“To Build a Strong Military, the Armed Forces Must First Be Strong Politically”
People’s Daily republished an article from the People’s Liberation Army (PLA) Daily emphasizing the importance of building a politically strong military. The article quoted Xi Jinping, Chairman of the Central Military Commission (CMC), as stating that to build a strong military, the armed forces must first be strong politically, and that political strength is the most fundamental form of strength.
The article argued that political character is the essential attribute of the military, and that strengthening the armed forces must begin with strengthening them politically. It stressed that the Party’s absolute leadership over the military is the foundation of the armed forces and the core of building a strong military. It called for unwavering adherence to this principle, implement the CMC Chairman responsibility system, and resolutely follow the command of Chairman Xi, be accountable to Chairman Xi, and earn the trust of Chairman Xi.
It further called for cultivating comprehensive political capabilities, including political judgment, political understanding, and political execution. This involves analyzing and addressing issues from a political perspective, faithfully implementing decisions of the Party Central Committee, the CMC, and Xi Jinping, and integrating political requirements into all aspects of military preparedness, operations, and force management.
Source: People’s Daily, May 15, 2026
http://military.people.com.cn/n1/2026/0515/c1011-40720390.html
Xinhua: German Official Expresses Openness to Chinese Automakers Producing Vehicles in Saxony
Dirk Panter, Economy Minister of Germany’s Saxony state, said on May 11 that a more pragmatic approach is needed toward cooperation with Chinese automakers as Germany’s automotive industry undergoes transformation. He suggested introducing Chinese partners through joint ventures to participate in local manufacturing.
Saxony, a key automotive hub in eastern Germany, hosts production facilities for Volkswagen, BMW, and Porsche. Panter said joint ventures between Volkswagen and Chinese manufacturers could be a viable option and expressed hope that Chinese firms would establish production in the region.
He emphasized that cooperation could help preserve Germany’s industrial capacity during the transition, rather than allowing it to erode.
Panter also noted that China has become a leader in electric vehicles and battery technology, and that Chinese automakers have already begun local production in several European countries, a trend he said Germany cannot afford to ignore.
Source: Xinhua, May 13, 2026
https://www.news.cn/world/20260513/86b85f601b794d1d85db0a912077f859/c.html
China Promotes “Constructive Strategic Stability” as New Framework for U.S.–China Relations
On May 14, Xi Jinping met with visiting U.S. President Trump and stated that both sides agreed to establish a “constructive strategic stability relationship” as a new framework for U.S.–China relations. Xi said the concept would provide strategic guidance for bilateral ties over the next three years and beyond, and expressed confidence that it would be welcomed by both countries and the international community.
People’s Daily described the agreement as the most significant political consensus reached during the meeting, emphasizing its importance amid a complex and evolving international environment. It characterized the concept as a key step in redefining bilateral relations.
At a regular press briefing on May 18, Chinese Foreign Ministry spokesperson Guo Jiakun said China is willing to work with the United States to “continuously substantiate the connotation of this framework.” He stated that China aims to fully implement the consensus reached by the two leaders, strengthen dialogue, expand cooperation, properly manage differences and sensitive issues, and promote stable, healthy, and sustainable development of bilateral relations.
Sources:
1. People’s Daily, May 18, 2026
https://world.people.com.cn/n1/2026/0518/c1002-40721842.html
2. Xinhua, May 18, 2026
https://www.xinhuanet.com/20260518/b19e769dbcd34a0c806d81c7c6262048/c.html
China’s Hidden Non-Performing Loans May Reach US$3 Trillion
Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, as non-performing loans continue to accumulate in China’s banking system, more and more loans are being delayed when processed. Analysts estimate that the true non-performing loan ratio of Chinese banks is far higher than the officially announced 1.5 percent, possibly reaching 10 percent, which means that approximately US$3 trillion of debt that should have been classified as non-performing loans has not been included in the statistics. If calculated at 10 percent, it is equivalent to approximately 17 percent of China’s Gross Domestic Product (GDP).
A plastics business owner surnamed Hu defaulted on a US$730,000 bank loan, but the bank did not demand immediate repayment, instead allowing him to postpone payment. This allowed him to continue operating while preventing the bank from adding another overdue loan to its books. Similar situations are unfolding across China.
Under current Chinese banking regulations, loans overdue for more than 90 days and unable to be repaid in full should be classified as non-performing loans. However, economists estimate that approximately 40 percent of loans in China have entered into or meet some form of grace period, meaning banks are instructed not to pursue collection or recognize losses. The main reason for the surge in bad debts is that a large amount of loans have flowed to companies whose revenue is insufficient to pay interest.
Source: Lianhe Zaobao, May 13, 2026
https://www.zaobao.com.sg/finance/china/story20260513-9040886
“Patriotic” Chinese Citizen Calls Beijing Police to Request Arrest of Trump
A report describes an incident in which a man from Inner Mongolia, during Trump’s visit to China, called a Beijing police hotline to “report a case,” requesting the arrest of the U.S. president. According to the account, the caller appeared serious and presented a list of reasons, including “selling arms to Taiwan that endangered China’s national security, launching trade and tariff war that harmed China’s economy, and imposing technology restrictions that hindered China’s development.”
