China’s Military Warns of Internal Espionage Threats Following Iran Strike
The assassination of Iranian Supreme Leader Ali Khamenei by a joint U.S.-Israeli operation has sent shockwaves through Beijing, prompting China’s People’s Liberation Army (PLA) to issue a series of stark warnings about the dangers of foreign infiltration and espionage.
On March 2, the PLA Daily‘s official commentary studio, “Junzhengping,” published a piece on Weibo titled “The Silent Shadow War: Everyone Must Stay Vigilant.” The commentary argued that as global competition intensifies, methods such as infiltration, intelligence theft, and subversion have become standard tools of “certain forces” seeking to sow instability from within. The piece drew a direct lesson from Iran’s downfall, stating that “the most fortified strongholds are often breached from the inside.”
The commentary warned Chinese citizens against complacency in everyday interactions, noting that casually mentioning sensitive information could hand adversaries the missing piece of an intelligence puzzle, accepting minor gifts or favors could open the door to manipulation, and taking seemingly friendly conversation at face value could allow bad actors to map out vulnerabilities.
China’s Ministry of State Security, the piece noted, publishes new cases of foreign espionage activity almost daily. The article urged every citizen to “stay alert, hold the line, and distinguish right from wrong,” so as to weave a security network that is “round-the-clock and without blind spots,” leaving no room for infiltration or subversion to take hold.
This followed an earlier PLA Daily commentary published on February 28, which called on “every Chinese son and daughter” to internalize the principle of never forgetting danger in times of peace. Only by “staying attuned to risk and preparing before the storm arrives,” it said, can China safeguard the hard-won stability it has achieved.
Source: Central News Agency (Taiwan), March 3, 2026
https://www.cna.com.tw/news/acn/202603030295.aspx
Chinese Media’s Reports During the First Couple of Days of the U.S. Attack on Iran
Creaders.Net, a Chinese-language website based in the United States, collected screenshots of reports from several Chinese media outlets covering the first couple of days following the U.S. attack on Iran. Many of these reports echoed the Chinese Communist Party’s (CCP’s) propaganda narrative, suggesting that the United States would find it difficult to win the conflict and that Iran was capable of effectively fighting back.
On February 28, some outlets reported that Iran’s Supreme Leader Ali Khamenei had survived an assassination attempt. After his death was later confirmed, some media cited experts claiming that he had already transferred his authority beforehand and that his death would therefore have limited impact on Iran’s national decision-making.
Guancha Observer:
“Huang Jin (commentator): The United States has made very poor preparations for this war; the U.S. military is an army that lacks confidence the most among all armies.”
China Daily:
“A video published by foreign media on March 1 shows several fireballs flying across the night sky over Dubai, passing above brightly lit skyscrapers.”
Xi’an City’s Radio and Television:
“Iran Fights Back – Iran’s Islamic Revolutionary Guard Corps issued its seventh statement declaring that Iran was carrying out retaliatory strikes.”
Dajiangkankan website:
“Photos from the scene: An Iranian missile broke through Israel’s defenses and struck Jerusalem. A building was directly hit, leaving a crater about 10 meters deep; people were screaming and running away.”
China Central Television (CCTV-4):
“Li Shaoxian, Honorary Dean of the Institute of Arab Studies at Ningxia University: Khamenei had already transferred his authority in advance, so his death would have only limited impact on Iran’s national decision-making.”
Beijing Times:
“Expert analysis: Khamenei may have already transferred his authority earlier, meaning his death would have only a limited effect on Iran’s decision-making.”
People’s Daily:
“Iranian Missile Hits Israel’s General Staff Headquarters.” “Images released by Iran show that the building housing Israel’s General Staff headquarters was struck early in the morning on March 1 and engulfed in flames.”
Direct News:
“Expert prediction: Khamenei survived the first assassination attempt; the United States and Israel will face a much more difficult situation moving forward.”
Shenzhen National Defense Channel:
“On February 28, Israel’s initial assessment suggested that the joint U.S.–Israeli attempt to assassinate Khamenei and Iran’s President Masoud Pezeshkian had failed. Khamenei may have already relocated, and Iran’s intelligence operations have changed significantly since last year. He had already left his office.”
Observing Pupil Channel on Bilibili:
“Shen Yi, a professor of international politics at Fudan University, analyzed Israel’s assessment, saying that the assassination attempt against Khamenei and the Iranian president had failed.”
Zhihu:
Jin Canrong (CCP leaders’ policy advisor): “Trump may have made a strategic mistake this time. The assassination attempt by the United States and Israel failed, and Iran now has four possible ways to retaliate.”
Hubei Daily:
“On the evening of March 1, Iran reportedly launched another strike on a U.S. military base in Bahrain. Heavy smoke was seen over the capital Manama, and local media reported that the site on fire was the U.S. base.”
