Connect with us

Asia

China delays Pentagon policy chief’s visit to leverage $14 billion Taiwan arms deal

Published

on

Beijing is delaying approval for a proposed visit by the Pentagon’s top policy official as it seeks to leverage the trip to pressure President Donald Trump over a looming $14 billion arms package for Taiwan.

Elbridge Colby, the Under Secretary of Defense for Policy, has discussed a summer visit to Beijing with Chinese officials, according to people familiar with the matter. However, China has signaled it cannot authorize the trip until Trump determines how to proceed with the weapons sale.

The Financial Times reported in February that the administration was preparing the package following the announcement of a record $11.1 billion arms sale in December. Beijing reacted to that announcement with anger, canceling a previous round of negotiations regarding a potential visit by Colby.

In an interview with Fox News last week, following a summit with President Xi Jinping, Trump stated he was holding the weapons “in abeyance,” adding that they served as a “very good bargaining chip.”

Trump subsequently declined to confirm whether he would ultimately approve the package, a move that has sparked concern in Taipei. While the administration had initially planned to notify Congress of the sale in February, it deferred the decision following criticism from Beijing.

On Wednesday, when questioned on the matter, Trump hinted at a possible conversation with Taiwanese leader Lai Ching-te.

As president-elect in 2016, Trump spoke with then-President Tsai Ing-wen. However, no American president has spoken directly with a Taiwanese leader since Washington shifted diplomatic recognition from Taipei to Beijing in 1979.

“I suspect Beijing will use any future visit by Bridge Colby or Defense Secretary Pete Hegseth as leverage to force the Trump administration to delay, divide, or downgrade a potential arms sale package to Taiwan,” said Zack Cooper, an Asia security expert at the American Enterprise Institute.

Hegseth became the first US defense secretary to visit China since 2018 when he accompanied Trump to Beijing last week. It marked the first time a Pentagon chief has joined a president on a diplomatic mission to China.

The Pentagon stated that officials do not comment on “potential travel.” However, a defense official told the Financial Times that the department is “committed to building upon President Trump and Secretary Hegseth’s historic visit to Beijing.”

“Secretary Hegseth, Under Secretary Colby, and other key officials from the department are already in regular contact with their PRC counterparts and look forward to continuing this in a spirit of respect, realism, and candor,” the official said.

A person familiar with the situation noted that Colby intended to use the visit to Beijing to discuss a return trip for Hegseth.

“Colby’s visit to China would provide an opportunity for the US to convey concerns about China’s pressure and coercion against US partners and allies, its nuclear modernization, and its cyber and space activities,” said Bonnie Glaser, a China expert at the German Marshall Fund.

Glaser added that Colby could provide details on the US national defense strategy, which he helped author, while also discussing military applications of artificial intelligence and crisis communications.

Trump faces a strategic impasse as he weighs the $14 billion package, which includes Patriot interceptor missiles and Nasams, an advanced surface-to-air missile system. He must calculate the potential impact of the sale on Xi’s expected reciprocal state visit to Washington in September.

“The Chinese are well aware that President Trump will not end arms sales to Taiwan, but their ultimate goal is to delay the announcement of another major weapons package until after Xi Jinping’s state visit to Washington in late September,” said Dennis Wilder, a former senior CIA specialist on China.

The Chinese Embassy in Washington stated it was “unaware” of the specific situation regarding Colby. However, it reiterated that China “firmly opposes US arms sales to China’s Taiwan region”

Asia

China expands Africa arms sales, displacing France and Western rivals

Published

on

China is overtaking Western suppliers, particularly France, by expanding its exports to African nations beyond small arms, armoured vehicles, trucks, and artillery to include air defence systems, combat drones, and electronic warfare assets.

According to a report by the South China Morning Post, based on researchers and military movements across the region, African buyers are gravitating towards the advantages of quality and accessibility offered by the Beijing administration.

In April, four vehicles spotted in a Malian army convoy were identified by defence intelligence company Janes as Chinese-manufactured Yitian-L air defence systems.

In September, the Presidency of Burkina Faso published footage of military equipment inspections and testing.

Observers noted that the released footage featured a mobile surveillance radar and a missile launch vehicle belonging to the Sky Dragon family produced by Chinese company Norinco.

In August, Cote d’Ivoire also showcased Wing Loong II armed unmanned aerial vehicles procured under a contract signed in June 2024 with Chinese state-owned enterprise Catic.

