China pushes rivals’ limits in regional disputes

1 / 2
China Coast Guard ships (background L and R) are seen past the Philippine Coast Guard ship BRP Cape Engano (C), during a supply mission to Sabina Shoal in disputed waters of the South China Sea on August 26, 2024. (AFP)
2 / 2
A Chinese Coast Guard ship with bow number 5205, right, collides with Philippine Coast Guard vessel BRP Teresa Magbanua near the Sabina Shoal at the disputed South China Sea on Aug. 31, 2024. (Philippine Coast Guard via AP)
Short Url
Updated 01 September 2024
Follow

China pushes rivals’ limits in regional disputes

  • China has in recent months deployed military and coast guard vessels in a bid to eject the Philippines from a trio of strategically important reefs and islands in the South China Sea
  • China has for years sought to expand its power in the South China Sea, brushing aside an international ruling that its claim to most of the waterway has no legal basis

BEIJING: China’s campaign of confrontation, from remote reefs in Southeast Asia to Taiwan and far-flung Japanese islands, is designed to wear down regional rivals competing with it for contested territories, analysts say.
Beijing in recent years has asserted its claims in the long-running disputes far more boldly as its military strength has grown.
The escalating actions — over islands in the East China Sea claimed by Japan, the self-ruled territory of Taiwan and the South China Sea — have also come as Beijing’s rivals have drawn closer to the United States.
“(China) believes its strong-arm tactics are paying dividends,” Duan Dang, a Vietnam-based maritime security analyst, told AFP.
China has in recent months deployed military and coast guard vessels in a bid to eject the Philippines from a trio of strategically important reefs and islands in the South China Sea.
“The number of fronts where an accident could spiral suddenly is very real,” Dylan Loh, an assistant professor at Singapore’s Nanyang Technological University, told AFP.
The latest flashpoint is Sabina Shoal, just 140 kilometers (86 miles) west of the Philippine island of Palawan and roughly 1,200 kilometers from China’s nearest major landmass, the island of Hainan.
On Monday, Beijing said it took “control measures” against two Philippine Coast Guard ships that “illegally” entered the waters near Sabina Shoal.
Manila countered that Chinese vessels had stopped Philippine ships from resupplying their own coast guard vessels in the area — slamming Beijing as the “biggest disruptor” to regional peace.

China has for years sought to expand its power in the South China Sea, brushing aside an international ruling that its claim to most of the waterway has no legal basis.
It has built artificial islands armed with missile systems and runways for fighter jets, and deployed vessels that the Philippines says harass its ships and block its fishers.
In 2012, Beijing seized control of Scarborough Shoal, another contested area close to the Philippines.
And in June, Chinese coast guard personnel brandishing weapons boarded Philippine vessels near the disputed Second Thomas Shoal, a confrontation in which Manila said one of its sailors lost a thumb.
The recent incidents have come as the Philippines has strengthened ties with traditional ally the United States, with which it has a mutual defense treaty.
Duan said the pact might “deter outright war,” but Beijing still saw a chance to tighten the screws on Manila while Washington was distracted by the ongoing Middle East conflict and the uncertainties around its own presidential election in November.
However the Philippines on Thursday flagged the possibility of US escorts for its resupply missions.
Chong Ja Ian, an associate professor of political science at the National University of Singapore (NUS), told AFP China was trying to “wear down” Filipino resolve.
Beijing is posing a “direct challenge to the Philippines’ ability to administer and make use of its exclusive economic zone,” he said.
They are “trying to push the envelope (but stay) below the threshold of aggression,” he explained.
“They don’t want to lose control of the escalation.”

China’s recent assertiveness has extended far beyond the South China Sea.
Around Taiwan, it has sent increasing numbers of fighter jets, drones and naval vessels as part of a strategy that analysts say is designed to keep the democratic island exhaustingly vigilant against a possible invasion.
Beijing says Taiwan is part of its territory and has refused to rule out using force to unify with it.
China has also in recent years ratcheted up pressure over a disputed island group controlled by Japan in the East China Sea.
Tokyo in June protested after four Chinese vessels that were believed to be armed approached the islands, known as the Diaoyu in China and the Senkaku in Japan.
And this week Japan said a Chinese military plane flew into its airspace for the first time, a “serious violation” of its sovereignty.
Beijing has not admitted the incursion near the uninhabited Danjo Islands — uncontestedly Japanese territory — but has said it would have been unintentional.
However, analysts said it may have deliberately aimed to probe Japan’s air defense network and collect electronic intelligence.
“People sometimes look at the South China Sea and the Taiwan Strait and the East China Sea... as isolated,” said Chong, of NUS.
“They are not. These are all areas where (China) hopes to be able to establish more control,” he said.
“They’re trying to see how far they can push.”


Britain needs ‘AI stress tests’ for financial services, lawmakers say

Updated 20 January 2026
Follow

Britain needs ‘AI stress tests’ for financial services, lawmakers say

  • Lawmakers urge AI-specific stress tests for financial firms

LONDON: Britain’s financial watchdogs are not doing enough to stop artificial ​intelligence from harming consumers or destabilising markets, a cross-party group of lawmakers said on Tuesday, urging regulators to move away from what it called a “wait and see” approach.
In a report on AI in financial services, the Treasury Committee said the Financial Conduct Authority and the Bank of England should start running AI-specific stress tests to help firms prepare for market shocks triggered by automated systems.
The committee also called on the FCA to ‌publish detailed guidance ‌by the end of 2026 on how ‌consumer ⁠protection ​rules apply to ‌AI, and on the extent to which senior managers should be expected to understand the systems they oversee.
“Based on the evidence I’ve seen, I do not feel confident that our financial system is prepared if there was a major AI-related incident and that is worrying,” committee chair Meg Hillier said in a statement.

TECHNOLOGY CARRIES ‘SIGNIFICANT RISKS’

A race among banks to adopt agentic AI, which ⁠unlike generative AI can make decisions and take autonomous action, runs new risks for retail customers, the ‌FCA told Reuters late last year.
About three-quarters ‍of UK financial firms now use ‍AI. Companies are deploying the technology across core functions, from processing insurance claims ‍to performing credit assessments.
While the report acknowledged the benefits of AI, it warned the technology also carried “significant risks” including opaque credit decisions, the potential exclusion of vulnerable consumers through algorithmic tailoring, fraud, and the spread of unregulated financial advice through AI chatbots.
Experts ​contributing to the report also highlighted threats to financial stability, pointing to the reliance on a small group of US tech ⁠giants for AI and cloud services. Some also noted that AI-driven trading systems may amplify herding behavior in markets, risking a financial crisis in a worst-case scenario.
An FCA spokesperson said the regulator welcomed the focus on AI and would review the report. The regulator has previously indicated it does not favor AI-specific rules due to the pace of technological change.
The BoE did not respond to a request for comment.
Hillier told Reuters that increasingly sophisticated forms of generative AI were influencing financial decisions. “If something has gone wrong in the system, that could have a very big impact on the consumer,” she said.
Separately, Britain’s finance ‌ministry appointed Starling Bank CIO Harriet Rees and Lloyds Banking Group ‘s Rohit Dhawan as “AI Champions” to help steer AI adoption in financial services.