Concerns Xi Jinping could invade Taiwan as a ‘distraction’ from financial instability

Liberal Party Defence and National Security Policy Chair Lincoln Parker analyses China’s financial instability as it goes through a US dollar funding “crisis”.

Mr Parker said the Chinese President is selling as many US dollar assets as he can to try and “get themselves out of a mess”.

“He is going through a very bad time and as a dictator, you do not want to be subject to questions from your own people who are going to be hurting even more than they currently are,” he told Sky News host Erin Molan.

“Will that mean that he would move up his timeline to invade Taiwan? Well, you can probably see that would be a nice distraction for him to do so.”

The US stands by the "One China policy" which recognises the People's Republic of China as the sole legal government of China.