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Beijing Lodges Formal Protest over Japan’s New Defence White Paper

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On August 5, China’s Foreign Ministry said it had lodged a formal protest with Japan over its newly released defence white paper. Beijing accused Tokyo of deliberately amplifying the so-called China threat, making unfounded claims about Taiwan and using them to justify the expansion of its military capabilities.

Japan published its annual defence report on August 4. The document states that China has intensified military activity around Taiwan and that the overall balance of forces across the Taiwan Strait is shifting rapidly in Beijing’s favour. Tokyo describes China’s military activities as a serious threat to Japan and the international community, as well as the country’s greatest strategic challenge.

China’s Foreign Ministry rejected the assessment, insisting that Taiwan is an internal Chinese matter in which Japan has no right to interfere. The ministry described Beijing’s military activities around Taiwan as “legitimate and reasonable“.

Beijing also accused Tokyo of seeking a pretext for its military build-up and gradually weakening Japan’s post-war defence restrictions. Chinese authorities urged Japan to stop using China to justify military expansion and to refrain from interfering in the Taiwan issue.

 

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China Draws Economic “Red Lines” Ahead of Trade Talks with the West

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Ahead of expected trade negotiations with the United States and the European Union, China is signaling that it does not intend to fundamentally alter its economic course, which is centered on manufacturing and high-tech industries. Beijing rejects Western accusations that state subsidies and excess production capacity distort global competition.

At the end of July, the Politburo of the Chinese Communist Party endorsed the continuation of the current economic policy. The leadership emphasized the need for targeted support and stronger domestic demand but did not unveil a new package of large-scale stimulus measures or structural reforms.

According to China’s Ministry of Commerce, allegations of overcapacity are being used to justify discriminatory trade measures against Chinese companies. Beijing argues that industrial and technological development is essential for narrowing the economic gap with advanced economies.

The United States and the European Union, however, maintain that state support, weak domestic demand and the rapid expansion of production capacity give Chinese companies a price advantage in foreign markets. Brussels and Washington identify subsidies, market-access barriers and unequal competitive conditions as key concerns.

Despite its firm rhetoric, Beijing is seeking to address certain domestic imbalances, though it is not considering major concessions. According to Reuters, China is drawing “red lines” ahead of negotiations with the West, signaling which aspects of its economic policy it is unwilling to change.

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Xi Jinping Calls for Stronger Anti-Corruption Efforts in China’s Military

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Chinese President Xi Jinping has called for a deeper fight against corruption within the country’s armed forces and for an acceleration of military modernization. According to information released on July 31, he made the remarks during a thematic study session of the Political Bureau of the Communist Party of China.

Xi said the People’s Liberation Army must remain under the absolute leadership of the Communist Party. He identified combat effectiveness as the primary measure of military development and noted that corruption undermines both the political unity and operational capabilities of the armed forces.

The Chinese leader placed particular emphasis on technological modernization. He said Beijing should accelerate the development of an “intelligent military system”, involving the broader use of unmanned technologies, artificial intelligence, and cyber-information systems in the military sphere.

The remarks were made ahead of the 99th anniversary of the founding of the People’s Liberation Army. During Xi Jinping’s tenure, the anti-corruption campaign has also targeted the military’s senior leadership and procurement system. According to the International Institute for Strategic Studies, the large-scale purge exposed problems within the command structure and affected the military’s combat readiness in the short term.

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China Accuses Germany of Provoking a Trade Confrontation

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China’s Foreign Ministry has urged Germany to focus on cooperation rather than searching for vulnerabilities in the Chinese economy. Ministry spokesperson Mao Ning made the remarks on July 29 in response to a Bloomberg report claiming that Berlin is examining possible leverage against Beijing in preparation for a potential trade confrontation.

According to sources, German officials are analysing trade flows and company data to determine the extent to which China depends on European technology and industrial expertise. The areas reportedly identified include German companies Trumpf and Carl Zeiss, which specialise in high-precision industrial and optical technologies.

Mao Ning said that interdependence within production and supply chains is a natural feature of the globalised economy. She added that China-Germany economic cooperation is based on mutual benefit and that the two sides should strengthen communication and coordination to support the stability of global supply chains.

