Beijing, China – Tensions between China and Taiwan have escalated in recent months, with China conducting military drills and incursions close to Taiwan’s territory. The U.S. government’s decision to sanction Chinese entities supplying materials to Russia raises concerns about the potential for open conflict in the region.

Amidst a backdrop of negative social mood, as seen in declining stock prices across Asia, the risk of conflict between China and the United States looms large. The Taiwan Index has continued to rise despite threats from China, reflecting a positive mood in the region. In contrast, China’s social mood remains severely negative, raising the risk of aggression or miscalculations.

Geopolitical observers view the Russia-Ukraine conflict as a proxy battle in a new Cold War, with the U.S. and its allies facing off against China-dominated autocratic states like Russia, North Korea, and Iran. Long-term charts suggest that the current period mirrors past corrective patterns, potentially leading to further conflicts in the future.

The completion of China’s corrective pattern increases the risk of aggression, especially as China grows stronger militarily. The ongoing bull market in global stocks may lead to years of relative peace before potential escalations in conflicts. As tensions continue to simmer in the region, monitoring stock market indexes closely may offer insights into potential geopolitical developments.

The situation in the Asia-Pacific region remains volatile, with the possibility of proxy battles and conflicts shaping the geopolitical landscape. As global powers jockey for influence, the effects of negative social mood on political decisions cannot be overlooked. Keeping a close eye on developments in the region will be crucial in understanding the shifting dynamics of international relations.