Taiwan

Main article: Countries of the world

President

2024: Lye Tsinde elected president in defiance of China's warnings of possible conflict

In January 2024, Taiwan elected a representative of the ruling Lye Tsinde party as president, contrary to Beijing's warnings that the victory of this opponent of China could lead to war. Lye 's victory casts doubt on the recent stabilization of relations between Beijing and Washington.

Three candidates fought for the presidency - Lye Tsinde from the ruling Democratic Progressive Party (DPP), Ho Yu from the Kuomintang and Ke Wenzhe from the Taiwan People's Party.

The winner was Lye Tsinde, who led in social polls throughout almost the entire election race. It is characteristic that it was during the reign of his party colleague Tsai Ing-wen that relations PEOPLE'S REPUBLIC OF CHINA with greatly deteriorated, and military activity PLA around the island grew.

"Taiwan will continue to go side by side with democratic countries around the world," Lye said, making it clear that he will maintain close ties with Washington. He also pledged to maintain peace throughout the Taiwan Strait.

Armed Forces

• Ministry of Defence of Taiwan

2024: Map of Taiwan's military installations

2023

Taiwan unveils its first self-designed submarine

In September 2023, Taiwan unveiled its first domestically developed submarine. It is expected to enter service with the island's Navy in 2025.

The Taiwanese Navy plans to obtain eight submarines, which the authorities say will help counter the naval blockade, which will be organized by China in the event of an open conflict.

The construction of the submarine was an important domestic political event. The Democratic Progressive Party is touting the project as its credit for the upcoming 2024 election.

The same information channel is used to denigrate the opposition. Thus, a representative of the Kuomintang party was accused of leaking and transferring data about the submarine to China, which reduces the likelihood of the party winning the elections.

It is not yet clear whether the submarine will perform the functions necessary for long-term work, wrote "Rybar." According to expert comments, the submarine lacks an air-independent power plant that allows you to be underwater for a long time. And although the island's Navy said the construction process was smooth, it is still unclear whether such a problem was relevant and whether it was possible to solve it.

The American and British military-industrial complex won the most from the implementation of the project. According to official sources, the submarine is 60% composed of imported technologies and mechanisms - for example, in the first nine months of 2022, Britain approved the export of parts to Taiwan in the amount of $202 million. And the missiles that the submarine will be equipped with, worth $180 million, were purchased by the island authorities from the United States.

Urgent arms supply from the United States for $345 million

In July 2023, representatives of the US government announced a new tranche of military assistance to the island of Taiwan in the amount of $345 million. For the first time, it will be delivered through the Presidential Drawdown Authority (PDA) mechanism, which is used to urgently send American weapons to Ukraine.

U.S. officials have not disclosed what specifically will be in that package. However, in some media, citing anonymous sources in Washington , they write that portable anti-aircraft missile systems, reconnaissance and surveillance equipment, firearms and missiles will arrive in Taiwan as part of the tranche.

One of the features of the PDA is the quick dispatch of military assistance to the addressee, since weapons are taken from American stocks. Prior to that, as part of support for Taiwan, American politicians allocated money for the production of new equipment and weapons, which should arrive on the island in a few years.

A possible reason for using the PDA is Taiwan's slow receipt of military aid. Military aid for about $19 billion at this time is actually hanging in the air due to the load on the US military-industrial complex. [2] Taiwan's President Tsai Ing-wen also expressed her concern about this during a visit to Washington.

2022: $1.6 billion earmarked for drones to defend against China

On November 9, 2022, it became known about the decision of the Taiwanese authorities to allocate NT $50 billion (about $1.6 billion) for the development and production of unmanned aerial vehicles in order to protect the island from a possible invasion by China.

According to the Financial Times, citing its sources, several private companies will be engaged in the production of drones, including intelligence ones. Manufacturers are expected to receive the first orders no later than July 2023.

The conflict in Ukraine emphasized the decisive role of drones, - the newspaper quotes the words of an expert, whose name is not called.

By November 2022, the Taiwan Army is purchasing drones from the United States. For example, the amount of the contract concluded in September 2022 amounted to $555 million. At the same time, there are also local samples, for example, the Chien Hsiang attack drone.

