Voters in Taiwan head to the polls on 13 January, which has some pundits expressing deep concern. After two four-year terms in office, incumbent President Tsai Ing-wen of the Democratic Progressive Party (DPP) can’t be re-elected for a third term. Who will replace her? Will it be her party’s candidate, William Lai, as most predict? Or will it be Kuomintang candidate, Hou Yu-ih, who is seen to be more China-friendly? Will the election’s wildcard, Ko Wen-je, founder of the new Taiwan People’s Party (TPP), shake things up? Above all else, will tensions with China continue to escalate?
For some predictions and answers, we spoke to the Asia Society’s Simona Grano, TOY Senior Fellow on Taiwan, Center for China Analysis. She helped allay some fears and clear up some misperceptions about what’s at stake in this vote and what’s likely to change.
Fear 1: DPP’s likely victory would increase geopolitical instability in the region (while a Kuomintang victory, a longer shot, would ease tensions).
SG: It’s true that the most likely voting outcome, according to polls taken before 3 January (the beginning of the 10-day blackout period for election news in Taiwan), is that the DPP’s candidate, William Lai, will win. But if this happens, I think that there will be more continuity over his term. In the immediate aftermath of the elections, we may witness more tensions – perhaps something like China’s military exercises after Nancy Pelosi’s visit in 2022. And yet, soon after, I foresee those tensions dissipating as Lai strives to walk a similar line as current president Tsai Ing-wen, who is moderate. I also think Lai will try to maintain similar relationships with allies, such as the United States and other Western countries.
For businesses in the West, a Kuomintang presidency, which is not seen as likely, would be less predictable. The Kuomintang may have to navigate uncharted waters if they work to restart a dialogue with China while striving to keep amicable relations with the United States. That balance could be difficult.