Breaking: China Vows to Reclaim Taiwan by 2026 As Crypto Market Recovers

Coingapestaff
March 16, 2026 Updated March 17, 2026
Coingapestaff

Coingapestaff

Journalist
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Read full bio
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Breaking: China Vows to Reclaim Taiwan by 2026 As Crypto Market Recovers

Highlights

  • China intensifies military presence near Taiwan; Xi Jinping confirms 2026 target.
  • Taiwan strengthens defenses with cost-effective air defense munitions.
  • Crypto market rebound threatened as geopolitical tensions risk triggering a major sell-off.

Geopolitical tensions show little sign of easing soon as China pushes forward with plans to reclaim Taiwan by 2026. Amid the crypto market’s slight recovery despite the ongoing US-Iran conflicts, China has vowed to bring Taiwan under its control by the end of 2026.

This China-Taiwan conflict intensifies the ongoing pressure on global markets. As China has reportedly stepped up military flights and drills around Taiwan’s airspace, the crypto market is expected to see another major crash despite its recent rebound.

Geopolitical Risks Surge amid China-Taiwan Conflicts

As per the latest reports, Chinese President Xi Jinping has officially declared the country’s intention to regain control over Taiwan in 2026. Reports state that dozens of Chinese military aircraft have been spotted near the Taiwan Strait over the past few days. This marks the latest episode in the prolonged China-Taiwan war, with China launching attacks on the island.

On Saturday, Taiwan’s defense ministry reported detecting 26 Chinese military aircraft near the island, with 16 entering its northern, central, and southwestern Air Defense Identification Zones. The ministry also spotted seven Chinese naval ships operating around the island.

On Tuesday, Taiwan’s Ministry of Defense stated that 2 PLA aircraft, 8 PLAN vessels, and 1 official ship were identified around its territory. The Ministry noted on X,

“2 PLA aircraft, 8 PLAN vessels and 1 official ship operating around Taiwan detected up until 6 a.m. (UTC+8) today. 2 out of 2 sorties entered Taiwan’s southwestern part ADIZ. #ROCArmedForces have monitored the situation and responded.”

This indicates that the Chinese government is serious about its plan. Experts warn that such military efforts could further escalate tensions in the region. In the upcoming days, China is expected to increase its military presence and carry out more strategic maneuvers around the island to assert its control.

How Taiwan Responds to China’s Move?

In response, Taiwan is also taking efforts to strengthen its defenses. National Chung Shan Institute of Science and Technology President Lt. Gen. Lee Shih-chiang announced on Monday that the institute is working on cost-effective air defense munitions. The goal is to stop China from overwhelming Taiwan’s advanced missile systems with large quantities of inexpensive weapons. Lee added that the necessary plans are already in place.

China’s Taiwan Affairs Office sharply criticized Taiwan President Lai Ching-te for a speech emphasizing increased defense spending and the protection of the island’s democracy. He stated, “People like Lai Ching-te should not miscalculate; if they dare to take reckless risks, they ​will dig their own ​grave.”

It is worth noting that these increasing China-Taiwan tensions come as the US-Iran war enters its third week. Thus, the ongoing geopolitical conflicts have created market disturbances, which maintain investor uncertainty about the current situation.

Will Crypto Market See Another Major Fall?

Currently, the crypto market has been experiencing a notable rebound despite the Middle East tensions. Bitcoin has surged to $74k, sparking fresh optimism.

However, the ongoing China-Taiwan conflict has created new challenges. It is now affecting digital assets even though the crypto market saw a rebound recently. The ongoing war will negatively impact top tokens as their current gains will be erased. The global situation will lead investors to sell off their risk assets, which include cryptocurrencies, and in turn, create a massive market downturn.

coingape google news

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Newsletter
Your crypto brief.
Delivered every day.
  • Insights that move markets
  • 100,000 active subscribers
By signing-up you agree to our Terms and Conditions and Privacy Policy.
About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.