Increases defense budget promised by Lai
Taiwan Pushes for Stronger Economic Security and Resilience
Taiwan is focusing on enhancing its economic resilience and advancing economic security, with President William Lai suggesting that democratic countries in the Indo-Pacific region can collaborate to create more robust and resilient global democratic supply chains.
Lai's proposal involves boosting defense capabilities and spending to at least 3% of GDP, enhancing whole-of-society resilience through coordinated military exercises and urban resilience drills, focusing on trusted key industries, expanding global economic and trade integration, and strengthening domestic foundations.
The government is investing more resources into national defense, aiming to reach a defense budget of over 3% of GDP next year. To achieve this, the government is enhancing its whole-of-society defense and resilience, including making July "National Solidarity Month" and combining military exercises with civil participation.
Taiwan is also focusing on its Five Trusted Industry Sectors, which include semiconductors, artificial intelligence, military, security and surveillance, and next-gen communications. The government aims to secure and improve supply chains in these critical sectors.
Peace in the Taiwan Strait is considered a shared responsibility for economic stability and security around the world. Taiwan's strategy recognizes peace and stability in the Taiwan Strait not only as a regional issue but as a global economic security concern, encouraging cooperation between democracies like Taiwan, the United States, and its partners.
By working together, democracies can create more economic prosperity and further consolidate democracy, while also creating trusted, diversified, and secure supply chains resilient to geopolitical disruptions in the Indo-Pacific region.
- Taiwan's focus on enhancing economic resilience and security also extends to investing in education-and-self-development and personal-growth, emphasizing the importance of equipping its populace with the necessary skills to compete in key industries such as technology and finance.
- To further bolster economic security, Taiwan is forming strategic partnerships with other democratic nations like the United States to engage in policy-and-legislation discussions, with the aim of jointly addressing global issues in war-and-conflicts and ensuring fair trade practices.
- As part of its policy initiatives, Taiwan is pushing for technology innovation in areas like artificial intelligence and semiconductors, understanding that these advancements can contribute positively to its defense capabilities—a key aspect of its overall economic and national security.
- Alongside its focus on global trade, Taiwan seeks to address domestic economic concerns by implementing reforms in various sectors, such as improving access to finance for small businesses, promoting green technologies, and investing in infrastructure that would lower the cost of doing business—all crucial factors in fostering economic growth and stability.
