Taiwan must stay key player in global democratic supply chains: Lai

Taipei, Oct. 10 (CNA) Taiwan's economic strength is "no miracle," but to remain so it must continue to build on its central role in supply chains for the world's democracies, President Lai Ching-te (賴清德) said in his first Double Ten National Day address Thursday.

"Taiwan's economic strength is no miracle; it is the result of the joint efforts of all the people of Taiwan," Lai said in the speech titled "Taiwan Together for Our Shared Dream."

"We must strive for an innovative economy, a balanced Taiwan and inclusive growth," Lai said, adding that the government must stay on top of trends to "remain a key player in supply chains for global democracies."

In order to achieve those goals, Lai said he would vigorously develop Taiwan's "Five Trusted Industry Sectors" -- semiconductors, artificial intelligence (AI), military, security and surveillance, and next-generation communications -- and expand their global presence.

The "Five Trusted Industry Sectors" are the core of an industrial policy plan approved last month by the Cabinet, which emphasizes making Taiwan an "indispensable and trusted technological partner" to global democracies.

Specifically, the focus on the five sectors aims to help Taiwan "capitalize on business opportunities created by shifting geopolitical trends" and "secure key positions in global supply chains," thereby enhancing national security, according to the plan.

Regarding the challenges Taiwan faces, Lai said the country has to better adapt to extreme weather and continue promoting its "second energy transition" while ensuring a stable power supply.

Lai, like his predecessor Tsai Ing-wen (蔡英文), plans to phase out Taiwan's use of nuclear power by next year, while gradually reducing its use of coal and expanding renewable energy sources.

In the speech, Lai said his focus was not only on growing the economy, but ensuring that "the fruits of economic growth can be enjoyed by all of our people."

In that vein, he touted policies benefiting various sectors of society, such as increasing child care subsidies for parents of young children, expanding rent-subsidized housing for working-age people, and improving long-term care options for senior citizens.

The government is also working to build a Taiwan that is "balanced across all its regions," Lai said, pledging to improve road safety in the east and basic infrastructure on Taiwan's outlying islands.

Noting areas where the government has faced criticism, Lai said he was "deeply aware" of the pressure created by high housing prices and the public anger over "rampant fraud."

"I give the people my promise that our administration will not shirk these issues," Lai said. "Even if it offends certain groups, we will address them no matter the price."

Industry response

Responding to the speech, Pan Chun-jung (潘俊榮), head of the Taiwan-based Chinese National Federation of Industries (CNFI), said he agreed with Lai's emphasis on the need to modernize Taiwan's economy and complete its energy transition.

At the same time, a stable energy supply is "the most basic need" for industry development, said Pan, a frequent critic of the government's plans to phase out nuclear power.

"Just as a person can't live without food," neither foreign nor domestic firms will stay in the country without a stable power supply, Pan warned.

Meanwhile, National Association of Small and Medium Enterprises, R.O.C. Chairman Lee Yu-chia (李育家) said that given Lai's support for "balanced economic development," he hoped the government would invest more in helping small firms modernize and transition into new industries.

As for the cross-strait situation, Pan noted that the CNFI has over 9,000 member companies with investments in China.

Politics aside, this makes it essential for both sides of the strait to communicate and pursue peaceful relations, if only for reasons of economic development, he said.