- China’s actions are a significant escalation
- There are serious concerns that Beijing actions will destabilise the region
- US will continue to make maritime transits through Taiwan strait
After all the drama surrounding Pelosi’s visit to Taiwan, both sides are back to barking at each other once again. As much as markets fear the possibility that either side might be a little trigger-happy, it doesn’t look like we will be getting any significant escalation in tensions for now; unless you count a war of words as being significant.