President Lai interviewed by AFP

Source: Republic of China Taiwan

In a recent interview with Agence France-Presse (AFP), President Lai Ching-te responded to questions regarding Taiwan-Europe and Taiwan-United States relations, national defense, cross-strait relations, and the semiconductor industry from AFP Global News Director Philip Chetwynd and Taipei Bureau Chief Allison Jackson. The interview was published by AFP on February 12.
President Lai firstly stated during the interview that as an internationally recognized media outlet, AFP has readers from around the world, and he is honored to accept this interview opportunity so that he can convey Taiwan’s perspective globally. He then expressed hope that when people in the international community consider issues regarding Taiwan, they can understand three facts.
First, the Republic of China and the People’s Republic of China (PRC) are not subordinate to one another. Taiwan is not a part of the PRC, and the PRC does not have the right to annex Taiwan.
Second, Taiwan went through 38 long years of martial law. The people of Taiwan endured sacrifice and hardship to move from authoritarianism to today’s democracy. Consequently, safeguarding Taiwan’s national sovereignty and maintaining its free and democratic system should not be seen as provocations against communist China.
Third, if Taiwan were annexed by China, China’s expansionist ambitions would not stop there. Instead, it would become more aggressive, undermining peace and stability in the Indo-Pacific and the rules-based international order.
When asked to share his views on Taiwan’s ties with Europe and what he thinks Europe can bring to the table in terms of building capacity to defend Taiwan, President Lai stated that on behalf of the people of Taiwan, he wants to thank European countries for their longstanding support, and hopes that they continue to uphold this spirit by standing with Taiwan. The European Union released its Indo-Pacific Strategy in 2021. The policy highlighted cross-strait peace and stability, identifying Taiwan as a key partner. The European Parliament has also passed numerous resolutions and legislation supporting Taiwan in recent years. Notably, on October 25, 2024, it passed a resolution opposing China’s distortion of United Nations General Assembly Resolution 2758, safeguarding Taiwan’s sovereignty. Furthermore, many European countries have dispatched naval vessels to transit the Taiwan Strait. These concrete actions protect a free and open Indo-Pacific.
The president indicated that Taiwan hopes to see more cooperation with Europe in the following areas: First, European countries are implementing the ReArm Europe Plan. Taiwan is also strengthening its national defense capabilities, he said, noting that he has proposed a special defense budget. The president said that moving forward, he would like Taiwan and Europe to enhance cooperation in the defense industry and on defense technology.
Second, Europe is making progress on the AI Continent Action Plan. Taiwan has also launched the Ten Major AI Infrastructure Projects, and is eager to work with Europe on joint development in AI and usher in an era of comprehensive smart transformation.
Third, Europe is Taiwan’s third-largest trading partner and largest source of foreign direct investment. Meanwhile, Taiwan’s investments in Europe over the past four years have surpassed total investments made over the previous four decades. Bilateral economic and trade ties have grown closer. The president expressed hope that Europe will support signing an investment protection agreement, avoidance of double taxation arrangement, and bilateral trade agreement so that economic and trade exchanges between Taiwan and Europe continue to advance.
President Lai indicated that he has long admired European efforts to uphold universal values and their support for Ukraine’s resistance against the Russian invasion. He stated that Taiwan also stands with the Ukrainian people, and sincerely hopes that the Russia-Ukraine war will end soon so that the Ukrainian people will no longer have to suffer the hardships of war. The president said he believes that Europe has the capacity to support Ukraine in its objectives, and is also confident that Europe can continue to devote attention to peace and stability in the Indo-Pacific, which also needs sustained European engagement.
In response to a question on how Taiwan’s government is going to resolve the deadlock on the passage of a US$40 billion defense spending bill, which the opposition parties have blocked 10 times to date, President Lai stated that to highlight Taiwan’s commitment to self-defense and determination to safeguard peace and stability in the Indo-Pacific, he proposed the special defense budget, through which the government aims to build the T-Dome, establish an AI-driven defense network, and further promote Taiwan’s defense industry. This comes in addition to Taiwan’s regular annual defense budget.
The president indicated that the US$40 billion special defense budget covers a period of eight years. Even with this investment, Taiwan’s overall defense spending remains lower than both Japan and the Republic of Korea. Given the state of its economic development, Taiwan is fully capable of funding this special budget. This will first enable the defense budget to exceed 3 percent of GDP, and consequently meet the goal of 5 percent of GDP by 2030. President Lai went on to say that this major defense policy enjoys strong public support. Taiwan is a democracy. The Taiwanese people will not tolerate partisan or ideological divisions that undermine the national interest, he said, expressing confidence that the budget will ultimately pass.
When asked about whether there is a risk that US President Donald Trump will start to lose patience and begin questioning Taiwan’s commitment to doing more for its own defense as the deadlock drags on, President Lai stated that Taiwan is responsible for safeguarding itself, and speaking as president and commander-in-chief, proposing this special budget is a clear demonstration of that resolve. He reiterated that the government will enhance communication with opposition parties and the public. In a democratic society, every political party is ultimately accountable to the people, he said, so he is therefore confident that this budget will win their support.
Regarding how he interprets recent changes at the top of China’s military with regard to Taiwan’s security, President Lai noted that China has a military force of roughly 2 million personnel and around 40 full generals, yet only two are currently in active posts. He said that this is indeed an unusual situation, and the reasons behind these significant changes within the People’s Liberation Army (PLA) and their impact on combat readiness will require further observation before any firm conclusions can be drawn. Taiwan will continue to closely monitor developments within the PLA, and expects that the international community will do the same. Most importantly, Taiwan must keep strengthening its own defenses, enhancing economic resilience, and standing shoulder to shoulder with like-minded partners to build deterrence. Whether internal changes within China’s military translate into greater risks for Taiwan ultimately depends on Taiwan’s own defense preparedness and on the credibility of deterrence it builds together with its partners – that is the key.
