Taiwan President Lai Ching-te is facing significant challenges in 2025, as he navigates a complex political landscape both domestically and internationally. Domestically, Lai contends with opposition from the Kuomintang (KMT) and Taiwan People’s Party (TPP), who criticize his leadership style and accuse him of consolidating power. The KMT holds a majority of seats in the legislature but lacks overall control, while the TPP serves as a critical swing vote.
The internal divisions extend to public opinion on issues such as energy policy, where nuclear power remains contentious. A survey by the Center for Asia-Pacific Resilience and Innovation found strong support for nuclear energy among younger voters and KMT supporters, while opinions are split within Lai's Democratic Progressive Party (DPP).
Taiwan's economic outlook is constrained by land, labor, and energy shortages. The semiconductor industry plays a pivotal role in the economy but contributes to wealth disparities due to its concentrated job creation. The government faces fiscal challenges as well, with debates over increasing local government revenue shares potentially impacting national defense funding.
Externally, China continues to exert pressure through various non-military means aimed at destabilizing Taiwan politically. Beijing views Lai as a "dangerous separatist," prompting his administration to implement strategies to reduce economic dependence on China and strengthen ties with other global powers.
Internationally, Taiwan seeks support from allies amid political shifts in these countries. Relations with the United States are particularly crucial under President Donald Trump’s administration, which has expressed concerns about Taiwan’s defense spending and trade practices.
Lai aims to maintain stability across the Strait while engaging key figures in Washington who are supportive of Taiwan. As he approaches potential re-election in 2028, his ability to manage these multifaceted challenges will be critical for his political future.
