China fires two missiles into the South China Sea and Asian markets feel the blow

Representative image: Frigates Meizhou (Hull 584) and Liu Panshui (Hull 514) with the Chinese navy under the PLA Southern Theater Command during a maritime realistic training exercise in waters of the South China Sea in July, 2020.Chinese Military/Zhang Weifeng
  • China reportedly fired two missiles, including one ‘aircraft-carrier killer’ into the disputed waters of the South China Sea.
  • The move comes a day after China claimed that a US spy plane interrupted its live-fire naval drill over the Bohai Sea.
  • As the US and China continue to posture over strategically important waters, Asian markets are feeling the pressure.
  • Check out the latest news and updates on Business Insider.
Tensions in the South China Sea hit a new high with China firing two powerful missiles into the strategically important waters.

China’s challenge comes a day after the Asian country claimed at a US spy plane entered a no-fly zone above the Bohai Sea during a Chinese live-fire naval drill without any prior permission.


Amid the back-front between the US and China in the South China Sea, Asians stocks are bearing the brunt. South Korea, Hong Kong and Japan’s market showed a dip while Taiwan and others remain flat.
Advertisement


CountryMarket index% change*
Hong KongHang Seng-0.63%
JapanNikkei 25-0.36%
TaiwanTaiwan TSEC 50 Index-0.01%
IndiaMumbai Sensex0.49
South KoreaKorea Stock Exchange-0.64%
*Data as of 10:00 am while some markets were still open
Source: Bloomberg
One of the missiles — the DF-21D — was an ‘aircraft-carrier killer’, according to the South China Morning Post. Both of them were fired to a region between the Hainan province and the disputed Paracel Islands.

The other missile, DF-26B, is banned under the Intermediate-Range Nuclear Forces Treaty. Although it was signed by the former-Soviet Union and the US at the end of the Cold War, the US has since withdrawn from it citing China’s use of the weapon as the reason.

Advertisement

The Chinese People’s Liberation Army (PLA) is keeping itself busy as disengagement along the border with India is still going slow and almost simultaneous drills are being conducted in four sea regions.

SEE ALSO:
Experts explain India’s 'military options' against China