President Lai was also asked to share his thoughts on the talk surrounding the date of 2027 for Chinese preparedness in terms of its capacity to invade Taiwan, and whether that date concerns him or impacts his thinking given the changes taking place in China. In response, the president stated that there has been much speculation in the international community about whether China will be ready to invade Taiwan by 2027. Such discussions underscore the reality that China’s threats against Taiwan remain persistent and their ambitions to annex Taiwan have not changed. He said that as commander-in-chief, entrusted with the responsibility for the country’s defense, specific dates are not his primary concern. What matters more is that Taiwan must make the best preparations for a worst-case scenario. We must have the capability to deter China’s aggression at any time. We want to ensure that, for China, there is never a day that is a good day to invade Taiwan. This is the best guarantee of Taiwan’s security and the peace and stability in the Indo-Pacific.
Regarding Chinese President Xi Jinping’s phone call the previous week with President Trump, in which he was understood to have warned President Trump to be cautious about arms sales to Taiwan, President Lai was asked if it could potentially jeopardize future arms sales. President Lai responded that Taiwan has always paid close attention to interactions between the US and China, and holds open channels of communication with the US. He said he believes that dialogue between President Trump and President Xi has sustained four constants in the trilateral relationship between Taiwan, the US, and China.
First, the Republic of China and the People’s Republic of China are not subordinate to one another. Taiwan is not part of the PRC. These facts remain unchanged. Second, under the Taiwan Relations Act and Six Assurances, the US commitment to Taiwan and the strength of the bilateral relationship remain rock-solid. Third, the US National Security Strategy calls for collective defense and burden-sharing amongst partners and allies to jointly uphold peace and stability in the Indo-Pacific – this has not changed. Fourth, cooperation between Taiwan and the US has continued to expand. Taiwan has confidence in itself, confidence in the US, and confidence in the Taiwan-US relationship.
President Lai was then asked if he thinks Taiwan and the question of trade could be on the agenda for the upcoming Xi-Trump talks, and if he thinks that Taiwan could be a bargaining chip in the trade dispute between the US and China. He was also asked whether, with regard to Venezuela, he is concerned that the US could lose interest in Taiwan’s part of the world as it focuses on places such as Greenland and areas in the Western hemisphere. In response, President Lai stated that Taiwan will never be any country’s bargaining chip. Taiwan’s future can only be decided by the 23 million people of Taiwan, and we have confidence in ourselves. Taiwan welcomes and supports any dialogue and cooperation that helps preserve the status quo and avoids dangerous unilateral actions. In the context of US-China trade competition, China seeks far more from the US than the US does from China. There is no need for the United States to frame Taiwan as a bargaining chip in any discussions with China. President Lai said he believes that President Trump is undertaking a difficult peace-building effort, which entails safeguarding US interests and deterring Chinese expansionism in the short term, while seeking peace and stability in the Indo-Pacific in the long-term. These efforts are of critical importance to every country in the region.
President Lai indicated that Taiwan and Venezuela are fundamentally different countries. Taiwan is a vibrant democracy with a strong economy, and actively participates in global initiatives that demonstrate to the world that it is a force for good. Situated in the first island chain in the Indo-Pacific, Taiwan also plays a crucial role in maintaining peace and stability in the region. This is why recent G7 leaders’ summits have repeatedly emphasized that peace and stability in the Taiwan Strait are essential to global security and prosperity.
The president stated that for the US, the situation in Venezuela has not come at the expense of their focus on Indo-Pacific affairs.  In fact, the most recent US National Security Strategy makes its four priorities clear. The first is ensuring the security of the American homeland, with the recent operations in Venezuela a part of this. Second, it calls for shifting greater strategic focus to the Indo-Pacific to preserve peace and stability, with the objective of deterring China’s expansionism. Third, the report calls for greater collective defense and burden-sharing amongst Indo-Pacific partners. And the fourth, it seeks to reindustrialize the US. In other words, the National Security Strategy identifies the Indo-Pacific region as a clear focus. The US will not withdraw from the Indo-Pacific nor allow China to displace its role in the Western Pacific.
The interview then touched upon US Commerce Secretary Howard Lutnick’s statement that the Trump administration’s objective is to bring 40 percent of Taiwan’s entire semiconductor supply chain and production to US soil so that the US can be self-sufficient, which the interviewer noted has raised alarm in Taiwan about the threat to the so-called “Silicon Shield.” In response to the question of what motivation the US would have to defend Taiwan against China if it does not need Taiwan’s semiconductors, President Lai answered that long before Taiwan’s Silicon Shield became widely recognized, the US has supported Taiwan under the Taiwan Relations Act and the Six Assurances. These commitments have endured for decades.
He said that in recent years, G7 leaders have repeatedly affirmed that peace and stability across the Taiwan Strait are essential to global security and prosperity. No country should be allowed to change the status quo by force or coercion. Taiwan’s security is directly linked to stability in the Taiwan Strait and peace in the Indo-Pacific. Without a stable Indo-Pacific, the interests of the United States and Europe would inevitably be affected as well.
The president went on to say that in recent years, political leaders in Japan have increasingly emphasized that “a contingency for Taiwan is a contingency for Japan,” and what affects Japan will, in turn, affect the United States. If Taiwan were to be annexed, the next countries under threat would be Japan, the Philippines, and others in the Indo-Pacific region, with repercussions eventually reaching the Americas and Europe. In this changing world, nations belong to a global community – a situation in any one country would inevitably impact another.
In a follow-up question regarding how he can ensure that Taiwan remains indispensable in the global semiconductor supply chain, President Lai responded that as long as Taiwan’s semiconductor industry maintains its centers for research and development, the most advanced manufacturing processes, and the largest production capacity, it will continue to play an indispensable strategic role in the global semiconductor supply chain. At the same time, while the semiconductor industry is one of Taiwan’s strengths, it is also Taiwan’s responsibility to contribute to global economic prosperity.
The president stated that the semiconductor industry operates as an integrated ecosystem. The US leads in research and design capabilities, and has a vast market; Japan has materials and equipment; the Netherlands produces advanced manufacturing tools; the Republic of Korea has strengths in memory chip production; and Taiwan specializes in wafer fabrication. No single country in this supply chain can be missing. For this reason, the Taiwanese government supports the semiconductor industry’s investments in Japan, the US, and Europe. Taiwan hopes that as the world enters the next era of intelligent technologies, it can leverage its semiconductor industry to further contribute to global development.

