperity and development. Consequently, if semiconductor companies, including Taiwan Semiconductor Manufacturing Company (TSMC), decide to expand in the US, Japan, Europe, or other countries consistent with their own business interests, the government will respect their decisions.

Geopolitical changes will continue to impact the distribution of semiconductor companies. Given that the restructuring of global supply chains is not specific to any single country, I do not believe that this will increase the risk of conflict.

Q: Your only trip to China was in 2014 when you were serving as mayor of Tainan. I understand that you had some quite open and frank discussions with students in Shanghai about Taiwanese aspirations for independence. What did you learn from that interaction?

President Lai: In 2014, I visited Shanghai because the Tainan City government organized a traveling art exhibition to commemorate the 120th anniversary of Chen Cheng-po’s (陳澄波) birth. During my interactions with the Shanghai municipal government and Fudan University, I made it clear that the two sides of the Taiwan Strait should seek common ground and set aside differences. Through exchanges and cooperation, we should promote mutual understanding, empathy, reconciliation, and peaceful development.

Q: You won the election with over 40 percent of the vote, but the DPP lost control of the legislature, and so you need to work across the aisle with opposition parties to get your domestic agenda across. It’s not been a very harmonious time in the Legislative Yuan at the moment. We’ve seen brawls and a lot of sniping over the new bill to increase scrutiny of the executive branch. How confident are you that you can overcome these differences to have a constructive relationship with the opposition parties?

President Lai: I remain fully confident about the future development of Taiwan. This is because of our democracy. After decades of collective effort, as well as the numerous sacrifices and contributions of many people, the vitality and values of democracy are deeply imbued within the Taiwanese people. These democratic values are an important foundation as I promote future national policy priorities.

In my inaugural address, I mentioned that a divided legislature is the will of the people. This provides an opportunity for each party to share their ideas and jointly bear the responsibility of serving the nation. At the same time, if any one party does not live up to public expectations, I trust that people will respond accordingly so that the country can still move forward.

In my address, I also pointed out that Taiwan will continue to move in the direction of democracy, peace, and prosperity, linking us with the international community. I will pursue policies that further entrench Taiwan’s democracy, maintain regional peace, and allow Taiwan to engage with the international community to enhance global prosperity and development. This roadmap will benefit both our country and its people. I do not think opposition parties will strongly oppose bills related to this roadmap.

Q: Some of your DPP colleagues have pointed out that 17 KMT lawmakers went to China recently and met with Wang Huning, and they have openly accused the KMT of being a fifth column for the CCP in trying to disrupt your administration. Is that an opinion that you share?

President Lai: In a democratic society, the interests of the people should take precedent; this is the principle of democracy at work. As a result, political parties should put national interests above their own – that is their sacred duty . As Taiwan faces different forms of pressure from China, everybody, regardless of party affiliation, should put the people first and prioritize national interests. They should not let themselves be influenced by any authoritarian country.

Q: The CCP has refused to engage with your administration or the DPP. Is it beneficial for the KMT to have trips to China and engagements with China, whether it’s Ma Ying-jeou on an unofficial basis or KMT lawmakers?

President Lai: The people of Taiwan and all political parties – regardless of affiliation – should recognize and respond to the fact that China’s ambition to annex Taiwan is part of their national policy. Only by coming together domestically and strengthening our global linkages can we maintain our sovereignty, freedom, and democratic way of life. By doing so, we will have the capacity and opportunity to determine our own future. No political party should sacrifice national sovereignty for political gain.

Q: Following the devastating Hualien earthquake just a month ago, China offered to send aid to Taiwan but was rebuffed. You hadn’t taken office at that point. But do you feel that was the right decision? Do you think it could have been an opportunity to mend bridges across the strait?

President Lai: Taiwan very much cherishes the expressions of concern and support we received from the global community. International assistance creates a positive feedback loop that helps us come together in times of need. This helps support global development and stability.

