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We do a fairly basic implementation that only tracks the state of the type character you're over and its pair (e.g. "[" and "]"). This is similar to what Vim does.
It can't handle strings very well - something like "|( ')' )" where | is the cursor will cause it to go to the ) in the quotes, even though it should skip over it.
PRs welcomed! I have this case at low priority because I believe it's a lot of effort for very little gain.
Ideally though, VSC implements microsoft/vscode#7177.