President Lai holds press conference on defense procurement special act

Source: Republic of China Taiwan

On the morning of February 11, President Lai Ching-te held a press conference titled “National Security Cannot Wait! Support the Special Act for Defense Procurement” regarding the draft act for the special defense budget proposed by the Executive Yuan and its failure thus far to be referred for committee deliberation in the Legislative Yuan, briefing the public on the government’s emphasis on compensation for the armed forces and the importance of the special defense budget.
In remarks, President Lai indicated that the government proposed the eight-year special defense budget to continue enhancing the modernization of the military and asymmetric capabilities across seven major categories, implementing the spirit of military development through “new training, new mindsets, new equipment, and new technologies.”  The president emphasized that political parties can compete, but in matters of national defense – which are vital to our national security, sovereignty, and basic survival – there must be unity and solidarity against external threats. He also stated that the government stands ready to clearly explain how the budget will be used to safeguard sovereignty. The president expressed hope that all political parties in the Legislative Yuan can immediately conduct substantive deliberations and pass the act as soon as the session convenes after the Lunar New Year, work together to become the strongest backing for the armed forces, and safeguard regional peace to ensure Taiwan’s continued prosperity and stability.
A translation of President Lai’s remarks follows:
At the end of last month, the fourth session of the 11th Legislative Yuan came to a close. The draft act for the special defense budget proposed by the Executive Yuan, after two months of effort, continues to face obstruction and has yet to be referred for committee deliberation .
As we approach the Lunar New Year, I look forward to a new chapter in Legislative Yuan operations after the new session begins, and the swift completion of the deliberation of the special defense budget act. Today’s press conference features Minister of National Defense Wellington Koo (顧立雄) and Chief of the General Staff of the Republic of China Armed Forces Mei Chia-shu (梅家樹), who will respectively report to the public on the government’s emphasis on compensation for the armed forces and the importance of the special defense budget.
I want to emphasize that defending the nation cannot wait, security cannot wait, and support for our service members cannot wait any longer.
Today, there is a strong international consensus that peace and stability in the Taiwan Strait are indispensable elements of global security and prosperity. In the face of the continued expansion of China’s military threats, countries in the Indo-Pacific region have increased their national defense budgets, including Japan at NT$1.8 trillion and Korea at NT$1.4 trillion this year, with the Philippines also raising its budget. Taiwan cannot be an exception; our special defense budget would amount to NT$1.25 trillion over eight years.
In particular, as a responsible member of the international community, Taiwan is committed to maintaining regional peace and stability. Increasing our defense budget and safeguarding our national security are by no means provocations, but rather demonstrations of our determination for self-defense and efforts to ensure global security. This approach has also received a high level of support from the international community.
Facing an increasingly complex regional situation, the most urgent need of our servicemen and women is to promptly acquire advanced precision weapons and equipment. Using the most advanced and sophisticated weapons and equipment, our military can protect Taiwan, Penghu, Kinmen, and Matsu, and ensure the security of our citizens’ lives and property.
Therefore, under the expert planning of the Ministry of National Defense, we have proposed the eight-year special defense budget to continue enhancing the modernization of the military and asymmetric capabilities across seven major categories, implementing the spirit of military development through “new training, new mindsets, new equipment, and new technologies.”
I want to reiterate that increasing national defense spending and expanding security investments are common trends among democratic friends and allies. This has also led to major military suppliers like the United States already having their production at full capacity.
I want to thank the US government for supporting Taiwan by issuing our nation formal price quotes. At the same time, Taiwan’s pledge of its determination to defend itself has also received public support from the White House and bipartisan members of Congress.
But now, because the budget has not been passed, in addition to Taiwan possibly losing its place on priority lists, and the delivery of critical weapons and equipment being delayed, the international community may question Taiwan’s determination to defend itself.
As president and commander-in-chief of the armed forces, it is my responsibility and obligation to make clear to all fellow citizens the urgency and risks brought about by these delays.
Recently, some public discourse has suggested that this budget delay is related to the government’s decision to not include a previous proposal by opposition party members to increase the monthly salaries of volunteer service members uniformly by NT$30,000. Furthermore, there have been criticisms that the government is failing to care for military personnel. I want to state solemnly that this is an entirely false association.
In fact, Democratic Progressive Party governments have taken better care of the armed forces than Kuomintang governments. Over the past ten years, our executive teams have not only raised salaries for military personnel, public servants, and teachers four times with a cumulative adjustment rate reaching 14 percent, but have also promoted the replacement of military equipment and the renovation of old military dependents’ housing. In addition, allowances have been increased 23 times  to protect the rights and interests of military personnel. Just last year, I expanded allowances in five categories , increasing annual expenditures by NT$13.8 billion. Minister Koo will provide a more detailed explanation on this matter later.
The military is a vast organization, and for the men and women in different regions, units, and roles, the specific items for which they are eligible to draw pay are governed by different allowance frameworks.
For this reason, the uniform salary increase proposed by legislators from the opposition parties is not only constitutionally questionable, but also lacks professional consideration, undermines military ethics, and undercuts military leadership.
Therefore, the Executive Yuan has petitioned for a constitutional interpretation, and if it is deemed constitutional, the shortfall will be covered by an additional budget. As a democracy under the rule of law, we must improve benefits and compensation for military personnel in a legal and constitutional manner. Only with a sound system can protections be stable, and only then can all members of the armed forces feel at ease.
I want to emphasize that political parties can compete, and policies can be fully debated so that citizens can make their choice; but in matters of national defense – which are vital to our national security, sovereignty, and basic survival – there must be unity and solidarity against external threats.
In the face of various questions, the military and the executive team have never expected the legislature to unconditionally pass any defense budget. Rather, we hope to explain in detail to legislators from both the ruling and opposition parties, in a secure and confidential setting, the details of the budget and how it will be implemented so that it can be deliberated and passed.
We stand ready to clearly explain how the budget will be used to safeguard sovereignty and improve the working environments and compensation of military personnel.
I remember that 21 years ago, when I was a legislator, the US decided to sell eight submarines as part of a larger procurement to strengthen Taiwan’s defense capabilities and stabilize the status quo in the Taiwan Strait. However, the special budget for military procurement proposed by the Executive Yuan was blocked 69 times by the Legislative Yuan’s Procedure Committee. As a result, the plan was eventually scrapped.
If that purchase had been approved, our eight submarines would already be in service, and Taiwan would have been able to contribute more to regional peace and stability much sooner.
Now, with external threats escalating and the need for a stronger military growing more urgent, we are again witnessing obstruction of efforts to enhance our national defense. Taiwan absolutely cannot repeat that mistake.
On November 26 of last year, Minister Koo and I presented this budget proposal to the entire nation at the Presidential Office. Today, I want to reiterate that many international friends have repeatedly conveyed to Taiwan that when it comes to strengthening our national defense, there can be no more waiting, and it must not be delayed.
I would like to once again sincerely urge all political parties in the Legislative Yuan to immediately conduct substantive deliberations and pass the draft special defense budget act as soon as the session convenes after the Lunar New Year. Let us work together to strengthen national defense, safeguard our country, and ensure that Taiwan continues to prosper and develop.
My fellow citizens, peace is priceless, and war has no winners.
Taiwan is strengthening national defense not because we seek to invade any country; we simply want to protect our way of life. We can have ideals about peace, but we must not harbor delusions about it. Peace cannot be secured with a piece of paper; only strength can ensure true peace. Only by preparing for war can we avoid it. Only by being able to fight can we stop war.
The armed forces are among the most important pillars that safeguard sovereignty and maintain peace and stability. In addition to standing on the frontline to protect our homeland, they also provide reassuring support for our people when natural disasters strike.
Both the ruling and opposition parties should take it as their shared responsibility to support the armed forces so they can focus on their combat training duties without concerns back home. Indeed, there should be a basic consensus among all citizens in this regard.
Since taking office, I have visited coastal military strongpoints, electronic warfare bases, air defense units stationed at airports, and a radar station located at an altitude of 3,000 meters to show my support for our men and women in uniform standing fast at their posts.
Regardless of gender or age, they are all our children, family, and friends. Their round-the-clock devotion to protecting our country enables us all to celebrate the Lunar New Year with peace of mind, and ensures the stable development of our industries.
Now, let us work together to become the strongest backing for the armed forces, improve their working environment, and provide them with the most sophisticated weapons and equipment, taking up responsibility to safeguard regional peace and ensure Taiwan’s prosperity and stability. Thank you.

