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Supporters of Lai Ching-te, Taiwan's vice president and the ruling Democratic Progressive Party's presidential candidate attend, a campaign event in New Taipei City, Taiwan, on Jan. 6, 2024.
Taiwan holds first big election of 2024
The world will be watching when Taiwanese voters head to the polls on Jan. 13 to choose their next president. The first in a series of elections with global ramifications in 2024, Taiwan’s vote will be a flashpoint in the tense US-China relationship. China regards Taiwan as a breakaway territory and has vowed to unify with it, by force if necessary. Taiwan has the backing of the US, which would feel pressured to come to the island’s defense in the event of a conflict with China.
The election is shaping up into a close contest between the independence-leaning candidate William Lai Ching-te of the ruling Democratic Progressive Party, or DPP, and Hou You-ih of the Kuomintang, aka KMT, who favors closer relations with China.
We asked Eurasia Group expert Ava Shen what to watch for.
What is the state of play of the race?
The DPP’s Lai remains the front-runner and has held a consistent lead in this election cycle, but his lead has been narrowing. According to the latest polling data available from Jan. 1-2, he is about five points ahead of the KMT’s Hou, who started gaining ground in late November. Winning the party’s official nomination, with Jaw Shaw-kong chosen as his running mate, has helped Hou consolidate the support of the KMT base. The end to efforts to broker a presidential joint ticket with Ko Wen-je of the Taiwan People’s Party, or TPP, has also helped.
This momentum gives the KMT a lot of confidence in its ability to mobilize a last-minute surge in support, possibly thanks to strategic voting by TPP supporters who don’t want another DPP administration. Lai remains favored to win, but it’s going to be close. It’s also noteworthy that Lai, if he wins, would probably do so with less than 50% of the vote. That marks a shift from the elections of 2016 and 2020 when current President Tsai Ing-wen comfortably cleared that threshold.
What would a Lai victory mean for relations with China?
Beijing would probably have an immediate negative reaction. It has signaled multiple times that it is deeply wary of Lai, who has a history of comments in favor of full independence for Taiwan, a red line for China. It would respond in two ways. First, it would probably reduce the number of Taiwanese products that are subject to preferential tariff rates under the Economic Cooperation Framework Agreement, the cross-strait trade agreement signed in 2010. In a warning shot to Taiwan’s voters, it excluded 12 Taiwanese products from the agreement in mid-December.
Second, China would likely intensify what it has already been doing in the military sphere. If Beijing judges any of Lai’s post-election remarks to be provocative, it will consider flying larger numbers of fighter jets over the Taiwan Strait, deploying more coast guard or naval vessels, and possibly moving those military assets closer to Taiwan’s main island. It could enter for the first time Taiwan’s 24-nautical-mile contiguous zone.
But Lai has moderated his rhetoric recently, hasn’t he?
Yes. He has indicated on the campaign trail that he would maintain the status quo and continue the approach that Tsai has taken to cross-strait relations. Still, from Beijing’s perspective, this is not enough. It does not like Tsai’s cross-strait policies but believes she has exercised restraint in managing tensions. It views Lai as more reckless.
Nonetheless, as I said, Lai is not likely to win by a large margin, and his party will probably lose its majority in the legislature. This is important to Beijing because it sends a signal that the DPP doesn’t have complete control over the island’s politics and that not everyone supports independence. That gives Beijing some hope that the idea of unification is not dead.
So, we think tensions are likely to rise in the event of a Lai victory, but it won’t be a catastrophic situation.
And what would a Hou victory mean for cross-strait relations?
If Hou wins, there is less of a risk of Beijing increasing the pressure against Taipei in the short term. However, there is a risk it will resume aggressive tactics over the long term if Hou doesn’t agree to upgrade cross-strait ties economically and politically. China wants to move toward more regular contact between government officials on both sides and take steps toward unification.
Hou has said he wants to start with more cultural and economic engagement, and if things go well, gradually progress to more political exchange, something that Taiwanese society broadly opposes. So, he's saying he wants to put off the political engagement that Beijing is seeking, and the question is, how long is Beijing going to patiently wait?
What’s at stake for the US in this election?
The US’s official stance is that it has no preferred candidate, and I think it has been consistent in maintaining this approach even in private interactions with Taiwan counterparts. The bilateral relationship is robust, and all three of the main Taiwanese parties are committed to close US ties.
