Vermont Legislature SmartTranscripts:

[Michael Marcotte (Chair)]: Good afternoon, everyone. This is the Vermont House Committee on Commerce and Economic Development. It is Tuesday, 02/10/2026 at 01:20 in the afternoon. So this afternoon, we have the honor of having director general Boutin from Boston office of the Taipei Economic Constitutional office. Office in Boston. Every year, we've been have the privilege of having you or someone from your office come and chat with us about the economic ties between Vermont and and Taiwan and, of course, our friendship as well. And so we're pleased to have you join us this afternoon. Thank you, and we look forward to having a discussion with you.

[Director General (Taipei Economic and Cultural Office, Boston)]: Thank you. You. Yeah. The chair, and the vice chair, Granny, and all the distinguished members, good afternoon. Yeah. It is truly my great honor to be here again. This is today's trip, it's my seventh trip back to Vermont and every time I enjoy a lot, know, so thank you so much and today I would like to give you a little, you know, briefing about Taiwan US economic relationship and also maybe touch upon the Taiwan, Vermont economic relations, trade relations, of course. So I believe you are aware that Taiwan and The US, we have enjoyed very strong, very robust relationship in terms of trade economy or our educational people to its people to people to its people is changed. But especially recently, you know, we see that our trade relations has growing significantly in the past few years. 2024, Taiwan was the seventh largest trading partner of The US, and then The US was the second largest trading partner of Taiwan. But, you know, last year, we did better. You know, last year, I know the the number right now, I don't have the exact total number right now, but from last January to last November I saw the numbers that the trade between two sides is surging around 35% so I believe that last year 2025 will have hit another record high in terms of the trade between our two sides. And also in the educational front, we see that our students, Taiwanese students come to The US, the total number increased last year, although the whole number of the international students come to The US decreased, but you know, tonnage students, have more students come to The US. Yeah last year we had around 25,000 students come to The US. In New England area roughly, we have 1,500 to 2,000, around that number, but most of them you know study in Boston area in Massachusetts.

[Michael Marcotte (Chair)]: Do you have any more students in Norwich University?

[Director General (Taipei Economic and Cultural Office, Boston)]: Norwich are still the same every year we send seven to 10 students to Norwich, but we do see some new students come to to New England area because of the scholarship. Yeah, also vice versa yeah because I know because last year we conducted another round of high ranking meetings between Taiwan and The US, so we started to increase the scholarship for the students on two sides. So we see that number will increase in the near future also. So in terms of Vermont, last year I remember I was here and I told you that last year we were the number two trading partner, export market for Vermont globally, so I wish we can become number one but I don't know the number yet but you know as I mentioned the overall picture Taiwan US our trade you know surging 35% so I believe that Taiwan and Vermont our trade has also increased due to the whole you know environment because the major products we buy from Vermont is computer and electronic products, especially from the Global Foundry and some other high-tech company. So based on that assumption, I believe that our trade will increase. So and also the purpose of our visit this time is you know we try to see any opportunities, how can we strengthen that kind of very robust friendship into another level. So we think about maybe you can find any ways including like have your administration can have a dedication to visit Taiwan or even set up a trade office in Taiwan or you can have someone represent Vermont in Taiwan to promote Vermont. That would be a good you know trend for us to further deepen our trade relations. Yeah because now in past two years we see that there is a growing trend for the foreign investment come to The US, especially from a Taiwanese company. So we believe that this is a golden opportunity for Vermont to promote that kind of relationship between the two sides. But I also understand that you know some other states in The US they are very aggressive and they're very creative trying to promote themselves But because my office covered only five states in New England, I hope that we can work together to bring some Chinese companies or new investment into your state. That's the purpose of my visit today. And lastly, want to thank all of you for passing the resolution to support Taiwan in the past few years. I know they may look like words on paper, but for us it means a lot, especially during a time that we are facing you know increasingly straight from the other side of Taiwan Strait, so your support gives us more confidence when we are dealing with an authoritarian regime. So on behalf of the government and people of Taiwan, I just want to say thank you again for your friendship and your support. Thank you, then I will let Jennifer to give you more detail.

