What We're Watching

William Lai takes the reins in Taiwan

​Lai Ching-te attends an inaugural ceremony as president of Taiwan in Taipei, Taiwan on May 20, 2024.
Lai Ching-te attends an inaugural ceremony as president of Taiwan in Taipei, Taiwan on May 20, 2024.
The Yomiuri Shimbun via Reuters

The Democratic Progressive Party’s William Lai was inaugurated as Taiwan’s 8th president on Monday. His pro-independence inclinations cause consternation across the Strait, but Beijing’s domestic position and relations with the United States make discretion the better part of valor for the moment.

Lai is expected to follow his predecessor Tsai Ying-wen’s policies closely, given he served as her VP. That means pursuing closer ties with the United States where he can, and building up deterrent capacity against a Chinese invasion without provoking Beijing — much easier said than done.

In the short term, however, China isn’t likely to cross any rubicons. The foreign ministry's response to Lai’s inauguration message was pretty tame, just an insistence that "Taiwan independence is destined to fail," because Beijing has its eye on the US relationship. Both Washington and Beijing have committedly pursued stabilization of relations over the past year and change, with some good progress to show for it. No point in risking all that to show Lai how much they dislike him (he’s well aware!), particularly with a lackluster economy to worry about as well.

More For You

Mastercard Economic Institute's Outlook 2026 explores the forces redefining global business. Tariffs, technology, and transformation define an adaptive economy for the year ahead. Expect moderate growth amid easing inflation, evolving fiscal policies, and rapid AI adoption, driving productivity. Digital transformation for SMEs and shifts in trade and consumer behavior will shape strategies worldwide. Stay ahead with insights to help navigate complexity and seize emerging opportunities. Learn more here.

Miami Mayor-elect Eileen Higgins points as she thanks her staff and supporters on the night of the general election, on Tuesday, Nov. 4, 2025.
Carl Juste/Miami Herald/TNS/ABACAPRESS.COM

A Democrat won Miami’s mayoral race for the first time in nearly 30 years. The Republican defeat will ring some alarms for the party – and their support among Latino voters.

Women work in the plastic container assembly area inside the El Oso shoe polish factory, located in Mexico City, Mexico, in its new facilities, after officers from the Secretariat of Citizen Security and staff from the Benito Juarez mayor's office arbitrarily and violently remove their supplies, raw materials, machinery, and work tools on January 17 of this year following a coordinated operation stemming from a private dispute. On August 27, 2025.
Photo by Gerardo Vieyra/NurPhoto

50: Mexico’s President Claudia Sheinbaum is taking a page out of US President Donald Trump’s book, implementing up to a 50% tariff on more than 1,400 products in a bid to boost domestic production.