*This article is originally published in the Asia Pacific Policy Observatory May 2024 Report.
The 2024 Election
Amid a significant year of elections worldwide, Taiwan’s presidential election garnered substantial media attention globally in the first month of 2024. This attention was due to its intricate ties with China and its geopolitical stance on the global stage. In this article, we will have a glimpse at Taiwan’s recent election and explore the domestic development of digital policies in the region as the new president assumes office and legislators commence their tenure in Taiwan’s unicameral legislature, the Legislative Yuan.
On January 13, 2024, Taiwan completed its 16th presidential election alongside an election for all 113 seats at the Legislative Yuan. With 5.59 million votes, constituting 40.1% of the total vote, Lai Ching-te, the current vice-president and the candidate of the Democratic Progressive Party (DPP), defeated his opponents Hou Yu-ih of the Kuomintang (KMT) and Ko Wen-je of the Taiwan People’s Party (TPP) in the three-way presidential election and claimed victory as the new leader of Taiwan.
According to Bloomberg’s Taiwan Election Live Results, it was the first time a political party in Taiwan has won a third straight presidential election. Although voters re-elected the ruling pro-sovereignty DPP in the presidential election, the party lost its majority in the legislature by 10 seats. In contrast, the KMT gained 14 seats and the TPP gained three seats.. While no single party won a majority, KMT won most seats and has negotiated a deal with TPP to elect Han Guo-yu as the Legislative Yuan speaker. A hung parliament situation, where no single party holds a majority, is expected to weaken any party’s ability to pass bills due to the necessity for coalition-building and compromise.
After the presidential election result, Beijing issued a statement asserting that “Taiwan is part of China”. In Lai Ching-te’s first remarks as Taiwan’s President-elect, Lai signaled that Taiwan’s political sovereignty is an irreversible path and vowed to “safeguard Taiwan from threats from China”. Nonetheless, he anticipated more exchanges and dialogue rather than obstructionism and conflict with Beijing.
Lai will officially assume office on May 20, 2024, where he intends to maintain the “cross-strait status quo”, refraining from seeking either independence or unification with China, in pursuit of peace, prosperity, and development in the region.
Historical Background
Taiwan is an island that lies roughly 160 km off the coast of southeastern China in the western Pacific Ocean with a total land area of approximately 36,000 square kilometers. The island was first inhabited by Malayo-Polynesian peoples for many millennia without a central ruling authority, but later became home to Han immigrants from mainland China in the 17th century. Taiwan is now home to 23.42 million people.
In the early to mid-17th century, the island was partly occupied by the Dutch for about 40 years, but later in the century, the Qing dynasty (1644-1912) took control of Taiwan’s western and northern coastal areas and the island was declared a province of the Qing Empire in 1885.
In 1895, Taiwan was ceded to Japan under the Treaty of Shimonoseki following Qing’s defeat in the First Sino-Japanese War (1894-1895). From then until 1945, after World War II, the Republic of China (ROC), established after the overthrow of the Qing Empire between 1911 and 1912, took control of Taiwan and the island fell under the authority of the Kuomintang (KMT).
In 1949, KMT was defeated by the Chinese Communist Party (CCP) in the Chinese Civil War and fled to Taiwan, followed by 1.2 million people from China. In the same year, martial law was declared in Taiwan, which banned the formation of new political parties and news publications. It continued to be in force until 1987.
The Constitution of ROC
The ROC Constitution, promulgated on January 1, 1947, began to serve as the foundation for democratic governance and the rule of law after martial law was lifted in 1987. The constitution underwent seven rounds of revision to cater to Taiwan’s contemporary conditions. Before these amendments, Taiwan continued to claim to be the legitimate government of mainland China and Taiwan. However, since 1991, the government has acknowledged that its jurisdiction extends only to the areas it controls, that is the island of Taiwan.
The central government comprises the presidency and five major branches: (1) Executive Yuan, (2) Legislative Yuan, (3) Examination Yuan, (4) Judicial Yuan, and (5) Control Yuan; while local governments include six special municipalities, 13 counties and three autonomous municipalities with the same hierarchical status as counties. The power to ratify constitutional amendments is now exercised by citizens through referendums.
Taiwan held its first direct presidential election in 1996. Since then, citizens aged 20 years or older can directly elect the president and vice president every four years. A president’s term lasts four years, and they can serve up to two consecutive terms. The winner of the presidential election is decided by a simple majority and there is no run-off election, that means even if the most voted candidate does not achieve an absolute majority of over 50% of total votes, they will still become the elected president.
For the Legislative Yuan, Taiwan’s parliament, each voter casts two ballots—one for their local district candidate and the other for a party for at-large seats. There are a total of 113 seats in the Legislative Yuan, of which 73 are elected by simple majority in defined constituencies.
Economic Development
In 2022, Taiwan’s gross domestic product amounted to around 760.46 billion U.S. dollars and was the 17th largest exporter and importer of merchandise in 2022. Taiwan’s annual GDP grew by 2.59% in 2022 and 1.4% in 2023. According to the International Monetary Fund, Taiwan’s gross domestic product per capita reached 34,430 U.S. dollars in April 2024. Its GDP is projected to reach 959.71 billion U.S. dollars by 2028, in which Taiwan has the largest economy of any nation not a member of the United Nations (UN).
