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Speaking at the opening ceremony, CIP Minister Ljaucu‧Zingrur said that cultural experiences often move people deeply, and that sound policy can turn that emotion into lasting institutions. As the CIP marks its 30th anniversary this year, the opening ceremony of the Formosa-Hawaii Cultural Festival featured a special tribute honoring individuals who have made outstanding contributions to Indigenous affairs. Among these forerunners and partners are those who advocated internationally for the rights of their people, devoted their lives to rescuing endangered Indigenous languages, brought international acclaim to Taiwan through music, dance, and sport, and even those who became guardians of their communities for leading the swift evacuation of an entire village amid a raging storm and rebuilding it in the aftermath. In paying tribute to these unsung heroes, the Minister expressed hope that this honor will be passed on, inspiring more talented citizens to join in advancing Indigenous affairs. He also expressed that this cultural celebration is powerful proof that Indigenous culture is not only flourishing on Taiwan’s own soil, but is also embracing the world with the utmost confidence and openness as it steps onto the international stage.

The festival’s biggest draw is its lineup of top international music and dance performances from across the Pacific, alongside Golden Melody Award-winning stars, paired with a lively, delicious, and fun Austronesian-themed marketplace, together creating the most exuberant summer party of the season! The whole venue is awash in the romance of Aloha. Visitors can savor Hawaiian Kona coffee and Indigenous delicacies in the Austronesian-themed exhibition area, try their hand at Hula dancing and lei making, and enter a daily lucky draw for limited-quantity market vouchers. Families of all ages can spend a leisurely afternoon into the evening enjoying live music while browsing the market stalls, experiencing firsthand the distinctive cultural charm and way of life shared by Taiwan’s Indigenous peoples and Hawaii.

The three-day program offered one highlight after another. During the day, the State of Hawaii Office in Taipei brought in the internationally acclaimed Ke Kai O Kahiki, a dance group known for powerful, masculine hula performances, to showcase the depth of Hawaiian culture. Furthermore, the CIP has invited music and dance troupes from Palau and Tuvalu to share the profound bonds of Pacific heritage. As night falls, Golden Melody Award-winning stars took the stage in succession. On July 31, “The Call of Mountains and Sea” kicked off with performances by Usay Kawlu, Utjung Tjakivalid, and Kasiwa; on August 1, “The Night of Island Sounds” brought Princess Ai and Abao back-to-back; and on August 2, “Aloha Night” closed the festival with a grand finale by Biung and Abus, pouring out the soul of the ocean through the most contemporary electronic beats and rhythms.

The CIP and the State of Hawaii Office in Taipei warmly invited people across Taiwan to bring family and friends to the New Taipei City Citizen Plaza this weekend, to enjoy live music, explore the marketplace, and experience firsthand this not-to-be-missed summer party rich in culture.

Photo: Chairperson Ljaucu Zingrur (Tseng Chih-Yung) of the Indigenous Peoples Council delivered opening remarks at the Aloha Taiwan Cultural Festival, expressing the hope that cultural exchanges between Taiwan and Hawaiʻi will deepen Austronesian cultural connections and help preserve the invaluable cultural heritage of Indigenous peoples.

Hashtag: #CouncilofIndigenousPeoples

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The benchmark closed at 61,434.19, down 930.73 points, or 1.49%, after briefly dropping to 60,448.90. The index moved through a range of almost 2,700 points, having reached a session high of 63,138.04 during early trading.

The intraday slide from the high exceeded 1,700 points, reflecting unusually volatile trading rather than a fall of that size from Tuesday’s closing level. The index had ended the previous session at 62,364.92 after losing more than 2,500 points.

Semiconductor companies led the decline as investors questioned whether the vast sums being invested in AI infrastructure would generate returns quickly enough to justify elevated technology valuations. The selling was amplified by weakness in South Korea and Taiwan, whose markets contain some of the world’s largest memory-chip and contract-manufacturing companies.

Asian chipmakers had benefited from expectations that spending on data centres, advanced processors and high-bandwidth memory would continue expanding. Those assumptions are now facing closer scrutiny as capital expenditure rises, borrowing costs remain high and earnings expectations become more difficult to exceed.

The shift was visible in South Korea, where the Kospi suffered another severe fall and chip heavyweights came under sustained pressure. Taiwan’s benchmark also declined as investors sold shares exposed to the global semiconductor supply chain.

Tokyo-listed equipment makers and chip-related companies were caught in the same retreat. Their large influence on the price-weighted Nikkei magnified the index’s movements, leaving the broader market vulnerable to concentrated selling in a small group of expensive stocks.

Investors were also awaiting quarterly results from major US technology companies, including businesses whose spending plans have become central to demand forecasts for advanced chips. Any indication that data-centre expenditure is slowing could deepen concerns about the durability of the AI investment cycle.