MOFA thanks Australian, German foreign ministers for joint statement expressing supporting for peace and stability across Taiwan Strait

Source: Republic of China Taiwan

MOFA thanks Australian, German foreign ministers for joint statement expressing supporting for peace and stability across Taiwan Strait

Date:2026-02-09
Data Source:Department of East Asian and Pacific Affairs

February 9, 2026  No. 047  Australian Minister for Foreign Affairs Penny Wong met with German Federal Minister for Foreign Affairs Johann Wadephul on February 5 in Canberra. Following the meeting, the two sides issued a joint statement in which they underscored the importance of peace and stability across the Taiwan Strait and reiterated their opposition to any unilateral attempts to change the status quo. The joint statement also called for the peaceful management of cross-strait issues through dialogue, without coercion or the use of force, and expressed support for Taiwan’s meaningful participation in international organizations. Minister of Foreign Affairs Lin Chia-lung highly appreciates and welcomes the fact that Australia and Germany have once again affirmed their consensus and position on these issues following a similar joint statement in 2023. Australia and Germany are both like-minded partners of Taiwan, and the three countries uphold such fundamental values as democracy, freedom, human rights, and the rule of law. Maintaining peace across the Taiwan Strait and stability in the Indo-Pacific has become a worldwide consensus. As an indispensable member of the global village, Taiwan will continue to defend the rules-based international order and work with other countries to jointly enhance peace, security, and prosperity in the Indo-Pacific. (E)
 

MOFA congratulates Thailand on successful completion of general election

Source: Republic of China Taiwan

MOFA congratulates Thailand on successful completion of general election

Date:2026-02-09
Data Source:Department of East Asian and Pacific Affairs

February 9, 2026      No. 046  On February 8, Thailand held a general election for its 500-seat House of Representatives. The Bhumjaithai Party, led by Prime Minister Anutin Charnvirakul, won the largest number of seats and is expected to work with other parties to form a coalition government. Minister of Foreign Affairs Lin Chia-lung extends sincere congratulations to Thailand on the successful completion of its general election. He has instructed the Taipei Economic and Cultural Office in Thailand to promptly send congratulatory messages to the Thai government and elected parliamentarians on behalf of the government of the Republic of China (Taiwan).Taiwan and Thailand are important partners and have long enjoyed close exchanges in such areas as the economy, trade, investment, tourism, culture, and education. In recent years, under Taiwan’s New Southbound Policy, bilateral cooperation has continued to deepen, and people-to-people exchanges have grown in frequency, producing fruitful outcomes. Building on this existing foundation of constructive collaboration, Taiwan will continue to take a pragmatic approach and uphold the principle of reciprocity in working with the new Thai government and House of Representatives so as to further enhance substantive cooperation and jointly promote peace, stability, and prosperity throughout the region. (E)
 

Sixth Taiwan-US Economic Prosperity Partnership Dialogue successfully concludes, deepening bilateral ties

Source: Republic of China Taiwan

January 28, 2026  
No. 037  
The sixth Taiwan-US Economic Prosperity Partnership Dialogue (EPPD) was held in person on January 27 in Washington, DC. The high-level meeting of the EPPD was cochaired by Taiwan Minister of Economic Affairs Kung Ming-hsin and US Under Secretary of State for Economic Affairs Jacob Helberg. A number of senior Taiwan officials and experts attended the meeting, including Deputy Minister of Foreign Affairs Chen Ming-chi, Deputy Minister of Digital Affairs Isabel Hou, Political Deputy Minister of Education Liu Kuo-wei, President of the Industrial Technology Research Institute (ITRI) Chang Pei-zen, and representatives from the National Science and Technology Council and other agencies. A working-level meeting was also held on the same day to further cooperation and exchanges in all domains.