Earlier, Wang Dingyu, a member of the legislative yuan (parliament) from the Democratic Progressive Party of Taiwan, said that the Taiwanese military should have the means of combating drones of the People's Liberation Army of China (PLA) in order to protect the airspace of the territories.

At the end of August 2022, The Straits Times, citing a statement from the country's Ministry of Defense, reported that in 2023 Taiwan would begin deploying drone defense systems on coastal islands. It was clarified that the first elements of the system will be deployed on the Jinmen Islands, controlled by Taiwan, located opposite the Chinese cities of Xiamen and Quanzhou.

On November 8, 2022, Taiwanese President Tsai Ing-wen said in an interview with the American magazine The Atlantic that China's invasion of Taiwan could happen soon. According to the president, PEOPLE'S REPUBLIC OF CHINA the authorities are gradually taking control of the Taiwan Strait, which in the future could lead to a blockade of the island.^[1]

2021: US vows to protect Taiwan from China

On October 22, 2021 USA Joe Biden , the president said that if China he attacked Taiwan, the United States would defend him. He stated that citizens should not worry about Washington's military might, as "China and the Russia rest of the world know that we have the most powerful military in history."

"China claims Taiwan belongs to it. Taiwan, on the other hand, claims to be an independent country that will defend its freedoms and democracy. "

Biden said the Cold War with China is not what he wants. However, he said the US wants the country to "understand that we are not going to back down" and change our views.

The law governs U.S. defense relations with Taiwan, and the country's policy on the territory has not changed.

Economy

GDP

2023: The fall in GDP by 3.02% in the first quarter is an anti-record since 2009

GDP in the first quarter of 2023 fell by 3.02% compared to the same period last year. Economists polled by Bloomberg had forecast a 1.25% drop.

Taiwan's economy shrank at its fastest pace since 2009, recording a second straight quarter of declines as falling global chip demand shows no signs of weakening.

Taiwan fell into recession due to falling global demand for consumer electronics and problems in major global markets.

The tech sector makes up 30% of Taiwan's economy, and its factories produce nearly two-thirds of the world's computer chips.

2022

Taiwan GDP up 2.4%

On January 18, 2023, the General Directorate for Budget, Accounting and Statistics of Taiwan (DGBAS) published data on GDP growth in the country. It is reported that the pace of development of the state economy has slowed down.

At the end of 2022, Taiwan's GDP increased by 2.43%. This is the minimum increase since 2016, when the figure rose 2.17%. The result did not meet the expectations of analysts who said an average increase of 3.06%. The reduction in the pace of development of the country's economy is due to the difficult geopolitical situation. Fast-growing inflation on a global scale and aggressive interest rate hikes by the world's largest banks have hurt demand in all regions and led to food inventory adjustments in many industries, it said. The outbreak of COVID-19 in China also had a negative impact on consumption and interrupted production activities.

Taiwan's exports (products and services) rose 2.57% in 2022, while imports increased 4.59%. Consumer spending climbed 3.36% year-on-year. The public sector recorded a 2.69% increase in costs.

DGBAS documents said investment in manufacturing equipment and intellectual property continues to grow, however investment in transport equipment has decreased. Taiwan's imports were affected by slowing global demand. In addition, a decrease in commodity prices was recorded, which increased pressure on the cost of imports into the country. However, after the easing of restrictions associated with the COVID-19 pandemic, activity in the consumer sector increased. At the beginning of 2023, according to the Taiwan Ministry of Economy, manufacturers sought to adjust product supplies: this is expected to lead to a decrease in inventory.^[2]

GDP estimate - $0.8 trillion

GDP size forecast - $0.84 trillion

2021: GDP size - $0.79 trillion

Financial system

Sovereign Wealth Fund

Inflation

2022: Record inflation since 2008

Consumer inflation in Taiwan hit its highest level in 14 years (3.59%) in June.

National debt

2023: State debt - 27% of GDP

Industrial production

2023: Decline of 14.5% in March amid weak global demand

Industrial production in Taiwan decreased by 14.5% in March 2023 compared to a year earlier, the decline was the largest reduction since May 2009 - immediately after the global financial crisis - for any month except January and February (these months are often distorted by the Lunar New Year holiday).

Foreign trade

2024

US once again the biggest consumer of exports from Taiwan after 20 years of China leadership

In the spring of 2024, the United States again became the largest destination for Taiwanese exports after decades during which China topped this list.

