FirstFT: Joe Biden to dispatch delegation to Taipei after Taiwan’s election

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Good morning — we start with an exclusive story today. President Joe Biden plans to send a high-level delegation of former officials to Taipei after the election in Taiwan on Saturday, in a move that could complicate efforts by the US and China to stabilise their strained relationship.

The White House has tapped James Steinberg, a former Democratic deputy secretary of state, and Stephen Hadley, a former Republican national security adviser, to lead the bipartisan delegation, according to five people familiar with the plans.

Biden dispatched two high-level delegations of former officials to Taipei earlier in his administration. But sending such a delegation immediately after a presidential election is unusual — and will probably anger Beijing.

One former US official said Biden’s decision to send the delegation to Taipei so soon after the election was a risky move that could backfire.

“Sending such a high-level delegation looks like a bear hug to Taipei, giving Beijing cover to overreact,” he said.

Here’s what we know about the trip — and why others said it was a good idea that would help Taiwan.

Here’s what else I’m keeping tabs on today:

Economic data: The US reports December CPI inflation rate data plus unemployment claims.
US: Donald Trump plans to deliver his own closing argument in a civil fraud trial brought by the New York attorney-general against the former president and his business empire. (Associated Press)
Israel-Hamas war: International Court of Justice begins a two-day public hearing of a case brought by South Africa against Israel over the war with Hamas, seeking a ruling on whether Israel is breaching the 1948 Genocide Convention in Gaza.
Meetings: Indonesia’s President Joko Widodo visits Vietnam as part of regional tour.

Five more top stories

1. China has warned large swaths of its business world, state sector and ruling Communist party that they face an intensified anti-corruption campaign. Here’s how President Xi Jinping is widening his hallmark crackdown on graft.

2. The US Securities and Exchange Commission has approved the first spot bitcoin exchange traded funds in a watershed moment that cryptocurrency enthusiasts are betting will draw new retail and institutional investors into the market. Funds could start trading as soon as today after months of anticipation and pushback. Read more on the “milestone” decision.

3. Belgian authorities have opened a criminal investigation into a Flemish far-right politician who was for years used as a Chinese intelligence asset. Frank Creyelman, a former member of the far-right Vlaams Belang party, carried out tasks on behalf of Chinese spies for more than three years, according to an investigation by the FT, Der Spiegel and Le Monde published in December.

4. Exclusive: Chinese companies are resorting to repurposing Nvidia gaming chips to develop artificial intelligence tools after Washington blocked US exports of high-performance processors in October. Thousands of gaming graphics cards are being stripped of their core components in factories and workshops every month, before being installed on new circuit boards. Qianer Liu has more details on the rough workaround.

5. Indian tycoons showered Narendra Modi with praise and promised billions of dollars in investment in the prime minister’s home state at an event just months before a potentially pivotal national election. Indian and foreign companies are taking pains to stay in favour with a government in New Delhi that enjoys increasing geopolitical clout — and is expected to win a third successive vote in May.

News in-depth

Who are the Houthis? The Iran-linked “military entrepreneurs” have carried out more than two dozen attacks on merchant ships over the past two months, threatening global trade through the Red Sea. In doing so, they have created a significant challenge to the US and its western allies, which want to protect the region’s shipping lanes but are also wary of the Israel-Hamas conflict triggering a broader regional war.

We’re also reading . . .

AI ‘death calculator’: A Danish algorithm can now predict the premature end to a person’s life more accurately than actuarial tables used by insurers, writes Anjana Ahuja. Could this be a good thing?
China’s new growth strategy: If the country is going to emphasise investment over consumption, it must rethink its funding model, writes political economist Yuhan Zhang.
‘Baby Macron’: Gabriel Attal, France’s youngest-ever prime minister and protégé of the president, faces stiff challenges in his new role, including a resurgent far right.

Chart of the day

Ron DeSantis and Nikki Haley are battling to secure second place in the Iowa Republican caucuses next week behind the frontrunner Donald Trump, as voters in the Midwestern state prepare to cast the first votes of the 2024 election season.

Take a break from the news

Personal stylist Anna Berkeley offers some tips for refreshing your winter wardrobe without having to invest in new clothing. Anna has myriad suggestions for breathing new life into worn garments.