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    China Shows Few Signs of Tilting Economy Toward Consumers in New Plan

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    The Communist Party rebuffed calls from economists to shift away from investment-led growth and toward consumer spending.China engaged in a monthslong drumbeat of anticipation that a Communist Party leaders’ meeting would show the way to a new era of growth for the slowing economy.The outcome was a plan released on Sunday offering more than 300 steps on everything from taxes to religion. It echoed many familiar themes, like an emphasis on government investments in high-tech manufacturing and scientific innovation. There was little mention of anything that would directly address China’s plunging real estate prices or the millions of unfinished apartments left behind by failed developers.Many economists had called for a comprehensive effort to rebalance the Chinese economy away from investment and toward consumer spending. But the document — roughly 15,000 words in the English translation — made a brief and cautious call to “refine long-term mechanisms for expanding consumption.”The Communist Party’s Central Committee doubled down on industrial policy. The party promised to “promote the development of strategic industries” in eight sectors, from renewable energy to aerospace. Those were essentially the same industries as in the country’s decade-old Made in China 2025 plan to replace imports of high-tech goods with locally produced products, as part of a national push for self-reliance.A similar plan in 2013 had many provisions that have never been put into effect, such as a plan to roll out a nationwide property tax to raise money for local governments.Many of these local governments have fallen far into debt since then. Sunday’s plan proposed a different solution: The central government should become responsible for more of the country’s spending. It also called for expanding local tax revenues, but had only a bare mention of a real estate tax.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Taiwan Loses Ally Nauru After Electing President Beijing Loathes

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      The tiny Pacific island of Nauru severed relations with Taiwan, a move that boosts China’s regional sway and was seemingly timed to Taiwan’s contentious recent election.Just two days after Taiwan elected as its next leader Lai Ching-te, whom Beijing sees as a staunch separatist, it lost a diplomatic ally in its rivalry with China. Nauru, a tiny freckle of land in the Pacific Ocean, announced that it would be severing diplomatic relations with Taiwan, effective immediately.The Chinese Ministry of Foreign Affairs said it welcomed the decision by Nauru and is ready to establish relations with it. Taiwan’s foreign ministry indicated that it had no doubt that Beijing had orchestrated the Pacific island’s shift, stating that “China has been actively courting Nauru’s political leaders for a long time, and using economic inducements to bring about a change of direction in the country’s diplomacy.”A Taiwanese deputy foreign minister, Tien Chung-kwang, told a briefing in Taipei, Taiwan’s capital, that China had orchestrated Nauru’s severing of relations to happen in the immediate wake of Taiwan’s election on the weekend.“The intent is to strike a blow against the democracy and freedom of which the Taiwanese people are so proud,” Mr. Tien said. He said Taiwan had pre-emptively severed relations with Nauru after learning of its impending shift in loyalties.Such moves from Beijing have been widely expected in Taiwan in the wake of the victory for Mr. Lai, whose Democratic Progressive Party has campaigned on policies to distance the self-governing island democracy from China. Beijing claims Taiwan is its territory, and Chinese officials harbor a particular dislike for Mr. Lai, whom they call a pro-independence threat. Mr. Lai has said he wants to protect Taiwan’s current status as a de facto independent democracy.Nauru is the latest small nations to abruptly break relations with Taiwan, joining such countries as Honduras and Nicaragua in switching diplomatic allegiance to China. And it is one of a growing number of Pacific island nations that China has aggressively courted in its bid to dominate the region.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

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      China Failed to Sway Taiwan’s Election. What Happens Now?

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      Beijing loathes the new president, Lai Ching-te. He aims to protect the status quo with caution and American help, but tensions are likely to rise.China’s leader, Xi Jinping, has tied his country’s great power status to a singular promise: unifying the motherland with Taiwan, which the Chinese Communist Party sees as sacred, lost territory. A few weeks ago, Mr. Xi called this a “historical inevitability.”But Taiwan’s election on Saturday, handing the presidency to a party that promotes the island’s separate identity for the third time in a row, confirmed that this boisterous democracy has moved even further away from China and its dream of unification.After a campaign of festival-like rallies, where huge crowds shouted, danced and waved matching flags, Taiwan’s voters ignored China’s warnings that a vote for the Democratic Progressive Party was a vote for war. They made that choice anyway.Lai Ching-te, a former doctor and the current vice president, who Beijing sees as a staunch separatist, will be Taiwan’s next leader. It’s an act of self-governed defiance that proved what many already knew: Beijing’s arm-twisting of Taiwan — economically and with military harassment at sea and in the air — has only strengthened the island’s desire to protect its de facto independence and move beyond China’s giant shadow.