CECC predicts problems as China eases restrictionsLUNAR NEW YEAR PEAK: Taiwanese who are in China should get vaccinated and consider returning early, as infection rates are expected to increase, the CECC said China faces five major problems once COVID-19 begins spreading there, with a peak in infections likely during the Lunar New Year holidays, Deputy Minister of Health and Welfare Victor Wang (王必勝), who heads the Central Epidemic Command Center (CECC), said yesterday. Wang wrote on Facebook that according to the center’s data, the increasing number of COVID-19 cases in China is worth noting, as the new Omicron subvariants BF.7 and BA.5.2 spreading in China are highly infectious and are more transmissible than the previously dominating Omicron subvariants. “The virus cannot be eliminated even under China’s strict control measures,” he wrote. “Its policyBy Lee I-chia

US House passes US$12bn aid for Taiwan militaryStaff writer, with CNA in WashingtonThe US House of Representatives on Thursday passed the 2023 National Defense Authorization Act (NDAA), which authorizes up to US$12 billion in grants and loans to Taiwan to buy US weapons over the next five years. The bill passed the Democratic Party-controlled House on a 350 to 80 vote. The act would authorize up to US$2 billion in annual grants from next year to 2027, and an additional US$2 billion in loans for Taiwan to use to bolster its military capabilities with weapons from the US. The act also recommends that the US administration invite Taiwan to attend the US-organized Rim of the Pacific Exercise, a regional military drill, in 2024. The bill was proposed following China’s increased military actions in and near the Taiwan Strait in recent years, and amid growing concerns in Taipei and Washington that China’s military buildup has far exceeded that of Taiwan.

Income taxes drive gains in November tax revenueBy Crystal Hsu / Staff reporterThe government last month collected NT$253.6 billion (US$8.28 billion) in tax revenue, rising 0.4 percent from a year earlier on the back of corporate and personal income tax, as well as inheritance tax gains, the Ministry of Finance said yesterday. Corporate income tax revenue spiked 70.3 percent to NT$7.8 billion, while personal income tax revenue grew 2.6 percent to NT$22.9 billion, the ministry told a news conference in Taipei. Ministry of Finance Department of Statistics Deputy Director-General Chen Yu-feng, right, attends a news conference in Taipei yesterday. In addition, inheritance tax revenue swelled 60.8 percent to NT$4.1 billion, while revenue from business taxes picked up 4.5 percent to NT$97.8 billion, she said. Full-year excess tax revenue might be more than NT$450 billion, Chen said, adding that corporate, personal, inheritance, business and house tax revenues have already set full-year records.

Economic growth to slow to 2.72% next year: CIERBy Crystal Hsu / Staff reporterThe nation’s GDP growth could slow to 2.72 percent next year, from an estimated 3.04 percent pickup this year, as global economic headwinds could hurt demand for Taiwanese exports, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. In addition, the Ukraine war and China’s tight COVID-19 controls would continue to slacken global trade, Chang said. Exports this quarter are forecast to contract 6.26 percent and remain in the woods in first half of next year, CIER said. Imported inflation has received support from a weak New Taiwan dollar linked to capital outflows this year, government data showed. The NT dollar is likely to trade at an average of NT$31.09 versus the greenback next year, from NT$29.82 this year, CIER said.

Vice President Lai to run for DPP chairpersonEXPECTATIONS: William Lai understands the DPP’s need for a new leader to revitalize the party and restore the public’s trust in it, party officials saidBy Chen Yun and Jason Pan / Staff reportersVice President William Lai (賴清德) yesterday confirmed that he had told President Tsai Ing-wen (蔡英文) of his decision to run for the Democratic Progressive Party (DPP) chairperson position. Tsai resigned as DPP chairperson in the wake of the party’s losses in local elections on Nov. 26. Vice President William Lai speaks at an event in Kaohsiung on Nov. 16. They said that Lai understands that the DPP needs a new leader to revitalize the party and has therefore responded to calls for him to lead it. The DPP will then hold an election open to all party members on Jan. 15 and formally announce its new chairperson on Jan. 18, it said.

