ISSUE 302                                                                                          July 7, 2025
President Lai's 10 Speeches on
National Unity Turn into a Disaster 
● This Week in Taiwan: 
Other Important Events This Week 




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President Lai Ching-te's 10 speeches on national unity repeatedly sparked controversy due to frequent verbal missteps and jokes. They not only resulted in a series of blunders but have also stirred social division and raise concerns about democratic backsliding. 
Featured Editorial

With Errors in Every Speech, President Lai Exposes His Own Weakness  

 

President Lai Ching-te has delivered four out of his planned 10 speeches on national unity, and each one has sparked controversy. Rather than rallying the nation, these speeches have ranged from historically inaccurate gaffes to divisive rhetoric that betrays democratic principles. Instead of elevating public support in the face of an ongoing recall campaign against opposition lawmakers, President Lai’s high-profile address series has only served to expose his weaknesses—and those of his inner circle. 

Featured Editorial
taiwanweekly2019@gmail.com
Former Taipei Deputy Mayor Peng Cheng-sheng accused prosecutors of coercive interrogation, harshly criticizing that the judiciary as a political enforcer, and judicial human rights have become mere hollow slogans. 

Ko's Case Led to a Death, Shattering Illusion of Judicial Human Rights  

 

Since August last year, Taiwan's judicial system has been under intense public scrutiny following aggressive investigations into the controversial Living Mall development project in Taipei. The case, which implicates former Taipei Mayor and 2024 presidential candidate Ko Wen-je, has ignited heated debate over the integrity of the judiciary—particularly as prosecutors stand accused of coercive interrogation tactics and political motivations.  

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taiwanweekly2019@gmail.com
The New Taiwan Dollar surged significantly on two occasions, both immediately following trade negotiations with the United States, suggesting alignment with American interests. This trend threatens Taiwan's export industry, with critics warning that Taiwan could "lose its pants" economically. 

NTD Surge: Taiwan Loses Leverage in U.S. Negotiations 

 

As the July 9 deadline for the U.S. “reciprocal tariff” moratorium nears, reports suggest that Washington and Taipei are close to reaching a deal. Deputy Premier Cheng Li-chun announced “constructive progress” in the negotiations and expressed hopes for a “mutually beneficial” outcome. Yet the timing of her optimistic remarks has raised eyebrows: why has the New Taiwan Dollar (NTD) been appreciating so sharply just as a deal appears imminent? 

This Week in Taiwan
taiwanweekly2019@gmail.com
The Taiwan Institute of Economic Research announced that the manufacturing business climate indicator for May has dropped to a blue light, signaling recession. This marks Taiwan's first return to recession status in 16 months. 

June 29: 

President Lai Ching-te delivered the third speech on national unity, focusing on the constitutional system. He claimed that the purpose of the mass recall movement was to restore national order. His speech contained several factual inaccuracies, including the assertion that Taiwan did not send representatives to participate in the convention to draft the Republic of China Constitution. He also stated that former President Ma Ying-jeou referred to himself as "region executive" during the 2008 visit of Chairman Chen Yun-lin of the Association for Relations Across the Taiwan Straits (ARATS), sparking criticism. 

 

June 29: 

The Office of Trade Negotiations, Executive Yuan, confirmed that officials went to the United States on June 25 to hold the second round of consultations on reciprocal tariffs. Reports indicate that the talks touched on the critical “Section 232” related to chip tariffs. During the second round of consultations, the New Taiwan Dollar (NTD) surged dramatically. However, the list of participating government agencies provided by the Executive Yuan did not include the Central Bank. 

 

June 30: 

Taiwan and the United Kingdom signed three agreements under the Enhanced Trade Partnership (ETP) covering digital trade, energy and net zero emissions, and investment. Notably, the digital trade and energy agreements are Taiwan’s first in these sectors signed with a foreign country. 

 

July 1 :

In the Taipei District Court’s hearing of the Living Mall case, the court was preparing to examine an interrogation disk involving former Taipei Deputy Mayor Peng Chen-sheng. However, news broke before the hearing that Peng’s wife had died by suicide. Peng wept in court and harshly criticized the prosecution. He claimed that he was wrongfully accused and had pleaded guilty only to secure bail and reassure his wife. He also revealed that he had considered suicide while in detention to prove his innocence. Former Taipei Mayor Ko Wen-je was also brought to court and apologized for the suffering his team endured.

 

July 1 :

President Lai delivered his fourth speech on national unity, this time on national defense. He criticized China's ambitions as extending beyond annexing Taiwan and stated that the People's Liberation Army's (PLA) increased military spending was unrelated to which party governs Taiwan. He also accused the opposition of freezing a record-high portion of the defense budget. The opposition countered that only 1 percent of the budget was cut, and apart from the Hai Kun submarine, which could not be unfrozen due to incomplete sea trials, the rest was fully restored. They accused Lai of spreading falsehoods. 

 

July 1 :

The Taiwan Institute of Economic Research released the May manufacturing business climate indicator. Influenced by the sharp appreciation of the NTD against the U.S. dollar, year-on-year growth rates for export orders, imports, and producer prices all shrank significantly. The indicator dropped from a yellow-blue light (signaling sluggish growth) to a blue light (signaling recession) marking the first blue light in 16 months.  

 

July 3:

The high-profile cross-strait swimming event between Kinmen and Xiamen was reportedly halted by central authorities. The Mainland Affairs Council stated that this year's event was organized by the Xiamen city government and involved crossing the median line of the Kinmen-Xiamen maritime zone, raising sensitive security concerns. The government will carefully assess whether the event should proceed. 

 

July 4:

In his fourth speech on national unity, President Lai called on domestic airlines to upgrade military personnel to business class. China Airlines and Eva Air’s labor unions issued a joint statement opposing the government's attempt to shift costs onto businesses. It was later reported that the Ministry of Economic Affairs asked the food industry to offer discounts to military personnel, prompting backlash from private enterprises. The opposition argued that raising military salaries would be a more meaningful measure but claimed that the ruling Democratic Progressive Party (DPP) opposed it. 

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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