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.
In-Depth Assessment of Tariffs' Impact on Taiwan's Economy
President Donald Trump of the United States imposed tariffs on Canada, China, and Mexico as expected but later postponed the Canada and Mexico tariffs by a month. Initially, President Trump stated, "Tariffs are not a negotiation tool; they are purely an economic issue. We face significant trade deficits with these three countries." Reviewing U.S.-Taiwan trade records reveals that last year, Taiwan exported $111.37 billion to the United States, enjoying a trade surplus of $64.88 billion. Consequently, the threat of American tariffs is gradually closing in on us.
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Caught in Infighting—Taiwan Risks Losing the Digital Revolution
The heated debate over DeepSeek shows no signs of abating. Pro-independence factions supporting the Democratic Progressive Party (DPP) are busy nitpicking, criticizing it for being subject to ideological censorship and questioning the accuracy of its low-cost claims. While this pursuit of truth is admirable, it also raises eyebrows, given that these same groups were recently spreading massive amounts of government propaganda and misinformation. Meanwhile, the ruling administration is seizing the opportunity for internal political messaging, claiming that budget cuts are hindering AI development—yet without providing concrete evidence of any delayed projects. In contrast, other countries are investigating China's progress in AI technology, while the administration of President Lai Ching-te seems more concerned about using AI for propaganda and political infighting.
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Stop the Recall Wars and Focus on Tariffs and the AI Storm
As the world faces the dual crises of the tariff war waged by President Donald Trump of the United States and the disruptive impact of DeepSeek ion American technology stocks, Taiwan’s ruling Democratic Progressive Party (DPP) seems preoccupied with large-scale political recalls. Amid global concerns over Taiwan's lagging industrial chain, rising tensions across the Taiwan Strait, and the need for strategic adjustments, the DPP's focus on infighting is disconcerting. Even when Vice Chairman Yeh Yung-sung of the Xiamen Taiwanese Business Association publicly urged President Lai Ching-te to "stop stirring up trouble" and opposed the recall campaigns, President Lai offered no response, as if indifferent to the warning.
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DPP Causes Breakdown of Budget Negotiations for Political Purposes
Review of the central government’s annual general budget by the Legislative Yuan is approaching the final stretch. The total budget this year, reaching a historic high of nearly NT$3.2 trillion (about US$97.2 billion), faces an unprecedented proposed cut and freeze of over NT$320 billion (about US$9.7 billion). Premier Cho Jung-tai has personally stepped in, holding a press conference to emphasize that such “unreasonable” budget cuts would lead to a “weakened national strength.” Meanwhile, Legislator Ker Chien-ming, whip of the Democratic Progressive Party (DPP) caucus of the Legislative Yuan, has employed filibustering tactics during two consecutive days of negotiations with opposition parties, leading to prolonged debates and heated exchanges, yet with no conclusion reached. With time running out, it seems increasingly unlikely that the budget will pass its third reading without facing what the administration calls “unreasonable cuts.”
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In Light of Backlash Against Abolition, President Lai Executes Death Penalty for the First Time
President Lai Ching-te, eight months into his tenure, carried out the first execution of his presidency yesterday. This appears to counter the Constitutional Court’s controversial Interpretation No. 8 issued last year, which limited the applicability of the death penalty and was criticized as a form of “de facto abolition.” With the government’s general budget and judicial nominations repeatedly blocked by opposition parties, speculation arises that the execution was aimed at reversing the public’s highly negative perception of the anti-death penalty stance to restore the administration’s declining standing.
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President Lai Should Re-Nominate Grand Justices to Resolve Constitutional Deadlock
The public is extending close scrutiny to how President Lai Ching-te will proceed after receiving the Legislative Yuan's notification of the reconsideration motion on the Constitutional Court Procedure Act. It is expected that he will complete the promulgation process within a few days.<br /> <br /> Following the Executive Yuan's failure to pass the reconsideration of the Constitutional Court Procedure Act, the pressure now shifts to President Lai. Key decisions include when to promulgate the new law, whether to request constitutional interpretation under the pretext of “preventive legal remedy,” and who should make such a request. Each step involves complex political calculations, constitutional legal confrontations, and tests of the public's patience. However, a simpler solution exists: President Lai could re-nominate impartial and independent grand justices to restore the operation of the Constitutional Court. But will President Lai, emboldened by political battles, step back and take this course?
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Partisan Tensions and Internal Dissatisfaction: President Lai in Difficult Position
The ruling Democratic Progressive Party (DPP) has faced repeated setbacks in the Legislative Yuan, with party whip Legislator Ker Chien-Ming calling for anti-democratic measures such as dissolving the Legislative Yuan, disbanding the opposition Kuomintang (KMT), and initiating recalls against Speaker Han Kuo-Yu and other KMT lawmakers. This has fueled calls for large-scale retaliatory recalls. Meanwhile, the Executive Yuan has shown no signs of compromise, resorting to hardline tactics such as reconsideration motions and constitutional interpretations to delay proceedings. Under these circumstances, politics is set to stall, devolving into a chaotic battle sure to squander public funds and erode public trust. In face of an impending political dark age, does President Lai have no strategy to prevent a head-on collision?
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Constitutional Court Should Not Rule During Vacancy
The Executive Yuan has submitted a reconsideration request to the Legislative Yuan regarding amendments to the Constitutional Court Procedure Act. During this transitional period when the Constitutional Court's operations are in limbo, two politically sensitive cases have emerged and may be resolved through constitutional interpretation.
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Protest Against Unfair Judiciary: 150,000 Show Support
Supporters of the Taiwan People's Party (TPP) took to the streets in protest on Judicial Day, voicing their grievances on behalf of former Chairman Ko Wen-je. However, this was only one of their demands. The broader message conveyed by the event was the public's deep mistrust of the judiciary system and their significant protest against the administration of President Lai Ching-te.
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Ko Detained Again: KMT and DPP Seek to Attract Ko Supporters, Need Stronger Narratives
Ko Wen-je, former chairman of the Taiwan People's Party (TPP), and three others have been charged with corruption. On the evening of January 2, the Taipei District Court held its third detention hearing. The prosecution argued that Ko's influence was not diminished by resigning as party chairman, and with his secretary Hsu Tzu-yu, nicknamed "Orange," still at large, the risk of collusion remains. The court ruled late at night to detain Ko and three others. While he can appeal the detention ruling, Ko is likely to face repeated challenges in the future. After being released on bail, Ko resigned as party chairman, acknowledging his inability to lead the TPP effectively under the weight of ongoing legal battles. The future of his one-man party and the direction of its supporters, so-called "little grass,” are now in question, with both the Kuomintang (KMT) and Democratic Progressive Party (DPP) vying for their support.
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