Geo-Strategic Trend - 12. page

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, benefiting from the explosive growth of artificial intelligence (AI) business opportunities, and with a high base of 8.76 percent economic growth last year, the Taiwanese Directorate-General of Budget, Accounting and Statistics (DGBAS) significantly revised its economic growth forecast for this year upward to 9.64 percent, a 16-year high. This includes upward revisions to imports and exports, private consumption, and private investment. DGBAS Director-General Chen Shu-Tzu stated that the economic growth momentum is extremely strong.

Taiwan’s current economic boom is driven by exports, which boost investment and consumption. Major global cloud service providers (CSPs) continue to increase capital expenditures, coupled with the mass production of next-generation high-end servers. Demand was stronger than expected. DGBAS estimates that the total value of merchandise exports this year will reach US$894.5 billion, a significant upward revision of more than US$100 billion, setting a new record. The annual growth rate of merchandise exports is 39.77 percent, also the highest level in 50 years.

Source: CNA, May 29, 2026
https://www.cna.com.tw/news/afe/202605290275.aspx

A report published by Al Jazeera challenges China’s long-promoted narrative of a uniquely close China–Pakistan relationship. It argues that ties between Beijing and Islamabad are not driven by ideology or emotional affinity as they claim, but rather shared geopolitical interests centered on countering India. The report states that the $62 billion China–Pakistan Economic Corridor (CPEC), once promoted as a flagship Belt and Road Initiative (BRI) effort, has instead exposed mounting debt burdens, economic imbalances, and security risks.

The report reviews two historical secret arrangements between the two countries. The first was Pakistan’s 1963 transfer of control over the disputed Shaksgam Valley to China shortly after the 1962 Sino–Indian war, as part of a strategic alignment against India. The second involved alleged secret nuclear cooperation beginning in the 1970s after India’s nuclear test, including Chinese assistance in nuclear technology and weapons-related development.

CPEC has failed to deliver the prosperity initially promised. China is now Pakistan’s largest bilateral creditor, holding roughly $29 billion in loans, accounting for about 22 percent of Pakistan’s external debt. Pakistan has become increasingly dependent on Chinese debt rollovers. The report also highlights a major trade imbalance: China exported $20.2 billion worth of goods to Pakistan in 2025, while Pakistan’s exports only $2.8 billion to China.

Chinese-led infrastructure projects, including development around Gwadar Port, have reportedly generated local resentment because surrounding communities were largely excluded from ownership and economic benefits. Some Chinese BRI projects have also reportedly been scaled back or abandoned due to concerns over Pakistan’s repayment capacity and deteriorating security conditions.

During the 2025 India–Pakistan military clash, Pakistan extensively used Chinese-made weapons systems, including J-10C fighter jets, HQ-9 air defense systems, and PL-15 missiles. However, China’s diplomatic influence in de-escalating the conflict proved limited, while the United States played the leading role in mediating a ceasefire.

The report concludes that despite the economic difficulties surrounding CPEC, Beijing is unlikely to allow Pakistan to collapse because of its continuing strategic value as a counterweight to India.

Source: Renminbao, May 23, 2026
https://renminbao.com/rmb/articles/2026/5/23/95288b.html

A joint venture between French nuclear energy company Orano and Chinese battery materials firm Xiamen Tungsten New Energy Technology (XTC) has officially launched, with French Economy Minister Roland Lescure attending the groundbreaking ceremony on May 29. Lescure called the facility “a critical link in battery technology research and innovation,” and said the partnership would demonstrate that France, Europe, and China “can work together in a mutually beneficial way — not through destructive competition, but through cooperation.”

The plant, operating under the name Neomat CAM, is located in Dunkirk in northern France and targets the European electric vehicle market, with an annual production capacity equivalent to 500,000 EVs. It is expected to begin operations by the end of 2028.

Ownership stakes have shifted since earlier reporting. A July 2025 account indicated XTC held a 49 percent stake after contributing €103 million (US$ 112 million); however, more recent AFP reporting shows Orano now holds 49 percent while XTC has taken a 51 percent majority controlling interest.

Total project investment stands at €500 million (US$ 545 million), with roughly one quarter funded through France’s green industry tax credit program (C3IV). The project also includes a dedicated research and development center in Dunkirk, set to open alongside the factory. During construction, the site is expected to employ nearly 400 workers, with 400 permanent jobs to follow upon launch — 90% of which will be filled locally, according to Orano.

The Dunkirk site sits at the heart of France’s so-called “Battery Valley,” where all of the country’s major battery manufacturers are based in the Hauts-de-France region, including ACC, AESC, Verkor, and ProLogium. If market conditions allow, Neomat CAM aims to double its capacity to 80,000 tons annually by 2035 — enough for one million vehicles and roughly 10% of the European market.

Source: Radio France International, May 29, 2026
https://rfi.my/CkKH

A ceasefire agreement between the United States and Iran appears close to finalization, with Iran reportedly seeking to transfer its stockpile of highly enriched uranium to China for safekeeping. China’s Foreign Ministry, however, declined to directly address the request, saying only that Beijing remains willing to play a “constructive role” in reaching a political and diplomatic resolution to the Iranian nuclear issue.

Pakistani Army Chief Asim Munir, who has been mediating between Washington and Tehran, met with Chinese Foreign Minister Wang Yi in Beijing on May 25. Munir briefed Wang on the latest developments, stating that “an agreement is close to being reached,” and expressed hope that China would take a more active role. Wang praised Pakistan’s mediation efforts, calling Islamabad a trusted and capable intermediary, and offered the hopeful remark that “peace, though difficult, will ultimately come.”

Al Arabiya reported late on May 25, citing informed sources, that Iran is seeking Chinese guarantees before finalizing any deal to end the war, and has specifically requested that its highly enriched uranium be transferred to China. The sources also indicated that Munir was likely to travel to Doha, Qatar, to continue mediation efforts.

Chinese Foreign Ministry spokesperson Mao Ning, speaking at a routine press briefing on May 26, said China has maintained close communication with all relevant parties, including Iran, since the outbreak of hostilities, and has been actively working toward a ceasefire and peace.

Mao did not respond directly to whether China would accept Iran’s enriched uranium. She reiterated China’s consistent position of supporting peaceful resolution through dialogue and negotiation.

The U.S.-Iran ceasefire reached in early April is set to be extended by 60 days, during which both sides are expected to hold negotiations on Iran’s nuclear program. U.S. President Donald Trump, however, posted on May 25 that Iran’s enriched uranium must be handed over to the United States for destruction — or destroyed on-site or at another acceptable location.

Source: Central News Agency (Taiwan), May 26, 2026
https://www.cna.com.tw/news/acn/202605260231.aspx