Asia Communique Newsletter – 18 September 2025

Apple tests foldable iPhone in Taiwan | China urges unity, warns jungle law | Japan deploys F‑15 jets to NATO bases | Taiwan unveils joint cruise missile | Saudi and Pakistan ink defense pact |

Welcome to Asia Communique, your rapid round‑up of major stories from across Asia over the past 24 hours.

Technology & Business

Apple explores foldable iPhone production in Taiwan

Nikkei Asia reports that Apple has entered talks with suppliers about setting up a test production line for a foldable iPhone in Taiwan . The company aims to fine‑tune manufacturing steps ahead of potential mass production in India for a 2026 launch. Apple plans to build about 95 million phones in its 2026 lineup—more than 10 % above current output—with the foldable model seen as a key driver .

China bans Nvidia’s China‑focused chips

On 17 September, the Financial Times reported that China’s Cyberspace Administration told major tech firms such as ByteDance and e‑commerce giant Alibaba to stop ordering and testing Nvidia’s RTX Pro 6000D AI chip—a product custom‑built for the Chinese market to comply with US export controls. The directive affects tens of thousands of the specialized chips and aims to steer Chinese companies toward domestic alternatives like Huawei’s Ascend 910C. Beijing’s move underscores its push to reduce reliance on US technology amid escalating chip‑trade tensions; one Chinese executive quoted by the FT said the message was “now loud and clear”. Nvidia’s shares fell nearly 3 % after the directive became public, reflecting investor concern about the company’s position in China. Analysts say the ban may accelerate the country’s shift toward home‑grown AI chips.

Defense & Security

China calls for unity to avoid ‘law of the jungle’

At the Xiangshan Forum in Beijing on 18 September, Chinese Defense Minister Dong Jun urged countries to strengthen multilateral cooperation and avoid a world defined by the “law of the jungle.” He cautioned against unilateralism and implicitly criticized hegemonic behavior . Dong said the forum drew more than 1,800 representatives from 100 countries , though Western nations sent low‑level delegations. The remarks underline Beijing’s effort to frame itself as a champion of inclusive security while pushing back against US‑led alliances.

Japan sends fighter jets to NATO bases

In a historic mission dubbed “Atlantic Eagles,” Japan has deployed eight aircraft—including four F‑15J fighters, two C‑2 transport planes and two refueling tankers—to NATO bases in North America and Europe. The deployment, which began on 14 September and was publicized on 18 September, takes Japanese aircraft to U.S. bases in Alaska and Canada before continuing to RAF Coningsby in the UK and Lajes Air Base in Germany. The mission includes joint training on air‑refueling and tactical manoeuvres, and marks the first time Japanese fighter jets have operated from NATO bases since World War II. Analysts note that the operation signals Japan’s deeper integration with NATO amid rising tensions in the Indo‑Pacific.

Taiwan unveils jointly developed cruise missile

At the Taipei Aerospace and Defense Technology Exhibition on 17 September, Taiwan’s state‑owned National Chung‑Shan Institute of Science and Technology (NCSIST) displayed the Barracuda‑500Q, an autonomous cruise missile jointly designed with U.S. defense start‑up Anduril Industries. The showcase marks the island’s first missile to be jointly manufactured with a US company and aims to bolster Taipei’s deterrence against China. NCSIST plans to mass‑produce the missile locally via technology transfer. Institute president Li Shih‑chiang said the goal is to keep the cost per missile below NT$6.5 million (about US$275,000) and to build the entire production line domestically. Taiwan has set a target of spending 5 % of GDP on defense by 2030—up from a 3.3 % target next year.

Saudi Arabia and Pakistan sign mutual defence pact

During Pakistani Prime Minister Shehbaz Sharif’s state visit to Riyadh on 17 September, Saudi Arabia and Pakistan signed a formal mutual defense pact. The agreement commits both nations to consider any attack on either country as an attack on both, institutionalizing decades‑long security cooperation. Officials described it as a comprehensive defensive agreement covering all military means and emphasized that it was the culmination of years of discussion rather than a reaction to any specific incident. Observers note that the pact strengthens Riyadh’s ties with the only Muslim‑majority state possessing nuclear weapons and could reshape security dynamics in the Middle East and South Asia.

Law & Aviation

Families sue Boeing and Honeywell over Air India crash

Relatives of four passengers killed in the June 12 Air India Flight 171 crash filed a lawsuit in Delaware Superior Court on 17 September, alleging that faulty fuel cutoff switches made by Boeing and Honeywell caused the accident. The suit claims that the switches’ location in the cockpit made them prone to being pushed inadvertently and faults them for cutting off fuel to the engines. Investigators noted that Air India had not carried out suggested inspections of the switches; maintenance records show the throttle control module was replaced in 2019 and 2023. The crash killed 229 passengers, 12 crew members and 19 people on the ground; one passenger survived. Plaintiffs seek unspecified damages and hope the case will spur greater scrutiny of aircraft safety procedures.

China’s delayed UN dues deepen global funding crunch

China is paying its UN budget dues later each year—slipping from two months late in 2021 to ten months in 2024, according to a Financial Times analysis. Last year, Beijing settled its $480mn contribution just before year-end, and now owes nearly $600mn for 2025.

Together with U.S. arrears, the delays have forced a 17% cut—about $600mn—in the UN’s 2025 operations budget. While China’s assessed share has risen to 20% of the $3.7bn budget, its voluntary contributions remain low, just $150mn in 2023 compared to $9.8bn from the U.S.

Diplomats warn the late payments are squeezing UN liquidity even as Beijing seeks more influence in the system. China argues the delays are procedural, contrasting them with Washington’s long-term caps and withdrawals.

Reads:

US in talks to fund multibillion-dollar mining initiative for critical minerals — Financial Times

Can China Replace USAID? — Foreign Policy