Hu Xijin on X "If FT report is true, and US sells USD 20bln worth of weapons to Taiwan... hard to believe that mainland China will conduct another island-encircling military exercise and more inclined to believe that it will take some real actions"

• If the Financial Times report is true, and the US sells $20 billion worth of weapons to Taiwan, it will certainly trigger a very serious crisis. At that time, it's hard to believe that mainland China will simply conduct another island-encircling military exercise; I am more inclined to believe that mainland China will take some real actions.

This statement from Hu Xijin underscores escalating tensions between the US and China over Taiwan, particularly if the US proceeds with significant arms sales. Such developments could lead to heightened military responses from China and trigger volatility in markets sensitive to geopolitical risks, impacting currencies like the USD and JPY, as well as commodities such as gold.