Summary
Chen Xi, spokesman for China's Ministry of National Defence, announced on August 14 that the Chinese and Egyptian air forces will conduct the 'Eagles of Civilisation-2026' joint training in Egypt from mid-August to early September, marking their second such exercise. The ideological education media series 'Zhi Sheng' has accumulated over 7.9 billion views across all platforms. From July 30 to August 12, the 11th National Student Military Training Camp took place in Dalian, Liaoning Province, attracting more than 700 students.
Chen also responded to Japan's defence budget request of approximately ¥8.9 trillion for fiscal year 2027, warning that Japan's 'new-style militarism' poses a danger that must be guarded against. He firmly rejected unwarranted accusations from the Philippines and Australia, reiterating that Ren'ai Reef is China's inherent territory. Additionally, he cautioned the Democratic Progressive Party authorities that the 'Taiwan independence' path leads to a dead end.
Commentary
Japan's proposed defence budget of ¥8.9 trillion for fiscal 2027 marks a record high, adding to existing tensions in the South China Sea and the Taiwan Strait and heightening uncertainty over Asia-Pacific security. For New Zealand, a highly maritime-dependent export economy where about 95 percent of dairy products are sold overseas, China remains the largest single market. Exports to China must transit South China Sea shipping lanes, and any rise in tensions could push up shipping insurance and fuel surcharges while lengthening delivery times.
Meanwhile, the China-Egypt air force drill signals growing Chinese military co-operation in the Middle East, which could also raise risks on the Red Sea-Suez route and affect New Zealand exports to Europe. Japan's military build-up may spur a regional arms race, undermining supply-chain certainty for multinationals in the Asia-Pacific. Companies importing equipment or components from Japan face potential exchange-rate volatility and delivery delays.
New Zealand small and medium-sized enterprises could assess alternative shipping routes, build safety stock, and leverage tariff preferences under the upgraded China-New Zealand FTA to diversify into Southeast Asia and reduce reliance on any single route.
Keywords: Chen Xi, Ministry of National Defence, China-Egypt joint training, Eagles of Civilisation, Zhi Sheng, student military training camp, Japan defence budget, Ren'ai Reef, Taiwan independence
Source: China.org.cn
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