Why the Economist's Report Unsettles the DPP
Taiwan once again landed on the cover of The Economist, with the latest feature story highlighting the island's dilemma caught between the U.S. and China. While it's true that Taiwan's politics are highly polarized, The Economist’s claim that such division is hindering President Lai's government from increasing defense spending, reducing dependence on imported energy, and preparing for crises echoes the Democratic Progressive Party's (DPP) long-running narrative warfare—and even misrepresents facts.
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President Lai Commemorates Victory in Europe, Makes No Mention of R.O.C. Resistance Against Japanese Aggression
According to Reuters, President Lai Ching-te held a commemorative event in honor of Victory in Europe Day (VE Day) at the Taipei Guest House, where he hosted foreign dignitaries and delivered a speech declaring that "aggressors will always be defeated." This marks the first time Taiwan has commemorated VE Day—a novel move. However, the timing and content of the event raise eyebrows. At the end of WWII in Europe, fierce battles in Asia were still ongoing, with Taiwanese still fighting as "Japanese soldiers" in the South Pacific. President Lai is commemorating the end of the wrong war in the wrong region at the wrong time.
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Offsetting Tariffs with Exchange Rates Suffocates Business Survival
The government delegation led by Vice Premier Cheng Li-chiun and Minister without Portfolio and Trade Representative Yang Jen-ni concluded its first round of in-person trade talks with the United States in Washington on May 1, which focused on reciprocal tariffs and various economic issues. Coincidentally, immediately after the government announced the start of negotiations, the New Taiwan Dollar (NTD) posted its largest single-day appreciation against the U.S. dollar on May 2 since central bank records began. By May 5, the surge continued, with the NTD soaring 1.872 points (6.21 percent) in just two trading days—an epic rise akin to a runaway train. This raises serious suspicion: Is the government’s so-called unspoken bargaining chip essentially offering NTD appreciation in exchange for the United States lowering reciprocal tariffs?
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President Lai All-Out on Eliminating Opposition, Triggering Public Backlash
The Kuomintang’s (KMT) massive “Fight Against Dictatorship” rally on April 26 drew significant momentum, but President Lai Ching-te mocked it by saying protesters “should go to Tiananmen Square.” It turns out he had already issued strict orders demanding all 35 recall motions against KMT legislators be passed. At a time when U.S.-China trade tensions are escalating, and U.S. President Donald Trump’s new tariffs threaten to devastate Taiwan’s exports, the Lai administration has shown no interest in an economic response.
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President Lai's Democratic Values Bemchmark Against China's Autocracy
Such disregard for public sentiment is detestable. President Lai Ching-te responded coldly: “If you’re fighting dictatorship, go to Tiananmen!”, when 200,000 citizens took to Ketagalan Boulevard to oppose DPP Communists and fight dictatorship. Even more alarming is President Lai’s cynical use of Communist China as both a weapon and a shield—an ugly mindset. His administration has recently cracked down on mainland Chinese spouses and carried out intrusive household inspections, labeling the opposition as “fellow Chinese Communist sympathizers.”
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Mainland China Has No Option to Annex Taiwan
At the symposium marking the 20th anniversary of the “Lien-Hu Meeting,” Vice Chairman Andrew Hsia of the Kuomintang (KMT) stated that historical experience shows that as long as both sides of the Taiwan Strait adhere to the Constitution of the Republic of China and the Act Governing Relations between the People of the Taiwan Area and the Mainland Area—both of which define cross-strait relations as “one China” rather than state-to-state—then the use of non-peaceful means as outlined in mainland China’s Anti-Secession Law would not apply. His remarks sharply exposed the blind spot in the Democratic Progressive Party’s (DPP) anti-China narrative.
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250,000 People Rise Up Against Dictatorship; Eric Chu: Recall Lai Ching-te on May 20
Over the weekend, the Kuomintang (KMT) held a rally titled "Oppose the Green Communists, Fight Dictatorship—Stand Together on Ketagalan Boulevard!" in front of the Presidential Office, attracting a crowd of 250,000. KMT Chairman Eric Chu declared that ever since President Lai Ching-te was elected on May 20 last year, he has been dividing and destroying Taiwan. Chu announced that the Legislative Yuan will initiate a recall motion against Lai Ching-te on May 20, and called on people across Taiwan to use the power of the people to bring Lai down.
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President Lai Heading Down the Path of Becoming a Dictator
On April 26, the opposition Kuomintang (KMT) and Taiwan People's Party (TPP) will hold a joint rally on Ketagalan Boulevard in Taipei under the banner of "fighting autocracy." In response, Premier Cho Jung-tai criticized KMT vice chairmen for visiting China and "shaking hands with an authoritarian regime." The Democratic Progressive Party (DPP) rebutted, "If this were truly a dictatorship, how could you march on the streets?"
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Judiciary Cooperating with Ruling Party's Political Purge, Forcefully Criminalizing the Opposition
"Political persecution, judicial injustice, interference in party primaries"—these are not accusations made by the opposition Kuomintang (KMT) or Taiwan People's Party (TPP) but by Democratic Progressive Party (DPP) Legislator Lin Tai-hua. She was actively running in the DPP's Kaohsiung mayoral primary when prosecutors summoned her for questioning and searched her office on allegations of illegal political donations and assistant salary fraud. Legislator Lin claims this was retaliation from the New Tide faction—a political purge disguised as legal action—and that she has become a casualty of intra-party factional warfare.
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Measures to Respond to Reciprocal Tariffs Inconsistent, Sneaking in Budget Items Previously Rejected by the Legislative Yuan
The Executive Yuan approved a sprawling NT$410 billion (about US$12.6 billion) special budget yesterday, ostensibly in response to opposition parties' calls to address the impact of U.S. President Donald Trump's tariff war. However, behind this move lies a political maneuver to quietly revive budget items previously cut by the legislature. From Premier Cho Jung-tai's local tours denouncing the opposition for slashing the general budget to his recent surprise announcement of submitting a report to unfreeze funds and now bundling blocked allocations into a special budget to force the opposition to swallow it whole—this strategy reeks of political scheming aimed at preserving narrative control.
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