• TwoTigers24, New York
  • October 19, 2026

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The US, Philippines and Japan are joined by a growing group of allies in the largest iteration of the Balikatan exercise yet. With new participants including France, Canada and New Zealand, the drills are expanding in scale and complexity, from live-fire maritime strikes to integrated air and missile defense. For the first time, exercises are being held in the Bashi Channel, just over 100 miles from Taiwan. The strategic importance of the First Island Chain is further underscored by Japan’s larger than expected commitment of 1,400 troops. In response, Beijing has sharply criticized the allies and blocked air travel over wide swathes of the Yellow Sea and East China Sea. In this episode, we examine what’s driving this expansion and what it means for Taiwan and regional security. *Recorded on April 21, 2026 at 2:30pm Taiwan Standard Time Host/Senior Producer: Yin Khvat Consultant: Max Yu Research Assistant: Ryan Pham Our guests: Tony Hu Former US Department of Defense Senior Director for China, Taiwan and Mongolia Sana Hashmi Taiwan-Asia Exchange Foundation Fellow Renato Cruz de Castro De La Salle University Department of International Studies Distinguished Professor Chapters: 00:00:00 – Philippines Hosts Biggest-Ever Drills 00:01:47 – China, Japan Sail Through Strait 00:04:33 – US Allies in ‘Real World’ Exercises 00:13:38 – Japan Sends 1,400 Troops 00:19:20 – Beijing Locks Down Airspace

Source: Balikatan: China Fury as Japan, New Zealand Join US – Philippines Drills | Taiwan Talks EP817

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YNOT — Two Tigers Consulting From Building Bridges to Watching China About 15 years ago, I founded a small company called Two Tigers Consulting with a relatively simple idea: help American and Chinese businesses work together. At the time, China represented one of the greatest business opportunities in the world — a rapidly expanding economy, extraordinary manufacturing capabilities, and ambitious entrepreneurs eager to build relationships with American companies. Two Tigers Consulting was created to help bridge that gap. For a while, it worked. We attended trade shows, arranged meetings, and introduced companies across both cultures. But after one particularly promising trade show, several Chinese businesspeople we had met were reportedly arrested upon returning to China — apparently for traveling without proper authorization. That experience taught me something important: in China, being a successful entrepreneur doesn't necessarily mean being free to conduct business. As Xi Jinping consolidated power and the political environment shifted, we concluded the potential rewards of doing business in China no longer justified the risks. Rather than abandon our knowledge entirely, Two Tigers evolved into a platform for following, discussing, and analyzing developments inside China — its economy, political leadership, and increasingly complicated relationship with the United States. I want to make absolutely clear that I have tremendous respect for the Chinese people — their entrepreneurs, engineers, and workers are extraordinarily capable. But I also believe China's political system creates fundamental contradictions: enormous private fortunes can be accumulated, yet ultimate political authority remains firmly concentrated, making relationships based on mutual trust and predictable rules extremely difficult to sustain. Today, Two Tigers is an independent publication examining China's achievements, challenges, ambitions, and contradictions — where they intersect with the United States and the broader world. What began as a small business venture now attracts roughly 10,000 visits a day. Understanding China is no longer optional: what happens there affects businesses, economies, and people throughout the world. And that is why Two Tigers continues.

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