Renewed export growth amid AI boom

In March 2024, Taiwan's exports grew at the fastest pace in two years as shipments of computer equipment at the heart of the global AI boom rose more than 400%.

2023

Reduced export orders due to lower demand in the US and EU

Taiwanese export orders fall at the end of 2023 amid lower demand in the United States and Europe.

Reduced supply of chipmaking machines to China due to US pressure

According to data from the Taipei Ministry of Finance, in April 2023, due to pressure from USA Taiwan, Taiwan sent China Hong Kong 151 million chipmakers to and, dollars which is 26% less than a year earlier.

Despite the improvement from the March fall of almost 34%, this is still the 10th month in a row of supply cuts.

Strong decline in exports due to low demand for semiconductors

Taiwan's export orders fell by the largest amount in March 2023 since the 2009 global financial crisis, as global demand for semiconductors shows no signs of improvement.

2022: China is the biggest export destination

2021

Export growth to a record $446 billion

Taiwan's exports in 2021 rose to a record $446 billion thanks to growing demand for technological products and components.

Exports of high-tech products from Taiwan exceeded $400 billion

At the end of January 2022, data from Taiwan the Ministry of Economy were released, according to which in 2021 local manufacturers received export orders for high-tech products worth more than $400 billion, which corresponds to 59.41% of total exports. This segment of foreign supplies grew by 22.9% on an annualized basis.

The volume of export orders for high-tech products in 2021 amounted to $193.07 billion for the market information technology (IT) and network/communication devices, an increase of 17.4% compared to 2020. For electronic components/devices and semiconductors, it amounted to $207.40 billion, an increase of 28.5% on an annualized basis. This reflects the effect of the transformation of Taiwan's economic structure, the National Development Council said. states

Taiwanese semiconductor manufacturers continue to withdraw from China and invest in Taiwan, telecom operators continue to create infrastructure-networks, 5G photovoltaic power plants and offshore wind farms, according to a government report, according to which investment in fixed capital of Taiwan in 2022 will grow by 2.99% on an annualized basis.

In order to cope with the global economic restructuring in the country after the crisis of the 19th century, the government of Taiwan seeks to turn the state into a center of high-tech production and advanced processes. Developing semiconductors using 5G and artificial intelligence technologies, driving integrated hardware and software production and attracting investment from international equipment manufacturers and various other material suppliers.

The head of the Statistics Department of the Ministry of Finance of Taiwan, Beatrice Tsai, noted that the high growth can be explained by the recovery of the global economy, steady demand for technical gadgets, as well as rising prices for raw materials and an increase in consumer spending associated with holidays and new technical products. Tsai added that exports of information and communication/video and audio devices, base metals and vehicles reached an all-time high in October 2021, and exports of cars and plastic/rubber products became the second largest in Taiwan's history.^[3]

Unemployment

2020: Unemployment rate - 3.9%

Incomes of the population

2023: Minimum wage - $800

Consumption

2023: Poultry meat is the most consumed type of meat

Information Technology

Taiwan IT Market

Main Article: Taiwan IT Market

Communications (Taiwan Market)

Main Article: Communications (Taiwan Market)

Semiconductors (Taiwan Market)

2022: Supporting the Trend of Innovative Manufacturing Transit in the United States

TSMC has established a complete supply chain for the closed-loop production of semiconductors. TSMC's net profit for the 12 months at the end of September 2022 increased by 45% compared to the previous same period^[4], and in 2023, analysts from the Institute for Information Industry predict the growth of the Taiwanese chip industry by 1,^[5]

Nevertheless, to maintain profitability, Taiwanese manufacturers are forced to support the trend of transit of innovative production in the United States. So, at the opening ceremony of the TSMC plant in Phoenix, Arizona, in December 2022, the founder of the company M. Chang announced the growth of investments to $40 billion and the launch in 2026 of the second factory for the production of chips 5-nm and 3-nm.

Taiwan is counting on US funding for its "friendship" projects. However, there is a great risk that large manufacturers such as Intel will impose on the Chinese the struggle to diversify production and at the same time attempt to lure TSMC personnel. In addition, the company's management admits that the transit of capacity will entail an increase in the cost of products by 55%^[6]. Thus, the issue of maintaining profitability for Taiwanese chipmakers not only persists, but will also worsen as large projects are implemented by global competitors.

