Trade between the world’s two biggest economies has ballooned in recent decades, bringing significant benefits but also perils that have led to calls to rethink the relationship.

Despite China’s growing pressure, Taiwan has developed one of the world’s strongest democracies—one that will be increasingly tested in the coming years. 

In his inaugural address, Taiwan’s new president Lai Ching-te signaled broad continuity on cross-strait issues. China, however, is likely to respond with increased pressure.