Beijing Cautions US on Taiwan Relations Amid Trump-Lai Talks

Beijing has issued a warning to the United States regarding its ties with Taiwan following former President Trump's indication of a willingness to engage in discussions with Taiwanese leader Lai Ching-te. This development heightens geopolitical tensions, impacting risk appetite among investors, particularly in Asian markets. Chinese equities and Taiwanese assets are most exposed due to their direct correlation with cross-strait relations and U.S. foreign policy. Traders will be particularly attentive to any official statements from the U.S. State Department or further comments from Trump that could influence the trajectory of U.S.-China relations.

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