While broader markets might be distracted by Trump’s tariffs and Liberation Day, it’s good to be reminded that geopolitical tensions are rising involving Taiwan and China. This is the second day of intense military drills and the Chinese military have said that they are simulating strikes on ground and maritime targets towards the east of Taiwan.
The military adds that the drills today are focused on “controlling and sealing off seas and skies around Taiwan”. China is clearly not happy and stepping up pressure on Taiwan president Lai, who labelled China as a “foreign hostile force” in a speech last month.