During the meeting, the two sides agreed that peace and stability across the Taiwan Strait were vital to global economic security and prosperity. They also signed a joint statement on the Pax Silica Declaration and Taiwan-US economic security cooperation, underscoring Taiwan’s importance in artificial intelligence (AI) supply chains.

Moving forward, Taiwan and the United States will establish working groups on important collaboration issues and continue discussions to strengthen supply chain security and key infrastructure so as to jointly build a more secure, more prosperous, and innovation-driven Taiwan-US partnership.

This year’s EPPD covered such topics as AI supply chains, digital infrastructure, critical minerals, unmanned aircraft systems (UAS) supply chains, high-tech talent development, Taiwan-US collaboration in third countries, and bilateral economic cooperation. A brief overview of the key points is provided below.

1. Ensuring AI supply chain security
Both sides agreed to jointly review partnerships between Taiwan and US enterprises in AI technology stacking projects and advanced robotics, discuss bolstering supply chain cybersecurity resilience cooperation, and foster the development and application of trusted traditional Chinese corpora for large language models. Together, Taiwan and the United States aim to shape a sovereign AI data foundation characterized by diversity and openness while exploring collaboration to advance trusted AI systems in third countries. 

2. Digital infrastructure
The United States supports Taiwan in exploring innovative communications technologies as part of a multipronged approach to increase communications resilience. Taiwan will look into working with US low-orbit satellite suppliers and collaborating with the United States to explore opportunities with partner countries in such domains as undersea cables and ICT infrastructure to boost trusted connectivity. The two countries also agreed to leverage existing Taiwan-US 5G supply chain cooperation platforms to advance substantive collaboration between industries on both sides in open networks, next-generation communications (such as 6G technologies), supply chains, and expanding into international ICT infrastructure markets.

3. Critical minerals supply chains
Both sides committed to strengthening collaboration in such areas as critical minerals mining and processing, as well as promoting bilateral technical exchanges in critical minerals refining and electronic waste recycling. Together, they aim to provide partner countries with high-standard alternative solutions and jointly enhance Taiwan-US supply chain resilience.

4. UAS supply chains
The two sides pledged to work together to build non-red supply chains and promote the commercial development, regulatory compliance, certification, and comanufacturing of UAS. Before the meeting, Taiwan’s ITRI and the US-based Association for Uncrewed Vehicle Systems International signed an assessor license and services agreement under the Green UAS program. It will facilitate Taiwan’s UAS industry in aligning with international certification mechanisms, upgrading related domestic supply chains, and fostering overall industrial development.

5. High-tech talent development
Taiwan and the United States will continue to enhance coordination through the EPPD and other platforms, working together to further talent cultivation and skills development in the AI industry and exchanging views on the AI Academy framework.

6. Taiwan-US cooperation in third countries
In addition to collaborating with Taiwan’s diplomatic allies, the two sides agreed to explore cooperation opportunities in the Philippines, Latin America, and other regions of shared priority. The United States will continue to elevate Taiwan’s preparedness to respond to economic coercion and support of Taiwan partners that are potentially vulnerable to economic coercion.

7. Bilateral economic cooperation
Both sides agreed to steadily deepen collaboration on such issues as investment review and expediting the resolution of double taxation.

The dialogue marked the sixth round of talks under the EPPD framework since its establishment in 2020. Senior officials from various Taiwan agencies and departments traveled to the United States to attend the EPPD in person, highlighting the continued development of a comprehensive and close bilateral partnership. Both sides stated that the dialogue yielded fruitful results and said that they looked forward to continuing to deepen cooperation across domains through the mechanism to jointly improve the well-being and economic prosperity of people on both sides. (E)

Interest in Stanley mart sought

Source: Hong Kong Information Services

The Food & Environmental Hygiene Department today invited expressions of interest (EOIs) from the market in the future operation of the Stanley Waterfront Mart.

The EOI exercise asks interested parties to put forward concrete proposals on aspects such as layout, stall mix, and operating models by April 23.

Located along the Stanley Promenade, the mart, formerly the Stanley Temporary Market, is a public market managed by the department.

Commencing operation in 2007, it originally housed 20 stalls offering light refreshment as well as dry and wet goods. Due to changes in the business environment and other factors, the number of tenants at the mart has gradually decreased in recent years. At present, all long-term tenants have moved out, and the stalls are now open to interested parties for operation under short-term tenancies.

The department considers that the operating model of the mart can be revamped by introducing a single operator management model. It anticipates that through enhancing the communal seating area, setting up a pet-friendly resting area, and offering a diversified mix of dining, retail, and cultural experiences, the site can be transformed into a new venue serving both the public and tourists.

Govt to propose striking off 3 firms

Source: Hong Kong Information Services

The Security Bureau said today that the Secretary for Security intends to recommend that the Chief Executive-in-Council order the Registrar of Companies to strike three companies relating to Apple Daily off the Companies Register.

The Secretary for Security has issued written notices to the three companies – Apple Daily, Apple Daily Printing and AD Internet – affording them an opportunity to make written representations by February 25 before a recommendation is made.