With this being said, at the time, China had offered 100 prefabricated homes, which was not what the people affected by the Hualien earthquake required. When central Taiwan was struck by a major earthquake on September 21, 1999, the government had provided such homes to alleviate housing shortages at the time. However, over the past 20 or 30 years, Taiwan has accumulated greater experience and capacity for search and rescue and post-disaster reconstruction. We have moved past the period of requiring prefabricated housing.

Today, if a home is made unsafe by an earthquake, a red notice will be attached to the structure. We will consequently provide financial support for both the property and its reconstruction. If people need to live in a hotel or guesthouse, stay with a relative, or rent a place to stay, these costs will also be subsidized until the home has been rebuilt. Therefore, we did not require prefabricated homes. People living in hotels or guesthouses also supported the tourism industry, which was affected by a large drop in visitors following the earthquake.

Q: Some in the opposition want to restart negotiations for the cross-strait service trade agreement for close economic integration with China. Why do you oppose such a move? 

President Lai: In short, the time for this has long passed. As I said, many Taiwanese businesses have left China. Looking ahead, we can see substantive differences opening up between Taiwan’s economy and China’s present economic structure.

If the cross-strait service trade agreement were passed, Chinese business owners could come to Taiwan and set up shop with as little as NT$6 million dollars. And it is not just a matter of the owners – they could also bring employees over. This would greatly affect Taiwan’s local economy.

Q: Beijing is aggressively courting the Global South to back its claim over Taiwan with 28 nations, according to recent reporting, firmly supporting China’s push for reunification. How important is it to win the argument over Taiwan’s right for autonomy amongst the international community, especially those of the Global South?

President Lai: I hope that all countries will respect the choice of Taiwan’s people. The will of the people should not be subject to decisions made by a majority or show of hands [in international fora]. Neither should our people be threatened by violence or the threat of war.

China is presently engaged in lawfare, which is affecting support for Taiwan internationally. While Taiwan will do its best to speak up for our own rights and interests, I hope that the international community will also continue to assist, understand, and support Taiwan. This is because if China’s attempts at lawfare were to succeed, this would affect Taiwan’s global backing, be it in times of peace or war.

Q: Domestically in Taiwan, a lot of Taiwan people are struggling with a growing but slow economy, rising prices, and stagnated wages. What is your plan to try to help the average Taiwanese person?

President Lai: I have been deeply focused on supporting the salaries and lives of our grassroots workers. I also prioritize reducing the gap between the rich and poor, as well as efforts to give our young people a brighter future. I will faithfully implement the Minimum Wage Act that was passed under former President Tsai. With this act, minimum wage increases will be based on how the GDP or prices increase. More importantly, we must help our industries upgrade and our economy transform.

In my inaugural address, I said that economic development will take a threefold approach. First, we will have a clear view for a smart, sustainable future. In other words, we must use technology to address climate change and respond to the global era of smart technologies. We will have an innovative economy and create a new Taiwan that is both smart and sustainable.

Second, we will expand the space industry, exploring the future by developing medium- and low-orbit communications satellites and drones. We will also use our strengths as a maritime nation to explore the ocean, helping related industries grow and develop in many directions.

Third, we will help our enterprises expand their presence and markets internationally. We will improve Taiwan’s investment environment and take care of our small- and medium-sized enterprises while helping our industries in their global reach. This will grow Taiwan’s economy, leading to development and creating an environment conducive to higher wages.

During my election campaign, I put forward a National Project of Hope. With this, we will invest more in our society, take better care of both young and elderly people, as well as all those who need care. We will close the wealth gap, while supporting the people’s welfare and the future of our young people.

Q: President Lai, thank you. You’ve been very generous with your time. But just to end off, we spoke before how you grew up in Wanli in a poor family and your father died when you were very young. You worked very hard to become a doctor and your mother wasn’t very keen about you taking a diversion route into politics. Now you’ve reached the very top of the political ladder in Taiwan, do you think that your mother would be proud, that she would have forgiven you for defying her?

