While the market remains oblivious to pretty much any news, diplomatic relations between the US and China continue to deteriorate by the day if not by the hour.
Earlier today we reported that Secretary of State Michael Pompeo tweeted congratulations on Tuesday to Taiwan's President Tsai Ing-wen who was sworn in on Wednesday for a second presidential term, China promptly denounce Pompeo's message as "wrong and very dangerous", with the Ministry of National Defense releasing a statement Wednesday that said the People's Liberation Army (PLA) would "take all necessary measures to firmly safeguard" China's sovereignty, while the Chinese Ministry of Foreign Affairs saying Pompeo's comments "seriously violated" the one-China principle.
This was followed moments ago by China's state-owned Global Times tweeting that China "urges" the US to:
Cut its official ties with #Taiwan;
Stop upgrading substantive relations with Taiwan;
Stop interfering in China's internal affairs;
Stop undermining peace and stability across the Taiwan Strait, as well as China-US bilateral relations.
#China urges the #US to:— Global Times (@globaltimesnews) May 20, 2020
- Cut its official ties with #Taiwan;
- Stop upgrading substantive relations with Taiwan;
- Stop interfering in China's internal affairs;
- Stop undermining peace and stability across the Taiwan Strait, as well as China-US bilateral relations. pic.twitter.com/dJj71HwTyi
The tweet showed China foreign ministry spokesman Zhao Lijian saying that Pompeo's congratulations to Taiwan's Tsai Ing-wen, in which he called her "Taiwan's president" and boasted about the "partnership" between the US and Taiwan, are in "serious violation" of the "one-China" principle and the three China-US joint communiques which make up the Phase 1 trade deal between the two nations, and "constitute grave interference in China's internal affairs."
"China deplores and condemns US interference and will take necessary measures in response to the US erroneous practices", and the "consequences will be borne by the US side" Zhao warned.
The tweet was followed by another, in which the Global Times said, quoting its editor-in-chief and notorious twitter troll. Hu Xijin, that "it doesn’t matter if there is a little friction on the Taiwan question, but the US shouldn’t take any serious action or go too far. Otherwise China will take countermeasures and leave the US stuck in a precarious position."
It doesn’t matter if there is a little friction on the Taiwan question, but the US shouldn’t take any serious action or go too far. Otherwise China will take countermeasures and leave the US stuck in a precarious position: Editor-in-Chief Hu Xijin #HuSays pic.twitter.com/jvQav7NC8E— Global Times (@globaltimesnews) May 20, 2020
So far, China has been content with merely jawboning, however in light of today's latest escalation which saw the Senate today pass a Bill aimed at increasing oversight of Chinese companies, which could require Chinese firms listed in the US to delist from US exchanges, and would require companies to certify no government control, how much longer will Beijing sit idly by as the US continues to pile insults aimed at Beijing, a trend which is unlikely to stop ahead of the Nov 3 presidential election?