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Taiwan’s political crisis has intensified as President Lai Ching-te warned that the island’s global credibility and economic competitiveness are at risk, urging parliament to withdraw a series of controversial laws opposed by his administration. The dispute highlights growing tensions between the ruling Democratic Progressive Party (DPP) and the opposition-controlled legislature, led by the Kuomintang (KMT) and its ally, the Taiwan People’s Party (TPP).
Although Lai won the presidential election last year, his DPP lost its majority in parliament, giving the opposition greater legislative power. Under Taiwan’s political system, the presidency controls the government, while parliament holds authority over legislation. This division has resulted in frequent clashes, with the opposition pushing through bills that challenge government priorities and fiscal planning.
The latest standoff centers on amendments passed by the opposition to a revenue allocation law that would significantly increase funding for local governments. The government argues that these changes, combined with efforts to reverse pension reforms enacted in 2018, are fiscally unsustainable and could undermine long-term economic stability. Premier Cho Jung-tai escalated the conflict by refusing to enact the revised local government financing law, a move the opposition has condemned as undemocratic.
In a video message shared on social media, President Lai emphasized Taiwan’s role as a key player in the global democratic community. He warned that flawed legislation could weaken Taiwan’s competitiveness and damage international confidence in the country. Lai reiterated his willingness to personally address lawmakers in parliament in an effort to resolve the crisis.
The KMT and TPP have accused the DPP-led government of acting dictatorially by ignoring the will of a democratically elected parliament. KMT spokesperson Niu Hsu-ting cited recent recall elections against KMT lawmakers, none of which succeeded, as evidence that the ruling party has failed to heed public sentiment. He criticized the government for what he described as divisive rhetoric and emotional tactics.
Despite the heated rhetoric, the opposition has so far refrained from launching a vote of no confidence against the premier, a move that could topple the government and potentially trigger new parliamentary elections. As the political deadlock continues, Taiwan faces growing uncertainty at home and heightened scrutiny from the international community.
