ISSUE 297                                                                                          June 2, 2025
Huang Supports Nuclear Power, Accused of Being Chinese Communist Sympathizer
● This Week in Taiwan: 
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NVIDIA CEO Jensen Huang suggested that Taiwan invest in nuclear energy, sparking online backlash from Democratic Progressive Party (DPP) supporters.
Featured Editorial

Huang Backs Nuclear Power in Taiwan, Criticized by DPP Supporters as Pro-China

 

When NVIDIA chief executive Jensen Huang said that “Taiwan should invest in nuclear power,” it set off a firestorm. Online criticism and smearing erupted. For someone as seasoned as Huang to appear unaware of a certain sensitive “local sentiment” in Taiwan made him seem like a political novice.

Wherever he goes in Taiwan, Huang creates a stir. As the "godfather" and public face of artificial intelligence (AI), every move and word of his is scrutinized. His speeches, billion-dollar banquets, and down-to-earth visits to night markets have all captivated the island. Online, there’s been virtually no criticism—until now.

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From strong appreciation to awkward passivity, the New Taiwan dollar's exchange rate turmoil stems from the dual pressure of U.S.-Taiwan negotiations and President Donald Trump's policies.

U.S.-Taiwan Tariff Negotiations Yet to Be Settled, NT Dollar Still Appreciated Significantly

 

Without surprise, the New Taiwan dollar broke into the NT$29 per U.S. dollar territory on May 26. Unlike the aggressive rally seen in early May that made currency markets a nationwide focus and even triggered a rush to exchange foreign currency, this time the appreciation felt like a "smooth entry"—with low trading volume, no desperate intervention by the central bank, and minimal public attention, as if everyone had long accepted this outcome. Behind it lies not only a weakening U.S. dollar globally, but also Taiwan's awkward position as it strives to engage in trade talks with the United States.

Featured Opinion
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Kuomintang (KMT) Chairman Eric Chu announced that he will not run for party chairman, shifting the pressure towards Taichung Mayor Lu Shiow-Yen. Analysts note strong internal support but acknowledge significant challenges ahead.

Chu Looks Forward to Passing the Baton: Who Will Take Over the KMT Leadership?

 

​In a media interview, Chairman Eric Chu of the Kuomintang (KMT) stated that the schedule for the party chair election will remain unchanged, with the announcement in July, the election in September, and the handover in October. “I sincerely hope for a smooth transition,” he said. Chu also noted that the four outstanding mayors of directly governed municipalities within the party are exceptional talents and key figures in future leadership contests.

This Week in Taiwan
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The Mainland Affairs Council will impose comprehensive restrictions on public officials traveling to China. All official trips to the mainland, Hong Kong, and Macau will be subject to regulatory control.

May 23:

The Legislative Yuan recently passed two referendum proposals, one opposing the abolition of the death penalty and another supporting the restart of the Third Nuclear Power Plant. According to the Referendum Act, the vote is set for August 23. However, the Central Election Commission (CEC) ruled that the referendum case against the death penalty does not qualify as a "major policy initiative or referendum" and blocked it. Academics question the CEC's authority in rejecting referendums passed by the Legislative Yuan, raising concerns over its independence.

 

May 25

The energy supply gap has come into focus after Taiwan phased out nuclear power. Controversy erupted when it was revealed that the Hsingta Power Plant's coal-fired units No. 3 and No. 4, lacking operational permits, were secretly running. Additionally, environmental groups found that the retired gas unit No. 5 at Dalin Power Plant had been restarted multiple times since its de-commissioning in late 2022. The Taiwan Power Company's decision to activate outdated units without proper authorization has sparked public debate.

 

Meanwhile, NVIDIA CEO Jensen Huang publicly urged Taiwan to invest in nuclear energy, arguing that energy sources should not be stigmatized.

 

May 26

The Democratic Progressive Party (DPP) has run a strong recall campaign against opposition lawmakers, raising questions about whether it will impact the Kuomintang (KMT) chairmanship election scheduled for September. KMT Chairman Eric Chu stated in an interview that the election timeline remains unchanged and expressed willingness to hand over leadership.

 

Regarding speculation that Taichung Mayor Lu Shiow-yen could be a strong candidate for the position, Chu noted that all four special municipality mayors within the party are outstanding candidates. However, some voices within the party worry that holding the party election alongside the recall vote could face pressure both internally and externally and call for postponement.

 

May 26

Military academies have struggled with enrollment in recent years, leading to an unprecedented increase in female admissions to fill vacancies. This year, the Management College of National Defense University admitted three times the planned number of female students, ultimately enrolling 60 males and 90 females, making women nearly 40 percent more than men. A Ministry of National Defense official privately revealed that male applicants have consistently performed poorly in both numbers and grades, leading to a shift in admissions towards female candidates.

 

May 27:

The Executive Yuan slashed local subsidies by 25 percent, prompting the Taipei City Government to file an administrative appeal demanding full compensation with interest. Several other local governments, including New Taipei, Taoyuan, and Taichung, are considering similar actions.

 

Meanwhile, the Ministry of the Interior proposed subsidizing the renaming of 300 roads named Zhongzheng (referring to late President Chiang Kai-shek) across Taiwan, causing backlash. Critics argue that the central government has funds for renaming roads but not for supporting marginalized communities. A Yahoo! Taiwan poll showed that 75.8 percent of respondents opposed the renaming, calling it a waste of public resources.

 

May 28:

The tariff policies of President Donald Trump of the United States has disrupted the global economy. The Directorate-General of Budget, Accounting and Statistics (DGBAS) slightly revised Taiwan's projected economic growth rate from 3.14 percent to 3.1 percent. However, strong demand from manufacturers boosted growth in the first half of 2025 to 5.35 percent, though a sharp decline to 1 percent is expected in the latter half of the year.

 

May 29: 

The Mainland Affairs Council plans to impose stricter regulations on public officials traveling to China. Minister Chiu Chui-cheng stated in the Legislative Yuan that a draft amendment bill is under review to include all government personnel visiting the mainland, Hong Kong, or Macau under regulatory oversight, although ordinary citizens will not be investigated unless reported. Chiu also supports expanding the definition of retired generals to ensure that their actions, when traveling to the mainland, align with national expectations.

 

May 29: 

Taiwan's currency strengthened significantly against the U.S. dollar, marking its highest level in two years. The New Taiwan dollar appreciated by NT$2.088 in May (a 6.98 percent rise), the largest single-month gain in over 36 years. Since the beginning of the year, it has increased by NT$2.852 (9.53 percent), outperforming other major Asian currencies.

 

The Financial Supervisory Commission reported that the appreciation led to significant foreign exchange losses for life insurance companies, with the sector's profitability plunging 64.4 percent. Insurers spent a record-high NT$120 billion (about US$4.0 billion) from foreign exchange reserves to offset losses.

Published since 2019 by the Fair Winds Foundation and Association of Foreign Relations, Taiwan Weekly provides in-depth report and analysis of the major issues facing 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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