Any written representations submitted by the three companies will be submitted together to the Chief Executive-in-Council for a decision on whether or not to make the order, the Security Bureau said.

In a statement, the bureau noted that Lai Chee-ying and the three companies related to Apple Daily were convicted on December 15, 2025, of three charges involving offences endangering national security. The court handed down sentences on Monday, ordering each of the three companies to pay a fine of HK$3,004,500.

The statement added that Article 31 of the Hong Kong National Security Law (HKNSL) stipulates that the operation of an incorporated or unincorporated body such as a company or an organisation shall be suspended or its licence or business permit shall be revoked if the body has been punished for committing an offence under the law.

 

It also pointed out that the Hong Kong Special Administrative Region Government has a responsibility to enforce the relevant provisions in Article 31 of the HKNSL regarding the three companies related to Apple Daily.

Citing the serious nature of the offences and recent convictions, the bureau stated that the Secretary for Security now considers it necessary to prohibit the operation of the three companies related to Apple Daily to safeguard national security. Consequently, the Secretary for Security plans to recommend that the Chief Executive-in-Council exercise the powers under section 360C of the Companies (Winding Up and Miscellaneous Provisions) Ordinance to order the Registrar of Companies to strike the three companies off the Companies Register.

The statement noted that if the Chief Executive-in-Council eventually decides to order the Registrar of Companies to strike the three companies relating to Apple Daily off the Companies Register, the three companies will become “prohibited organisations”.

It added that any person who engages in the acts specified in sections 62 to 65 of the Safeguarding National Security Ordinance commits an offence, including acting as an office-bearer or a member of a prohibited organisation and giving aid of any kind to a prohibited organisation, and is liable on conviction to a maximum fine of $1,000,000 and imprisonment for 14 years.

Brussels ETO begins Chinese New Year celebrations in Italy

Source: Hong Kong Government special administrative region

Brussels ETO begins Chinese New Year celebrations in Italy  
     Co-organised by Brussels ETO, the Hong Kong Trade Development Council and Invest Hong Kong, the reception in Milan was attended by over 150 guests from the government, business, sports, art and culture, as well as representatives of the Hong Kong, China Winter Olympics delegation, including the President of the Sports Federation and Olympic Committee of Hong Kong, China (SF&OC), Dr Timothy Fok; the Honorary Secretary General of the SF&OC, Mr Edgar Yang; and Honorary Deputy Secretary General of SF&OC and the Chef de Mission of the Hong Kong, China Delegation, Mr Wong Po-kee.
Issued at HKT 21:50

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Speech by Permanent Secretary for Financial Services and the Treasury (Financial Services) at Hong Kong Securities and Investment Institute Annual Dinner (English only)

Source: Hong Kong Government special administrative region

Speech by Permanent Secretary for Financial Services and the Treasury (Financial Services) at Hong Kong Securities and Investment Institute Annual Dinner (English only) 
Chairman Kevin Liem (Chairperson of HKSI Institute), Chairman Dr Kelvin Wong (Chairman of the Securities and Futures Commission (SFC)), Hon Robert Lee (Legislative Council Member), Tim (Honorary Fellow of HKSI Institute, Mr Tim Lui), Julia (Chief Executive Officer (CEO) of the SFC, Ms Julia Leung), Yan-chee (Managing Director of the Mandatory Provident Fund Schemes Authority, Mr Cheng Yan-chee), Janey (CEO of the Accounting and Financial Reporting Council, Ms Janey Lai), distinguished guests, ladies and gentlemen,
 
     It gives me great pleasure to join you all this evening at the Annual Dinner of the Hong Kong Securities and Investment Institute. This is a good occasion to salute the Institute’s achievements, and the contribution of the many avid participants of our financial services community.
 
     Guided by its vision to champion professional standards of excellence in contributing to Hong Kong’s role as an international financial centre, the HKSI Institute has become a trusted body in conducting examinations for regulated financial activities and an effective platform for promoting professional development. This is well demonstrated by the 30 000 enrolments for examination it handled and the 11 per cent growth in its individual membership in 2024-25.
      
     Driven by the same pursuit of excellence, our human capital as benchmarked against factors such as the availability of skilled personnel and level of education ranked second highest in the world in the latest edition of the Global Financial Centres Index. This helped anchor Hong Kong’s standing as a leading international financial centre, third in the world and first in Asia Pacific.
      
     Let me put this in context with the help of some big picture figures. In year 2000, Hong Kong’s GDP (Gross Domestic Product) stood at HK$1,283 billion. It increased by 1.4 times to HK$3,112 billion in 2024. Over the same period, the share of the financial services sector in Hong Kong’s GDP increased from 12.8 per cent to 26.2 per cent, while its share in employment increased from 5.3 per cent to 7.2 per cent. Meanwhile, our stock market grew almost nine times from HK$4,862 billion in 2000 to HK$47.4 trillion in 2025 in terms of market capitalisation. The value-added function of our financial services sector is obvious.
      
     Public policy alone cannot build a market. Yet sound policies are essential for creating a conducive environment for the healthy and enduring growth of our capital markets. To illustrate a key principle of public policy considerations, I would point to the Securities and Futures Ordinance where the regulator is given a mandate to maintain and promote the fairness, efficiency, competitiveness, transparency and orderliness of the securities and futures industry. The duality of mandate on regulation and development can also be found in the ethos of our banking, insurance, mandatory provident fund, and accounting and financial reporting regulators. This is more than a balancing act. It is a means to enable the market to create value, allocate capital for growth, respond swiftly to changes, innovate, and capture new opportunities via trusted, quality-assured and open platforms.
      
     Openness is indeed the hallmark of Hong Kong’s financial system. Thanks to prudent built-in buffers, diligent cross-agency monitoring and enforcement, alignment with international best practices and standards as well as robust institutional strengths, our financial system has overcome many tests and challenges over the years and has shown remarkable resilience and stability. The strong performance of our equity market last year with IPO funds raised regaining its world leading status is a case in point. And thanks to the “one country, two systems” arrangement, Hong Kong’s financial system continues to benefit from the rule of law, respect of contracts, free flow of capital and unique connection with the Chinese Mainland capital markets.
      
