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Geo-Strategic Trend - 2. page

China Builds Installations in China–South Korea Joint Waters, Raising Security Concerns

A December 9 report by Beyond Parallel, a Korea-focused website run by the U.S. think tank Center for Strategic and International Studies (CSIS), revealed photographs of 16 Chinese installations constructed within the China–South Korea Interim Measures Zone in the Yellow Sea. Under the 2001 China–South Korea Fisheries Agreement, the overlapping exclusive economic zones in the Yellow Sea are designated as jointly managed waters. The report notes that the construction of permanent facilities in this area violates the agreement.

According to the report, China has repeatedly refused South Korea’s requests to remove the installations and has unilaterally declared no-navigation zones around them. Since 2020, South Korean vessels have attempted to monitor Chinese activities 135 times, with 27 of those attempts intercepted by Chinese coast guard ships. Analysts also note that China has deployed 13 multifunctional buoys capable of collecting oceanographic data but potentially usable for underwater surveillance, including monitoring submarine activity—underscoring their dual civilian-military purpose.

Experts argue that these deployments reflect China’s broader “gray-zone” strategy, in which ostensibly civilian facilities are used to advance military objectives and strengthen maritime control. The Yellow Sea is considered strategically vital for Chinese naval operations moving south from bases in Shandong Province and the Bohai Gulf. The report urges the United States and South Korea to consider publicizing the coordinates of the installations. Meanwhile, South Korean media have called for reciprocal measures, citing similar responses by Vietnam, and South Korea has already begun countermeasures, including deploying its own floating platform in disputed waters—officially for environmental research—to monitor Chinese activities.

Source: Epoch Times, December 14, 2025
https://hk.epochtimes.com/news/2025-12-14/16128304

Huanqiu Times: Defending Peace in a Language the Enemy Understands

Huanqiu Times published an article justifying China’s recent military actions toward Japan. On the night of December 9, a joint China–Russia bomber patrol was conducted over international airspace east of the Kuril Islands, approximately 700 kilometers from Tokyo. Commentators noted that the patrol placed Tokyo within the potential strike range of the bombers, which are capable of carrying long-range cruise missiles and hypersonic weapons.

Separately, China stated that its Liaoning aircraft carrier group, operating east of the Miyako Strait in accordance with previously announced schedules, was repeatedly approached and harassed at close range by Japanese F-15 fighter jets. According to China, the Japanese aircraft deliberately attempted to interfere with flight paths and communications, prompting Chinese aircraft to activate fire-control radar in response.

Taiwan leader Lai Ching-te publicly condemned China’s actions as inappropriate.

The article criticized Lai Ching-te and Japanese prime minister Sanae Takaichi, describing them as figures promoting division and militarism. It concludes by stating that China is issuing a calm, firm, and reasoned warning in terms its adversaries understand: China’s sovereignty, unity, and territorial integrity are inviolable and will not be compromised.

Source: Huanqiu Times, December 11, 2025
https://taiwan.huanqiu.com/article/4PV6wsMoV9N

RFI: EU Raids Temu’s European Headquarters

Radio France Internationale (RFI) recently reported that the European Union has intensified its oversight of Temu, a Chinese e-commerce platform. Multiple sources confirmed that the European Commission carried out a surprise inspection of Temu’s European headquarters in Dublin, focusing on whether the company has received subsidies from the Chinese government that could constitute unfair competition in the EU market.

A European Commission spokesperson confirmed that “the Commission conducted an unannounced on-site inspection of a company operating in the EU e-commerce sector, pursuant to the Foreign Subsidies Regulation (FSR),” though the Commission did not disclose the company’s name or location.

The FSR is designed to curb market distortions in the EU caused by subsidies granted by non-EU governments. Companies found in violation may face fines of up to 10 percent of their annual global turnover. The inspection comes as the EU tightens regulation of low-cost goods from China, with a surge of inexpensive parcels—most originating from China—entering the European market through cross-border e-commerce channels.

According to Temu’s latest transparency report, the platform has approximately 116 million monthly active users in the EU. As the EU continues to strengthen digital regulation and fair-trade enforcement, the legal and commercial environment facing Temu is becoming increasingly restrictive.

Source: RFI, December 10, 2025
https://tinyurl.com/cum9fdtv

Lianhe Zaobao: China’s November Exports Rebound as Shipments to the U.S. Continue to Slow

Singapore’s leading Chinese-language newspaper Lianhe Zaobao reported that newly released data from China’s General Administration of Customs show China’s exports grew 5.9 percent year over year in November, exceeding market expectations.

By product category, exports of machinery, electronics, and high-tech goods accelerated. Shipments of integrated circuits and automobiles posted particularly strong growth, rising 34.2 percent and 53.0 percent, respectively, from a year earlier. By destination, exports to the European Union surged 14.3 percent, the fastest pace since July 2022, with France, Germany, and Italy all recording double-digit increases. Exports to Africa and Latin America also rose sharply, up 28.2 percent and 14.1 percent, respectively. In contrast, export growth to ASEAN slowed to 8.4 percent, the weakest increase since February.

Exports to the United States declined further, plunging 28.6 percent year over year in November, marking the eighth consecutive month of double-digit drops. Analysts cited by Lianhe Zaobao said the overall rebound suggests Chinese exporters are making significant progress in expanding into non-U.S. markets. They added that the slowdown in exports to ASEAN may be linked to a retreat in re-export trade following higher U.S. tariffs on Southeast Asian countries.

China’s export growth outpaced import growth in November, pushing the country’s cumulative trade surplus to a record high exceeding US$1 trillion.

