Taiwan’s ruling party downplays Pompeo visit after report alleges quid pro quo

Former U.S. Secretary of State Mike Pompeo’s visit to Taiwan from March 2 to March 5 was widely publicized. Billboards welcoming him sprang up in Taipei, with the former secretary meeting with the country’s top leaders, including President Tsai Ing-wen (蔡英文 Cài yīngwén), Vice President Lai Ching-de (赖清德 Lài Qīngdé), and Premier Su Tseng-chang (苏贞昌 Sū Zhēnchāng). During a speech on March 4, Pompeo said that the U.S. should recognize Taiwan as a “free and sovereign country.”

But the atmosphere surrounding Pompeo’s visit changed on March 5 when United Daily News and CNews, two publications whose editorials align with the opposition Chinese Nationalist Party (KMT), published documents revealing that Pompeo had received $150,000 from the Taipei Economic and Cultural Affairs Office (TECRO), Taiwan’s diplomatic office in the U.S., to make the trip. A former diplomat getting paid for a speaking tour isn’t unusual, but the fact that the public didn’t know about this and was led to believe that Pompeo made the trip out of his support for Taiwan is problematic.

There is also the question of exactly what was exchanged for his services. United Daily additionally reported that Pompeo had come to Taiwan as a representative of Anarock Global Partners, an investment fund, to lobby the country’s labor and pension funds and its National Development Fund (NDF). According to reports, Pompeo and Anarock’s Chief Investment Officer Gino Ramadi met with Taiwan’s representative to the U.S., Hsiao Bi-khim (萧美琴 Xiāo Měiqín) last July, setting the stage for the March trip.

National Development Council chief Kung Ming-hsin (龚明鑫 Gōng Míngxīn), who oversees the NDF, said his talks with Pompeo did not include discussions about investment, but were instead focused on global economic conditions. Premier Su said these allegations were “poisonous rumors that are improper and rude to our guest [Pompeo].”

Speaking to the media, KMT legislator Chen Yi-hsin (陈以信 Chén Yǐxìn) said that considering Pompeo’s status in the Republican Party, the use of public funds, and the potential business considerations underlying his trip to Taiwan, there should be greater transparency from the government. But the KMT response overall has been relatively tepid, especially in comparison to previous attacks against the government. Taiwanese politics is complicated. It’s possible that the KMT, which is re-opening a representative office in the U.S., is fearful of creating enemies.

Pompeo has been strongly aligned with the Tsai administration. He consistently pushed to reopen free trade negotiations with Taiwan, oversaw the largest weapon sales to Taiwan in history, and removed the prohibition on U.S. officials visiting Taiwan. As a 2024 Republican Party presidential hopeful, he represents one of Taiwan’s most powerful personal allies. And Taiwan, which is officially recognized by only 13 UN member states, needs all the help it can get on the international stage.

This also isn’t the first time Taiwan has paid an important political figure to support its government’s message. In 2003, the Chen Shui-bian (陈水扁 Chén Shuǐbiǎn) administration paid former U.S. president Bill Clinton $1 million to visit Taiwan to improve ties with the U.S. Democratic Party. In 2010, the Ma Ying-jeou (马英九 Mǎ Yīngjiǔ) administration brought Clinton back to support Ma’s push for more free trade, including with China.

Paying famous speakers isn’t Taiwan’s only method for building international support. According to a report from the Foreign Influence Transparency Initiative, Taiwan’s lobbying activities in Washington are robust. In 2019, Taiwan spent $4.97 million on lobbying activities, had contacts with 476 members of Congress, and spent over $150,000 in campaign contributions. This spending has had an effect. H.R. 1145, a bill that calls on the Secretary of State to push for Taiwan to return to the World Health Organization, can be tied directly to the lobbying efforts of Gephardt Group Government Affairs, Taiwan’s main lobby in Washington.

The problem with Pompeo’s visit is not the money itself. “Lobbying is one thing, but to buy someone using investment opportunities in public funds to bolster yourself is misleading,” said Shih Cheng-feng (施正锋 Shī Zhèngfēng), a professor at National Dong Hwa University.

The Ministry of Foreign Affairs released a statement saying the purpose of Pomeo’s trip was to deepen his understanding of and friendship with Taiwan, and that allegations of a quid pro quo for his support are pure speculation. But the statement also noted that the ministry welcomed foreign persons coming to Taiwan for investment opportunities.

Meanwhile, Prospect Foundation, a think tank connected to Taiwan’s national security establishment, said that it had asked TECRO to assist it in signing an agreement with Pompeo’s representatives because it had no representative office in the U.S. Still, the Prospect Foundation’s top leaders all have deep ties to the ruling Democratic Progressive Party (DPP), leaving questions as to what kind of role the government had in the transaction.

“The prospect foundation is part of the national security establishment, and their funding comes from the state. Can we really say that Tsai and the administration weren’t involved in bringing Pompeo over?” Shih said.

But other factors may have also influenced Pompeo’s visit and his statement in support of the U.S. recognizing Taiwan. Shih believes there are two possibilities. One is internal struggles within the DPP. As Tsai approaches the end of her term, other factions are vying for dominance within the party. Shih says that it could have been the pro-independence Cheng Kuo Hui (正国会 Zhèng Guóhuì) faction that arranged for Pompeo’s statement, with MOFA’s cool reaction as evidence of a divide between the government and the faction.

The other is that the statement and trip were orchestrated by Tsai herself as part of a “good cop, bad cop” routine, with the intention of demonstrating that she is a moderate figure who is indispensable for maintaining Taiwan’s stability. Pompeo’s statement fueled debate over independence, leaving space for Tsai, far from an independence hardliner, to come in and show herself to be the most reasonable option to both the American and Taiwanese public.

With the government and DPP-aligned media now downplaying his trip, it seems to not be as successful as they had hoped. “They seem embarrassed,” Shih said.