“The more hard-line, tougher approach hasn’t worked,” said Susan Shirk, a research professor at the University of California, San Diego, and the author of “Overreach: How China Derailed Its Peaceful Rise.” “That’s the reality of Taiwanese politics.”That evolution, cultural and political, comes with risks. Mr. Lai’s victory forces Mr. Xi to face a lack of progress. And while China’s full response will play out over months or years, China’s Taiwan affairs office said Saturday night that the election cannot change the direction of cross-strait relations, effectively ensuring that the dynamic of brinkmanship and stress will continue and most likely intensify.After his win, Mr. Lai promised to seek a balanced approach to relations with Beijing.Lam Yik Fei for The New York TimesChina and the United States have made Taiwan a test of competing sensitivities and visions. To Beijing, the island is a remnant of its civil war that the United States has no business meddling with. To Washington, it is the first line of defense for global stability, a democracy of 23 million people and the microprocessor factory for the world.The gargantuan stakes add gravity to every word or policy that Mr. Lai or his party might deliver now and after his inauguration in May. With Taiwan’s sense of self and China’s expectations in conflict, Mr. Xi is not expected to sit idly by.Before the election, in editorials and official comments, Chinese officials painted Mr. Lai as a villain, calling him a stubborn “Taiwan independence worker,” a “destroyer of cross-strait peace” and potentially the “creator of a dangerous war.”During the campaign, Mr. Lai, 64, a veteran politician respected by supporters for his quiet determination, said that Taiwan did not need formal independence. In a news conference after his victory, he said he would seek a balanced approach to cross-strait relations including “cooperation with China,” following the path of his predecessor, Tsai Ing-wen.But there is little chance of China changing its opinion.“Lai Ching-te is an impulsive and politically biased figure, so we cannot rule out the possibility that unpredictable and unknown developments may occur during his tenure,” said Zhu Songling, a professor of Taiwan studies at Beijing Union University.“I’m afraid it’s very dangerous,” he added, noting that Mr. Xi’s views on Taiwan were clear. That includes his insistence that force can be used if necessary.China’s top leader, Xi Jinping, and President Biden in California in November. Warnings about Taiwan have become a staple of U.S.-China diplomacy.Doug Mills/The New York TimesWestern scholars of Chinese politics are not much more optimistic.“The next four years will be anything but stable in U.S.-China and cross-strait relations,” said Evan S. Medeiros, a professor of Asian studies at Georgetown University.Like other analysts, he said to expect a familiar suite of pressure tactics.At the very least, China will keep trying to manipulate Taiwan’s politics with disinformation, threats and economic incentives. Chinese officials have also hinted they could target trade, eliminating more tariff concessions.Expanded military drills are another possibility. Chinese fighter jets, drones and ships already encroach on Taiwan almost daily.Beijing has also shown that it will keep prodding Washington to pressure Taiwan and to cut military support. Messages of alarm are becoming a common feature of U.S.-China diplomacy.In Washington, on the eve of Taiwan’s election, Liu Jianchao, the head of the Chinese Communist Party’s international department, met with Secretary of State Antony J. Blinken. The United States said Mr. Blinken “reiterated the importance of maintaining peace and stability across the Taiwan Strait.”Mr. Liu, based on other official statements, most likely warned the United States not to intervene “in the Taiwan region” — a complaint sparked by an announcement that a delegation of former officials would head to Taipei after the election. Such visits have followed past elections. China’s Foreign Ministry condemned “the American side’s brazen chattering.”There are no plans in Washington to go silent, however, or constrain cooperation. Quite the opposite. Last year, the Biden administration announced $345 million in military aid for Taiwan, with weapons drawn from American stockpiles. Bills in Congress would also tighten economic ties to Taiwan, easing tax policy and laying a foundation for economic sanctions against China if it attacks.Taiwanese forces during an anti-landing drill last summer. The U.S. has pledged $345 million in military aid to the island.Lam Yik Fei for The New York TimesHaving worked with the Americans as vice president, Mr. Lai can move faster, analysts said, possibly into more sensitive areas.The United States could increase collaboration on cybersecurity, strengthening communication networks to a point that blurs the line with (or prepares for) intelligence sharing. It could seek to place military logistics equipment on the island — a strategy the Pentagon is introducing throughout the region.It is also an open secret that American military advisers, mostly retired officers, have a growing presence in Taiwan. Some Taiwanese officials call them “English teachers.” Under Mr. Lai, many more could be on the way.“Beijing has been turning a blind eye, so the question is: What size of that presence will cross the Rubicon?” said Wen-ti Sung, a political scientist at the Australian National University’s Taiwan Studies Program. He added: “Hopefully each additional step will not be seen as overtly provocative to elicit or justify a massive Chinese reaction.”War, of course, is not inevitable. It may be less likely right now, when China is busy with a dismal economy and the United States with wars in Europe and the Middle East.Some analysts also hope that Mr. Xi will find a way to claim victory in the election and step back from antagonism. With a third-party candidate, Ko Wen-je, winning 26 percent of the vote with a vague focus on a middle path in China relations, Mr. Lai won with just 40 percent.“It’s in China’s national interest to expand the path of peaceful integration so they won’t have to fight,” Professor Shirk said. “There are a lot of people watching this interaction and Beijing’s reaction — all the investors are watching it too.”In Taiwan, however, there may be little Mr. Xi can do to polish China’s image. In recent surveys, less than 10 percent of Taiwanese respondents considered China trustworthy.“We have seen too many examples of what Xi did to Hong Kong and how he treated his people,” said Cheng Ting-bin, 56, a teacher in Taipei who voted for Mr. Lai.Most Taiwanese see their future elsewhere. On Saturday, many said they hoped the government could leverage the powerful semiconductor industry to build connections to Southeast Asia and Europe.A crowd celebrating Mr. Lai’s win on Saturday. Relations with China were less dominant than usual as an election issue.Lam Yik Fei for The New York TimesDuring the campaign, any identification with China seemed to have been erased. Though Taiwan’s official name is the Republic of China, a holdover from when Chinese nationalists fled there, R.O.C. references were hard to find. At Mr. Lai’s rallies, supporters wore shimmering green jackets with “Team Taiwan” written in English across the back.Even the Nationalist Party, known for favoring closer ties with Beijing, emphasized deterrence, the status quo and Taiwanese identity. Its candidate, Hou Yu-ih, spoke with such a strong Taiwanese accent that Mandarin speakers unfamiliar with local inflections had a hard time understanding him.In many ways, the election was less of a referendum on China policy than usual. Cost-of-living issues became more dominant in part because the candidates’ platforms on foreign affairs all aligned with what most people said they wanted: a stronger military, closer ties with the democratic world, and a commitment to the status quo that avoids provoking Beijing but also seeks to tiptoe out of its orbit.“What we want is just to preserve our way of life,” said Alen Hsu, 65, a retiree who said his father had come from China and his son serves in the Taiwanese Air Force.“China,” he added, “simply cannot be trusted.”John Liu More