[Jennifer (Taipei Economic and Cultural Office, Boston)]: Thank you, Director General and Chair Marcotte, Vice Chair of Benning and the whole Cloud Commerce Committee. I'm very pleased too. First and foremost, I would like to express my sincere gratitude and appreciation. It's been freezing cold and right now together today, we have the opportunity together to explore the possibility of reopening a Vermont State office in Taiwan. Opening Vermont State office in Taiwan wouldn't have been new territory for the state. Vermont had an office there in Taiwan from 2000 to 2010. The results speak for themselves. In 2000, Vermont export to Taiwan totaled 93,000,000 US dollars. Just four years later, the figure has surged to 511,000,000 USD. That was nearly a six fold increase. The office was automatically closed not because it fell, but because of budget budget pressure as well as priority shift after two thousand and eight financial crisis. We are here today because we want to show you the scouting report has changed. It's a new ballgame. And here, we have to indicate three things. First, it's about cost and the global environment. Second, it's about momentum. Third, about new investment. To begin to begin with, course is no longer a barrier. Do you have any wide idea about how much does it cost to have a local office in Taiwan? For just 75,000 USD per annually, 75,000 USD annually, you can run a fund you can run a function in local office in Taiwan. That figure covers rent, which is 125 US dollar US dollars, because my government subsidized 75% of that and also another 1,000 per month for professional staff there. This is a packaging solution as well as key threshold and exhibition throughout the year. But more importantly, the global environment has already changed. The supply chain today cares about resilience, security, trusted partner, rather than just cost. Taiwan sits at the heart of advanced manufacturing and semiconductor sector that United States consider critical. And Vermont, what strengths Vermont does have? Beside education, you have life science, you have aerospace, you have green energy, you have semiconductor. The industries from the two sides should be able to align together. And second, I'll talk about momentum. The momentum is already there. Since 2018, eight years after the office closed, Taiwan has been Vermont's second largest export market for seven consecutive years. So that's a winning streak that speak for itself. And third, I will talk about new investment. Starting from 2026, Taiwan government about to invest $250,000,000,000 US dollars in building new production facilities and industrial park in The United States focusing on semiconductor, AI industries, as well as green energy. My government will also provide another $250,000,000,000 for Us credit guarantee for enterprises, small and medium enterprise, established firms that are firm. If they want to expand their footprints in The United States, the $250,000,000,000 will go to them. So I will take a concrete example about TSMC. But before I proceed, I would like to know if you have any questions.

[Director General (Taipei Economic and Cultural Office, Boston)]: Questions for Jennifer? Just a small small correction. That that 250,000,000,000 US dollar investment is from our companies, not from the government. Yeah. That's from our tech companies. Yeah. That's their commitment.

[Michael Boutin (Member)]: Can you go over

[Michael Marcotte (Chair)]: the cost figures again for opening the campus?

[Jennifer (Taipei Economic and Cultural Office, Boston)]: Okay. The 75,000 US dollars, The lowest price is 75,000 USD. All right, so I would like to take TSMC, for example. All of you know that TSMC already committed $165,000,000,000 building new ecosystem in The United States, which constitute six web of webs to advanced packaging facilities, one research phase to meet the demand of surgeon AI need. But that's just TSMC. Hundreds of companies in the semiconductor supply chain are going to follow downstream and upstream. So, the rich firms and industrial leader like Foxconn, micro start like Foxconn, Inventech, Windstorm, Pegatron. They were a media tech. They are expected to follow. They want to build the industry here and there. And I think Vermont needs to be at the table. Vermont needs to have a say instead of watching people talking about investment. And if you don't just look at Vermont, you look at other states right now. Just if you look at other states in The United States, in 2020, we only have six state office in Taiwan, just six. But after that, since then, the momentum keep on accelerating. Each year we get three to five state offices open in Taiwan. In 2024 alone, we have New York, New Jersey, Michigan, Texas, Indiana open offices in Taiwan. In 2025, we have Oklahoma, Tennessee, and Iowa open office there. So just in past three years, we can have all trade office in Taiwan. If you just look at the map, Vermont is very small, but it has its its location is strategic. If you from Burlington International Airport, you can go to New York, Boston, Montreal in no time. It offer big city assets without big city price tag. And also you may challenge me that Vermont has no industrial cluster. And I have to partially agree, although Vermont has no industrial cluster here, like no massive industrial cluster like Arizona or Texas, but you do have strong ties with Taiwan, like OnLogic. OnLogic as a company manufacture industrial computer here, but it rely heavily on the components engineering and supply chain support from Taiwan. And you also know that TSMC, last year, November, TSMC just signed a gallium nitride licensing agreement with Global Fundries to speed up next generation semiconductor development. So all of this make us think we need to enhance the partnership between Vermont and Taiwan.

[Michael Marcotte (Chair)]: I have another question from Representative Cooper.

[Jonathan Cooper (Member)]: Hello. I am attending remotely today, it's nice to see

[Director General (Taipei Economic and Cultural Office, Boston)]: you both, and thank you

[Jonathan Cooper (Member)]: for being here today. My question pertains to other industries where Vermont is a leader or Vermont businesses are leaders in advanced plastics manufacturing, in medical device manufacturing. And my interest is in Taiwan's appetite outside of the semiconductor industry for expanding the shoulders of the partnership that we're discussing today. Thank you.

