Tensions are rising again over Taiwan.
After a phone call between 🇺🇸 Trump and 🇨🇳 Xi, Trump described the talks as “perfect” and “very positive,” even mentioning a possible China visit in April.
But China’s official statement was far more serious:
• Taiwan is the most important issue in China–US relations
• Taiwan is Chinese territory
• China will never allow Taiwan to separate
• The US must be extremely cautious with arms sales to Taiwan
This comes after the US approved $11B in arms sales to Taiwan in December, with reports of another $20B package on the way.
If a major new deal is announced, China could cancel Trump’s planned visit altogether.
For markets, Taiwan is critical — it’s home to TSMC, the world’s most important chip manufacturer. Any escalation could shake global tech stocks, AI development, and crypto infrastructure.
In times of geopolitical tension, investors often rotate:
• Out of risk assets during panic
• Into gold, dollars, or sometimes Bitcoin as a hedge
Politics moves markets.
And markets move crypto.