
Exclusive: China flexes military muscle with East Asian naval activity, sources say
May 28 (Reuters) - China has flexed its muscles this month by sending an unusually large number of naval and coast guard vessels through a swathe of East Asian waters, according to security documents and officials, in moves that have unnerved regional capitals.
Since early May, China deployed fleets larger than usual, including navy, coast guard and other ships near Taiwan, the southern Japanese islands and the East and South China Seas, according to three regional security officials and documents of regional military activities reviewed by Reuters.
On May 21 and May 27, for instance, China deployed nearly 60 and more than 70 ships, respectively, around three-quarters of them naval, the documents show. These included guided-missile frigates, destroyers and coast guard boats.
Beijing also dispatched two aircraft carrier groups, with the Shandong now in the busy waterway of the South China Sea and the Liaoning off the southeastern coast of Taiwan, the documents show.
"They are exerting pressure on the whole of the first island chain amid global geopolitical uncertainties," said one security official.
The reference is to waters stretching from Japan through Taiwan, the Philippines and on to Borneo, enclosing the seas around China's coast.
"They are trying to reinforce their dominance," the source said, adding that drills this month by the Liaoning, the oldest of China's three aircraft carriers, simulated attacks on foreign ships and aircraft around the East China Sea and the Yellow Sea.
There was an "obvious" stepped-up Chinese naval presence this month, added a second source, who spoke on condition of anonymity, as did the first, citing the sensitivity of the intelligence assessment.
"China clearly wants to show these are its home waters and it can operate when and where it wants," the source said.
China's defence ministry did not respond to a request for comment.
Over the past two weeks China declared several live-fire drill areas off its coast, including last week one directly facing southwestern Taiwan.
Last Wednesday, Chinese state television showed images of amphibious drills in the southern province of Fujian, across the strait from Taiwan, but did not give an exact location.
This week, Japan has been tracking the Liaoning and its accompanying warships through the southern Japanese islands and into the Western Pacific.
China seems to be trying to improve its capacity to operate far from the Chinese coast, Japan's Chief Cabinet Secretary Yoshimasa Hayashi said.
"The Japanese government intends to keep a close eye on relevant movement and do its utmost in carrying out monitoring and surveillance activities," he told reporters on Wednesday.
Speaking in Beijing, Chinese foreign ministry spokesperson Mao Ning said the ships' activities were in line with international law and practice and Japan should "look at them objectively and rationally".
China has kept up its stand-off with the Philippines in the South China Sea, where its foreign ministry on Friday urged, opens new tab the Philippines to immediately stop "infringement and provocation".
The Philippine Navy's spokesperson on South China Sea issues, Rear Admiral Roy Vincent Trinidad, told Reuters that China's "illegal presence" in the maritime zones of Southeast Asian states "has been disturbing the peace in the region and is contrary to pronouncements of its 'peaceful rise'."
The spike in Chinese military activity has also come as Taiwan President Lai Ching-te marked, opens new tab the anniversary this month of a year in office.
China has staged three major rounds of war games since the inauguration of Lai, whom it calls, opens new tab a "separatist".
On Wednesday, Taiwan's defence ministry said the Liaoning was off the island's southeast coast, adding that Taiwan would raise its combat preparedness in line with the threat level.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Reuters
an hour ago
- Reuters
Japan's service sector growth slows in May, PMI shows
TOKYO, June 4 (Reuters) - Growth in Japan's service-sector activity slowed in May on weaker demand, offering little to mitigate falling factory activity and resulting in a near-zero growth for business overall, a private sector survey showed on Wednesday. The final au Jibun Bank Japan Services purchasing managers' index (PMI) fell to 51.0 in May from 52.4 in April, although it was higher than flash 50.8. An index reading above the 50.0 threshold indicates growth and a reading below indicates contraction. New business growth in the service sector eased to its slowest pace since November, while employment growth in services was the weakest rate since December 2023, the survey showed. Service-sector managers' confidence in their future outlook improved to a three-month high in May from April's four-year low, but the overall level stayed weaker than the post-pandemic average, according to the survey. "Concerns over the outlook often stemmed from uncertainty over future global demand, as well as labour shortages and rising costs," said Annabel Fiddes, Economics Associate Director at S&P Global Market Intelligence, which compiled the survey. "The latter was highlighted by a further steep increase in input prices, to suggest that official inflation data will remain strong." Input price inflation eased from April's 26-month high but remained elevated, with managers citing higher costs for energy, labour and transport, prompting service providers to continue raising their output charges roughly in line with April's pace. The slowdown in services, combined with a continued decrease in manufacturing, left overall private sector activity stagnant with the composite PMI dropping to 50.2 in May from 51.2 in April. "The weaker demand picture suggests that the private sector may struggle to bounce back in the near-term, and could translate into more cautious staff hiring in the months ahead," Fiddes said.


