President Lai urges Michigan Governor to help finalize double taxation agreement.

President Lai Ching-te received a visiting delegation led by Michigan Governor Gretchen Whitmer at the Presidential Office today, where the two sides exchanged in-depth views on important issues such as economic and trade cooperation, technological innovation, and industrial security. During the meeting, President Lai expressed a specific hope to the U.S. side that Taiwan and the United States can conclude the signing of an agreement to avoid double taxation as soon as possible, thereby creating a more competitive and favorable investment environment for businesses in both countries. In addition, amid geopolitical changes and the restructuring of global supply chains, President Lai proactively mentioned that Taiwan is currently actively developing its drone industry, hoping to foster more substantive industrial cooperation with Michigan in the future to comprehensively enhance the supply chain resilience of the democratic camp and safeguard critical technology and industrial security.

As a traditional American industrial powerhouse and the capital of the automotive manufacturing industry, Michigan has played a leading role in the nationwide and global wave of transition toward electric vehicles in recent years. Governor Whitmer's leadership of an economic, trade, and academic delegation to Taiwan not only highlights the close subnational level of exchanges between Taiwan and the United States, but also reflects the high degree of complementarity between the two regions across industries. Taiwan possesses world-class high-tech manufacturing capabilities, a complete semiconductor ecosystem, and an exceptional foundation in the information and communications technology industry, while Michigan boasts deep expertise in advanced manufacturing, automotive engineering, materials science, and multinational corporate headquarters operations. Both sides have long maintained a tacit understanding of cooperation in traditional manufacturing and automotive components, and now, as global supply chains move toward security, resilience, and de-risking, the scope of bilateral cooperation is gradually expanding into higher-level technological fields.

Addressing the institutionalized progress of Taiwan-U.S. economic and trade relations, President Lai reiterated the urgency and importance of an agreement to avoid double taxation during the talks. For a long time, Taiwanese enterprises investing in the United States and U.S. companies expanding their presence in Taiwan have faced the heavy burden of double taxation, which invisibly increases cross-border operational costs and limits the potential for greater two-way investment. Promoting a Taiwan-U.S. double taxation avoidance agreement is not only a shared aspiration of the industry for many years, but also a crucial puzzle piece in deepening the Taiwan-U.S. economic partnership. Once this agreement is successfully signed and takes effect, it will substantially lower corporate tax burdens, significantly boost the willingness and confidence of Taiwanese enterprises to invest in the United States, and attract more high-quality American companies to deepen their roots in Taiwan, creating mutually beneficial economic outcomes and building a more solid bridge for Taiwan-U.S. trade and economics.

Beyond traditional economic, trade, and manufacturing cooperation, President Lai specifically highlighted the drone industry during the reception, underscoring Taiwan's industrial development priorities in the current international strategic situation. As recent geopolitical conflicts such as the Russia-Ukraine war have demonstrated the importance of asymmetric warfare and unmanned technology, drones are no longer merely consumer goods or aerial photography tools; they are strategic materials vital to national security, defense autonomy, and the future development of the technology industry. Taiwan is currently actively building a national-level drone industrial cluster, striving to establish autonomous, secure, and trustworthy drone research, development, and manufacturing capabilities under the premise of excluding the red supply chain. Michigan possesses world-class strengths in aerospace engineering, advanced automotive electronics, and automated control technology. If these can be combined with Taiwan's robust hardware manufacturing capabilities and cybersecurity advantages, industrial chain cooperation between Taiwan and the United States in drones and related advanced technologies will provide strong support for the security of the democratic supply chain.

Overall, President Lai's meeting with Michigan Governor Gretchen Whitmer's delegation is not only a routine diplomatic courtesy, but also a substantive, strategically significant economic, trade, and industrial dialogue. From promoting a double taxation agreement to optimize the investment environment, to seeking transnational cooperation in the drone industry, the actions consistently demonstrate the Taiwanese government's proactive approach in responding to global economic shifts. By establishing deeper substantive partnerships with U.S. state governments, Taiwan is step by step positioning itself as an indispensable key force in the global democratic supply chain. This not only helps ensure its own economic security, but also paves a broader path for Taiwanese enterprises to reach the world and fight shoulder-to-shoulder with leading international technology manufacturers.