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Before entering negotiations with the United States, President Lai Ching-te must be vigilant to prevent U.S. President Donald Trump from leveraging such diplomatic engagements as a means to drive division within Taiwan and to erode its strategic high-tech and industrial capabilities.

President Lai Reveals His Cards, Raising Fears That Taiwan Could Be Divided By Trump

 

President Lai Ching-te has announced plans to begin negotiations with the United States for "zero tariffs" and to form a "Team Taiwan for Investing in America." With over fifty countries lining up to negotiate with the United States, the White House has confirmed that Taiwan has initiated contact. Some legislators from the ruling party have even suggested sending former President Tsai Ing-wen or Vice President Hsiao Bi-khim to lead the negotiations. As the stock market crashes, order cancelations, factory closures, unpaid leave, and layoffs loom, if our delegation sits at the table, will they genuinely protect core national interests?

President Lai advocates for Taiwan to "decouple from China and align itself with the Global North." However, in practice, this strategy primarily entails decoupling from China in favor of a closer alignment with the United States, reflecting an underlying assumption that an enhanced "Silicon Shield 2.0" will effectively ensure Taiwan's security.

President Lai Calls for Decoupling from China and Joining the Global North: Aspiring Cession to the U.S.?

 

The Lai administration's use of the supplementary document deadline appears to be a political maneuver, placing 140,000 mainland Chinese spouses and their second-generation descendants in Taiwan at risk of identity and existential insecurity.

Demand for Mainland Spouses to Prove Identity Suggests DPP Preparing for Political Purge

 

The immigration directive of President Lai Ching-te's administration has sparked widespread panic among the 140,000 mainland Chinese spouses and their Taiwan-born children, threatening their very status in Taiwan. The Democratic Progressive Party (DPP) administration's new policy requiring "supplementary proof of loss of original household registration" explicitly targets this group, driving many into bureaucratic dead-ends. This move exposes the hypocrisy and selective justice of Taiwan's democracy, turning the so-called "witch hunt" against mainland spouses into a full-blown political purge.

President Trump’s announcement of reciprocal tariffs triggered a three-day decline in Taiwan’s stock market, resulting in a cumulative drop of nearly 4,000 points. In response, the National Financial Stabilization Fund announced its intervention to stabilize the market.

 

April 5:

According to foreign media, White House and Department of Commerce officials have been urging the Taiwan Semiconductor Manufacturing Company (TSMC) and Intel to reach an agreement to establish a joint venture to operate Intel's wafer manufacturing plant in the United States. TSMC will hold a 20 percent stake in the new company. TSMC stated that Intel is an important client and declined to comment on market rumors.

 

April 6:

In response to the United States imposing a 32 percent reciprocal tariff on Taiwan, President Lai Ching-te stated that Taiwan has no intention of imposing retaliatory tariffs and is willing to start negotiations with the United States from zero tariffs. He also mentioned plans to expand purchases from the United States, reduce the trade deficit, increase investments in the United States, remove non-tariff trade barriers, and address long-standing American concerns about high-tech product export controls and origin labeling issues. President Lai also proposed the concept of "decoupling from China and integrating with the Global North."

 

April 7: 

In response to U.S. tariff policies, the Executive Yuan proposed a NT$88 billion (about US$2.6 billion) support package for industrial and agricultural sectors. Premier Cho Jung-tai invited the ruling and opposition parties to discuss national policies. After the meeting, opposition parties expressed support, and Cho promised to report to the Legislative Yuan. However, due to a separate issue, the ruling Democratic Progressive Party (DPP) continued to block the agenda, delaying the report until April 11.

 

April 9: 

The Directorate-General of Budget, Accounting and Statistics, Executive Yuan, estimated that Taiwan's economic growth rate this year, impacted by U.S. tariff policies, could drop to 1.64 percent in the worst-case scenario and fail to maintain the 2 percent threshold. A commissioned study by the National Development Council projected an even lower worst-case scenario of 1.53 percent. The Central Bank's forecast in late March was 3.05 percent. Among major investment banks, Standard Chartered was the most pessimistic, predicting a 1.5 percentage point reduction in gross domestic product (GDP), while Nomura was relatively optimistic, estimating a 0.4 percentage point reduction.

April 9:

The National Immigration Agency (NIA), Ministry of the Interior, issued a mass notice requiring mainland Chinese spouses who have obtained Republic of China (Taiwan) citizenship to submit proof of renunciation of their original nationality within three months, or risk losing their citizenship. This includes individuals who have lived in Taiwan for over 30 years. The move was criticized for violating the principle of non-retroactivity in basic legal principles and for being institutionally discriminatory against mainland spouses. Following the controversy, NIA Director-General Chung Ching-kun unexpectedly applied for early retirement, with opposition parties accusing him of being a scapegoat.

 

April 10:

The opposition Kuomintang (KMT) convened party-affiliated local government leaders to discuss countermeasures against U.S. tariffs, proposing four strategies: expanding the relief package to NT$200 billion (about US$6.1 billion), boosting domestic demand, initiating international negotiations, and fostering central-local cooperation to face challenges. Chairman Eric Chu called for unity during this national crisis and urged President Lai to convene a national affairs conference. Meanwhile, the Executive Yuan confirmed that Premier Cho Jung-tai would still participate in the DPP campaign to recall opposition legislators over the weekend.

 

April 10:

Following U.S. President Donald Trump's announcement of reciprocal tariffs, the Taiwan Stock Exchange plummeted by 2,065 points on April 7, a 9.7 percent drop, both record highs. The market continued to fall for three consecutive days, with a cumulative drop of nearly 4,000 points. The National Financial Stabilization Fund announced its intervention to stabilize the market. Legislators questioned whether the market had entered a "bear market." Chairman Peng Chin-lung of the Financial Supervisory Commission (FSC) stated that, by definition, it had not reached that stage. Governor Yang Chin-long of the Central Bank also commented that while uncertainty remains high, concluding that the market has entered a bear phase is premature.

 

April 10:

The Ministry of Finance released March import and export statistics, showing that clients anticipated continued U.S. tariff measures and advanced shipments, producing exports of $49.5 billion, a record high for a single month. Exports to the United States reached $12.7 billion, which is also a record high, driven mainly by information and audio-visual products. The trade surplus for the first quarter totaled $23.6 billion, with a surplus of $22 billion with the United States, surpassing the $16.9 billion surplus with mainland China and Hong Kong for the first time.