President Lai: My mother was just an ordinary person and, like many mothers in Taiwan’s society at that time, worked hard, took care of her family, and hoped that her children would grow up safe and sound. What probably mattered most to my mother was that I was safe and healthy. It did not matter to her whether I became a politician or not, just as I had no expectation that one day I would sit here in the Presidential Office.

In fact, when I was little, I hoped to become a doctor so as to take care of the sick, relieve suffering, and save lives. But during the process of Taiwan’s democratization, many young people devoted themselves to politics, including myself. I had no idea that I would continue down this path, much less be here today.

My mother told me that if people support me, then I should run for election; if not, then I should continue as a doctor. In other words, my mother felt that I probably would not pursue politics for very long. We were from the countryside and did not come from a political family.

However, I attribute my success to Taiwan’s democratization. If it were not for the sacrifices, contributions, and achievements of countless individuals up until now, I could not have been afforded the opportunity to sit here. My responsibility is to further deepen Taiwan’s democracy and enable hardworking people from all walks of life to realize their ideals and contribute to our country.

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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. 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President Lai meets Atlantic Council delegation
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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.
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2025-05-01
President Lai meets Japan’s LDP Youth Division delegation
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.
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2025-04-29
President Lai meets NBR delegation  
On the morning of April 29, President Lai Ching-te met with a delegation from the National Bureau of Asian Research (NBR). In remarks, President Lai stated that as Taiwan stands at the very frontline of defense of global democracy, we are actively implementing our Four Pillars of Peace action plan, which includes continuing to enhance our national defense capabilities, demonstrating our commitment to defending freedom and democracy. The president said he hopes to further advance national security and industrial cooperation between Taiwan and the United States. He also expressed hope that this will help boost economic resilience for both sides and establish each as a key pillar of regional security, elevating our relations to even higher levels. A translation of President Lai’s remarks follows: I am delighted to meet with Admiral John Aquilino again today. I also warmly welcome NBR President Michael Wills and our distinguished guests from the bureau to Taiwan. I look forward to exchanging views with you all on Taiwan-US relations and the regional situation. During his tenure as commander of the US Indo-Pacific Command, Admiral Aquilino placed much attention on the Taiwan Strait issue. And the NBR has conducted a wealth of research and analysis focusing on matters of regional security. Thanks to all of your outstanding contributions and efforts, the international community has gained a better understanding of the role Taiwan plays in the Indo-Pacific region and in global democratic development. For this, I want to extend my deepest gratitude. Taiwan stands at the very frontline of defending global democracy and is located at a strategically important location in the first island chain. We are actively implementing our Four Pillars of Peace action plan, which includes continuing to enhance our national defense capabilities, building economic security, demonstrating stable and principled cross-strait leadership, and standing side-by-side with the democratic community to jointly demonstrate the strength of deterrence and safeguard regional peace and stability. At the beginning of this month, I announced an increase in military allowances for volunteer service members and combat troops. The government will also continue to reform national defense and enhance self-sufficiency in defense. In addition, we will prioritize special budget allocations to ensure that Taiwan’s defense budget exceeds 3 percent of GDP. These efforts continue to strengthen Taiwan’s self-defense capabilities and demonstrate our commitment to defending freedom and democracy. As we mark the 46th anniversary of the enactment of the Taiwan Relations Act, we thank the US government for continuing its arms sales to Taiwan and strengthening the Taiwan-US partnership over the years. We believe that, in addition to engaging in military exchanges and cooperation, Taiwan and the US can build an even closer economic and trade relationship, boosting each other’s economic resilience and establishing each as a key pillar of regional security. I expect that your continued assistance will help advance national security and industrial cooperation between Taiwan and