May 17:
The Third Nuclear Power Plant was decommissioned and is set to be transformed into a solar power facility. However, Taiwan has just entered the era of nuclear-free power, and the proportion of thermal power generation at night frequently exceeds 90 percent. Even the Kaohsiung Hsinta Power Plant's third and fourth coal-fired units, whose operating permits expired last year, were secretly reactivated. Premier Cho Jung-tai claimed that after the Third Nuclear Power Plant's shutdown, the Taiwan Power Company's reserve capacity ratio could reach 10 percent, ensuring safety. This guarantee was immediately challenged.
May 17:
Former U.S. Army Pacific Commander Mark Montgomery stated at a Congressional hearing that the U.S. joint training contingent in Taiwan consists of 500 personnel and should be expanded to 1,000. The U.S. government has never previously confirmed the exact number of American troops stationed in Taiwan. He also advocated for pre-deploying ammunition in Taiwan.
At the same time, a Foreign Affairs journal article warned that the United States may be losing balance in its deterrence strategy, and excessive deterrence could push China towards unification by force. It further argues that the United States should publicly criticize Taiwan leaders for implying support for Taiwan independence, given the U.S. official stance against it.
May 19:
In an interview, President Lai Ching-te used an analogy of "merger" to describe cross-strait relations, stating that China is the larger company while Taiwan is the smaller one. If a large company wants to acquire a smaller one, then the larger company should offer terms. His remarks were criticized by opposition parties as selling out Taiwan. Even Lin Cho-shui, a key Democratic Progressive Party (DPP) figure and independence advocate, argued that this analogy could imply a tacit acceptance of the legitimacy of a merger, which is disadvantageous for Taiwan.
May 19:
The Office of the President announced diplomatic appointments: Professor Chen Mu-min as ambassador (representative) to India, former Legislator Freddy Lim as ambassador (representative) to Finland, and Professor Chiang Ya-chi of the National Taiwan Ocean University as minister (deputy representative) to the United Kingdom. Public opinion questioned the qualifications of Lim and Chiang, noting that Lim has not fulfilled compulsory military service due to anxiety disorder, and Chiang was accused by then-Ministry of Science and Technology of academic fraud. Critics argue that these appointments could severely impact foreign service morale and Taiwan's international reputation.
May 20:
President Lai gave a speech marking his first anniversary in office, expressing a commitment to fostering dialogue between political parties and strengthening cooperation. he instructed the national security team to plan a briefing for opposition leaders on key national security issues. Notably, his speech did not mention cross-strait relations, and when responding to media, he stated that "invaders are the true destroyers of peace."
May 21:
Bank of America adjusted its currency forecast for East Asian currencies, predicting that the New Taiwan Dollar (NTD) will appreciate from its current level of around NT$30 to NT$28.8 per U.S. dollar in the fourth quarter and continue rising to NT$27.6 next year.
Reuters reported that in response to concerns about excessive appreciation, several exporters recently received phone calls from the Central Bank, instructing them to reduce their foreign exchange sales to ease pressure on the currency.
May 21:
On his first anniversary in office, President Lai announced plans to establish a sovereign wealth fund as a national-level investment platform. However, `the Central Bank and Ministry of Finance opposed the idea, arguing that they are not suitable management entities and rejecting the use of foreign exchange reserves for the fund. Four months prior, the National Development Council informed the Legislative Yuan that there was no need to establish such a fund. Opposition parties worry that the fund might align too closely with U.S. policies and investments.
May 21:
The Legislative Yuan froze part of the central government budget, requiring the Executive Yuan to cut NT$63.6 billion (about US$2.1 billion). In response, the Executive Yuan decided to uniformly reduce general subsidies to local governments by 25 percent, triggering strong backlash. Scholars question the legality of this move, suggesting that local governments could file administrative lawsuits against the central government.