That said, President Joe Biden’s administration likely recognizes that a Lai victory has the potential to jeopardize the recent stabilization of the fraught US-China relationship if it provokes an aggressive Chinese response, putting the US under pressure to offer a gesture of support. As Eurasia Group noted in its Top Risks 2024 report, Lai is one of a handful of “dangerous friends,” a group of friendly world leaders who may draw the US into expanded conflicts this year.
Edited by Jonathan House, Senior Editor at Eurasia Group
Eric Chu, Taiwan’s main opposition Kuomintang (KMT) chairman, Hou Yu-ih, KMT presidential candidate, Ma Ying-jeou, former Taiwan president and Ke Wen-je, presidential candidate from the Taiwan People’s Party (TPP) pose after thier meeting on November 15, 2023.
Will Taiwan’s opposition unity ticket remain united?
The two main Taiwanese opposition parties are deadlocked over how to interpret the polls that will determine which of their preferred presidential candidates squares up against incumbent party candidate William Lai in January. If they don’t reach an agreement by Wednesday — it’s looking unlikely — Lai’s probable victory will likely raise tensions across the Taiwan Strait and pose problems for the US-China relationship.
Last week, the Kuomintang Party, backing Hou Yu-ih, and the Taiwan People’s Party, backing Ko Wen-je, announced an agreement by which one of the two men would bow out based on the results of public and internal polling. Doing so would prevent splitting the opposition vote and put Lai under serious pressure. However, by Sunday, each side was squabbling about which specific polls merited inclusion and how to measure the margin of error.
There’s still a chance they can smooth it out, but they’ll need to act fast, says Eurasia Group Taiwan expert Ava Shen. The candidates need to be registered by Friday to be on the ballot come January.
Should they fail, Lai’s chances of winning remain high, much to the chagrin of officials in Beijing who would prefer the more dovish cross-strait policies of either Hou or Ko. Lai’s recent announcement that Hsiao Bi-khim, Taiwan’s former representative to the US, will be his running mate has done nothing to alleviate Beijing’s concerns. Hsiao was deeply involved in organizing former House Speaker Nancy Pelosi’s visit last year, which infuriated China and caused a major rupture in US ties.
“[Hsiao’s] nomination has further convinced Beijing that this is not a government that Beijing could work with if they come to power,” said Shen. “And, in turn, Beijing would perceive more utility in cranking up the pressure on Taiwan through military means and through economic coercion measures.”
The Eastern Theatre Command of the People\'s Liberation Army (PLA) released photo of exercises involving missile strikes, warplanes, and ship movements crossing the midline of the Taiwan Strait
China raises the stakes further in the Taiwan Strait
Last week was a busy one for naval traffic in the Taiwan Strait, as the U.S. and Canada sailed warships through as a reminder to China, and the world, that Taiwan’s partners will ensure that the waterway remains freely navigable.
This week, China responded with its own traffic.
Between Sunday and Monday, China flew over 100 warplanes towards Taiwan, with 40 of them crossing the midway point between the two, the “median line.” While Chinese flights like this aren’t uncommon, the number of planes set a record. That’s a sign Beijing may be stepping up activity in response to perceived aggression from the U.S. (and Canada).
The latest tit-for-tats over Taiwan come as Canada and the US seem to be pulling in slightly different directions when it comes to China. The Biden administration has lately been looking to stabilize relations with its chief rival, while Trudeau’s government is launching an inquiry into foreign political interference that spotlights Beijing.
Soldier miniatures are seen in front of displayed Chinese and Taiwanese flags.
US vs. China in Taiwan
The US and China may not be in a Cold War — but they could end up fighting a hot war over Taiwan.
For many, the question is not if but when Xi Jinping will decide to invade the self-ruled island. Maybe 2025, especially if a pro-independence candidate wins Taiwan's presidential election next year and the US president is distracted by messy domestic politics. Another option is 2027, when Xi has told the Chinese military to be ready to attack. Or perhaps he will just kick the can down the road until his final deadline, 2049, when the People’s Republic turns 100.
Regardless, annexing Taiwan by force would be a huge gamble for China.
For one thing, Xi knows that no matter how much China boosts defense spending, its military has not been tested in combat since 1979, when it — checks notes — lost a border war with Vietnam. For another, China's leader is probably having second thoughts after the Western response to Russia's war in Ukraine.
