ISSUE 311                                                                                              September  8, 2025
National Security Team Reshuffling Draws Criticism
Over Unqualified Youth Appointments
● This Week in Taiwan: 
Other Important Events This Week




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The National Security Council is facing controversy over young appointments. Accusations of nepotism and lack of professionalism raise concerns about risks to Taiwan’s security.
Featured Editorial

National Security Appointments Should Not Serve as Stepping Stones for President Lai’s Protégés to Pad Their Résumés

 

The Office of the President recently announced that Deputy Secretaries-General Hsu Ssu-chien and Liu Te-chin of the National Security Council (NSC) will assume new roles as senior advisors, while Taipei City Councilor Vincent Chao and Spokesman Lii Wen of the Office of the President will become NSC deputy secretaries-general, effective immediately. Together with incumbent Deputy Secretary-General Lin Fei-fan, all three are under 37, a youthful shift that has drawn attention. While granting opportunities to younger generations is commendable, the deputy secretary-general position—tasked with involvement in defense, diplomacy and cross-strait policy—is significant, and should not serve as a sinecure for political patronage or a mere stepping stone for political résumé-building.
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President Donald Trump of the United States claimed credit for World War II victory, while President Lai Ching-te has downplayed history, stirring controversy.

Trump Claims Credit for Allied Victory in WWII, President Lai Behaves as if Representing Defeated Nation 

 

President Lai Ching-te avoided discussion of the Second Sino-Japanese War for more than half a year, effectively ceding narrative control to Chinese President Xi Jinping, and only awkwardly made it past the 80th anniversary of the September 3 Victory Day. But when the United States also sought to highlight its contribution to the war effort, the contrast made President Lai’s silence appear even more absurd, as though he were taking the stance of a defeated power.
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U.S. restrictions on the Taiwan Semiconductor Manufacturing Company’s (TSMC) Nanjing plant may allow mainland Chinese competitors to gain ground.

U.S. Restrictions on TSMC’s Production Capacity in Mainland China May Only Strengthen Competitors

 

The U.S. Department of Commerce has announced that by the end of this year it will revoke the Validated End-User (VEU) license granted to Taiwan Semiconductor Manufacturing Company (TSMC) for its Nanjing fab. The license previously allowed TSMC to import American equipment and components more quickly. Going forward, all related exports will require case-by-case approval. This measure is widely seen as an escalation of American semiconductor controls, ostensibly to restrict mainland China’s access to mature process capacity. Yet the practical effect may be unexpected: by limiting the ability of foreign firms such as TSMC and Samsung to expand mature process production in the mainland, Washington may inadvertently create greater market opportunities for domestic chipmakers—an outcome potentially misaligned with American interests.
This Week in Taiwan
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Items in Taiwan’s defense budget faces major cuts. Delays in construction of the Hai Kun submarine and light frigates could weaken naval capabilities.

August 31:

The national defense budget for the coming year has been proposed, revealing delays in the Navy's underwater and surface combat vessel construction plans. Two prototype light frigates, originally scheduled for completion next year, have been postponed to 2028. The prototype submarine Hai Kun was initially allocated NT$9.1 billion (about US$298 million) for next year, but only NT$1.4 billion (about US$47.6 million) was actually budgeted. The follow-up mass production budget was originally set at NT$17 billion (about US$557 million), but only NT$11.9 billion (about US$391 million) was approved.

 

September 1:

The Office of the President announced a reshuffle in national security personnel. Deputy Secretaries-General Hsu Szu-chien and Liu Te-chin of the National Security Council (NSC) will become senior advisors. Taipei City Councilor Vincent Chao and Spokesman Lii Wen of the Office of the President will assume NSC deputy secretary-general roles. Former DPP polling center director Cheng Chun-sheng will become deputy secretary-general of the Office of the President. Chao, Lii, and incumbent Deputy Secretary-General Lin Fei-fan are all under 37 years old, prompting opposition concerns over the "immaturity" of the appointments.

 

September 1:

The Ministry of Labor released updated unpaid leave statistics. Some 245 companies are implementing unpaid leave, affecting 4,863 workers, an increase of 929 from the previous report. Of these, 118 companies and 3,055 workers are affected due to U.S. reciprocal tariffs, with the machinery and equipment sector hit particularly hard.

 

September 2:

The Taiwan Institute of Economic Research released the manufacturing business climate indicator for July. Due to the dual impact of U.S. reciprocal tariffs and currency appreciation pressure, the indicator showed a "blue light" (signaling recession) for the third consecutive month. The proportion of industries showing blue light surged from 66.7 percent in June to 87.8 percent, highlighting the severity of the manufacturing downturn.

 

September 2:

The Taiwan Semiconductor Manufacturing Company (TSMC) confirmed that it received notice from the United States revoking its Nanjing plant's "validated end-user" status. The plant will revert from the "green channel" model to case-by-case approval. TSMC said it is assessing the situation and taking appropriate measures. The Ministry of Economic Affairs stated that the Nanjing plant accounts for only about 3 percent of TSMC's total capacity and does not affect Taiwan's overall industrial competitiveness. 

 

September 3:

On the 80th anniversary of victory in the War of Resistance Against Japan, Communist China held a grand military parade. President Lai Ching-te stated that the people of Taiwan love peace, and Taiwan does not commemorate peace with guns. He presided over the Autumn Memorial Ceremony at the Martyrs' Shrine and the Armed Forces Day commendation event but did not mention the war against Japan, instead referring to it as the "end of war," stirring controversy. Former Veterans Affairs Council Minister Lee Hsiang-chou and Deputy Minister Lee Wen-chung criticized the government for being timid and shrinking from celebrating the victory.

 

September 4:

The opposition revealed that classified bidding documents from the Jiupeng Base in Pingtung, dubbed "Taiwan's Area 51" were leaked and sold by internal personnel at the National Chung-Shan Institute of Science and Technology (NCSIST), raising national security concerns. The NCSIST admitted the leak. The Military Police Command filed a case and referred it to prosecutors. The individuals involved have been detained and denied visitation.

 

September 5:

Ko Wen-je, former chairman of the Taiwan People's Party, who had been detained without visitation for a year due to involvement in the Living Mall case, is to be released on bail. The Taipei District Court held a detention hearing and ruled for release on NT$70 million bail (about US$2.2 million). He is restricted from leaving the country or going to sea and must undergo electronic monitoring. Prosecutors are considering whether to appeal.
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.

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