China plans to expand international defence cooperation across joint military exercises, personnel training, equipment and technology, according to its defence minister.

China's Ministry of National Defense has announced plans to broaden international defense cooperation, encompassing joint military exercises, personnel training, and technology sharing. This initiative signals a strategic effort to enhance China's geopolitical influence and military capabilities through expanded alliances and partnerships. The primary transmission mechanism is likely to be a shift in global risk appetite and potential capital flows, as increased defense cooperation could alter regional security dynamics and perceived geopolitical stability. Markets will monitor upcoming joint exercises and any specific bilateral agreements for indications of evolving strategic alignments, particularly in the Indo-Pacific region.

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