China Coast Guard Patrolled Diaoyu Islands for 357 Days in 2025
On January 30, Zhang Jianming, Director of the China Coast Guard, briefed the public on maritime rights protection and law-enforcement operations carried out over the five years since the implementation of the “China Coast Guard Law.” Zhang said that during this period, the China Coast Guard deployed vessels more than 550,000 times and aircraft over 6,000 times to conduct maritime rights-protection missions.
According to Zhang, the Coast Guard organized 134 patrols in the territorial waters of the Diaoyu Islands (also known as “Senkaku Islands” which both China and Japan claims sovereignty over), with patrol days around the islands reaching 357 in 2025. In addition, the Coast Guard has carried out regular rights-protection patrols in the East China Sea, South China Sea, and Yellow Sea, conducted law-enforcement patrols in waters surrounding Taiwan and its affiliated islands, and enforced control and management in the territorial waters and surrounding areas of Huangyan Island.
Zhang said the China Coast Guard has continuously refined its operational strategies to effectively respond to infringement activities by external parties. He added that the force has achieved new breakthroughs in integrated sea-and-air patrols around the Diaoyu Islands, shaped a new approach to maritime rights protection, and established a new framework for managing and controlling the Taiwan Strait in accordance with the one-China principle and the law.
Source: People’s Daily, January 30, 2026
http://society.people.com.cn/n1/2026/0130/c1008-40656339.html
CNA: 2025 Foreign Investment in China Continued Decline
Primary Taiwanese news agency Central News Agency (CNA) recently reported that China continues to face declining foreign investment. According to official data just released, the actual amount of foreign investment utilized in 2025 is RMB 747.69 billion (around US$107.61 billion), a decrease of 9.5 percent year-over-year, continuing the downward trend.
According to China’s Ministry of Commerce, in 2025, 70,392 new foreign-invested enterprises were established in China, an increase of 19.1 percent year-over-year. However, the actual use of foreign capital decrease 9.5 percent. In 2024, China’s actual use of foreign capital was RMB 826.25 billion yuan (around US$118.91 billion), which was already a decrease of 27.1% compared to the previous year.
By sector, the manufacturing sector actually utilized RMB 185.51 billion (around US$26.70 billion) in foreign investment, while the service sector utilized RMB 545.12 billion (around US$78.45 billion). High-tech industries actually utilized RMB 241.77 billion (around US$34.80 billion) in foreign investment.
In terms of growth by origin, actual investment in China from Switzerland, the United Arab Emirates, and the United Kingdom grew by 66.8 percent, 27.3 percent, and 15.9 percent, respectively.
Source: CNA, January 27, 2026
https://www.cna.com.tw/news/acn/202601270033.aspx
The Paper: Luoyang Molybdenum Swiftly Acquires Four Gold Mines in Brazil
Well-known new Chinese news site The Paper recently reported that, in less than a month, Luoyang Molybdenum Group (603993.SH/03993.HK), a Chinese domestic mining giant, has swiftly acquired four producing gold mines in Brazil.
Luoyang Molybdenum announced that, with the approval of its board, its controlling subsidiary, CMOC Limited, acquired 100 percent equity interests in three gold mining assets in Brazil from Canadian mining company Equinox Gold (TSX: EQX, NYSE-A: EQX), including the Aurizona Gold Mine, the RDM Gold Mine, and the Bahia Complex, for a total US$1.015 billion. The transaction is an all- cash acquisition.
The gold mine assets involved in the transaction comprise a total gold resource of 5.013 million ounces, with an average grade of 1.88 g/t; and gold reserves of 3.873 million ounces, with an average grade of 1.45 g/t. The acquisition will immediately contribute to the company’s production and profits, with a short-expected return on investment. The estimated annualized gold production in 2026 is 6-8 tons.
This acquisition marks another significant strategic move by Luoyang Molybdenum, following its acquisition of the Cangrejos Gold Mine in Ecuador for RMB 3 billion yuan (around US$ 431.75 million) in April 2025. It is expected to start production in 2028, with a designed annual output of 11.5 tons.
