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Editions of Taiwanese newspapers reporting on U.S. House Speaker Nancy Pelosi's historic visit to Taiwan.

Kyodo via Reuters Connect

What We're Watching: Tensions in Taiwan, violence in Nagorno-Karabakh, Erdoğan in Russia

(More) trouble in Taiwan

Tensions in the Taiwan Strait are now at their highest level in a quarter-century after China fired ballistic missiles at waters near the self-governing island on Thursday. The launch was part of broader live-fire drills scheduled to conclude on Sunday — Beijing's furious answer to US House Speaker Nancy Pelosi visiting Taiwan earlier this week. So, what might happen next? We're keeping an eye out for three things. First, whether China escalates even further by shooting missiles into waters off eastern Taiwan — thus violating the island's airspace, tantamount to declaring war. (By the way, the Chinese might need a bit of target practice after five projectiles landed inside Japan’s EEZ.) Second, how the drills will impact navigation and trade in the region, with many flights cancelled and cargo ships now avoiding the Taiwan Strait. Third, how the US will respond: 26 years ago Bill Clinton ended the last major US-China standoff over Taiwan in one military fell swoop, but it's unlikely Joe Biden will have the appetite to risk all-out war with China. Sanctions? Strong-worded statements blasting Beijing and supporting Taipei? You bet. But that'll be the end of it. Meanwhile, 23 million Taiwanese people will spend the next few days frantically awaiting China's next move.

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