A US Department of Defense report stated China considers Arunachal Pradesh a core interest, a claim China rejected. China also sanctioned US defense firms over arms sales to Taiwan, while Taiwan's parliament faced hurdles on a military spending package. Industrial profits in China fell sharply in November due to weak domestic demand, despite resilient exports. Meanwhile, K-pop concerts are set to return to mainland China after years of limited cultural exchange, a thaw partly linked to past military sales disputes.