China’s Export Data Inflated by Government-Backed Fraud Scheme
A comprehensive investigation by Chinese financial media outlet Yicai has exposed widespread fraud in China’s export statistics, revealing that local governments have not only permitted but actively orchestrated schemes to artificially inflate trade figures. This comes as Beijing announced that its trade surplus for the first eleven months exceeded $1 trillion, reaching a historic high.
The report details a systematic fraud involving “bought export data,” where shell companies purchase export statistics from customs brokers to claim government subsidies. Unlike traditional tax fraud schemes, these operations rely on local government rewards for export performance. Companies establish numerous shell entities with foreign trade qualifications, purchase export data that never actually occurred in their registered locations, and receive financial incentives based on these fabricated figures.
In one case from an inland province, defendants allegedly established shell companies across multiple locations and purchased export data from other provinces, defrauding the government of over 100 million yuan ($13.8 million) in export incentives. A similar case in southwestern China involved more than 100 shell companies and fraudulent claims exceeding 200 million yuan ($27.6 million).
Evidence suggests local governments not only knew about these practices but actively participated. Family members of defendants stated the schemes were designed to “cooperate with the government in achieving performance targets.” Some officials provided explicit or implicit support, with one former commerce bureau chief receiving millions in kickbacks through profit-sharing arrangements.
Legal expert Shi Zhengwen from China University of Political Science and Law criticized the export incentive policies, arguing they distort market competition and violate international trade rules. He noted that such data manipulation contradicts Beijing’s stated goals of high-quality development and creating a world-class business environment, suggesting local governments prioritize short-term targets over genuine economic progress.
Source: Central News Agency (Taiwan), December 29, 2025 https://www.cna.com.tw/news/acn/202512290314.aspx
China Requires Social Media Screening for Civil Service Recruitment
Multiple regions across China are now examining candidates’ online behavior and social media activity as part of civil service recruitment, according to recent reports from the China Organization and Personnel News, a publication under China’s Ministry of Human Resources and Social Security.
In Shandong province, authorities have implemented comprehensive background checks that scrutinize applicants’ political ideology, career motivations, and value orientations. Investigators visit workplaces, communities, residential compounds, and candidates’ homes to assess their conduct both during and outside working hours. For those who frequently changed jobs, investigators extend inquiries to previous employers to evaluate work performance and public perception. Collaborating with internet and public security departments, authorities review online statements of key personnel to understand their true character both in person and online, firmly screening out those deemed politically unqualified.
Hubei province conducts similar assessments covering candidates’ work circles, social circles, and personal development. Investigators physically visit educational institutions, workplaces, and residences while monitoring daily online behavior. They randomly examine posts in alumni groups and other public platforms, reviewing social media accounts for content shared, followed accounts, likes, and comments to gauge political stance, values, and personal interests.
In Xinjiang’s Altay region, civil service recruitment now includes screening for risky online behaviors such as posting inappropriate content, spreading false information, engaging in online gambling, or illegal lending on social media platforms.
A professor from the Central Party School noted that while political, value-based, and moral requirements have always been central to civil service examinations, the scrutiny of candidates’ online and offline conduct has become increasingly detailed. Following these announcements, training institutions in Hubei have advised candidates to self-examine their online behavior and maintain appropriate conduct both online and offline.
Source: Central News Agency (Taiwan), December 27, 2025
https://www.cna.com.tw/news/acn/202512270058.aspx
People’s Daily: Nearly 495,000 Overseas Students Returned to China in 2024, Up 19.1 Percent Year on Year
China’s Ministry of Education said that 495,000 Chinese students who studied overseas returned to China in 2024, a 19.1 percent increase from the previous year, highlighting a growing trend of overseas talent returning home. The announcement was made at the 30th anniversary of the “Chunhui Plan” and the 2025 Chunhui Innovation and Entrepreneurship Exchange held in Shanghai.
Since 1978, 8.88 million Chinese students have studied abroad, with 6.44 million eventually returning to China. Of these, 5.63 million have returned since the 18th Chinese Communist Party’s National Congress (when Xi Jinping came into power in 2012), accounting for about 87 percent of all returnees, providing strong support for China’s economic and technological development.
