Taiwan cancels flights as China holds military drills

By JOE McDONALD
AP Business Writer

BEIJING (AP) — Taiwan has canceled airline flights as China fired missiles near the island in retaliation for a top American lawmaker’s visit, but the possible impact on shipments of processor chips and other goods needed by global industries was unclear. China ordered ships and planes to avoid the military drills that encircled the island, which the mainland’s ruling Communist Party claims as part of its territory. Beijing announced “live-fire exercises” to punish Taiwan after U.S. House of Representatives Speaker Nancy Pelosi made a one-day visit, defying warnings from Beijing. China also has banned imports of hundreds of Taiwanese food items including fish, fruit and cookies.