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Home News Macro

China Escalates “Pen and Gun” Pressure Campaign on Taiwan — Cultural Indoctrination at Home, Coercion Abroad

by Team Lumida
November 20, 2025
in Macro
Reading Time: 8 mins read
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China’s Bold Economic Moves: What You Need to Know Now

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Key Takeaways

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  • Beijing is intensifying a dual strategy—“the pen and the gun”—combining state-driven propaganda with coercive geopolitical moves to isolate Taiwan.
  • China is running a new prime-time spy drama, “The Silent Honor,” glorifying Communist agents in Taiwan to shape public opinion and harden domestic appetite for “reunification.”
  • In parallel, Beijing is targeting Taiwan’s supporters—especially Japan—via threats, military activity near disputed islands, and economic retaliation.
  • Analysts say China aims to make Taiwan’s position economically, diplomatically, and psychologically unbearable without firing a shot (“Plan A”), while keeping a military option open (“Plan B”).
  • Beijing sees a strategic opening as the Trump administration sends mixed signals on U.S. security commitments to Taipei.

Beijing’s Strategy: “The Pen”

1. Cultural Indoctrination Campaign

China’s state media has launched a sweeping ideological push:

  • Prime-time propaganda:
    “The Silent Honor” portrays CCP spies in Taiwan in the 1940s–50s as martyrs executed in service of future unification.
  • Censorship and direction of arts:
    State drama troupes are being approved only for war-themed, nationalist productions. Other genres are being blocked.
  • Historical pattern:
    Analysts draw parallels to Xi Jinping’s use of “The Qin Empire III” in 2017 to build momentum for abolishing presidential term limits.

The objective is to condition mainland citizens for a prolonged struggle—psychological groundwork for coercive reunification.


“The Gun”: External Pressure and Coercion

1. Targeting Japan

Japan is now the main foreign target of China’s pressure campaign:

  • After PM Sanae Takaichi warned Japan would intervene in a Taiwan conflict, China’s consul general in Osaka threatened to “cut off her dirty neck”—a deliberate, sanctioned escalation.
  • Chinese Coast Guard ships entered disputed waters near the Senkaku/Diaoyu Islands.
  • A PLA drone approached Yonaguni, Japan’s closest point to Taiwan.
  • China encouraged citizens to avoid Japan, discouraged students from studying there, and delayed Japanese film releases—moves that hit Japanese consumer stocks.

2. Militarization Near Taiwan

China is expanding military operations in the Taiwan Strait—frequent incursions, near-daily pressure flights, and coordinated naval activity—to normalize intimidation.

3. Diplomatic Isolation

China is working to separate Taiwan from external political and economic support through:

  • Diplomatic browbeating
  • Influence operations
  • Coercive trade and tourism measures

Why Now? Beijing Sees a Strategic Opening

1. U.S. Strategic Ambiguity Returning Under Trump

Unlike Biden, Trump refuses to say whether the U.S. would defend Taiwan militarily.
China interprets:

  • Delays in U.S. military aid
  • Trump’s pursuit of an economic deal with Beijing
  • Limited rhetorical support for Taipei

…as signs of hesitancy they can exploit.

2. Taiwan’s Strengthening Identity

Beijing believes it is losing the ideological battle:

  • 60–70% of Taiwanese now identify solely as “Taiwanese,” not Chinese.
  • The Democratic Progressive Party continues to deepen ties with the West.
  • President Lai Ching-te is labeled by Beijing as a “dangerous separatist.”

This pushes China to resort to propaganda to reshape public sentiment at home.


Beijing’s Playbook: Plan A vs. Plan B

Plan A: “Coercive Unification Without War”

  • Squeeze Taiwan through military pressure, trade restrictions, and diplomatic isolation.
  • Shape domestic Chinese opinion to accept or demand decisive action.
  • Force Taipei into negotiations under duress.

Plan B: “Military Option”

Not imminent, but always present.
China is lowering the threshold through steady gray-zone operations that make incremental escalation feel normal.


The Big Picture

China’s actions represent a systemic, coordinated pressure campaign designed to:

  • Harden mainland nationalism
  • Intimidate external supporters
  • Exploit wavering U.S. commitment
  • Weaken Taiwan’s confidence and resilience

Beijing is trying to change the psychological environment long before any conventional conflict—classic “pen and gun” strategy.

Source
Tags: China
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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

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