[Director General (Taipei Economic and Cultural Office, Boston)]: Yeah, know, besides, yeah, thank you for the question, know, actually yeah, we are exploring that any kind of cooperation between different industries. Of course, you know, currently we see that in Vermont, you already have a lot of kind of high-tech ecosystem, a growing ecosystem here, like Jennifer just mentioned, Global Foundry and new Also, you know, Taiwan, you know, we are focused on the biotech and also green energy industry right now. It's also two of our priorities for the government and I believe like also in these two areas we can see that potential for two sides to work together along those two sides yeah I know you know in Vermont maybe you know every state have their own strengths Here US trends I believe like she mentioned you know strategic location also you have the foundation for the high-tech ecosystem here you already have a lot which other state they don't have. So I believe that we can base your own strengths and own industry right now. We can think about the way to explore that kind of partnership. Thank you.

[Jennifer (Taipei Economic and Cultural Office, Boston)]: And I would like to emphasize the importance of local presence in Taiwan. Right now, 50 states in The United States, they are competing for investment. So where were those investment go? If I were an ambassador in Taiwan, I would naturally go to The States which has a local presence in Taiwan, because once I have questions, I have problem, can directly make a phone call to understand what should I do next at next state. I don't understand the tax incentives in Vermont. I don't I don't understand the regulatory landscape of Vermont. Why should I invest in Vermont? That's, there's a lot of crisis if I don't, if I'm not familiar with that, and I need a local guidance to that. So that's why we cannot emphasize the importance of local presence more. Some people challenging me, say that you can, that for the New England area, you shall have an office together, like in New Hampshire, Vermont, Massachusetts, regional trade office. But I'll tell you, time does not wait for people. Starting from this year and next year, Taiwanese government, they want to invest 250,000,000,000 US dollar into The United States, another 250,000,000,000 US dollar for financial support. When will they make the decision? Right now, they don't make decision after two years or just after one year. They make a decision right now. And if Ramon do not have a presence in Taiwan, the investment conversation will naturally go to the big state like Arizona and Texas. And also, if you want to form a regional trade investment office, that takes long time, Like leadership, leadership decisions, legislative timeline, staffing, everything takes time. And the only thing you do not have is time. So that's my takeaway about regional trade office Vermont and individual state office. I do not say regional state office is not good. I say if we have a Vermont individual state office, we can have immediate achievement. And after we have the immediate achievement, we can consider about the regional platform. And I'm not speculate about the achievement Vermont can achieve because just like what I said before, Vermont once had an office there, and just in four years, the result was six fold increase, the figure, six fold increase. So I have no doubt that if Vermont had an office, again, it can achieve something better to attract more investment. And once you have more investment into your state, you will create jobs, you will increase wages, you actually increase your tax base so that when you generate more revenue, you those money can go to education, health, and anything you care about. So right now, if we just talk about how to allocate Vermont's budget, it's dividing the pipe mindset. And sometimes you end up robber Peter to pay pope. But if you think about attracting new investment into The States, it's a growing the pipe mindset because you attract outside money into fund yourself. And so my direct general and I, the most important trip's purpose for of the for our trips is to explore this possibility. I know it take times, but so first, we can think about have economic and investment trade MOU first, and then that maybe take a couple of weeks, and then we go to push for the execution a Vermont state office. Yeah. And right now I think we need your help because there's a problem about legal authority. I know there's a legal authority before, it's among title 10 chapter four, World Trade Office Affair, and that was repealed in 2009. So we need a legal authority, and then we need the agency of commerce to work with us and also the legislature to work with us to make this happen.

[Michael Boutin (Member)]: Is there I mean, are there states in the North Beach by the North East in time?

[Director General (Taipei Economic and Cultural Office, Boston)]: In New England, no, none of them. Although we already have 25 states set up their office in town, but none of them in New England. That's why a lot of pressure. That's doing a good job, let's say. Very good.

[Michael Boutin (Member)]: Very good. And are there any issues around state and federal authority? We have an interest based federal and state kind of relationship just baked into our constitution. So are there any issues in terms of getting permission from the federal government to do something?

