China considers Taiwan as part of its territory and has long threatened to use force to bring the island under its control.
Domestically, Lai also faces another challenge after his Democratic Progressive Party (DPP) lost its majority in the legislature in the January elections, meaning it will be hard for him to push through his policies.
On Sunday, ahead of an inauguration speech, Lai vowed to “continue to walk on the path of democracy”.”We will continue to engage with the world to make Taiwan stronger,” Lai, 64, said. As Lai took the helm on Monday, Chinese state media reported Beijing imposed sanctions on three US defence companies over their sales of weapons to Taipei.
US Secretary of State Antony Blinken meanwhile congratulated Lai, saying he was looking forward to Washington and Taipei deepening ties and maintaining “peace and stability across the Taiwan Strait”.
‘Like water and fire’
Monday’s inauguration ceremony was held at the Japanese colonial-era Presidential Office Building in Taipei, with Lai’s deputy Hsiao Bi-khim also sworn into office.
In a show of support for the island’s democracy, eight heads of state and representatives of 51 international delegations attended the ceremony — including from the United States, Japan and Canada.
More than a thousand performers showcasing traditional operas and dances took part in a celebration that also included an Air Force aerial formation to salute the new president.
Lai and Hsiao — arguably better known on the global stage due to her former role as Taiwan’s top envoy to Washington — are both part of the DPP, which has championed Taiwan’s sovereignty.
Lai’s inaugural speech will be scrutinised for clues on how he will handle Taipei’s delicate relationship with Beijing.
Lai previously described himself as a “pragmatic worker for Taiwan independence“, but has since toned down his rhetoric.
More recently, he has vowed to maintain the “status quo” on the Taiwan Strait, which means preserving Taiwan’s sovereignty while not formally declaring independence.
Ahead of the inauguration, Beijing’s Taiwan Affairs Office called “Taiwan independence and peace in the strait… like water and fire”.
Chinese warplanes and naval vessels maintain a near-daily presence around the island, but in the days leading up to the inauguration, there has not been a significant uptick in the numbers.
Taiwan’s defence ministry detected six Chinese aircraft and seven vessels around the island in the 24 hours to 6:00 am on Monday.
Lai has made overtures for resuming high-level communications with China, which Beijing severed in 2016 when Tsai took power, but experts say they are likely to be rebuffed.
‘Go with the flow’
With only 12 formal allies, Taipei lacks diplomatic recognition on the world stage.
While Washington switched diplomatic recognition from Taipei to Beijing in 1979, it has remained Taiwan’s most important partner and biggest arms supplier.
Taiwan has its own government, military and currency, and the majority of the 23 million population see themselves as having a distinct Taiwanese identity, separate from the Chinese.
“I think it is better not to be too close to China or too far away from China — it is better to maintain a neutral feeling,” said Shen Yujen, 24, who is part way through his four-month military service.
But many Taiwanese are less worried about the threat of conflict than they are about soaring housing prices, rising cost of living pressures, and stagnating wages.
“If war should break out there would be little I could do,” Jay, a 20-year-old student who gave only his first name, told AFP as he took a photo of the Presidential Office.
“So I will just go with the flow.”
