Thursday, May 29, 2025 from 12:00PM – 1:30PM (ET)
In-person and Webcast
Event Summary:
On Thursday, May 29, 2025 from 12:00PM – 1:30PM (ET) the Global Taiwan Institute (GTI) hosted the “The Lai Administration’s First Year in Office and Taiwan’s Continuing Challenges” public seminar. The panel consisted of three panelists: Brian Hioe (丘琦欣), one of the founders of New Bloom Magazine (破土), Daniel Shats, China analyst at the Institute for the Study of War (ISW), and Zoë Weaver-Lee, former programs coordinator at the East-West Center. The seminar was moderated by GTI Director John Dotson.
The event began with moderator John Dotson recapping the past year of Lai Ching-te’s (賴清德) first year as the president of Taiwan from January 2024 to present day, laying the contextual groundwork for the contentious political landscape that currently exists with the Legislative Yuan (LY, 立法院). The Democratic Progressive Party (DPP, 民進黨) has won a third presidential term and has maintained its control over the executive branch, while an opposition coalition consisting of the Kuomintang (KMT, 國民黨) and Taiwan’s People’s Party (TPP, 民眾黨) hold more seats and control over the LY. In the realm of defense, Taiwan has continued to face pressure from the People’s Republic of China (PRC) via its military drills across the Strait, including the recent Strait Thunder 2025A exercise from April of this year (2025). In response to PRC aggression, the Lai administration announced 17 policy measures to address espionage against Taiwan. Under the Biden administration, the US provided ideological support for Taiwan. The Trump administration’s stance is unclear, especially given US tariffs against Taiwan.
The first panelist Brian Hioe began by explaining current tensions within Taiwan’s domestic politics. In an unprecedented set of events, there are 30 recalls for 60 members of the opposition KMT party due to the KMT’s budget blocking tactics which has blocked 34 percent of government spending. The party’s actions have sparked public outrage. This is affecting the ability for federal agencies such as the Ministry of Foreign Affairs and the National Communications Commission to operate properly. The KMT also attempted to freeze the constitutional court by changing the number of judges required to make changes to the constitution, such as expanding powers currently under the duties of the executive branch to the legislative branch.
The second panelist, Daniel Shats, then focused on national security. There has been a sharp escalation in Chinese military coercion against Taiwan, with four large-scale PLA drills encircling the island within the past year, including the recent Strait Thunder 2025A. These exercises were often timed to coincide with political milestones in Taiwan, including President Lai’s inauguration and speeches. There has been an increase in PLA air and naval activity, cyberattacks, Chinese Coast Guard operations near outlying islands, and other “gray zone” tactics, such as interference with undersea internet cables. These actions are designed not only to intimidate Taiwan but also to normalize heightened military activity and degrade Taiwan’s response readiness over time.
Zoë Weaver-Lee spoke about Taiwan’s economic policies under the Lai administration. Taiwan must combat China’s economic coercion, safeguard Taiwan’s national interests amid shifting supply chains, and fortifying legal frameworks to protect Taiwan’s national security. Taiwan should continue to collaborate with the US despite tariff issues, and continue the expansion of international partnerships (e.g., with Japan, the Netherlands, Italy, and the Philippines), and a shift in chip manufacturing policies. Challenges such as housing costs, limited job opportunities, and Taiwan’s aging population, are all contributing factors to domestic discontent. The planned creation of a sovereign wealth fund to strengthen industrial partnerships and national investment should also be prioritized.