🌍 China’s big flag in the sand


Plus: A funny fail on Fuji

Today’s newsletter:
— China’s big flag flex
— The world’s most bad-ass grandpa?
— From Warsaw with love

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Good morning Intriguer. My last time in Beijing was a decade ago for talks that included the South China Sea.

I remember a couple of things vividly: first, eating the absolute best roast duck of my life in one of the capital’s far-flung suburbs; but also second, the warmth and serenity of Xu Hong (the foreign ministry’s top lawyer at the time) as he waxed on the South China Sea.

Since then? Ol’ papa Xu got a nice little promotion as China’s ambassador to The Hague, I took a nice little detour to be with you here via Intrigue, and we got further clarity over China’s South China Sea claims: President Xi has made clear he wants almost all of it.

That’s why a single photo — of China’s coastguard planting a flag in some sand — generated international headlines over the weekend. So let’s dive in.

PS — I’ll be in Sydney 🇦🇺 with Intrigue co-founder Helen to speak at Blackbird’s Sunrise conference this week. If you’d like to join us for a drink this Thursday, register here!

The Spratly stand-off

China's state broadcaster reported (🇨🇳) over the weekend that the nation’s coast guard "implemented maritime control" over Sandy Cay in the Spratly Islands, replete with an image of four servicemen unfurling China's flag in the sand (see below).

Sandy Cay itself is tiny — barely half a basketball court, depending on the tide. So why do this? And why care?

Four big reasons.

First, it's all part of China's vast claim over the South China Sea, encroaching on borders claimed by six other countries. A tribunal rejected China's claims back in 2016, but President Xi has doubled down as part of his efforts to:

  • a) expand China’s sense of security by subduing its periphery

  • b) control maritime trade routes key to China’s economy

  • c) tap the area’s fishing and energy resources, and

  • d) test US commitment to its allies like the Philippines.

The photo in question. Credits: Global Times.

Second, the where — this particular half-court of sand is 1,850km (1,000nm) from China, but just 4.6km (2.5nm) from Manila’s Thitu Island, with growing military capabilities to track and deter China's moves. So planting this flag sends a message about China’s reach.

But importantly, Sandy Cay also sits above sea level, meaning Beijing might hope it now gets the surrounding 12nm territorial sea, bumping up not only against Manila's Thitu facility, but also encompassing China's own larger base at the semi-submerged Subi Reef.

Third, the when: this wasn't any ol' weekend, but rather right in the middle of the annual Balikatan military exercises between the Philippines and the US, with 14,000 troops running full-scale integrated battle simulations for the first time.

Those exercises are intended to help the Philippines (a US ally) deter China, but in the process they also arguably provide China:

  • a) pretext (‘we're just responding to US provocation’)

  • b) context (‘our mere flag is nothing compared to those 14,000 troops’), and

  • c) subtext (‘keep expanding those US drills, and we'll keep expanding our claims’).

Btw, each of the above points also helps Beijing manage its domestic audience at home.

Then finally, the how: China has again opted for ‘grey-zone’ tactics, using its ‘maritime police’ rather than its more overt navy to plant this flag. And it’s using ‘salami-slicing’ tactics by plonking a flag on a tiny plot of sand rather than some major island.

The net result is China sending big messages (the first such official land grab in years) with seemingly tiny steps, and putting its rivals in a bind as any meaningful response risks looking like another over-reaction or an escalation.

Intrigue’s Take

Each side is aiming to deter the other, but in the eyes of the other, each is now destabilising things instead. So how to resolve this? We did, centuries ago — not wanting to sound sassy here, but it's called international law:

  • A 2016 tribunal already found “no legal basis” for China’s vast claims, and yet

  • There’s nothing banning drills between allies (even if some might be unwise).

So that's what's at stake here: our choice between a world according to our agreed rules, versus a world where "the strong do what they can and the weak suffer what they must".

And that's why this particular flag, in presumed defiance of this particular maritime rule, is fundamentally tied to every other rule that’s helped drag us out of the Stone Age, whether it protects the Philippines, Ukraine, or even Greenland.

