Taiwan Digital Diplomacy Digest (TDDD) Vol. 31 — 17th of October

Welcome to the 31st edition of Taiwan Digital Diplomacy Digest (TDDD) compiled by Taiwan Digital Diplomacy Association.

In this edition, you’ll hear about Taiwan’s AI governance, Lin’s new diplomacy strategy, new Taiwanese mission in Mumbai, Japan’s views on Taiwanese Independence, and Tsai Ing-wen visit to the European Parliament. Read up on recent diplomatic visits to Taiwan and some interesting in-depth publications about Taiwan’s international affairs.?

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Can Taiwan Be the AI Rulemaker?

As the world’s largest contributor to advanced semiconductor manufacturing and production, Taiwan is well-positioned to effectively develop and integrate AI at home. Since 2018, Taiwan has been working to advance AI as outlined in its AI Action Plan. Renewed in 2023, the “Taiwan Artificial Intelligence (AI) Action Plan 2.0” is a policy continuation of the four-year “Taiwan AI Action Plan”. The original policy plan from 2018 aimed to establish Taiwan as a global leader in artificial intelligence.This goal was further supported by Google's announcement of its Smart Taiwan Initiative, Microsoft's establishment of an R&D Center, and Synopsis' creation of an AI design center in Hsinchu. Building on the success of its previous initiative, Taiwan's new AI plan, set to run until 2026, aims to cultivate talent, promote industry growth, improve working conditions, and expand Taiwan's technological footprint globally. The plan will also delve into AI's societal implications, particularly its potential impact on the job market, to inform policy development. In response to Taiwan's pressing societal challenges, the government expects AI to address labor shortages exacerbated by an aging population and contribute to climate mitigation efforts through reduced greenhouse gas emissions.

Regulation and Legislation of AI in Taiwan

The recent rise of AI has generated increasing interest but also raised concerns about potential risks. Copyright infringement, manipulation, ethical issues, and threats to economic and national security are some of the issues that have been repeatedly voiced out by citizens and governments. Authorities from all over the world, including Taiwan have been grappling with how to effectively regulate AI to address these concerns. To this end, Taiwan has taken proactive steps to mitigate its risks. In 2019, the Legislative Yuan enacted the AI Development Basic Law to promote the development of the AI industry in Taiwan while safeguarding individual privacy. However, in light of escalating AI concerns, subsequent discussions in 2020 and 2022 shifted towards protecting confidentiality, ethical considerations and safety.

The rapid proliferation of AI applications in our daily lives prompted the National Science and Technology Council (NSTC) to swiftly introduce the Artificial Intelligence Basic Act in July 2024. This legislation aims to address the growing risks to data security posed by generative AI services. The draft law outlines government requirements for AI applications, including labeling, disclosure, and accountability mechanisms. However, the Taiwan Association for Human Rights criticized the draft for its lack of clarity regarding how government agencies should use AI. Unlike the EU's risk-based AI regulation, Taiwan's draft only mandates an AI risk framework from the digital ministry without specifying interagency coordination. Moreover, it omits regulations on basic human rights protections, remedial measures, and potential privacy violations arising from the reuse of non-sensitive data. The association urged the government to clarify the relationship between the draft act and other regulations and revise the legal framework to ensure comprehensive implementation of safety and human rights measures. Nonetheless, National Yang Ming Chiao Tung University Law Professor, Carol Lin, argues that Taiwan still finds itself in the R&D phase of AI, which requires some flexibility. As she says, “the focus of a basic act is to offer general principles, guidelines, directions and flexibility as an industry grows”.?

AI’s Global Governance

Much like Taiwan, the rest of the world is also embroiled in discussions about ways to tackle one the biggest transnational challenges: Artificial Intelligence. Despite the UN's continuous failed attempts at solving global problems, during the past Summit of the Future in September, the United Nations successfully passed its first comprehensive global framework for digital cooperation and artificial intelligence (AI) governance called “Global Digital Compact”. In its 66 pages and 56 broad actions, the framework aims to ensure that digital technologies are used responsibly and for the benefit of all, while addressing the digital divide and fostering a safe and inclusive digital environment. It gives AI and tech companies with a set of principles and standards for their operations. This includes ensuring that their products and services are safe, secure, and ethical, and that they are not contributing to the digital divide. The Compact also calls for increased cooperation between governments, businesses, and civil society organizations in order to promote the responsible development and use of digital technologies.

Conclusion

As AI technologies evolve, nations worldwide are striving to establish AI governance frameworks. Taiwan, with its strong foundation in AI hardware, stands poised to become a global leader in AI governance. Following the passage of the AI Basic Act, Taiwan would be one of the few countries with comprehensive AI legislation. Now is the opportune moment for Taiwan to leverage its AI expertise and champion its governance principles internationally, particularly through collaboration with democratic allies like the United States and Japan.

