Top Pentagon official is reportedly to have arrived in Taiwan

  • FT reports that Michael Chase, the deputy assistant secretary of defence for China, has arrived in Taiwan

This comes as relations between US and China continue to backslide amid the whole balloon situation in recent weeks. Chase's visit will be the most high profile visit from a US official to Taiwan since Nancy Pelosi's visit last August. As a reminder, that certainly sparked an angry response by Beijing.

So, let's see what the reaction will be this time and if US-China relations will continue to sink to new lows from here. If so, it might be a risk that markets might have to take more seriously moving forward.

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