China Reports Decline in 2025 Fiscal Revenue, Sharp Fall in December
China’s Ministry of Finance released data on fiscal revenue and expenditure for 2025 on January 30. Nationwide general public budget revenue—fiscal revenue in the narrow sense—totaled 21.6 trillion yuan (US$3.95 trillion), marking a year-on-year decline of 1.7 percent. Tax revenue reached 17.64 trillion yuan, up slightly by 0.8 percent from a year earlier, while non-tax revenue fell 11.3 percent year on year to 3.97 trillion yuan.
On a monthly basis, fiscal revenue weakened significantly toward the end of the year. After remaining flat year on year in November, general public budget revenue plunged 25 percent in December.
Analysts said the sharp slowdown in fiscal revenue growth over recent months further reinforces the view that demand suffered a “cliff-like decline” in the second half of 2025.
Source: Lianhe Zaobao, February 2, 2026
https://www.zaobao.com.sg/finance/china/story20260202-8262100
China Unveils “Space+” Future Industry Plans Under the 15th Five-Year Plan
A Commercial Spacecraft and Applications Industry Chain Co-Building Action Conference was held in Shanghai on January 29 under the guidance of the State-owned Assets Supervision and Administration Commission of the State Council and the China National Space Administration. The conference announced plans to expand the development of future “Space+” industries.
China Aerospace Science and Technology Corporation, designated as the “chain leader” for the commercial spacecraft and applications industry, will implement five major initiatives during the 15th Five-Year Plan period (2026–2030). These include a future-industry cultivation program focusing on space digital-intelligence infrastructure, space resource development, space traffic management, and space tourism.
Key initiatives include building gigawatt-level space digital-intelligence infrastructure; advancing technologies for small-body resource exploration, autonomous mining, low-cost transportation, and in-orbit processing; strengthening space debris monitoring and mitigation to position China for a leading role in setting international rules on space traffic management; and accelerating the commercialization of suborbital and orbital space tourism.
Source: Xinhua, January 29, 2026
https://www.news.cn/20260129/38e6dbbf6ab845b18f7629f55f726550/c.html
Theoretical, Strategic, and Operational Foundations of Intelligentized Warfare
People’s Daily republished an article from the People’s Liberation Army (PLA) Daily examining how victory can be achieved in informationized and intelligentized warfare through advances in military theory, strategic planning, and operational innovation.
The article argues that advanced military theory is a fundamental source of combat power and must integrate modern scientific disciplines while continuously evolving through practical testing and iterative refinement.
It emphasizes the need for forward-looking, technology-driven strategic planning that moves beyond reacting to conflict toward actively shaping future warfare. This approach includes anticipating disruptive technologies, prioritizing emerging strategic domains—such as cyberspace, outer space, the deep sea, and polar regions—and adopting flexible, adaptive planning frameworks to manage uncertainty.
Finally, the article highlights the importance of innovating operational concepts and tactics to translate technological advantages into battlefield dominance. Key themes include treating data, algorithms, networks, and intelligence as decisive combat factors; redesigning command-and-control processes for greater speed and adaptability; and promoting cross-domain integration to achieve agile, system-level combat effectiveness.
Source: People’s Daily, January 27, 2026
http://military.people.com.cn/n1/2026/0127/c1011-40653648.html
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