US delegation visits Taiwan after voters defy China

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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Good morning. A high-level US delegation of former top officials will soon be arriving in Taipei, putting to the test China’s restraint in its response to its democratic neighbour’s presidential election.

Taiwan on Saturday elected Lai Ching-te president, giving his Democratic Progressive party an unprecedented third term in office.

China has denounced Lai as a dangerous separatist because he has a record of association with the wing of the DPP that favours formalising Taiwan’s de facto independence.

Analysts said that apart from demonstrating support for Taiwan’s democracy, the US mission’s other probable purpose was to gain a timely and accurate understanding of what Lai was planning to do next.

Here’s more of our coverage of Taiwan’s election:

• What Taiwanese voters’ defiance means for China: Analysts told the FT how they were interpreting China’s muted response to Lai’s victory.

• The FT View: Lai Ching-te’s presidential victory is a moment for moderation from all sides, the editorial board writes.

And here’s what else I’m keeping tabs on today:

• US election: The Republican party’s caucuses in the state of Iowa launch the 2024 race for the White House.

• World Economic Forum: The annual gathering of political and business leaders opens in the Alpine resort village of Davos.

Five more top stories

1. Exclusive: Chinese electric-car maker BYD has held talks about a potential takeover of a lithium producer in Brazil. BYD’s chair in the South American nation, Alexandre Baldy, said discussions had taken place with $2.9bn-valued Sigma Lithium over a possible supply agreement, joint venture or acquisition. Here’s why BYD is hunting for lithium assets in Brazil.

2. The biggest US banks believe American consumers have weathered the Federal Reserve’s cycle of interest rate rises in good shape, but a new poll shows Joe Biden is getting no credit ahead of November’s election. Just 13 per cent of Americans feel they are better off under the US president, the ABC/Washington Post poll released yesterday said.

3. Exclusive: SoftBank founder Masayoshi Son has piled debt on the Silicon Valley mansion he acquired for a record sum, using the showpiece house as security for a $92mn loan. The Japanese billionaire tapped his sprawling nine-acre estate for cash in December 2019, at a time when his company’s fortunes were cracking under the weight of a failed WeWork IPO and Son was struggling to raise billions for a second Vision Fund.

4. Security officials from 83 countries gathered in Davos yesterday to discuss Ukraine’s demands for ending the war with Russia. The active participation of representatives from India, Brazil and Saudi Arabia, countries from the so-called Global South who maintain diplomatic relations with Russia, was hailed as a positive signal by western officials — though China decided not to attend.

5. Reports of plagiarism against the academic Neri Oxman, wife of billionaire hedge fund manager Bill Ackman, are “accurate and well documented”, the chief executive of Business Insider has told staff. In two reports on January 4 and 5, Business Insider claimed Oxman’s doctoral thesis had been “marred by plagiarism”, which led to a war of words on social media between Ackman and the platform.

News in-depth

Russian air attacks on Ukraine have heated up in the new year, with Moscow unleashing unprecedented barrages of missiles and drones aimed at cracking the code of Ukrainian defences. The strikes have been supplemented with Iranian drones and, according to the US, North Korean ballistic missiles too. Russia’s alleged use of North Korean missiles would violate UN sanctions and underlines how the balance of supplies might be moving in Moscow’s favour, officials and military analysts said.

We’re also reading . . . 

• Immigration crackdowns: Anti-immigrant policies may be good politics, but they are questionable economics, writes Ruchir Sharma.

• What is the right age for a politician?: The new French prime minister seems like an infant against America’s gerontocrats.

• Competent jerks: People who progress in the workplace with little regard for colleagues are likely to hit a ceiling, writes Anjli Raval.

Chart of the day

Japanese stocks have risen to their highest levels since 1990 as investors downplay the likelihood of an interest rate increase by the Bank of Japan in the near term.

Take a break from the news

15 years after he quit drinking, Nick Johnstone found himself a surprising new hobby: picking the perfect wines to serve. In this thoughtful essay, Johnstone tells how wine — once a poison — became his sober passion.