ISSUE 212                                                                           September 28, 2023
Taiwan Weekly
Reliable report and analysis of the most important issues in Taiwan
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Analysis of Hou's U.S. Visit
taiwanweekly2019@gmail.com
While visiting the United States, Kuomintang (KMT) presidential candidate Hou Yu-ih stated that cross-strait negotiations are like the police's "attack theory." One must have leverage and improve his abilities before he can talk to the other side.
(Photo from: United Daily News)
Featured News

Hou: Negotiation with Beijing Only Possible with Sufficient Leverage

United Daily News, September 20, 2023 

 

Kuomintang (KMT) presidential candidate Hou Yu-ih made his debut visit to the United States on September 19 and delivered a speech in a seminar at the Brookings Institution. In the seminar, the attending scholars' questions focused on Taiwan's defense budget, trade in services and trade in goods with mainland China. Hou answered all those questions on the spot. In response to the question on the 1992 Consensus, Hou reiterated his opposition to the “One Country, Two Systems” formula and de jure Taiwan independence. According to Hou, his 1992 Consensus is based on the Republic of China (ROC) Constitution and the Act Governing Cross-Strait Relations; it is not “One Country, Two Systems.” 

Featured Editorial
taiwanweekly2019@gmail.com
According to media commentary, Hou said what both the United States and China wanted to hear during his visit to the United States, satisfying both sides.
(Photo from: United Daily News)

Hou Stresses Key Words Both U.S. and China Wanted to Hear

United Daily News Commentary, September 20, 2023

 

A proposal to avoid cross-strait conflict was put forth by Kuomintang (KMT) presidential candidate Hou Yu-ih during his recent visit to the United States. The proposal responds to American expectations to stabilize the Taiwan Strait and regional security. His proposal to enhance Taiwan’s own military capability as a deterrent and bargaining chip is similar to the approach taken by the administration of President Joe Biden in the United States, and Hou’s proclamation of opposition to both Taiwan de jure independence and “One Country, Two Systems” was a way of reiterating his own position to Beijing. 

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From: https://udn.com/news/story/123307/7451272 

Featured Opinion
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According to a commentator, the request by President Chen Chu of the Control Yuan for the National Audit Office to appoint a spokesperson has trespassed the limits of her constitutional authority.
(Photo from: The Storm Media)

Control Yuan Interferes with Supervisory and Auditory Powers

By Hsia Chen

The Storm Media, September 22, 2023   

 

Once again, President Chen Chu of the Control Yuan came under the media spotlight. However, her media attention during the egg import controversy lasted only 24 hours. After the Control Yuan issued a strong clarification, it quickly dissipated. In contrast to the Minister of Agriculture Chen Chi-Chung, who resigned over the egg scandal, the question remains: Did Chen Chu, as head of the Control Yuan, intervene in the National Audit Office’s (NAO) authority? It may seem like a “minor matter,” but because the Control Yuan’s press release emphasized the “constitutional authority” of the NAO, it is worth discussing, especially considering Chen Chu still has three years left in office. Chen Chu’s so-called “minor matter” has unavoidably become a “constitutional matter” for Taiwan’s democracy. 

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From: https://www.storm.mg/article/4872758?mode=whole 

This Week in Taiwan
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The Ministry of Economic Affairs held an electricity price review committee meeting and decided not to raise electricity prices. The Taiwan Power Company estimates that it will have cumulative losses of nearly NT$400 billion (about US$12.4 billion) by the end of the year. The freeze has been questioned as an electoral consideration.
(Photo from: United Daily News)

September 18: Chinese Foreign Minister Wang Yi and U.S. National Security Advisor Jake Sullivan held a new round of strategic communication in Malta. According to Chinese state media, the two met for over 12 hours, with the issue of Taiwan taking up the most time. Wang stated that the correct direction for a peaceful resolution of the Taiwan issue is to firmly oppose de jure "Taiwan independence" and support China's peaceful reunification.

