Interview with H.E. Mr. Ambassador David Nan-Yang Lee,
Taipei Representative Office, Bratislava, Slovak Republic

Vasile SIMILEANU: How do you characterize the realities with the states in the Asia-Pacific region? What about the US and the EU? How will relations with China develop?

H.E. David NAN-YANG LEE: Regarding relations with Asia-Pacific countries, Taiwan faces significant geopoli-tical pressure due to its unique international status and the regional dynamics. China’s persistent claims over Taiwan as its territory and its increasing military capabi-lities pose a direct threat to our sovereignty and security.

The realities with states in the region vary based on their respective interests and relationships with Taiwan and China. While like-minded countries like Japan, New Zealand, Australia are supportive of Taiwan’s democratic values, others in Southeast Asia prioritize economic interests with China. To enhance relations with ASEAN countries, the Taiwan government proposed the “New Southbound Policy” in 2016, which effectively promoted the growth of bilateral trade.

In terms of relations with the United States and the European Union (EU), Taiwan highly values its close partnership with the United States. The U.S. has con-sistently provided unwavering support for Taiwan’s security and active participation in the international organization. Collaboration between Taiwan and EU nations extends into crucial sectors such as renewable energy, information and communication technology (ICT), and semiconductor industries. In the face of shared global challenges, Taiwan, US and the EU, grounded in common values, are collaboratively addressing the need for resilient supply chains.

On the other hand, even though Taiwan and China have close economic and trade ties, we have seen significant decline in trade between two sides. In 2023, the trade volume between Taiwan and China decreased 19% in comparison to 2022, in which Taiwan export to China declined 20% and import declined 16%. Furthermore, profound disparities persist between the two sides concerning issues of sovereignty and governance. China maintains its stance on the unification of Taiwan, while Taiwan is steadfast in preserving its democratic system.

President-elect Mr. Lai Ching-te already extended an olive branch to China. He proclaimed to engage with China with confidence and use exchanges and dialogue to replace confrontation. At the same time, Taiwanese people are determined to safeguard Taiwan from continuing threats and intimidation from China.

V.S.: Taiwan is the leading supplier of chips to the IT industry. How are these pressure reflected in production and market? Do you intend to outsource and/or relocate these

technologies to third countries in the EU and, of course Romania? What strategies will you promote in this respect?

H.E. David NAN-YANG LEE: Taiwan’s pivotal role in the global semiconductor industry is undeniably subject to substantial pressures. Companies operating in this sector must ensure the resilience of their supply chains and sustain competitiveness through extensive and long-term investments in research and development (R&D). The semiconductor industry inherently demands collaboration with a diverse range of international partners. To mitigate risks and broaden access to talent and resources, Taiwan’s premier semiconductor manufacturing company, TSMC, has strategically diversified its investments across the United States, Japan, and Germany.

Romania, with its skilled workforce and strategic location, presents a promising opportunity for collaboration in the semiconductor field. We acknowledge the potential synergy between Taiwan and Romania in this sector. I extend a warm welcome to Romanian companies to contact us as we actively seek and explore avenues for en-hanced cooperation and partnership opportunities between Taiwan and Romania. In April 2024, a Taiwanese investment company, Taiwania, will visit Romania to select ICT and semiconductor high tech companies to invest and bring them to international market.

V.S.: Romania IT experts are internationally recognized. Do you intend to open collaboration with Romanian companies? In what fields of activity: Cyber security, countering cyberattacks, banking, education…?

H.E. David NAN-YANG LEE: Taiwan is globally recognized for its prowess in high-tech manufacturing, while Romania stands out as an European leader, ranking 6th worldwide in the number of certified IT specialists per 1,000 inhabitants. The convergence of these strengths creates a fertile ground for collaboration. Mutual visits to trade exhibitions, such as COMPUTEX Taipei (https://www.computextaipei. com.tw/en/index.html), can serve as a catalyst to deepen understanding and foster cooperation in vital areas like Research and Development (R&D), talent training, and trade expansion. The private sector, particularly in domains like smart cities, e-Government, and Small and Medium Enterprises (SME) digitalization, holds promising potential for joint endeavors.

In the realm of cybersecurity, Taiwan stands at the forefront in the battle against cyber threats. With firsthand experience in countering a high volume of daily cyber-attacks and disinformation from China, Taiwan is well-positioned to share valuable insights into robust defense strategies and advanced technological solutions. We warmly invite cybersecurity experts from Romania to participate in events hosted in Taiwan, such as CYBERSEC 2024 (May 14-16) and Taiwan Innotech EXPO (TIE, Oct 17-19, 2024), providing an excellent platform to explore and forge cooperative opportunities.

