ISSUE 316
October 13, 2025
President Lai: Trump Deserves Nobel Peace Prize
● This Week in Taiwan: 
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President Lai Ching-te’s flattery of U.S. President Donald Trump and the suggestion that he deserves a Nobel Peace Prize cannot guarantee stability in the Taiwan Strait.
Featured Editorial

President Lai Flatters Trump, helping Him “De-Taiwanize”

 

On the eve of National Day, President Lai Ching‑te gave an interview to an American conservative radio program, warning that if Taiwan were annexed, then it would directly harm U.S. interests. He added that if President Donald Trump of the United States could persuade Chinese President Xi Jinping to abandon the use of force against Taiwan, he would deserve the Nobel Peace Prize. A White House spokesperson later responded that “Trump deserves the prize,” prompting cheers from supporters of President Lai’s ruling party, who viewed it as a symbolic alignment between President Lai and Mr. Trump. Yet, the White House avoided any mention of Taiwan—suggesting that the praise was more about flattering Mr. Trump than endorsing President Lai’s remarks.

Featured Opinion
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The Lai administration has engaged in superficial diplomacy to please the United States, potentially neglecting Taiwan’s interests and risking Taiwan’s loss of autonomy.

DPP Administration’s U.S. Diplomacy Focuses on Theatrics Over Substance

 

Washington is always lively in the fall, with think tank events taking place one after another. Yet the visit of newly appointed Deputy Secretary-General Vincent Chao of the National Security Council (NSC) has still become a focal point. According to media reports, during meetings with think tank experts, Trump administration officials, and Congressional aides in Washington, Mr. Chao emphasized that Taiwan will continue increasing its defense spending and investing in asymmetric capabilities. This statement echoed Washington’s expectations that “Taiwan should strengthen its self-defense capabilities” and demonstrated the determination of the administration of President Lai Ching-te to maintain a hardline stance. However, when viewed in the broader context of U.S.-China competition and cross-strait dynamics, it reveals that Taiwan’s diplomatic strategy is becoming increasingly superficial and misaligned.

Featured Opinion
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The rise of Sanae Takaichi in Japan signals a global wave of right-wing resurgence. The notion of a “Taiwan contingency” may be a politically-projected fantasy of the Democratic Progressive Party.

DPP Administration Harbors Excessive Fantasies About Takaichi

 

Sanae Takaichi was elected as the 29th president of Liberal Democratic Party in Japan and is expected to become prime minister. Since Sanae Takaichi is a loyal successor to Shinzo Abe's line, the Democratic Party government could not hide its joy at Sanae Takaichi's victory. Meanwhile, a new round of idolization has emerged in Taiwan’s public discourse, not only highlighting Ms. Takaichi’s expressed admiration for former President Tsai Ing-wen but also portraying her as a steadfast ally of “resisting China to protect Taiwan.”

This Week in Taiwan
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A U.S. think tank war game warns that Taiwan’s natural gas reserves would last only 11 days under blockade, potentially triggering electricity rationing and an energy crisis.

October 4:

Nikkei Asia reported that newly appointed Deputy Secretary-General Vincent Chao of the National Security Council made a low-profile visit to Washington, emphasizing Taiwan's increased defense spending and willingness to invest in asymmetric capabilities. He also explored the possibility of rescheduling President Lai Ching-te's overseas visit and U.S. transit within the year. The Office of the President clarified that there are currently no plans for a presidential visit abroad, and the report is inaccurate.

October 6:

The Army Aviation and Special Forces Command's Amphibious Reconnaissance Battalion completed its relocation to Penghu, withdrawing its main forces. U.S. special operations units will no longer conduct joint training in Kinmen, instead focusing on Penghu. The redeployment of elite troops away from the front line has drawn attention. 

October 6:

The Kaohsiung City Government announced that the first batch of 12-inch 2 nm wafers from the Taiwan Semiconductor Manufacturing Company's (TSMC) Kaohsiung F22 plant has been successfully produced ahead of schedule, signaling a new wave of operational momentum for TSMC. The company is scheduled to hold its investors conference on October 16 and is currently in a pre-conference quiet period.

October 7:

In an interview by American conservative commentator Buck Sexton, President Lai expressed hope for continued support from President Donald Trump of the United States. President Lai stated that if Mr. Trump could persuade Chinese President Xi Jinping to permanently renounce military action against Taiwan, then Mr. Trump would surely deserve the Noble Peace Prize. Opposition parties criticized President Lai's remarks as reckless, warning that they could be manipulated to portray Taiwan as stroking U.S.- China tensions and undermining efforts to ease confrontation.

October 8:

According to the Wall Street Journal, the Foundation for Defense of Democracies (FDD) held a joint war game with a Taiwanese think tank. It revealed that Taiwan's natural gas reserves could only last 11 days, and a blockade by mainland China could force electricity rationing, a potentially fatal vulnerability. If Beijing were to demand inspections of ships bound for Taiwan under the guise of "quarantine," then it could quietly exert pressure and place both Taiwan and the United States in a dilemma.

October 8:

NVIDIA plans to establish its overseas corporate headquarters in Taipei but has encountered land acquisition issues. The Taipei City Government is negotiating alternative sites, while other counties and cities have also expressed interest. The Ministry of Economic Affairs confirmed receipt of a letter from NVIDIA requesting a land inventory, including Taipei.

October 9:

The Ministry of National Defense's "Special Budget for Strengthening National Resilience" has sparked controversy over suspected inflated allocations. Among the items are NT$50,000 (about US$1,600) chairs for senior officers and bottled combat reserve water priced at NT$120 (about US$4) per 500 milliliters, over 10 times the current procurement price. Minister of National Defense Wellington Koo emphasized that the purchases are necessary to enhance operational resilience.

October 10:

In his National Day address, President Lai called on China to stop distorting United Nations General Assembly Resolution 2758 and World War II historical documents, and abandon the use of force or coercion to alter the status quo in the Taiwan Strait. He urged joint efforts to maintain peace and stability in the Indo-Pacific region. President Lai also outlined three major goals for developing Taiwan's defense industry, aiming to accelerate the creation of a "Taiwan Shield."

Published since 2019 by the Fair Winds Foundation and Association of Foreign Relations, Taiwan Weekly provides in-depth report and analysis of the major issues facing 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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