Pandemic stirs farming innovationBy Hsieh Chi-Ming 謝奇明Since its initial outbreak in 2019, COVID-19 has continued to cause health crises and negative GDP growth throughout the world. Due to the perishability of agricultural products, the loss of nutrition over time and the difficulty of standardizing packaging, the management of the supply chain of such products is more complicated than that of general industrial goods. During the COVID-19 pandemic, logistics delays, the reduction of retail channels and the short chain of agricultural products led to the rise of a stay-at-home economy in Taiwan. Even though the phenomenon of short chains of agricultural products exists in pandemics, some local smallholder farmers also developed their own coping strategies. The association has dispersed farmers’ sales channels from a single, large one to more expanded channels to stabilize the local agriculture during the pandemic.

US could use ‘lightning carriers’ against PRCBy Jonathan Chin / Staff writerThe US Navy could use experimental “lightning carriers” in a possible conflict with China over Taiwan, Business Insider reported on Wednesday. The lightning carrier concept involves using converted amphibious assault ships (LHAs) carrying Lockheed Martin F-35B “Lightning II” stealth jets. “There is no comparison between a J-15 and an F-35B,” Thomas said, referring to the PLAN’s main carrier-based strike fighter. Lightning carriers carry fewer jets than fleet aircraft carriers, which can feature more than 50 jets, but are significantly cheaper and more versatile, as the configuration enables ships to switch between naval aviation and amphibious assault platform, he said. The US Navy is continuing to experiment with integrating lightning carriers with existing naval forces and formations, the report said.

Meta expected to face fines after EU privacy rulingAFP, PARISMeta Platforms Inc is expected to face another large fine after an EU data watchdog on Tuesday imposed binding decisions concerning the treatment of personal data by the owner of Facebook, Instagram and WhatsApp. The European Data Protection Supervisor said in a statement that the rulings concerned Meta’s use of data for targeted advertising, but did not give details or recommend fines. The latest case follows complaints by privacy campaigning group NOYB that Meta’s three apps allegedly fail to meet the EU’s strict rules on data protection. However, this was rejected as far too low by the French National Commission for Technology and Freedoms and other national watchdogs, which asked the EU watchdog to investigate the case. That adds to a 60 million euros fine in France in January over its use of “cookies,” the digital trackers used to target advertising.

China’s imports and exports plungeAMID COVID-19 CURBS: The country would go through ‘a bumpy reopening process,’ an economist said, while officials might target 5 percent GDP growth for next yearAFP, BEIJINGChina’s imports and exports last month plunged to levels not seen since early 2020, official figures showed yesterday, as stringent COVID-19 restrictions hit the economy hard. Imports fell 10.6 percent year-on-year, the biggest drop since May 2020, Chinese General Administration of Customs data showed. “Weakening domestic and foreign demand, COVID disruptions and a rising comparison base lead to a perfect, but well-expected storm to China’s exports and imports,” Jones Lang Lasalle Inc chief economist Bruce Pang (龐溟) told Bloomberg News. “I expect exports will stay weak in the next few months as China goes through a bumpy reopening process,” he said. A growth target of about 5 percent “would be a signal to send this message to the public and local officials,” he added.

The annual event is known as the 2+2 talks because they involve the defense and foreign ministers of each country. They were attended by US Secretary of State Antony Blinken and US Secretary of Defense Lloyd Austin, and Australian Minister for Foreign Affairs Penny Wong (黃英賢) and Australian Minister for Defence Richard Marles. Austin said that the allies would seek Japanese participation in joint operations in Australia, where the US has been rotating marines since 2011 through Darwin. Austin said that the US and Australia agreed to increase rotations of bomber task forces, fighter jets, and the US Army and Navy. “We agreed to enhance trilateral defense cooperation and to invite Japan to integrate into our force posture initiatives in Australia,” Austin said.

