2025 Concordia Annual Summit

Geopolitics, Trade, and Taiwan’s Strategic Role in AI Cooperation

  • Democracy, Security, & Geopolitical Risk
Mark Hannah, Dr. Yuh-Jye Lee

Session
Partners

Session Summary

Important
Quotations

"The fact that Dr. Lee is here representing not just Taiwan but its National Security Council is a testament to how inseparable AI is from national security, covering everything from supply chain vulnerabilities and technological dependencies to data sovereignty and strategic partnerships."
Mark Hannah
"I always believe trust is the most important thing. Taiwan is a trustworthy partner. That’s why the U.S. only allows AI servers made in Taiwan, not in China."
Dr. Yuh-Jye Lee

Key
Takeaways

  • Trust-Based Partnerships in Strategic Technology: Taiwan’s experience demonstrates that trust is the most important factor in AI cooperation. The U.S. Clean Network initiative exemplified this, with AI servers required to be manufactured in Taiwan rather than China due to security concerns about malicious vectors in AI hardware. This established Taiwan as a trustworthy partner in critical AI infrastructure.

 

  • Data Sovereignty and Cultural Values in AI Systems: Large language models embed knowledge systems, culture, and values. Dr. Lee’s personal experience with ChatGPT responding in simplified Chinese (PRC format) rather than traditional Chinese highlighted how data bias affects AI outputs. This underscores the critical need for nations to develop their own AI models using domestic data to preserve cultural identity and prevent foreign influence.

 

  • Semiconductor Leverage and Democratic Alliance Building: Taiwan controls more than 90% of the world’s most advanced semiconductors powering AI systems. Rather than weaponizing this advantage, Taiwan has chosen to stay on the democracy side, with TSMC committing $165 billion in U.S. investment while keeping the most advanced technologies shared between Taiwan and democratic partners.

 

  • Asymmetric Defense Through AI Innovation: Facing existential security threats, Taiwan recognizes that AI can provide asymmetric advantages in defense. Collaborations with Western AI defense companies like Anduril and Shield AI are opening new career paths for Taiwan’s young talent beyond traditional semiconductor industries.

 

  • International Recognition Through Technological Contribution: Taiwan’s slogan evolved from “Taiwan Can Help” during COVID to “Taiwan Can Help More” in the AI era. Despite lacking UN membership, Taiwan seeks recognition through its essential role in global AI infrastructure and democratic technology partnerships.

Action
Items

  • For Democratic Nations: Advance democratic AI cooperation, establishing “Clean AI” standards inspired by the Clean Network, developing bilateral frameworks rooted in shared democratic values, and launching talent exchange programs to build cross-ally AI expertise.


  • For Taiwan: Strengthen Taiwan’s AI ecosystem, accelerating the TAIDE project with localized fine-tuning, expanding the Employment Gold Card to attract global AI experts, and deepening defense AI partnerships with Western firms to sustain asymmetric advantages.


  • For International Organizations: Integrate Taiwan into democratic AI governance, enabling its participation in global discussions, creating trust-based certification for AI components, and building multilateral frameworks to share AI benefits aligned with democratic values.


  • For Technology Companies: Ensure ethical and secure AI development, diversifying training data to prevent authoritarian bias, establishing research centers in trusted democracies like Taiwan, and adopting transparency standards for model data and cultural assumptions.


  • For Policymakers: Treat AI as a pillar of national security, coordinating between tech and defense agencies, balancing innovation with protection, and reinforcing supply chain resilience by prioritizing trusted democratic partners.

 

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