The tension index has seen a notable increase, rising to 4.7/10, with several critical signals emerging from the region. Mainland China has urged Taiwan to remove air transport restrictions across the Taiwan Strait, citing demand for direct flights during the Spring Festival. This development adds to the already heightened tensions between the two sides.
On the economic front, China has implemented a zero-tariff policy for imported goods in the Hainan Free Trade Port, benefiting local residents. This move could impact Canada's trade dynamics with China, especially considering the current trade balance, which sees a significant deficit for Canada.