Taiwan's Economy Surges as It Reduces Reliance on China, President Says

Taiwan has successfully reduced its economic dependence on China, achieving its best economic growth in half a century, President Lai Ching-te announced Tuesday. Speaking at the "Koo-Koo Forum: 2026 Indo-Pacific Security Dialogue," Lai highlighted that Taiwan's first-half economic growth rate reached 13.72%, a significant improvement attributed to diversifying trade and investment away from mainland China.

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Taiwan is no longer like the past, putting all its eggs in the China basket.

Lai underscored Taiwan's unwavering commitment to its democratic and free constitutional system, stating that the island and the People's Republic of China are distinct entities. He noted that Taiwan's democratic journey, marked by the 39th anniversary of the lifting of martial law and the 30th anniversary of direct presidential elections, has solidified its resolve to uphold sovereignty and self-determination.

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Dialogue is the best way to maintain peace.

As part of his "Four Pillars of Peace" initiative, Lai detailed efforts to bolster national defense, with defense spending projected to reach 5% of GDP by 2030, and to enhance economic resilience. He pointed out that Taiwan's investment in China has fallen from 83.8% in 2010 to 3.7% last year, and agricultural exports to China have similarly decreased. This strategic shift has not only freed Taiwan from economic over-reliance but also spurred better economic performance.

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Stability depends on respecting international law, peacefully resolving disputes, and ensuring that every country can make its own choices without coercion.

Former Canadian Minister of International Trade Ed Fast, representing the forum's international guests, emphasized that dialogue is the most effective path to peace. He stated that stability relies on respecting international law, peacefully resolving disputes, and ensuring nations can make their own choices without coercion. Fast commended Taiwan for demonstrating that freedom, democracy, the rule of law, and open markets are essential for prosperity, even while facing existential threats from across the Taiwan Strait.

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Taiwan has proven to the world that freedom, democracy, the rule of law, and free and open markets are indispensable elements for human prosperity.