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Taiwan Prosecutors Indict Legislator Kao Chin Su-mei Over Alleged CCP Funding and Influence Operations

Taiwanese prosecutors have indicted independent legislator Kao Chin Su-mei and three associates, accusing them of receiving approximately NT$170 million (US$5.3 million) in Chinese Communist Party (CCP)-linked funding to establish influence networks in Taiwan and shape legislative activities in accordance with Beijing’s directives. Prosecutors are seeking a 14-year prison sentence for Kao.

The Taiwan High Prosecutors Office announced the indictments on Nov. 6, charging the four with violating the National Security Act by developing an organization on behalf of Chinese government agencies and accepting bribes in connection with their official duties.

Prosecutors allege that between 2005 and 2016, the group consolidated Kao’s election and legislative teams into an organization that coordinated political activities and outreach to Indigenous communities. Funds were allegedly transferred into Taiwan through both publicly acknowledged donations for tribal development and covert channels involving relatives’ and associates’ bank accounts.

Kao is accused of following Beijing’s instructions on legislative matters, including opposing arms purchases, organizing a press conference against Japan, questioning Japan’s representative office over budget issues, and supporting revisions to Taiwan’s curriculum guidelines. Prosecutors allege that the funding supported her election campaigns and constituency operations in exchange for specific actions in the legislature.

Prosecutors are seeking 15 years in prison for aide Chang Chun-chieh, who is also accused of arranging political influence training in China and attempting to expand Beijing’s influence in Indigenous communities. Two other associates reportedly confessed during the investigation and returned their alleged criminal proceeds.

Kao has said she will present evidence to defend her innocence. The allegations remain subject to judicial determination.

Source: Central News Agency (Taiwan), November 6, 2026
https://www.cna.com.tw/news/asoc/202611060104.aspx

Papua New Guinea Moves to Close Taiwan Representative Office; Beijing Welcomes Decision and Offers to Buy More LNG

Papua New Guinea (PNG) has renewed its efforts to close Taiwan’s representative office in its capital, Port Moresby, prompting Taiwan to withdraw its personnel, end technical assistance programs, and suspend liquefied natural gas (LNG) purchases from the country. Beijing welcomed the move and expressed willingness to increase its LNG imports from PNG.

In July, PNG Foreign Minister Justin Tkatchenko announced that his government had reaffirmed its “One China” policy and would close Taiwan’s representative office. Taiwan protested the unilateral decision and halted spot LNG purchases from PNG within a week. The U.S. State Department expressed deep concern, calling the move another example of Beijing’s global intimidation campaign against Taiwan and its supporters.

Despite the announcement, Taiwan appointed a new representative in September, and the office continued operating as Taipei sought support from like-minded countries to preserve its diplomatic presence.

On Nov. 6, Taiwan’s Foreign Ministry said PNG had again demanded that the office’s personnel leave within a specified timeframe and moved forward with plans to shut it down. Taiwan announced that it would immediately withdraw its staff and terminate technical and medical missions, scholarships, and personnel-training programs.

Taiwan had planned to purchase approximately 500,000 metric tons of PNG LNG in the first half of this year. Its purchases account for roughly one-third of PNG’s total LNG exports, making the suspension potentially significant for the country’s export revenues and foreign-exchange earnings.

On Nov. 9, Chinese Foreign Ministry spokesperson Guo Jiakun praised PNG’s adherence to the “One China” principle and said Beijing was willing to expand LNG imports from the country and deepen bilateral economic cooperation.

Sources:
1. Lianhe Zaobao, November 7, 2026
https://www.zaobao.com.sg/news/china/story20261107-9962251
2. Xinhua, November 9, 2026
https://www.xinhuanet.com/20261109/db6ee4309ac84abab9c586f4b9681808/c.html

Germany’s “Hedging” Diplomacy Faces a Credibility Test

In late October, Germany’s president and chancellor traveled to Asia at the same time but headed in different directions. President Frank-Walter Steinmeier visited China, beginning in Anhui province with a tour of Volkswagen’s research center in Hefei, while Chancellor Friedrich Merz visited Singapore, Japan and South Korea to deepen economic, technological and security cooperation.

The Paper published an article arguing the two trips reflect a single strategic anxiety in Berlin: it wants to keep sharing in the benefits of cooperation with China while reducing dependence by broadening its network of partners, an approach it calls “German-style hedging.”

The article stresses that the two trips do not signal two separate China policies. The President largely performs a representative role, while the federal government sets policy. Steinmeier himself said at Peking University that Germany does not seek decoupling, while also calling for a fix to trade imbalances.

China, the piece argues, is no longer merely a buyer of German goods but also a competitor, a supply chain partner and an innovation hub. Volkswagen, for example, now develops technology in China and plans to use it in other markets. German statistics show bilateral goods trade reached 251.8 billion euros in 2025, making China Germany’s largest trading partner again.

