Last week after President Tsai Ing-wen of the Republic of China (Taiwan) delivered a speech for the National Day celebrations, the People’s Liberation Army of China conducted a military exercise near Taiwan on the 14th of October, called “Joint Sword 2024B”. Despite this, the Taiwan Stock Market defied expectations and rose while the Taiwan Dollar appreciated. Chinese netizens mockingly commented, saying, “We know it’s just a show,” and “Did the A-share market crash today?”
According to official information from the Eastern Theater Command of the People’s Liberation Army, the exercise named “Joint Sword 2024B” took place on the 14th of October in the Taiwan Strait and the northern, southern, and eastern waters of Taiwan. The training involved scenarios such as maritime and aerial reconnaissance, port and airspace blockades, sea and land strikes, and seizing overall control. Chinese military authorities claimed that this exercise was a strong deterrent against the “Taiwan independence separatist forces”.
The map released by the Eastern Theater Command showed that the exercise was held in nine areas surrounding Taiwan: two close to the eastern coast of Taiwan, three near the western coast, one in the north of Taiwan, and three around the outlying islands of Kinmen and Matsu, which are close to the Chinese coastline.
In response to the Chinese exercise, the Taiwan Ministry of National Defense issued a strong condemnation of China’s “irrational provocative behavior” and stated that appropriate forces have been deployed to respond, aiming to “protect freedom and democracy with concrete actions and defend the sovereignty of the Republic of China.”
However, on the same day as the military exercise, the Taiwan stock market and foreign exchange market remained stable, with an upward trend in the Taiwan Stock Market and appreciation of the Taiwan Dollar.
The Taipei stock market experienced fluctuations, but by the closing bell, the Taiwan Weighted Index rose by 0.32%, closing at 22,975.29 points. The exchange rate of the New Taiwan Dollar against the US Dollar showed a shift from a decline to an increase, reaching a high of 32.157 before closing at 32.168, up 1.4 points, making it one of the best-performing currencies in Asia.
In response, the Taiwanese media outlet “Liberty Times” stated, “China is just playing games, nothing serious.”
Commenting on the situation, Chinese netizens mocked, “It’s just a fish bombing, nothing serious,” and “They sure know how to stir things up. Capital is well-informed.” Some added, “Because we know it’s just a show, we’re not afraid,” and “It seems like every time they conduct island encirclement drills, the Taiwan Stock Market surges. Impressive, right? Clearly provocation, very contemptible.”