Monthly Archives: June 2025 - 2. page

Shanghai-based news outlet Guancha.cn reported that, on June 18, New Zealand announced the suspension of NZ$18.2 million in funding to the Cook Islands, nation in the South Pacific with political links to New Zealand. The New Zealand government cited a breach of trust in their bilateral relationship. The decision came after the Cook Islands deepened ties with China without sufficient consultation with New Zealand, which is required under their security and diplomatic agreements. The Cook Islands, a self-governing territory in free association with New Zealand, relies on New Zealand for defense and security, and its citizens hold New Zealand citizenship.

The Cook Islands’ Foreign Ministry acknowledged a “difference in understanding” regarding consultation obligations and stated that both sides are working to resolve the issue. They have established formal dialogue mechanisms and an assessment of the risks posed by the agreements between the Cook Islands and China are underway.

In February of 2025, Cook Islands Prime Minister Mark Brown visited China and signed several cooperation agreements covering areas such as deep-sea mining and education, not involving matters of security. The government of New Zealand later argued that proper consultation should have occurred before the deals were finalized.

This incident reflects broader concerns in New Zealand and Australia about China’s expanding influence in the Pacific, which they increasingly perceive as a potential security threat. Earlier in 2025, New Zealand also cut off development aid to Kiribati over similar issues related to China’s presence in the region.

Source: Guancha.cn, June 19, 2025
https://www.guancha.cn/internation/2025_06_19_780041.shtml

CCP mouthpiece Huanqiu Times published an article by Chen Hong, Director of the Australian Studies Center at East China Normal University, calling Australia to stop following the U.S. to deter China. The following are key points from the article:

“After the U.S. announced a review of the AUKUS project, Australian Prime Minister Albanese tried to address the issue at the G7 summit but was ignored. This once again reveals the U.S.’s self-serving foreign policy. In AUKUS, the U.S. controls the wheel, and Australia is just a passenger.

“Many Australians are now realizing that the 368 billion Australian Dollar investment in AUKUS is a gamble and may only make Australia a disposable piece on America’s strategic chessboard.

“Australia’s dilemma comes from blindly following the U.S. Indo-Pacific strategy and lacking independent defense planning. In the past, Australia balanced its U.S. alliance with regional economic engagement, especially benefiting from ties with China. But since 2017, it has fully tied itself to the U.S.

“Now Australia faces a choice: continue as a “cash machine” for the U.S. military or become a stabilizing force in the Asia-Pacific. Australia needs an independent security strategy based on its own interests – not America’s – or it risks blindly walking toward disaster.”

Source: Huanqiu Times, June 19, 2025
https://m.huanqiu.com/article/4NAA14feSPl

Following the United States’ imposition of additional tariffs on China earlier this year, Chinese exports to Asian countries have increased significantly, sparking concerns about “origin laundering” practices. Some Singapore logistics companies have reportedly received inquiries from Chinese manufacturers seeking assistance in obtaining certificates of origin to disguise Chinese goods as “Made in Singapore.”

According to a research report by Nomura economist Sonal Varma, Asian countries’ imports from China have accelerated markedly since President Trump first signed the executive order imposing tariffs on China in February. Growth jumped from 17.3% year-on-year in February to an average of 21.7% in March and April.

This surge represents approximately 8.5% of Asian countries’ total monthly imports from China, equivalent to roughly $90-100 billion annually. Countries experiencing increased imports from China include Indonesia, Thailand, Malaysia, India, Vietnam, and Singapore.

The imported goods include both products for local markets and those transshipped to third countries, with transshipment primarily aimed at avoiding tariffs and concealing origins. Recent increases have been observed in machinery, electronics, chemicals, toys, optical and medical instruments, rubber, and plastics.

Evidence suggests Vietnam primarily transships machinery, electronics, and plastic products; Malaysia and India focus on machinery and electronics; Indonesia handles chemicals; and Thailand specializes in electronics.

Singapore logistics company Penanshin’s director reported rejecting a request from a mattress manufacturer to help obtain Singapore origin certificates for products made entirely in China. Another freight company, MP Consol, noted receiving such “backdoor” inquiries regularly and maintains strict documentation requirements.

With the 90-day tariff grace period ending in early July, Singapore faces a 10% baseline tariff rate, relatively lower than many other regions, requiring stricter oversight from local small and medium enterprises.

Source: Central News Agency (Taiwan), June 18, 2025
https://www.cna.com.tw/news/acn/202506180094.aspx

CCP mouthpiece Huanqiu Times published an article by Kim Heung-kyu, Director of the U.S.-China Policy Institute at Ajou University, South Korea. He suggests that with the new South Korean government in place, many expect improvements in China-South Korea relations. South Korean does not need to join the “anti-China deterrence alliance.”

“A key issue is how South Korea can balance between China and the U.S. to protect its own interests. The U.S. wants to shift the alliance into an ‘anti-China deterrence alliance,’ pressuring South Korea to increase defense spending, redeploy U.S. forces, and make greater use of military bases. However, from South Korea’s perspective, the alliance mainly addresses the security of the Korean Peninsula. Expanding it against China would cost more than it benefits and could trigger strong domestic opposition.

“Since the U.S. launched a new tariff war in April, South Korea’s industries have been seriously affected. I believe South Korea and Japan will seek new regional cooperation, opening space for renewed China-Japan-Korea collaboration under frameworks like the Regional Comprehensive Economic Partnership (RCEP).

“China remains South Korea’s largest trading partner and key investment destination. It is unrealistic for a trade-driven country like South Korea to cut ties with China. The region should pursue shared peace and prosperity beyond nationalism. In this, China’s role is crucial.

“I expect the Lee Jae-myung administration will adopt a cautious, forward-looking China policy, with a core focus on regional and strategic stability, resisting rapid shifts or coercive tactics by any major power (Editor’s comments: possibly referring to the U.S. here).”

Source: Huanqiu Times, June 19, 2025
https://m.huanqiu.com/article/4NAAEbUKUxv

Nearly 80 percent of Australians still do not trust China, and 69 percent believe that China will pose a military threat to Australia in the next 20 years, according to a poll conducted by Australian think tank Lowy Institute. Meanwhile, for the first time since 2020, more people view China as an economic partner (50 percent) than as a security threat (47 percent). Mingpao, one of the primary Hong Kong newspapers, ran an article going over the results of the poll.

Only a quarter of Australian respondents have confidence in the way US President Trump has been handling international affairs, and only 16 percent have confidence in Chinese President Xi Jinping, up four percentage points from the prior poll. The poll also shows that 63 percent of respondents believed that the United States would come to Australia’s aid if it were attacked.

The poll was authored by Ryan Neelam, research director of the Lowy Institute, who said that although Trump’s “shocking” and “unconventional” foreign policy may undermine Australians’ trust in the United States, the respondents still support the close military alliance between the U.S. and Australia.

Source: Mingpao, June 21, 2025
https://tinyurl.com/355sv9rk