V.S.: During your visit to Romania, you had meetings with experts in various fields. Specially, how will these projects, that you proposed to the Romanian side be completed?

H.E. David NAN-YANG LEE: While visiting Romania, productive meetings were held with experts across various fields. Specifically, the proposed projects aimed at promoting economic, investment, and innovation cooperation between Taiwan and Romania are anticipated to be completed through a set of key strategies comprising industry-specific partnerships, investment promotion, innovation and research collaboration and educational and training programs.

By employing these strategies and maintaining a commitment to open communi-cation and collaboration, the proposed projects in economic, investment, and inno-vation cooperation between Taiwan and Romania can be effectively completed, fostering a mutually beneficial relationship.

Furthermore, the Taiwanese government has earmarked 200 million USD for the establishment of the “Central and Eastern Europe Investment Fund” (CEE Fund) in 2022. The objective is to facilitate investments, foster business partnerships, and optimize supply chains between Taiwan and the region. Companies based in Romania are encouraged to submit their applications. The Fund Manager is planning to visit Bucharest in April to promote the fund, engage with Romanian start-ups, and explore opportunities to expand their investment projects. The primary sectors of interest encompass software, semiconductor, laser technology, biomedical, space, fintech, electric vehicles, machinery, and smart cities.

So far the Central and Eastern Europe Investment Fund has invested in 9 projects with the amount more than 34.9 million EUR. I think this is a great opportunity for Romanian companies.

V.S.: After the COVID-19 pandemic and the outbreak of the war against Ukraine, the pressure exerted on the business environment and international relations have cause major disruptions at the level of state actors but also at the global level. What were the effects on the Taiwanese state and what strategies did you pursue to mitigate the social and economic effects?

H.E. David NAN-YANG LEE: The COVID-19 outbreak has had a huge impact on the global economy and society, and has also had an impact on Taiwan’s economy. However, due to the successful implementation of epidemic prevention measures by our government, the overall economic development has been less affected. Taiwan’s economic growth rate is 6.53% in 2021 and 2.35% in 2022.

The outbreak of the Russia-Ukraine war in 2022 triggered global inflation, rising raw material prices and reduced global demand. However, since Russia and Ukraine are not Taiwan’s main trading partners, and most of Taiwan’s energy imports come from other regions, the impact on Taiwan’s economy is relatively mild, but it has also led to a decline in Taiwan’s exports, causing its economic growth rate in 2023 drop to 1.32%. However, as global inflation slows down in 2024, driven by the demand for emerging technology applications, Taiwan’s foreign demand and investment are expected to grow, and economic growth rate is expected to rise to 3.1%.

In addressing the economic impact of the Russo-Ukrainian war, the Taiwanese government has devised a comprehensive response policy. Prioritizing the fortification of the democratic supply chain, active efforts are underway to develop renewable energy sources, and emphasis is placed on bolstering energy independence. These strategic initiatives aim not only to navigate the challenges presented by the geopo-litical situation but also to foster sustainable and resilient economic growth in Taiwan.

V.S.: Please specify some economic indicators that make Taiwan economically and industrially attractive! Who are Taiwan’s strategic partners?

H.E. David NAN-YANG LEE: Taiwan is an appealing investment destination and a conducive environment for business activities. Notably, its advanced technology sectors, particularly in semiconductors and Information and Communication Tech-nology (ICT), contribute to its global reputation. Situated as a strategic trade hub in East Asia, Taiwan’s geographic location enhances its significance as a key player in international commerce. Crucially, Taiwan’s strength lies in its skilled and industrious workforce, a pivotal factor propelling competitiveness and fostering innovation.

Therefore, we have seen a dramatic increase for EU’s investment in Taiwan. In December 2023, the EU’s accumulated investment in Taiwan exceeded 58 billion USD, making the EU the largest source of foreign direct investment (FDI) in Taiwan. It shows that Taiwan is a reliable partner in the semiconductor supply chain.

Concurrently, Taiwan actively collaborates with major global partners, including the United States, Japan, and European Union countries, fostering cooperation across diverse sectors. Notably, Slovakia engages in cooperative ventures with Taiwan, spanning semiconductor initiatives, smart cities development, startup collaborations, and university projects. Taiwan extends training opportunities to Slovak government officials, industry associations, and students, aimed at enhancing bilateral under-standing and strengthening the foundation for mutually beneficial collaborations.

In fact, Taiwan is active in all Central and Eastern European (CEE) countries and beyond. Through its CEE Investment Fund, Taiwan also invested in Lithuania, Czechia, Poland and Slovakia.

