“In the future, the government will establish a fund to boost Taiwan’s economic development momentum,” Lai said in a speech in Taipei on Tuesday that marked his first full year in office. 

He added that the platform would be “fully utilizing Taiwan’s industrial advantages, with the government taking the lead and cooperating with the power of private enterprises to deploy globally and connect the main target markets.” He didn’t provide more details.

Lai added that trade talks with the U.S. “are still ongoing and progressing smoothly.” That comment that comes after the Trump administration last month hit Taiwan with a 32% duty on its exports, later pausing it for 90 days as officials try to negotiate a deal.

Lai is the first Taiwan president to call publicly for a sovereign fund that invests in overseas markets—something many other Asian governments have—though officials in previous administrations in Taipei have suggested the idea. The plans for a fund dovetail with the government’s strategy to expand links with other nations, especially democracies, adding friends that can help counter China’s aggression.

Beijing views Taiwan as a breakaway province that needs to be brought under its control eventually, by force if necessary, and has maintained a high level of military pressure on Lai since he took office. In an interview aired Monday by Nippon Television, Lai called on Japan, the US and other democracies to work together to prevent Beijing from starting a war.

Lai said in his speech that he is willing to cooperate with China under the principle of equality and dignity. Beijing is unlikely to take Lai up on that because it views him as a devoted separatist.

Taiwan’s central bank has long been skeptical about creating a sovereign wealth fund that that gets funding directly from the monetary authority. Earlier this month, it said that a special law should be enacted and an independent agency created to manage any fund.

It pointed to neighboring Asian countries that get money from through bond issuance, appropriations, or capital contributions by their finance ministries.

If Taiwan went that route, it could have its central bank deploy its foreign-exchange reserves in some way, something China and South Korea have done. Taipei has a forex pile of some $582.8 billion. Lai didn’t go into specifics on his plans for a fund, including where the money would come from.

Central bank governor Yang Chin-long has said he would not give up any of the institution’s reserves for free but would be willing to loan them. He said people calling for such a fund should figure out a different way to fund it, rather than taking capital from the central bank.

The benchmark Taiex stock gauge was up 0.1% as of 1:16 p.m. on Tuesday, and the Taiwan dollar rose nearly 0.1% to 30.19 versus the greenback.

C.Y. Huang, founding chairman of the Taiwan M&A & Private Equity Council, said he has long supported the idea of a sovereign wealth fund. He said that one reason Lai may be raising the idea now was that President Donald Trump recently did the same, and that any US investment vehicle could focus on high-tech targets, potentially even Taiwan Semiconductor Manufacturing Co., the archipelago’s biggest company.

Trump has said an American fund could be backed by monetizing vast government assets and used to back strategic projects in areas like critical minerals or take stakes in companies like TikTok. The idea has been made a lower priority after running into legal, financial and political realities.

Huang also said that one challenge Taiwan faces in setting up the fund “is Taiwan lacks international investment talent, and for these kinds of strategic global investments, it would be best to establish an international advisory committee.”