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
Shenzhen Tightens Security Ahead of APEC Summit as Residents Voice Frustration
Shenzhen will host the 33rd APEC Economic Leaders’ Meeting on November 18-19. The White House has said President Donald Trump intends to attend, Russia has announced that President Vladimir Putin will lead a delegation, and Japanese Prime Minister Sanae Takaichi is coordinating her attendance. Trump and Chinese President Xi Jinping are expected to meet again on the sidelines.
On November 1, Guangdong’s public security department held a mobilization meeting declaring the province had entered a “decisive stage” of security preparations. Police were drawn from across the province to support Shenzhen, with orders to deploy heavy street patrols and strictly control access to key sites. Officials also set up outer checkpoint rings to keep “risk factors” out of the city.
Residents told the reporter that subway bag checks have become stricter, with queues of more than ten minutes. One resident said the measures felt wasteful and that ordinary people could not see what benefit the event would bring them. Others described seeing volunteers and security personnel in colored vests across the city. A retiree said officials were under strict instructions to avoid any incident, while another resident attributed the heightened sensitivity to economic decline and public discontent.
A sauna security guard in Luohu said all customers must now register their ID cards, which are uploaded to the police station, and that a Hong Kong customer left after seeing the notice. Karaoke venues are also inspecting bags. According to a post on X, a restaurant owner in Longhua District said police had chained kitchen knives in place.
Shenzhen has announced drone and aircraft restrictions from November 7-10 in Futian and Nanshan districts, expanding citywide from November 11-21. Non-local passenger vehicles will be restricted in six districts from November 17-20, and hazardous cargo vehicles banned citywide from November 16-20. Employers are encouraged to adopt flexible work arrangements that week.
Source: Radio Free Asia, November 4, 2026
https://www.rfa.org/mandarin/shehui/2026/11/04/china-apec-heightened-security-shenzhen-restrictions-on-kitchen-knives/
Nagoya Mayor Attends Japan-Taiwan Summit Despite Reported Chinese Pressure
The 12th Japan-Taiwan Exchange Summit was held in Nagoya, Japan, with approximately 300 people in attendance. Despite reports that Chinese officials had urged Nagoya Mayor Ichiro Hirozawa not to attend, Hirozawa appeared in person and delivered remarks underscoring the longstanding friendship between Japan and Taiwan. He pledged to continue promoting exchanges between the two sides and shared that he had visited Taiwan six times, praising the warmth and friendliness Taiwanese people have consistently shown toward Japanese visitors.
Keiji Furuya, chairman of the Japan-Taiwan Diet Members’ Consultative Council, said the cross-party group now has 325 members of Japan’s National Diet, which has 713 seats in total. Furuya highlighted the group’s efforts to address the longstanding issue of Japanese official documents identifying Taiwanese people’s nationality as “China” rather than “Taiwan.” The group has helped secure changes allowing “Taiwan” to be listed on family registries and, more recently, national professional licenses.
The summit carried particular significance following several incidents involving Taiwan at the recent 2026 Asian Games hosted in Nagoya, including the reported mistreatment of Taiwan’s Sports Minister, Li Yang, during a visit to Japan, as well as incidents in which Taiwanese spectators were reportedly treated improperly while displaying flags and using towels to cheer for their athletes.
At the summit’s opening, Nagoya City Council member Kazuhide Fujita publicly apologized for the Asian Games treatment of Taiwan. Kobe City Council member Hiromasa Uehata criticized the event organizers for yielding to Chinese pressure, saying their actions had undermined the dignity and identity of the Taiwanese people. He called the incidents “a disgrace to Japan.”
Source: Central News Agency (Taiwan), November 2, 2026
https://www.cna.com.tw/news/aipl/202611020278.aspx
Satellite Images Show Five New Zubr Hovercraft Under Construction at Chinese Shipyard
Recent commercial satellite imagery reportedly shows five large Zubr-class air-cushion landing craft under construction simultaneously at an outfitting basin at a shipyard in southern China.
If completed and delivered, the five vessels would join the six Zubr-class craft already in service with the Chinese Navy, potentially bringing the fleet to more than 10. The expansion would enhance the Navy’s ability to transport heavy armored vehicles by sea and deploy them directly onto shore.
Originally developed by the Soviet Union, the Zubr is a large amphibious assault hovercraft. Subsequent production involved Russia and Ukraine before China imported the vessels and began domestic production. The craft has a full-load displacement of approximately 555 tons and a payload capacity of 150 tons. It can carry three main battle tanks, eight infantry fighting vehicles, or a large number of landing troops, making it one of the largest military hovercraft currently in service worldwide.