What's more, the US is treaty-bound, under the 1979 Taiwan Relations Act, to help Taiwan defend itself. (Not defend Taiwan, whatever President Biden says.) But getting weapons to Taiwan under China's nose will risk direct conflict with US forces, potentially triggering World War III.
Finally, if you think the war in Ukraine did a number on the global economy, a US-China fight over Taiwan would be much worse. The island is a chipmaking superpower, and the potential hit to global supply chains is uncharted territory.Paraguayan presidential candidate Efrain Alegre waves a flag during a campaign rally in Fernando de la Mora.
Paraguay holds presidential election with geopolitical ripples
Paraguayans go to the polls Sunday to pick their next president. Domestically, the big story is whether centrist opposition leader Efraín Alegre can beat Santiago Peña from the right-wing Colorado Party, which has almost monopolized power since the country ditched military rule in 1989. But there are also two geopolitical angles to keep an eye on.
First, the election is being closely watched in Taipei and Beijing. If he wins, Alegre has suggested he might switch diplomatic relations from Taiwan to China — meaning that the self-ruled island would lose its last friend in South America. The presidential candidate believes that Taiwan has not invested enough in Paraguay to offset the immense cost of not doing business with China, so he's made it clear to Tsai Ing-wen: Show us the money or we'll call Xi Jinping.
Second, the next president will have to start talks with neighbor Brazil on how to divvy up electricity generated by the Itaipú hydroelectric dam, the world's second most powerful. Though the two countries co-own the dam, Brazil gets a lot more electricity because it forked out more money upfront. Paraguay — which only consumes 8% of its electricity — would like a bigger share in order to sell power on the open market, a potential windfall of extra revenue for the government.Russian reservists recruited during a partial mobilization of troops attend a ceremony before departing to the Russia-Ukraine conflict zone, in the Rostov region, Russia October 31, 2022.
What We're Watching: Russian draft goes online, abortion pill ruling, US inflation slows, Taiwan gets new presidential candidate, Biden bets big on EVs
Russia’s digital draft
If you’re a young male citizen of Russia, it just got harder for you to hide from the war in Ukraine. The State Duma, Russia’s parliament, approved legislation on Tuesday that allows the government to send a military summons online instead of serving the papers in person. The upper house swiftly passed it into law on Wednesday.
“The summons is considered received from the moment it is placed in the personal account of a person liable for military service,” explains the chairman of the Duma’s defense committee, though the Kremlin insists no large-scale draft is imminent. If the person summoned fails to report for service within 20 days of the date listed on the summons, the state can suspend his driver’s license, deny him the right to travel abroad, and make it impossible for him to get a loan.
The database that provides names of potential draftees is assembled from medical, educational, and residential records, as well as insurance and tax data. Thousands of young Russians have already fled their country. Many more may soon try to join them.
Abortion pill stays on the market, but access rolled back
As the battle over abortion medication continues in the US, a federal appeals court has ruled that mifepristone – a drug approved by the Food and Drug Administration in 2000 – can remain on the market until the full case can be heard, likely by the Supreme Court.
Still, the court – made up of three appellate judges all appointed by Republican presidents – ruled that mifepristone cannot be sent by mail and rolled back a 2016 rule allowing it to be used up to 10-weeks gestation, dropping it back to seven weeks. It also rolled back other measures enforced by the Biden administration to enhance access after the gutting of Roe v. Wade.
This decision comes after a Trump-appointed, pro-life judge in Texas recently ordered a temporary stay on approval of mifepristone. Less than an hour later, another federal judge in Spokane, Washington, ruled that the drug must remain available in 17 Democratic-run states plus Washington, DC.
Importantly, the appeals court appeared to back the government's view that taking an approved drug off the market that accounts for more than half of all abortions nationwide would have “significant public consequences.”
As expected, abortion rights are shaping up to be one of the biggest political issues in the country. In Florida, Republicans are trying to fight a recently passed law banning abortion at six weeks, pushing for an outright ban.
US inflation cools — smartphones FTW
Good news for American households as US inflation fell to its lowest level in nearly two years in March. Prices grew at an annual clip of 5%, according to the latest figures released Wednesday. That’s down from 6% in February, marking the ninth consecutive month of falling inflation.
