Key insights
- Chinese aircraft carrier drills east of the Philippines, near Japan and Taiwan, signal increased regional assertiveness. This activity, occurring amidst strengthening US-Philippines-Japan security ties, raises geopolitical tensions in the Western Pacific. While not a direct economic shock, heightened geopolitical risk can negatively impact investor sentiment and potentially disrupt regional trade routes, leading to a cautious outlook for US equities.
TOKYO, June 1 (Reuters) - The Chinese navy was spotted conducting aircraft carrier drills in the Pacific Ocean east of the Philippines last week, Japan’s defence ministry said in a bulletin on Monday.
The Japan Maritime Self-Defense Force confirmed that China’s aircraft carrier Liaoning and accompanying vessels were cruising the waters east of the Philippines’ Luzon island between May 26 and May 28, said the bulletin, which included a map.
Liaoning-based planes and helicopters conducted roughly 170 take-off and landing drills as the Chinese fleet sailed around the western Pacific Rim, reaching as close as 590 km (367 miles) southeast of Japan’s Miyakojima island, the bulletin said.
Japan’s defence ministry said the Liaoning was moving southeastward along the Philippines on Friday but did not provide further updates.
Taiwan’s defence ministry has also been monitoring the Liaoning, which it said in April was the first Chinese aircraft carrier to sail through the Taiwan Strait since December.
China has recently ramped up maritime activities in the western Pacific in response to the deepening security ties between U.S. allies Japan and the Philippines.
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