Plus: A funny fail on Fuji
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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:
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a) expand China’s sense of security by subduing its periphery
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b) control maritime trade routes key to China’s economy
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c) tap the area’s fishing and energy resources, and
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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:
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a) pretext (‘we're just responding to US provocation’)
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b) context (‘our mere flag is nothing compared to those 14,000 troops’), and
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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:
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A 2016 tribunal already found “no legal basis” for China’s vast claims, and yet
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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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China has signed the world’s main maritime treaty (‘UNCLOS’), while the US has not (it’s long been seen as unlikely to pass the senate), though the US still views the law as if it were in force.
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The Philippine coast guard has now responded with its own flag-bearing image, too.
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Meanwhile, elsewhere…

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🇺🇦 UKRAINE – Did Trump and Zelensky patch things up at pope’s funeral? 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. |
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🇺🇸 US — Trump wants free passage for US ships. |
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🇳🇱 Netherlands — Another big ASML breakthrough? 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. |
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🇨🇦 CANADA – Driver kills 11 just before elections. |
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🇮🇳 INDIA – Delhi’s navy flexes in the Arabian Sea. |
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🇮🇷 IRAN – How did Iran’s top port explode? 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). |
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🇧🇷 Brazil – Hairdresser gets 14 years over coup plot. |
Extra Intrigue
🤣 Your weekly roundup of the world’s lighter news
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Japanese authorities have rescued a university student twice in four days after he returned to Mount Fuji looking for his lost phone.
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A helicopter has showered residents of Detroit with marshmallows in a years-long spring tradition.
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The Academy has decided that Oscar voters must now actually watch each movie before voting.
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A reveller in Ireland has lost his car for almost three weeks after forgetting where he parked it before a big bachelor party weekend.
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And an 88-year-old in Spain has been declared the world’s most bad-ass grandpa after videos of him skateboarding went viral.
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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? |
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:
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🇵🇰–🇮🇳 R.J: “The countries of South Asia are much younger, and with shorter temperaments.”
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🇷🇺–🇪🇺 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.”
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✍️ B.B: “Iran / Israel – duh!”
Disclosures
Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
A minimum investment of $1,950 is required to receive bonus shares. 100% bonus shares are offered on investments of $9,950+.
Please read the offering circular at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A Offering.