China: Security

China resumed large-scale military flights near Taiwan after a brief, unexplained lull in activity, according to Taiwan's defense ministry. Domestically, the National People's Congress set the 2026 defense budget at 1.94 trillion yuan, a 7 percent increase described by officials as reasonable and moderate to support continued military modernization. Concurrently, China launched a crackdown on fentanyl trafficking networks, an action long sought by the United States.

Internationally, espionage allegations emerged in multiple allied nations. UK police arrested three men, including the husband of a Labour MP, on suspicion of spying for China. Separately, the Philippine National Security Council reported uncovering a China-linked espionage network and detaining several citizens. In Japan, a member of the Self-Defense Forces was arrested for intruding into the Chinese embassy in Tokyo, an incident Japanese officials called regrettable. A U.S. intelligence assessment indicated China does not currently have plans to invade Taiwan by 2027, while other reports noted China's ocean floor mapping is linked to preparations for potential submarine warfare. President Donald Trump called on China and other nations to deploy warships to secure the Strait of Hormuz, to which China described itself as a sincere friend in the region.