China conducts Taiwan drills in warning against ‘independence’

China conducted large-scale military exercises around Taiwan on Monday, a move that came in response to what Beijing called “separatist acts” by Taipei.

Chinese state media said the drills were retaliation for a speech last week in which Taiwanese President William Lai vowed to “resist annexation or encroachment” from Beijing. Heightened tensions along the Taiwan Strait — through which more than a fifth of global maritime trade passes — could be devastating for the world economy.

“In the event of a long conflict over Taiwan,” an expert at the Stimson Center wrote, “financial markets would tank, trade would shrivel, and supply chains would freeze, plunging the global economy into a tailspin.”