Taiwan unprepared for war with China

Taiwan is unprepared for a conflict with China [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. Walk through central Taipei in the evening and the malls are full, designer shops crowded, and teenagers with boom boxes perform K-pop dance routines in the street. There’s little outward sign that Taiwan is an island at the nexus of global tensions between the US and China. Presidential elections next month will go a long way to determining just how acute those strains become. For all the outward calm, [the threat of conflict is real](. China is “expanding military capabilities at scale,” according to Taiwan’s annual defense report. That includes constructing airfields along its eastern and southern coastline and stationing new fighters and drones there to “seize air superiority” in any engagement across the Taiwan Strait. China claims Taiwan as its territory, although President Xi Jinping has said Beijing isn’t preparing for war. For his part, President Joe Biden has repeatedly said that the US would come to Taiwan’s aid in the event of Chinese aggression. In addition, Taiwan’s world-leading chip industry makes it vital to global industry and society, enabling everything from iPhones to AI. Yet, as Cindy Wang and Peter Martin report, Taiwan itself remains strangely unprepared for the worst-case scenario. Government officials openly concede that more needs to be done to deter any invader. Issues include the size of Taiwan’s military, its training, and the kind of weaponry being purchased. Polls suggest almost half of Taiwanese are unwilling to defend their island if China attacks. The [wars in Ukraine]( and Gaza have shown that preparations need to go beyond the military field to areas including critical infrastructure, civil resilience and cybersecurity. Taiwan is actively discussing efforts to beef up its defenses with the US. Beijing and Washington have made efforts to dial down the enmity, and Xi hasn’t done or said anything to suggest war in the Taiwan Strait is imminent. But in a world of geopolitical volatility, Taiwan remains arguably the greatest threat of all. — [Alan Crawford]( A military exercise in January 2022 simulating an invasion by China. Photographer: I-Hwa Cheng/Bloomberg Global Must Reads Whether Donald Trump will land in prison or return to the White House [may be determined by a US Supreme Court]( that he played a key role in shaping. Greg Stohr reports that yesterday’s ruling by the state of Colorado’s top court barring him from the 2024 presidential ballot there because of his incitement of the Jan. 6, 2021, attack on the Capitol is one of a number of cases involving the former president that America’s highest tribunal is likely to consider. Ukraine heads into the new year with dwindling weapons stockpiles and no guarantee of more US aid for the war with Russia. Lawmakers at an impasse over more than $60 billion in fresh assistance [abandoned efforts]( to reach a deal before leaving Washington for the holidays. The Pentagon said it would run out of money to replace US weapons sent to Ukraine by Dec. 30. The Democratic Republic of Congo votes today for a president who will play a key role in the world’s [fight against climate change]( over the next five years. 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The Iran-backed insurgents say they are targeting any vessel with links to Israel to protest against its military campaign in Gaza. Trump repeated his condemnation of undocumented migrants, saying “they’re destroying the blood of our country” in remarks that prompted members of both parties to [accuse him of echoing]( Adolf Hitler’s call to eliminate Jews before the Holocaust. Malaysia said it will block Israel-based ZIM Integrated Shipping Services from anchoring at any of the Southeast Asian nation’s ports, a largely symbolic move that [signals rising frustration]( over the war in Gaza. The African Development Bank is withdrawing its international staff immediately from Ethiopia after [two of its employees were arrested](, detained and assaulted in the country on Oct. 31. [Sign up for the Washington Edition newsletter]( for news from the US capital and watch Balance of Power at 5pm ET weekdays on Bloomberg Television. Chart of the Day Xi vowed to “amplify” ties with Moscow at a meeting with Russian Prime Minister Mikhail Mishustin in Beijing. The Chinese leader said the [“robust resilience” of their cooperation]( was demonstrated by annual bilateral trade hitting its goal of $200 billion last month, according to the state-run China Central Television. And Finally Argentina’s rail system, once Latin America’s best, has [crumbled during decades of economic turmoil](, leaving in its wake hundreds of ghost towns. Even though the passenger network has shrunk to a little more than 5,000 kilometers (3,105 miles) today from 46,000 kilometers in 1945, the state-run service employs more people than Amtrak in the US. Towns like Patricios, where the majority depends on social security or welfare checks, illustrate new President Javier Milei’s greatest challenge: managing a cratering economy that’s trying to prop up a bloated state. Maria Gastaminza, nine of her children and her partner live in the old manager’s office at the former train station. Photographer: Sarah Pabst/Bloomberg (Balance of Power will take a break from Friday until Jan. 8.) More from Bloomberg - Check out our [Bloomberg InvestigatesÂ](film series about untold stories and unraveled mysteries - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - [Green Daily]( for the latest in climate news, zero-emission tech and green finance - Explore more newsletters at [Bloomberg.com](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. 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