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      Taiwan’s Opposition Splits After Collapse of Unity Bid

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      The split over a proposed joint ticket bolsters the governing party candidate’s chances in the coming presidential election. That won’t please Beijing.For weeks, Taiwan’s two main opposition parties were edging toward a coalition, in a bid to unseat the island democracy’s governing party in the coming presidential election, an outcome that Beijing would welcome. The election, one elder statesman from Taiwan’s opposition said, was a choice between war and peace.This week, though, the two parties — which both argue that they are better able to ensure peace with China — chose in spectacular fashion to go to war against each other. An incipient deal for a joint presidential ticket between the long-established Nationalist Party and the upstart Taiwan People’s Party unraveled with the speed, melodrama and lingering vitriol of a celebrity wedding gone wrong.A meeting that was opened to journalists on Thursday seemed to have been meant as a show of good will within the opposition. But it featured sniping between rival spokesmen, a long-winded tribute to the spirit of Thanksgiving by Terry Gou — a magnate turned politician trying to cajole the opposition toward unity — and mutual accusations of bad faith between the two presidential candidates who had been trying to strike a deal: Hou Yu-ih of the Nationalist Party and Ko Wen-je, the founder of the Taiwan People’s Party.Mr. Gou tried to break the icy tensions at one point by saying that he needed a bathroom break.“I don’t want a silent ending on this Thanksgiving Day,” he later told journalists after Mr. Hou and his two allies had left the stage. “But unfortunately it looks like it will be a silent ending.”Friday was the deadline for registering for Taiwan’s election, which will be held on Jan. 13, and by noon both Mr. Hou and Mr. Ko had officially registered as presidential candidates, confirming that there would be no unity ticket. Mr. Gou, who had also thrown his hat in the ring, withdrew from the race.Taiwan’s young, vigorous democratic politics has often included some raucous drama. Yet even experienced observers of the Taiwanese scene have been agog by this week, and baffled as to why the opposition parties would stage such a public rupture over who would be the presidential candidate on a unity ticket, and who would accept the vice presidential nomination.“It really defies theories of coalition building,” Lev Nachman, a political scientist at National Chengchi University in Taipei, said of the week’s bickering. “How do you tell undecided voters ‘still vote for me’ after having a very publicly messy, willfully uninformed debate about who ought to be first and who ought to be second?”The collapse of the proposed opposition pact could have consequences rippling beyond Taiwan, affecting the tense balance between Beijing — which claims the self-governing island as its own — and Washington over the future status of the island.The situation also makes it more likely that Taiwan’s vice president, Lai Ching-te, the presidential candidate for the governing Democratic Progressive Party, or D.P.P., will win the election — a result sure to displease Chinese Communist Party leaders.Mr. Lai’s party asserts Taiwan’s distinctive identity and claims to nationhood, and has become closer to the United States. China’s leaders could respond to a victory for him by escalating menacing military activities around Taiwan, which sits roughly 100 miles off the Chinese coast.A victory for the Nationalists could reopen communication with China that mostly froze shortly after Tsai Ing-wen from the Democratic Progressive Party was elected president in 2016. And a third successive loss for the Nationalists, who favor closer ties and negotiations with Beijing, could undercut Chinese confidence that they remain a viable force.Lai Ching-te, Taiwan’s vice president, and a candidate from the Democratic Progressive Party. A split between Mr. Hou and Ko Wen-je of Taiwan People’s Party may benefit his campaign.I-Hwa Cheng/Agence France-Presse — Getty ImagesTaiwan’s first-past-the-post system for electing its president awards victory to the candidate with the highest raw percentage of votes. Mr. Lai has led in polls for months, but his projected share of the vote has sat below 40 percent in many surveys, meaning that the opposition could claw past his lead if it coalesced behind a single candidate. Mr. Hou and Mr. Ko for months sat around the mid- to high 20s in polls, suggesting that it could be hard for either to overtake Mr. Lai unless the other candidate stepped aside.“This may scare off moderate voters who might have been into voting for a joint ticket for the sake of blocking the D.P.P.,” Mr. Nachman said of the falling out between the opposition parties. “Now those moderate voters will look at this team in a different light.”For now, many Taiwanese people seem absorbed — sometimes gleeful, sometimes anguished — by the spectacle of recent days. “Wave Makers,” a recent Netflix drama series, showed Taiwanese electoral politics as a noble, if sometimes cutthroat, affair. This week was more like the political satire “Veep.”Last weekend, the Nationalist Party and Taiwan People’s Party appeared poised to settle on a unity ticket, with each agreeing to decide on their choice of joint presidential nominee — Mr. Hou or Mr. Ko — by examining electoral polls to determine who had the strongest shot at winning.But teams of statistical experts put forward by each party could not agree on what polls to use and what to make of the results, and the parties became locked in days of bickering over the numbers and their implications. At news conferences, rival spokespeople brandished printouts of opinion poll results and struggled to explain complex statistical concepts.The real issue was which leader would claim the presidential nominee spot, and the quarrel exposed deep wariness between the Nationalists — a party with a history of over a century that is also known as the Kuomintang, or K.M.T. — and the Taiwan People’s Party, which Mr. Ko, a surgeon and former mayor of Taipei, founded in 2019.