Given the geopolitical tension between China and Taiwan, the ROC has formal diplomatic relations with only 11 countries and the Holy See, which governs the Vatican. Despite diplomatic isolation, Taiwan is one of those high-income East Asian economies that has emerged as one of the major economic players in the region and a leading player in the world’s information and communications technology (ICT) industry, especially with its dominance in semiconductor manufacturing.
Semiconductor Manufacturing: Silicon Shield
Semiconductor manufacturing has constituted 15% of Taiwan’s GDP in recent years, making a significant impact on its economy. The Taiwan Semiconductor Manufacturing Corporation (TSMC) has been at the forefront of this sector, in which the company has dominated most of the manufacturing of advanced chips for Artificial Intelligence (AI) and quantum computing applications. With a growing demand for advanced semiconductors for AI applications, TSMC, as the world’s biggest chipmaker, reported a 16.5% rise in first-quarter revenue and is expected to report a 5% rise in first-quarter profit.
In our modern life, the functioning of most technologies, from mobile phones to automobiles, relies on chips. Taiwan accounts for over 60% of global semiconductor production and more than 90% of the most advanced semiconductors. As of 2021, four out of the nine largest foundries are based in Taiwan, constituting 68% of the global market share. Even big countries, like the U.S. and China, were trailing behind; U.S. fabrication facilities produced 37% of the world’s chips in 1990 but dwindled to only 13% by 2010. China has invested billions of dollars to catch up in the race and set up an ambitious target of reaching 70% by 2025, though, China has reportedly achieved only 16% self-sufficiency and continues to import over $400 billion worth of semiconductors.
The world’s reliance on chips manufactured by Taiwan has positioned them in a pivotal role, with some even suggesting that it has prevented a war between China and Taiwan. However, the COVID-19 pandemic has also exposed significant vulnerabilities in the supply chain, particularly as the world grappled with a widespread chip shortage in 2021.
Strategies for Industrial Innovation
In December 2023, a high-level science and technology advisory board resurrected after 12 years to offer advice on a path forward for Taiwan’s technology development over the next decade. The Executive Yuan Science and Technology Advisory Board (STAB) meeting, convening top scientists from academic and industry leaders, focused on two areas: (1) Green technologies for carbon neutrality, and (2) mutual enhancement between artificial intelligence (AI) and the semiconductor industry.
At the opening of the three-day STAB meeting, President Tsai Ing-wen said in her speech that NT$300 billion (approximately 9.3 billion US dollars) will be invested in a “Chip-Driven Industrial Innovation Plan“, a program implemented between 2024 and 2033, to combine generative AI with Taiwan’s semiconductor development. Additionally, the resources of different ministries and stakeholder groups will be mobilized for technologies that will help achieve net-zero emissions by 2050.
Taiwan’s Digital Future
The Architect of National Digital Policy Landscape
The Ministry of Digital Affairs (MODA) was initially unveiled in President Tsai Ing-wen’s inaugural address in May 2020 and later was officially established in August 2022, with Audrey Tang assuming the role of Taiwan’s first Minister of Digital Affairs. Its mission is to promote “Taiwan’s overall digital policy innovation and reform” with the vision of transforming Taiwan into a smart nation and a global leader in digital democracy and innovation.
At the heart of MODA lies its commitment to bolstering the populace’s digital resilience, which serves as an ultimate mechanism for overcoming challenges and recovering from setbacks. The Ministry focuses on three main aspects: (1) social inclusion, (2) industrial development, and (3) emergency preparedness, to facilitate a smoother digital transformation for all.
Building upon these pillars, MODA has rolled out nationwide initiatives. These include implementing the “government short code SMS and short URL” service to combat fraud, opening the 6GHz frequency band for WiFi-6E usage and expanding the application of 5G private networks to spur industrial growth, and constructing a pervasive, low-latency three-dimensional communication network to fortify the resilience of Taiwan’s communication infrastructure.
“Plural Innovation” and “Democracy Network”
On top of MODA’s overreaching digital strategy, MODA’s principles on “plural innovation” and “democracy network” are what make the Ministry the first of its kind. The Ministry promotes diverse policies like data altruism and open data to create an environment of innovative data applications and data collaboration, as well as leveraging the power of democracy networks to promote civic technology and decentralized autonomy. MODA’s philosophies are reflected in projects like g0v 台灣零時政府 (gov-zero), a decentralized civic tech community drawing from the grassroots power with information transparency, open results and open cooperation as its core values.
In 2017, the Executive Yuan introduced the Digital Nation and Innovative Economic Development Program (DIGI+) to accelerate industrial innovation in Taiwan. The program was later expanded to “Smart Taiwan 2030” in 2021 and charted a clear direction for digital governance policy with the aim of realizing the vision of “a smart nation for innovation, inclusion, and sustainability by 2030”. Taiwan’s digital strategy places particular emphasis on plurality, inclusiveness, and sustainable innovation, which aims to transition from a top-down policy formation approach to fostering “people-public-private partnerships” for more effective governance.