Source: The Paper, January 25, 2026
https://www.thepaper.cn/newsDetail_forward_32462402
PLA Daily Commentary Casts Zhang Youxia as a Political Enemy and Calls on the Military to Pledge Loyalty to Xi Jinping
Following Beijing’s announcement on January 24 of the downfall of Central Military Commission (CMC) Vice Chairman Zhang Youxia and Chief of Staff Liu Zhenli, the Chinese military remained notably silent in publicly expressing support for the decision.
On January 31, PLA Daily published a commentary on the case. While framed on the surface as an anti-corruption article, the piece was laden with strong political messaging. Below are excerpts from People’s Daily, which republished the commentary, along with key interpretations.
The article characterizes the cases of Zhang and Liu not merely as corruption cases, but as political cases, signaling that they are viewed as antagonistic enemies of the Chinese Communist Party (CCP), rather than as participants in a non-antagonistic internal disciplinary violation, which corruption cases typically represent. It states:
“This decision to place Zhang Youxia and Liu Zhenli under case filing, review, and investigation is … a resolute struggle to eliminate major political hidden dangers.”
“They will ultimately be forever nailed to the pillar of shame in history.”
Editor’s Note: “Nailed to the pillar of shame in history” (钉在历史的耻辱柱上) is a particularly severe CCP expression, typically reserved for figures deemed politically hostile or fundamentally opposed to the Party.
The commentary also signals a broader purge of individuals connected to Zhang and Liu:
“Resolutely investigating and punishing Zhang Youxia and Liu Zhenli is of great significance for pushing the people’s armed forces to eradicate the root causes of spreading toxins and to achieve renewal and rebirth.”
Editor’s Note: “Spreading toxins” (流毒) is a CCP term commonly used to describe the lingering influence of a disgraced leader and the networks or factions associated with them.
The article further warns military personnel:
“As for those who show no sense of awe and test the law with their own actions, whoever is involved will be investigated, and however deep the entanglements run will be thoroughly unearthed. Party members and cadres in the military, especially leading cadres, must always harbor a sense of awe, abandon any illusion of luck, and not act without restraint or fail to know when to stop. They must keep firmly in mind the principle that ‘hands must not reach out—once you do, you will surely be caught,’ take the lead in observing discipline and the law, and exercise strict self-discipline.”
The commentary concludes by placing strong emphasis on ideological and political loyalty to Xi Jinping:
“The entire military must adhere to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as its guide, thoroughly implement Xi Jinping Thought on Strengthening the Military, fully carry out the political strategy for building the military in the new era, uphold the Party’s absolute leadership over the people’s armed forces, deeply grasp the decisive significance of the ‘Two Establishes,’ strengthen the ‘Four Consciousnesses,’ bolster the ‘Four Confidences,’ and achieve the ‘Two Upholds,’ implement the responsibility system of the CMC Chairman, and resolutely obey Chairman Xi’s command, be responsible to Chairman Xi, and reassure Chairman Xi.”
Source: People’s Daily, January 31, 2026
http://military.people.com.cn/n1/2026/0131/c1011-40656924.html
Panama’s Supreme Court Rules Ports Contract Unconstitutional, Beijing Responds
Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that Panama’s Supreme Court has ruled unconstitutional the operation of two Panamanian ports by CK Hutchison Holdings, a Hong Kong-based international conglomerate company operating some 43 overseas ports. CK Hutchison’s share price plummeted following the ruling.
Following US President Trump’s earlier claims this year that the Panama Canal was under Chinese control and his vow to reclaim it, ports Panama Canal are at the center of geopolitical competition. CK Hutchison Holdings later announced it would sell its 43 overseas port operations, including the two Panama Canal ports, to an international consortium comprised of U.S. asset management giant BlackRock and Mediterranean Shipping Company (MSC), owned by the Aponte family of Italian billionaires, for US$22.8 billion. This deal sparked discontent in Beijing, and Chinese regulators subsequently launched an investigation. CK Hutchison later announced its intention to invite Chinese state-owned shipping giant China COSCO Shipping to join the consortium.
