The election of Lai Ching-te, or William Lai, as Taiwan’s next president despite firm opposition from China is a positive sign that democracy is alive and well on the island nation. Nevertheless, the fact that Lai, whom China has deemed a “troublemaker” and “separatist,” won by a narrow margin, and his Democratic Progressive Party (DPP) lost its majority in the Legislative Yuan, will be seen in Beijing as an acceptable outcome, as it restricts Lai’s ability to advance his agenda and reveals the limits of the DPP’s appeal.
Though changing circumstances have made previously reliable investment models obsolete, Taiwanese investors still see mainland China as an attractive destination for their capital.