In contrast, across the Taiwan Strait, dissatisfaction with the Chinese government’s harsh “zero COVID” policy spawned a “Blank Paper Movement” across the nation. Demonstrators chanted slogans calling for Chinese President Xi Jinping (習近平) and the Chinese Communist Party (CCP) to step down. If the public is dissatisfied with the government, all it needs to do is to vote the governing party out of office. This is an issue that the KMT, or any political party in Taiwan, must address. Not content with attacking Taiwan’s performance in curbing the COVID-19 pandemic, the opposition resorted to undermining national defense in its desire to the win the elections.

TSMC unveils plan for second fab in ArizonaBy Lisa Wang / Staff reporter, with ReutersTaiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it is more than doubling its US investment to US$40 billion as it plans to make 3-nanometer chips in 2026 at a second Arizona fab, adding to the chipmaker’s original plan of building a US$12 billion fab to make 4-nanometer chips in 2024. Taiwan Semiconductor Manufacturing Co’s new wafer manufacturing facility under construction in Phoenix, Arizona, is pictured on Monday. “When complete, TSMC Arizona will be the greenest semiconductor manufacturing facility in the United States producing the most advanced semiconductor process technology in the country, enabling next-generation high-performance and low-power computing products for years to come,” TSMC chairman Mark Liu (劉德音) said in the statement. The chipmaker’s investment is a big win for Biden after supply-chain issues disrupted the US economy early in his presidency. “The occasion for the president’s travel is to mark a significant milestone that TSMC is reaching in bringing the most advanced semiconductor manufacturing back to the US,” US National Economic Council Director Brian Deese said.

Fewer companies willing to hike pay next year: surveySHIFT TO SERVICES: Restaurants, hotels and recreational facilities topped the list of sectors willing to raise compensation, replacing high-tech firms, which fell to No. However, only 12.6 percent of companies introduced across-the-board pay raises, as most companies limited the benefit to workers who met performance requirements. For this year, 44.2 percent of companies said they have no intention of adjusting compensation, yes123 spokesman Yang Tsung-pin (楊宗斌) said. The planned pay raise is mainly to attract and retain skilled workers, Yang said, adding that inflation is also a motivating factor. Pay hikes are forecast to average 4.1 percent, or NT$5,236, for entry-level staffers and NT$8,618 for supervisory positions, the job bank said.

Does religious faith lead to a happier, healthier life? LIFE-EXTENDING BENEFITSStudying the life-extending benefits of religious practice can therefore offer useful strategies for anyone — of any faith or none — to live a healthier and happier life. This healthier living may be the result of the religious teaching itself, which tends to encourage the principles of moderation and abstinence. SOCIAL CONNECTIONImportantly, however, the health benefits of religion remain even when the scientists have controlled for these differences in behavior, meaning that other factors must also contribute. Last, but not least, religious faiths can create a sense of purpose in someone’s life — the feeling that there is a reason and meaning to their existence.

US$10bn pending for defense: expertsBy Aaron Tu and Jonathan Chin / Staff reporter, with staff writerTaiwan might soon acquire Aegis-equipped warships or other in-demand weapons systems if reports are accurate that the US Congress plans to authorize US$10 billion of military aid to Taiwan, Taiwanese defense experts said. In Taipei, a defense official said on condition of anonymity that information about specific items is classified, adding that Taiwan continues to exchange views about its force planning with the US. Photo: ReutersTaipei and Washington should carefully consider which weapons Taiwan needs that cannot be developed or obtained independently, Institute for National Defense and Security Research analyst Shu Hsiao-huang (舒孝煌) said. Defence International editor Chen Kuo-ming (陳國銘) said the significance of the reported increase in US military aid can be inferred from its scale, given that US aid to Ukraine is US$18 billion. The dramatic boost in aid also suggests that Washington believes that the risks confronting Taiwan are extremely high, he added.