Reuters
an hour ago
- Reuters
Dollar edges down as trade tensions simmer ahead of jobs data
TOKYO, June 4 (Reuters) - The dollar drifted lower on Wednesday as the market looked ahead to U.S. employment data for immediate trading cues, while waiting on developments in President Donald Trump's tariff negotiations with key trading partners including China. The Trump administration has given a Wednesday deadline for countries to submit their best offers on trade, the same day a doubling of duties to 50% on imported steel and aluminium comes into effect. Trump is also tipped by the White House to have a call this week with Chinese President Xi Jinping after the two sides accused each other of violating the terms of an agreement last month to roll back some tariffs. In the meantime, macroeconomic indicators have returned as a driver of the U.S. currency this week, even if trade frictions remain centre stage. The dollar slumped 0.8% against major peers on Monday following a contraction in manufacturing, only to rebound by almost the same amount overnight after a surprise increase in U.S. job openings. Early on Wednesday, the dollar was down 0.09% at 143.82 yen and the euro was up 0.13% at $1.1385. The dollar index , which measures the currency against those two peers and four other counterparts, was flat at 99.159. Traders will have an eye on the ADP employment report later in the day, in the run-up to crucial U.S. monthly payrolls figures on Friday. "Job openings were much stronger than expected," Commonwealth Bank of Australia analyst Joseph Capurso said of the overnight JOLTS data, which is closely watched by the Federal Reserve. "The low estimate for ADP means the USD and U.S. bond yields have a small hurdle to climb for a positive surprise tonight." Elsewhere, the Australian dollar was little changed at $0.6460 ahead of the release of GDP figures. South Korea's won strengthened about 0.2% to 1,375.25 per dollar after the victory of liberal candidate Lee Jae-myung in the country's presidential election.


BBC News
2 hours ago
- BBC News
Why Labour is now cosying up to China
The sprawling city of Chongqing in southwestern China is an incredible sight. Built on mountainous terrain and crisscrossed by rivers, it is connected by vast elevated roads. Trains even run through some have begun documenting their commutes in the striking urban architecture, generating millions of likes and much hype. But it is also where, on a somewhat quieter trip, mayors and their deputies from the UK recently visited - the largest British civic delegation to visit the country in modern whole trip, which took place in March, received substantial Chinese media coverage, despite flying more under the radar in the UK. The impression it left on some of the politicians who travelled there was vast."[The city is] what happens if you take the planning department and just say 'yes' to everything," reflects Howard Dawber, deputy London mayor for business. "It's just amazing." The group travelled to southern Chinese cities, spoke to Chinese mayors and met Chinese tech giants. So impressed was one deputy mayor that, on returning home, they bought a mobile phone from Chinese brand Honor (a stark contrast from the days the UK banned Huawei technology from its 5G networks, just a few years ago).Roughly half-a-dozen deals were signed on the back of the trip. The West Midlands, for example, agreed to establish a new UK headquarters in Birmingham for Chinese energy company EcoFlow. But the visit was as much about diplomacy as it was trade, says East Midlands deputy mayor Nadine Peatfield, who attended. "There was a real hunger and appetite to rekindle those relationships." To some, it was reminiscent of the "golden era" of UK-China relations, a time when then-Prime Minister David Cameron and Chinese President Xi Jinping shared a basket of fish and chips and a days have long felt far away. Political ties with China deteriorated under former UK Conservative Prime Ministers Boris Johnson, Rishi Sunak and Liz Truss. The last UK prime minister to visit China was Theresa May, in 2018. But the recent delegation - and the talk of Sir Keir Starmer possibly visiting China later this year - suggests a turning point in relations. But to what greater intent? A 'grown up' approach The course correction seemed to begin with the closed-door meeting between Sir Keir and Chinese President Xi in Brazil last November. The prime minister signalled that Britain would look to cooperate with China on climate change and then, Labour's cautious pursuit of China has primarily focused on the potential financial upsides. In January, Chancellor Rachel Reeves co-chaired the first UK-China economic summit since 2019, in Beijing. Defending her trip, she said: "Choosing not to engage with China is no choice at all."Reeves claimed re-engagement with China could boost the UK economy by £1bn, with agreements worth £600m to the UK over the next five years — partially achieved through lifting barriers that restrict exports to China. Soon after, Energy Secretary Ed Miliband resumed formal climate talks with China. Miliband said it would be "negligence" to future generations not to have dialogue with the country, given it is the world's biggest carbon simply describes its approach as "grown-up". But it all appears to be a marked shift from the last decade of UK-China the so-called "golden era", from 2010, the UK's policy towards China was dominated by the Treasury, focusing on economic opportunities and appearing to cast almost all other issues, including human rights or security, aside. By September 2023, however, Rishi Sunak said he was "acutely aware of the particular threat to our open and democratic way of life" posed by China. 