Monday, June 27, 2022 from 10:00AM-11:00AM (ET)
Event Description:
The Global Taiwan Institute is pleased to invite you to a speech on “Taiwan-US Epochal Cooperation under Global Supply Chain Restructuring” by Kung Ming-hsin, the minister of Taiwan’s National Development Council (NDC) and minister without portfolio of the Executive Yuan. GTI Chair of the Board of Directors Jennifer Hu will provide welcome remarks to open the event. Minister Kung’s speech will be followed by a moderated discussion led by GTI Senior Non-Resident Fellow Riley Walters, as well as an audience question and answer session.
Doors will open at 9:30 AM and the event will begin at 10:00 AM. We are no longer issuing new tickets for in-person attendance. To be added to the waitlist, register here and you will be notified if seating is available. The event will be live streamed on YouTube. Please direct questions or concerns to Research Assistant Adrienne Wu at awu@globaltaiwan.org.
The event will also be broadcast live on our website and YouTube beginning at 10:00 AM.
**Media: Please contact Adrienne Wu at awu@globaltaiwan.org if you would like to bring additional crew members or equipment, so that we can be sure to accommodate you.
COVID Procedures: Proof of vaccination will be required at check in. Attendees unable to provide documentation will be required to wear a mask. Masks are optional for vaccinated individuals who are able to provide proof of vaccination.
Opening Remarks:
Jennifer Hu is the chair of the board of directors at the Global Taiwan Institute. A GTI co-founder, she previously served as vice chair of the board of directors from 2016-2020, before becoming chair in 2020. At GTI, she leads the institute’s strategic growth and development, planning, and fundraising initiatives. In addition to her work at GTI, she is responsible for legal and regulatory issues related to the operation of a proposed high-speed passenger rail system in Texas. She also advises on federal regulatory, policy, and legislative issues related to high-speed rail, railroad safety, and surface transportation. Ms. Hu serves as a voting member representing rail passengers on a federal advisory committee and also serves on two Transportation Research Board standing committees. Prior to joining the Texas project in 2010, she spent several years in Taiwan where she held public service positions including presidential aide at the Office of the President of Taiwan, and the director-general of the Bureau of Civil Affairs at the Tainan City Government. She received a BS from the Massachusetts Institute of Technology, an MSFS from Georgetown University, and a JD and LLM from The George Washington University Law School. She is a member of the New York and Texas Bars.
The Speaker:
Dr. Kung Ming-Hsin is the minister of Taiwan’s National Development Council (NDC), and has been minister without portfolio of the Executive Yuan since 2019. Previously, he also served as deputy minister of economic affairs from 2017 to 2019, and deputy minister of NDC, as well as convener of the National Development Fund (NDF) under the Executive Yuan from 2016 to 2017. Dr. Kung played a crucial role in promoting Taiwan’s 5+2 Industrial Innovation Programs during his time at both the Ministry of Economic Affairs (MOEA) and the NDC. These programs have been vital for the industrial policy and economic development of Taiwan over the past few years. In particular, during his chairmanship, the Asia Silicon Valley Development Program, one of the 5+2 Programs, has made decisive progress in building an ecosystem which takes R&D as the core for innovation and entrepreneurship in developing the next-generation industry. Prior to stepping into the political field, he served as a long-term policy advisor to the Taiwanese government, using his expertise as a leading economist in industrial economy, macroeconomics, and econometrics. Dr. Kung held several positions at the Taiwan Institute of Economic Research (TIER), where he started as a research fellow and later served as director of TIER’s Economic Development Strategic Planning Center and the Department of International Affairs, as well as vice president. Dr. Kung holds a PhD in economics from National Chung Hsing University, and an MA in economics from National Taiwan University.
The Moderator:
Riley Walters is deputy director of the Japan Chair at Hudson Institute, as well as a senior non-resident fellow at GTI. He was formerly the senior policy analyst and economist in The Heritage Foundation’s Asian Studies Center. He specializes in macroeconomic issues as well as issues on foreign investment, trade, and technology. Walters has appeared on national television and radio extensively. In the past, he has written for a variety of publications including The Diplomat, The Hill, Washington Times, The National Interest, Fox Business, and more. Walters is a former Penn Kemble Fellow with the National Endowment for Democracy and George C. Marshall Fellow with The Heritage Foundation. He was a Mosaic Taiwan fellow with Taiwan’s Ministry of Foreign Affairs, and is a national security fellow with the Foundation for Defense of Democracies.
