Taiwan President Calls for Economic Focus Amid Rising Tensions

Taipei, December 4, 2025 – Taiwan President Lai Ching-te urged China to concentrate on strengthening its economy rather than pursuing “territorial expansion,” highlighting the growing contrast between Taiwan’s economic momentum and China’s slower growth. Speaking at the New York Times’ DealBook Summit, Lai emphasized that Taiwan’s economy is projected to expand 7.37% this year, compared with China’s estimated growth of just over 4%, according to international financial institutions.

“China’s economy is indeed struggling,” Lai stated, calling on President Xi Jinping to prioritize the well-being of Chinese citizens over aggressive territorial ambitions. “We sincerely hope that as China faces economic pressures, its leadership will focus on improving the lives of the people rather than pursuing expansionist policies,” he added.

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Taiwan Offers Cooperation Amid Regional Economic Challenges

While Lai did not provide specific details, he expressed Taiwan’s willingness to help and cooperate with China in addressing economic challenges. The remarks come amid heightened cross-strait tensions, as China views the democratically governed island as part of its territory and has increased military and political pressure against Taiwan.

China’s Taiwan Affairs Office did not immediately respond to requests for comment on the president’s statements.

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Comparing Economic Growth: Taiwan vs China

Taiwan’s strong growth trajectory contrasts sharply with China’s moderated expansion:

• Taiwan: Forecast to grow 7.37% in 2025, benefiting from strong demand in the technology sector and global interest in artificial intelligence (AI) applications.
• China: Expected growth of 4.5%–5%, according to the IMF, World Bank, Goldman Sachs, and Standard Chartered. Factory output continues to outpace domestic demand, leading to deflationary pressures and ongoing concerns about overcapacity and price competition among Chinese firms.

Taiwan’s robust tech-driven growth has been fueled by a surge in AI-related investment, with tech giants planning to spend $400 billion on data centres in 2025. Analysts say this boom is driving one of Taiwan’s fastest economic expansions in 15 years.

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Implications for Investors and Regional Stability

The disparity in economic performance between Taiwan and China could have long-term geopolitical and investment implications. Taiwan’s leadership is leveraging its technology sector to enhance economic independence, while China faces the dual challenges of maintaining growth and addressing social pressures amid slowing demand.

Investors are closely watching Taiwan’s tech-heavy economy for opportunities in AI, semiconductors, and data infrastructure projects, while analysts caution that cross-strait tensions remain a potential risk factor.

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Conclusion

President Lai’s remarks underscore Taiwan’s strategic emphasis on economic resilience and technological leadership as tools to bolster national security and international standing. By contrasting Taiwan’s fast-growing economy with China’s slower expansion, Lai highlighted the importance of prioritizing domestic well-being over geopolitical ambitions.

Taiwan’s economy and innovation-driven policies continue to set it apart as a regional economic powerhouse, even amid ongoing tensions in the Asia-Pacific region.