Taiwan Deepens Democratic Ties, Shifts from China for Economic Future

• Taiwan, under President Lai Ching-te, is prioritizing cooperation with democratic partners like the US on AI and critical minerals, moving away from economic reliance on China.
• High-level US-Taiwan talks resulted in agreements on economic security and the Pax Silica Declaration, strengthening AI and semiconductor supply chains against China's influence.
• Lai emphasized Taiwan's economic independence and ability to lead global prosperity with democratic allies, contrasting with the previous Kuomintang government's China-centric policies.
• The opposition Kuomintang, however, engaged with Beijing on AI and tourism, advocating for cross-strait cooperation to benefit both sides economically.
• US Senator Roger Wicker expressed disappointment over Taiwan's opposition blocking a significant defense budget, citing rising Chinese threats, while the Kuomintang defended its stance, seeking more budget specifics.

Why It Matters: Taiwan under Lai is strategically aligning with democracies for economic and security strength, despite internal opposition.