ISSUE 299                                                                                          June 16, 2025
Taiwan Strait War Game Exposes Dilemma of
Abandoning Territorial waters
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In a civilian war game simulation over the Taiwan Strait, whether the United States and Japan would intervene hinges on the cause of the conflict and Taiwan's determination to defend itself.
Featured Opinion

Taiwan Strait Simulation: Two Key Factors Will Determine U.S. Intervention

 

The Center for Peace and Security at the Taipei School of Economics and Political Science Foundation held a 2025 Taiwan Strait defense wargame, which concluded yesterday. Facing a simulated mainland Chinese military invasion, former U.S. Pacific Commander Admiral Dennis Blair emphasized that American intervention in a Taiwan Strait war hinges on two key factors: the cause of the conflict and Taiwan’s own will to defend itself. A participant representing Japan noted that while the Self-Defense Forces are unlikely to take the initiative, they could play a supporting role based on the U.S.-Japan alliance.

Featured Opinion
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A major espionage scandal has emerged within the ruling party, with senior aides accused of long-term leaks to mainland China. A thorough internal investigation is needed to address this national security vulnerability.

Espionage Scandal in the Ruling Party Remains Insufficiently Investigated, Leaving National Security Gaps

 

Former Democratic Progressive Party (DPP) senior staffer Huang Chü-jung allegedly exploited his political connections to infiltrate the inner circles of the vice president and minister of foreign affairs, stealing sensitive information on overseas trips and meetings with diplomatic allies and transmitting it to mainland China. Mainland authorities reportedly considered the intelligence to be of “rare and high value.” This case—of mainland Chinese espionage penetrating both the Office of the President and the Ministry of Foreign Affairs—is a severe blow to the ruling party, which often accuses opposition figures of being pro-China. It also exposes a grave breach in Taiwan’s national security that could indicate the presence of more undiscovered agents. President Lai Ching-te must demand a full investigation by prosecutors and national security agencies.

Featured Editorial
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From Internet celebrity Holger Chen to Shen Po-yang and Chang Li-chi, despite different views, all have highlighted the unreliability of anti-China rhetoric. What the public truly needs is cross-strait peace.

DPP's "Anti-China" Stance Reveals Hypocrisy and Double Standards

 

President Lai Ching-te, in his capacity as chairman of the Democratic Progressive Party (DPP), publicly and directly endorsed Legislator Shen Po-yang—a rare and bold political move. But viewed through the lens of cross-strait dynamics, what President Lai seems to be defending is not just Shen, the individual, but the DPP’s long-cultivated “combat China to protect  Taiwan” narrative. He may fear that this carefully crafted message could unravel just before the upcoming wave of legislative recalls.

This Week in Taiwan
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The American Chamber of Commerce in Taiwan released its 2025 White Paper, criticizing unfair U.S. tariffs on Taiwan, calling for policy adjustments and emphasizing that stable and clean energy is key to attracting foreign investment.

June 9:

According to a report by the United Daily News, the Taiwan Semiconductor Manufacturing Company (TSMC) is realigning its overseas expansion priorities. The construction team has been instructed to prioritize the Arizona plant in the United States, while its second plant in Kumamoto, Japan, and the facility in Dresden, Germany, will be delayed. The supply chain confirmed that it has received notifications to accelerate Arizona-related support projects.

 

June 9

The Ministry of Finance (MOF) released the latest import-export statistics. Due to the United States temporarily suspending reciprocal tariffs and overseas clients rushing orders, Taiwan's exports in May exceeded the $50 billion mark for the first time, reaching a record high of $51.7 billion. However, the MOF cautioned that client demand may have been front-loaded, signaling an early arrival of an export "autumn."

 

June 10

The investigation of an espionage involving infiltration of the Office of the President has concluded. Huang Chu-jung, a former senior member of the Democratic Progressive Party (DPP), was allegedly recruited by mainland China and, through former party staffer Chiu Shih-yuan, collected classified national information from presidential staff consultant Wu Shang-yu and secretary Ho Jen-chieh to Secretary-General Joseph Wu of the National Security Council (then Minister of Foreign Affairs). They reportedly received several million New Taiwan dollars. The Taipei District Prosecutors Office has indicted four individuals under the Classified National Security Information Protection Act and other charges, seeking prison terms from five to over nine years.

 

June 10

The American Chamber of Commerce released its 2025 Taiwan White Paper, stating clearly that the new U.S. tariffs on Taiwan are unfair and urged Washington to revise its tariff policies. It also commented on Taiwan's entry into a nuclear-free energy era in May, stressing that a stable, reliable, and clean energy supply is a key prerequisite for attracting foreign investment.

 

June 11:

Dubbed a "chief of the general staff" level, the civilian-run Taiwan Strait Defense Wargame invited retired senior military officers from the United States, Japan, and Taiwan to participate for the first time. In the simulation, the People's Liberation Army (PLA) launched a surprise amphibious assault from the east and separately attacked outlying islands, including Penghu. The Taiwan team admitted Penghu fell faster than expected. The control team demanded a redo of the exercise the following day as a "make-up test."

 

June 12:

Mainland China rolled out another round of measures to "benefit Taiwan." The People's Bank of China announced 12 new initiatives to build Fujian Province into a cross-strait integration demonstration zone. These include allowing Taiwanese citizens to buy property in the region and conduct cross-border renminbi settlements, reducing currency exchange costs and making property purchases more accessible.

 

June 12: 

Taiwan national Chang Li-chi, currently teaching in China, was stripped of his Taiwan status by the Mainland Affairs Council (MAC) for previously obtaining a People's Republic of China residence permit. Chang argued that the permit had expired and only after its expiration did the MAC issue its legal interpretation, retroactively declaring his status unlawful and making him feel like a "person wandering Earth." The MAC stated that the violation stands once discovered, regardless of whether the permit is still valid.

 

June 12: 

Chiang Ya-chi, the deputy representative designate of the Taipei Representative Office in the United Kingdom, is facing allegations of academic fraud. She allegedly obtained funding for several government research projects using a falsified academic degree. A member of the public reported her to the Taipei District Prosecutors Office, citing document forgery and fraud. The prosecution has opened an investigation.

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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