China Retaliates Over U.S. Weapon Sales to Taiwan. What Stocks Are Most at Risk
China’s recent sanctions against Boeing and Raytheon Technologies executives in response to weapon sales to Taiwan are likely just the beginning.
U.S.-China tensions are on a dangerous path but investors in multinational stocks may not feel the hit yet as much as those invested in Taiwan’s stocks. Taiwan, the self-ruled island that China claims as its own, is a major flashpoint in an already deteriorating U. S-China relationship. Visits by House Speaker Nancy Pelosi and other members of Congress in recent weeks have escalated the situation. President Joe Biden’s statement in a TV interview that the U.S. would defend Taiwan in the event of a China invasion raised questions again whether the U.S. is moving away from its ambiguous policy toward China’s claims on the island. The White House has continued to say its One China policy—which maintains that Taiwan is part of China—hasn’t changed.