Event Summary
On June 27, the Global Taiwan Institute hosted National Development Council Minister Kung Ming-hsin (龔明鑫) for his speech entitled, Taiwan-US Epochal Cooperation under Global Supply Chain Restructuring. The in-person event began with opening remarks by GTI Board of Directors Chairwoman Jennifer Hu, followed by Minister Kung’s speech, and then a Q&A section moderated by GTI Senior Non-Resident Fellow Riley Walters. After thanking Minister Kung for visiting GTI a second time since his first visit in October 2016, Ms. Hu praised Taiwan for its leadership in the technology and manufacturing industries, and its role as an increasingly important link in the global supply chain. She further commended Taiwan for continuing to sustain its economic growth despite the COVID-19 pandemic. Ms. Hu wrapped up her opening remarks by introducing Minister Kung and his achievements as National Development Council minister, such as helping implement the Five Plus Two Industry and Innovation Plan and the Asia Silicon Valley Development Plan.
To begin his speech, Minister Kung outlined the main topics he would cover, including: Taiwan’s new economic policies, its role in the restructured international supply chain, and US-Taiwan cooperation in the trade and technology sectors. For the first topic, Minister Kung explained how Taiwan’s economy faced a critical juncture in 2016 when its economic growth decreased due to the overconcentration of investment in China, as well as industrial policies focused on China. In addition, Taiwan’s economy struggled with difficulties from focusing too strongly on original equipment manufacturer (OEM) development and China’s long-term trade surplus. To counteract these challenges, Minister Kung explained how President Tsai Ing-wen implemented a new economic development model in 2016 centered on innovative growth, investment and employment, and youth resource allocation.
Minister Kung then detailed the different steps that Taiwan has taken to carry out this new economic model. Through collaboration with the United States, Japan, Germany, and other European countries, Taiwan is improving development in seven key innovative industries, such as smart machinery and green energy. Additionally, since the US-China trade dispute began in 2018, Taiwanese businesses have started shifting supply chains away from China and back to Taiwan. The movement of these supply chains has increased both domestic and international investment in Taiwan. Taiwan also hopes to strengthen its global strategy through bilateral and multilateral partnerships, new southbound policy exchanges and access to multilateral trade organizations, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Minister Kung concluded the first part of his speech by showcasing how these economic strategies have allowed Taiwan to weather both the US-China trade war and the COVID-19 pandemic, pointing to Taiwan’s positive economic growth rate since 2020.
In the next part of his speech, Minister Kung focused on how recent major global risks – such as the US-China trade dispute, climate change, COVID-19, and the Russia-Ukraine conflict – have led to a global supply chain restructuring, a digital transformation, and the need for net-zero carbon emissions. Minister Kung stated that after the onset of the US-China trade dispute, 90% of semiconductor production capability remains in Taiwan and that Taiwanese networking and communication businesses are beginning to shift production lines to regions outside of China (such as Southeast Asia, Mexico and India). Afterwards, Minister Kung elaborated on Taiwan’s three key elements of digital transformation: AI, 5G, and most importantly semiconductors. He conjectured that the development of these elements will lead to the introduction of smart cities, smart transportation, smart factories, etc. Then, Minister Kung moved on to reviewing Taiwan’s net-zero transition. Taiwan’s transition consists of publishing a net-zero carbon emissions roadmap in 2022 and drafting its net-zero goal as a legal amendment. He declared that the Taiwanese government plans to spend around $31 billion in the first year to reach this goal.
The last section of Minister Kung’s speech explored the various ways that the United States and Taiwan can continue to increase cooperation in the trade and technology sectors. He explained that since 2018, Taiwan’s exports to the United States, especially in the fields of networking communications, electronic components, and ICT products, have dramatically increased. The United States and Taiwan have also started to cooperate in four major technological areas: semiconductors, communication and internet technology, AI, and space technology. Minister Kung further detailed the three different cooperation models of digital transformation that Taiwan can undertake to expand cooperation in the aforementioned four major categories. These cooperation models consist of Taiwan and the United States cooperating with one another in semiconductors, AI, and 5G, expanding bilateral investment, and organizing an industrial alliance to expand global markets for technological new applications.
In his closing remarks, Minister Kung summarized several conclusions from his speech. Firstly, Taiwan is one of the most reliable partners to the United States in not only industrial development, but also in democratic values. Secondly, Taiwan-US cooperation is about both business opportunities and shared global responsibility. Lastly, Minister Kung finished his speech by declaring that the entire world will need to work together to overcome difficulties and achieve their goal of digital transformation. After Minister Kung’s speech, Riley Walters moderated the Q&A discussion. The questions covered a range of topics, covering the repercussions of becoming too dependent on an outside country for supply chain needs, including the role of digital issues in the US-Taiwan trade dialogue, how Taiwan will protect its intellectual property, and how Taiwan can stay ahead of its technology competitors.
This event summary was written by GTI Summer Intern Meghan Shoop.
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