In the 2024 presidential election last month, Taiwan’s Democratic Progressive Party (DPP) experienced a significant setback, losing nearly 3 million votes compared to its performance in 2020, with the most pronounced shift occurring among younger voters under the age of 40. The executive branch remains under DPP control, while the legislature has swung to the pro-China Kuomintang (KMT), and the emergent “White” movement, which campaigned primarily on domestic issues via social media, now plays a pivotal role as a critical minority.
This political fragmentation emerges at a time when the global landscape is rapidly evolving, marked by unprecedented macroeconomic conditions, from inflation worries a year ago to concerns now about China’s surge in deflationary exports, potentially causing lasting damage to industries worldwide. Additionally, new technological disruptions, notably in artificial intelligence (AI), underscore the urgency for a cohesive and forward-looking government. Most importantly, as the US-China Cold War 2.0 intensifies, Taiwan’s strategic positioning and internal unity become ever more critical.
The ongoing geopolitical Cold War 2.0 has cemented Taiwan’s position between the two superpowers, a balance unlikely to shift in the foreseeable future. This constancy in geopolitics has prompted a significant shift in Taiwan’s political order, relegating ideological battles over allegiance to China or the US to relics of the past. This is because the nature of Cold War 2.0 and the geopolitical balance around the Taiwan Strait appear to be set in stone. Instead, domestic issues, ripe with potential for positive change, are increasingly dominating the electorate’s concerns. This shift was evidenced by the rapid ascent of the White movement, which has attracted disillusioned voters from both the DPP and KMT.
How can the DPP create a unified and strong government to navigate Taiwan through the turbulence of the future, similar to what Narendra Modi has done for India? A strategic pivot for the DPP could involve embracing a “Taiwan first, jobs first” mantra, focusing on revitalizing Taiwan’s economy and prioritizing pressing domestic concerns such as real wage growth and the cost of living. Proposals grounded in practical considerations, rather than ideological ones—such as importing cheaper energy or supporting industries that serve domestic as opposed to foreign demands, might broaden the DPP’s appeal across the political spectrum and more closely align it with the population’s priorities. In doing so, the DPP might lose some support from its most ardent independence advocates but gain much broader backing by prioritizing economic prosperity and quality of life.
Taiwan’s role on the global stage has never been more crucial, not only because of its geopolitical significance but also due to its pivotal position in the technology sector, particularly in semiconductor manufacturing—a key to the AI era. The DPP’s recognition of this historical moment to reinvent itself could enable it to lead Taiwan towards a stronger, more unified future, and confidently fight for its interests on the international stage. As Taiwan stands at the forefront of major global shifts, a strong and popular leadership is vital not only for Taiwan but also for the global community in the new Cold War era.