China is taking a firmer stance with Taiwan by dropping the term “peaceful reunification” amid a heightened defense budget.
What Happened: The Chinese government has adopted a more stringent stance on Taiwan, removing the mention of “peaceful reunification” in a government report delivered by Premier Li Qiang at the opening of the National People’s Congress (NPC), China’s rubber-stamp parliament, on Tuesday, Reuters reported.
This language change is being closely watched as a possible indication of a more assertive approach towards Taiwan.
See Also: Nvidia-Rival AMD Faces Hurdles In Exporting China-Specific AI Chip Amid US Crackdown: Report
Why It Matters: The increase in China’s defense budget and its evolving stance on Taiwan are significant developments. These decisions come amid an ongoing anti-corruption probe within the People’s Liberation Army (PLA) and a series of tactics to increase pressure on Taiwan.
These tactics include the loss of a diplomatic ally, altering air routes in the Taiwan Strait, and increasing coast guard patrols around the Taiwan-controlled Kinmen islands. These actions are seen as a response to the election of Vice President Lai Ching-te as the next president of Taiwan. China views Lai as a separatist and is using these tactics to limit Taiwan’s freedom of action.
Ching-te recently hosted Michigan Governor Gretchen Whitmer in Taiwan who is visiting the country to establish economic and technological partnerships.
China’s recent military actions also indicate its firmer stance towards Taiwan. In January, China sent 33 military aircraft and 6 naval ships toward Taiwan, escalating military pressure on the island. This move came as U.S.-China talks resumed, potentially complicating efforts to stabilize relations.
Read Next: Could A Second Trump Presidency Disrupt The Stock Market? Capital Economics Analyst Weighs In
Photo by patera on Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.