Germany is seeking to reduce its economic dependence on China, although the Chinese market remains important for its largest companies. China remained Germany’s biggest trading partner in 2025, with bilateral trade in goods reaching approximately €250 billion. Around 5,000 German companies operate in China, increasing the economic risks of a possible trade confrontation for both sides.

Tensions between the two countries are also being fuelled by Germany’s trade deficit, growing competition from Chinese companies and disputes over Chinese state subsidies. While Europe is seeking to reduce its dependence on Beijing, China views such measures as protectionist.

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Beijing Criticizes New US Measures

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Beijing has criticized new US measures involving additional tariffs on Chinese goods and possible restrictions on Chinese companies operating in the artificial intelligence sector.

On July 27, China’s Ministry of Commerce accused Washington of pursuing “hegemonism in the field of artificial intelligence”. The statement followed warnings from senior US officials that Chinese AI companies could face investigations, sanctions and trade restrictions if the unlawful use of American technology is confirmed.

The dispute concerns, among other companies, Beijing-based Moonshot AI and its Kimi K3 model. US officials have accused Chinese developers of extracting data from American artificial intelligence models. China’s Ministry of Commerce said the allegations lacked factual and legal grounds and stated that Beijing would take “all necessary measures” to protect the lawful rights and interests of its companies.

On the same day, Beijing also criticized new US tariffs imposed on 60 trading partners. According to Washington, the decision targets countries that do not take sufficient measures to prevent imports of goods produced through forced labour. The United States imposed tariffs of either 10% or 12.5% on goods from various countries, while Chinese products were subjected to a 12.5% rate. The measures followed investigations conducted under Section 301 of the Trade Act of 1974.

China’s Ministry of Commerce described the decision as unilateral protectionism and called on the United States to remove the tariffs. Beijing said China has appropriate legal mechanisms in place to combat forced labour and argued that Washington’s allegations are being used to justify the introduction of new trade barriers.

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Pakistan Seeks to Revive US-Iran Talks at China’s Initiative

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Pakistan is holding preliminary diplomatic consultations aimed at reviving suspended talks between the United States and Iran. According to Reuters, the initiative originated with China, which is seeking to end nearly five months of military confrontation and restore key regional trade routes.

Foreign media report that the possibility of renewed US-Iran talks was discussed during Iranian Interior Minister Eskandar Momeni’s visit to Islamabad. It was his second visit to Pakistan in the past ten days. Momeni met Prime Minister Shehbaz Sharif and Chief of Defence Forces Asim Munir. According to a Pakistani official, one of the conditions for restarting negotiations is an end to attacks against Saudi Arabia and other Gulf states.

China’s interest is directly linked to its economic and energy priorities. Beijing is Iran’s largest trading partner and the main buyer of its exported oil. The near closure of the Strait of Hormuz and threats to shipping in the Red Sea are disrupting energy and trade routes that are critical to China.

China’s Foreign Ministry says Beijing supports mediation efforts by Pakistan and other parties and will continue to play an active role in restoring peace in the Gulf region. On July 16, China and Pakistan also called on the United States and Iran to halt hostilities and return to dialogue.

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Wang Yi and Marco Rubio Discussed Xi Jinping’s Visit to the United States

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Chinese Foreign Minister Wang Yi and U.S. Secretary of State Marco Rubio met in Manila on July 22 on the sidelines of ASEAN meetings. One of the main topics of the talks was preparation for Chinese President Xi Jinping’s planned visit to Washington in September.

The two sides also discussed U.S.-China trade relations, Taiwan, and tensions in the South China Sea. Rubio said that despite the differences between the two countries, Washington and Beijing should not allow their disagreements to escalate beyond control.

According to China’s Ministry of Foreign Affairs, Wang urged the U.S. side to respect China’s “core interests,” uphold the “One China” principle, and refrain from actions that could deepen tensions in bilateral relations.

Both sides described the meeting as pragmatic, positive, and constructive. The talks took place amid ongoing tensions in U.S.-China relations and were aimed at maintaining high-level communication between the two countries.

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China and the Philippines Clash Near Second Thomas Shoal

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A physical confrontation occurred in the South China Sea between members of the Chinese Coast Guard and the Philippine Navy. A Filipino sailor was injured in the incident, while the two sides blamed each other for what happened.