Source: Creaders.Net, March 3, 2026
https://news.creaders.net/china/2026/03/03/2977362.html
U.S. Actions in Middle East and Beyond Seen as Strategic Moves Against China
Growing instability in the Middle East following U.S. and Israeli military operations against Iran is raising serious concerns about the impact on China’s energy security and broader geopolitical ambitions, according to analysts in Hong Kong.
Writing in Ming Pao, Hong Kong analyst and former editor-in-chief of the Hong Kong Economic Journal Chen Jingxiang noted that China is Iran’s largest oil customer, purchasing more than 80 percent of Iran’s oil exports. Since the outbreak of hostilities, Iran has announced a blockade of the Strait of Hormuz — a critical chokepoint through which approximately one-third of China’s crude oil supply passes. A sustained closure of this vital energy corridor could significantly disrupt China’s energy supply.
Beyond energy, Iran holds a key strategic position in China’s Belt and Road Initiative. A cooperation agreement signed between the two countries in 2016 deepened collaboration in transportation, railways, and energy. The outbreak of conflict now threatens to seriously undermine China’s investments and interests in Iran.
Iran is also an important political ally of China. Tehran joined the Shanghai Cooperation Organisation — a China-led bloc — in 2023, with Chinese state media at the time hailing the move as an opportunity for Iran to better realize its geoeconomic potential. China’s broader circle of strategic partners includes Russia, North Korea, and Pakistan.
The article argues that U.S. actions targeting Venezuela and Iran — both among China’s top oil suppliers — as well as Washington’s intervention in Panama Canal port operations, are part of a coherent strategy aimed at weakening China’s global influence.
Despite President Trump’s frequent public praise of Chinese leader Xi Jinping and his characterization of Xi as a “good friend,” the analyst contends that Washington’s actual moves are consistently aimed at undermining Beijing. China, the article concludes, should harbor no excessive expectations for the Trump-Xi summit scheduled later this month.
Source: Central News Agency (Taiwan), March 4, 2026
https://www.cna.com.tw/news/acn/202603040045.aspx
Hu Xijin: The Netherlands, This “Petty Bandit,” Must Pay the Price for Its Action
Hu Xijin, formal chief editor of China’s state-run media Global Times, published an editorial
article following a court ruling of Netherlands on February 11, ordering a formal investigation
into the socalled “mismanagement” at Nexperia. Below is an excerpt of the article:
“A court of appeal in Amsterdam, the Netherlands, issued a ruling ordering a formal
investigation into the socalled “mismanagement” at Nexperia. The ruling also upholds the
Dutch government’s earlier decision to suspend the company’s Chinese CEO, Zhang Xuezheng,
and allows the European interim management team to remain in place. This is undoubtedly a
political ruling—using the law as a tool to legitimize what amounts to a ‘coup’ by the Dutch
government against Nexperia.
“The court stated that it had ‘sufficient grounds’ to question Nexperia’s policies and business
conduct, claiming there were ‘indications’ that CEO Zhang had ‘unilaterally changed the
company’s strategy’ in response to U.S. exportcontrol pressures. According to the court, under
Wingtech’s control, there were signs that Nexperia failed to comply with agreements made
with the Dutch Ministry of Economic Affairs and took steps to marginalize or dismiss European
managers.
“Wingtech Technology issued a statement expressing ‘extreme disappointment and strong
dissatisfaction’ with the ruling, emphasizing that it would continue to defend its rights through
all legal means.
“In recent months, many European countries and Canada have accelerated commercial
engagement with China, with visiting Western leaders signing trade agreements to stabilize and
expand economic ties. The U.S., after intense friction last year, has also entered a trade truce
with China and adjusted its strategy. However, the Dutch ruling pushes the Netherlands back
into confrontation with China, preventing the ‘Nexperia turmoil’ from settling. With several
Chinahawk politicians entering the new Dutch cabinet, the ruling is seen as a signal that the
Netherlands will continue its irrational China policy.”
The article argues that the Dutch government appears confused about its own interests and
how to defend them. “China’s scale is not in the same league as the Netherlands, and we have
experienced and seen far more. When dealing with the Netherlands, this ‘little bandit’ and
‘little bully,’ our capability and endurance are destined to be inexhaustible.” “The Netherlands,
will have to pay a price for its action.”
Source: Sina, February 12, 2026
https://www.sina.cn/news/detail/5265619327918245.html
CNA: Xinhua News Agency Released a New List of Prohibited Terms, Emphasizing Taiwan Is a Province of China
Xinhua News Agency recently released a new batch of prohibited terms, covering five major
categories: social life, legal matters, ethnic and religious issues, matters involving territorial
sovereignty and Hong Kong–Macau–Taiwan, and international relations.
