Hsu Chiao-hsin Questions Drone Contractor Ties and Demands Oversight for Special Defense Budget

KMT Legislator Hsu Chiao-hsin is calling for a fundamental shift in how defense procurement is funded, arguing that special ordinances should be replaced by general annual budgets to ensure stricter oversight. This demand follows the legislature’s passage of a special ordinance on the 8th, which established a budget ceiling of 780 billion TWD for national security and asymmetric warfare capabilities.

Concerns Over Drone Procurement and Political Ties

Hsu expressed specific concerns regarding the awarding of contracts to politically connected firms, citing the example of military drone manufacturer Carbon Base Technology. She highlighted that the company’s chairman, Chen Wen-hong, previously served as the head of the Hsinchu County “Friends of Xiao Ying” association and as the DPP Hsinchu County Party Chapter chief in 2005.

Hsu noted that Chen was sought by prosecutors for a sentence of two years and six months in 2005 due to allegations of vote-buying and bribery before transitioning from politics to the green energy and drone sectors. She argued that returning procurement to the general budget would allow legislators to scrutinize a company’s capital, legitimacy, and actual combat experience through open bidding.

Did You Know? A village chief in Keelung was once detained for 23 days under the Anti-Infiltration Act and the Presidential and Vice Presidential Election and Recall Act for leading a tour to China; although later found innocent, the individual received only 92,000 TWD in compensation.

Geopolitical Pressures and Arms Sales

The discussion also touched upon international relations following comments from U.S. President Donald Trump. After leaving China, Trump stated that he does not wish to see independence and described arms purchases as “excellent bargaining chips,” a sentiment that has caused division within Taiwanese society.

Hsu suggested that Trump’s shift in attitude aligns with previous KMT predictions. She further criticized DPP Chairman Lai Ching-te’s assertions regarding the status quo, suggesting that Lai’s framing may be interpreted by Trump as a pursuit of independence, which could potentially hinder arms procurement.

Expert Insight: The tension described here reflects a broader strategic struggle over transparency. By pushing for general annual budgets over special ordinances, opposition lawmakers are attempting to move from broad “ceiling” approvals to line-item vetoes, which significantly increases their leverage over specific contractors and political appointees.

Internal KMT Friction and Local Election Dynamics

Addressing internal party disputes, Hsu characterized the public friction between KMT Chairman Cheng Li-wen and former China Broadcasting Network Chairman Zhao Shaokang as a “clash of temperaments” rather than a “clash of routes.” She urged Cheng to be inclusive of different voices and suggested that the party focus on integration ahead of the 2026 elections.

Regarding the Taipei mayoral race, Hsu criticized DPP nominee Shen Po-yang for his treatment of village chiefs. She argued that treating grassroots leaders as “high-risk groups” for surveillance regarding travel to China violates the principle of proportionality and could increase resentment among the base.

Frequently Asked Questions

What is the budget ceiling for the recently passed special ordinance?
The budget ceiling for the “Special Ordinance for Procurement of National Security and Strengthening Asymmetric Warfare Capability” is 780 billion TWD.

Frequently Asked Questions
Carbon Base Technology

Why does Hsu Chiao-hsin oppose the use of special ordinances for drone procurement?
She believes special ordinances avoid the detailed, line-by-line supervision possible under annual budgets, which she argues could allow politically connected “green friends” to obtain contracts without sufficient scrutiny of their qualifications or experience.

What was the legal history of Carbon Base Technology’s chairman mentioned by Hsu?
Chairman Chen Wen-hong, a former DPP Hsinchu County Party Chapter chief, was sought by prosecutors for a sentence of two years and six months in 2005 for suspected vote-buying and bribery.

Should national security procurement be managed through flexible special ordinances or strict annual budget reviews?

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