China’s Patient Capital and Full Supply Chain Strategy in New Technology Investment
At the Data Fusion 2026 conference held in Moscow on April 8–9, Liu Zhiqiang, Executive President of Digital International Limited, outlined two defining characteristics of China’s approach to investing in emerging technologies.
The first is what Liu described as “patient capital.” He noted that China has sustained large-scale investments in critical sectors over periods of up to a decade, even when returns remained low. The semiconductor industry serves as a prime example, where the entire Chinese economy has maintained consistent, long-term commitment to the sector.
The second characteristic, which Liu emphasized as uniquely Chinese in its investment logic, is the focus on full industrial chain investment rather than backing isolated technologies. Rather than placing bets on individual technological breakthroughs, China invests across the entire supply chain ecosystem surrounding a given industry.
Liu illustrated this with an example from his own company, which operates in the robotics sector in the Greater Bay Area. He described a phenomenon known as the “45-minute supply chain circle,” where any robotics company in the region can source over 95% of the components it needs within a 45-minute radius.
“Investment in an emerging industry is not just about specific technologies,” Liu said, “but about building out the entire supply chain and industrial ecosystem.”
Together, these two traits — the willingness to absorb prolonged low returns and the commitment to cultivating complete industrial ecosystems — reflect a distinctly Chinese model of strategic technology investment that sets it apart from approaches seen elsewhere in the world.
Source: Sputnik News, April 9, 2026
https://sputniknews.cn/20260409/1070696062.html
Air China Suspends Beijing–Pyongyang Flights Again After Brief Resumption
Air China has once again suspended its direct flight route between Beijing and Pyongyang, the capital of North Korea, after briefly resuming operations for a single flight.
The route, which had been suspended for six years, resumed service on March 30. However, the inaugural flight carried only slightly more than 10 passengers. The service had been scheduled to operate once weekly, with ticket prices starting at 2,040 yuan (about US$300).
According to Yonhap News Agency, Air China has not provided a specific reason for the suspension or a timeline for resumption. The airline stated that the round-trip flight scheduled for April 6 has been canceled, while flights planned for April 13, 20, and 27 remain uncertain. Although May flights have appeared in the booking system, tickets are currently unavailable. April flights, initially listed as unavailable, have now been confirmed as canceled, and the resumption timeline remains unclear.
Some analysts suggest that, amid rising global oil prices, Air China may find it difficult to sustain the Beijing–Pyongyang route given limited demand. The earlier resumption was seen largely as symbolic, and the renewed suspension highlights the challenges of maintaining the service.
Source: Lianhe Zaobao, April 4, 2026
https://www.zaobao.com.sg/news/china/story20260404-8841320
China’s Metro Boom Era Is Coming to an End
China’s rapid subway expansion era is drawing to a close, as local governments face mounting financial pressures and demographic headwinds — even in prosperous coastal cities.
A widely circulated article from the WeChat account “Urban Finance” highlights how several major cities have recently seen subway plans rejected or scaled back. Ningbo’s development authority stated the city lacks the ridership levels needed to qualify for a fourth phase of rail construction. Shenzhen’s proposed Metro Line 18 failed to receive national approval. And Guangzhou’s fourth phase of subway planning may be approved for only about 100 kilometers fewer than originally submitted — a reduction of over 60 percent.
The article notes that approval difficulties are no longer limited to smaller cities; even high-tier urban centers are finding it harder to get new lines greenlit. Behind the tightening standards lie two key forces: the collapse of the real estate sector has severely squeezed local government revenues and worsened debt problems, while slowing population growth has undermined the ridership case for new lines in many cities.
The financial toll is already visible. Shenzhen Metro, which intervened to bail out property developer Vanke Group, reported a loss of 33.46 billion yuan (approximately $4.6 billion USD) by the end of 2024 — more than it earned over the previous five years combined.
The broader fiscal picture reinforces the challenge. National land sale revenues fell to 4.15 trillion yuan (approximately $571 billion USD) in 2024, less than half the peak of 8.7 trillion yuan (approximately $1.2 trillion USD) reached in 2021.
China currently has over 40 cities with metro systems, including Shanghai and Beijing, both of which have surpassed 900 kilometers of operating lines. But the article argues the era of cities racing to build sprawling networks is effectively over. While new lines will continue opening in the coming decade, the spectacle of cities competing to submit hundred-kilometer expansion plans is unlikely to return.