2021: TSMC produced up to 92% of the world's high-tech chips

Taiwan-based TSMC (Taiwan Semiconductor Manufacturing Company) is the world leader in semiconductors; in 2021, it produced up to 92% of the world's high-tech chips^[7].

Information security

Ransomware Viruses in Taiwan

Main article: Ransomware viruses (ransomware) in Taiwan

Education

2019: Number of years of education by citizens over 25

History

2024: Worst earthquake in 25 years

Taiwan's worst earthquake in 25 years on April 2, 2024, destroyed dozens of buildings on the east side of the island, killing at least four people and disrupting semiconductor manufacturing at the world's leading chip manufacturing facilities.

2022

Ban on civil servants using TikTok

On December 6, 2022, it became known that Taiwan had banned civil servants from using the popular service to create and watch short TikTok videos. The decision was made for the reason that this application is said to pose a threat to national information security. Read more here.

Dynamics of Chinese aircraft entering the air defense zone of Taiwan

Countries supporting diplomatic relations with Taiwan. Card

In Taiwan, they began to imprison for 12 years for industrial espionage. This is necessary to protect the production of chips

On May 20, 2022, in Taiwan, the government adopted amendments imposing a punishment for economic espionage in the form of imprisonment for up to 12 years or a fine of $3.37 million. Additionally, employees of key industries are prohibited from traveling to China without permission from the Taiwanese government. Tougher penalties are aimed primarily at protecting the Taiwanese semiconductor industry from leaks of trade secrets.

Taiwan's first set of amendments to the National Security Act toughens penalties for aiding China, Hong Kong, Macau, foreign nations or hostile foreign forces in obtaining, using or leaking trade secrets related to key technologies by stealing, cheating, coercing or replicating without permission.

Democratic Progressive Party (DPP) legislator Chao Tien-Lin said that the amendments will make Taiwan an exemplary student in the clean supply chain system. As an advanced country capable of protecting trade secrets, Taiwan should be included in mechanisms such as the U.S.-led Indo-Pacific Economic Framework, Chao added.

According to the amendments, violators face from 5 to 12 years in prison or a fine of $1 million to $3.37 million. Meanwhile, theft of confidential business information will be punishable by a fine of two to ten times the amount of economic benefit received, the law says, noting that such profits can be huge.

Penalties also apply to three other forms of espionage:

• Reproduction, use or leakage of trade secrets of basic technologies without permission or outside the permitted scope of application;
• Failure to remove, destroy or conceal trade secrets after being reported by their owners;
• Obtaining, using or leaking trade secrets, despite the fact that they were obtained criminally.

If active or retired military personnel, civil servants or civil servants are found guilty of such a crime, they will lose the right to receive a pension and will be forced to return the amounts already received, the amendments say.

Economic espionage cases will be heard in Taiwan's first instance by the Intellectual Property Court and the Commercial Court, and cases not involving trade secrets or assistance to hostile foreign forces will be heard in Taiwan's first instance by the High Court. The court may also establish a special tribunal or special division to hear cases under this law.^[8]

2021

Nicaragua breaks diplomatic ties with Taiwan

In December 2021, Nicaragua breaks diplomatic relations with Taiwan and recognizes it only as part of the PRC.

"The government of the Republic of Nicaragua recognizes that there is only one, the only China in the world," Foreign Minister Denis Moncada said. "The People's Republic of China is the only legitimate government that represents all of China and Taiwan is an integral part of Chinese territory."

At this time, Taipei has full official diplomatic relations with 14 countries, mainly from the Caribbean.

China strikes Lithuania off its customs register for cooperating with Taiwan

In early December 2021, China deleted Lithuania from the customs register, Lithuania will no longer be able to issue its goods through Chinese customs.

Vilnius requested help from the European Union, consultations are underway with the European Commission on the EU's reaction to the decision of the Chinese authorities.

"Lithuania is excluded from the customs system, it seems that there is no such country in the Chinese customs system. This creates additional problems for exporters because they cannot send the remaining amount of cargo, "said the President of the Confederation of Lithuanian Industrialists Vidmantas Janulevicius.

Relations between the two countries are in crisis due to the opening of Taiwan's representative office in Vilnius on November 18.

Notes