U.S. APPROVES $11 BILLION TAIWAN ARMS PACKAGE
The U.S. has approved $11.1 billion in arms sales to Taiwan to "modernize its armed forces and to maintain a credible defensive capability," according to the Pentagon. The eight-item proposal features 82 HIMARS launchers (worth $4 billion) capable of striking targets in Fujian, along with 60 howitzers (valued at $4 billion), as well as Javelin missiles and antitank drones. Last month, the Trump administration agreed to a $330 million aircraft parts package for the island as well. To fund these acquisitions and the "T-Dome" – a missile defense system modeled after Israel's Iron Dome – President Lai Ching-te unveiled a $40 billion special military budget. The T-Dome is designed as "a multilayered, integrated defense system designed to protect Taiwan from PLA missiles, rockets, drones, and combat aircraft," Lai said. (Wall Street Journal, December 18, 2025)
HOUSE COMMITTEE ISSUES RECS TO DETER CHINA FROM ATTACKING TAIWAN
The U.S. House Select Committee on the CCP has released a bipartisan report, Ten More for Taiwan, identifying urgent, near-term steps to deter PLA aggression. "To enhance deterrence and safeguard the status quo, America must not only strengthen its military capabilities — it must sharpen its political messaging to send a clear signal to both friend and foe alike about its resolve and commitment to Taiwan's security," the committee stated. Building on its original May 2023 Ten for Taiwan report, the committee's new findings "make explicit that Taiwan is not – and will not be – a bargaining chip," said Ranking Member Raja Krishnamoorthi. The committee's top three recommendations for deterring China include using clear political signaling to communicate resolve, deepening economic ties with Taiwan, and ensuring Taipei has the capabilities it needs for its own defense. (Taipei Times, December 20, 2025)
CHINA SUPPORTS VENEZUELA AMID U.S. PRESSURE
China supports Venezuela in defending its "legitimate rights and interests" and is urging the international community to assist the country as it faces mounting U.S. military pressure. Foreign Minister Wang Yi told his Venezuelan counterpart, Yvan Gil, that "China and Venezuela are strategic partners, and... China opposes all forms of unilateralism and bullying." Beijing likewise signaled that it supports Caracas' call for a UN Security Council meeting. In October and November, Venezuela shipped between 750,000 and 775,000 barrels of crude oil per day. Approximately 20% entered the U.S. under a license, while most of the remainder went to China. Venezuela currently accounts for about 4% of China's oil imports. (NikkeiAsia, December 19, 2025)
U.S. AND CHINA BOOST COUNTERNARCOTICS COOPERATION
U.S.-China counternarcotics cooperation is "achieving notable results," according to China's Ministry of Public Security. The two sides have worked on several joint cases requiring "close communication" and regular video conferences. Last month, for instance, PRC authorities intercepted 948 pounds of cocaine following a tip-off from their U.S. counterparts. This initiative emerged from a meeting between the two presidents in South Korea on October 30. During the summit, Trump agreed to remove half of the 20% "fentanyl tariffs" on China in exchange for more cooperation and tighter export controls on fentanyl precursors. "Since the Americans have withdrawn their sanctions on relevant Chinese law enforcement departments, China has recently promoted some special operations on fentanyl-type substances and their precursor chemicals," China's Ministry of Commerce stated. (South China Morning Post, December 16, 2025)
CHINESE FIRMS MOVE TO SINGAPORE TO AVOID U.S. TARIFFS
A growing number of Chinese companies are moving to Singapore to mitigate the impact of intensifying U.S.-China geopolitical tensions. This trend, known as "Singapore-washing," began during Trump's first term and has since expanded across various sectors, including critical minerals, technology, and biotechnology. "Demand has always been rising [and] it's probably going to accelerate at a more rapid pace," said KG Tan of InCorp Group, a firm specializing in corporate relocation. While the exact number of Chinese firms domiciled in Singapore is unknown, Tan said interest is "very strong," with inquiries increasing by 15–20% over the prior year. By relocating, firms aim to avoid high tariffs on PRC exports (the U.S. imposes only 10% tariffs on Singaporean goods) and maintain access to American technologies whose sales to China are restricted. (Reuters, December 18, 2025)