Leaders in Washington, Beijing and Canberra breathed a quiet sigh of relief when Taiwanese President Ma Ying Jeou was elected for a second term on 14 January. Ma’s re-election will see him continue to propel Taiwan along a path that has seen the island forge its strongest relationship with the mainland since the end of the civil war in 1949.

The continuation of Ma’s presidency grants Australia a little more space to continue its pursuit of a complicated high wire act – balancing its relationship with its most important ally (the US) on the one hand and its most important trading partner (China) on the other. This Policy Analysis considers the implications of the election result for Taiwan, China, the US and Australia.