EAI Current Watch Diplomacy Issue Reports from Real-time Local Perspectives

  • Solomon Islands' Balancing Diplomacy Between the US and China: The Push for a Shiprider Agreement and Implications for the West Pacific Maritime Hegemonic Competition Inhwan Oh
  • Regulatory Risks and Strategic Response Directions for South Korea's Defense and Space Industries in Light of Enhanced Dual-Use Technology Export Controls Inho Choi
  • Japan's Shift in Defense Export Strategy as Seen Through the Australia-Japan Mogami-class Frigate Deal and the Response Challenges for South Korea's Defense and Shipbuilding Industries Inho Choi
  • World Issue Today August 8, 2026

    Today's issues, curated through local perspectives from 192 countries

    1. Risk to Strait of Hormuz Passage and Surging Oil Prices/Shipping Freight Rates Amid Iran-Israel-U.S. War Escalation As U.S.-Israeli military operations against Iran have expanded, armed clashes have occurred near the Strait of Hormuz (including Qeshm Island), and Saudi Arabia, Turkey, and Pakistan have signed a defense agreement, reshaping the Middle East security architecture. This is directly linked to concerns over the blockade of crude oil transport routes, surging oil and LNG prices, and rising shipping freight rates, directly affecting the energy and shipbuilding/shipping industries.
    2. China's Export Offensive of Overcapacity ('China Shock 2.0') Deepens Hollowing-Out of European Steel and Manufacturing Analysis suggests that Europe's industrial base is being eroded as China exports massive volumes of overproduced goods to the European market amid weak domestic demand. This is expected to increase pressure for the EU to strengthen CBAM and anti-dumping measures, and to deepen trade friction in the steel and automotive sectors.
    3. Failure to Restructure Critical Minerals Supply Chains, Difficulties in Mobilizing Private Capital, and Expanding Risks in the Battery and Steel Industries Experts have pointed out that government subsidies have failed to resolve the structural binding constraint deterring private capital investment, delaying diversification of critical minerals supply chains. Competition to secure minerals such as lithium, nickel, and cobalt is translating into supply chain risks for the battery, electric vehicle, and specialty alloy industries.
    4. China's Attempt to Internationalize the Yuan Amid the Hormuz Crisis Exposes the Limits of Challenging the Dollar-Based System As Iran moves to expand the use of the yuan for Hormuz transit fees, among other things, China's 'financial power' strategy has been put to the test, but the immaturity of China's financial system and its structural dependence on the dollar are cited as limiting factors for yuan internationalization. This is emerging as a geopolitical risk for the financial industry, intertwined with the financial sanctions regime against Iran and its exclusion from SWIFT.
    5. Intensifying Hegemonic Competition over AI Computing Infrastructure; Discussions Emerge on Building a 'Compute Coalition' Among Free-World Nations As AI infrastructure emerges as a key factor determining the global balance of power, arguments have been raised that democratic nations must urgently build a semiconductor and computing resource alliance (a 'Compute Coalition'). This has a direct impact on the landscape of U.S.-China technology decoupling and semiconductor export controls.

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  • Implications of the US Transition to Energy Self-Sufficiency on its Middle East Strategy: Prospects for Weakened Commitment to Protecting the Strait of Hormuz and Shifting the Burden to Allies Inhwan Oh
  • China's Intensified Rare Earth Export Controls and Japan's Supply Chain Diversification Strategy: Geoeconomic Weaponization and South Korea's Strategic Response Inhwan Oh
  • The Complex Crisis of ROK-US Trade Friction: A Test of Alliance Strategy Management Triggered by the Coupang Discrimination Controversy and White House Pressure Inho Choi
  • Venezuela's Great Earthquake and the U.S. Strategic Humanitarian Intervention: The Transitional Government's Governance Crisis and the Realignment of Bilateral Relations Inho Choi

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