     As for the future, uncertainties caused by geopolitics unseen for decades abound. Yet global capital and investors also see ample opportunities in this part of the world, with the Asia region providing significant sources of economic growth. In particular, the national 15th Five Year Plan provides clear pointers for societal and economic developments. Hong Kong stands ready to contribute to help realise the vision.
      
     Along this evening’s theme of “Fostering New Opportunities”, I would like to share three priority areas of our work to capture the opportunities going forward.
 
Building Multiple Market Pillars
 
     Hong Kong has a vibrant equity market. Average daily turnover rose more than 89 per cent year-on-year to almost HK$250 billion in 2025. Funds raised through IPOs and post-IPOs by way of placing and other means reached HK$285.8 billion and HK$358.6 billion respectively, both representing an increase of more than 200 per cent year-on-year.
      
     From the introduction of weighted voting rights and home coming listings, admission of pre-revenue bio-tech companies and specialist tech companies, to GEM board reform and streamlining of the listing approval process with the median vetting time by the stock exchange down to 32 business days in 2025, we have adopted a reform mindset to keep our fund raising platform nimble in capturing world trends and with our feet grounded firmly on a core value: quality. We will keep enhancing the listing regime. In consultation with the Securities and Futures Commission, the HKEX (Hong Kong Exchanges and Clearing Limited) will conduct a market consultation in the first quarter of this year on specific proposals, including enhancements to the listing regime for companies with weighted voting rights.
      
     Cash market aside, the derivatives market which is important for risk hedging and price discovery also had a record year, with 1.66 million contracts traded daily on average. The HKEX has recently adjusted the interest payments and margin collateral arrangements, thus lowering the costs of trading activities for market participants. It will soon publish measures for streamlining the issuance mechanism for structured products.
      
     Asset and wealth management business is another pillar of strength in our financial system. From the creation of new legal vehicles such as the Limited Partnership Fund to tax concession schemes for single family offices and stamp duty waiver for REIT (real estate investment trust) unit trading, we have introduced a series of facilitative measures and attracted the presence of a critical mass of asset owners and managers. Assets under management (AUM) amounted to HK$35 trillion in 2024 and the growth momentum continued in 2025 with some HK$357 billion net fund inflows for Hong Kong-domiciled SFC authorised funds.
      
     As shown in a survey report released yesterday, over 3 380 single family offices were operating in Hong Kong in end-2025, representing a 25 per cent increase in two years. Working closely with the fund management, private equity and family office sectors, we will introduce legislative proposals to widen the coverage of fund eligible for tax exemption and streamline carried interest arrangement under the tax regime. We will also take forward legislative amendments to facilitate corporate restructuring of REITs.
      
     Gaining perhaps less limelight but not less of our policy attention is the further development of our fixed income and currency (FIC) market. Hong Kong has solidified its position as Asia’s leading international bond issuance hub, accounting for nearly 30 per cent of issuances by Asian entities. The amount of green and sustainable bonds arranged in Hong Kong is top of the league in Asia, accounting for 45 per cent of the regional total. Coupled with the frequent issuances of government bonds by the Chinese Ministry of Finance and the HKSAR (Hong Kong Special Administrative Region) Government as well as issuances by multilateral organisations and local corporates, Hong Kong has established a scalable FIC (fixed income and currency) ecosystem. We therefore welcome the publication of a Roadmap jointly by the SFC and the Hong Kong Monetary Authority (HKMA) last September to position Hong Kong as a global FIC hub. The 10-point action plan, with its proposed establishment of a dedicated digital FIC trading platform connecting users with a wide range of liquidity providers, is visionary and at the same time provides practical pathways for boosting issuances and liquidity.
      
     Added to this list of market development initiatives is the move to promote gold and commodity storage and trading in Hong Kong. We aim to upgrade our gold storage capacity to over 2 000 tonnes in three years and are taking active steps to establish a central clearing system for gold trading in compliance with international standards. We have established a wholly government-owned company to serve as the governing body with its board drawing members from both the public and private sectors. The clearing system is scheduled to commence trial operation this year.
      
Widening Connectivity and Embracing Multilateralism
      
     Hong Kong thrives on its hub function in many areas, notably trade, transport and aviation as well as financial services. For financial services, we are connected globally with significant participation of international players. We also have the unique advantage of connecting international investors with Chinese Mainland companies, helping them go global, and providing similar opportunities for Chinese Mainland investors on the capital market two-way street.
      
     Since the launch of the Stock Connect Scheme in 2014, the combined southbound and northbound average daily trading turnover has grown from HK$7 billion to more than HK$330 billion in 2025. ETFs (exchange-traded funds), interest rate swaps, bonds and wealth products have been included in the respective Connect Schemes. Under Wealth Management Connect 2.0, for example, we have included brokerage houses in the network of service providers in addition to banks. To date, more than 170 000 investors in the Greater Bay Area participated in the scheme involving more than RMB 131 billion of funds.
      
     Indeed, we are actively strengthening Hong Kong’s off-shore Renminbi business hub role, building on our RMB 200 billion pool of liquidity. Dim sum bond issuance hit the RMB 1 trillion mark last year. RMB 85 billion of bonds have been issued under the HKSAR Government’s bond programmes with tenure ranging from two to 30 years. Meanwhile, the HKMA has recently introduced the Renminbi Business Facility to allow banks to provide longer term Renminbi financing by their corporate customers for daily operations and capital expenditures in addition to trade financing. Following the introduction of the dual-counter model in the HKEX for securities listed in both HKD (Hong Kong Dollar) and Renminbi in June 2023, we will introduce a bill into the Legislative Council later this year to allow the related stamp duty payments to be made also in Renminbi.
      
