US-China friction over Taiwan likely to have worrying impacts on global stability.

Taiwan rejects the “one country, two systems” model proposed by Beijing in a white paper published this week, the self-ruled island's foreign ministry said on Thursday.

China on Wednesday (Aug 3) continued to voice its anger at US House Speaker Nancy Pelosi's visit to Taiwan calling the move "dangerous and stupid" as it announced new economic measures and other sanctions against the island.