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Stories (5)

elections

Taiwan's Budget Crisis Gives China an Opening

Summary: Taiwan faces its deepest political crisis in decades as a constitutional stalemate over the 2026 budget unfolds. The executive’s proposed large central budget and an expansive 8-year special defense package are repeatedly blocked by the opposition, creating protracted gridlock that erodes public trust and Taiwan’s strategic credibility abroad. The budget fight reflects broader partisan divides: the DPP favors expanding self-defense capabilities and closer U.S. securi

2026-05-25
economy

Taiwan’s President Marks Two Years in Office Amid Gridlock and Divided Public Opinion - Domino Theory

Summary: - Taiwan’s President Lai Ching-te marks two years in office amid domestic political gridlock and divided public opinion. He emphasizes China as Taipei’s main external threat and has asserted a more assertive foreign stance since taking office. - Domestic politics: Lai’s DPP lacks a legislative majority, facing a hostile opposition coalition (KMT and TPP). Approval ratings are mixed (around 38% in May per TVBS), with economic satisfaction up while governance opinions

2026-05-25
economy

Taiwan’s New Southbound 2.0: Rewiring the Indo-Pacific Beyond China – The Diplomat

Taiwan’s New Southbound 2.0 is being reframed from a trade diversification initiative into a broader Indo-Pacific strategy. At the 2026 Yushan Forum, President Lai Ching-te signaled that New Southbound Policy now links economic realignment with democratic coordination, regional deterrence, and resilience. The policy targets deepening ties with democratic partners beyond the original 18 countries, aiming to reduce dependence on China and strengthen strategic autonomy. Taiwan e

2026-05-25
economy

China tests a new Taiwan strategy — and a peace talk reveals the shift - ABC News

Beijing is testing a dual-track strategy toward Taiwan: combine gradual economic and political engagement with calibrated pressure, aiming to shape Taiwan’s domestic politics rather than force unification. Key shifts include: - Taiwan visit and engagement: KMT chair Cheng Li-wun’s visit followed by Beijing’s package of 10 measures to expand economic and cultural ties (air links, tourism, agricultural trade, culture). - Strategic aim: shift incentives in Taiwan to align with

2026-05-25
economy

Why Cheng Li-wun’s Visit to China Matters – The Diplomat

Cheng Li-wun’s visit to mainland China (April 7–12) marks a strategic signal from Beijing: engage with Taiwan’s main opposition party (KMT) to influence cross-Strait dynamics while spurning the DPP. The trip is framed as party-to-party dialogue that could shape Taiwan’s security and policy debate without U.S.-driven deterrence alone. Beijing seeks to show that peace across the Strait can be advanced through engagement with preferred Taiwanese actors, potentially shaping decis

2026-05-25