Diplomacy, the author contends, cannot substitute for industrial competitiveness, and protectionism may weaken the urgency to improve products. Merz also acknowledged that Singapore, Japan and South Korea voiced strong concern about possible protectionism in the EU’s Industrial Accelerator Act, exposing a tension in Berlin’s commitment to open trade.

Finally, the article warns that unclear policy boundaries create uncertainty for companies and erode Germany’s credibility. It concludes that hedging works only if it strengthens industrial capability, stabilizes cooperation and makes Germany’s commitment to openness believable.

The author is a researcher at the Institute of National Governance, Huazhong University of Science and Technology.

Source: The Paper, November 6, 2026
https://www.thepaper.cn/newsDetail_forward_34418761

Huawei Expands Its HarmonyOS PC Ecosystem With First Desktop Launch and Push Into Enterprise Market

HarmonyOS is Huawei’s homegrown operating system and a key part of China’s broader effort to build a domestically controlled technology ecosystem and reduce reliance on Western, particularly U.S.-developed, operating systems and software. The Chinese government has been aggressively replacing Windows-based systems with domestic alternatives in government offices as part of its push for technological self-reliance.

According to People’s Daily, Huawei has launched its first HarmonyOS-powered desktop computer, the Qingyun HM650 series, at a recent HarmonyOS Office Industry Summit. Alongside the new desktop, Huawei announced an upgraded enterprise operating system, HarmonyOS Enterprise Edition, and the second version of its Qingyun Hongtu partner program. Together, these initiatives are intended to expand Huawei’s proprietary operating system across government and enterprise workplaces.

Zhu Dongdong, President of Huawei’s Tablet and PC product line, said HarmonyOS computers have shipped more than 1 million units since their launch in 2025. The HM650 series is designed for fixed office workstations and features a 10-core, 20-thread Kirin X90 processor running HarmonyOS V1.0. It supports professional applications including ZWSOFT CAD, GstarCAD, and ZW3D. Huawei’s Xiaoyi Work assistant can also help users with document processing, presentation creation, and data analysis.

Huawei reported that the HarmonyOS PC ecosystem now includes more than 21,000 independent applications and has been deployed at scale across 13 industries.

Under the upgraded Qingyun Hongtu Partner Program 2.0, Huawei will provide hardware and operating system support through a “HarmonyOS Inside” model, allowing partner manufacturers to design and customize computers for specific industry needs. Huawei said its HarmonyOS motherboard cooperation program is ready, with the first partner-built computers expected to launch alongside the initiative.

Source: People’s Daily, November 5, 2026
http://finance.people.com.cn/n1/2026/1105/c1004-40828484.html

China Seeks to Move Humanoid Robots Beyond Basic Mobility, but Major Hurdles Remain

China is seeking to advance humanoid robots beyond basic movements such as walking and jumping toward more sophisticated real-world applications. However, industry leaders acknowledge that significant technical and infrastructure challenges must be overcome before robots can reliably perform complex tasks.

Speaking at a Nov. 5 forum on humanoid robotics and embodied artificial intelligence (AI) during the ninth Hongqiao International Economic Forum, Xin Guobin, Vice Minister of China’s Ministry of Industry and Information Technology, said humanoid robots are moving toward broader applications in manufacturing, services, and everyday life.

Wang Xingxing, founder and chairman of Unitree Robotics, identified the gap between AI models and the physical world as a major obstacle. Although multimodal models have advanced in understanding and planning, they still struggle to translate digital instructions into precise physical actions. Wang noted that even errors of a few millimeters can create significant problems when robots interact with their physical surroundings.

Wang Dong, co-founder and executive president of Moore Threads, identified three additional bottlenecks: a shortage of real-world physical data, the high cost of computing infrastructure, and fragmented development processes that lead to accuracy losses. He observed that while large language models are advancing rapidly, embodied AI models have yet to keep pace.

Source: People’s Daily, November 7, 2026
http://finance.people.com.cn/n1/2026/1107/c1004-40829521.html

Papua New Guinea Discovers 32-Kilogram Chinese-Made Military Shell; Chinese Embassy Calls It a “Liquor Bottle”

The discovery of a 32-kilogram Chinese-made unexploded military shell in Papua New Guinea’s capital, Port Moresby, has sparked controversy after the Chinese Embassy dismissed it as nothing more than a liquor bottle.

According to Australian media reports, Papua New Guinea police and military explosives experts secured the scene and safely removed the object. An investigation report finalized on November 3, following an examination using X-ray equipment donated by Australia, identified it as a Chinese-made Type 59 130mm artillery shell containing explosive material and a fuse. Four Chinese nationals were arrested on October 30 in connection with the incident.

