President Lai Unveils "Pax Silica Declaration" as Taiwan-U.S. Economic Security Alliance Takes Shape

President Lai Ching-te (賴清德) delivered a fully English-language address Thursday (March 26) at the American Chamber of Commerce in Taiwan's (AmCham Taiwan) annualbanquet "Hsieh Nien Fan (謝年飯)", arguing that Taiwan's strengths lie not only in its world-leading semiconductor and ICT industries, but also in its agile and innovative small and medium-sized enterprises.

"Taiwan today is not only a manufacturing base for semiconductors and their components," Lai said. He attributed Taiwan's broader contribution to global supply chain resilience to trust-based relationships and democratic values.

Taiwan-U.S. Economic Ties Becoming More Institutionalized, Lai Says

Lai noted that the United States has become Taiwan's largest destination for outbound investment and its largest export market.

In January, the two sides held their sixth annual Economic Prosperity Partnership Dialogue and signed the Joint Statement on the Pax Silica Declaration and U.S.-Taiwan Cooperation on Economic Security, which underscores Taiwan's centrality in global AI supply chains. （Related： Bipartisan U.S. Senate Delegation Arrives In Taiwan For High-Level Meetings ｜ Latest ）

In March, the two sides signed a Memorandum of Understanding (MOU) to strengthen bilateral investment frameworks. Lai described these milestones as evidence that the economic relationship is growing more institutionalized, stable, and predictable.

Beyond Trade: Mutual Investment, Innovation, and Economic Security

"Taiwan and the United States are not just trading partners — we invest in each other, we innovate together, and we maintain economic security together," Lai said. He added that Taiwan must maintain a stable domestic foundation to uphold its role in the international community.

Lai said Taiwan would strengthen national defense and whole-of-society resilience to provide the most solid foundation possible for domestic industry.

Drawing on an extended metaphor, Lai said: "Taiwan is like a tree — if we want to grow tall and strong, reaching as high as the sky, we need strong and healthy roots to stand firm in the soil." He pledged his government would work to enrich that foundation and ensure the industrial base remains both deep and broad.

AIT Director Greene: A "New Golden Era" for Taiwan-U.S. Ties

Raymond Greene (谷立言), Director of the American Institute in Taiwan (AIT) Taipei Office, told the gathering that the Taiwan-U.S. economic relationship is entering a "new golden era," marked by growing bilateral trade, expanding investment, and deepening cooperation in advanced technology. （Related： Bipartisan U.S. Senate Delegation Arrives In Taiwan For High-Level Meetings ｜ Latest ）

Greene said the United States would continue to support Taiwan's development in security and energy resilience. He also expressed optimism about expanding Taiwanese investment in the U.S., increased defense industry cooperation, and deeper people-to-people exchanges.

Marking AmCham Taiwan's 75th anniversary and what Greene called an important milestone in Taiwan-U.S. democratic development, he said the bilateral relationship is grounded in shared values and holds significant potential for further deepening.

Alaska LNG: A Recurring Theme at the Annual Banquet​

The AmCham Taiwan Hsieh Nien Fan (謝年飯), now in its 60th year, has become a customary platform for Taiwan's sitting president.

At last year's dinner, Lai expressed hope that AmCham Taiwan would continue supporting an early resolution to the Taiwan-U.S. double taxation issue, to further strengthen the mutually beneficial economic partnership. Then-AmCham Taiwan Chairman Dan Silver responded that resolving the double taxation issue as quickly as possible was essential to deepening bilateral trade and investment. （Related： Bipartisan U.S. Senate Delegation Arrives In Taiwan For High-Level Meetings ｜ Latest ）

Lai also signaled at last year's event that Taiwan was prepared to expand purchases from the United States — including industrial goods, agricultural products, and natural gas. He specifically praised the quality of Alaskan natural gas and cited its relatively short shipping distance to Taiwan, saying the island had strong interest in procuring it on grounds of both economic suitability and energy security.

Greene Last Year: Alaska North Slope LNG Has Potential as Taiwan's Stable New Energy Source

At last year's Hsieh Nien Fan, Greene noted that the United States is the world's largest energy exporter and can offer Taiwan a full spectrum of energy solutions — from geothermal and nuclear power to advanced grid technology.

Greene explained that the Trump administration sought to share U.S. liquefied natural gas (LNG) resources with close partners, including through the completion of an LNG project on Alaska's North Slope. He said the project's short delivery supply chain gives it the potential to serve as a new, stable, and secure energy source for Taiwan — while also offering a strategic opportunity to draw the United States, Taiwan, and regional partners more closely together.

"We are pleased that Alaska Governor Michael James Dunleavy is with us tonight," Greene said at last year's dinner, "underscoring the many opportunities ahead for Taiwan and Alaska to work together to ensure Taiwan has a stable and secure LNG supply in the years to come."

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