According to the media, Asian markets witnessed a sharp decline during the first two days of the week and mostly rose Wednesday after House Speaker Nancy Pelosi’s visit to Taiwan which further strained US-China ties and raised concerns about the long-term impact on the global outlook. According to details, the crisis had sent shivers through trading floors that were already on edge over a range of issues including the war in Ukraine, surging inflation, rising interest rates, and slowing economic growth. However, after the safe conduct of the visit by the top American leader, Asian markets enjoyed a small recovery, while Hong Kong, Taipei, Tokyo, Singapore, Seoul, Wellington, Jakarta, and Manila all rose, though Shanghai, Mumbai, Sydney, and Bangkok edged down.
The world economy was still struggling to overcome the disastrous impact of the war in Ukraine which brought energy and economic crises along with increasing hunger and grain shortages in some parts of the world that the great powers had set the stage for another upheaval in the world. The announcement of Nancy Pelosi’s visit to Taiwan created fears and great uncertainty in the global economic market while the regional stock market faced extreme pressure due to a potential risk of a conflict in the region. Although Pelosi’s visit is over now, but it has prompted a multidimensional rivalry and is likely to serve as the beginning point of a new crisis in East Asia that would have a grave economic and political impact in the region and beyond.
The story does not end here, as Britain’s House of Commons Foreign Affairs Committee is planning a visit to Taiwan in November or early December this year, which has created another fiasco in the bilateral relations between the two superpowers. The Chinese government has expressed acute anger over the proposal for British lawmakers’ visit to Taiwan, while China’s Ambassador to the UK has called on the British government to abide by the Sino-UK joint communique and not to underestimate the sensitivity of the Taiwan issue. Chinese Envoy warned Great Britain not to follow in the US’s footsteps, otherwise, it has to face severe consequences of its adventure.
Presently, the United States and the UK had ramped up anti-China rhetoric ahead of US mid-term election and UK’s ongoing contest between Foreign Secretary Liz Truss and former Chief Economist Rishi Sunak to replace Boris Johnson as Britain’s next Prime Minister. According to the analysts, domestic politics in both western nations increased the boiling temperature between China and the west, which is less likely to be mild in the current year. On other hand, the Chinese government has stepped its pressure on Tai Pei and Beijing has suspended imports of some commodities from Taiwan and halted exports to the Island nation besides imposition of a partial Naval blockade of the self-ruled nation.
Apparently, these developments have caused great apprehension in the regional and global markets and the political maneuvers of global powers have put a severe impact on the international economy. In fact, western nations first antagonize their adversaries by targeting their sensitive issues and later accuse them of aggression and creating upheavals in the world. Hence, the supporters of democracy and freedom are advised to consider the miseries and gloominess of mankind and pause their hegemonic designs in the greater interest of humanity across the world.