Source: Lianhe Zaobao, December 8, 2025
https://www.zaobao.com.sg/news/china/story20251208-7933064

China’s Steel Industry Faces Challenges; Analysts Warn Exports Could Halve Over Five Years

In 2025, China’s crude steel production and apparent steel consumption both declined. From January to October, the country produced 818 million tons of crude steel, down 3.9 percent year-on-year, while domestic apparent consumption fell from a 2020 peak of 1.04 billion tons to 890 million tons in 2024, averaging a 3.8 percent annual decline. In the first three quarters of 2025, apparent consumption dropped 5.7 percent year-on-year to 649 million tons. Profitability in the steel sector also weakened, with October profits down 41 percent month-on-month and 25.9 percent year-on-year, leaving a profit margin of just 1.2 percent.

The China Iron and Steel Association (CISA) noted a severe imbalance between supply and demand, driven by structural economic shifts such as the cooling real estate market and slower infrastructure spending, signaling the end of China’s steel-led growth era. Although steel exports increased 9.2 percent to 87.96 million tons in the first three quarters, future exports face significant headwinds. Analysts warn that China’s direct steel exports could be halved over the next five years, potentially reducing apparent consumption to around 750 million tons and fundamentally reshaping the industry.

Trade tensions are intensifying these challenges. Vietnam, China’s largest overseas steel market, imposed anti-dumping duties of 23.1 – 27.83 percent on Chinese hot-rolled steel in July, followed by an anti-circumvention investigation. Consequently, China’s steel exports to Vietnam fell 24.8 percent in the first three quarters of the year. Beyond Vietnam, at least 11 countries have implemented anti-dumping or safeguard measures against Chinese steel since early 2024, causing overall exports to affected markets to decline nearly 30 percent year-on-year through July 2025.

Source: Epoch Times, December 3, 2025
https://www.epochtimes.com/gb/25/12/3/n14647861.htm

Japan and Philippines Accuse China of Dangerous Military Actions, Heightening Regional Security Tensions

Japan and the Philippines have recently accused the People’s Liberation Army (PLA) and China of “dangerous military conduct,” underscoring sharply rising security tensions in the region. Japan reported that Chinese warplanes from the carrier Liaoning locked their fire-control radar on Japanese Air Self-Defense Force F‑15 fighters twice near Okinawa — an act Tokyo described as reckless and hazardous to international air safety. Meanwhile, the Philippines alleges that Chinese forces fired warning flares at one of its patrol aircraft over a disputed area of the South China Sea.

The incidents occurred just weeks after Japan’s new prime minister suggested the possibility of collective self-defense in response to a crisis in Taiwan, a stance that has already drawn a sharp reaction from Beijing. Both Tokyo and Manila have formally protested the latest actions, demanding that China take measures to prevent such behavior from recurring.

Source: VOA, December 9, 2025
https://www.voachinese.com/a/japan-and-the-philippines-accuse-china-of-dangerous-military-conduct-escalating-security-pressure-on-us-allies-20251208/8091444.html

CSIS: Wargame Simulation Indicates Chinese Invasion of Taiwan Unlikely to Succeed if Taiwan, U.S., and Japan Respond Jointly

Japan’s Prime Minister Sanae Takaichi’s recent comments regarding a potential “Taiwan contingency” have prompted a strong reaction from Beijing. Analysts argue that this response reflects more than diplomatic friction—it reveals China’s underlying concerns about U.S.–Japan military cooperation in the event of a Taiwan Strait conflict. Japanese media, citing former Maritime Self-Defense Force officer and current military analyst “Major General Wolf,” note that these concerns rest on concrete strategic simulations rather than conjecture.

A 2023 wargame assessment by the Center for Strategic and International Studies (CSIS) examined 24 potential invasion scenarios. In the simulations, China secured victory in only two, and only when the United States and Japan failed to coordinate their actions. In nearly every other case, joint U.S.–Japan involvement significantly diminished the People’s Liberation Army’s (PLA’s) chances of occupying Taiwan.

Experts distill the formula for preventing a successful takeover into three interdependent factors: Taiwan’s determination to defend itself, U.S. military intervention, and Japanese logistical and basing support. All three components, they argue, are essential. China’s sharp response to Takaichi’s remarks underscores this strategic reality—robust trilateral alignment among Taiwan, the United States, and Japan would make a PLA victory in the Taiwan Strait highly improbable.

Source: Secret China, December 3, 2025
https://www.secretchina.com/news/b5/2025/12/03/1091482.html

People’s Daily: China and ASEAN Countries Accelerate Integrated Market Development Efforts

Chinese government news outlet People’s Daily reported that China and ASEAN member states are deepening cooperation in digital payments, e-commerce, AI, and supply-chain networks under an upgraded Free Trade Agreement, the “FTA 3.0 Protocol.”

The Thai central bank has integrated the country’s PromptPay system with major Chinese mobile payment platforms, including Alipay and WeChat Pay, enabling seamless QR-code payments for Chinese visitors. Huawei Cloud has “enhanced local transaction stability,” while Thai hospitals have begun using AI-powered translation tools to better serve Chinese-speaking patients.

Singapore has rolled out an AI travel assistant, offering itineraries in Chinese. China and Malaysia have jointly launched an AI-focused training academy integrating big data and generative AI into workforce development. Meanwhile, JD Logistics has established a major supply hub in Malaysia and is expanding its services into Vietnam.

Industrial cooperation is also strengthening, People’s Daily reports. China-ASEAN automotive collaboration now spans raw materials, production, and sales, “supported by unified standards and regional logistics networks.” At the border, China and Vietnam are building a smart port at Youyi Pass, “enabling 24-hour, zero-wait customs clearance to further streamline trade flows.”

Source: People’s Daily, December 3, 2025
https://world.people.com.cn/n1/2025/1203/c1002-40616109.html