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  • Trump is a 'transactional president' but may not rock the boat on China, Standard Chartered CEO says

    Trump is a 'transactional president' but may not rock the boat on China, Standard Chartered CEO says

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    Bill Winters, chief executive officer of Standard Chartered, said the U.S. Federal Reserve looks set to pause its interest rate cycle in June get a better read on the latest inflation data.

    Bloomberg | Getty Images

    Former U.S. President Donald Trump would be a “transactional president” if he returns to power, but is unlikely to blow up the Biden administration’s rebuilding of relations with China, according to Standard Chartered CEO Bill Winters.

    Trump won the Iowa caucus by around 30 points over his closest rival and is the clear favorite to secure the Republican nomination for the 2024 presidential election, despite facing 91 felony counts across numerous criminal cases relating to his attempts to overturn his 2020 election defeat, mishandling of classified documents and hush-money payments to a porn star.

    During his last term in office, Trump took a combative stance toward Beijing and triggered a trade war with a slew of tariffs on Chinese goods and constant threats of more economically punitive measures.

    President Joe Biden‘s administration has sought to repair the fragile relationship. U.S. Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo visited China last summer, and Biden met Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation leaders’ meeting in San Francisco in November.

    Speaking to CNBC at the World Economic Forum in Davos, Switzerland, on Tuesday, Winters said Washington and Beijing are now “pretty interlinked” and that for any president to “aggressively disentangle” would be bad for the U.S., Chinese and global economies.

    “Nobody really wants that or needs that right now, so I think the slight re-engagement that we’re seeing through the Biden administration, visits from the Commerce Secretary and Janet Yellen etc., are an indication to me that the U.S. is looking to stabilize,” he said.

    “If Trump becomes president, we know that he’s a transactional president, and there’s probably a transaction in there someplace that keeps the economy on an even keel without fundamentally disrupting that relationship, but of course we watch all the time and we’re well aware that there could be either unintended consequences or accidents, but I’m staying pretty optimistic that we could avoid the worst.”

    Though it’s headquartered in the U.K., Standard Chartered earns most of its revenue in Asia, and Winters also said he remains “very optimistic about the Chinese economy in the medium-, long-term” despite its well-documented short-term headwinds.

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  • 'Taiwan is China's Taiwan': Beijing says Taiwan's ruling party is not representative of popular opinion

    'Taiwan is China's Taiwan': Beijing says Taiwan's ruling party is not representative of popular opinion

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    Taiwan and China flags together textile cloth, fabric texture

    Oleksii Liskonih | Istock | Getty Images

    TAIPEI — China dismissed the outcome of Taiwan’s Saturday elections, saying its ruling Democratic Progressive Party does not represent mainstream public opinion after it failed to win a majority in the presidential and legislative votes.

    “Taiwan is China’s Taiwan,” Chen Binhua, the spokesperson for the Taiwan Affairs Office of the State Council, said on Saturday after DPP’s Lai Ching-te emerged as the winner of the self-governing island’s presidential contest with more than 40% of the popular vote.

    “This election cannot change the basic pattern and the development of cross-Strait relations, nor can it change the common desire of compatriots on both sides of the Taiwan Strait to draw closer,” Chen added, according to a CNBC translation of a report from Xinhua, the official state news agency.

    Beijing has framed the self-ruled island’s election as a choice between “peace and war, prosperity and decline” — with Chinese President Xi Jinping regarding reunification with the mainland “a historical inevitability.” Beijing has repeatedly labeled Lai as a “stubborn worker for Taiwan independence” and a dangerous separatist.

    China has never relinquished its claim over Taiwan — which has been self-governing since the Chinese Nationalist Party, or Kuomintang, fled to the island following its defeat in the Chinese civil war in 1949.

    The outcome of Taiwan’s presidential and legislative elections will likely shape China’s posture toward the island, while also influencing China-U.S. relations and security in the broader Indo-Pacific region.

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  • China skeptic Lai Ching-te wins Taiwan's presidential election

    China skeptic Lai Ching-te wins Taiwan's presidential election

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    Taiwan’s President-elect Lai Ching-te (left) gestures beside his running mate Hsiao Bi-khim during a rally outside the headquarters of the Democratic Progressive Party (DPP) in Taipei on January 13, 2024, after winning the presidential election.

    Yasuyoshi Chiba | AFP | Getty Images

    TAIPEI — Taiwan’s ruling Democratic Progressive Party won an unprecedented third-straight presidential term, as incoming leader Lai Ching-te pledged to stay open-minded in his approach toward governance, while committing to forging consensus in a split legislature.

    The outcome of the presidential election on Saturday riled Beijing, which has repeatedly labeled Lai as a “stubborn worker for Taiwan independence” and a dangerous separatist. There are also fears this could in turn influence frosty China-U.S. relations and security in the broader Indo-Pacific region, with China having escalated military activity in the Taiwan Strait and other nearby waters.

    “As president, I have an important responsibility to maintain peace and stability in the Taiwan Straits,” Lai said in a press conference, in an official party translation of his comments in Mandarin. He added though that he is also “determined to safeguard Taiwan from threats and intimidation from China.”

