What Happened: U.S. Speaker of the House Nancy Pelosi landed safely in Taiwan's capital of Taipei at around 10:40 p.m. local time, and China did not implement a no-fly zone — as Beijing had previously signaled it might — to stop her, Reuters reported Aug. 2. However, Beijing announced import bans on Taiwanese food producers, as well as live-fire drills in the seas surrounding Taiwan set for Aug. 2 and Aug. 4-7.

Why It Matters: Beijing and Washington are attempting to maintain military deterrence and threat credibility while minimizing the risk that Pelosi's visit results in a military conflict. Beijing's live-fire exercises may push the Taiwanese populace to select more pro-sovereignty candidates in the upcoming November local elections. In addition, they will disrupt some aerial and maritime trade in the region, which is one of the busiest shipping regions in the world.

Background: Pelosi will meet with Taiwanese President Tsai Ing-wen on Aug. 3. The last time Beijing conducted live-fire exercises in the water around Taiwan in 1995, it backfired by boosting the popularity of Taiwan's pro-sovereignty presidential candidate Lee Teng-hui, who won the presidency in 1996.