January 26, 2024 - 2 min

Taiwan in election year: A turning point in 2024

In 2024, a year in which more than half of the world's population participates in electoral processes, Taiwan's elections stand out for their significant global importance.

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On January 13, Taiwan made history by re-electing the Democratic Progressive Party, with Lai Ching-te as president. This election not only resonates within the island, but also has a profound impact on the complex international (Taiwan-China-US) dynamics.

Lai Ching-te faces a challenging political landscape, with a limited popular mandate and a divided parliament. Despite his party's nominally pro-independence stance, the reality in Taiwan is a political equilibrium. For China, which sees Taiwan as part of its territory and does not favor its independence, the outcome of this election is not entirely negative, given Lai's precarious position.

China is expected to intensify its economic and military pressure on Taiwan, although this is unlikely to escalate into a full-scale armed conflict in the short term. this is unlikely to escalate into a full-scale armed conflict in the short term.

Anticipated measures include trade restrictions and psychological campaigns designed to destabilize the Lai government and strengthen the political opposition in Taiwan. include trade restrictions and psychological campaigns designed to destabilize the Lai government and strengthen the political opposition in Taiwan. These actions could generate instability in the financial markets in both China and Taiwan.

In the long term, the scenario is one of constant preparedness. As China strengthens its capabilities in key areas such as supply security and technological and financial self-sufficiency, the risk of a future conflict in the Taiwan Strait remains latent, the risk of future conflict in the Taiwan Strait remains latent. However, with a large part of Taiwan's population favoring the status quo and the United States opposing full independence for the island, the current balance remains.

In this crucial year of elections around the world, Taiwan stands as a prime example of how the decisions of a small island can have far-reaching implications, influencing geopolitics and international stability. In an increasingly interconnected world, all eyes are on Taiwan, a key player in the power play between the major powers.

 

Francisco Muñoz

Partner - Commercial Director