    “I will act in accordance with our democratic and free constitutional order, in a manner that is balanced and maintains the cross-Straits status quo,” he added. “Under the principles of dignity and parity, we will use exchanges to replace obstructionism, dialogue to replace confrontation, and confidently present exchanges and cooperation with China.”

    The Chinese Communist Party has refused to engage with outgoing President Tsai Ing-wen since she assumed office in 2016. Tsai did not stand at this election because she has served the maximum two presidential terms.

    The DPP has not accepted the so-called “1992 Consensus,” disputing the tacit agreement for “one China” between the then-KMT government and Chinese Communist Party officials, which Beijing assumes as the basis for cross-Straits engagement.

    Still, in his post-election comments in Mandarin, Lai invoked the official name of Taiwan — the Republic of China — at least twice.

    Supporters of the Democratic Progressive party (DPP) await the announcement of official results at a rally on January 13, 2024 in Taipei, Taiwan.

    Annabelle Chih | Getty Images News | Getty Images

    DPP’s Lai — Taiwan’s current vice-president — won more than 40% of the popular vote in Taiwan’s eighth presidential election. DPP is the first party to win the presidential office three times in row since direct presidential elections were introduced in 1996. Beijing had framed the election as a choice between “peace and war, prosperity and decline.”

    Kuomintang or KMT, Beijing’s preferred political partner, gained roughly 33% of the vote with Hou You-yi at the top of its ticket. Ko Wen-je — the surly, straight-talking former Taipei mayor who ran under the banner of the Taiwan People’s Party that was formed only in 2019 — received just over 26% of the vote.

    Voter turnout appeared to be the second-weakest since direct presidential elections started in Taiwan in 1996. This year, 71.9% of all eligible voters cast their ballots for the presidential election, according to preliminary data from Taiwan’s Central Election Commission.

    Responses from China and the U.S.

    China dismissed the outcome of Taiwan’s Saturday elections, saying its ruling Democratic Progressive Party does not represent the mainstream public opinion.

    “Taiwan is China’s Taiwan,” Chen Binhua, the spokesperson for the Taiwan Affairs Office of the State Council, said on Saturday shortly after DPP’s Lai emerged as the winner.

    “This election cannot change the basic pattern and the development of cross-Strait relations, nor can it change the common desire of compatriots on both sides of the Taiwan Strait to draw closer,” Chen added, according to a CNBC translation of a report from Xinhua, the official state news agency.

    China has never relinquished its claim over Taiwan — which has been self-governing since the Chinese nationalist party, or Kuomintang, fled to the island following its defeat in the Chinese civil war in 1949.

    Chinese President Xi Jinping regards reunification with the mainland “a historical inevitability.”

    The U.S. response starkly differed, but was broadly consistent with its past positions.

    “We … congratulate the Taiwan people for once again demonstrating the strength of their robust democratic system and electoral process,” U.S. Secretary of State Antony Blinken said in a statement.

    “The United States is committed to maintaining cross-Strait peace and stability, and the peaceful resolution of differences, free from coercion and pressure,” he added.

    Commitment to consensus

    The outcome of the race to control Taiwan’s 113-seat legislature though is far less clear, with the DPP losing its majority. A hung parliament could well hobble Lai’s policy agenda, while heralding a return of the kind of notorious open feuding among Taiwan’s legislators.

    “On the legislative elections, the DPP did not hold onto a majority,” Lai said. “This means we did not work hard enough, and there are areas where we must humbly review and look back on.”

    As it stands, the new Taiwan government will have its hands full, with voters largely concerned with bread-and-butter issues, particularly stagnant wages at a time of escalating rents and home prices that have been worsened by high inflation.

    Economic diversification is the number one issue for Taiwan's new president: Analyst

    These issues have largely helped buoy Ko’s popularity as he positioned himself as a political outsider. 

    “Taiwan People’s Party got more votes than expected. Ko got 25%, showing there is still a significant number of voters wanting a change,” Wei-Ting Yen, an assistant professor in government at Franklin and Marshall College, told CNBC.

    “The social force is there, and the Lai administration has to address the social and economic issues right on,” she said. “People may be supporting the DPP’s foreign policy directions, but they are not necessarily supporting them for domestic policies.”

    At the same press conference on Saturday after his two opponents conceded, Lai said he will carefully consider and include policy ideas and positions of his two electoral rivals that further Taiwan’s interests.

    In a nod to issues that dominated the presidential election campaign, Lai singled out the financial sustainability of Taiwan’s labor and health insurance, along with the country’s energy transition as urgent issues that he will prioritize in forging consensus.

    Lai also said he will appoint the most qualified professionals and personnel regardless of political affiliations in the “spirit of a democratic alliance.”

    “The elections have told us that the people expect a strong government and effective checks and balances,” Lai said. “As for the new structure of the new legislature, Taiwan must build a new political environment of communication, consultation, participation, and cooperation.”

    Global strategic implications

    Still, Lai also had one eye on the broader strategic significance of his electoral victory — however diminished it may seem in comparison to the DPP’s comfortable victory in the presidential and legislative elections in 2016.