On the same day the police report was finalized, the Chinese Embassy issued a statement on social media claiming that the object was merely a decorative liquor bottle shaped like an artillery shell and posed no danger. The embassy also argued that smuggling military ammunition out of China was virtually impossible because of the country’s strict weapons controls.

However, Papua New Guinea police had already rejected the claim that the object was a dummy. Senior officials confirmed that the police report identified it as live ammunition and that the findings had been forwarded to criminal investigators for further investigation.

The discovery comes as Australia seeks to negotiate a landmark defense treaty with Papua New Guinea. Beijing has publicly urged Port Moresby not to sign any agreement that would exclude cooperation with third countries.

Source: Aboluo, November 5, 2026
https://www.aboluowang.com/2026/1105/2453702.html

China Starts Withholding VAT on Individuals’ Service Income, Cutting Take-Home Pay

China began requiring employers and other payers to withhold value-added tax (VAT) from payments to individuals for certain services on Nov. 1. The rule comes from measures the State Taxation Administration issued on Sept. 3. Payers must now deduct VAT and surcharges, on top of the individual income tax already withheld.

Beijing University of Science and Technology and Huzhou University posted implementation notices on Oct. 26 and 23. The rules cover seven service categories: research and development, software, design, consulting, broadcast and film production, culture, and education. Huzhou’s notice classifies translation and market research as consulting, and lectures, training and educational assessments as education. Retirees, outside personnel and students are included.

A Huzhou administrative staffer told a reporter the rule applies nationwide to “all units, not all universities” and that the tax was not collected before.

Transactions with one payer of at least 1,000 yuan ($149) before tax are subject to withholding. Smaller amounts are exempt. VAT is charged at a reduced 1 percent rate through the end of 2027. Taxable transactions from Jan. 1 to Oct. 31 remain self-reported, and anyone who already paid will not be taxed twice.

Legal scholar Lu Chenyuan said the withholding closes a gap, since individuals’ service income largely escaped business tax before the 2016 reform. Financial scholar Si Ling said VAT on such income has a legal basis but was loosely enforced. He linked the tighter collection to the government’s need for revenue amid the economic downturn, calling the effort “unprecedented.”

On X, one user posted complaints from a university worker who asked why VAT applies after income tax was already paid.

Source: Radio Free Asia, November 2, 2026
https://www.rfa.org/mandarin/shangye/jingji/2026/11/02/china-ministry-of-finance-state-taxation-administration-value-added-tax-higher-education-institutions/

Chinese Source Claims CCP Behind Binance’s $6.3 Billion Hack, Seeks Access to User Data

On October 29, cryptocurrency exchange Binance reportedly suffered a theft of approximately $6.3 billion, in what has been described as the largest cryptocurrency heist in history. The FBI attributed the attack to North Korean hackers.

An X post, citing an anonymous source from China’s financial sector, alleged that Beijing was the real force behind the theft. The claims have not been independently verified.

The source claimed that 70 to 80 percent of Chinese officials and individuals involved in gray-market businesses use Binance to move funds. The source further alleged that North Korean hackers receive training in China and cooperate with Chinese intelligence agencies, suggesting that the North Korean connection could serve as a cover for Beijing’s involvement.

Founded in Shanghai in 2017 by Chinese-born Canadian citizen Changpeng Zhao (CZ) and Chinese national Yi He, Binance rapidly expanded and became the world’s largest cryptocurrency exchange by January 2018. After China banned cryptocurrency trading, Binance moved its operations overseas, and its website was blocked in mainland China. Zhao has repeatedly denied that Binance is a Chinese company or is controlled by the Chinese government.

Despite its departure from China, Binance reportedly maintains a dedicated Law Enforcement Request System (LERS) through which Chinese police can submit requests for information and asset freezes. Chinese authorities have also frozen bank accounts belonging to people who receive yuan from cryptocurrency transactions, particularly when the funds are linked to suspected criminal activity. China classifies cryptocurrency-related business activities as illegal financial activities, and cross-border transactions can trigger investigations for suspected illegal business operations or money laundering.

The source claimed that the CCP had been targeting Binance for at least five years, saying it had already taken action against the exchange and had never stopped. The source predicted that the latest incident could lead to changes in Binance’s internal structure, with Beijing pressuring the company to open access to its backend systems. This would allow Chinese authorities to investigate users and monitor transactions much as they do through domestic payment platforms Alipay and WeChat Pay.

The source argued that the CCP wants to bring funds associated with illicit businesses, tax evasion, and wealthy Chinese families transferring assets overseas under tighter control.

Source: @JenniferZeng15 on X
https://x.com/JenniferZeng15/status/2116770938511351986