Hi, everyone, it's Kenji from Hong Kong. We are witnessing a new round of Sino-American rivalry after U.S. House Speaker Nancy Pelosi visited Taiwan, meeting President Tsai Ing-wen and key semiconductor industry leaders. Outraged by the highest-ranking Washington official to land on the self-ruled island in 25 years, Beijing is already flexing its military muscles harder in the surrounding waters, and more sanctions are expected.
The diplomatic bombshell coincides with the annual secretive gathering by Communist Party's top leadership and its elders in the coastal resort of Beidaihe, about 300 km east of Beijing. It is always extremely difficult to know what is happening behind the bamboo curtain, but the geopolitical tensions with the U.S. will certainly be on the agenda.