The Zubr has a cruising speed of approximately 55 knots and a range of about 550 kilometers. Its air-cushion design enables it to travel through shallow waters and approach shorelines at high speed, reducing its dependence on water depth and coastal terrain. It can also cross obstacles and difficult terrain, including reefs, shallows, and mudflats, allowing heavy equipment to be delivered rapidly ashore.
Source: Newtalk (Taiwan), November 4, 2026
https://newtalk.tw/news/view/2026-11-04/1069285
People’s Daily Promotes China’s Open-Source AI Approach in Push for Global Technology Leadership
The People’s Daily is using the 2026 World Internet Conference Wuzhen Summit to promote China’s open-source approach to Artificial Intelligence (AI), presenting it as an alternative to the concentration of advanced computing resources and AI capabilities in developed countries, particularly the United States.
Held from November 2 to 5 in Wuzhen, Zhejiang Province, this year’s summit adopted the theme “Open Source and Openness, Joint Development and Shared Benefits.” Access to computing power and digital infrastructure remains highly unequal worldwide. It cites a World Bank report showing that high-income countries dominate the global TOP500 supercomputer rankings, while a report by the UN Economic Commission for Africa found that the continent accounts for less than 1 percent of global data center capacity.
Chinese open-source models, such as DeepSeek, have lowered the cost of adopting AI and made the technology more accessible to smaller businesses and developers.
According to China’s Ministry of Industry and Information Technology, Chinese open-source AI models have recorded more than 10 billion cumulative downloads worldwide, while a national open-source AI community has attracted over 11 million users. A spring 2026 report by Hugging Face found that Chinese-developed models accounted for 41 percent of global downloads on its platform between February 2025 and February 2026, making China the largest single source of open-source models.
The growing international participation also shows the appeal of China’s vision for global digital cooperation. The summit received 360 submissions from 80 countries and regions for its “Outstanding Cases of Building a Community with a Shared Future in Cyberspace” collection.
Source: People’s Daily, November 4, 2026
http://finance.people.com.cn/n1/2026/1104/c1004-40827473.html
China’s 2027 Civil-Service Recruitment Continues to Exclude Overseas Graduates
Although sending children to study at overseas universities has long been popular among wealthy Chinese families, authorities are increasingly closing off pathways for these graduates to advance within the government system.
More than a dozen Chinese provincial-level regions, including Beijing and Shanghai, began recruiting candidates for their 2027 targeted graduate selection programs in September and October. The programs largely exclude graduates of overseas universities, continuing a trend that has narrowed opportunities for Chinese students returning from abroad.
The programs recruit outstanding graduates from designated universities as a talent pool for future government and Chinese Communist Party (CCP) leadership positions. Successful candidates enter the civil service and typically must serve in grassroots positions, such as township and subdistrict offices, for several years before becoming eligible for advancement. Applicants generally must be CCP members or outstanding student leaders.
The exclusion marks a shift from earlier policies. For the 2023 and 2024 graduating classes, at least 10 provincial-level regions, including Beijing and Guangdong, accepted degrees from selected internationally ranked universities. Since 2025, however, overseas graduates have largely disappeared from eligibility lists. Some regions, including Heilongjiang, have explicitly excluded graduates of foreign universities.
One possible explanation for the policy shift is growing official concern over foreign influence. In 2025, Xinhua cited Chinese state security authorities warning that overseas students could be vulnerable to recruitment by foreign intelligence agencies.
Source: Epoch Times, November 1, 2026
https://www.epochtimes.com/gb/26/10/31/n14880659.htm
Chinese County Uses AI-Assisted System to Improve Military Recruitment and Personnel Selection
Guangrao County in Shandong Province has introduced a digital system to assist military recruitment, shifting the selection process from subjective assessments to data-driven decisions and more precise matching of recruits to military needs.
According to a local report, the system evaluates applicants based on their education, physical condition, fitness, psychological qualities, and suitability for military service. It assigns scores, automatically ranks candidates, and maintains tamper-proof records of all operations.
Previously, recruitment decisions often placed heavy emphasis on educational qualifications, sometimes overlooking applicants’ physical abilities or specialized skills. As a result, highly educated recruits might be assigned to physically demanding roles for which they were poorly suited, while technically skilled candidates could miss opportunities to serve in positions that matched their expertise.
The new system categorizes applicants into four groups—physical fitness-oriented, technical skills-oriented, general-purpose, and specialized—and matches their abilities, potential, and service preferences with military requirements.
The system also aims to improve transparency and curb corruption. Data from every stage of recruitment, including initial screening, physical examinations, political background checks, pre-service training, and final selection, are recorded and traceable, reducing opportunities for discretionary human intervention.
Source: People’s Daily, November 3, 2026
http://military.people.com.cn/n1/2026/1103/c1011-40826743.html