Morning World: President Highlights 4 Key Measures to Counter Maritime Coercion by the PRC

The Presidential Office's 'All-out Defense Resilience Committee' held a tabletop exercise on the 25th, simulating a scenario where the PRC coast guard disrupts maritime shipping and logistics near Taiwan. Eleven government agencies participated to prepare for gray-zone threats. Interior Minister Liu Shih-fang announced the establishment of seven additional Reception and Departure Centers (RDC) for international rescue teams to enhance regional disaster relief and defense networks. President Lai Ching-te directed the Ministry of Transportation and Communications and the Coast Guard Administration to strengthen communication with merchant vessels, enhance maritime law enforcement, implement necessary dispersal measures, and improve drone surveillance.

The Executive Yuan passed draft amendments to the 'Tobacco Hazards Prevention Act' on the 25th. Penalties for the manufacturing, import, or sale of e-cigarettes now reach up to seven years of imprisonment and fines of up to NT$5 million. Possession or use may incur fines of up to NT$100,000. Additionally, tax reforms were approved, increasing the tax exemption for minor children by 50% to NT$151,500, benefiting approximately 2.37 million people.

Typhoon-induced heavy rainfall has caused widespread flooding across Taiwan, particularly in Pingtung, Taipei, and Kaohsiung, with over 16,000 households suffering power outages in Changhua. The Ministry of Agriculture issued a yellow alert for a landslide dam in Hualien, necessitating the evacuation of 208 residents. Meanwhile, a series of powerful earthquakes in Venezuela, measuring 7.2 and 7.5, has resulted in at least 188 deaths and widespread structural damage, prompting the government to declare a state of emergency.

In international security, the 30th RIMPAC exercise began on the 24th, led by the USS Theodore Roosevelt, serving as a platform to maintain a free and open Indo-Pacific. Furthermore, reports indicate that the EU, the Netherlands, Germany, and Greece have joined the U.S.-led 'Silicon Shield' initiative, aimed at securing AI supply chains and excluding China from critical technology networks.

Domestically, Taiwan's economic outlook remains positive. The Taiwan Institute of Economic Research reported a significant rebound in manufacturing and robust growth in the service sector, driven by stock market wealth effects. Securities firms saw record-breaking profits in the first five months of the year, exceeding the annual profit of 2025. Conversely, the New Taipei District Prosecutors Office has indicted seven individuals, including the president of the A-List Clinic, for illegal surveillance of patients.