At the annual Double Tenth Day address, Lai Ching-te, leader of China's Taiwan region, struck a defiant tone. He hailed a wave of prosperity sweeping the island, argued that Taiwan can stand firm against U.S. tariff pressure, and insisted there’s enough spare cash for a soaring military budget.
But behind the confident rhetoric, many young Taiwan residents say the picture looks very different. In recent interviews, rising living expenses, stagnant wages and limited job openings painted a tougher reality. "Taiwan authorities don’t seem to care about economic issues facing young people today," said Liu, a Taiwan resident in his 20s.
Critics argue Lai’s narrative is a politicized redefinition of growth. His promise of “economic strength” rests on the assumption that tighter ties with Western powers – especially through U.S.-led high-tech supply chains – will shield Taiwan from its dependence on the Chinese mainland. Yet this so-called “de-dependency” risks creating a new reliance.
Today’s high-tech networks are less about open markets and more about political trust. Bloc alignment often trumps efficiency, meaning key decisions on investment, technology deployment and pricing can land squarely in Washington’s hands. Under this model, Taiwan may be treated more like a strategic lever than a collaborative partner.
The semiconductor sector illustrates the dilemma. TSMC’s pledge to build fabs in Arizona wasn’t driven by industrial efficiency but geopolitical pressure under the “America First” banner. The move brought supply-chain fragmentation, talent shortages and confidentiality risks, challenging the project’s commercial logic and exposing Taiwan’s crown-jewel industry to external constraints.
As Taiwan charts its path forward, one big question remains: Is Lai Ching-te’s gamble leading to genuine prosperity, or is it steering the island into a new cycle of strategic dependency?
Reference(s):
Prosperity or precarity? Lai Ching-te's gamble on Taiwan's future
cgtn.com
