MORE DEFENCE SPENDING
With only 12 allies, Taipei lacks diplomatic recognition on the world stage.
But it has its own government, military and currency, and the majority of the 23 million population see themselves as having a distinct Taiwanese identity, separate from the Chinese.
Following in Tsai’s footsteps, Lai is expected to boost defence spending and strengthen ties with democratic governments, especially Washington, Taiwan’s key partner and weapons supplier.
Beijing has long threatened to use force to bring Taiwan under its control — especially if the island declares independence – with Xi upping the rhetoric of “unification” being “inevitable”.
Ahead of Lai’s inauguration, Beijing’s Taiwan Affairs Office, which handles cross-strait issues, called “Taiwan independence and peace in the strait … like water and fire”.
Chinese warplanes and naval vessels maintain a near-daily presence around the island.
Lai has made overtures to resume high-level communications with China, which Beijing severed in 2016 when Tsai took power, but experts say they are likely to be rebuffed.
The DPP has lost its majority in Taipei’s parliament – where a brawl broke out Friday among lawmakers from all three parties – which could make it difficult for Lai to push through his policies.
But many Taiwanese are less worried about the threat of conflict than they are about soaring housing prices, rising cost of living pressures, and stagnating wages.
“If war should break out there would be little I could do,” Jay, a 20-year-old student who gave only his first name, told AFP as he took a photo of the Presidential Office.
“So I will just go with the flow.”