“The K.M.T., as the grand old party, could never make way for an upstart party, so structurally, it was very difficult for them to work out how to work together,” said Brian Hioe, a founding editor of New Bloom, a Taiwanese magazine that takes a critical view of mainstream politics. On the other hand, Mr. Hioe added, “Ko Wen-je’s party has the need to differentiate itself from the K.M.T. — to show that it’s independent and different — and so working with the K.M.T. would be seen by many of his party membership as a betrayal.”A supporter of Kuomintang, or the long-established Nationalist Party, holding a flag outside the Central Election Commission in Taipei on Friday.Annabelle Chih/Getty ImagesMa Ying-jeou, the Nationalist president of Taiwan from 2008 to 2016, stepped in to try to broker an agreement between his party and Mr. Ko. Hopes rose on Thursday when Mr. Hou announced that he would be waiting at Mr. Ma’s office to hold negotiations with Mr. Ko.But it quickly became clear that Mr. Ko and Mr. Hou remained divided. Mr. Ko refused to go to Mr. Ma’s office, and insisted on talks at another location. Mr. Hou stayed put in Mr. Ma’s office for hours, waiting for Mr. Ko to give way. Eventually, Mr. Hou agreed to meet at the Grand Hyatt hotel in Taipei, and party functionaries announced with solemn specificity that the talks would happen in Room 2538.Dozens of journalists converged on the hotel, waiting for a possible announcement. Expectations rose when Mr. Hou entered a conference room where the journalists and live-feed cameras waited. But he sat with a fixed smile for about 20 minutes before Mr. Ko arrived, glowering. Mr. Gou, the magnate, opened proceedings with his tribute to Thanksgiving and calls for unity, recalling his wedding ceremony in the same hotel. But it soon became clear that Mr. Hou and Mr. Ko were no closer.On Friday, Taiwanese people had shared images online and quips ridiculing the opposition’s public feuding. Photographs of Room 2538, a suite at the Grand Hyatt, circulated on the internet. Some likened the spectacle to “The Break-up Ring,” a popular Taiwanese television show that featured quarreling couples and their in-laws airing their grievances on camera.Some drew a more somber conclusion: that dysfunction on the opposition side left Taiwan’s democracy weaker.“In a healthy democracy, No. 2 and No. 3 will collaborate to challenge No. 1,” said Wu Tzu-chia, the chairman of My Formosa, an online magazine. “This should be a very rigorous process, but in Taiwan, it’s become very crude, like buying meat and vegetables in the marketplace.” More

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      Politics Complicates Chinese Reaction to U.S. Visit by Taiwan’s President

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      For Beijing, showing displeasure too openly carries risks, particularly of harming the chances for its preferred party in Taiwan’s coming presidential election.China fired off a volley of condemnations on Thursday after Taiwan’s president, Tsai Ing-wen, met the speaker of the U.S. House of Representatives, Kevin McCarthy, but it held off from the kind of military escalation that threatened a crisis last summer, when Mr. McCarthy’s predecessor visited Taiwan.China’s angry reaction to the meeting between Ms. Tsai and Mr. McCarthy in California followed weeks of warnings from Beijing, which treats Taiwan as an illegitimate breakaway region whose leaders should be shunned abroad. Despite the combative words, any retaliation by Beijing in coming days may be tempered by the difficult calculations facing China’s leader, Xi Jinping, including over Taiwan’s coming presidential race.Soon after the meeting at the Ronald Reagan Presidential Library, China’s ministry of defense, foreign ministry and other offices in Beijing issued warnings to Taiwan and the United States.“Do not go down this dark path of ‘riding on the back of the U.S. to seek independence,” said the Chinese Communist Party’s office for Taiwan policy. “Any bid for ‘independence’ will be smashed to pieces by the power of sons and daughters of China opposed to ‘independence’ and advancing unification.”So far though, Beijing’s pugnacious language has not been matched by a big military response like the one last year. After the previous speaker, Nancy Pelosi, visited Taiwan in August in a show of solidarity, China’s People’s Liberation Army held days of miliary exercises simulating a blockade of Taiwan.Early Thursday, Taiwan’s Ministry of National Defense detected one Chinese military plane that entered the “air defense identification zone” off Taiwan — an informal area where aircraft are supposed to declare their presence — and three Chinese navy vessels in seas off the island. Last year, China announced its blockade exercise on the same day that Ms. Pelosi arrived in Taipei.Taiwan military vessels docked at a Navy base in Suao, Taiwan, on Thursday.Lam Yik Fei for The New York Times“China is not doing the kind of saber rattling that they were doing before the Pelosi visit. They haven’t set the stage in the same way,” said Patrick M. Cronin, the Asia-Pacific security chair at the Hudson Institute, who attended a closed-door speech Ms. Tsai gave in New York last week. “They’re going to have their hands close around the throat of Taiwan, but we’ll have to see how they squeeze.”Mr. Xi, anointed last month to a third term as president, wants to deter Taiwan from high-level contacts abroad. Yet he is also trying to improve China’s relations with Western governments, restore economic growth and aid the chances of his favored party in Taiwan’s presidential election in January. An extended military crisis over Taiwan could hurt all three goals, especially the last one.“On the one hand, there’s a desire to signal to Taiwan, to the U.S. and also to Taiwan voters, that efforts to raise Taiwan’s international profile are unacceptable from China’s standpoint,” said Scott L. Kastner, a professor of politics at the University of Maryland. But, he added, “on balance the incentives are for the People’s Republic of China to act with more restraint than usual in the run-up to the election.”China’s ties with Europe, Australia and other Western governments have been damaged by disputes over Covid, Chinese political influence abroad, and Mr. Xi’s ties to Russia. The French president, Emmanuel Macron, is in China this week, and he is among the European leaders who Mr. Xi hopes can be coaxed away from Washington’s hard line on China.President Emmanuel Macron of France is welcomed by Chinese Premier Minister Li Qiang at the Great Hall of the People on Thursday in Beijing.Pool photo by Thibault CamusA menacing display by the People’s Liberation Army could also hurt the presidential hopes of Taiwan’s main opposition party, the Nationalists, which favors stronger ties with China. Ms. Tsai must step down next year, and a crisis in the Taiwan Strait could help galvanize support for her Democratic Progressive Party and undercut the Nationalists’ case for more cooperation with Beijing.