According to the Armed Forces of the Philippines, on July 20, a small Chinese Coast Guard vessel approached a Philippine military outpost near Second Thomas Shoal. During the confrontation, a Chinese Coast Guard officer struck a Filipino sailor several times on the head with a wooden baton and also damaged his inflatable boat. The injured sailor sustained wounds to the head.

Beijing rejected Manila’s account. According to the Chinese Coast Guard, two Philippine vessels ignored warnings, deliberately collided with a Chinese patrol boat and attacked Chinese personnel first. The Chinese side maintains that its actions were lawful and defensive in nature.

The incident occurred near Second Thomas Shoal, known in the Philippines as Ayungin Shoal. The reef is one of the main flashpoints between China and the Philippines in the South China Sea. Manila has maintained a presence there since 1999, while China considers the reef part of its territory. In 2016, an international arbitral tribunal ruled that Beijing’s territorial claims over most of the South China Sea had no legal basis. China does not recognise the ruling.

The confrontation occurred ahead of a meeting of foreign ministers from the Association of Southeast Asian Nations in Manila. One of the main issues on the agenda is the management of tensions in the South China Sea and ongoing negotiations on a regional code of conduct. The incident once again showed that maritime tensions between the two sides could escalate into physical violence and a broader regional confrontation.

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Beijing Calls Trump’s Allegations a “Complete Fabrication”

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China has rejected U.S. President Donald Trump’s claim that Beijing sought to interfere in the 2020 U.S. presidential election, calling it a “complete fabrication”.

Chinese Foreign Ministry spokesperson Lin Jian said at a July 17 briefing that the allegation was part of a campaign directed against China. According to him, Beijing has never interfered in U.S. elections and has had no interest in doing so.

Trump made the allegation a day earlier during an address to the nation from the White House. He claimed that China had illegally obtained the data of approximately 220 million American voters. The U.S. president described the incident as an unprecedented threat to election security and also accused intelligence officials of concealing information.

According to CBS News, a significant portion of U.S. voter registration data is publicly or commercially available. Access to such information, therefore, does not in itself provide the ability to influence election results.

A 2021 assessment by the U.S. intelligence community found no evidence that any foreign actor had attempted to alter the technical process of the 2020 election. The same document stated that China was likely continuing to collect information on American voters, public opinion, political parties, candidates and their staff.

The dispute has resurfaced against the backdrop of relative stability in U.S.-China relations. Trade tensions between the two sides, which escalated in 2025, temporarily eased after Trump met Chinese President Xi Jinping in Beijing in May 2026.

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Beijing Criticizes New US Sanctions Bill and Warns of Countermeasures

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China has strongly criticized a bill introduced in the US Senate that threatens to impose tariffs of up to 100% on the largest buyers of Russian energy resources. Beijing stated that it would take “necessary measures” to protect the interests of Chinese companies and citizens.

At a press briefing on July 15, Chinese Foreign Ministry spokesperson Lin Jian said that Beijing firmly opposed unilateral sanctions that lacked a basis in international law and had not been authorized by the United Nations Security Council.

China’s statement followed the introduction of the bill by US senators on July 14. The initiative is currently before the Senate, but no vote has yet taken place. According to the bill’s sponsors, the initiative is intended to reduce Russia’s energy revenues and increase pressure on Moscow by limiting the financial resources available to continue its war against Ukraine.

The proposed legislation would authorize the US president to impose tariffs of up to 100% on the five largest purchasers of Russian oil and natural gas. According to information provided by Senate aides, the main buyers of Russian crude oil are China, India, Slovakia, Hungary, and Azerbaijan. China, France, Japan, Hungary, and Belgium are also listed among the largest importers of Russian natural gas.

As one of the largest purchasers of Russian energy resources, China would be directly exposed to the potential restrictions envisaged under the bill, which largely explains Beijing’s sharp response.

If adopted, the US sanctions policy related to the war in Ukraine would also directly affect US-China trade relations. Washington would seek to intensify pressure on Russia’s energy sector by using tariffs against its principal trading partners, while Beijing views energy cooperation with Moscow as part of its economic interests and energy security.

Accordingly, the initiative could not only increase sanctions pressure on Russia but also create a new dimension of trade and political confrontation between the United States and China.

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