     With our strong financial and legal systems honouring the spirit of a level playing field, Hong Kong appeals to corporates and groups for setting up regional and global bases. We are glad that the company redomiciliation scheme that came into effect last May has already attracted 22 successful applications with many more in the pipeline. Since 2016, qualifying corporate treasury centres in Hong Kong have been enjoying preferential tax treatment. We are keeping the scheme under review.
      
     Likewise, we introduced a legislative framework to facilitate the issuance of Islamic bonds in Hong Kong in 2013. Admittedly, the ecosystem was not as conducive as it is now. With stepped-up outreach to the Middle East and Belt and Road economies, we are glad to see active interactions resulting in the cross listings of ETFs in each other’s market and also listings of entities from Kazakhstan, Indonesia and other economies in our stock market recently. We look forward to deepening the relationship through the many cooperation initiatives.
      
     The connection with emerging market economies will be even stronger as the Asian Infrastructure Investment Bank (AIIB) is going to set up an office in Hong Kong. That vote of confidence is in line with Hong Kong’s role as a green and sustainability finance hub embracing international disclosure standards and function as a sophisticated financial management centre. It is also a manifestation of the importance we attach to the operation of multilateral institutes such as the AIIB. Multilateralism provides an objective framework for economies to achieve growth through cooperation and settle disputes through civil means. For that, we look forward to welcoming APEC (Asia-Pacific Economic Cooperation) finance ministers to our city in October for the APEC Finance Ministers’ Meeting during APEC China 2026.
      
Harnessing Technology and Increasing Market Efficiency
      
     Technological advancement has been an enabler for upgrading our financial infrastructure to increase market efficiency. This is a continuously evolving journey. IPO settlements have been automated and speeded up through FINI (Fast Interface for New Issuance); thanks to all market participants’ efforts, trading under severe weather has been successfully implemented since September 2024. This year, we look forward to walking the last mile to enable the full digital holding of securities by investors in their own name and paper-less transfer of titles under the uncertificated securities market mechanism. 
      
     On the societal level, the digital eMPF Platform helps automate MPF (Mandatory Provident Fund) scheme administration. Onboarding has been 98 per cent completed in terms of AUM, with 1.7 million registered users to-date. The automation has brought a 36 per cent reduction in administration fees for members. This is expected to reach 78 per cent in eight years’ time.
      
     Technology, however, is not just a passive medium playing an auxiliary role. Digital and AI-enabled technology is driving production and society transformation. It is a key driver of economic growth in itself.
      
     This is evidenced by the fact that last year, about 70 per cent IPO funds raised were for info tech, bio tech, new energy and advanced manufacturing related companies. Last December, the HKEX Tech 100 Index tracking large and mid-cap tech companies listed in Hong Kong and eligible for Southbound Stock Connect was launched. In the digital asset space, the SFC has issued eleven licences for virtual asset trading platforms with two of them subsequently listed in Hong Kong’s stock market. And three tranches of tokenized green bonds have been issued under the Government green bond programme, affirming the technical feasibility of on-chain issuances.
      
     The twin-goal of regulation and development will continue to guide the way forward for financial innovation. Prudential and conduct regulatory requirements such as fitness and properness of personnel and segregation of client and proprietary capital are necessary safeguards for investor and user protection.
 
Conclusion
 
     Ladies and gentlemen, while having the privilege of being on stage, allow me to conclude by expressing my sincere gratitude to my fellow public sector regulators and partners for their esprit de corps and hard work over the years. My thanks also go to the many distinguished private sector and industry stakeholders for your frank views and advice. The goodwill to communicate and act for the betterment of our financial market is remarkable, truly living out the spirit of proactive government and efficient market (有為政府,高效市場).
      
     During my public service career, I have spent quite a bit of time in the financial services area that comes under the ambit of the Financial Services and the Treasury Bureau. As a token of my appreciation, I would like to present to you the Chinese character “財” which is made up of two parts: “貝” or shells, the primitive form of money as a unit of account, payment and storage of value; and “才” which gives the sound and in itself means talent, competence, and I would add, integrity. Over the centuries, the financial capital (貝) and human capital (才) have mutated into a lot of sophisticated forms or non-form. Whatever form of existence they may take, I believe that the combined force of financial and human capitals will continue to drive our international financial centre journey in scaling new heights. I thank the HKSI Institute for the honour of addressing you today, and Ruth and team for their excellent implementation of the 10-year long Asset and Wealth Management training programme. As the Year of the Horse is around the corner, I wish you a lot of horse power for your business endeavours and vitality and prosperity for all your pursuits in the days to come.
      
     Thank you.
Issued at HKT 22:02

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S for S intends to make recommendation to CE-in-C on striking-off order against three companies relating to Apple Daily

Source: Hong Kong Government special administrative region

     Following the Court of First Instance of the High Court’s conviction and sentence of Apple Daily Limited, Apple Daily Printing Limited and AD Internet Limited (three companies relating to Apple Daily) for offences endangering national security, the Secretary for Security yesterday (February 11), pursuant to Article 31 of the Hong Kong National Security Law (HKNSL) and section 360C of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), issued written notices to the three companies respectively, affording them an opportunity to make representations, before the Secretary for Security recommends the Chief Executive-in-Council (CE-in-C) to order the Registrar of Companies to strike the three companies off the Companies Register.

     A spokesperson for the Security Bureau said, “Lai Chee-ying and the three companies relating to Apple Daily were prosecuted with a total of three charges of offences endangering national security, including ‘conspiracy to commit collusion with a foreign country or with external elements to endanger national security’ (contrary to Article 29 of the HKNSL and sections 159A and 159C of the Crimes Ordinance), and ‘conspiracy to print, publish, sell, offer for sale, distribute, display and/or reproduce seditious publications’ (contrary to sections 10, 159A and 159C of the Crimes Ordinance). The Court convicted Lai Chee-ying and the three defendant companies of all charges on December 15, 2025 and handed down sentences on February 9 this year. Amongst others, the three companies relating to Apple Daily were each sentenced to a fine of HK$3,004,500.