In April 2023, China conducted its largest military exercises in decades near Taiwan, raising tensions between Beijing and Taipei to new heights.

The drills, which involved fighter jets, warships, and live-fire exercises, were widely seen as a demonstration of China’s growing military might and its determination to assert control over Taiwan, which it views as a breakaway province.

The move came shortly after Taiwan’s President Tsai Ing-wen met with U.S. officials in a move that Beijing condemned as “provocative.”

While Taiwan responded by conducting its own military drills and reinforcing defensive positions, the United States reiterated its commitment to Taiwan’s defense, sending warships through the Taiwan Strait and increasing arms sales to Taipei.

The heightened tensions sent shockwaves through regional markets, and analysts warned that a miscalculation or accidental escalation could destabilize the broader Indo-Pacific region.