Question: How would China counter this form of terrorism ?
I think China learned a lot from Nord Stream 2 about this sort of thing and considers it a possibility, given the otherwise unacceptable escalation ladders associated with open warfare
She's establishing 'conventional M.A.D', kinetically and non-kinetically, and the missing piece (but is improving) is building ISR to the point she has some means to respond quickly (not necessarily by dispatching a vessel) to anything bigger than a driftwood log that appears on Earth's ocean.
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