[Director General (Taipei Economic and Cultural Office, Boston)]: Not at all. Actually, the federal government, they are very encouraging. All the states to deepen their educational trade economic ties with Taiwan. I know every year they have joined later from state department and the department of education and also department of agriculture. They send a joint letter to the 50 governors to encourage, you know, every state to increase their engagement with Taiwan. I believe the governor feels good he receives that later yeah every year but following you know Jennifer here you know her presentation I would suggest that maybe you know the first step we can do is that we can encourage the officials from your department of commerce they can you know visit Taiwan to exchange with their counterpart in Taiwan and to understand to see the first hand environment in Taiwan and I believe they will have a clear picture of what they can do. Maybe that will be the first step I recommend. Because I understand budget is always the question, especially during a time now, federal funding has been part for almost every state. So I can totally understand that will be a difficult time to allocate you know another budget for setting up an office overseas. So maybe I think a lot of new officials from the Department of Commerce, they can do some know some evaluation first to see if there's any way if like in a short term we cannot set up an office maybe they can like a partnership with any other existing you know trade office from other state you know you can share like I know some states they share office or they share representatives yeah but it's just maybe another option.

[Michael Marcotte (Chair)]: Questions for Jennifer?

[Monique Priestley (Clerk)]: If I remember correctly, Taiwanese government subsidy for these trade offices is limited. Is it Yes, time right. So it's for how, two years, one year, and then the cost changes? How does that work?

[Jennifer (Taipei Economic and Cultural Office, Boston)]: It's a fixed subsidy. So for the first two years, I subsidized for 75%. And after the two years, starting from the third year, I think it's 60%. And then the or first five years is 50%. But it decreases gradually, but that doesn't matter because think about what you can get from this representative office. If this trade office can attract a lot of investment, we add more jobs into Vermont, that benefit totally cover the cost that might incur.

[Director General (Taipei Economic and Cultural Office, Boston)]: Yeah, think the main idea is that how can we send a signal from Vermont to Chinese business community. Here in Vermont, we welcome all the you know business come to our state and what do we have here what kind of incentive or what kind of strength we have here then they can think about you know the future opportunities otherwise maybe they don't they never heard about Vermont why I should go there right but like I mentioned you do you have good universities here and you have existing you know eco high-tech ecosystem already some good companies here yeah so I see that the potential is there. But first, believe you have to send a signal and to promote your own state here.

[Monique Priestley (Clerk)]: And we are working on a GAN tech hub through the University of Vermont, partnered with Global Pathways, so that is in development right now, which is another factor in bringing rights.

[Michael Marcotte (Chair)]: Jonathan?

[Jonathan Cooper (Member)]: Thanks much. Did I understand, Jennifer, the figure that I heard was $75,000 when you spoke earlier?

[Jennifer (Taipei Economic and Cultural Office, Boston)]: Yeah. Correct. 75,000 US dollar. Annual. Yes. Annual. Yes.

[Jonathan Cooper (Member)]: Is that reflecting I might be mixing up some things here. Is that reflecting the 75% subsidy that steps down that you're referring to?

[Jennifer (Taipei Economic and Cultural Office, Boston)]: The 75% subsidy is for the rent for the office rent.

[Jonathan Cooper (Member)]: Oh, okay. Thank you very much.

[Michael Boutin (Member)]: Yep.

[Michael Marcotte (Chair)]: Questions? Director General Jennifer, thank you for joining us today. We certainly appreciate. It's an honor to have you in our committee and talking with us about our ties and how we can strengthen those ties. Think at 02:00, we have secretary Kerley from the agency of commerce will be with us. We can mention the discussion that we had with you. Thinking about an office back into Taipei, we used to have. I think we can certainly have a discussion with the Vermont Chamber of Commerce as well. Maybe there could be a partnership that is built between the state and the Chamber of Commerce. We thank you for bringing that to us, certainly appreciate having you with us today. Michael,

[Michael Boutin (Member)]: can you send this to us, the presentation?

[Jennifer (Taipei Economic and Cultural Office, Boston)]: Oh, you mean the file?

[Director General (Taipei Economic and Cultural Office, Boston)]: Yeah.

[Jennifer (Taipei Economic and Cultural Office, Boston)]: Of course. Definitely. Thank you. So who should I send to?

[Monique Priestley (Clerk)]: If you send it to me, I'll send

[Jennifer (Taipei Economic and Cultural Office, Boston)]: it to you. All right. Okay, I'll do that after we go back to Boston.

[Michael Boutin (Member)]: Okay? Okay, thank you.

[Director General (Taipei Economic and Cultural Office, Boston)]: And once again, Chair and everyone, thank you for the opportunity here today. We do appreciate that and will, you know, my office, we will try our best to promote the bilateral relations between two sides. Thank you. Thank

[Michael Marcotte (Chair)]: you very much. I think we can go off live, and we'll be back at 02:00 for the agency of commerce discussion budget discussion.