The Nikkei’s decline followed a powerful rally that had carried the benchmark above 70,000 earlier in July. Despite the pullback, the index remained substantially higher than a year earlier, showing how quickly valuations had expanded during the AI-driven advance.

Currency movements added another layer of uncertainty. The yen remained near its weakest level against the dollar in about four decades, despite gaining slightly during Wednesday’s trading. A weaker currency generally supports exporters by increasing the yen value of overseas earnings, but an extreme decline raises import costs and complicates monetary policy.

Japan depends heavily on imported energy and raw materials. The yen’s depreciation, combined with higher oil prices, threatens to intensify inflation and squeeze household spending. It has also increased speculation that authorities may intervene in foreign-exchange markets.

Markets are watching for any disruption to the yen carry trade, in which investors borrow cheaply in Japan and direct the funds towards assets offering higher returns elsewhere. A sudden strengthening of the yen can force traders to unwind those positions, producing rapid declines across equities, bonds and currencies.

The Bank of Japan begins a two-day policy meeting on Thursday. Traders are assessing whether persistent currency weakness and rising energy costs could push officials towards tighter policy, even as instability in equity markets increases the risks surrounding another rate move.

Oil prices climbed more than 3% as conflict in the Middle East threatened shipping and energy supplies. Higher crude prices added to inflation concerns ahead of the US Federal Reserve’s policy announcement and reduced investors’ willingness to hold high-valuation growth stocks.

The dollar remained supported near a one-month high as traders considered whether the Federal Reserve could maintain a restrictive policy stance. Higher US yields tend to pressure technology valuations by reducing the present value of expected future earnings.

The Monetary Authority of Singapore said uncertainty over whether companies can sustain vast spending on data centres, advanced chips and computing infrastructure has become a significant risk to the economic outlook. The warning reflects growing scrutiny of whether revenue generated by AI services can justify the scale of capital committed by technology groups.

MAS Managing Director Chia Der Jiun said the global economy should continue to benefit from AI-related expenditure in the near term, but the longer-term impact remains difficult to assess. A sudden reduction in investment could affect manufacturing, trade and financial asset prices, particularly in economies closely linked to electronics supply chains.

The assessment carries particular significance for Singapore, where technology-related production has driven much of the economic expansion this year. The economy grew by about 6 per cent during the first half of 2026, while AI-linked electronics accounted for more than 70 per cent of export growth. Semiconductor production, data-centre equipment and related services have helped offset pressure from trade restrictions, higher energy costs and geopolitical instability.

MAS expects economic activity to remain firm during the second half of the year, supported by technology, construction and financial services. However, it cautioned that tighter global financing conditions or a reversal in AI expenditure could undermine the durability of that growth and ease inflation more rapidly than expected.

The warning comes as the world’s largest technology companies raise spending on processors, servers, power systems and data centres. Capital expenditure by major AI-linked companies is projected to rise by more than 75 per cent to around $700 billion in 2026. Large technology groups are also turning increasingly to debt markets to finance the buildout, strengthening the connection between AI investment, credit conditions and the wider economy.

Fitch Ratings has identified an AI market correction as an emerging global credit risk, citing elevated valuations, concentrated investment and uncertainty over future returns. Amazon and Alphabet are among companies whose combined bond issuance has reached about $182 billion, underlining the growing role of borrowed funds in supporting infrastructure spending.

Supporters of the investment surge argue that generative AI could raise productivity, reduce costs and create new markets comparable to earlier technological transformations. Demand for advanced chips and cloud capacity remains strong, while business investment data continue to show momentum. US orders for core capital goods rose 0.9 per cent in June, and shipments increased 1.9 per cent, their strongest gain in four and a half years, helped by spending on computers and electronic equipment.

Questions persist over how quickly that spending will generate sustainable profits. Data centres require large quantities of electricity, specialised chips and cooling infrastructure, while rapid improvements in computing equipment can shorten replacement cycles. Companies may face pressure to keep investing even before earlier projects achieve their expected returns.

Academic research indicates that the AI boom combines strong technological foundations with pockets of speculative vulnerability. Enterprise adoption, revenue growth and productivity improvements support parts of the valuation expansion, but investment has outpaced monetisation in some segments. Private-market valuations are also concentrated among a limited number of companies, increasing the risk that a reassessment of growth expectations could spread rapidly.

Global equity markets are already showing greater sensitivity to concerns about returns from AI spending. Semiconductor shares have faced selling pressure, while technology indices have retreated from earlier peaks. Investors are closely examining earnings from leading cloud and chip companies for evidence that demand remains strong enough to support infrastructure budgets.

