The shooting down of a Chinese drone by Taiwan’s military on September 1 has marked a new phase in the already simmering tensions across the Taiwan Strait, highlighting the growing risks of escalation, even if unintended. Over recent weeks, China’s military has carried out unprecedented military drills surrounding Taiwan, following the visit last month of U.S. House Speaker Nancy Pelosi. Some manoeuvres crossed the median of the Taiwan Strait and were declared by China’s military to have also taken place in territorial waters claimed by Taiwan. Taiwan soberly chose not to engage the PLA vessels. In the wake of the drills, the Chinese military has subsequently sought to continue asserting Beijing’s territorial claims by sending drones into Taiwan’s airspace. Photographs taken up close of Taiwan military personnel were subsequently shared on social media, raising pressure on Taipei to show a response. While most observers expect that a Chinese invasion remains too risky a prospect for the Communist Party leadership in the immediate future, an unintended escalation no longer remains a remote possibility. Most countries, including India, have preferred to stay out of the Taiwan issue, considering the One China Policy and the needs of the complicated relations with China. But sooner rather than later, they will need to assess the implications to their own security interests of a serious crisis. Taiwan’s status as a lynchpin in the global semiconductor industry is a case in point. While India’s recent reference to the “militarisation” of the strait is not a reflection of a major change in its approach, New Delhi has appeared to show greater willingness to do more with Taiwan particularly in the economic realm, such as setting up an alternative base for semi-conductor manufacturing in India. These are, even if long overdue, steps in the right direction.