Taiwan: a beacon of democracy in an era of authoritarianism
In an increasingly polarized world where authoritarianism is gaining ground, Taiwan stands as a vibrant testament to the values of democracy, freedom, and human rights. Its importance and value to the international community cannot be underestimated, especially in the current geopolitical climate where authoritarian regimes are aggressively challenging democratic norms, institutions, and rule-based international order.
Taiwan's journey to democracy is a remarkable story of resilience and determination. After decades of martial law and authoritarian rule, Taiwan transitioned to a democratic system in the late 20th century. Today, it boasts a robust democracy characterized by free and fair elections, a vibrant civil society, and a commitment to the rule of law. According to the Freedom House 2023 report, Taiwan enjoys a high freedom index, scoring 94 out of 100, which places it among the freest countries in the world. Taiwan’s democracy ranking reflects not only the political rights and civil liberties enjoyed by its 23.5 million citizens but also the active participation of the populace in shaping their governance.
In an era where China is increasingly aggressive, Taiwan represents a beacon of hope and resilience, and its role in safeguarding global democratic systems and institutions is more crucial than ever. Authoritarian regimes often seek to undermine democratic norms through disinformation campaigns, economic coercion, and military aggression, posing challenges to global peace and stability and sowing panic and fear in neighboring countries and regions with fragile political systems. Taiwan's commitment to democracy positions it at the front line and make it an essential ally in the global struggle for democratic systems, particularly as authoritarianism resurges in various parts of the world.
A model for Chinese society
Taiwan is often cited as a successful example of a vibrant democracy in a Chinese-speaking society. It’s political system stands in contrast to the authoritarian model of governance in China. More importantly Taiwan’s experience in navigating the challenges posed by authoritarianism provides valuable lessons for other democracies. Its innovative approaches to countering disinformation, fostering civic engagement, and promoting social cohesion can serve as a model for countries grappling with similar threats. The world must recognize and celebrate Taiwan's contributions, ensuring that its voice is heard and its democracy is protected in the face of growing authoritarian challenges.
Despite the Chinese Communist Party's efforts to suppress information about Taiwan and portray it as a renegade province, Taiwan’s political system offers a blueprint for Chinese citizens who yearn for greater freedoms and rights. The contrast between Taiwan's open society and China's authoritarian regime highlights the potential for a different future—one where citizens have a voice, and governance is accountable to the people. The success of Taiwan's democracy demonstrates that a society can thrive when individuals are empowered to express their opinions, engage in political processes, and advocate for their rights. As such, Taiwan stands as a beacon of hope for those who seek to promote human rights and democratic values within China, offering an alternative vision of governance in China.
Taiwan bolsters self-defense capabilities to uphold democracy and sovereignty
While actively working to strengthen its democracy, Taiwan has made significant strides in enhancing its self-defense capabilities and societal resilience to deter aggression of China and maintain stability in the region. A pivotal aspect of this effort has been the substantial increase in the defense budget, reflecting a commitment to bolstering military capabilities and ensuring the readiness of its armed forces. In Taiwan’s 2025 government budget, defense spending is expected to grow to approximately 2.45% of its GDP, surpassing last year’s 2.38%, which is higher than that of most NATO member countries, demonstrating Taiwan’s determination for self-defense. This represents a year-on-year increase of 7.7%, with the total amount reaching a record US$21.3 billion. This financial boost has facilitated the acquisition of advanced weaponry and technology, modernizing military forces, developing indigenous defense industry, essential for maintaining a credible deterrent against potential threats.
Additionally, Taiwan has embarked on comprehensive military reforms aimed at modernizing its defense posture. A notable reform is the extension of compulsory military service from four months to one year for young males born in 2005 and onward. This change underscores the importance of a well-trained and prepared military force, capable of responding effectively to any contingency. Beyond traditional military enhancements, Taiwan has placed a strong emphasis on civil defense, recognizing that societal resilience is a critical component of national security. Efforts to educate and prepare the civilian population for emergencies have been intensified, ensuring that citizens are equipped with the knowledge and skills needed to support defense efforts.
Furthermore, Taiwan is vigorously developing its indigenous defense industry, with the aim of reducing reliance on foreign arms and fostering innovation by focusing on making frigates, missiles, drones, satellites, amphibious transport ships, and 7 submarines. The first domestically built submarine, the Hai Kun (Narwhal) was unveiled in Sep. 2023. This initiative not only strengthens Taiwan's defense capabilities but also contributes to economic growth and technological advancement. A strategic shift towards asymmetric warfare has also been prioritized, focusing on leveraging Taiwan's unique strengths to counterbalance larger adversaries. This includes the development of capabilities such as cyber defense, missile technology, and drone combat capabilities, which can effectively deter aggression. Collectively, these efforts reflect Taiwan's determination for and proactive approach to safeguarding its sovereignty and ensuring the security and stability of its society in an increasingly uncertain world.
Taiwan's critical role in global trade and supply chains
In the landscape of global trade and supply chains, Taiwan has emerged as a pivotal player, solidifying its position as the 17th largest exporter and importer of merchandise and 21st largest economy in the world. Renowned for its advanced manufacturing capabilities, particularly in semiconductor production, Taiwan is not only a primary supplier of these critical components but also a key contributor to the global economy. The achievements of Taiwan in trade and manufacturing underscore its value to the international community, promoting global free trade and facilitating both bilateral cooperation and multilateral trade mechanisms.
Taiwan's semiconductor industry is a cornerstone of its economic success and a vital element of the global technology supply chain. Home to Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest dedicated semiconductor foundry, Taiwan produces over 90% of the world's semiconductor chips, which are essential for a wide range of applications, from smartphones and computers to automotive technologies and artificial intelligence.