    “Through our actions, the Taiwanese people have successfully resisted efforts from external forces to influence this election. We trust that only the people of Taiwan have the right to choose their own president,” Lai said.

    Taiwan’s DPP-led government has often accused Beijing of vote interference either by military intimidation or by co-opting Taiwan’s business elite due to their economic reliance on China.

    Growth in US-Taiwan trade will be hard to change even if the KMT wins the Taiwan election: Economist

    In the run-up to Saturday’s vote, Lai said that Beijing’s meddling is “the most serious” at this elections.

    Xi told U.S. counterpart Joe Biden on the sidelines of the APEC leaders summit in November that Taiwan has always been the “most important and sensitive” issue in China-U.S. relations.

    Prior to Saturday’s elections, a senior Biden administration official said the White House is preparing for several different outcomes. Biden has pledged to defend Taiwan in the event of a China invasion, a position that has irked Beijing.

    Former U.S. House Speaker Nancy Pelosi visited Taiwan in 2022, becoming the highest-ranking U.S. official to visit the island in over two decades. Her trip was one reason that communication between the world’s two leading powers ground to a halt before a tentative resumption only months ago.

    “As one of the first and most highly anticipated elections of 2024, Taiwan has achieved a victory for the community of democracy,” Lai said. “We are telling the international community that between democracy and authoritarianism, we will stand on the side of democracy.”

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  • China’s “destroyer of peace” wins Taiwan election

    China’s “destroyer of peace” wins Taiwan election

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    Taiwan’s Vice President Lai Ching-te won the self-ruled island’s presidential election on Saturday in a blow to China, which had branded him a “destroyer of peace.”

    China had warned Taiwan its contest amounted to a choice between war and peace. Beijing claims sovereignty over the island and has vowed to unify with it—through force if necessary—though the Chinese Communist Party has never governed there. The United States supports Taiwan’s self-rule and provides it with defensive weapons, to China’s fury.

    Taiwan’s election comes at a time of global turbulence, with the United States already preoccupied supporting wars in Ukraine against China’s Russian ally and in the Middle East, where Israel is fighting Iranian-backed Hamas and Hezbollah and where the U.S. has struck Yemen after related attacks on shipping by Houthi rebels.

    The vote in Taiwan handed the incumbent Democratic Progressive Party (DPP) an unprecedented third term in power.

    The election pitted Lai of the Beijing-skeptic ruling party against New Taipei City Mayor Hou Yu-ih of main opposition party the Kuomintang (KMT) and Ko Wen-je, former Taipei mayor and founder of the upstart Taiwan People’s Party.

    Hou conceded defeat in a speech at his campaign headquarters. Results showed Lai with over 40 percent of the vote counted at that point with just over 33 percent for Hou and 26 percent for Ko.

    Some 19.54 million citizens, or 83% of the population, were eligible to cast their ballots, including about 1.03 million first-time voters, according to Taiwan’s Central Election Commission.

    Supporters of Taiwan’s ruling party candidate Lai Ching-te celebrate early results showing him in the lead. Lai won the election in a blow to China.
    Matthew Tostevin for Newsweek

    China had labeled Lai a “destroyer of peace across the Taiwan Strait” and had made clear that Hou was its favored candidate. The ruling party had accused China of using all means to interfere in the vote. Chinese President Xi Jinping has repeatedly stressed that China sees Taiwan as an integral part of the country and will ultimately bring what it regards as a renegade province back into the fold.

    “China says we are part of them. But that’s not the case… Lai is the best candidate, in my opinion. He is the one who can stop the war.” Alex Liu, a Taipei resident in his 20s told Newsweek after voting. “Other parties will sell out to China.”

    The United States has long supported Taiwan’s self-rule, and all three candidates had underscored the importance of amicable relations with Washington.

    Their differences on policy with Beijing were nuanced. None of the candidates had said they would declare independence — the absolute red line for China. Likewise, none of them had said they would seek the unification that China wants but which is opposed by the vast majority of people in Taiwan.

    Most Taiwanese currently favor the maintenance of the status quo, in which Taiwan continues to administer itself but does not declare independence.

    While the DPP has held onto the presidency, it appeared to have lost its grip on Taiwan’s 113-seat egislature, wwhich would make it harder to govern.

    Sean King, an Asia scholar and senior vice president of New York-based consultancy Park Strategies told Newsweek that for the People’s Republic of China (PRC), Taiwan stands as the most critical issue in its relations with the United States. Regaining control of the island was essential for the maintenance of Communist Party rule in the long term, he said.

    “The Chinese Communist Party has staked its reputation and standing on Chinese nationalism,” he said.

    Acquisition of Taiwan would provide Beijing with strategic advantages, including the projection of naval power into the Western Pacific.

    “A disruption to peace and stability across the Taiwan Strait would seriously damage the global economy, and the spillover would affect all economies around the world,” a senior official in the administration of U.S. President Joe Biden said on background Thursday in a teleconference with the press centered on Taiwan’s election.