The European Chamber of Commerce Taiwan (ECCT) yesterday urged the government to move faster to bolster the nation’s economic and societal resilience, cautioning that Taiwan cannot count on the artificial intelligence (AI) boom to drive growth forever.
Taiwan was one of the clear winners of the COVID-19 era tech cycle and is riding the AI demand wave, the chamber said in its annual position paper.
However, the group warned that such momentum would not last indefinitely.
Photo: CNA
“There is no telling how long the AI bonanza will continue, while Taiwan is facing numerous other economic and geopolitical challenges,” the report said, adding that the country still lacked a comprehensive, human-centered AI governance framework.
The absence of clear rules creates ethical, security and economic uncertainties for innovators, investors and the public, it said.
As the durability of the AI upswing is uncertain and geopolitical risks are increasing, Taiwan should “make hay while the sun shines” by reinforcing its energy system, workforce, infrastructure and regulatory environment, the ECCT said.
A major concern is that Taiwan is falling behind its renewable-energy targets due to global supply constraints, restrictive permitting and fragmented policymaking, it added.
The chamber urged the government to strike a better balance between maintaining reliable and affordable power, and meeting climate and energy-security objectives.
The report also identified opportunities for deeper AI collaboration between Taiwan and Europe, saying their complementary strengths could shape global standards for safe and ethical AI development.
To improve the energy transition, the ECCT recommended the government establish a dedicated energy agency, ensure adequate financing for the next phase of offshore wind projects, and ease permitting processes for geothermal and onshore wind projects.
The chamber also called for greater investment in grid and storage infrastructure, and for relaxing localization rules when there are no competitive domestic suppliers.
Additional proposals included creating a roadmap for floating offshore wind plans, expanding tax incentives for electric vehicles, and updating rules for biodiesel, sustainable aviation fuel, hydrogen and ammonia.
Demographic pressures pose another long-term vulnerability, as Taiwan turns into a super-aged society, the chamber said, calling for stronger efforts to attract and retain foreign talent, including by lower qualification thresholds, simpler visa procedures, standard three-year work permits and a new short-term business visa.
The ECCT also urged more flexible labor policies and exempting senior executives from certain requirements, saying that overly rigid rules constrain productivity and hold back women’s career advancement.
These reforms are crucial if Taiwan is to remain competitive and resilient as global conditions grow increasingly uncertain, it said.
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