The importance of semiconductors in modern economies cannot be overstated. As digital transformation accelerates across industries, the demand for advanced chips continues to grow. Taiwan's ability to meet this demand not only strengthens its own economy but also ensures the stability and efficiency of global supply chains. By providing high-quality, cutting-edge semiconductor products, Taiwan plays a crucial role in enabling technological innovation and economic growth worldwide.
Taiwan and EU enjoy close trade and economic ties
Taiwan's commitment to free trade is evident in its active participation in international trade agreements and organizations. As a member of the World Trade Organization (WTO) since 2002, Taiwan has consistently advocated for open markets and fair trade practices. Its trade policies are designed to foster an environment conducive to investment and cooperation, which has attracted foreign direct investment (FDI) from around the globe.
Taiwan is an important partner of the European Union (EU), and the EU has been Taiwan’s largest source of inbound investment for years with a cumulative value of US$58 billion, while Taiwanese companies have engaged in nearly 800 investment projects in the EU, amounting to a total of US$23 billion. The EU stands out as Taiwan's 4th largest trading partner with bilateral trade reaching US$73.8 billion in 2023. This mutually beneficial relationship underscores the importance of collaboration between Taiwan and EU member states in promoting economic growth and innovation.
Over the past two years, Taiwan has made significant strides in strengthening economic ties with the EU member states, including a government-initiated 200 million venture capital fund, which is open to all countries in Central and Eastern Europe. The fund has a broad range of interests, taking in semiconductors, laser optics, biotechnology, aerospace, fintech, electric vehicles, smart manufacturing, artificial intelligence and smart city. This initiative is complemented by a US$1 billion loan designed to enhance infrastructure and business development in these countries, showcasing Taiwan's commitment to bolstering economic cooperation in the region. Since the funds’ kickoff, Taiwan has made investments in the Czech Republic, Lithuania, Poland, and Slovakia in the areas of industrial femtosecond laser, computer vision and robotics, AI medical imaging, and chips design center.
In addition to these investments, Taiwan is also making a considerable impact in Germany, with a landmark €3.5 billion investment in Dresden to establish a state-of-the-art semiconductor chip factory. This facility will not only enhance Taiwan's manufacturing capabilities but also contribute to the European Union's goal of building an ecosystem and increasing its semiconductor production capacity, thereby reducing reliance on external suppliers. Moreover, Taiwanese company ProLogium is set to invest €5.6 billion in Dunkirk, France, to build a gigafactory focused on producing advanced ceramic batteries. This investment aligns with the EU's ambitions to transition to greener technologies and enhance energy storage solutions, further solidifying Taiwan's role as a key player in the global ICT and semiconductor industries.
Taiwan continues to be a reliable and valued like-minded partner to the EU
Through these strategic investments, Taiwan is making a tremendous contribution to the economic development and growth of the EU. Taiwan's expertise in ICT and semiconductor manufacturing aligns well with the EU's ambitions to enhance its technological capabilities and reduce reliance on external suppliers. By working together, Taiwan and the EU can foster innovation in key sectors such as green technology, digital transformation, and advanced manufacturing.
Furthermore, Taiwan's strategic location in the Asia-Pacific region positions it as a gateway for EU companies seeking to expand their presence in Asian markets. This geographical advantage, combined with Taiwan's robust infrastructure and skilled workforce, makes it an ideal and valuable partner for the EU. The strong economic ties highlight the potential for mutually beneficial partnerships that can drive innovation and growth. In this connection, Taiwan looks forward to signing an economic partnership agreement (EPA) with the EU.
In the face of rising protectionism and geopolitical tensions, Taiwan's role as a reliable partner in global trade and supply chains is more important than ever. Its commitment to free trade and open markets fosters an environment conducive to collaboration and mutual benefit, reinforcing the principles of a rules-based international order. As a leading manufacturer of advanced chips and electronic components, Taiwan is integral to and indispensable for the supply chains of numerous industries worldwide. Its cutting-edge technology and innovation drive economic growth, not only for itself but also for its trading partners. Additionally, the Taiwan Strait is responsible for 60% of global container trade passes, making Taiwan crucial for navigation freedom and the secure operation of global free trade, as well as the frontline guardian of democracy.
Why Taiwan matters and deserves international support
Taiwan holds significant importance to the international community for several reasons, warranting robust international support. Economically, Taiwan is a global leader in technology and semiconductor manufacturing, playing a crucial role in global supply chains. Its stability and prosperity are vital for the global economy, particularly in technology sectors. Politically, Taiwan represents a successful model of democracy in a region where authoritarianism is prevalent. Supporting Taiwan reinforces the values of democracy, human rights, and rule of law, sending a strong message against authoritarian expansion.
Strategically, Taiwan is situated in a geopolitically sensitive area in the Asia-Pacific region. Its geopolitical significance is crucial for maintaining regional stability and preventing potential conflicts that could have widespread implications, particularly concerning the Taiwan Strait, which is a critical maritime route responsible for two-thirds of trade for European Union countries. The stability of the Taiwan Strait is vital for global trade, as it facilitates the movement of goods and resources between Asia and Europe. Any disruption in this region could have far-reaching consequences for the global economy and security, making Taiwan's security a matter of international concern.
Furthermore, Taiwan actively contributes to global issues such as public health, environmental sustainability, and disaster relief, despite being excluded from many international organizations. By supporting Taiwan, the international community can uphold principles of inclusiveness and cooperation. Overall, Taiwan's economic significance, democratic values, strategic location, and contributions to global challenges underscore why it deserves international recognition and support. Engaging with and supporting Taiwan is not only a moral responsibility for democratic countries, but also a wise decision that aligns with the common interests of the international community.
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