Initiated by President Tsai Ing-wen in 2016, the New Southbound Policy (NSP) signals that Taiwan would reduce its economic dependency on China. In addition, NSP advocates that Taiwan diversify its foreign policy partners and engage more actively with the Indo-Pacific region. In 2024, President Lai Ching-te argued that he would continue Tsai’s policy and refine it into the NSP Plus. That policy, however, faces several challenges in its implementation. 

Since the NSP has been important for Taiwan, Michael Hsiao explains that Lai’s NSP focuses on six strategic aspects: technology, health, resilience, think tanks, non-governmental organizations (NGOs), and youth. Not only that, but NSP Plus aims to strengthen Taiwan’s position as a regional hub for its partners. It aligns with Lai’s pre-election commitment to spur Taiwan’s contributions to the world under the spirit of “Taiwan Can Help.” Furthermore, Lai’s commitment has been implemented through the establishment of the NSP task force and agencies. 

In the Yushan Forum 2025, Lai said, “Taiwan will continue to engage with the world, and we welcome the world to come closer to Taiwan. As we gather here today, I am confident that we share the same goal: through international cooperation, we hope to build an even more inclusive, resilient, and prosperous Indo-Pacific, while jointly defending the democracy, freedom, and peace we so firmly believe in.”

For Taiwan, Southeast Asia is a critical region. It has a vast market that can significantly enhance Taiwan’s economic........

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