Other Stories?

• Foreign Minister Lin Chia-lung has announced Taiwan's intention to shift its diplomatic strategy away from "checkbook diplomacy" and focus on providing tangible assistance to its remaining allies. Lin introduced a plan covering seven areas: semiconductor and supply chain resilience, trustworthy digital governance, new energy and carbon credits, smart science park development, smart healthcare, new agricultural innovation, and artificial intelligence.?
• Taiwan is opening its third diplomatic mission in Mumbai, India, reflecting the growing bilateral relationship. Trade between Taiwan and India has increased by 64% since 2016, and over 260 Taiwanese firms operate in India, creating over 170,000 jobs. Taiwan is also collaborating with India on semiconductor manufacturing and education, with the goal of strengthening India's manufacturing and semiconductor ecosystems and promoting cultural exchanges
• A recent survey in Japan conducted by the Indo-Pacific Strategic Think-tank (IPST) revealed strong support for Taiwan's independence and a desire for closer bilateral ties. The majority of respondents viewed Taiwan as a separate country and favored establishing formal diplomatic relations with Japan. While concerns about a potential military conflict in the Taiwan Strait exist, most respondents believe that Japan should support Taiwan, either through military means or economic sanctions. The survey further highlighted the close relationship between Japan and Taiwan, with a majority of respondents identifying Taiwan as Japan's closest Asian ally.
• Former President Tsai Ing-wen is expected to visit the European Parliament as part of her upcoming visit to Europe. She will be the first former President of Taiwan to meet the elected members of the European Parliament in the Headquarters of the EU.?

Diplomatic Tracker?

1. October 4th - Ukraine - Ukrainian Parliament members Mykola Kniazhytskyi and Akhtem Chyihoz
2. October 8th - United States - U.S Congress Members Debbie Lesko, Andy Biggs, and Carol Miller.?
3. October 9th - Japan -? Japan-ROC Diet Members' Consultative Council delegation led by former President of the House of Councillors Santo Akito.?
4. October 9th - Tuvalu - Prime Minister Feleti Teo?
5. October 9th - Guatemala - Delegation of Cabinet members led by the First Lady of Guatemala Lucrecia Peinado
6. October 9th - Belize - Deputy Prime Minister Cordel Hyde?
7. October 9th - Saint Lucia - Senate Speaker Alvina Reynolds and House Speaker Claudius J. Francis
8. October 9th - Saint Vincent and the Grenadines - Deputy Prime Minister Montgomery Daniel?

What we’re reading?

• A Tale of Two National Days. The politics of partying with Taiwan and China in one Washington week (Foreign Policy)

By delving into the political implications of these national celebrations, the article sheds light on the potential for diplomatic tensions and the challenges faced by the United States in navigating the complex geopolitical terrain of the region. Through a nuanced analysis of the celebrations, the article offers valuable insights into the intricate dynamics between Taiwan, China, and the United States, providing a deeper understanding of the ongoing tensions and the potential for future developments.

• Taiwan Test: British Fail (The Center for European Policy Analysis)

Taiwan Test: British Fail is a critical analysis of the United Kingdom's stance on Taiwan. The article argues that Britain's approach, heavily influenced by concerns over China's economic retaliation, is a significant failure. It highlights the importance of Taiwan to global technology and the potential consequences of neglecting its security. The piece emphasizes that a stronger stance on Taiwan is essential for Britain's national interests and global stability.

• Would Trump abandon Taiwan? (East Asia Forum)

Although Trump previously had a positive relationship with Taiwan, sentiment has shifted under President Biden, who has strengthened the U.S.-Taiwan ties. If Trump returns to office, he might pressure Taiwan to significantly increase its defense budget and could halt military aid, focusing instead on trade balances. Taiwan needs to enhance its defense capabilities and strengthen ties with allies like Japan to navigate potential U.S. isolationism. This uncertainty may embolden China and challenge the security of U.S. partners in a more competitive global landscape.

• Taiwan Semiconductor Export Conundrum (The Diplomat)

Taiwan's semiconductor exports to China are caught in a geopolitical tug-of-war. The island nation must balance the economic benefits of its largest market with the national security concerns raised by its reliance on China. Despite the tensions, Taiwan remains heavily dependent on China for semiconductor exports. The United States and other Western nations are urging Taiwan to reduce its reliance, citing the strategic importance of semiconductors. Taiwan's government faces a difficult task of navigating these pressures while ensuring the continued growth and competitiveness of its semiconductor industry.

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