Singapore is vulnerable to such shifts because of its position in global electronics, finance and trade networks. A decline in chip orders could affect factory output and exports, while a fall in technology valuations could weaken investment sentiment and household wealth. Financial institutions could also face losses through corporate lending, bond holdings and market exposure.

MAS has separately highlighted cybersecurity threats arising from AI and quantum-computing advances. AI tools can improve fraud detection and network monitoring, but they can also make phishing, impersonation and hacking attempts more convincing. The authority has established an industry task force to help financial institutions strengthen their defences as technology-driven risks become more sophisticated.

A July poll showed approval for Takaichi’s Cabinet dropping to 57% from 69% in June, as households grew more dissatisfied with rising living costs. Other surveys have also pointed to weakening support, though the level varies considerably among polling organisations.

The decline has placed greater scrutiny on the government’s economic strategy. Takaichi has defended an expansionary programme built around public and private investment in strategic industries, arguing that stronger productivity and economic growth will ultimately restore confidence in the currency.

Market strategists see a growing risk that weaker ratings could push the administration towards measures offering faster political relief. These could include reductions in consumption taxes, expanded subsidies or additional spending aimed at cushioning households from food and energy inflation.

Such steps may prove popular with voters but could unsettle investors unless the government provides a credible funding plan. Japan already carries one of the world’s largest public debt burdens, exceeding twice the size of its economy, while higher interest rates are raising the cost of servicing that debt.

The yen has been trading near 160 to the dollar, increasing the price of imported fuel, food and industrial materials. Its weakness has become a political problem because the benefits to exporters and tourism are being offset by pressure on household purchasing power.

Takaichi has rejected the argument that government policy alone determines exchange rates. She has said stronger investment, competitiveness and economic expansion are essential to rebuilding market trust, while acknowledging that currency movements reflect a range of domestic and international factors.

Investors remain sensitive to any indication that the government could pursue fiscal expansion while discouraging tighter monetary policy. The Bank of Japan raised its benchmark rate to 1% in June, the highest level in more than three decades, and economists expect another increase before the end of 2026 if inflation or yen weakness intensifies.

The central bank is expected to keep rates unchanged at its next policy meeting while signalling that further tightening remains possible. Its challenge is to contain import-driven inflation without weakening an economy facing demographic pressures, soft consumption and a heavy public debt load.

More than four-fifths of economists surveyed this month expect the policy rate to reach 1.25% by December. A rise could support the yen by narrowing the interest-rate gap with the United States, but it would also put upward pressure on government borrowing costs.

Long-dated government bond yields have already climbed to levels not seen for decades. Traders are demanding higher returns as the central bank reduces its dominance of the bond market and investors reassess the sustainability of fiscal policy in an inflationary environment.

Takaichi’s growth blueprint envisages about ¥370 trillion in public and private investment through 2040 across 17 strategic sectors. Artificial intelligence, semiconductors, defence, energy security and advanced manufacturing are among the areas targeted for support.

The government says the programme will raise productivity, reduce vulnerabilities in critical supply chains and lift Japan’s underlying growth rate. Critics argue that its scale and financing remain insufficiently defined, increasing the possibility of additional bond issuance or pressure for higher taxes later.

A proposed temporary suspension of the consumption tax on food has emerged as a particularly sensitive issue. The measure could ease household costs but would also reduce government revenue unless accompanied by spending cuts or alternative funding.

Political pressure is building inside the ruling Liberal Democratic Party as lawmakers consider how to reverse the erosion in public confidence. Speculation about a Cabinet reshuffle has increased, although Takaichi has given no indication that she plans to retreat from her investment-led strategy.

Her political position remains stronger than the approval figures alone suggest. The Liberal Democratic Party secured a commanding majority in the February election, giving the government substantial room to pass legislation. However, falling popularity could make lawmakers less willing to support policies seen as worsening inflation or market instability.

Foreign-exchange traders are watching whether the government steps up verbal warnings or direct intervention to support the yen. Previous interventions have produced only temporary gains when they were not backed by a sustained change in interest-rate expectations or fiscal policy.

Japan’s large pool of domestic savings and the substantial holdings of government debt by local institutions continue to provide stability. The country also possesses sizeable foreign reserves and remains a major external creditor.

Separated by thousands of miles, the two millennia-old port cities reconnected, leveraging their ports as a bond and cultural exchanges as a cohesive force to hold in-depth talks on integrated port-city development and bilateral economic and trade connectivity.

This cross-Indian Ocean dialogue echoes the ancient Maritime Silk Road while charting a brand-new outbound development path. As a pivotal starting port of the ancient Maritime Silk Road, Ningbo is building a new global trade landscape powered by smart manufacturing.

