The National Defense Act (國防法) should be amended to require technology transfers to Taiwan in cases of international cooperation on weapons research and development, Democratic Progressive Party (DPP) lawmakers said.
President William Lai (賴清德) recently announced that he would raise the defense budget to more than 3 percent of GDP by allocating a special budget for it, given the growing threat from China.
DPP legislators Chiu Chih-wei (邱志偉) and Lin Chun-hsien (林俊憲) on Sunday said that part of the budget would go toward increased arms procurements from the US, but Taiwan should also seek to develop its own arms industry through an amendment to Article 22 of the National Defense Act.
Photo: Chiang Ying-ying, AP
The article states: “When it is necessary to pursue outsourcing channels, the acquisition activities shall realize technology transfer policy so as to establish an autonomous national defense infrastructure.”
Under Chiu and Lun’s proposed amendment, the article would stipulate that a technology transfer should also be implemented when “conducting international cooperation in the research and development, production, or maintenance of related weapons and equipment in order to achieve national defense independence and safeguard Taiwan’s security goals.”
The US supports Taiwan’s acquisition of defense equipment through multiple channels, including independent research and development, and technology transfers, to connect with the international supply chain, Chiu said.
“Taiwan faces challenges caused by the delayed delivery of US arms,” he said. “To strengthen Taiwan’s national defense and self-defense capabilities, it is crucial to actively promote the Taiwan-US joint weapons production plan.”
Taiwan should strive to obtain original manufacturer certification and promote the development of its domestic industry through international cooperation and investment, Chiu said.
To facilitate that, articles 10 and 19 of the Defense Industry Development Act (國防產業發展條例) should be amended, he said.
Current provisions limit cooperation with foreign suppliers on the research, production, manufacture and maintenance of military defense supplies, except in the case of a “special necessity,” with the approval of a competent authority in consultation with other authorities in charge, Chiu said.
In some cases, the involvement of other ministries or agencies might be required to procure foreign materials or supplies. For example, in the sourcing of key components and raw materials for drones, the Ministry of Transportation and Communications might be involved, he said.
However, the ministry would be outside of the scope of authorities defined under the current regulations, so the draft article amends that by including “relevant agencies,” he said.
“Implementing the transfer of key technologies associated with research and development or production and expanding the defense industry market would contribute to the country’s long-term security and development,” he said. “Many countries adopt flexible and diversified supply strategies to avoid monopolizations of the sources of key military components and raw materials.”
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