the US, elevating our relations to even higher levels. Once again, I welcome our distinguished guests to Taiwan and wish you a pleasant and successful trip. I hope that through this visit, you gain a more comprehensive and in-depth understanding of Taiwan’s economy and national defense. Admiral Aquilino then delivered remarks, thanking the Ministry of National Defense for the invitation and President Lai for receiving and spending time with them. Mentioning that this is his second visit in five months, he said he continues to be incredibly impressed with the president’s leadership and the actions he has taken to secure Taiwan and defend its people. Admiral Aquilino said that he has watched the efforts of the ministers on whole-of-society defense to demonstrate deterrence and added that the pace of the work is nothing short of inspiring. Admiral Aquilino noted that Taiwan’s thriving democracy is incredibly important to the peace and stability of the region. He stated that he, alongside the NBR, will continue to offer support, noting that President Wills and his team are an asset to Taiwan and the US that helps continue our close relationship and ensure peace and stability in the region.  
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2025-04-06
President Lai delivers remarks on US tariff policy response
On April 6, President Lai Ching-te delivered recorded remarks regarding the impact of the 32 percent tariff that the United States government recently imposed on imports from Taiwan in the name of reciprocity. In his remarks, President Lai explained that the government will adopt five response strategies, including making every effort to improve reciprocal tariff rates through negotiations, adopting a support plan for affected domestic industries, adopting medium- and long-term economic development plans, forming new “Taiwan plus the US” arrangements, and launching industry listening tours. The president emphasized that as we face this latest challenge, the government and civil society will work hand in hand, and expressed hope that all parties, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. A translation of President Lai’s remarks follows: My fellow citizens, good evening. The US government recently announced higher tariffs on countries around the world in the name of reciprocity, including imposing a 32 percent tariff on imports from Taiwan. This is bound to have a major impact on our nation. Various countries have already responded, and some have even adopted retaliatory measures. Tremendous changes in the global economy are expected. Taiwan is an export-led economy, and in facing future challenges there will inevitably be difficulties, so we must proceed carefully to turn danger into safety. During this time, I want to express gratitude to all sectors of society for providing valuable opinions, which the government regards highly, and will use as a reference to make policy decisions.  However, if we calmly and carefully analyze Taiwan’s trade with the US, we find that last year Taiwan’s exports to the US were valued at US$111.4 billion, accounting for 23.4 percent of total export value, with the other 75-plus percent of products sold worldwide to countries other than the US. Of products sold to the US, competitive ICT products and electronic components accounted for 65.4 percent. This shows that Taiwan’s economy does still have considerable resilience. As long as our response strategies are appropriate, and the public and private sectors join forces, we can reduce impacts. Please do not panic. To address the reciprocal tariffs by the US, Taiwan has no plans to adopt retaliatory tariffs. There will be no change in corporate investment commitments to the US, as long as they are consistent with national interests. But we must ensure the US clearly understands Taiwan’s contributions to US economic development. More importantly, we must actively seek to understand changes in the global economic situation, strengthen Taiwan-US industry cooperation, elevate the status of Taiwan industries in global supply chains, and with safeguarding the continued development of Taiwan’s economy as our goal, adopt the following five strategies to respond. Strategy one: Make every effort to improve reciprocal tariff rates through negotiations using the following five methods:  1. Taiwan has already formed a negotiation team led by Vice Premier Cheng Li-chiun (鄭麗君). The team includes members from the National Security Council, the Office of Trade Negotiations, and relevant Executive Yuan ministries and agencies, as well as academia and industry. Like the US-Mexico-Canada free trade agreement, negotiations on tariffs can start from Taiwan-US bilateral zero-tariff treatment. 2. To expand purchases from the US and thereby reduce the trade deficit, the Executive Yuan has already completed an inventory regarding large-scale procurement plans for agricultural, industrial, petroleum, and natural gas products, and the Ministry of National Defense has also proposed a military procurement list. All procurement plans will be actively pursued. 