“Beijing will want to visibly register its displeasure, lest its leaders be accused at home of tolerating Taiwan’s efforts to move further away from China,” said Ryan Hass, a former adviser on China policy to President Obama and now a senior fellow at the Brookings Institution. “At the same time, Beijing also will want to preserve some headroom for further escalation should future circumstances require.”In Beijing and Taipei, memories linger of 1995, when Lee Teng-hui, then president of Taiwan, gave a speech celebrating Taiwan’s democratic transformation while visiting the United States. China condemned Mr. Lee’s visit and responded with military exercises that resumed in 1996. President Lee soundly won another term that year, despite Beijing’s missiles.President Lee Teng-hui of Taiwan delivering a lecture at his alma mater, Cornell University, in 1995. Bob Strong/Agence France-Presse — Getty ImagesIn 2020, Ms. Tsai rebounded from low approval ratings to win a second term after a Beijing-backed crackdown on protests in Hong Kong repulsed voters in Taiwan.“Beijing likely has learned from past experience that whenever it uses tough fire-and-fury rhetoric around Taiwan’s presidential election, usually that invites voter backlash,” said Wen-Ti Sung, a political scientist with the Taiwan Studies Program of the Australian National University in Canberra.Still, if Taiwanese voters felt that Ms. Tsai was goading Beijing, that could hurt her standing and her party’s image. Her trip to the United States reflected her careful calculus: She sought to deepen Taiwan’s ties with Washington, while avoiding giving China an excuse for a new round of threatening military exercises.In California, Ms. Tsai thanked the Republican and Democrat lawmakers who attended. “Their presence and unwavering support reassure the people of Taiwan that we are not isolated,” she said, standing next to Mr. McCarthy.Ms. Tsai and Mr. McCarthy at a news conference at the Ronald Reagan Presidential Library on Wednesday.Philip Cheung for The New York TimesMany in Taiwan, especially supporters of Ms. Tsai’s government, believe that such meetings are important, despite Beijing’s warnings.“Taiwan is already very alone, and it’s very dangerous if we don’t show we have friends, especially the United States,” said Kao Teng-sheng, a businessman in Chiayi, a city in southern Taiwan, who previously ran a factory in southern China. “If she did not meet McCarthy, that would also be dangerous for Taiwan. It would look like we are panicking.”Taiwan’s presidential race is likely to come down to a contest between the Democratic Progressive Party’s Lai Ching-te, currently the vice president, and a Nationalist contender, possibly Hou You-yi, the popular mayor of New Taipei City. Beijing would prefer a Nationalist leader in Taipei, and over recent days has been hosting, and feting, Ma Ying-jeou, the previous Nationalist president.“In military threats, China’s attitude won’t soften, but it will also invite those like Ma Ying-jeou to China,” said I-Chung Lai, a former director of the China affairs section of the Democratic Progressive Party and now a senior adviser to the Taiwan Thinktank in Tapei.Beijing’s dismal relations with Washington may also factor into Mr. Xi’s calculations. At a summit in November, he and President Biden tried to rein in tensions over technology bans, military rivalry, human rights, and Chinese support for Russia.U.S. President Biden meeting with President Xi Jinping of China in Bali, Indonesia, in November 2022.Doug Mills/The New York TimesThose efforts stalled in February after the Biden administration revealed that a Chinese surveillance balloon was floating over the United States, and Mr. Xi affirmed his support for Vladimir V. Putin, the Russian president, during a summit in Moscow, despite the Russia’s invasion of Ukraine. A new crisis over Taiwan could push the strains between Beijing and Washington to a dangerous limit.Some Taiwanese analysts have said that China may announce some military exercises around Taiwan after Mr. Ma, the visiting former president, returns to Taipei on Friday.Even with Taiwan’s looming election, “if the Chinese Communist Party faces what it believes is a violation of its very core fundamental positions or interests, then it seems it won’t go soft on Taiwan,” said Huang Kwei-Bo, a professor of international relations at the National Chengchi University in Taipei who is a former deputy secretary-general of the Nationalist Party. More

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      Your Wednesday Briefing: A Downed U.S. Drone

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      Also, U.S. markets seem to stabilize and Xi Jinping tightens his control over China’s economy.The U.S. aircraft was an MQ-9 surveillance drone.Fabrizio Villa/Getty ImagesA downed droneA Russian fighter jet struck a U.S. surveillance drone over the Black Sea, U.S. officials said, hitting its propeller and causing its loss in international waters. Russia denied that there had been a collision, saying the drone’s own maneuvers caused it to crash.If a collision is confirmed, it would be the first known physical contact between the two nations’ militaries as a result of the war in Ukraine.U.S. officials said the drone’s operators brought the craft down in the Black Sea after the collision, which the U.S. military said was the result of “reckless” actions by Russian pilots. The U.S. aircraft was conducting “routine operations in international airspace,” an Air Force general said.A White House spokesman said that there had been similar “intercepts” by Russian aircraft in recent weeks, calling them “not an uncommon occurrence,” but that this was the first to result “in the splashing of one of our drones.” He called the behavior of the Russians “unsafe and unprofessional.” Context: Russia’s invasion has turned the Black Sea, which is dominated by the Russian Navy, into a battle zone. Ukraine has attacked Russian naval vessels there, most notably in April, when a Ukrainian missile sank the Moskva, the flagship of Russia’s Black Sea fleet.Response: The State Department summoned Russia’s ambassador in Washington to receive the U.S.’s formal objection over the drone downing.Other updates:Russia pounded towns in the southern Kherson region, Ukrainian officials said, as Ukraine prepared for a counteroffensive.Russia said it would extend a deal allowing Ukraine to export grain, but only for 60 days rather than the 120 sought by Ukraine.Yevgeny Prigozhin, the founder of the Wagner private military company, said his