Source: People’s Daily, December 12, 2025
https://world.people.com.cn/n1/2025/1212/c1002-40622757.html
LTN: Russia Suspected of Developing A Space Weapon Aiming Starlink Satellites
Major Taiwanese news network Liberty Times Network (LTN) recently reported that, as the Russia-Ukraine war enters its fourth year, the threat level in the space arena has risen again. Intelligence agencies in two NATO member states suspect that Russia is developing a new anti-satellite weapon primarily targeting Elon Musk’s Starlink satellite constellation. This weapon is not intended for a single target, but rather to cripple Western space superiority over a wide area by releasing a devastating cloud of shrapnel.
Intelligence documents revealed that this weapon, dubbed “zone-effect,” is planned to release hundreds of thousands of high-density microparticles in orbit. These particles may be released by a constellation of small, yet-to-be-launched satellites, and once deployed, they would simultaneously disrupt multiple Starlink satellites, severing the communication and guidance links that the Ukrainian army relies on for survival on the battlefield. These deadly particles are only a few millimeters in diameter and are virtually undetectable by existing ground-based and space-based radar systems, making tracing accountability extremely difficult. This is different from the anti-satellite missiles previously tested by Russia. However, the newly developed “zone-effect” weapon has a wider kill radius and is more difficult to defend against.
Analysts have questioned the practicality of this weapon. Such indiscriminate attacks could trigger an out-of-control chain reaction, potentially destroying not only Starlink but also Russia’s own satellites and those of its allies, like China. Starlink orbits at an altitude of approximately 550 kilometers. Over time, debris will fall into the Earth, threatening China’s Tiangong space station and the International Space Station (ISS) – both operate in lower orbits.
Source: LTN, December 22, 2025
https://def.ltn.com.tw/article/breakingnews/5286318
CNA: Porsche Sales in China Plummeted
Primary Taiwanese news agency Central News Agency (CNA) recently reported that, in the first three quarters of this year, Porsche sold only 32,000 vehicles in China, a sharp drop of 26 percent compared to the same period last year, and a nearly two-thirds drop from the peak sales of 95,000 vehicles in 2021.
German luxury car brand Porsche entered the Chinese market in 2001, and its sales have continued to climb ever since. In 2015, China became Porsche’s largest single market globally. During peak sales periods, Chinese consumers even had to pay extra to buy a Porsche. However, since the significant growth of new energy vehicles in China in 2023, Porsche’s sales in the Chinese market have been under pressure, with the decline becoming increasingly larger in the past two years. Its electric vehicles are expensive, but their smart features are not as advanced as those of Chinese electric vehicles.
Very recently, Porsche China confirmed to the media that the company’s self-built charging network will gradually cease operation starting March 1st, 2026, closing a total of about 200 charging stations. In the meantime, Porsche centers in large cities of Zhengzhou and Guiyang lately closed down without warning – showrooms were emptied overnight, prompting car owners who were unwilling to accept their losses to call the police.
Source: CNA, December 26, 2025
https://www.cna.com.tw/news/acn/202512260226.aspx
U.S. Bans Imports of New Drone Models from DJI
Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, according to China’s Ministry of Commerce, the U.S. Federal Communications Commission (FCC) added all foreign-made drones and components, including those from China’s DJI, the world’s largest drone manufacturer, and China’s Autel Robotics, to its “Controlled List,” prohibiting the approval of new drone models for import or sale in the United States. The FCC determined that these foreign companies pose an unacceptable risk to U.S. national security.
China’s Ministry of Commerce issued a statement expressing its firm opposition, stating that the United States has repeatedly generalized the concept of national security and used state power to suppress companies from other countries, which is a typical practice of market distortion and unilateral bullying. Meanwhile Chinese Foreign Ministry also stated that it firmly opposes the U.S.’s overgeneralization of the concept of national security, its creation of discriminatory lists, and its unreasonable suppression of Chinese companies, and urged the U.S. to correct its erroneous practices – or China will resolutely take necessary measures to safeguard the legitimate rights and interests of Chinese companies.