'The world will become more Chinese' Labour claimed in its manifesto that it would bring a "long-term and strategic approach".China has a near monopoly on extracting and refining rare earth minerals, which are critical to manufacturing many high-tech and green products. For example, car batteries are often reliant on lithium, while indium is a rare metal used for touch screens. This makes China a vital link in global supply chains."China's influence is likely to continue to grow substantially globally, especially with the US starting to turn inwards," says Dr William Matthews, a China specialist at Chatham House think tank. "The world will become more Chinese, and whilst that is difficult for any Western government, there needs to be sensible engagement from the get-go." Andrew Cainey, a director of the UK National Committee on China, an educational non-profit organisation, says: "China has changed a lot since the Covid-19 pandemic. To have elected officials not having seen it, it's a no brainer for them to get back on the ground".Certainly many in the UK's China-watching community believe that contact is an essential condition to gain a clearer-eyed view of the opportunities posed by China, but also the challenges. Questions around national security The opportunities, some experts say, are largely economic, climate and education-related. Or as Kerry Brown, Professor of Chinese Studies at King's College London, puts it: "China is producing information, analysis and ways of doing things that we can learn from". He points to the intellectual, technological, AI, and life sciences engaging with China would be to ignore the realities of geopolitics in the 21st century, in Dr Matthew's view, given that it is the world's second largest economy. However he also believes that engagement comes with certain Charles Parton, who spent 22 years of his diplomatic career working in or on China, raises questions about the UK's economic and national example, the government is reportedly weighing up proposals for a Chinese company to supply wind turbines for an offshore windfarm in the North Sea. Mr Parton warns against allowing China access to the national grid: "It wouldn't be difficult in a time of high tension to say, 'by the way, we can turn off all your wind farms'".But earlier this year, the China Chamber of Commerce to the EU issued a statement expressing concern over the "politicisation" of deals between wind developers in Europe and Chinese turbine suppliers. James Sullivan, director of Cyber and Tech at defence think tank Rusi, notes there are also some questions around cyberspace. "China's activities in cyberspace appear to be more strategically and politically focused compared to previous opportunistic activities," he for defence, the UK's recently published defence review describes China as a "sophisticated and persistent challenge", with Chinese technology and its proliferation to other countries "already a leading challenge for the UK".Ken McCallum, MI5 director general, meanwhile, has previously warned of a sustained campaign on an "epic scale" of Chinese espionage Prof Brown pushes back on some concerns about espionage, saying some media narratives about this are a "fairytale".Beijing has always dismissed accusations of espionage as attempts to "smear" China. Is the UK really a 'compliant servant'? Sir Keir and his team will no doubt be closely monitoring how this is all viewed by Washington month, President Donald Trump's trade advisor Peter Navarro described Britain as "an all too compliant servant of Communist China", urging the UK against deepening economic ties."When it comes to foreign policy towards China, America's influence on policy will be quite substantive compared with say continental Europe," says Dr Yu Jie of China Foresight at LSE IDEAS think analysts I speak to in both the UK and China are still clear on the need for the two countries to get back in the same room, even if they differ on where to draw the line: in which areas should Westminster cooperate and where should it stay red lines have not yet been drawn, and experts say that without some kind of playbook, it is difficult for businesses and elected officials to know how to engage. "You can only keep firefighting specific issues for so long without developing a systematic plan," warns Mr thorny issues have arisen, including Chinese investments in the UK. For example in April when the government seized control of British Steel from its former Chinese owner Jingye, to prevent it from being closed down, Business Secretary Jonathan Reynolds admitted that he would "look at a Chinese firm in a different way" when considering investment in the UK steel foreign ministry spokesperson, Lin Jian, warned that Labour should avoid "linking it to security issues, so as not to impact the confidence of Chinese enterprises in going to the UK".After Starmer met Xi last year, he said the government's approach would be "rooted in the national interests of the UK", but acknowledged areas of disagreement with China, including on human rights, Taiwan and Russia's war in the release of pro-democracy activist and British citizen Jimmy Lai from a Hong Kong prison is, he has said, a "priority" for the government. 'Go with your eyes open' Labour's manifesto broadly pledged: "We will cooperate where we can, compete where we need to, and challenge where we must."What is still lacking, however, is the fine print. Asked about the British government's longer-term strategy, Mr Parton replied: "No.10 doesn't have a strategy."He tells me he has some specific advice: "Go with your eyes open," he says. "But have a clear idea of what needs protecting, and a willingness to take some short-term financial hits to protect long-term national security."Labour has suggested that some clarity on their approach will be provided through the delayed China "audit", a cross-government exercise launched last year, which will review the UK's relations with audit is due to be published this month, but many doubt that it will resolve matters. "If we see a visit from Starmer to Beijing, that will be an indication that the two sides have actually agreed with something, and that they would like to change and improve their bilateral relationship," says Dr many people in Westminster remain even if the audit helps Britain better define what it wants out of its relationship with China, the question remains, do MPs and businesses have the China-related expertise to get the best out of it?According to Ruby Osman, China analyst at the Tony Blair Institute, there is an urgent need to build the UK's China capabilities in a more holistic way, focusing on diversifying the UK's points of contact with China."If we want to be in a position where we are not just listening to what Beijing and Washington want, there needs to be investment in the talent pipeline coming into government, but also think tanks and businesses who work with China," she if that's the case, then irrespective of whether closer ties with China is viewed as a security threat, an economic opportunity, or something in between, the UK might be in a better position to engage with the country. Top image credit: PA BBC InDepth is the home on the website and app for the best analysis, with fresh perspectives that challenge assumptions and deep reporting on the biggest issues of the day. And we showcase thought-provoking content from across BBC Sounds and iPlayer too. You can send us your feedback on the InDepth section by clicking on the button below.