Source: Central News Agency (Taiwan), April 13, 2026
https://www.cna.com.tw/news/acn/202604130173.aspx
China’s Middle East Investments Face Growing Risks Amid Regional Conflict
As tensions surrounding Iran continue to simmer, China’s financial exposure in the Middle East is drawing increased scrutiny. U.S. President Donald Trump has claimed that China played a role in bringing Iran to the ceasefire negotiating table — a claim that has prompted analysts to take a closer look at Beijing’s strategic interests in the region.
According to research conducted by AidData, an institute based at the College of William & Mary, a public university in Virginia, China faces significant financial risk stemming from its infrastructure investments across six Middle Eastern nations. The institute examined financing provided by Chinese state-owned banks and other entities to infrastructure projects in six countries, including Qatar, Oman, Iran, and Israel.
The findings reveal a concerning picture: military strikes carried out by the United States, Israel, and Iran have already damaged three Chinese-financed facilities, while another 15 face substantial risk. In total, Chinese financing across these affected projects amounts to approximately $6.5 billion.
Against this backdrop, Trump’s assertion that China helped facilitate Iran’s participation in ceasefire talks has taken on added significance. Several experts believe China’s involvement in the diplomatic process is driven, at least in part, by a desire to prevent its geopolitical risks in the Middle East from escalating further. With billions of dollars tied up in regional infrastructure, Beijing has a clear material incentive to encourage stability and bring the parties to the negotiating table.
The situation underscores a broader dynamic: as China deepens its economic footprint in volatile regions through initiatives like the Belt and Road, it increasingly finds itself drawn into the geopolitical tensions those regions carry.
Source: NHK, April 14, 2026
https://www3.nhk.or.jp/nhkworld/zh/news/20260414_ML07/
Suspected Chinese Underwater Device Discovered in Indonesia’s Lombok Strait
On April 6, an Indonesian fisherman discovered a strange, unidentified device while fishing near the entrance of the strategically important Lombok Strait. He brought it ashore and promptly reported it to the authorities.
Initial inspection indicated that the device is cylindrical, measuring approximately 3.7 meters in length and 70 centimeters in diameter, and equipped with tail fins. Notably, it bears the marking “CSIC” along with other simplified Chinese characters. CSIC refers to China Shipbuilding Industry Corporation, a major state-owned enterprise involved in shipbuilding and defense technology development.
The Indonesian Navy stated that a team of experts will conduct a detailed technical assessment to determine the device’s origin, function, and any data it may contain.
The Lombok Strait, located between the Pacific and Indian Oceans, is one of the few deep-water channels suitable for submarine transit during military operations and is closely monitored by the United States and Australia. The discovery of this suspected Chinese unmanned underwater vehicle near the strait has raised concerns within the Indonesian government and the international community, amid fears that China may be conducting intelligence-gathering activities in this strategically significant area.
Source: Epoch Times, April 8, 2026
https://www.epochtimes.com/gb/26/4/8/n14737087.htm
China Enacts Law to Counter Foreign Extraterritorial Jurisdiction
China officially implemented the “Regulations Against Foreign Improper Extraterritorial Jurisdiction” today, establishing a legal framework to counter what Beijing considers overreaching foreign sanctions. The move comes just ahead of an anticipated summit between President Xi Jinping and U.S. President Trump, scheduled for May 14–15 in Beijing, and is widely seen as a pointed warning signal.
Signed by Premier Li Qiang and published by Xinhua on April 13, the regulations take effect immediately upon publication. The stated aim is to safeguard China’s national sovereignty, security, and development interests, protect the lawful rights of Chinese citizens and organizations, and uphold an international order grounded in international law.
The regulations, comprising 20 articles, establish three main pillars. First, they define the scope of application: when a foreign government violates international law and basic norms of international relations through improper extraterritorial measures that harm China’s interests, Beijing reserves the right to respond — including by asserting its own extraterritorial jurisdiction over conduct with an appropriate connection to China.
Second, the regulations create a system to identify, block, and counter such foreign measures. No organization or individual may execute or assist in enforcing foreign extraterritorial measures against China. A “malicious entity list” will be established targeting foreign organizations and individuals who promote or participate in such measures, along with a prohibition order system and corresponding legal liabilities.
