Photo : Taipei Times

Taiwan’s investments in China decline, reports SEF

Taiwan Reader Daily Wire | 14 July 2025, Monday | Vol 2 No. 146
Taiwan’s investments in China decline, reports SEF
On 14 July, Taipei Times reported that Taiwanese investments in China have been declining since 2010, according to the Straits Exchange Foundation (SEF). This is attributed to the growing US-China trade war and China’s economic slowdown. From 2010 to 2023, Taiwan’s total investments in China decreased from 83.4 per cent to 11.4 per cent. In 2024, it reached 7.5 per cent, and the first quarter of 2025 saw the lowest rates of 2.7 per cent in investments. The foundation informed that 70 per cent of the businesses saw a drop in profits in 2024. This is also caused by increasing Taiwanese firms investing in other parts of the world, in light of growing tensions between China. The business’s also realized the cost of investing in China is increasing. Additionally, China’s “Made in China” policy also bolstered the competition. (“Taiwanese investment in China steadily declining,” Taipei Times, 14 July 2025)

Taiwan Reader Daily Wire | 12 July 2025, Saturday | Vol 2 No. 145
Taiwan’s rocket crash after launch from Japan
On 12 July, Taiwanese-made rockets crashed shortly after their launch from Japan’s island of Hokkaido. The mission aimed to reach the Karman Line. Which is an imaginary line 100 kilometers above the sea level, a boundary between the Earth’s atmosphere and outer space. The rocket was made by a Taiwan-based company called Tispace Inc. with its Japanese subsidiary Jtspace. Soon after its launch, the rocket was seen drifting with smoke escaping from the panels. The successful journey to the Karman Line would have meant that the Taiwanese satellite would no longer have to depend on foreign-made rockets. (“Taiwan rocket crashes shortly after Japan launch,” Taiwan News, 12 July 2025)

Taiwan Reader Daily Wire | 11 July 2025, Friday | Vol 2 No. 144
US think tanks suggest the military withdraw from Taiwan
On 09 July, a US-based think tank, Defense Priorities, suggested that the US should withdraw all military personnel from Taiwan. The report suggested that training is required; it can happen in the US. It noted that though Taiwan has increased its defence spending, but US's willingness to carry an additional burden does not stand in the core interest. It suggests that the current position of the US on Taiwan is too offense-oriented. And that this will lead to escalation rather than deter Chinese aggression. US Assistant Secretary of Defense for Indo-Pacific Security Affairs John Noh said: “Arming Taiwan and strengthening Taiwan’s defense capabilities is extremely important for not only the defense of Taiwan, but for strengthening our posture and re-establishing deterrents,” (“US think tank urges full withdrawal of military personnel in Taiwan,” Taiwan News, 11 July 2025)

Taiwan Reader Daily Wire | 10 July 2025, Thursday | Vol 2 No. 143
Taiwan to hold the largest war games, “Han Kuang exercise”
On 09 July, Al-Jazeera reported that Taiwan launched its largest ever annual war game exercise, focused on role-playing responses to a hypothetical attack. The ten-day live fire drill, “Han Kuang exercise.” The annual drills are held amid escalating tensions with China. Taiwan’s Defence official said: “We are learning from the situation in Ukraine in recent years and realistically thinking about what Taiwan might face … in real combat.” Taiwan’s Ministry of National Defense informed that the war games exercises will include “grey zone tactics.” About 300 reservists were seen entering a junior high school in the city of Taoyuan that has been emptied for summer recess, with troops receiving weapons training. (“Taiwan holds huge war games to role-play Chinese invasion scenarios,” Al-Jazeera, 09 July 2025)