Sound even smarter:

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Meanwhile, elsewhere…

🇺🇦 UKRAINEDid Trump and Zelensky patch things up at pope’s funeral?
Donald Trump and his Ukrainian counterpart sat for a brief one-on-one in St Peter's Basilica just before the pope’s funeral on Saturday. It was their first face-to-face since that Oval Office showdown, and it looked pretty cordial. (France24)

Comment: This latest chat seems to have left its mark, with Trump later mulling publicly whether Putin is even serious about peace or if he’s just “tapping me along” (Putin’s history and actions point to the latter) — but Trump also later noted he thinks Zelensky is ready to cede Crimea to Russia as part of a peace deal.

🇺🇸 US — Trump wants free passage for US ships.
The US president is calling on US ships, both commercial and military, to get free passage through the Panama and Suez Canals. About 5% of global trade passes through the Panama Canal, while that figure reached 10% for the Suez before the Houthis started attacking ships in transit. (The Guardian)

🇳🇱 Netherlands — Another big ASML breakthrough?
There’s speculation Dutch tech firm ASML, the world’s pioneer in ultra-advanced chipmaking machines, is now working on a breakthrough 3-pulse EUV light source that could massively accelerate future chipmaking progress. (SemiWiki)

Comment: This firm has been at the heart of US efforts to curb China’s tech access, and each new advance could just heighten the impact of those existing US controls. There’s also been some renewed buzz about China’s ability to keep advancing without access to ASML tech, perhaps pulling another Deepseek — but as we noted two years ago, China is still bumping up against some hard laws of physics.

🇨🇦 CANADADriver kills 11 just before elections.
Police have apprehended a suspect on charges he drove a vehicle through a large crowd in Vancouver, killing at least eleven. It comes just as Canadians head to the polls to elect their next government today (Monday), though initial reports suggest the driver had no political or ideological motive. (CNN)

🇮🇳 INDIA Delhi’s navy flexes in the Arabian Sea.
The Indian navy has tested anti-ship missiles in another show of force aimed at its neighbour Pakistan. The test seems to have been a response to Pakistan’s own claimed missile tests, as India vows retaliation for last week’s Kashmir terrorist attack. (TOI)

🇮🇷 IRANHow did Iran’s top port explode?
At least 40 have died and hundreds more have been injured in a huge explosion at Iran’s biggest commercial port. Word is it involved a shipment of solid fuel for Iran’s ballistic missiles. (BBC

Comment: The presence of missile inputs leads to two possibilities: either a) the material was poorly handled and blew-up, a-la Beirut in 2020, or b) someone like Israel’s security services timed a sabotage trigger to coincide with delivery at port, to maximise both Iranian embarrassment and Israeli plausible deniability. Iran is not suggesting any foul play at this stage (doing so might be a little embarrassing).

🇧🇷 BrazilHairdresser gets 14 years over coup plot.
A court has jailed a 39-year-old woman for 14 years over her role in the Brazilian capital’s 2023 unrest, including famously writing on a statue with lipstick. While her case went beyond the ‘lipstick coup’ incident, it’s become a rallying point for locals claiming former president Bolsonaro and his supporters are being persecuted. (The Indian Express)

Extra Intrigue

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Embassy of the day

Credits: Tony Fretton Architects.

Is this a hip new co-working space? One of those gyms with a sauna included? Google’s new headquarters? The set for the next season of Severance?

Alas no, it's the British embassy in Warsaw, and we think it looks particularly cool. With its extensive use of glass and bronze mullions, the building gives off a futuristic yet formal vibe that screams: I’ll take my 5 o’clock tea with a dash of miodula, thank you.

Today’s poll

Do you think China's flag raising was all for show?

Login or Subscribe to participate in polls.

Last Thursday’s Poll: Where do you see the most risk of nuclear conflict?

🇵🇰🇮🇳 South Asia (68%)
🇷🇺🇪🇺 Europe (17%)
🇨🇳🇺🇸 The Pacific (11%)
✍️ Other (write us!) (4%)

Your Two Cents:

  • 🇵🇰🇮🇳 R.J: “The countries of South Asia are much younger, and with shorter temperaments.”

  • 🇷🇺🇪🇺 D.D: “I think Putin has been mostly bluffing. But if put in a tight enough spot (where he fears for his life), I think he would consider using nukes.”

  • ✍️ B.B: “Iran / Israel – duh!”

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