Overall Highlights

• China is increasing its military presence around Taiwan, raising tensions in the region.
• The U.S. is reinforcing alliances with countries like Japan and South Korea to counter China’s influence.
• China is focusing on technological advancements and self-sufficiency in sectors like biopharma and electric vehicles.
• There is a growing public sentiment in China that is warming to the U.S. while still supporting Beijing’s trade policies.
• The U.S. and China are engaged in a complex economic rivalry, with both sides pursuing strategic partnerships and trade agreements.

United States Perspective (United States Sources)

• China’s military activities around Taiwan are viewed as aggressive and destabilizing by U.S. sources.
• The U.S. is strengthening ties with Japan and South Korea as a counterbalance to China’s influence in Asia.
• There is concern in the U.S. regarding China’s dominance in rare earth materials and technology sectors.
• The U.S. is actively working to limit Chinese access to its technology and markets, as seen in recent divestment orders.

China Perspective (China Sources)

• China’s military drills around Taiwan are framed as necessary for national security and sovereignty.
• China is focused on enhancing its technological capabilities to challenge U.S. leadership in sectors like biopharma and electric vehicles.
• Public opinion in China shows a warming attitude towards the U.S. while maintaining support for China’s trade stance.
• China is pursuing acquisitions in the chipmaking sector to bolster its self-sufficiency amid U.S. restrictions.

Sources

This summary is based on 20 articles from the following sources:

1. [en-US] South Korea and China’s Strategic Diplomatic Shift in Beijing: What Lee Jae Myung’s Visit Means for Tourism, Trade, and Regional Stability - Travel And Tour World (1/3/2026)
2. [en-US] 4 sorties of aircraft, 6 naval vessels, 1 ship, 2 balloons: China increases military presence around Taiw - The Times of India (1/3/2026)
3. [en-US] Inside China’s six-decade campaign to dominate rare earths - The Japan Times (1/3/2026)
4. [en-US] Takaichi, Trump confirm bilateral alliance in New Year’s phone call - 朝日新聞 (1/3/2026)
5. [en-US] China vows to ramp up west-to-east power as AI, hi-tech industries fuel demand - South China Morning Post (1/3/2026)
6. [en-US] China’s Global Security Initiative In South Asia: An Assessment - Eurasia Review (1/3/2026)
7. [en-US] China Rebuts Concerns over Drills around Taiwan - nippon.com (1/3/2026)
8. [en-US] Japan says Trump has invited its leader to the US. It comes as ties with China are strained - News4JAX (1/3/2026)
9. [en-US] Japan says Trump has invited its leader to the US. It comes as ties with China are strained - Toronto Star (1/3/2026)
10. [en-US] China Likely to Stay Tough on Japan This Year - nippon.com (1/3/2026)
11. [en-US] Fair or fowl? Malaysia struggles to stomach its US trade pact - South China Morning Post (1/3/2026)
12. [en-US] Trump orders Chinese-linked firm HieFo to divest US chip assets - South China Morning Post (1/2/2026)
13. [en-US] China’s biopharma sector ‘in prime position to challenge US leadership’ - South China Morning Post (1/2/2026)
14. [en-US] Trump to meet US’ China envoy after call with Japanese PM Takaichi - South China Morning Post (1/2/2026)
15. [en-US] US poet laureate Arthur Sze on slowing down to translate poetry across cultures - South China Morning Post (1/2/2026)
16. [en-US] China’s BYD dethrones Tesla as world’s top electric vehicle maker - South China Morning Post (1/2/2026)
17. [en-US] Chinese public warms to US while strongly backing Beijing’s trade stance: survey - South China Morning Post (1/2/2026)
18. [en-US] China’s top contract chipmakers pursue acquisitions amid self-sufficiency drive - South China Morning Post (1/2/2026)
19. [en-US] Netflix-Warner deal sparks concern in India’s entertainment sector - South China Morning Post (1/2/2026)
20. [en-US] Back to the Past, starring Louis Koo and Raymond Lam, smashes Hong Kong record - South China Morning Post (1/2/2026)