Taiwan’s president-elect, Lai Ching-te, is set to begin his term next Monday (May 20th). During his inauguration ceremony, the new president plans to express his desire to maintain the status quo across the Taiwan Strait, aligning with the current President Tsai Ing-wen’s policies. He also vows to strengthen national defense and promote Taiwan’s economy.
Lai Ching-te’s inaugural speech is expected to serve as a key indicator of the new government’s approach to cross-strait relations. The United States government announced this week that they will send an unofficial delegation to attend Taiwan’s new president’s inauguration, including two former senior U.S. officials and one scholar.
While the Chinese Communist Party has never ruled Taiwan, recent military activities near Taiwan’s airspace have escalated, with demands for Taiwan to accept its sovereignty claims. Despite Lai Ching-te’s attempts to engage in talks with Beijing, they have been met with refusal. He and his ruling Democratic Progressive Party emphasize that only the people of Taiwan can determine their future.
Against the backdrop of heightened tensions in the Taiwan Strait, Lai Ching-te faces challenges balancing Taiwan’s security risks and safeguarding the island from Chinese aggression, surpassing those of his predecessors.
According to the Financial Times, a source familiar with the matter stated that Lai Ching-te’s government has extensively communicated with Washington regarding his inaugural speech, with the U.S. consistently conveying guiding principles.
Several Democratic Progressive Party members noted that Washington hopes for Lai Ching-te to continue Tsai Ing-wen’s policy towards China, citing her cautious approach in managing the often tumultuous cross-strait relations, which has garnered broad international support.
An American official highlighted that the American Institute in Taiwan (AIT) has been in contact with Taiwanese officials regarding Lai Ching-te’s inaugural speech, emphasizing the U.S.’s long-standing policy on cross-strait issues.
“As the upcoming term approaches, we do not intend to disrupt or alter matters… ‘maintaining the status quo’ has always been our motto,” the official told the Financial Times.
A Taiwan official at a press conference stated, “We will discuss our prudent policies and continue the foundation set by President Tsai.”
“We will ensure Taiwan plays an indispensable role in the global economy and geopolitics, maintain the status quo, and collaborate with various parties to prevent erosion,” the official added.
However, amid China’s increasingly provocative military actions daily near Taiwan, the new government faces a more challenging and complex reality domestically and internationally.
“We will continue to demonstrate to the international community that it is the other side that is continuously disrupting the international order and cross-strait exchanges,” the official noted.
Lai Ching-te vows to further modernize Taiwan’s defense and continue the development of indigenous defense programs. The goal is to ensure conflict never arises, with plans to increase the defense budget from 2.5% to 3% of GDP by 2024.
In sensitive areas like cross-strait relations, national security, and defense, Lai Ching-te has retained much of Tsai Ing-wen’s team. Current Foreign Minister Joseph Wu will lead Lai Ching-te’s National Security Council, with National Security Council Secretary-General David Lee assuming the role of Defense Minister.
Democratic Progressive Party officials hope that continuity in personnel will bring stability amidst heightened military exercises by Beijing in Taiwan’s waters and airspace in recent weeks.
However, Lai Ching-te also recognizes the pressing economic issues faced by many Taiwanese, particularly the youth, as a top priority for domestic reform.
For decades, Taiwan’s economic policies have mainly focused on supporting leading global high-tech industries like chip manufacturing, leaving other economic sectors relatively undeveloped. According to senior Democratic Progressive Party officials, 68% of the population’s income is below the average.
Nevertheless, the new party structure in Taiwan’s legislature may pose some resistance to Lai Ching-te’s economic policies, given that the Democratic Progressive Party did not secure a majority in the latest legislative elections.
On Friday (May 17th), chaos erupted in the Legislative Yuan due to opposition proposal to penalize government officials for lying during legislative questioning, as reported by major media outlets.
On Saturday (May 18th), Lai Ching-te called for “rational” debates between both sides, aiming for calm restoration and consensus.
His policies include reforming underfunded national health insurance, expanding child and elderly care subsidies. Besides social expenditures, he will seek to shift economic policy from stimulating certain industries to creating more service industry job opportunities and boosting domestic consumption.
The Democratic Progressive Party official interviewed by the Financial Times emphasized, “To ensure well-being and security for these individuals, we need to focus on social investment and establish a more comprehensive social security system.”
Lai Ching-te has recruited several private sector executives to join his cabinet, with the most prominent being entrepreneur and semiconductor industry supplier TSMC chairman Mark Liu.