With respect to the rulings by the Panamanian Supreme Court, CK Hutchison has limited options: it can file a motion for clarification of the Supreme Court’s decision, but cannot appeal. The company may also seek international arbitration. The Chinese Foreign Ministry criticized these Panama Supreme Court rulings as contrary to the laws governing Panama’s approval of the relevant franchise rights, stating that Beijing will “take all necessary measures to resolutely safeguard the rights and interests of Chinese enterprises.”
Source: Lianhe Zaobao, January 30, 2026
https://www.zaobao.com.sg/news/china/story20260130-8232674
Xinhua: Europe Seeks to Showcase Independent Capabilities in NATO Exercises
NATO has launched two major military exercises in Europe—”Operation Arctic Endurance 2026” in the Arctic and “Steadfast Dart 2026” in Central and Western Europe—but their scale, organization, and strategic messaging differ markedly from past routine drills. Rather than serving solely as tests of defensive readiness, these exercises appear shaped by the broader geopolitical environment, particularly growing U.S.–European strategic divergences and shifting priorities within the alliance.
For the first time, the Arctic-focused exercise, initiated by Denmark in Greenland, and the large-scale Steadfast Dart maneuver, led by Germany with participation from around 11 allied nations, reflect a stronger European leadership role and a reduced U.S. presence. According to the article, this signals Europe’s effort to demonstrate its capacity to manage regional security independently, marking a notable departure from NATO’s traditionally U.S.-dominated command structure.
However, Xinhua underscores significant underlying problems. Both exercises were reportedly organized in haste, marked by last-minute planning, equipment incompatibilities, and lower-than-expected participation from some members. Defense experts cited in the article characterize the drills as more symbolic than operationally substantive. These shortcomings, combined with divergent strategic objectives among European allies and constrained resources, point to deeper strains in NATO’s cohesion, interoperability, and overall ability to respond effectively to a major crisis.
Source: Xinhua, January 30, 2029
https://www.news.cn/milpro/20260130/f8323e59166a4dffb6500a11244b1ae5/c.html
Unusual Silence in PLA Follows Arrest of Zhang Youxia and Liu Zhenli
As of January 29, more than five days have passed since Zhang Youxia and Liu Zhenli were brought down, the Chinese military as a whole has issued no public statement of support yet. By contrast, when former Central Military Commission (CMC) vice chairmen Xu Caihou and Guo Boxiong fell from power in 2014 and 2015, the military swiftly declared its “support for the central leadership’s decision” the following day.
Multiple sources close to the Chinese military say that officers and soldiers privately questioned whether detaining Zhang and Liu without publicly releasing evidence amounted to a political purge. This has seriously shaken confidence within the ranks in top-level decision-making and sparked strong discontent among personnel across several theater commands.
Military insiders further disclosed that a number of directives issued by the CMC have encountered widespread resistance at the grassroots level, leaving orders effectively unenforced. Among rank-and-file troops, some have even been heard referring to Xi Jinping as “Baozi,” a nickname commonly used by the public to mock him.
{Editor’s Note: Senior officials may fear that a large-scale purge of officers with close ties to Zhang and Liu is inevitable. As a result, even those who publicly express support may not avoid being targeted themselves.}
Source: NTDTV, January 30, 2026
https://www.ntdtv.com/gb/2026/01/29/a104061477.html
China Offers integrated RMB and foreign-currency cash Pool for multinational corporations
Recently, the People’s Bank of China and the State Administration of Foreign Exchange issued a notice expanding the integrated RMB and foreign-currency cash pooling scheme for multinational corporations from select pilot regions to nationwide implementation.
Previously, RMB and foreign-currency cash pools were regulated under separate systems, creating currency barriers and redundant accounts. Multinational companies often had to file complex applications and wait days—or even longer—to convert funds between RMB and foreign currencies.
Under the new policy, Chinese subsidiaries can independently manage cross-border funds within quotas approved by the People’s Bank of China, significantly easing domestic fund allocation constraints. This reform allows China operations to play a more active role in regional and cross-border treasury management, risk control, and strategic capital allocation, shifting them from a traditional “cost center” to an emerging decision-making hub.
Source: People’s Daily, January 29, 2026
https://world.people.com.cn/n1/2026/0129/c1002-40654876.html