Taiwan is willing to take on more responsibility for defending itself

Taiwan Premier Cho Jung-tai stated on Wednesday that his country is willing to increase defense spending and assume greater responsibility for the nation’s defense.

Cho was replying to a statement made by US Republican presidential candidate Donald Trump, who stated that since Taiwan receives no benefits from the US, it should pay for the US’s defense.

Trump’s remarks, said in an interview with Bloomberg Businessweek on June 25 but published on Tuesday, sent shares of Taiwanese chip manufacturer TSMC down.
“I know the people very well and respect them greatly. They did take about 100 percent of our chip business. I think, Taiwan should pay us for defense,” Trump told Bloomberg.

“You know, we’re no different than an insurance company. Taiwan doesn’t give us anything,” he said.
TSMC is the dominant maker of advanced chips used in everything from AI applications to smartphones and fighter jets, and analysts believe any conflict over Taiwan would decimate the world economy.

The US is Taiwan’s most important international supporter and arms supplier, but no formal defense agreement exists. The US is however bound by law to provide Taiwan with the means to defend itself.
Taiwan, which China views as its territory, has complained of repeated Chinese military activity over the past four years as Beijing seeks to pressure the democratically governed island which rejects China’s sovereignty claims.