DPP wins Taiwan elections: key take-aways for investors

The DPP aims to maintain the status quo in cross-strait relations but firmly opposes the 1992 Consensus and the ‘One China’ policy, including Beijing’s proposed ‘one country, two systems’ model for reunification.

DPP wins Taiwan elections- key take-aways for investors

  • What’s next? Beijing has expressed its disappointment at the re-election of the ruling Democratic Progressive Party (DPP) as it makes China and Taiwan’s peaceful re-unification increasingly elusive. The China-hawkish DPP has now won three elections in a row and its incoming president, William Lai, is considered by Beijing as aiming to further distance Taiwan from China, possibly aiming for independence. However, the DPP largely intends to maintain the current state of cross-strait relations.
  • Foreign relations: The DPP aims to continue to diversify away from China to achieve stronger defence and international partnerships to act as a deterrent against potential Chinese actions.
  • Market reaction: The DPP victory has largely been expected, but market response will depend on how China reacts to the DPP victory in coming weeks and months, with potential scenarios ranging from continued status quo to ‘middle road’ escalations. The latter could impact the New Taiwan dollar (TWD) value, real estate and stock market, and create regional economic disturbances.

You can now read the full whitepaper at the link below