Chinese President Xi says Taiwan issue is the most important in US-China ties, and if Taiwan issue is not handled well, the two countries will clash, according to Xinhua

Xi's remarks underscore the escalating tensions surrounding Taiwan, emphasizing it as a critical flashpoint in US-China relations. This could be a signal of potential future conflicts, likely prompting market participants to assess risk exposure, especially in sectors sensitive to geopolitical instability, such as defense and technology.