V.S.: The challenges posed by the threats from China and North Korea are internationally known! On the strategic, political and military level, what steps has Taiwan taken to ensure national security? What strategies have you promoted?

H.E. David NAN-YANG LEE: The lessons we learned from the conflict in Ukraine is prioritizing the defense and preservation of our own nation rather than rely on external entities. This fundamental realization highlights the need for self-reliance and strategic autonomy in safeguarding our sovereignty and interests.

Furthermore, the Ukraine conflict emphasizes the asymmetric warfare tactics in modern geopolitical landscapes. Recognizing this, Taiwan has been actively cultivating and refining its own asymmetric strategies to fortify the defenses and deter potential adversaries, thereby bolstering our security posture in the region.

Additionally, the importance of collaborative efforts with like-minded countries to advance regional security cannot be overstated. Through diplomatic endeavors and military cooperation, countries with shared values and interests can forge stronger alliances and effectively address common challenges, enhancing stability and prosperity within the broader geopolitical framework.

Furthermore, I would like to underscore that the expansion of authoritarianism represents a significant threat to global security. Due to China’s boycott, Taiwan has been excluded from the International Civil Aviation Organization (ICAO), posing a substantial risk to the safety of passengers in the region. Recently, China, in violation of ICAO regulations mandating prior consultations with Taiwan, unilaterally announced the annulment of the 2015 cross-strait agreement regarding the M503, W122, and W123 flight routes. This unilateral move not only seriously jeopardizes aviation safety, peace, and stability in the region but also undermines mutual trust and the existing balance across the Taiwan Strait.

People in Taiwan are determined to safeguard our country. However, we also need international society to support us and condemn China’s brutal behavior.

V.S.: I ask you frankly, why don’t we have a Taiwanese diplomatic mission in Bucharest? Why in Slovakia? In this regard, what are Taiwan’s relations with the Romanian state in the strategic, economic, political and cultural fields? What is the level of the bilateral economic bubble?

H.E. David NAN-YANG LEE: Despite the absence of a representative office in Bucharest, we are diligently working to foster interactions and collaborations between Taiwan and Romania across various domains, encompassing economic, cultural, and educational exchanges. Romania, as the largest country in the Balkans, boasts a developed economy and society, possesses high-quality human resources, and presents a strategic complementarity to Taiwan’s industries. Consequently, Taiwanese com-panies express keen interest in investing in Romania to enhance economic and investment prospects for the future.

Moreover, with Romania set to join the Schengen zone in March 2024, we an-ticipate a surge in Taiwanese tourists to this beautiful country, further intensifying people-to-people exchanges. We firmly believe that nurturing the relationship between our two nations will ultimately yield mutual benefits for the people on both sides.

V.S.: What do you consider to be the global challenges of the year 2024?

H.E. David NAN-YANG LEE: The year 2024 is the year of many important elections, which may have profound implications for international politics. I would say the first challenge for 2024 is the conflict between democracy and authoritarian.

Surrounded by China’s misinformation and coercive measures, Taiwan has com-pleted its presidential and parliamentary elections on January 13 and has achieved a significant victory. We established the first major success for the democratic camp. This sends a message to the world that, in the face of the choice between democracy and authoritarianism, “we choose to stand on the side of democracy.” With our votes, we collectively succeed in safeguarding the hard-won fruits of democracy.

Second challenge is the regional conflicts. As the ongoing Ukraine war and Israel-Hamas conflict make the political landscape more complicated, and also its impact on the global supply chain.

Facing a challenging international landscape, the importance of cooperation among democratic nations becomes even more evident. Taiwan is committed to be a part of the democratic alliance and we are promoting economic cooperation with like-minded countries in EU. It is hoped that Taiwan can expand and strengthen cooperation with Romania, a fellow democratic nation, especially in the fields of technology and semiconductors, contributing to the creation of a globally secure supply chain.

Vasile SIMILEANU: At the conclusion of the interview, please send a message to the readers of GeoPolitica magazine!

H.E. David NAN-YANG LEE: I am glad to have this opportunity to share my thought directly with Romania readers. Even if Taiwan is far away from Romania and both sides seem not so familiar with each other, however, we are complimentary in many aspects.

Expanding and deepening economic ties with Taiwan holds significant promise, offering Romania a gateway to increased trade, investment, and technology transfer.

I strongly urge the readers of the GeoPolitica to support for the initiative of cooperation. We can fortify and cultivate economic and technological relations between Romania and Taiwan. This collaborative endeavor holds the key to unlocking mutually beneficial opportunities that extend beyond borders and contribute to the prosperity of both nations.