ISSUE 265                                                                                  October 9, 2024
In This Issue
● This Week in Taiwan: 
Other Important Events This Week 




Publishers

Raytheon Arms Sales to Taiwan Involve Illicit Gains
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Arms manufacturer Raytheon sold the Patriot missile and radar systems to Taiwan at unreasonably high prices.
(Photo from: United Daily News)
Featured News

MND Confirms Raytheon's Price-Gouging Fraud

United Daily News, October 3, 2024

 

U.S. defense contractor Raytheon is facing allegations of overcharging for arms sales to Taiwan, raising international concerns. Taiwan's Ministry of National Defense confirmed that the U.S. Department of Justice has reached a plea agreement with the company, requiring full restitution for the overcharges. This indirectly confirms suspicions of misconduct in Raytheon’s dealings with Taiwan. 

Featured Editorial
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U.S. military aid to Taiwan has been fraught with issues, from severe delivery delays to inflated sales prices. The challenges thoroughly expose the Democratic Progressive Party (DPP) administration's role behind extravagant military purchases.
(Photo from: China Times)

Military Procurement Issues: Raytheon Case Just Tip of the Iceberg

China Times Editorial, October 4, 2024

 

Recently, the Ministry of National Defense (MND) has been preoccupied with clarifications of and denials on the news reports about the controversies of the U.S. arms sales to Taiwan. What troubles the public the most is the opaque messages presented by the MND, and its shirking of responsibility, attributing to the manipulation of "American-skeptic” theory and the cognitive warfare.

 

From: https://www.chinatimes.com/opinion/20241004004934-262101?chdtv

Featured Editorial
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President Lai Ching-te said that peace can be achieved through strength. His willingness to increase military spending signifies movement towards militarism.
(Photo from: The Storm Media)

President Lai's Emphasis on Real Strength Could Signal Path to Militarism

The Storm Media Editorial, October 3, 2024

 

President Lai Ching-te made a bold statement that Taiwan must “achieve peace through strength” and should never sign a peace agreement with Communist China. But how high is military spending to be considered as having “strength?” Taiwan’s defense budget for next year is estimated to be 2.5 percent of gross domestic product (GDP). Also advocating for “strength,” Former U.S. President Donald Trump recently strongly asserted that Taiwan’s military budget should be increased to 10 percent of GDP. No wonder some scholars criticize that Mr. Trump is pushing Taiwan towards “militarism.”

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From: https://vip.udn.com/vip/story/122367/8245539

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According to Navy Commander Tang Hua, the People's Liberation Army (PLA) is implementing a "python strategy" against Taiwan, slowly but steadily increasing its military presence around Taiwan, and is ready to blockade Taiwan at any time if it wishes.
(Photo from: United Daily News)

September 29:

Joseph Cella, former United States ambassador to the South Pacific and founder of the Michigan China Economic Security and Review Group, recently confirmed in Congress that Taiwanese troops are being trained at the national All-Domain Warfighting Center of the Michigan National Guard. 

According to the website of the Michigan National Guard, this center focuses on five major operational domains: land, air, sea, space, and cyber. It provides realistic combat training through a joint live-fire environment. According to Cella, Camp Grayling is the hub of this center, responsible for providing strategic and tactical combat training to U.S. forces and allied troops. 

 

September 30:

The Electricity Rate Review Committee has decided to freeze residential electricity rates while increasing industrial electricity rates by an average of 12.5 percent, with rates for the semiconductor and data center sectors rising by 14 percent. This marks the fourth industrial electricity rate hike in three years, affecting over 500,000 users. The new rates will take effect on October 16. The Chinese National Federation of Industries (CNFI) has reiterated its call for the industry to use competitive and reliable energy sources, urging the government not to abandon nuclear power lightly. 

 

October 1:

In an interview with the Washington Post, U.S. Republican presidential candidate Donald Trump stated that China will eventually attack Taiwan but not during his tenure. Trump criticized Taiwan's defense spending as inadequate and suggested that Taiwan's military budget be increased to 10 percent of its gross domestic product (GDP). According to military experts, 10 percent of GDP would account of 84 percent of total government expenditure, which even militaristic authoritarian states cannot achieve. The Ministry of National Defense declined to comment. 

 

October 2: 

Defense contractor Raytheon has been accused of overcharging for arms sales, causing losses to allied nations, drawing international attention. The Ministry of National Defense stated that the U.S. Department of Justice has reached a plea deal with the company, and all ill-gotten gains will be returned to Taiwan. This incident indirectly confirms that Raytheon's arms sales to Taiwan involve fraud.

 

October 2:

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will hold its Executive Committee meeting in Vancouver in November. Taiwan has been applying for membership since 2021 but has yet to succeed. Minister without portfolio and Chief Negotiator Jenny Yang assessed that if Taiwan cannot join, it may limit industrial competitiveness, potentially resulting in a 1.6 percentage point loss in GDP growth in the long term. Minister of Foreign Affairs Lin Chia-lung reiterated his call for member countries to handle Taiwan's application fairly and objectively without considering unrelated political factors. 

 

October 2:

Following President Lai Ching-te's directive to strengthen defense resilience, police and fire departments have been included in the call-up training for the first time. However, many reservists who received the call-up notification mistook it for a scam, leading to a flood of verification calls to local civil affairs offices. In some counties and cities, the attendance rate for the call-up was only 40 percent, with grassroots officials believing the government is moving too quickly without forming a consensus among the public. 

 

October 4:

In an interview with the Economist, Navy Commander Tang Hua described the People's Liberation Army's (PLA) "python strategy" under the Lai administration, which involves slowly but steadily increasing military presence around Taiwan. According to Tang, The PLA is prepared to blockade Taiwan at any time if it wishes. Taiwan has shown restraint to avoid giving Beijing an excuse to initiate a blockade or conflict. 

 

October 4:

According to a report published by the International Crisis Group, a well-known international non-governmental organization (NGO), President Lai has adopted a tougher stance on Taiwan's de-facto independence since taking office, prompting Beijing to increase pressure on Taiwan. To avoid further escalation of tensions, President Lai himself should declare that cross-strait affairs will be handled according to the Constitution of the Republic of China and Act Governing Relations between the People of the Taiwan Area and the Mainland Area and refrain from using the Constitution as a basis to define Taiwan's sovereignty as excluding the mainland.

Taiwan Weekly is a newsletter released every week by Fair Winds Foundation and Association of Foreign Relations which provides coverage and perspectives on the latest developments in Taiwan.

The conclusions and recommendations of any Taiwan Weekly article are solely those of its author(s) and do not reflect the views of the institutions that publish the newsletter.


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