The highlights? Well, if you want to do some shopping in the US, now’s the time to cop a new smartphone, which will cost you 24% less than a year ago. And that summer road trip is on – gas prices are down more than 17%. At the same time, we remain “yolked,” as it were, to the Great Egg Crisis of 2023 — prices are up more than 30% despite easing a bit since February.
More broadly, that headline figure of 5% is still more than twice the pre-pandemic norm, and core inflation — which excludes volatile prices for fuel and food — is running at a toasty 5.6%.
That’ll keep the US Fed in the hot seat as it meets again in early May. Will they raise interest rates once more in a bid to finish off inflation? Or will they stand pat, worried about tipping the economy into a recession?
Will this man become Taiwan's next president?
Taiwan's ruling Democratic Progressive Party on Wednesday nominated VP William Lai as its candidate in the January 2024 presidential election.
Lai is widely viewed as a stand-in for term-limited President Tsai Ing-wen, reelected by a landslide in 2020. That means a tough line on China, which has made Tsai a darling in the West and reviled by Beijing. Lai used to support Taiwanese independence openly but has since moderated his position to align with the DPP's: We don’t need to formally break with the mainland because we’re already de-facto independent.
It's unclear who Lai will face, since the opposition Kuomintang Party — which, officially, is not pro-China but favors closer ties with China than the DPP — has yet to pick its candidate. (Terry Gou, the billionaire founder of Foxconn, the Taiwanese company that makes iPhones in China for Apple, is mulling another run.)
The vote will be Taiwan's most closely watched presidential election since 1996, when the self-ruled island ended decades of authoritarian rule. China responded to the democratic vibes by flexing its then-weak military muscles … until the US made it back off. This time, though, expect major Chinese fireworks if Beijing's candidate doesn't come out on top.
Biden’s ambitious new EV proposal
The Biden administration has proposed a new measure that would sharply accelerate the American auto industry’s transition to electric vehicles, and not everyone is happy about it.
The draft marks a big shift from Washington’s current carrots-based approach to boosting EV production to one that relies more on sticks. It would require carmakers to derive 60% of their sales revenue from electric vehicles by 2030, or face penalties. Currently, under a 2021 plan, the target is closer to 50% and manufacturers are allowed to opt in only if they want to. Under that plan, a range of subsidies and tax breaks aimed to incentivize consumers and manufacturers to ditch dirty fuel guzzlers.
Carmakers are already pushing back, saying that changes to assembly lines and supply chains will be expensive and take years to implement. But the Biden administration says the necessary funds were included in the Inflation Reduction Act, which earmarked $31 billion in subsidies for EV’s and tax credits for EV manufacturers.
Expect this to become a heated political issue in the coming months. Texas, despite being a leading investor in EV networks, has sued the federal government over the current EV standards, arguing that they are an overreach that violates states’ rights.
A giant screen in a Beijing mall broadcasts news footage of a Chinese fighter jet flying near Taiwan.
What We're Watching: Chinese drills off Taiwan, Israeli-Palestinian violence, US abortion pills legal drama
China simulates Taiwan invasion
China "welcomed" Taiwan's President Tsai Ing-wen back from her Americas trip and meeting with US House Speaker Kevin McCarthy by putting on its biggest show of military force near the self-ruled island since McCarthy's predecessor, Nancy Pelosi, visited Taiwan in Aug. 2022.
As part of three days of drills dubbed "Joint Sword" by Beijing, Chinese forces rehearsed an invasion of Taiwan, which split from the mainland in 1949 and China considers a renegade province. The so-called "combat readiness" exercises sent dozens of warships and fighter jets around the island, with many aircraft symbolically crossing the demarcation line in the middle of the Taiwan Strait. Chinese military planners also released an animated video of the simulated strikes with the capital, Taipei, exploding in flames, and the drills concluded Monday with a dry run of an aerial and naval blockade.
On the one hand, China's simulation is a clear message to Taiwan and the US: We’re not messing around so don’t test our resolve. But on the other, the scale and scope of the drills fall short of China's fiery response to Pelosi's trip, which might indicate that Beijing doesn't want to be the one to escalate.
Israel’s security situation worsens
Tensions between Israelis and Palestinians reached almost boiling point on Sunday after the last few days saw an unusually high number of violent clashes that have spilled over into southern Lebanon and even Syria.
