Sharp China with Bill Bishop Trump, Takaichi and a Game of Telephone; Japan Jawboning Continues; An Internet Governance Study Session; China Making Trade ‘Impossible’
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Dec 3, 2025 Tensions between China and Japan take center stage, challenging not only diplomacy but historical narratives. The hosts dissect a controversial call between Trump and Xi, revealing conflicting reports and unclear messages regarding Taiwan. Internet governance and AI strategies emerge as China seeks to tighten ideological control while attempting to export its digital model globally. Meanwhile, the struggling real estate sector raises alarms, as Vanke's debts and systemic risks could spell trouble for the economy. Europe faces its own dilemma as dependency on China complicates trade.
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Calls Fueled By Leaks, Not Clarity
- Conflicting media readouts around the Xi–Trump and Trump–Takaichi calls made the story murkier and magnified interpretations.
- Bill Bishop warns to watch actions over readouts because governments and reporters routinely dissemble.
China's Calibrated Pressure On Japan
- China has elevated pressure on Japan using tourism, cultural and economic levers while avoiding immediate escalation to rare-earths restrictions.
- Bill Bishop sees the campaign as costly for China's international image and unlikely to force Japan's retraction.
Taiwan Is Central To China's Signaling
- The PRC centers Taiwan in messaging to signal costs for countries crossing red lines, aiming to deter involvement.
- Bishop and Andrew note this amplifies tensions and clarifies Chinese intent even if it backfires diplomatically.