Taiwan’s President Tsai Ing-wen said cross-strait security and reinforcing the island’s position in the global supply chain will be key priorities for her final year in office, as she lays a path for her deputy to succeed her.
“It’s the global consensus that the Taiwan Strait issue must be resolved peacefully,” Tsai told a news briefing in Taipei on Saturday. “War is not an option.” She reiterated a commitment to resolve differences with China through dialogue and by promoting orderly exchanges.
Tsai pledged that even as companies like Taiwan Semiconductor Manufacturing Company boost foreign investment, the island will maintain its research and development capacity and advanced technology to ensure its advantages.
Taiwan voters will elect their next president and parliament in January and the new leader’s four-year term will begin on May 20, 2024. The island’s myriad challenges mean its next president must be able to handle international affairs, be a strong communicator and maintain stability in foreign policy, Tsai said.
The election winner will be thrust into the center of deteriorating relations between the world’s largest economies and likely influence their trajectory.
That’s because a victory for the incumbent Democratic Progressive Party would see the U.S. keep a willing partner in its efforts to push back against China, while a win for the opposition Kuomintang would likely result in much closer ties between Taipei and Beijing.
Just this week, Washington and Taipei agreed to boost trade ties under an initiative announced last year that faces vehement opposition from Beijing.
Vice President Lai Ching-te, the DPP candidate, will face off against New Taipei City Mayor Hou Yu-ih of the KMT in the presidential election.
Lai is well placed to lead because of his experience in areas ranging from foreign affairs to security and the economy, as well as his past positions in local and central government, Tsai said.
Taiwan faces headwinds as Tsai enters the final year of her term. The economy plunged into recession in the first quarter after contracting at the fastest pace since the global financial crisis as a slump in demand for chips shows little sign of abating. It has also found itself under increasing pressure from Beijing, which views the self-governing island as part of its territory.
In April, the People’s Liberation Army completed three days of military exercises around Taiwan in response to Tsai visiting the U.S. Last year, the PLA nearly doubled military flights around the island to more than 1,700.
The U.S. has stepped up its support for Taiwan. The Biden administration is preparing a $500 million weapons package, using a fast-track authority that it has relied on to speed arms to Ukraine. China said such plans shake the foundation of China-U.S. relations and are “a very wrong and dangerous move.”
The U.S. package is to make up for delayed delivery of some arms due to the pandemic, Tsai said. Taiwan and the US are still in talks about the specific items, she added.
Other highlights from the news conference include:
—Taiwan will continue investing in the establishment of power storage equipment and enhancing grid resilience to ensure stable electricity
—Taiwan will have attracted NT$1 trillion ($32.7 billion) in investment in green energy from domestic and offshore firms by year’s end
—Foreign investors pumped over NT$2 trillion into Taiwan since 2016
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© 2023 Bloomberg L.P
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