U.S. East Asian envoy says investors are overpricing Taiwan risk, calls Xi a 'very rational actor'

SINGAPORE – Investors are overestimating the risk of conflict across the Taiwan Strait, a top U.S. East Asian diplomat said, stressing that deterrence and "substantial consequences" would keep Beijing from taking the island by 2027. While the U.S. government has often indicated Beijing's directive for the People's Liberation Army to be ready for military action in Taiwan by 2027, Beijing has never publicly confirmed the timeline. "I actually think the most mispricing is with regard to Taiwan, where actually I think people are overpricing the risk of something happening across the Taiwan Strait," said Michael DeSombre, assistant secretary of state for East Asian and Pacific affairs, told CNBC on Thursday. "Both China and the U.S.