 

September 18: The Ministry of National Defense (MND) announced on September 17 a record-breaking 103 instances of People's Liberation Army (PLA) aircraft conducting activities near Taiwan within 24 hours, posing serious challenges to the security of the Taiwan Strait and the region. The MND called on Beijing to take responsibility and immediately cease such destructive unilateral actions. Responding to questions from foreign media, Spokesperson Mao Ning of mainland China's Ministry of Foreign Affairs stated that this is not a diplomatic issue and that Taiwan is part of China's territory, with no such thing as the "median line" of the Taiwan Strait.

 

September 19: The controversy over imported eggs and food safety has escalated, with incorrect expiration date labeling and concerns about the lack of cold chain preservation. The Ministry of Agriculture has admitted to a large number of expired eggs, which were destroyed (54 million in total). Local governments have also discovered domestically produced eggs being mixed into liquid egg products and flowing into school lunches and pastry businesses.

 

Minister of Agriculture Chen Chi-chung's resignation was approved, and Premier Chen Chien-jen apologized twice during his special report to the Legislative Yuan. The district prosecutor offices in Taipei, New Taipei, Taoyuan, Taichung, and Kaohsiung have initiated investigations into offenses related to food safety and forgery of documents.

 

September 19: The Ministry of Economic Affairs (MOEA) held an electricity price review committee meeting and decided not to raise electricity prices, only implementing a 15 percent increase for high-voltage users such as department stores and cinemas. As Premier Chen had already revealed in July that electricity prices would not be raised, the decision to freeze price increases during the review meeting has been questioned for electoral considerations. As of the end of July, the Taiwan Power Company has accumulated losses of NT$323.1 billion (about US$11.6 billion), with an estimated total loss of nearly NT$400 billion (about US$14.3 billion) by year-end.

 

September 19: The Department of Investment Review, MOEA, approved eight major investment cases, including the Taiwan Semiconductor Manufacturing Company's (TSMC) increased investment of US$4.5 billion in its Arizona plant. This is TSMC's second capital increase after half a year. Governor Katie Hobbs of Arizona, who was visiting Taiwan, revealed that she is negotiating with TSMC to increase advanced packaging production capacity; TSMC has not confirmed this.

 

September 21: The Central Bank revised down its economic growth forecast for the year for the fourth time to 1.46 percent.

 

After the Federal Reserve announced that interest rates would remain unchanged, the Central Bank's Board of Governors and Supervisors also decided to keep interest rates unchanged in the third quarter. However, Governor Yang Chin-long released hawkish remarks that if prices are high, the interest rate may be higher, hinting that the interest rate may remain relatively high for some time.

 

September 21: Kuomintang (KMT) presidential candidate Hou Yu-ih returned to Taiwan upon concluding his visit to the United States. He stated that the United States is concerned about the situation in the Taiwan Strait, and he has expressed his intention to defend sovereignty, independence, freedom, and democracy while resolving cross-strait differences peacefully. He proposed a "3-D strategy" of deterrence, dialogue, and de-escalation, using strength to ensure peace and communication to enhance understanding.

 

In a seminar in the United States, Hou stated that he firmly opposes "One Country, Two Systems" as well as Taiwan independence. His "1992 Consensus" is not "One Country, Two Systems" but is based upon the Constitution and Act Governing Cross-Strait Relations. He stated that his visit to the United States was to let American friends understand that Taiwan is an important member of the Indo-Pacific region that is willing to become a responsible stakeholder. Under Hou, Taiwan will not be a troublemaker but will play a good role as a "peace promoter" and "risk reducer."

 

September 22: In a rare move, the MND released the movements of PLA aircraft on the evening of September 21, revealing that the Armed Forces actively monitor the movements of the PLA's long-range fire, Rocket Force, and ground troops near Dacheng Bay in Fujian Province. During an interview with the press at the Legislative Yuan, Minister of National Defense Chiu Kuo-cheng stated that the recent enemy situation has been abnormal. The Armed Forces assess that the PLA will be conducting joint military exercises, and the circumstances are under control.

Taiwan Weekly is a newsletter released every week by Fair Winds Foundation and Association of Foreign Relations which provides coverage and perspectives on the latest developments in Taiwan.

The conclusions and recommendations of any Taiwan Weekly article are solely those of its author(s) and do not reflect the views of the institutions that publish the newsletter.

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