A distinct shift is unfolding in the weapons procurement trajectory of Sahel countries that have ended defence cooperation with France and run into US security assistance restrictions.

Mali, Burkina Faso, and Niger formed the Alliance of Sahel States in September 2023, transitioning the structure into a confederation in July 2024.

Following the transfer of power to military authorities, these nations progressively severed ties with France and turned their attention towards new partnerships.

Western bans and budget constraints pave way for Beijing

David Shinn, a former US ambassador to Burkina Faso and Ethiopia and a specialist in China-Africa relations, pointed out that the quality of Chinese military equipment has risen and that Beijing is willing to enter markets where the West hesitates.

“Unlike many Western countries, China will sell military equipment to any country so long as it is not under a United Nations sanction,” Shinn said.

Experts speaking to the newspaper stated that high-technology defence systems, previously purchased mainly from the West and accessible to only a few countries on the continent, are now being shipped more frequently to Africa by China.

Katarina Djokic, a researcher with the Arms Transfers Programme at the Stockholm International Peace Research Institute (SIPRI), said affordable pricing, including maintenance costs, plays a critical role in procurement choices.

Djokic noted that countries maintaining good relations with the West also procure weapons from China.

According to SIPRI assessments, shipments to African nations have not yet reached a volume large enough to fundamentally alter China’s overall arms export figures.

SIPRI data for the 2021-2025 period placed China as the world’s fifth-largest supplier, accounting for a 5.6% share of global arms exports.

During this timeframe, China’s largest customer was Pakistan with a 61% share, followed by Serbia at 6.8% and Thailand at 4.7%.

In SIPRI’s records for 2020-2024, Africa accounted for 14% of China’s major arms exports, ranking as its second-largest market behind Asia and Oceania’s 77% share.

Between 2020 and 2024, the Beijing administration carried out arms sales to a total of 44 countries worldwide.

Continue Reading

Asia

Pentagon plans covert spy ring for economic war on China, report says

Published

on

The US Department of War (Pentagon) is reportedly planning to establish an extensive network of deep-cover agents to wage economic warfare against China and other adversaries of the US.

According to a report by The Washington Post citing six sources familiar with the initiative, the plan has not yet been put into effect. The newspaper reported that the initiative remains at the planning stage. The Pentagon, however, denies that any such initiative exists.

The report said the operatives would pose as entrepreneurs or private sector employees while concealing their ties to the US government. The network’s mission would be to gather economic intelligence and counter China.

The programme is led by Tom Rakusa, who spent 39 years at the CIA. Rakusa serves as a senior adviser to Deputy Secretary of Defence Steve Feinberg.

The proposed spy network is seen as part of a broader policy by the Donald Trump administration to sharpen economic competition with other countries.

The US is already resorting to tariffs, export controls, and investment in strategic sectors, alongside expanding its economic intelligence gathering.

According to The Washington Post, the new initiative demonstrates the Pentagon’s growing influence under the Trump administration. The department is currently seeking a record budget of $1.5 trillion.

Trade war flares up again with Trump’s return to the White House

The trade friction between the US and China flared up again following Donald Trump’s return to the White House. In April 2025, Washington raised tariffs on Chinese goods to as much as 145%, and Beijing retaliated with tariffs of up to 125%.

In May, US Secretary of State Marco Rubio described China as the primary geopolitical challenge facing Washington. Rubio said that to avoid war, the two sides needed to manage their conflict of interests.

In July, Chinese expert Zheng Yongnian did not simply warn that underestimating the US could prove to be a “fatal mistake”; he stated it explicitly.

According to Zheng’s assessment, the US maintains its primacy through the role of the dollar, its military superiority, and its technological advantages.

Even so, the two sides agreed in June to declare a truce and lower tariffs. In autumn 2026, the US and China extended their trade truce until 10 January 2027.

US Treasury Secretary Scott Bessent said the extension would give the parties more time to discuss economic issues.

Trade deals do not eliminate the strategic contradictions between the two countries. Financial Times columnist Rana Foroohar likened the race between the two nations for commercial, technological, and geopolitical influence to the 19th-century “Great Game” between the Russian and British empires.

Foroohar cited China’s standing in shipbuilding and commercial maritime transport, as well as its expanding footprint in overseas ports, among its key advantages.

