Jinghua Times recently reported that the new version of the Chinese smart passport (which has an implanted chip) has triggered complaints from neighboring countries. The new passport includes pages with pictures and a map of China that includes disputed regions in Tibet and the South China Sea. So far, Vietnam, The Philippines, and India have complained. These countries are instead issuing the visa on a separate piece of paper instead of the visa page of the passport. Normal entry into these countries is still granted, even if the new passport is used. The United States suggested that it still considers the new passport to be a valid document and U.S. officials will still use the new passport for visa and stamps. However that does not mean the United States agrees with the borders drawn on the map. A spokesman for the Chinese Ministry of Foreign Affairs commented that neighboring countries should not overreact to the map part of the passport.
Source: Jinghua Times, November 30, 2012