In Jerusalem, Israeli cops had a tense standoff with Palestinian militants who had barricaded themselves inside the Al-Aqsa Mosque, which Israeli Jews call the Temple Mount and is administered by Jordan. Last week, hundreds of Palestinians were arrested in two predawn raids at the same site in scenes eerily similar to the tensions that sparked a brief Israel-Hamas war two years ago.
Meanwhile, Hamas fired rockets at Israel from the Gaza Strip and southern Lebanon. (Hezbollah said it was not involved but likely signed off on the offensive as the chiefs of the Iran-backed militant group and Hamas met in Beirut.) The Israelis responded with air strikes on Gaza and Lebanon — the biggest flurry of missiles against its northern neighbor since the 2006 war. Israel also hit multiple targets in Syria in response to rockets fired by Palestinian militants into the Golan Heights, a chunk of Syrian territory that Israel annexed in 1981.
On Friday, two British-Israeli sisters were shot dead in the West Bank, and an Italian tourist was killed in a car-ramming attack in Tel Aviv. As the security situation worsens, embattled PM Benjamin Netanyahu is not taking any chances: He's already called up army and police reservists.
The legal future of US abortion medication
We warned you that this was coming. The legal status of abortion pills in the US was thrown into question Friday after two federal judges issued conflicting rulings on the drug mifepristone, used in more than half of all abortions in America.
First, a Trump-appointed, pro-life judge in Texas ordered a temporary stay on FDA approval of mifepristone, which the agency greenlit way back in 2000, giving the Biden administration seven days to appeal before mifepristone becomes illegal nationwide. Less than an hour later, another federal judge in Spokane, Washington, ruled that the drug must remain available in 17 Democratic-run states plus Washington, DC.
Whatever the outcome, the case is as legal as it is political. For one thing, it's the first time that a judge has tried suspending the longtime FDA approval of a drug, blunting the agency's regulatory teeth. Also, if the stay is confirmed, even states where abortion remains legal could be barred from prescribing the pills because the Texas injunction is nationwide. Finally, you can bet the dispute will go all the way to the Supreme Court, where the same conservative majority that overturned Roe v. Wade will rule on such a third-rail issue, possibly in 2024, an election year.
Local woman cries as she prepares to enter an evacuation train from Kherson, Ukraine.
What We’re Watching: Kherson evacuation, China’s flex in Taiwan, botched bomb plot in Brasilia
A bloody few days in Ukraine and Russia
Three Russian service members were killed by what Moscow claimed was falling debris inside Russia on Monday after a Ukrainian drone was shot down over the Engels military base about 400 miles from the Ukrainian border. It’s the second time in a month that Ukraine has targeted that base, which Kyiv says the Kremlin is using as a launching pad for missile attacks on Ukrainian infrastructure. The incident is problematic for President Vladimir Putin, who has long tried to reassure Russians that the war won’t be coming home or impacting their everyday lives – a narrative that’s harder to sell when deadly drones are flying inside Russian airspace. The timing was also embarrassing for Putin, who was hosting leaders from former Soviet republics when the attack occurred. While Kyiv has mostly been on a high since President Volodymyr Zelensky’s successful trip to Washington, DC, last week, it was also a bloody weekend for Ukraine: Russia pummeled the southern city of Kherson on Christmas Eve, leading to at least 10 deaths and scores of injuries. Meanwhile, Ukrainian authorities are urging residents to evacuate the city in preparation for what's still to come.
China’s muscle flex in the Taiwan Strait
China sent 71 warplanes and seven ships towards Taiwan in a 24-hour period, marking the largest show of force by Beijing in the Taiwan Strait in months. Taipei claimed that 47 Chinese aircraft crossed the median line, an unofficial buffer between the two states. Analysts say that Beijing’s muscle flex was largely a response to a spending bill passed by the US Congress in recent days, which boosted security assistance for Taiwan, including fast-tracking Taipei’s access to weapons procurement. Beijing was predictably peeved by the development, accusing Washington and Taipei of provocations. In response, Taiwan's President Tsai Ing-wen announced that mandatory national military service would be increased from four months to one year. Indeed, this was the biggest show of force in the Taiwan Strait by Beijing since US House Speaker Nancy Pelosi visited the disputed island in the summer, prompting an aggressive naval and aerial response from China. Still, the last thing President Xi Jinping wants right now is an escalation with the US, given that he’s grappling with a medical emergency and an overwhelmed healthcare system as his government abandons its zero-COVID policy.