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China & Taiwan Update, October 27, 2026

ISW · Institute for the Study of War ·

Executive Summary

China is escalating military pressure on the Philippines in the South China Sea, using naval deployments and rhetoric to assert territorial claims and practice isolation tactics. Concurrently, China is developing advanced space warfare capabilities while publicly advocating for space arms control. Taiwan is actively working to reduce its economic vulnerability to Chinese coercion, particularly in the critical rare earth metal sector.

Why It Matters

This document details China's multi-faceted strategy to assert regional dominance through military coercion, advanced technological development, and economic leverage, directly impacting regional stability and international security.

Key Takeaways

  • China is increasing military pressure on the Philippines in the South China Sea, using naval deployments and rhetoric to intimidate and assert territorial claims, potentially practicing isolation tactics for future conflicts.
    Source evidence · PDF page 2
    The People·s Republic of China (PRC) is likely increasing military pressure on the Philippines to impose costs on Manila·s opposition to PRC claims in the South China Sea. The People·s Liberation Army Navy (PLAN) may also be practicing movements critical to isolating the Philippines during a future conflict.
  • Despite advocating for space arms control, China is actively developing advanced counterspace and dual-use assets, preparing for potential warfare in the space domain, which could be used against adversaries like the US and its allies.
    Source evidence · PDF page 3
    The PRC has taken measures to prepare for warfare in the space domain despite this rhetoric, particularly through developing counterspace assets and sending dual-use assets into orbit.
  • Taiwan is taking steps to reduce its economic vulnerability to Chinese coercion, specifically by planning to increase domestic rare earth metal production, as China has historically used export restrictions as leverage in international disputes.
    Source evidence · PDF page 4
    Taiwan is working to decrease its vulnerability to PRC economic coercion in the rare earth metal sector. The PRC has frequently used export restrictions of rare earth metals and magnets as leverage in international disputes.

Strategic Relevance

The report highlights China's aggressive geopolitical strategies in the Indo-Pacific, including military expansion, technological competition in space, and economic coercion. This directly impacts regional security dynamics, US alliance structures, and the potential for conflict over Taiwan and the South China Sea.

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Key Entities

ChinaTaiwanPhilippinesPeople's Liberation Army Navy (PLAN)People's Liberation Army (PLA)United StatesNorth KoreaSouth China SeaBasilan StraitLiaoningKJ-3000

Best For

Geopolitical analystsDefense strategistsPolicymakersIntelligence communityAcademics studying China/Taiwan/Philippines

Related Themes

South China Sea disputesTaiwan Strait securitySpace warfareEconomic coercionIndo-Pacific security

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