ISSUE 352
July 6, 2026
U.S.: Help Taiwan Build a Drone Hive 
● This Week in Taiwan: 
Other Important Events This Week




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The proposed NT$210 billion drone arms procurement stirs controversy. Experts worry that rushed procurement could harm Taiwan.
Featured Opinion

Will Drone Arms Procurement Protect or Harm Taiwan?

 

The drone procurement program has once again become a political focal point in Taiwan. The administration of President Lai Ching-te has proposed the draft Special Act for the Procurement of National Defense Autonomous Unmanned Vehicles. During his visit to the United States, Speaker Han Kuo-yu met with U.S. officials, and the drone budget also became a topic of concern. However, excessive political maneuvering risks oversimplifying the issue into a binary question of "supporting or opposing national defense," thereby eliminating the space for professional discussion, which is not truly in Taiwan's best interest.

Featured Opinion
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Mainland China enforces its ethnic unity law. A scholar warns that cross-strait relations have entered a new battleground of identity. 

China's Ethnic Unity Law: Implications for Cross-Strait Relations

 

The Law on the Promotion of Ethnic Unity and Progress, which officially came into effect in mainland China on July 1, deserves attention not simply because it is a new piece of ethnic legislation, but because it reflects Beijing's effort to reshape a new cross-strait narrative through law.

Featured Editorial
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South Korea is making a nationwide gamble on AI chips, posing new challenges for Taiwan’s semiconductor advantage.

Taiwan-South Korea Chip Contest: Lai Administration Should Take the Offensive

 

At the end of June, the South Korean government joined forces with Samsung and SK Hynix to announce three unprecedented mega-projects. Together, these initiatives will raise total public and private investment to nearly US$1.2 trillion, creating a brand-new semiconductor cluster outside the Seoul metropolitan area that will become the country's second-largest semiconductor hub. In addition, South Korea plans to invest one quadrillion won in expanding a massive AI data center, making an all-out bid to secure leadership in the age of artificial intelligence.

This Week in Taiwan
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Chinese President Xi Jinping reiterated national reunification, and for the first time personally declared the need to strike against Taiwan independence.

June 26

Chairwoman Cheng Li-wun of the Kuomintang (KMT) stated that merely starting Nuclear Power Plant No. 3 is insufficient; she will propose a referendum on “restarting nuclear power.” If the Legislative Yuan handles the timetable properly, then the referendum could be held alongside the year-end local elections.

June 30:

An Executive Yuan investigation determined that Minister without Portfolio and Trade Representative Jen-ni Yang committed workplace bullying against a subordinate. The Office of the President issued an order to dismiss her. Yang argued that the investigation lacked due process and has retained lawyers to seek redress.

July 1:

At the Mercosur summit, Minister of Foreign Affairs Rubén Ramírez Lezcano of Paraguay stated that as long as Paraguay does not have to sever diplomatic ties with Taiwan, it is willing to trade with mainland China. Paraguay is Taiwan’s only remaining diplomatic ally in South America.

July 1: 

Chinese President Xi Jinping, at the Communist Party’s 105th anniversary celebration, reiterated that resolving the Taiwan issue and achieving complete national unification is the party’s unwavering historic mission. For the first time, Xi explicitly stated the need to “resolutely strike” at pro-independence separatist forces.

July 1:

The Executive Yuan introduced a special statute for drone procurement. Opposition parties also submitted their own versions, advocating inclusion in the annual budget. President Lai Ching-te criticized the opposition for violating principle of constitutional separation of powers and encroaching on executive authority.

July 1:

A Control Yuan investigation confirmed the leakage of 13 Ministry of Foreign Affairs (MOFA) documents including one in which Vice President-elect Hsiao Bi-khim, upon returning from her post as representative to the United States in 2024, requested that the Customs Administration, Ministry of Finance, exempt her from liquor inspections. The opposition demanded that Secretary-General Joseph Wu of the National Security Council, who served as Minister of Foreign Affairs then, explain whether this represents a cybersecurity or national security loophole.

July 1:

Mainland China’s Law on Promoting Ethnic Unity and Progress took effect, stipulating that acts undermining ethnic unity or creating division will be prosecuted regardless of nationality or location. It is seen as providing a legal basis for extra-territorial jurisdiction. The Mainland Affairs Council and MOFA stated that they will conduct risk assessments for China-friendly countries and issue overseas travel warnings if necessary.

July 2:

The Taichung City Government and American Institute in Taiwan (AIT) co-hosted a forum on the drone industry and overseas business opportunities, marking the first joint event of its kind. AIT Director Raymond Greene stated the next chapter of U.S.-Taiwan economic partnership begins in Taichung, adding that nothing deters conflict more effectively than turning Taiwan into a hive filled with aerial, surface, and underwater drones.

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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