MHMarkets：China warns US Pelosi to visit Taiwan

China warned on Tuesday that it would take “resolute and forceful measures” if U.S. House Speaker Nancy Pelosi visited Taiwan in what would be the highest-level U.S. delegation to visit Taiwan in 25 years.

Pelosi, the second in line to the U.S. president, has reportedly outlined plans to lead a delegation to Taipei in August, the Financial Times reported, citing people familiar with the matter. Pelosi's office declined to comment on her travel plans.

On Tuesday, China's foreign ministry slammed the possible visit, saying it “would have a serious negative impact on the political foundation of China-US relations and send a serious wrong signal to the 'Taiwan independence' separatist forces.” Foreign Ministry spokesman Zhao Lijian said in a news release “If the U.S. insists on going its own way, China will take resolute and forceful measures to firmly defend national sovereignty and territorial integrity,” the press conference said. “The U.S. must take full responsibility for all the consequences.”

Pelosi had previously planned to lead a U.S. congressional delegation to Taiwan in April, but the trip was delayed after she tested positive for Covid-19. At the time, China strongly opposed the trip and issued similar warnings. Her visit will be the first by a House speaker since Republican Newt Gingrich visited Taiwan in 1997.

In recent years, US delegations have visited Taiwan frequently, especially after then-US President Donald Trump signed the Taiwan Travel Act in March 2018. Since then, U.S. officials and lawmakers have made more than 20 visits to Taiwan. Democratically controlled islands, according to CNN.

Meanwhile, China has dispatched a record number of warplanes near Taiwan as tensions between the two sides have soared to the highest level in decades. Asked if he was concerned that Pelosi's trip to Taiwan could send the wrong message about U.S.-China relations, House Majority Leader Steny Hoyer told CNN: “I think the president is very concerned about our relationship with Taiwan. The stance on relations is very clear. So the answer to this question I don't think it's going to be a surprise to the Chinese, or a different message than we've been sending.”

Financial data and events to focus on today:

20:30   Canada June CPI monthly rate

22:00   U.S. June Existing Home Sales Total Annualized

22:30   EIA crude oil inventories for the week from the United States to July 15

22:30   U.S. to July 15 EIA Strategic Petroleum Reserve inventory for the week

The next day at 02:30  the New York crude oil August futures completed the final trading on the floor