Taiwan Reader Daily Wire | 09 July 2025, Wednesday| Vol 2 No. 142
China adds eight Taiwanese entries to the export control list
On 09 July, China’s Ministry of Commerce announced eight Taiwanese entities as part of their export list. The imposition is in line with the Export Control Law and the Regulations on the Export Control of Dual-Use Items. This is in light of safeguarding national security and based on international obligations, says the ministry. They informed that the eight firms in Taiwan are prohibited from selling dual-use items to China, and all relevant exports come to an immediate halt. The right firms are: Aerospace Industrial Development Corp, GEOSAT Aerospace & Technology Inc, National Chung-Shan Institute of Science & Technology, JC Technology Inc, CSBC Corporation, Taiwan, Jong Shyn Shipbuilding Co Ltd, Lungteh Shipbuilding Co Ltd, and Gong Wei Co Ltd. The ministry also reasoned that these entities have been collaborating with the “Taiwan independence” movement. Taiwan Affairs Office spokesperson Chen Binhua said: “Taiwan independence' stance, vigorously propagated separatist fallacies, and attempted to “seek independence by relying on foreign forces.” (“MOFCOM adds 8 entities from Taiwan island on export control list,” Global Times, 09 July 2025)

Taiwan Reader Daily Wire | 07 July 2025, Monday | Vol 2 No. 140
Typhoon Danas hits Taiwan
On 07 July, Typhoon Danas landed in the southern region of Taiwan. The strong winds and record rain killed two people, and more than 330 people were injured. Taiwan has been struck by typhoons regularly in the mountainous region on the east coast. Taiwan’s weather authority informed that this is the second-strongest typhoon to ever strike Taiwan. Taiwan’s President William Lai said: “The typhoon track is rare ... the whole of Taiwan will be affected by the wind and rain one after another.” There was a power outage in more than 500,000 homes, and over 300 domestic and international flights were cancelled. (“Typhoon Danas lashes south with record winds, injuring hundreds,” Taipei Times, 07 July 2025)

Taiwan Reader Daily Wire | 05 July 2025, Saturday | Vol 2 No. 139
Taiwan’s President calls for tighter security checks amid Chinese espionage threat, reports Taiwan News
On 05 July, Taiwan News reported on Taiwan’s President Lai Ching-te calling to impose tougher measures against suspected Chinese espionage efforts, as the cases have been surging in this regard. The security agencies from Taiwan have informed that the breach has reached the President's Office, the Defense and Foreign Affairs office, the armed forces, and the legislature. He informed that they are present across political parties of both the DPP and KMT. Lai in March called for 17 security reforms for stricter residency vetting of all Chinese nationals in Taiwan. This move was heavily criticized by the opposition KMT, stating that this was for Lai to shield his political positioning. Taiwan’s National Security Bureau reported that 159 people have been indicted on suspicion of spying. In 2024, some 64 cases of espionage were reported. (“Taiwan confronts Chinese spy threat with security reforms,” Taiwan News, 05 July 2025)

Taiwan Reader Daily Wire | 04 July 2025, Friday | Vol 2 No. 138
Taiwan’s textile manufacturer is against 20 per cent tariffs on Vietnam
On 03 July, Textile manufacturer New Wide Group’s Director, Huang Kuan-hua, informed that a 20 per cent tariff imposition on Vietnamese goods will affect the supply chain and profit model. He noted that if the tariffs were under 10 per cent, the brands would be able to share the burden of the supply chain. A 20 per cent tariff imposition will require a new framework to address the supply chain issue. This will demand structural adjustments in companies for a case-by-case issue. He also informed that sudden US tariffs jolted the global textile trade sector, and affirmed against the idea that they are not a “sunset industry.” The New Wide Group is the largest textile manufacturer in Taiwan, providing integrated production by catering to major brands like Adidas, Zara, and Calvin Klein. (“Taiwan’s New Wide Group warns 20% Vietnam tariff will shake up textile chains,” Taiwan News, 04 July 2025)

