Overview

• Taiwan's newly elected president, William Lai, from the Democratic Progressive Party (DPP), will face a divided parliament as the DPP lost its majority, making policy implementation a challenge.
• China is expected to continue its military and economic pressure on Taiwan, with analysts predicting increased incursions into Taiwan's Air Defense Identification Zone and potential economic sanctions.
• Despite the pressure from China, an all-out invasion is considered unlikely in the near future.
• The Kuomintang (KMT) party, traditionally more aligned with Beijing, is facing internal conflict over its stance on China, which could impact its future relevance in Taiwan's politics.
• The Taiwan People's Party (TPP), which won eight seats in the parliament, is seen as a potential kingmaker, with its support crucial for either the DPP or KMT to form a majority coalition.