force would recede after the battle for Bakhmut. The shift coincides with speculation about Prigozhin’s political ambitions.Stocks jumped a day after the turmoil.Justin Lane/EPA, via ShutterstockU.S. economy seems to stabilizeMarkets closed up yesterday, after investors seemed to shrug off the recent collapse of two midsize banks and the threat of a crisis appeared to wane. Fresh inflation data, largely in line with expectations, also added to the sense of relief.Stocks: The S&P 500 jumped 1.7 percent yesterday. Midsize banking stocks, which had plummeted on Monday, rebounded.Banks: The Justice Department opened an investigation into the collapse of Silicon Valley Bank, my colleagues report.Inflation: It eased to 6 percent on an annual basis, which matched an expected slowdown. But in February inflation rose over the prior month.Now, all eyes are on the Federal Reserve.Some of the inflation details were worrying, including the costs of housing and other goods and services. Generally, that would indicate that the Fed would keep raising rates in hopes of cooling down the economy.But higher interest rates raise costs for companies, and were at the root of the banking stress. Fewer or smaller rate increases could help stocks to rebound after the deep uncertainty set off by the banking crisis.In other business news: Meta will lay off another 10,000 people, roughly 13 percent of its workforce.Xi Jinping was elected to a third term as China’s president on Friday.Agence France-Presse — Getty ImagesXi reins in the economyXi Jinping is dealing with China’s economic problems the same way that he has approached issues for most of his decade in power: by getting the Communist Party more involved.At the annual gathering of China’s national legislature, which ended Monday, Xi introduced a series of sweeping changes to the regulatory framework that would allow the party to assert more direct control over financial policy and bank regulation.China’s economy, which is growing near its slowest pace in decades, is teetering from a real estate sector in crisis. Xi needs bankers to comply with his vision and allocate capital in the ways that China wants its money spent, without jeopardizing the financial system.Heads are already starting to roll. Last month, Tian Huiyu, the former head of one of China’s biggest commercial lenders, was charged with abuse of power and insider trading. And Bao Fan, a prominent investment banker, vanished.Challenges: The financial sector is struggling to respond to the shaky balance sheets of local governments — overrun with debt after paying for “zero Covid” policies — and banks that lend to them.Related: China will start issuing visas to foreign tourists again today, Reuters reports.Analysis: On “The Ezra Klein Show,” Dan Wang, an expert on U.S.-China competition, explores how China’s growth trajectory halted.THE LATEST NEWSAround the WorldThe three leaders described the naval partnership as a critical way to confront China. Haiyun Jiang/The New York TimesThe leaders of the U.S., Britain and Australia unveiled plans to develop a fleet of nuclear-powered submarines, part of an effort to counter China.Major protests are expected in France today before both houses of Parliament vote tomorrow on President Emmanuel Macron’s pension reform.The 2026 World Cup will have 48 teams, up from the current 32, and 24 more games.Other Big StoriesCyclone Freddy, a record-breaking storm, killed nearly 200 people in Malawi.A multibillion-dollar oil project led by French and Chinese companies in Uganda and Tanzania could threaten pristine habitats and Lake Victoria, a source of freshwater for 40 million people.In Antakya, a Turkish city hit hard by the earthquake, the damage is so profound that officials estimate that 80 percent of the remaining buildings will need to be demolished.A Morning Read Julio Sosa/The Daily PennsylvanianAmy Wax, a tenured law professor at the University of Pennsylvania, has said publicly that “on average, Blacks have lower cognitive ability than whites” and that the U.S. is “better off with fewer Asians.”The university is now grappling with a conundrum: Is she exercising her right to free speech, or should she be fired?Lives lived: Dr. Jiang Yanyong, who helped expose China’s SARS crisis in 2003, was celebrated as a hero, then punished for denouncing the Tiananmen Square crackdown. He died at 91.Masatoshi Ito introduced the American convenience store 7-Eleven to Japan, starting a retail revolution there. He died at 98.ARTS AND IDEASA new chatbotOpenAI unveiled an update to ChatGPT, its revolutionary chatbot, just four months after the program stunned the tech world with its ability to answer complex questions and mimic human emotions. The update, called GPT-4, ups the ante in the lucrative AI arms race.My colleagues tested GPT-4. It’s more precise, but it has a few of the old quirks.Developments: It can achieve impressive scores on standardized tests like the SAT, summarize complex news articles and wow doctors with its medical advice. It can answer questions about images; for example, if it’s given a photo of the inside of a fridge, it can suggest recipes based on what’s inside. Its jokes are almost funny.Challenges: GPT-4 still makes things up, a problem that researchers call “hallucination.” It can’t really talk about the future.“Though it’s an awfully good test taker,” my colleagues write, GPT-4 “is not on the verge of matching human intelligence.”Society: Chatbots are shifting the way we learn and work. But even the most impressive systems tend to complement, not replace, skilled workers. Morgan Stanley Wealth Management is building a system that will serve information from company documents to financial advisers.PLAY, WATCH, EATWhat to CookMelina Hammer for The New York TimesStart brining your homemade corned beef so it’s ready for St. Patrick’s Day this Friday.What to ReadIn “Y/N,” a bored young woman in thrall to a K-pop band buys a one-way ticket to Seoul.What to WatchIn “Punch,” by the New Zealand writer-director Welby Ings, a young boxer befriends a queer outcast and shifts his priorities.RelationshipsHow to make friends as an introvert.Now Time to PlayPlay the Mini Crossword, and a clue: Gossip (three letters).Here are the Wordle and the Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. See you next time. — AmeliaP.S. Paul Sonne, who has covered national security for The Washington Post and The Wall Street Journal, is our newest Russia correspondent.“The Daily” is on the Silicon Valley Bank collapse.Send us your feedback. You can reach us at briefing@nytimes.com. More

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      Your Monday Briefing: China’s Saudi-Iran Deal