In the face of foreign disinformation operations, Taiwan resisted succumbing to manipulations and influence, instead leveraging the situation as an opportunity to “promote co-creation from tensions and conflicts” through a whole-of-society approach to digital democracy.
Taiwan’s Open Government National Action Plan (2021-2024) laid the groundwork for radical transparency and open-source principles. By embracing multistakeholderism and harnessing technology, Taiwan seeks to transform the diversity of public opinion into creative policies. Their core values of transparency, openness, participation, digitization, and literacy are manifested in numerous initiatives, including the Presidential Hackathon, inspired by activities within the civic tech community, and the Open Parliament Action Plan (2021-2024).
Future of Taiwan’s Digital Strategy
Minister of Digital Affairs
On April 16, 2024, Huang Yen-nun, a research fellow with Academia Sinica’s Research Center for Information Technology Innovation (CITI), was appointed the new Minister of Digital Affairs, succeeding the incumbent Minister, Audrey Tang. With a stellar academic background, Huang’s appointment is anticipated to bring “more professionalism and less politics” to Taiwan’s digital strategic agenda and emphasize information security and digital transformation, offering insights into how priorities might be shifted under the new leadership.
Drawing from Huang’s extensive experience in governmental consulting and his adeptness with governmental processes, he is well-equipped to steer governance complexities and uphold the “cybersecurity is national security” policy. Audrey Tang expressed relief at Huang’s appointment, endorsing and showing confidence in Huang’s potential to lead Taiwan’s development across various fronts, from traditional IT to emerging technologies like cybersecurity, AI, blockchain, and cryptocurrency. Among others, Huang’s expertise might refuel the lagged discussion on Taiwan’s draft AI Basic Law
However, the industry does not share the same sentiment as Tang fully, given Huang’s limited industry exposure and low-profile demeanor, which pose a challenge in fostering industry rapport when formulating policies. Bridging this communication gap and pivoting from academia-centric approaches are paramount for the industry.
While Tang emphasized social innovation through technology-driven connectivity, Huang’s tenure is anticipated to spotlight information security and infrastructure resilience. However, akin to Tang’s vision of collaboration and inclusivity, Huang’s leadership is poised to uphold alignment and accountability, nurturing partnerships to drive innovation and sustainability in Taiwan’s digital ecosystem.
National Science and Technology Council (NSTC)
In the recent Cabinet appointments on April 16, Wu Cheng-wen, the current president of Southern Taiwan University of Science and Technology and the head of the Taiwan Institute of Sports Science (a public foundation under the Ministry of Education), was appointed to replace Wu Tsung-tsong as the new minister of the National Science and Technology Council (NSTC) on May 20, 2024.
With extensive experience as a semiconductor specialist, Wu brings decades of expertise in general administration, leadership, as well as research and development (R&D) within the semiconductor and information and communications technology (ICT) sectors. His notable contributions have significantly propelled the advancement of these industries both domestically and internationally.
Wu has showcased a profound grasp and active involvement in the “truly technical” aspects of computer science, with a wealth of publications covering topics like deep neural networks and decision tree classifiers. This is a promising sign of a leader who is expected to take up the driver’s seat of Taiwan’s technological innovation and spearhead the vital task of nurturing Taiwan’s next generation of science and technology researchers.
Epilogue
The 2024 presidential election in Taiwan heralded a significant shift in the country’s political landscape. Lai Ching-te’s victory marked the first time a political party won a third consecutive presidential term, reflecting the electorate’s continued support for the ruling Democratic Progressive Party (DPP). However, the DPP’s loss of the legislative majority underscored a growing diversity in Taiwan’s political landscape, with both the Kuomintang (KMT) and Taiwan People’s Party (TPP) making significant gains.
Amidst global attention on Taiwan’s geopolitical stance, Lai’s inauguration on May 20, 2024, signaled a commitment to maintaining Taiwan’s political sovereignty while advocating for peaceful coexistence with China. Against the backdrop of historical tensions, Lai’s presidency prioritizes dialogue and exchanges to safeguard Taiwan’s interests.
Taiwan’s digital future continues to evolve under the stewardship of new leaders. With the appointment of new leaders to government agencies in charge of digital strategies and affairs, Taiwan’s technological innovation is poised for further advancement. While challenges remain and new challenges emerge, Taiwan’s commitment to collaboration and inclusivity ensures a resilient and innovative digital ecosystem.
Given the length of this essay, it’s important to acknowledge that many other crucial aspects of digital strategies weren’t thoroughly explored. Areas such as online safety, combating terrorism, extremism, and the proliferation of sexually exploited materials, demand significant attention. Additionally, the development of Internet infrastructure and the establishment of Smart City Taiwan play pivotal roles in shaping Taiwan’s digital future by facilitating connectivity, efficiency, and sustainability. While this essay has focused on key developments and appointments within Taiwan’s digital landscape, it’s imperative to recognize the broader spectrum of issues and initiatives essential for effectively navigating the complexities of the digital age.
Written by Jenna Manhau Fung (Edited by Ankita Rathi and Luke Teoh)