Dear Focus Reader,

Dueling claims between China and the Philippines in the South China Sea heightened tensions this week, as the Philippines accused China's Coast Guard of "intentional high-speed ramming" of a supply ship near the disputed Spratly Islands, while China countered that the craft "ignored China's repeated solemn warnings" and was responsible for the collision. The U.S. stepped in to affirm that its "ironclad" mutual defense treaty with the Philippines would cover "armed attacks" in the South China Sea, although the Philippines later calmed tensions by saying it was "probably a misunderstanding or an accident" and that it could resolve the matter with China.

Meanwhile, China raised concerns with the European Union (EU) over proposed tariffs on Chinese electric vehicle imports and threatened a "trade war". The issue is expected to be a hot topic during German Economy Minister Robert Habeck's three-day visit to China starting today, as Germany is seeking to diffuse tensions and avoid a potentially damaging economic conflict with a critical trade partner. The Minister also surprisingly criticized his own country's strategy towards China as short-sighted and out of sync with the strategies of other EU countries.

In other international developments, the meeting between Vladimir Putin and Kim Jong Un that resulted in a defense pact between Russia and North Korea raised questions about potential shifts in regional power dynamics and its impact on China's influence. China's silence on the agreement has led to speculation about its view of the pact, and whether it may be concerned about the potential for increased instability on the Korean Peninsula, or the loss of influence in the region.

Stay up to date on China's foreign policy by catching up on our latest Focus content, including topics on the South China Sea disputes, EU-China bilateral relations, EU tariffs on Chinese EV imports, and more.