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China Accelerates Expansion of Ferry Fleet, Potentially Preparing for Taiwan Invasion

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A confidential report from the U.S. Defense Intelligence Agency (DIA), revealed by the Australian Broadcasting Corporation (ABC), indicates that China is rapidly expanding its commercial ferry fleet and converting some large ferries to carry tanks, incorporating them into People’s Liberation Army (PLA) training as potential amphibious warfare assets.

The report shows that since 2022, Five Eyes Alliance has monitored around 30 Chinese commercial ferries participating in military exercises. China plans to build over 70 similar vessels by 2026. Recent satellite imagery also reveals that these ferries are being integrated with new landing pontoons, enabling direct transport of personnel and vehicles onto beaches.

Taiwan’s representative to Australia, Hsu Yu-Tein, confirmed that these ferries are seen as part of China’s “expansionist ambitions,” with Beijing simultaneously employing “gray-zone tactics,” including cyberattacks and dual-use measures, to weaken Taiwan’s defenses.

The Center for Strategic and International Studies (CSIS) in the U.S. estimates that China is constructing 76 large ferries, some controlled by state-owned enterprises, and reinforcing them under the “civil-military integration” strategy to adapt for military use.

Washington intelligence sources widely believe that Chinese leader Xi Jinping has ordered the PLA to achieve the capability to invade Taiwan by 2027, with large-scale cross-sea landings remaining one of the greatest operational challenges.

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U.S. Investment Report Criticizes National Security Law, Hong Kong Government Responds Strongly

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The latest U.S. State Department Investment Climate Report commented on Hong Kong’s business environment, specifically criticizing the Hong Kong National Security Law and the Law on Safeguarding National Security. The Hong Kong SAR government expressed strong dissatisfaction, calling the report a malicious attempt to tarnish Hong Kong’s image.

The report stated that since the Law on Safeguarding National Security came into effect last year, Hong Kong’s investment environment has faced increased uncertainty. It argued that definitions of “espionage,” “state secrets,” and “foreign interference” are overly broad and vague, and their potential extraterritorial application could affect or harm routine business operations.

A government spokesperson responded that the implementation of the National Security Law has restored safety and stability to Hong Kong society, protecting citizens’ rights while enhancing the city’s attractiveness as an international financial hub. The spokesperson emphasized that Hong Kong’s excellent business environment continues to attract domestic and foreign investment, and that the government’s efforts to promote economic and social development have received international recognition.

The SAR government highlighted that Hong Kong continues to rise in international rankings in areas such as economic freedom, finance, innovation and technology, education, and talent, reflecting its core competitiveness. The government reaffirmed that under “One Country, Two Systems,” Hong Kong continues to follow common law, with an independent judiciary and a stable rule of law.

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China Becomes Top Destination for Australian Tourists, But Chinese Visitor Return Slows

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According to an Expedia report, Chinese cities have for the first time taken four spots in the top ten international destinations for Australian travelers, including the top three: demand for Shanghai rose 150% year-on-year, Shenzhen 130%, and Beijing 110%. Guangzhou, ranked sixth, also saw an increase of 55%.

Data from the Australian Bureau of Statistics shows that in July 2024, over 50,000 Australians returned from China, up 21% compared with the same period in 2019. However, Chinese tourist arrivals to Australia have been slower to recover, with only 112,900 visitors recorded in the same month—still 25% below pre-pandemic levels. Despite this, the industry considers China to remain the “fastest-growing inbound market.”

Margy Osmond, CEO of the Tourism & Transport Forum (TTF), noted that the slower-than-expected return of Chinese visitors has impacted retail, dining, education, and regional economies. In 2019, Chinese tourists spent A$10.3 billion in Australia across 1.328 million trips; by 2024, this had declined to A$8.1 billion and 829,000 trips.

To revitalize the market, Tourism Australia launched the A$130 million “Come and Say G’Day” campaign, featuring Chinese actor Yu Shi in promotional advertisements.

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Albanese Visit to UK Focuses on Domestic Reform, Not Republican Debate

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Australian Prime Minister Anthony Albanese recently met with King Charles III at Balmoral Castle in Scotland, making it clear that he will not hold a referendum on whether Australia should become a republic during his term. Albanese described the meeting as a “very pleasant lunch” and noted that discussions did not touch on severing ties with the UK or establishing a republic.

As the head of 15 Commonwealth realms, including Australia, King Charles’s role is largely ceremonial. Albanese emphasized that, while he personally supports a republican model, he respects the current system and previous decisions, and he reaffirmed his oath of allegiance to the King. He pointed out that the earlier “Voice to Parliament” referendum proposed under his government did not pass, and the government is now focusing on addressing practical concerns, such as the rising cost of living.

Albanese also highlighted that King Charles and Queen Camilla received a warm welcome during their visit to Australia last year, demonstrating that the monarchy continues to enjoy significant respect in the country. He stressed that the King understands his support for Australians serving as their own head of state while simultaneously respecting the existing constitutional system and government operations.

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