This Week in Taiwan 1225-0103
December 27: The National Development Council (NDC) released business indicator figures for November. Due to the cooling global economy, the comprehensive score plummeted by six points from the previous month down to 12 points, the lowest score in 13 years. The index light signal changed from a yellow and blue light to a blue light representing contraction, a first in nearly four years. The NDC described the current state of the economic downturn as "cold outside" (referring to international markets) and "warm inside" (domestic demand) and expects the business climate to improve in the second quarter of 2023.
The Research Center for Taiwan Economic Development, National Central University, released the Consumer Confidence Index (CCI) figure for December, which also fell below 60 points to 59.12, a new low in more than 13 years.
December 28: The U.S. Department of State approved the sale of several sets of "Volcano" anti-tank mine-laying systems and related equipment to Taiwan, with a total amount of $180 million, and informed the Congress on December 28. This is the eighth time that the administration of President Joe Biden has sold arms to Taiwan.
According to related reports, the Army set aside NT$4.9 billion (about US$159 million) at the beginning of the year and plans to purchase land-based mobile minelaying systems and landmines from the United States.
December 28: President Tsai Ing-wen announced the resumption of one-year compulsory military service. Minister of National Defense Chiu Kuo-cheng further revealed in the Legislative Yuan that reservist training for females will be piloted in 2023. It will initially be piloted on the scale of dozens or a company and then gradually expanded and implemented.
December 28: The ruling Democratic Progressive Party (DPP) released a review report on its local election defeat. The party acknowledged losing youth and moderate voters as the chief reason. The report also listed factors explaining electoral defeat, including the pandemic and inflation which imposed pressure on people's lives, insufficient communication on military service issues, a thesis plagiarism scandal which impacted public trust, and controversies related to the electoral involvement of criminal organizations and public safety incidents not dealt with immediately.
December 28: Last year, the September 18 earthquake severely damaged the Hualien-Taitung section of the Taiwan Railways and caused a three-month suspension of traffic in that section. It finally resumed traffic this month. The earthquake caused dislocation of 15 main girders of the Xinxiu Gulanxi Bridge. Among them, the Yuli-Fuli section of the railway was seriously distorted and deformed, and train service was suspended. It was originally estimated that repairs would take six months. After emergency repairs, however, traffic resumed ahead of schedule.
December 31: In 2022, there was a surplus in tax revenue of NT$450 billion (about US$14.6 billion). President Tsai convened a national security meeting and decided that about NT$380 billion (about US$12.4 billion) will be used in three directions: NT$100 billion (about US$3.2 billion) allocated to the financially struggling labor insurance and National Health Insurance funds, while subsidizing electricity prices of the Taiwan Power Company; NT$100 billion to strengthening economic resilience to cope with global inflation; and the remaining NT$180 billion (about US$5.8 billion), financially permitting and subject to further discussion, may be returned to all the people in the future under a feasible plan.
December 31: The Shilin District Prosecutor's Office investigated the case involving insider trading and suspicious transactions of Medigen and its parent company, including interviewing Chairman Chang Shi-chung among 18 people. After late-night investigation, Chang and others confessed to insider trading, and the prosecution ordered Chang to pay a bail of NT$300,000 (about US$9,783) and his sister and her husband each NT$500,000 (about US$16,305) in accordance with the Securities and Exchange Act. The investigation found at least five to eight counts of insider trading abuses involving Medigen, and there may be a second wave of investigations in the new year.
January 1: In his New Year's message, Chinese President Xi Jinping mentioned that the two sides of the Taiwan Strait are one family but did not mention "reunification" as he did last year. In response, President Tsai stated that she noticed Mr. Xi delivered his speech in a relatively moderate way but would like to remind that the military activities of the People's Liberation Army (PLA) around Taiwan do not help cross-strait relations or regional peace and stability.
January 3: The Central Epidemic Command Center announced that from January 6 to January 31, passengers departing from mainland China and transiting through Hong Kong and Macau must present a negative PCR test report within 48 hours or rapid test report within 24 hours. Before January 6, saliva screening was required for direct-flight passengers from the mainland as well as Mini-Three Links travelers entering Kinmen and Matsu.