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      Also, Xi Jinping loyalists stack China’s leadership and Australia revives an Aboriginal alcohol ban.An Iranian newspaper with a photo of the top diplomats from China, Iran and Saudi Arabia.Majid Asgaripour/West Asia News Agency, via ReutersChina brokers a Middle East dealSaudi Arabia and Iran announced that they had agreed to re-establish diplomatic ties on Friday after years of fighting proxy conflicts. The deal, facilitated by China, highlights Beijing’s growing importance in the Middle East — and, some say, the U.S.’s waning influence there.Saudi Arabia and Iran said that they would patch up a seven-year split by reactivating a lapsed security cooperation pact, and that each would reopen an embassy in the other country. But differences run deep, and it remained unclear how far the rapprochement would actually go.China’s involvement was a surprise and signaled Xi Jinping’s ambitions as a global statesman amid a shift in longstanding alliances and rivalries. “This is among the topsiest and turviest of developments anyone could have imagined,” wrote Peter Baker, our chief White House correspondent.Some Gulf Arab officials say that they can no longer rely on the U.S. to guarantee their security and that China is ready to offer weapons, technology and investment with no strings attached. And Crown Prince Mohammed bin Salman, Saudi Arabia’s de facto ruler, is trying to prove that the kingdom is not just an American “client state.”But other analysts cautioned that Prince Mohammed was simply taking a pragmatic approach. While the U.S. remains the kingdom’s dominant security partner, they say, Washington could not have brokered a deal, given its deeply strained relations with Iran.Iran’s gains: The deal could be a relief for the country, which is facing domestic unrest and an economy waylaid by harsh sanctions.Saudi Arabia’s gains: The pact could help quiet the regional tensions that have inflamed costly wars, like the one in Yemen, which have deterred potential investors.Israel’s fears: Its hopes for an anti-Iranian coalition with Saudi Arabia may be dashed.Saudi nuclear fears: Officials have repeatedly expressed fear over Iran’s nuclear program, saying that they would be the foremost target for any attack. In exchange for normalizing relations with Israel, the kingdom wants security assurances from the U.S. and help developing a civilian nuclear program.Xi Jinping solidified his status as China’s most powerful leader in decades.Noel Celis/Agence France-Presse — Getty ImagesChina’s new leadershipXi Jinping swept into an unprecedented third term as China’s president on Friday. The unanimous vote cemented his dominance, as Xi steels China for an era of superpower rivalry and seeks to revive a battered economy.The meeting of the National People’s Congress, which ends today, will also elevate new leaders for the first time in five years — many of them Xi’s loyalists. His new No. 2, Li Qiang, faces the challenge of reviving economic growth after three years of Covid-19 restrictions. Li oversaw the bruising lockdown in Shanghai last year and will probably extend a hand to a wary private sector.On Friday, the National People’s Congress also approved a series of regulatory changes that reflect Xi’s efforts to centralize Communist Party control.Some changes are aimed at stabilizing the financial sector and growing the power of the central bank amid a rolling real estate crisis. Others seek to boost tech and scientific innovation to compete with the West. And China will centralize how its data — which it views as the backbone of its economy in the future — is managed.“I’m a Vietnam veteran, and I couldn’t even buy a beer,” said Geoff Shaw, left.Tamati Smith for The New York TimesAn Aboriginal alcohol banAustralian authorities have reinstated a ban that prevented people living in most Aboriginal communities from buying takeaway alcohol. The move has reignited debates about race and control.The ban was in place from 2007 until last July, when the Northern Territory let it expire, calling it racist. But little had been done in the intervening years to address the communities’ severe underlying disadvantages. Once alcohol flowed again, there was an explosion of crime.Opponents believe that the ban, imposed by a largely white leadership, replicates the effects of colonialism and distracts from practical issues. Others argue that the benefits — like reducing domestic violence and other harms — could outweigh the discriminatory effects while long-term solutions are developed.Context: The debate has flared up again as Australia begins to discuss constitutionally enshrining an Indigenous body that would advise on policies.THE LATEST NEWSThe War in UkraineWestern analysts say that Russian forces now control most of Bakhmut. Ukraine insists that it holds the city, but its grip is tenuous.Pregnant Russians are heading to Argentina, which gives citizenship to anyone born there — and grants their parents a right to permanent residency and a fast track to a passport.Ukraine’s farmers face risks in the spring planting season: The fields are studded with unexploded bombs.Around the WorldSome human rights groups compared migrant workers’ conditions in Qatar to modern slavery.Olya Morvan for The New York TimesQatar pressed a U.N. agency not to investigate labor abuses in the run-up to the World Cup.The U.S. is racing to contain fallout from the collapse of Silicon Valley Bank, which is the largest U.S. bank to fail since the 2008 crisis.Turkey is trying to identify more than a thousand earthquake victims who remain unaccounted for.A South African corruption watchdog cleared President Cyril Ramaphosa in the theft of $580,000 stashed in his sofa.Other Big StoriesThe BBC is in turmoil after a sports host was taken off the air for criticizing a U.K. immigration proposal.Australia’s strict immigration policy, which includes a system of indefinite mandatory detention, is of questionable legality.At least eight people died when small boats capsized off California, in what authorities said was a human-smuggling operation gone awry.The Oscars are about to start. Follow our live coverage.A Morning ReadIn Luanda, Angola’s capital, dancers celebrated Carnival last month. Gulshan Khan for The New York TimesOnce a cultural highlight, the Carnival celebration in Angola’s capital seems to barely register these days. But a competition could restore its glory, as groups of young dancers compete for prize money.ARTS AND IDEASThe race to turn water into fuelTrucks transporting iron ore in Western Australia.Giacomo d’Orlando for The New York TimesHundreds of billions of dollars are being invested in a high-tech gamble to make hydrogen clean, cheap and widely available. Producers hope to find customers in Australia’s huge mining industry, which currently relies on fossil fuels.