Continue Reading

Asia

Japan plans curbs on short-term home sales to cool urban prices

Published

on

Japan’s ruling Liberal Democratic Party (LDP) plans to restrict short-term property trading to rein in surging home prices in major urban centres, particularly Tokyo.

Led by Prime Minister Sanae Takaichi, the party aims to make support for working households a core priority ahead of local elections scheduled for April next year.

The LDP’s research commission on housing and land policy met on Wednesday to discuss the issue.

According to a report by the Nikkei Asia newspaper, Commission Chair and LDP lawmaker Midori Matsushima said at the opening of the meeting: “Prices of newly built condominiums across Tokyo’s 23 wards have doubled over the past decade. We must work on measures ensuring that people who wish to live in these homes can actually afford to buy them.”

Homeownership in the capital has become virtually unattainable for broad segments of the population. According to data from the Real Estate Economic Institute, the average sale price of a newly built condominium in Tokyo’s 23 wards rose %18.5 in fiscal 2025 compared with the previous year, reaching 137.84 million yen (around $872,000).

Meanwhile, statistics from the Ministry of Labour show that the average annual income of a full-time worker in the capital remained at 6.78 million yen in fiscal 2025. This widening gap between incomes and residential property prices is directly shaping political priorities.

During its campaign for the House of Representatives election in February, the LDP pledged to curb speculative transactions across metropolitan Tokyo and other regions. Earlier this month, a party project team focused on policies concerning foreign nationals also submitted a recommendation urging the government to introduce immediate tax measures against rising home prices.

Under current legislation, profits realized from properties sold within five years of acquisition are classified as “short-term capital gains”. These returns face a tax rate approaching %40, including income tax and local inhabitant tax.

Although this rate is twice the approximately %20 levied as “long-term capital gains” tax on properties held for more than five years, several party members argue it remains insufficient to deter speculation. Calls to tighten the framework may be considered as part of the annual tax reform package to be drafted in December alongside the LDP’s coalition partner, the Japan Innovation Party.

The ruling bloc wants to present concrete housing pledges to voters heading to the polls in April across numerous urban centres, including 22 of Tokyo’s wards where local assembly terms expire.

“We need to support families with children, who are typically at the stage of purchasing a home,” a senior LDP official said.

Opposition parties are also preparing alternative proposals that target not only prospective homebuyers, but also residents forced into the rental market by high property prices and now affected by escalating rents.

Tax steps take precedence over limits on foreign buyers

Several countries seeking answers to housing affordability pressures have imposed direct restrictions on foreign purchasers. In South Korea, real estate policies played a major part in the declining public approval ratings of President Lee Jae Myung.

In August 2025, authorities in Seoul introduced an approval requirement for foreign nationals buying homes in the capital and adjacent areas, while also mandating that buyers reside in the properties for at least two years.

Canada and Australia have enacted temporary bans on foreign residential purchases, while Singapore levies a %60 additional stamp duty on foreign buyers.

The role of overseas investors in Japan’s property market also drew debate during the February election. However, restrictions aimed directly at foreign nationals are viewed as potentially conflicting with international trade and services agreements.

Consequently, rather than imposing restrictions based on the nationality of buyers, the government is discussing tax measures aimed at speculative real estate deals, such as rapid resales.

Fears that sharp market measures could shake regional banks

Concerns have also surfaced that aggressive steps to force down prices could harm the wider national economy.

A senior LDP tax official cautioned that a steep drop in land prices could weaken local financial institutions, warning: “We must consider the impact on regional banks.”

The real estate sector accounts for roughly %18 of total lending by Japanese banks. This proportion sits well above the %10 level recorded during Japan’s bubble economy of the mid-to-late 1980s.

At certain regional banks, property lending accounts for nearly half of total loan portfolios.

According to March 2025 data from the Financial Services Agency, approximately one-quarter of all loans extended by regional banks to the real estate sector are concentrated directly in Tokyo’s five central wards.

Buoyant asset valuations, supported in part by rising stock indices, have underpinned strong public approval for the Takaichi administration. Observers note that property interventions designed to cool the market could drag down equity prices and weaken the government’s standing.

A senior official on the LDP research commission stressed that decision-makers must act with caution regarding the scope and timing of any measures intended to bring price increases under control.

Continue Reading

MOST READ

Turkey