Source: Lianhe Zaobao, December 23, 2025
https://www.zaobao.com.sg/news/china/story20251223-8007543
Leaked Audio Allegedly Reveals PLA Interferences With Taiwan’s Elections
Taiwanese national security authorities said that several audio recordings recently circulated online allegedly reveal admissions by officials of the People’s Liberation Army (PLA) regarding interference in Taiwan’s elections.
The recordings reportedly document discussions in 2018 between a PLA Strategic Support Force official surnamed Ding and Qi Zhongxiang, head of Beijing Womin High-Tech Co., Ltd.
According to the recordings, the PLA allocated approximately 20 million yuan (US$3 million) to its affiliated 56th Research Institute—publicly known as the Jiangnan Institute of Computing Technology—to purchase a “public opinion sentiment analysis system” from Womin. The system was allegedly intended to analyze, predict, and manipulate public opinion in Taiwan, with a particular focus on the 2018 Kaohsiung mayoral election.
In the first recording, Ding is heard saying that an initial 5 million yuan budget would be used to interfere in Taiwan’s 2018 local elections. If the operation proved successful, an additional 15 million yuan would be invested ahead of Taiwan’s 2020 presidential election to support more extensive election forecasting and influence efforts.
In the second recording, Ding emphasizes the importance of technological tools for controlling public opinion and describes the Kaohsiung mayoral race as strategically critical. He claims to have accurately predicted the election outcome, saying that while others believed Han Kuo-yu would lose, he believed Han would win—an assessment he said later proved correct.
In the third recording, Qi claims that his company had already monitored and controlled six million Facebook accounts in Taiwan, with plans to expand that number to ten million. Taiwan’s security agencies assess that these accounts were used to spread disinformation, inflame social divisions, and interfere with voting behavior, actions described by those involved as “contributing to national reunification.”
Source: Up Media, December 27, 2025
https://www.upmedia.mg/tw/investigation/political/248238
Shanghai’s Restrained Christmas Atmosphere Reflects Stricter Religious Control
Christmas Eve in Shanghai revealed a city navigating between commercial celebration and religious caution. While festive decorations adorned streets as marketing elements, religious observances faced increased scrutiny. As one of China’s most cosmopolitan cities and a popular destination for foreign tourists following expanded visa-free policies, Shanghai demonstrated relatively more openness toward Christmas compared to inland cities, yet the celebrations remained notably restrained.
At Xujiahui Cathedral, the main Catholic church in Shanghai’s diocese, authorities deployed additional police officers around churches to manage crowds during Christmas masses. Inside the cathedral, families attended services together, including young children, despite official regulations prohibiting minors under eighteen from participating in religious activities. This reflected citizens’ flexible approach to navigating religious restrictions.
Bishop Shen Bin of Shanghai, who also chairs China’s state-approved Catholic Bishops’ Conference, issued a Christmas pastoral letter emphasizing “strict religious governance” and “simplicity over extravagance.” The letter referenced a national religious initiative focusing on seven prohibitions regulating clergy behavior regarding clothing, food, housing, transportation, and social activities. This campaign, launched in October following criminal investigations into Shaolin Temple’s abbot, aims to implement comprehensive strict governance of religion and advance the “Sinicization” of religious practices.
Enforcement extended beyond churches. One resident reported being detained by police on Christmas Eve for dressing as Santa Claus and distributing apples to passersby, with officers deeming it “bizarre attire.” At the police station, numerous others in Santa costumes awaited processing.
The contrast between Shanghai and less developed regions was stark. Schools in Yunnan and Shanxi provinces issued notices discouraging Christmas celebrations, urging students and families to cultivate “correct worldviews” and “patriotic sentiments” rather than observing Western holidays. The geographic divide highlighted how religious and cultural policies intensify beyond China’s major metropolitan centers.
Sourced: Central News Agency (Taiwan), December 25, 2025
https://www.cna.com.tw/news/acn/202512250110.aspx