“Green hydrogen” is made by using renewable electricity to split water molecules. (Currently, most hydrogen is made by using natural gas.) Because burning hydrogen emits only water vapor, green hydrogen avoids carbon dioxide emissions from beginning to end.Green hydrogen’s biggest impact could be in steel production, which emits more carbon dioxide than all the world’s cars. Three of the world’s four biggest ore miners operate dozens of mines in Australia’s Outback, where 10 million new solar panels and as many as 1,743 wind turbines will go toward making green hydrogen. This month, a steel company there will open the world’s biggest electrolyzer factory, producing machines that split water molecules apart to isolate the hydrogen.Critics say green hydrogen projects divert investment from surer emissions-reduction technologies. But if the rosiest projections hold, green hydrogen in heavy industry could reduce global carbon emissions by at least 5 percent.PLAY, WATCH, EATWhat to CookChristopher Simpson for The New York TimesIn this vegetarian take on shawarma, the usual spiced lamb, chicken or turkey is replaced with cauliflower florets.What to WatchIn “Stonewalling,” a young Chinese woman struggles with pregnancy, informal work and the pandemic. (I saw it and highly recommend it!)What to Listen toCheck out new songs on our weekly playlist.Exercise“Gymtimidation” is real. Don’t let that stop you from working out.The News QuizHow well did you follow last week’s headlines?Now Time to PlayPlay the Mini Crossword, and here’s a clue: Public uprisings (five letters).Here are the Wordle and the Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. See you next time. — AmeliaP.S. “Sin Eater: The Crimes of Anthony Pellicano,” a Times documentary about a Hollywood fixer, premiered. Watch the trailer.Start your week with this narrated long read about Germany’s military. And here’s Friday’s edition of “The Daily,” on protests in Israel.We’d like your feedback! Please email thoughts and suggestions to briefing@nytimes.com. More

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      Foreign Efforts to Subvert Canada’s Last 2 Elections Failed, Report Says

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      An independent review found that China, Russia and Iran tried to interfere in the 2019 and 2021 votes, but that the elections’ integrity was not compromised.OTTAWA — Foreign governments tried to interfere with the last two federal elections in Canada, but they did not succeed in “impacting” the voting results, according to an independent review released on Tuesday.That conclusion comes as opposition politicians and others are pressing Prime Minister Justin Trudeau to open a separate, public inquiry into allegations of election interference by Chinese diplomats based in Canada, as well as by informal agents of the Chinese government — a move that Mr. Trudeau has rejected.The report released on Tuesday was a review of the work of a special panel of five senior public servants, created to work with intelligence and law enforcement agencies to alert the public to any “incidents that threaten the integrity of a federal election.”Morris Rosenberg, the former deputy justice minister who wrote the report, said the panel had “determined that the government of Canada did not detect foreign interference that threatened Canada’s ability to have free and fair elections,” adding: “National security agencies saw attempts at foreign interference, but not enough to have met the threshold of impacting electoral integrity.”The report singles out China, Russia and Iran as having tried to interfere in the votes held in 2019 and 2021, and it indicates that social media sites were important tools to that end. It makes particular note of activity by China.More on ChinaDesperate for Babies: For generations, Chinese parents chafed under the country’s one-child policy. Now, facing a declining birthrate, China wants lots of children — but many families don’t.Health Insurance Cuts: China’s local governments, short on money after three years of “zero Covid,” are forcing changes on the country’s health care system, squeezing benefits and angering citizens.Courting Europe: Beijing, in urgent need of reviving its economy, wants to mend ties with Europe but is struggling to create distance between itself and Moscow.Covid Deaths: While a precise accounting is impossible, rough estimates suggest that between 1 and 1.5 million people died of Covid during China’s wave — far more than the official count.It says that Canada’s main intelligence agency, the Canadian Security Intelligence Service, was concerned that “China notably tried to target elected officials to promote their national interests and encouraged individuals to act as proxies.” China’s techniques, the agency told Mr. Rosenberg, included threatening members of the Chinese community in Canada.The reports cites an editorial in Global Times — a Chinese Communist Party-run newspaper — that falsely suggested that the Conservative Party “almost wants to break diplomatic relations with China.”It also notes a post on the Chinese messaging app WeChat, which made the claim that a bill to establish a registry of individuals lobbying for foreign governments — introduced by Kenny Chiu, who sought re-election in 2021 as a Conservative — “suppresses the Chinese community.”Mr. Chiu was defeated by a candidate from Mr. Trudeau’s Liberal Party.While the report said the foreign efforts had not affected election integrity, it added that it was difficult to precisely measure the total effect of Chinese disinformation on election results. “Were Conservative losses in several ridings with large Chinese diaspora communities due to attacks on the Conservative platform and on one of its candidates by media associated with or sympathetic to the Chinese government?” the report asks. “Or were they the result of the Conservatives simply not being able to connect with sufficient numbers of voters in those communities?”The question of whether China is influencing Canadian elections has long been a political issue in Canada. Pressure from opponents on Mr. Trudeau to call for an inquiry grew after The Globe and Mail, a Toronto newspaper, published reports that it said were based on a viewing of top-secret Canadian intelligence documents, showing that China “employed a sophisticated strategy to disrupt Canada’s democracy” in 2021. The newspaper said the documents indicated that officials in Beijing wanted Mr. Trudeau’s Liberals re-elected — but only with a power-limiting minority in Parliament — because they believed that a Conservative government would take a harder line against China.Citing secrecy laws, Mr. Trudeau has not discussed the specifics of those reports. But the prime minister and his staff have said that they contained “many inaccuracies.” More