China Firmly Opposes U.S.-Taiwan Talks Amid Trump Remarks

China's Foreign Ministry reiterated its firm opposition to any official U.S.-Taiwan exchanges following reports that former President Trump considered speaking with Taiwan's president, reinforcing longstanding Beijing red lines on sovereignty. The statement underscores geopolitical risk as a transmission channel, particularly through sentiment-driven shifts in regional risk appetite and cross-strait stability expectations. Markets with elevated exposure include Chinese onshore equities (CSI 300), offshore yuan (CNH), and Taiwan's stock index (TWSE), all sensitive to escalations in U.S.-China-Taiwan tensions. Investors will watch for any follow-up comments from U.S. officials or Beijing's diplomatic actions, such as military drills near Taiwan or diplomatic demarches, as near-term catalysts for volatility.

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