Taiwan Plans Sovereign Wealth Fund to Boost Global Expansion, Counter China

Taiwanese President Lai Ching-te announced plans to establish a sovereign wealth fund aimed at boosting Taiwan's economic development by helping local companies expand internationally, particularly in technology and artificial intelligence sectors. The fund, to be government-led with private sector cooperation, seeks to strengthen Taiwan's global market integration and counter China's attempts to isolate the island. Lai emphasized the fund's role in leveraging Taiwan's industrial strengths and expanding its global presence while reinforcing ties with democratic partners like the United States. This initiative coincides with increased U.S. investment in Taiwan's tech industry and aims to bolster Taiwan's leadership in semiconductor and AI innovation. The government plans to propose legislation for the fund, which would focus mainly on foreign investment to help Taiwanese businesses grow internationally. Although the idea has been discussed locally with some caution from the central bank and finance ministry, it forms part of Taiwan's broader strategy to address global economic challenges and enhance its international economic footprint.