China waits warily for US to name unofficial ambassador to Taiwan

In the past few months China has successfully lobbied 3 countries to drop diplomatic relations with Taiwan. 

But by attracting the US to open an unofficial embassy, Taiwan seems to have pulled one back.

To Taiwan, one unnoficial US embassy may even be more valuable than several embassies from less powerful countries.

But having said that, the US is likely to continue trying not to go too far in provoking China. In the near term, neither China nor the US seems to have an appetite for a war in North East Asia.

Only the future can tell if the China-Taiwan dispute would be defused, or if it will lead to a more explosive situation that negatively impacts the world economy.

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