A thousand years ago, merchant vessels from Mingzhou Port set sail southward loaded with Yue Kiln celadon porcelain, passing through Ceylon to deliver Oriental crafts across the Indian Ocean coasts. Precious gemstones and spices traveled the same sea route back to regions south of the Yangtze River, laying the groundwork for the earliest cultural exchange between the two ports through trade. Today, the cargo carried by giant cargo ships has undergone a dramatic transformation. Beyond traditional daily necessities, intelligent equipment, digital home appliances and industrial robots now dominate shipments.

Official statistics show that Ningbo’s exports of intelligent equipment, including mechanical arms and industrial robots, hit 440 million yuan in 2025, surging more than 40% year-on-year. From January to May this year, Ningbo’s exports of mechanical and electrical products maintained steady growth, reaching 247 billion yuan, a 4.1% year-on-year increase and accounting for 58.0% of the city’s total export volume. The new energy foreign trade sector saw explosive growth, with exports of new energy vehicles, lithium batteries, and photovoltaic products jumping 138.4% year-on-year, with electric vehicle exports skyrocketing 215.9%. Smart manufactured goods are continuously expanding the scope of Ningbo’s foreign trade.

Complementing the Colombo forum, an exhibition highlights Ningbo’s outstanding going-global enterprises and their products, vividly illustrating the profound shift in Ningbo’s trade structure.

Alongside time-honored Maritime Silk Road staples such as celadon porcelain and silk, Ningbo’s smart manufactured products—including AI translation glasses, intelligent outdoor gear and digital small home appliances—occupy prominent display spaces across the venue. In Sri Lanka, Ningbo smart water meters are widely adopted nationwide, while handheld cooling fans and intelligent kitchen appliances have entered ordinary households.

Leveraging Colombo Port’s transshipment advantages, massive volumes of Ningbo smart manufactured goods are distributed onward to Europe, the Middle East and beyond. What Ningbo exports today is no longer mere commodities, but a complete outbound solution integrating technology, brand value and after-sales services.

Faced with mounting challenges including homogeneous global market competition and rising trade barriers, Ningbo’s manufacturing sector has abandoned the old model of low-cost OEM production, relying on intelligent transformation to consolidate its competitive edge in overseas markets.

Over more than a decade of digital transformation efforts, Ningbo has achieved full digital upgrading of all industrial enterprises above designated size. A large number of local factories have built unmanned black-light workshops and flexible production lines, escaping vicious price competition through continuous technological iteration. Represented by five specialized, sophisticated, distinctive and innovative enterprises dubbed Ningbo’s “Five Little Tigers”—famous for their core proprietary technologies, including highly sophisticated visual inspection equipment, heat-resistant materials, sun-proof coatings, puncture-proof materials and self-drilling fasteners—these niche manufacturers have developed differentiated technical routes and full-spectrum production capacity, cementing irreplaceable competitiveness for Ningbo smart manufacturing on global markets.

Beyond trade expansion, Ningbo has built a supporting cultural communication system to ensure “products go global, accompanied by local culture”.

The launch of Sri Lanka’s first “One-Meter Cultural Space” cultural station during the Colombo event marks a tangible milestone of Ningbo’s go-global initiative. Built on enterprises’ overseas outlets, these miniature cultural exhibition halls integrate intangible cultural heritage crafts, urban stories and smart products, enabling overseas clients to experience cutting-edge manufacturing while gaining insight into Ningbo’s profound cultural heritage.

During the twin-city story-sharing session, Ningbo entrepreneurs based in Sri Lanka and local designers blending Chinese and Sri Lankan aesthetics shared stories of bilateral exchanges. Economic and trade ties have evolved into a bond for people-to-people communication, bridging divides in cross-cultural trade.

From Tang-dynasty celadon porcelain sailing across the Indian Ocean to intelligent equipment shipping to every corner of the globe, Ningbo, the ancient Maritime Silk Road port, has preserved its enduring gene of openness. Where exchanges once relied purely on commodity trade, today smart manufacturing underpins a stable, diversified and high-value-added global trade network.

The Ningbo-Colombo dialogue stands as a vivid microcosm of this transformation: the port still links lands and seas, yet the core of its trade has undergone a full intelligent upgrade.

Rooted in its historical legacy as a key Maritime Silk Road hub, Ningbo has consolidated its industrial foundation through a decade of digital development, expanded global market reach via worldwide port networks, and softened trade cooperation through cultural exchanges. This brand-new outbound shipping route forged by smart manufacturing has not only reshaped the city’s foreign trade landscape, but also delivered a replicable port-city development model for Chinese manufacturing to go global.

Hashtag: #NingboSmartManufacturing #MaritimeSilkRoad #GlobalTrade

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