This is a domestic Taiwan political story, neutral for markets but relevant for cross-strait tensions watchers.

• KMT chair Cheng Li-wen said the party founded the Republic of China and still carries the duty to defend its democracy, freedom, and rule of law, especially with elections coming up in November and 2028.
• She pushed back on a Mainland Affairs Council deputy's comment that Taiwan independence was never an option, questioning whether that reflects the ruling DPP's real stance.
• Cheng framed the KMT as the force that can prevent what she called the DPP's internal infighting and preserve cross-strait peace.
• The remarks came at a ceremony marking the anniversary of Taiwan's retrocession and the end of the war against Japan.

Outlook: Expect this rhetoric to sharpen as Taiwan heads toward the November 28 local elections and positioning for the 2028 presidential race.