China Insider China Insider | Trump-Xi Phone Call, Hong Kong’s Five Alarm Fire, Taiwan’s $40-billion Defense Budget
Dec 2, 2025
The podcast discusses a high-stakes phone call between Trump and Xi regarding Taiwan, emphasizing the role of narrative in their information warfare. A devastating fire in Hong Kong that left 128 dead prompts an investigation into safety flaws and political fallout. Taiwan's ambitious $40 billion defense budget is also explored, highlighting its efforts to enhance security and deter threats from China. The interplay of regional alliances and asymmetric defense strategies are key themes throughout.
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Narrative Warfare Over Taiwan
- Xi Jinping attempted to manufacture a false narrative framing Japan as a 1930s enemy to pressure Taiwan-related diplomacy.
- Miles Yu says the claim that Trump urged Japan to soften toward China was disinformation that backfired after Tokyo denied it.
Silence Vs. Ambiguity In U.S. Policy
- Strategic silence differs from strategic ambiguity; U.S. military resolve on Taiwan is clear while diplomatic wording remains deliberately vague.
- Miles Yu stresses allies like Japan can voice tougher positions the U.S. cannot openly adopt.
Fire Exposes Hong Kong Governance Failures
- Hong Kong's deadly Tai Po fire exposed governance failures, aging buildings, and controversial mainland-sourced materials.
- Miles Yu argues the disaster amplified political anger toward Beijing and highlighted regulatory and maintenance neglect.