Beijing has formulated a series of countermeasures, including military actions – Global Times

Dhwani Mehta FXStreet

Hu Xijin, a commentator at the highly-influential Chinese state media, Global Times, tweeted out on Tuesday, “based on what I know, in response to Pelosi's possible visit to Taiwan, Beijing has formulated a series of countermeasures, including military actions.”

This comes as diplomatic tensions mount ahead of an expected Taiwan visit by US House of Representatives Speaker Nancy Pelosi this Tuesday.

Also read: China bans over 100 Taiwanese food factories from importing products

Market reaction

The market mood remains risk averse, as investors refrain from placing bets on high-beta assets amid escalating tensions between China and Taiwan over the planned visit by Pelosi to Taipei. The US S&P 500 futures are down 0.52% on the day while AUD/USD is facing a double-whammy from a less hawkish RBA rate hike and China concerns, falling towards 0.6950.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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