Author: Chee Meng Tan, Assistant Professor of Business Economics, University of Nottingham

During a Taiwan National Day speech on October 10, Taiwanese president Lai Ching-te said that Taipei was determined to defend Taiwan’s sovereignty against “annexation and encroachment”, and emphasised that “China has no right to represent Taiwan”. China’s response was swift. Less than a week after Lai’s provocative speech, a record 153 Chinese war planes swarmed and surrounded Taiwan during a Chinese military exercise over 24 hours. Beijing’s intention was simple: issue Taipei a “stern warning” for what China considers a “separatist act”. Beijing sees the island as a “sacred and inseparable part of China’s territory” that must return to the…