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🇹🇼 Taiwan /Conflict & Security

US defense firms urge Taiwan to boost private sector role in defense

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • A US defense industry forum in Taipei emphasized the need for broader private sector participation in Taiwan's defense, beyond just drone production.
  • Experts suggest that private companies can fill defense gaps through "service" models, potentially with higher localization rates than manufacturing.
  • The "Contractor-Owned, Contractor-Operated" (CO-CO) model is proposed as a way to leverage private expertise and reduce risks, though government adoption remains cautious.

The US-Taiwan Defense Industry Forum in Taipei highlighted a critical need for greater private sector involvement in Taiwan's defense capabilities, extending beyond the sole focus on drone manufacturing. Industry experts advocate for private companies to contribute through "service" models, which could address existing defense gaps and potentially achieve higher localization than purely production-based efforts.

This period, what will Taiwan use to defend itself?

— Philip W. YuHighlighting the urgency for alternative defense solutions while waiting for drone development.

Philip W. Yu, Senior Manager of Global Affairs at radar manufacturer IMSAR, stated that while drones will take time to become fully operational, Taiwan can utilize existing private sector resources. He pointed to the rapid development cycle of private sector collaborations, noting that a concept to a flying platform took only twelve months, significantly faster than government procurement processes.

Yu emphasized that maritime domain awareness is paramount for Taiwan's defense. He described a collaboration between IMSAR and Taiwanese company Swift Wing, integrating IMSAR's synthetic aperture radar (SAR) pods into Swift Wing's manned aircraft for all-weather surveillance. This approach ensures continuous monitoring even during Taiwan's harsh northeastern monsoon season, which can ground drones.

The biggest risk is actually inaction.

— Philip W. YuArguing that a failure to act is more dangerous than potential risks associated with private sector involvement.

Concerns about the "Contractor-Owned, Contractor-Operated" (CO-CO) model, where private entities own and operate equipment, remain within Taiwanese government and military circles. However, Yu argued that the greatest risk lies in "inaction" and a mindset constrained by existing habits. He believes that creating high-value employment opportunities for retired military personnel in the private sector can mitigate risks of recruitment by adversaries, as it reduces financial pressure.

The mindset is often limited by existing habits.

— Philip W. YuCritiquing the cautious approach of government and military sectors towards new defense strategies.

High Jian-You, Chairman of Swift Wing, echoed Yu's call for increased private sector participation, envisioning a future where hundreds or thousands of companies contribute to defense, creating a vastly different landscape. He noted that Swift Wing's aircraft have already accumulated over 300 flight hours in the Taiwan Strait, providing valuable data for early detection of Chinese naval movements, thus granting the navy and coast guard crucial reaction time.

We are calling for more private forces to participate.

— High Jian-YouAdvocating for broader private sector engagement in national defense.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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