Taiwan’s Premier Cho Jung-tai has announced a comprehensive economic and social reform plan, with the goal of attracting nearly $100 billion in investments. This announcement follows former President Donald Trump‘s statement that “Taiwan should pay us for defense.”
Overview: The reform plan will concentrate on energy, artificial intelligence, and infrastructure. Premier Cho shared in an interview with Nikkei Asia that the strategy includes targeting Taiwanese investors who are dissatisfied with doing business in China, a trend the government hopes to take advantage of.
Key Points:
The plan aligns with President Lai Ching-te‘s vision of a “smarter, forward-looking sustainability,” exploring ocean and space industries, and strengthening Taiwan’s global presence.
Despite facing a parliamentary majority from the opposition, Cho is committed to moving forward with the reform to rejuvenate the Democratic Progressive Party after Lai’s re-election in January.
The plan involves establishing an Economic Development Commission, led by Cho, to supervise a $100 billion investment in development.
Cho also stressed the importance of addressing concerns about livelihoods and housing, as well as attracting Taiwanese investors who have shifted away from China’s business environment. He noted, “China is no longer an attractive investment environment from a legal or political perspective. Many Taiwanese companies are returning to Taiwan.”
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Another top priority for Cho is energy security. With many existing power plants set to close between 2023 and 2026, it is a critical period.
Next year, the final reactor at Taiwan’s Third Nuclear Power Plant is slated for retirement. Cho mentioned that a proposal to extend nuclear service should have been made five years ago. While the government is open to exploring future nuclear energy systems, he emphasized that “tomorrow’s technologies won’t meet our power demands today.”
The urgency has increased as NVIDIA Corp, Foxconn Technology Group, Apple Inc., Super Micro Computer Inc, and others have announced plans to build new supercomputers or AI data centers in Taiwan. Chipmakers like Taiwan Semiconductor Mfg. Co. Ltd. are also expanding their capacity.
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Significance: This announcement comes at a crucial time for Taiwan, as it navigates complex geopolitical and economic challenges.
Recently, U.S. President Joe Biden‘s withdrawal from the presidential race led to a decline in shares of major Taiwanese companies like TSMC, highlighting the market’s sensitivity to international political events. Former President Donald Trump‘s remarks about Taiwan paying for defense have raised concerns about future U.S. support.
The rapid growth of AI technologies is also putting pressure on Taiwan’s infrastructure. Chief Telecom‘s President Jacky Liu has called for a complete overhaul of data centers to meet the demands of AI computing, underscoring the urgent need for infrastructure upgrades.
President Lai Ching-te has expressed gratitude to Micron Technology Inc.‘s CEO for ongoing investments in Taiwan, emphasizing the importance of foreign investment in maintaining Taiwan’s technological advancement.
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This article on Taiwan’s $100B Economic Reform Plan, following Trump’s defense payment suggestion, is originally published on Benzinga.com
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