Taiwan Reader Daily Wire | 03 July 2025, Thursday | Vol 2 No. 137
Chinese apps found violating and collecting personal data of Taiwanese nationals
On 02 July, Taiwan’s National Security Bureau informed that China’s social media apps like TikTok, RedNote, and WeChat pose a cybersecurity threat to Taiwan, leading to the leaking of biometrics. The bureau tested the Chinese apps in Taiwan and noted that they all show “excessive data collection” and “privacy infringement.” The bureau called for the public to be aware and to refrain from downloading Chinese apps that have questionable data protection policies. The bureau plans to conduct a joint investigation with Taiwan’s Ministry of Justice Investigation Bureau and Criminal Investigation Bureau. The apps were tested under the Ministry of Digital Affairs’ Basic Information Security Testing Standard for Mobile Applications. 15 criteria were used, and the indicators were in five categories of violation. These included personal data collection, data transmission, excessive permission of usage, biometric data access, and system information extraction. In all 15 criteria, TikTok and Weibo failed in 13, Baidu Cloud in 9, and WeChat in 10. All of the above apps were gathering data and misusing permissions; they had access to screenshots, clipboards, contact lists, and location. (“Chinese apps such as TikTok and RedNote fail Taiwan security tests,” Taiwan News, 03 July 2025)

Taiwan Reader Daily Wire | 02 July 2025, Wednesday | Vol 2 No. 136
Taiwan’s President criticizes the opposition party for freezing a hike in the defence budget
On 02 July, Taiwan’s President Lai Ching-te calls for increased military spending in his fourth address at the Lions’ Club. He noted that the national defence in Taiwan needs more unity, and criticized the opposition party for freezing the military spending. He looked into the history of the “Battle of Guningtou” of 1949, when the country came together against the Chinese forces of Kinmen. Additionally, he criticized the KMT administration's defence spending of just 2 per cent. Lai noted that under Tsai Ing-wen, the spending reached 2.5 per cent last year. The freezing of the defence budget will affect the critical areas of defense, stated Lai. He also quoted US Senator San Sullivan, who expressed that the Taiwanese opposition party is playing a “dangerous game.” Lai’s administration wants to increase the defence budget to 3 per cent of its GDP. He noted that the budget is not just important for the military but also for the entire nation. (“Lai praises Taiwanese military in fourth address,” Taiwan News, 02 July 2025)

Taiwan nationals apprehended for scheming to generate revenue for North Korea
On 30 June, two Taiwanese nationals were apprehended in Boston for scheming to generate revenue to get North Korea’s weapons of mass destruction. The suspects Liu Meng-ting and Liu En-chia raised USD 5 million for the Democratic People’s Republic of Korea (DPRK), notes US Attorney Leah Foley. Additionally, six Chinese and one American national were also detained for the same. It is alleged that North Korea has sent thousands of skilled IT professionals all around the world to generate revenue for the DPRK. The above detainees are also accused of compromising 80 US nationals information and have obtained remote jobs in more than 100 US-based companies. Foley said: “The threat posed by DPRK operatives is both real and immediate. Thousands of North Korean cyberoperatives have been trained and deployed by the regime to blend into the global digital workforce and systematically target US companies.” (“Taiwanese indicted over alleged N Korea scheme,” Taipei Times, 02 July 2025)

Taiwan Reader Daily Wire | 01 July 2025, Tuesday | Vol 2 No. 135
UK and Taiwan officials discuss trade and economic cooperation
On 30 June, officials from Taiwan and the UK held talks in the British Office Taipei to discuss AI applications, semiconductors, and commercial drones. The meeting was co-hosted by the Taiwan Deputy Economics Ministry, Chiang Wen-jo, and the UK Minister of State Department for Business and Trade, Douglas Alexander. Chiang noted that Taiwan is a vital player in the global industrial supply chain. Cooperation between the two countries will now focus on AI, semiconductors, and green technology and energy. For the UK, Taiwan is an important economic and trade partner, according to the International Trade Administration. The UK government released its Industrial Strategy and Trade Strategy, according to which the focus will be on inviting investment for high-value industries from other countries. This will create opportunities for international companies to conduct business. (“Taiwan-UK trade talks kick off in Taipei,” Taiwan News, 01 July 2025)