This Week in Taiwan 0505-0511
May 5: Kuomintang (KMT) Legislator Hsu Chiao-hsin presented diplomatic documents revealing a confidential agreement between the Ministry of Foreign Affairs (MOFA) and the Czech Health Technology Institute (CHTI). The agreement involves $10 million in aid to Ukraine, with at least 30 percent allocated for purchasing Taiwanese medical equipment. There are concerns that the government may favor specific vendors and that there could be interference in Czech internal politics. MOFA filed a complaint against Hsu for leaking diplomatic secrets. However, Hsu countered that the so-called "secret" content had already been disclosed in an official Czech journal in March.
May 6: The Legislative Yuan's Foreign Affairs and National Defense Committee will visit Taiping Island on May 18, with 20 opposition party legislators participating. The ruling Democratic Progressive Party (DPP) criticized this visit, claiming that it would bolster China's influence and create trouble for Taiwan's government. Deputy Speaker Johnny Chiang of the Legislative Yuan emphasized the importance of defending national territorial sovereignty and stated there should be no distinction between ruling and opposition parties when it comes to supporting the military.
May 7: Escalating conflicts in the Middle East and uncertainty regarding United States interest rate policies have led to nervous market sentiment. According to the Financial Supervisory Commission, foreign investors sold over NT$100 billion (about US$3 billion) in Taiwan stocks in April, resulting in a net outflow of US$1.3 billion. This marks the end of five consecutive months of net inflows. In response to the significant capital flight by foreign investors, the Central Bank intervened to prevent further depreciation of the New Taiwan Dollar, resulting in foreign exchange reserves dropping to US$56.7 billion in April, the lowest in six months.
May 7: President Tsai Ing-wen will step down on May 20. There is speculation that she will grant a pardon to former President Chen Shui-bian before leaving office. Many DPP legislators see this as an opportunity for social reconciliation. On the other hand, opposition parties questioned how Chen could be pardoned without pleading guilty. They demand that President Tsai personally explain. Meanwhile, Chen's ongoing cases should proceed to the third trial promptly rather than be pardoned without due process.
The Office of the President responded that its current stance is to ensure Chen receives proper health care and handle the matter in accordance with relevant regulations.
May 8: President Gitanas Nausėda, seeking re-election, suggested renaming the "Taiwanese" Representative Office in Lithuania to "Taipei" to stabilize relations with China. However, Taiwan's Ministry of Foreign Affairs emphasized that the current name was a result of bilateral consensus and would not be changed.
Regarding the possibility of a "surprise" severance of diplomatic relations after the inauguration of President-elect William Lai, Minister of Foreign Affairs Joseph Wu stated that there are no short-term issues with Taiwan's diplomatic relations. However, he acknowledged long-term concerns with two diplomatic allies. Observers speculate that he was referring to Haiti and Guatemala.
May 9: According to Foreign Policy, Taiwan is interested in purchasing U.S.-made suicide drones, including the Spring Knife 300 and larger models like the Spring Knife 600 or ALTIUS-600. These acquisitions are part of the U.S. strategy for asymmetric warfare. The Ministry of National Defense has not provided specific details on individual items or progress.
May 10: The Fujian Provincial People's Government introduced new measures benefiting Taiwan, including the issuance of the "Fuzhou-Matsu Same-City Pass" with transportation and accommodation discounts. Over half of the residents in Matsu applied for the pass. In early March, the Lienchiang County Government assisted in promoting and facilitating applications for this pass, sparking controversy. The Mainland Affairs Council expressed concerns about potential violations of the Act Governing Cross-Strait Relations, and individual applications are still under further consideration.
May 10: On May 9, five mainland Chinese Coast Guard vessels and seven government vessels gathered in waters near Kinmen. Mainland state media reported that they were conducting a simulated rescue exercise related to a collision incident involving fishing vessels. This marked the first time that multiple mainland agencies and vessel types conducted such an exercise in Kinmen waters.
In February, a mainland Chinese speedboat entered Kinmen waters and capsized during an evasion maneuver, resulting in two deaths. The incident remains unresolved. The mainland’s Coast Guard subsequently announced routine law enforcement patrols in the waters around Kinmen and Xiamen.