Taiwan’s financial regulator has warned bank employees in China to be cautious of their remarks following Beijing’s expansion of laws threatening Taiwanese "separatists" with the death penalty. Financial Supervisory Commission Chairman Peng Jin-lung emphasised the importance of monitoring staff comments and behaviours, adding that individual cases will be scrutinised. Amid escalating US-China tensions and the COVID-19 pandemic, Taiwanese banks have reduced their Chinese investments significantly, with exposure now at 21% compared to 70% in 2014. While eliminating exposure entirely is unlikely due to the need to support Taiwanese businesses in China, risk management includes higher reserve requirements for loans in China. Peng also outlined ambitions to establish Taiwan as a major asset management hub in Asia, with plans to relax investment regulations further and encourage innovation in financial products.