Third, the regulations strengthen support mechanisms, allowing Chinese citizens and organizations to sue parties whose enforcement of foreign measures infringes on their lawful rights. Industry associations are also called upon to provide guidance to members.
Countermeasures available to the Chinese government include visa denials, entry bans, deportation, asset freezes, restrictions on transactions and investment, import and export prohibitions, and fines, among other steps.
Source: Central News Agency (Taiwan), April 13, 2026
https://www.cna.com.tw/news/acn/202604130309.aspx
KMT’s Shift Away from the U.S. and Toward the CCP Fails to Gain Respect for Taiwan
Taiwan’s Kuomintang (KMT) has taken steps that appear to distance itself from the United States while engaging more closely with the Chinese Communist Party (CCP), highlighted by its Chairwoman Cheng Li-wun’s visit to mainland China from April 7 to 12.
Despite criticism surrounding the trip, Cheng arrived in Shanghai on April 7 and later met CCP leader Xi Jinping at the Great Hall of the People in Beijing on April 10. During the meeting, she stated that the Taiwan Strait “should not become a stage for external intervention,” a remark that has drawn attention amid ongoing U.S.–Taiwan engagement and internal political divisions within Taiwan.
At the same time, KMT legislators have been seen as moving away from U.S.-backed defense initiatives. They have delayed the passage of a special defense budget bill intended to support U.S. arms purchases. On April 7, U.S. Representative Nunn led a Republican Study Committee national security delegation to Taiwan, followed by a meeting on April 8 with Taiwan President Lai Ching-te (from the Democratic Progressive Party (DPP)), during which U.S. Senator Banks urged Taiwan’s legislature to pass the bill. However, when cross-party consultations to discuss the special bill were scheduled in the Legislative Yuan on April 9, KMT lawmakers were absent, leaving only six DPP legislators and one Taiwan People’s Party (TPP) member present, causing the meeting to collapse due to lack of quorum. Some KMT legislators had also arranged travel plans, further delaying deliberations.
However, the KMT’s outreach did not appear to yield reciprocal recognition from Beijing. During the Xi–Cheng meeting, Xi spoke first, followed by Cheng. Before Cheng had completed even one-third of her remarks, Taiwanese reporters and photographers were asked to leave, the live broadcast was cut, and the remainder of the meeting proceeded behind closed doors.
Later that day, Cheng described the talks as “very successful” at a press conference, stating that Xi had responded positively and indicated that “everything can be discussed.” She also claimed that her proposals—including Taiwan’s participation in the World Health Assembly (WHA) and accession to trade frameworks such as the CPTPP—would be “fully and actively studied and facilitated” by Beijing. However, when asked for specifics or any written agreement, Cheng said she had only taken personal notes and referred reporters to official coverage by Xinhua News Agency. Interestingly, subsequent Xinhua reports did not mention any of the proposals or commitments she described.
Source: Aboluo, April 12, 2026
https://www.aboluowang.com/2026/0412/2371227.html
Japan Downgrades Its Relationship with China in 2026 Diplomatic Bluebook
Japan’s 2026 Diplomatic Bluebook, presented by Foreign Minister Toshimitsu Motegi, downgraded its description of China from “the most important bilateral relationship” in 2025 to an “important neighboring country.” The shift reflects a deterioration in China–Japan relations, particularly following remarks by Prime Minister Sanae Takaichi in parliament regarding a potential Taiwan contingency. The report notes that since November, China has intensified unilateral criticism and coercive measures against Japan.
The Bluebook cites examples of China’s coercive actions, including radar illumination of Japanese Self-Defense Force aircraft by Chinese military planes and export controls on dual-use goods to Japan. Despite these tensions, Japan states that it remains open to dialogue and has not closed the door to engagement with China.
The report maintains a positive assessment of relations with South Korea, describing it as an “an important neighboring country with which Japan continues to cooperate as a partner.”
It also highlights key regional security concerns, including rising tensions in the Taiwan Strait, North Korea’s nuclear and missile programs, and expanding military cooperation between Russia and North Korea. Japan emphasizes strengthening cooperation through the U.S.–Japan alliance and with partners such as the G7, Australia, India, and South Korea.
Source: Kyodo News, April 10, 2026
https://china.kyodonews.net/articles/-/9014