US House Speaker Nancy Pelosi has landed in Taiwan becoming the highest-ranking member of Congress to visit the island since 1997. Pelosi’s touchdown in Taipei signals a low point for US-China relations and follows warnings from the Biden administration to avoid a stop there during her Asian tour.
Beijing has not taken lightly to the matter with a foreign ministry spokesman stating that China's military "won't sit by idly" if Beijing feels its "sovereignty and territorial integrity" is being threatened. This is on top of previous calls from China to Pelosi to be mindful of the "egregious political impact" of her visit to Taiwan. In a statement shortly after the plane landed, Pelosi said her visit was meant to honor "America's unwavering commitment to supporting Taiwan's vibrant Democracy."
Global markets tumbled, as worried investors fear a severe escalation of tensions between the two nations. US and European equities followed Asian indexes down as investors weighed the market implications of the trip. All three major US stock indexes opened in the red.
Why it matters
Beijing sees unification with Taiwan as a part of Xi’s projects of national rejuvenation. The move is seen as a rallying cry for democracy by Pelosi at a time when her party stutters in domestic polls. It also comes at a crucial point for Xi Jinping who is being sworn in for a historic third term.