The report notes that the caller did not appear intoxicated and delivered his claims in a structured manner, outlining what he described as legal grounds, which align with common themes in Chinese Communist Party’s state narratives about the United States.
The response from the Beijing police operator was also highlighted. The operator reportedly maintained a calm and professional tone, replying: “Received. Recorded. Will dispatch police right away.”
Source: Aboluo, May 19, 2026
https://www.aboluowang.com/2026/0519/2385311.html
UDN: China’s Domestic Auto Market Declined for the Seventh Consecutive Month in April
United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that, Domestic car demand in China remains weak. According to data released by the China Passenger Car Association (CPCA), domestic car sales in China fell by 21.6 percent year-over-year in April, dropping to 1.4 million vehicles, marking the seventh consecutive month of decline.
Sales of gasoline-powered vehicles fell short of expectations due to high oil prices, and demand for plug-in hybrid electric vehicles was also weak. Data shows that electric vehicles and plug-in hybrid electric vehicles account for 60.6 percent of total domestic vehicle sales in mainland China, but sales fell by 6.8 percent year-over-year, and the downward trend has continued for the fourth consecutive month.
In contrast, China’s automobile exports have performed strongly. The Iran war has driven up global fuel prices and boosted demand for electric vehicles in overseas markets. This is particularly evident in BYD, the world’s largest electric vehicle manufacturer. Despite continued strong overseas shipments, BYD’s global sales decline in April marked the eighth consecutive month.
Source: UDN, May 11, 2026
https://money.udn.com/money/story/5603/9495112
Pulitzer-Winning AP Investigation Raises Questions Over U.S. Tech Firms’ Role in China’s Surveillance and Persecution
On May 4, the 2026 Pulitzer Prize for International Reporting was awarded to a team from the Associated Press for a seven-part investigative series examining the global expansion of surveillance technologies linked to China. The three-year investigation spanned three continents and drew on extensive sources, including leaked emails and databases, extensive corporate and government documents, procurement records, public filings, and interviews with over 100 individuals.
The reporting highlighted the involvement of major global technology firms, including IBM, Dell, Hewlett-Packard, Oracle, Cisco Systems, Seagate Technology, and NVIDIA. One example cited was collaboration between a Chinese defense contractor and IBM in developing the “Golden Shield Project,” a nationwide surveillance system used for internet monitoring and social control. Other cases included Dell’s marketing of AI-enabled tools with features such as “ethnicity recognition,” and Thermo Fisher Scientific promoting DNA testing kits tailored to specific ethnic groups.
The investigation found that while companies often stated they were not responsible for how their products were used, marketing materials sometimes directly referenced law enforcement applications tied to the communist party’s social control agenda, including terms such as “stability maintenance,” “key individuals,” and projects like the Golden Shield and “Sharp Eyes” systems. The reporting also noted that cooperation extended beyond technology to include training exchanges, with some Chinese law enforcement officials infamous for suppressing human rights reportedly participating in overseas programs.
The reporting has drawn renewed attention to legal and human rights concerns, including the case known as the “Falun Gong practitioners’ lawsuit against Cisco Systems,” in which plaintiffs allege the company helped develop surveillance systems used for persecution. The case has received significant attention in U.S. legal and human rights circles, with proceedings reaching the Supreme Court of the United States. The AP investigation suggests that such involvement was not limited to a single company but reflects a broader pattern of corporate participation in surveillance- and persecution-related projects.
Source: Epoch Times, May 8, 2026
https://www.epochtimes.com/gb/26/5/7/n14759007.htm
China and Turkey Explore Local Currency Trade to Reduce Dollar Dependence
China has proposed that Turkey make greater use of local currencies — the Turkish lira and the Chinese yuan — in bilateral trade, according to a report by Turkish newspaper Yeni Akit.
The proposal emerged during a joint conference titled “Connecting Markets, Creating Opportunities: Trade and Financial Cooperation,” co-organized by the Industrial and Commercial Bank of China (ICBC) and the Aegean Exporters’ Association of Turkey. Participants discussed the broader use of local currencies as an alternative to the US dollar in trade settlements, alongside topics such as expanding Turkey-China trade volumes, developing new areas of cooperation, and improving financing access for Turkish exporters.
Muhammet Öztürk, coordinator of the Aegean Exporters’ Association, noted that the organization represents more than 8,000 member companies from the agricultural and industrial sectors. He said Turkey’s total exports are expected to reach $18.5 billion by the end of 2025.
Öztürk also highlighted strong recent momentum in Turkey-China trade: Turkish exports to China grew 35 percent in the first four months of this year, reaching $1.2 billion, while exports from Aegean region companies rose 24 percent to $209 million over the same period.
The push to settle trade in local currencies reflects a broader trend among countries seeking to reduce reliance on the US dollar in international commerce. For Turkey, whose lira has faced prolonged depreciation pressure, the practical implications of such an arrangement remain to be seen, though the talks signal a deepening of economic ties between Ankara and Beijing.
Source: Sputnik News, May 15, 2026
https://sputniknews.cn/20260515/1071297374.html