TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) is advocating a “non-red” supply chain to counteract China's “unfair” trade practices.
Lai told Nikkei Asia that the US-led free-market economic system brought prosperity and political stability to Taiwan and elsewhere for decades. However, Lai said China exploits this free trade system through plagiarism, counterfeiting, intellectual property theft, and massive government subsidies to dump cheap goods globally.
“If this kind of unfair trade is not resolved, the stable societies and economic prosperity we have painstakingly built over decades, as well as some of the values we pursue, could be destroyed,” said Lai. “I therefore think it is worthwhile for us to observe the recent willingness of the US to address unfair trade and, if necessary, offer assistance,” he said.
Lai said that his administration seeks to leverage Taiwan’s strengths in production and manufacturing to connect democratic societies and build a “global non-red supply chain for semiconductors” that excludes China. "This would ensure further world prosperity and development in the future, and ensure that free trade can continue to function without being affected by dumping, which would undermine future prosperity and development," said Lai.
The president also emphasized, “Taiwan's situation is different from other countries because we face a direct threat from China. China’s ambition to annex Taiwan has never wavered." He said Beijing's political and military coercion, along with its united front infiltration into Taiwan, is growing more severe.
He stressed that Taiwan “must demonstrate the strength of deterrence to prevent China from making the wrong judgment,” while also vowing that “as long as China treats Taiwan with parity and dignity,” Taiwan is willing to engage with China to pursue peace and shared prosperity across the strait.”
Lai said he has introduced 17 strategies to address five major threats from China. These five risks include:
- China’s threat to national sovereignty
- Efforts to confuse Taiwanese national identity
- Recruitment of Taiwanese military officers for spying
- Infiltration through exchanges and united front influence efforts
- Beijing’s economic “integration plan” targeting Taiwanese youth and businesses
One of Lai’s countermeasures is the reinstatement of military tribunals to try active-duty soldiers who commit military crimes. “This expresses the Taiwanese government's determination to respond to China's united front infiltration and subversion,” said Lai.
Despite China’s efforts to isolate Taiwan diplomatically, Taiwan’s unofficial relations with Asian countries such as Japan are deepening. He called for Japan and Taiwan to reach a bilateral trade agreement and continue supporting Taiwan’s bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
He acknowledged that the Trump administration's plans to impose tariffs on Taiwanese goods pose a “major challenge” for an export-reliant economy like Taiwan. However, he said that Taiwan would not oppose Washington but instead seek to negotiate tariff reductions, pledging to expand investment in the US, reduce trade barriers, and crack down on country-of-origin washing.
Lai said, “We aim to start negotiations from the proposal of zero tariffs and seek to establish a bilateral trade agreement with the US.” Lai asserted that Trump’s tariff policies are intended to strengthen fiscal sustainability, reduce Americans’ tax burden, bolster industrial strength, position the US as a global AI hub, and promote peace.
The president also said the US feels the threat from China and needs to rebuild its industrial base to stay competitive. He argued that Taiwan’s tech capabilities and investments can help Washington achieve its AI ambitions.
Lai said Taiwan seeks collaboration with global partners, such as Japan, the US, and the Netherlands to develop his proposed “Global Semiconductor Democratic Supply Chain Partnership Initiative.” He explained, “Japan has materials, equipment, and technology, the US has IC design and marketing, Taiwan has production and manufacturing, and the Netherlands excels in equipment.”
