Taiwan is not ruling out 'political warfare' by China, coast guard says
TAIPEI (Reuters) -Taiwan's coast guard said on Monday China could try to disrupt public morale on the island ahead of President Lai Ching-te's one-year anniversary this week, after images surfaced on social media of a person planting a Chinese flag on a Taiwan beach.
China calls Lai, who completes a year in office on Tuesday, a "separatist", and has rebuffed his offers for talks.
Lai rejects China's sovereignty claims over the democratic and entirely separately governed island, saying only Taiwan's people can decide their future.
Last week, Taiwan's China-policy making Mainland Affairs Council said Beijing could hold more military drills to "stir up trouble" around the anniversary.
On Sunday, images posted on Chinese social media showed a man who claimed to have sailed across the Taiwan Strait on a small boat landing on a remote beach and planting a Chinese flag, before returning to China. The video was later deleted.
On Friday, Taiwan's coast guard said it had arrested two Chinese nationals after they sailed into Taiwan illegally on a rubber boat and landed on a beach on the island's northwest coast.
Asked about the two incidents, Hsieh Ching-chin, deputy head of Taiwan's coast guard, said China has been taking the opportunity for a while now to carry out drills and use other pressure tactics.
"It cannot be ruled out that on the anniversary of President Lai's inauguration, the Chinese communists will again use similar tactics and videos to engage in political warfare to disrupt the morale of our people," he told reporters.
Hsieh said the video of the flag planting was indeed taken on the beach in Taiwan's Taoyuan, but whether by someone who crossed over from China, or was helped by someone in Taiwan to film it, was still being investigated.
China's Taiwan Affairs Office did not immediately respond to a request for comment.
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The recent Trump-Xi call brought hope if lower tariffs, but investor confidence remains cautious. As of today, the US has only secured one new trade deal — with the UK. A startup that assembles one of its smartphones entirely in the US says it's possible for a company like Apple to do the same and not incur prohibitive costs, but it's not easy and would take several years of focused effort, Fortune reports: At least one expert in the UK believes Prime Minister Keir Starmer may have unrealistic expectations about a trade deal with President Donald Trump and the US, Bloomberg reports: Read more here President Donald Trump has come up short on striking trade deals with most nations with just one month left before his self-imposed tariff deadline, even as he took his first steps in weeks toward engaging with China. 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Trade talks between the US and India were set to wrap up this Friday, but now they are being extended into next week as officials on both sides aim to work out an interim deal before a July 9 deadline. Indian government sources said the discussions, which have focused on tariff cuts in the farming and auto sectors, will continue next Monday and Tuesday. President Trump and Indian Prime Minister Narendra Modi are looking to double trade by 2030 and cement a trade pact by fall 2025. Reuters reports: Read more here. US and Chinese officials exchanged jabs at an event held by the American Chamber of Commerce (AmCham) in Shanghai on Friday, as the chamber appealed for more clarity for American businesses operating in China. Reuters reports: Read more here. India's Tata Steel has warned that it might be excluded from tariff-free access to the US under the UK's trade agreement with the Trump administration. This exclusion risks putting more than $180M worth of annual exports at risk. The FT reports: Read more here. Two of the largest economies in the euro zone saw industrial production decline in the first month of President Trump's sweeping tariffs, indicating a economic slowdown after a stronger-than-expected year, according to a report in the Wall Street Journal on Friday. Wall Street Journal: Read more here. The EU said on Friday that it is open to reducing tariffs on US fertiliser imports as a trade bargaining tool in talks with the Trump administration. However, the EU said it would not weaken its food safety standards in pursuit of a deal. EU agriculture commissioner Christophe Hansen told Reuters: "That is definitely an option," Hansen said, of reducing US fertiliser tariffs. Reuters reports: Read more here. If car buyers think they will be able to beat President Trump's tariffs, they should think again. The trade war has already led to an increase in US auto prices and some of these hikes are invisible to consumers. Bloomberg News reports: Read more here. According to a survey conducted by the American Chamber of Commerce in China, most US firms with operations in china are not budging. The survey revealed that some US don't want to leave the country and in fact would ramp up production in China, despite the the challenges posed by tariffs. Bloomberg News reports: Read more here. We know what President Trump wants in trade discussions with China. But what does China's Xi Jinping want? Bloomberg News reports Read more here. Both the US and China are using their control over key materials in a deepening trade war standoff. On Friday, Bloomberg reported that Washington is restricting ethane shipments, a gas China heavily relies on for plastics production. This follows Washingtons block on chip exports to China. 'Ethane is no longer just a byproduct of shale — it's now a geopolitical weapon,' said Julian Renton, lead analyst covering natural gas liquids at East Daley Analytics. 'China bet billions building infrastructure around US ethane, and Washington is now questioning whether that bet should continue to pay off.' But the US is not the only one weaponising their grip on vital materials. China has tightened control on rare earths, a crucial element used for technology products. However, on Thursday President Trump got a commitment from China to restore flow of rare earth magnets. These moves by the US and China marks a shift toward using strategic resources as leverage. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
