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Lai Administration Rejects U.S. Proposal,
Puts Forth “Taiwan Model”
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In an effort to counter tariff impact, Vice Premier Cheng Li-chun is promoting the “Taiwan model” to help the United States build technology parks, despite questions of feasibility. |
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“Taiwan Model” to Face Challenges in the U.S.
Vice Premier Cheng Li-chun has put forward the idea of a “Taiwan model,” aiming to export Taiwan’s decades of experience in developing science parks to the United States, assisting Washington in building industrial clusters and creating “quasi-science parks.” It looks like sending a “Team Taiwan” to play an “American Cup.” But Taiwan’s science parks are the institutional product of four decades of accumulation. Can such a model really be transplanted and replicated abroad? Could it even serve as a bargaining chip in negotiating tariff concessions with the United States?
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U.S. Secretary of the Treasury Scott Bessent claims that more than 90 percent of the world’s advanced chips rely on Taiwan. Experts criticize the United States for anxiety and double standards. |
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Chip Risks Rooted in Taiwan? U.S. Strategic Anxiety and Double Standards
U.S. Secretary of the Treasury Scott Bessent recently hit the nail on the head, publicly stating that “the single largest point of risk to the world economy is that 99 percent of high-performance chips are produced in Taiwan.” On the surface, this remark appears to express concern over a global supply-chain imbalance; in reality, it exposes American strategic anxiety and double standards in the technology field. In today’s globalized era, what kind of geopolitical calculation and contradictory mindset lies behind labeling a region’s industrial advantage as a “risk”?
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Testing of the Hai Kun submarine has been repeatedly delayed. National Security adviser and project leader Huang Shu-kuang tendered his resignation, leaving the program mired in political and military turmoil. |
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Another Key Figure Resigns: Taiwan's Indigenous Submarine Project at Risk
Taiwan’s Indigenous Defense Submarine (IDS) prototype Hai Kun has failed to complete its sea trials as scheduled in September. On September 28, retired admiral Huang Shu-kuang, National Security Council adviser and the leading figure behind the IDS project, tendered his resignation. The timing has raised questions about whether the program—and even Taiwan’s broader defense planning—could be thrown into disarray, leaving President Lai Ching-te and the Ministry of National Defense with a political and military headache.
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According to a Taipei School of Economics and Political Science Foundation war game report, a surprise attack by the People’s Liberation Army (PLA) on Taiwan remains a possibility. Deployments by the PLA Eastern Theater Command warrant Taiwan’s vigilance. |
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September 27:
The Taipei School of Economics and Political Science Foundation completed its summary report on the "Taiwan Strait Defense Wargame Simulation," stating that the possibility of the People's Liberation Army (PLA) transitioning from drills to actual combat and launching a surprise attack cannot be ruled out. The PLA already has the capability to routinely deploy naval and air forces in the Pacific east of Taiwan. Taiwan's ngstanding strategy of preserving sea and air power in the eastern region warrants serious reassessment. |
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September 27:
The Ministry of Economic Affairs (MOEA) released its latest national power supply and demand report, estimating an average annual electricity demand growth rate of about 1.7 percent over the next decade, a sharp drop from the forecast of 2.8 percent last year. The Energy Administration, MOEA, noted that although economic growth was strong in the first half of the year, electricity consumption declined, marking a rare decoupling. Whether the forecasting model needs adjustment remains to be seen. |
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September 28:
The Office of the President announced that Huang Shu-kuang, a key figure in Taiwan's indigenous submarine program and a National Security Council advisor, resigned due to family reasons. Media reports suggest that Huang left because of disagreements with the Navy over the submarine project. Several key personnel have stepped down from the program, and Taiwan Shipbuilding Corporation has changed chairpersons three times. At the Legislative Yuan, Minister of National Defense Wellington Koo admitted for the first time that preparations and testing for the submarine's maiden voyage are behind schedule, making delivery before November a challenge. |
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September 30:
The Asian Development Bank released its "Asian Development Outlook 2025," revising downward the economic growth forecasts for Asian economies this year and next. It noted that with U.S. President Donald Trump's tariffs taking effect, the previously steady growth in the first half of the year is beginning to weaken. Taiwan's gross domestic product (GDP) growth forecast for the next year was lowered from 3 percent to 2.3 percent. |
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September 30:
The fifth round of in-person U.S.-Taiwan tariff negotiations concluded. Vice Premier Cheng Li-chun, who led the talks, explained that Taiwan proposed a "Taiwan model" for expanding investment in the United States, involving enterprise-led planning supported by government financial guarantees, aiming to build industrial clusters through government-to-government cooperation. She sensed a positive response from the United States. Vice Premier Cheng also firmly stated that Taiwan would not accept a "50-50 chip split" proposal. |
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October 1:
NVIDIA is interested in establishing an overseas headquarters in Taipei, but land acquisition issues have created uncertainty. To retain NVIDIA, the Taipei City Government urged Shin Kong Life Insurance, which holds the land rights, to terminate its contract, and offered two alternative plots for NVIDIA's consideration. |
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October 2:
During the Kuomintang (KMT) chairmanship debate, candidates discussed the party's cross-strait policy. Legislator Lo Chi-chiang and former Legislator Cheng Li-wen emphasized the importance of the "1992 Consensus" for cross-strait exchanges. Hau Lung-bin, a former Taipei mayor and former vice chairman, advocated for equidistant friendliness towards both the United States and China, pro-America without submission, pro-China without sycophancy, and friendly with Japan without flattery. Cho Po-yuan, former Changhua County executive, proposed inviting Chinse President Xi Jinping and U.S. President Donald Trump to Taiwan to make it a starting point for regional peace. |
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October 2:
A former employee of Tokyo Electron (TEL) was implicated in a leak involving the Taiwan Semiconductor Manufacturing Company's (TSMC) 2nm technology. According to Untied Daily News, to appease TSMC's anger, TEL raised the level of disciplinary action to include the chairman and president of its Taiwan branch and proposed a compensation plan. Cooperation between the two companies is expected to return to normal. |
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