3. Expand investments in the US. Taiwan’s cumulative investment in the US already exceeds US$100 billion, creating approximately 400,000 jobs. In the future, in addition to increased investment in the US by Taiwan Semiconductor Manufacturing Company, other industries such as electronics, ICT, petrochemicals, and natural gas can all increase their US investments, deepening Taiwan-US industry cooperation. Taiwan’s government has helped form a “Taiwan investment in the US” team, and hopes that the US will reciprocate by forming a “US investment in Taiwan” team to bring about closer Taiwan-US trade cooperation, jointly creating a future economic golden age.  4. We must eliminate non-tariff barriers to trade. Non-tariff barriers are an indicator by which the US assesses whether a trading partner is trading fairly with the US. Therefore, we will proactively resolve longstanding non-tariff barriers so that negotiations can proceed more smoothly. 5. We must resolve two issues that have been matters of longstanding concern to the US. One regards high-tech export controls, and the other regards illegal transshipment of dumped goods, otherwise referred to as “origin washing.” Strategy two: We must adopt a plan for supporting our industries. For industries that will be affected by the tariffs, and especially traditional industries as well as micro-, small-, and medium-sized enterprises, we will provide timely and needed support and assistance. Premier Cho Jung-tai (卓榮泰) and his administrative team recently announced a package of 20 specific measures designed to address nine areas. Moving forward, the support we provide to different industries will depend on how they are affected by the tariffs, will take into account the particular features of each industry, and will help each industry innovate, upgrade, and transform. Strategy three: We must adopt medium- and long-term economic development plans. At this point in time, our government must simultaneously adopt new strategies for economic and industrial development. This is also the fundamental path to solutions for future economic challenges. The government will proactively cooperate with friends and allies, develop a diverse range of markets, and achieve closer integration of entities in the upper, middle, and lower reaches of industrial supply chains. This course of action will make Taiwan’s industrial ecosystem more complete, and will help Taiwanese industries upgrade and transform. We must also make good use of the competitive advantages we possess in such areas as semiconductor manufacturing, integrated chip design, ICT, and smart manufacturing to build Taiwan into an AI island, and promote relevant applications for food, clothing, housing, and transportation, as well as military, security and surveillance, next-generation communications, and the medical and health and wellness industries as we advance toward a smarter, more sustainable, and more prosperous new Taiwan. Strategy four: “Taiwan plus one,” i.e., new “Taiwan plus the US” arrangements: While staying firmly rooted in Taiwan, our enterprises are expanding their global presence and marketing worldwide. This has been our national economic development strategy, and the most important aspect is maintaining a solid base here in Taiwan. We absolutely must maintain a solid footing, and cannot allow the present strife to cause us to waver. Therefore, our government will incentivize investments, carry out deregulation, and continue to improve Taiwan’s investment climate by actively resolving problems involving access to water, electricity, land, human resources, and professional talent. This will enable corporations to stay in Taiwan and continue investing here. In addition, we must also help the overseas manufacturing facilities of offshore Taiwanese businesses to make necessary adjustments to support our “Taiwan plus one” policy, in that our national economic development strategy will be adjusted as follows: to stay firmly rooted in Taiwan while expanding our global presence, strengthening US ties, and marketing worldwide. We intend to make use of the new state of supply chains to strengthen cooperation between Taiwanese and US industries, and gain further access to US markets. Strategy five: Launch industry listening tours: All industrial firms, regardless of sector or size, will be affected to some degree once the US reciprocal tariffs go into effect. The administrative teams led by myself and Premier Cho will hear out industry concerns so that we can quickly resolve problems and make sure policies meet actual needs. My fellow citizens, over the past half-century and more, Taiwan has been through two energy crises, the Asian financial crisis, the global financial crisis, and pandemics. We have been able to not only withstand one test after another, but even turn crises into opportunities. The Taiwanese economy has emerged from these crises stronger and more resilient than ever. As we face this latest challenge, the government and civil society will work hand in hand, and I hope that all parties in the legislature, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. Let us join together and give it our all. Thank you.
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