This Week in Taiwan 0917-0923
September 18: Chinese Foreign Minister Wang Yi and U.S. National Security Advisor Jake Sullivan held a new round of strategic communication in Malta. According to Chinese state media, the two met for over 12 hours, with the issue of Taiwan taking up the most time. Wang stated that the correct direction for a peaceful resolution of the Taiwan issue is to firmly oppose de jure "Taiwan independence" and support China's peaceful reunification.
September 18: The Ministry of National Defense (MND) announced on September 17 a record-breaking 103 instances of People's Liberation Army (PLA) aircraft conducting activities near Taiwan within 24 hours, posing serious challenges to the security of the Taiwan Strait and the region. The MND called on Beijing to take responsibility and immediately cease such destructive unilateral actions. Responding to questions from foreign media, Spokesperson Mao Ning of mainland China's Ministry of Foreign Affairs stated that this is not a diplomatic issue and that Taiwan is part of China's territory, with no such thing as the "median line" of the Taiwan Strait.
September 19: The controversy over imported eggs and food safety has escalated, with incorrect expiration date labeling and concerns about the lack of cold chain preservation. The Ministry of Agriculture has admitted to a large number of expired eggs, which were destroyed (54 million in total). Local governments have also discovered domestically produced eggs being mixed into liquid egg products and flowing into school lunches and pastry businesses.
Minister of Agriculture Chen Chi-chung's resignation was approved, and Premier Chen Chien-jen apologized twice during his special report to the Legislative Yuan. The district prosecutor offices in Taipei, New Taipei, Taoyuan, Taichung, and Kaohsiung have initiated investigations into offenses related to food safety and forgery of documents.
September 19: The Ministry of Economic Affairs (MOEA) held an electricity price review committee meeting and decided not to raise electricity prices, only implementing a 15 percent increase for high-voltage users such as department stores and cinemas. As Premier Chen had already revealed in July that electricity prices would not be raised, the decision to freeze price increases during the review meeting has been questioned for electoral considerations. As of the end of July, the Taiwan Power Company has accumulated losses of NT$323.1 billion (about US$11.6 billion), with an estimated total loss of nearly NT$400 billion (about US$14.3 billion) by year-end.
September 19: The Department of Investment Review, MOEA, approved eight major investment cases, including the Taiwan Semiconductor Manufacturing Company's (TSMC) increased investment of US$4.5 billion in its Arizona plant. This is TSMC's second capital increase after half a year. Governor Katie Hobbs of Arizona, who was visiting Taiwan, revealed that she is negotiating with TSMC to increase advanced packaging production capacity; TSMC has not confirmed this.
September 21: The Central Bank revised down its economic growth forecast for the year for the fourth time to 1.46 percent.
After the Federal Reserve announced that interest rates would remain unchanged, the Central Bank's Board of Governors and Supervisors also decided to keep interest rates unchanged in the third quarter. However, Governor Yang Chin-long released hawkish remarks that if prices are high, the interest rate may be higher, hinting that the interest rate may remain relatively high for some time.
September 21: Kuomintang (KMT) presidential candidate Hou Yu-ih returned to Taiwan upon concluding his visit to the United States. He stated that the United States is concerned about the situation in the Taiwan Strait, and he has expressed his intention to defend sovereignty, independence, freedom, and democracy while resolving cross-strait differences peacefully. He proposed a "3-D strategy" of deterrence, dialogue, and de-escalation, using strength to ensure peace and communication to enhance understanding.
In a seminar in the United States, Hou stated that he firmly opposes "One Country, Two Systems" as well as Taiwan independence. His "1992 Consensus" is not "One Country, Two Systems" but is based upon the Constitution and Act Governing Cross-Strait Relations. He stated that his visit to the United States was to let American friends understand that Taiwan is an important member of the Indo-Pacific region that is willing to become a responsible stakeholder. Under Hou, Taiwan will not be a troublemaker but will play a good role as a "peace promoter" and "risk reducer."
September 22: In a rare move, the MND released the movements of PLA aircraft on the evening of September 21, revealing that the Armed Forces actively monitor the movements of the PLA's long-range fire, Rocket Force, and ground troops near Dacheng Bay in Fujian Province. During an interview with the press at the Legislative Yuan, Minister of National Defense Chiu Kuo-cheng stated that the recent enemy situation has been abnormal. The Armed Forces assess that the PLA will be conducting joint military exercises, and the circumstances are under control.