In the category concerning territory, sovereignty, and Hong Kong–Macau–Taiwan, there are 13
prohibited expressions. Xinhua states that “Hong Kong and Macau are Special Administrative
Regions of China, and Taiwan is a province of China. In all written texts, maps, and charts,
special care must be taken not to refer to them as ‘countries.’” This is especially important
when listing multiple countries and regions together, where the phrase “countries and regions”
must not be omitted.
For the names of Taiwan’s governmental institutions, quotation marks should be used when
they cannot be avoided, such as Taiwan’s “Legislative Yuan,” “Executive Yuan,” “Control Yuan,”
and “Election Commission.” Terms such as “central,” “national,” or “Chinese Taipei” must not
appear; if they must be used, they should be placed in quotation marks, such as Taiwan
“Central Bank,” Taiwan “Premier,” or “Legislator.” Institutions like Taiwan “Tsinghua University”
and the Taiwan “National Palace Museum” should also be placed in quotation marks.
“It is strictly forbidden to refer to the leader of the Taiwan region as the ‘President (Vice
President) of the Republic of China,’ even with quotation marks.”
Other prohibited expressions include: Taiwan’s socalled “laws” should be described as “relevant
regulations of the Taiwan region.” In matters involving crossStrait legal affairs, terms from
international law such as “document authentication,” “judicial assistance,” or “extradition”
must not be used.
The two sides of the Taiwan Strait and Hong Kong must not be collectively referred to as “the
two sides of the Strait and the three regions.” The phrase “Hong Kong, Macau, and Taiwan
tourists traveling to China” should be expressed as “Hong Kong, Macau, and Taiwan tourists
traveling to the mainland.” “Taiwan” corresponds to “the mainland (or the motherland’s
mainland),” and “Hong Kong and Macau” correspond to “the mainland,” and these concepts
must not be confused.
Additional prohibited expressions include placing Taiwan, Hong Kong, or Macau alongside China
as parallel entities, such as “China–Hong Kong” or “China–Taiwan.” Instead, one should use
expressions like “the mainland and Taiwan” or “Fujian and Taiwan.”
Source: CNA, February 27, 2026
https://www.cna.com.tw/news/acn/202602270111.aspx
LTN: China Accuses United States of Seizing Global Cryptocurrency Assets in New Report
China has issued a new report on February 26 accusing the United States of using its
technological and regulatory power to “harvest” virtualcurrency assets from around the world.
The report, released by China’s National Computer Virus Emergency Response Center and a
cybersecurity research institute, claims that U.S. authorities have seized more than US$30
billion in global cryptocurrency holdings between 2022 and 2025.
According to the report, nearly half of the seized assets were tied to the highprofile case
involving Chen Zhi, founder of Cambodia’s Prince Group (太子集團). Chen was arrested in 2024
and later extradited to China, where he faces charges related to online fraud and money
laundering. U.S. prosecutors had previously charged Chen in New York and confiscated 12.7
million bitcoins from the accounts controlled by Chen, valued at roughly US$15 billion at the
time, marking one of the largest crypto seizures in American history.
Chinese authorities argue that the United States uses its dominance in global internet
infrastructure, financial networks, and blockchain analytics to monitor and confiscate digital
assets worldwide. The report alleges that these actions go beyond criminal enforcement and
amount to a strategic effort to strengthen U.S. control over emerging digital financial systems.
Source: LTN, February 26, 2026
https://news.ltn.com.tw/news/world/breakingnews/5352218
China’s 31 Provinces Embrace Austerity in 2026 Budget Plans
All 31 of China’s provinces have released their 2026 budget drafts, each echoing the central government’s directive for Party and government agencies to “live frugally” by cutting administrative and non-essential expenditures. The push reflects an intensifying fiscal squeeze that has been building for years, with some analysts arguing that curbing wasteful local government investment would yield even greater savings than trimming routine spending.
The “living frugally” policy generally refers to reductions in the so-called “three public expenses” — overseas official travel, official hospitality, and government vehicle costs — along with other non-urgent outlays. According to a report by Yicai on February 27, the approach has become a long-term policy directive, particularly as the gap between fiscal revenues and expenditures has widened in recent years.
Several provinces reported concrete results. Tianjin cut 5.87 billion yuan (approximately $806 million USD) in non-essential spending in 2025. Jiangxi saw its three public expenses fall 21 percent, large-scale provincial renovation spending drop 41.9 percent, and conference fees decline 36.4 percent. Shaanxi pledged to further slash budgets for festivals, trade shows, and forums, while Hebei committed to continued reductions across meetings, training, and outsourced service fees.
An anonymous local fiscal official noted that reining in ineffective and hastily launched investment projects — those started without adequate planning or assessment — would save considerably more public funds than cutting general administrative expenses.
The frugality drive traces back to March 2019, when President Xi Jinping explicitly linked government belt-tightening to improving ordinary citizens’ lives. The policy gained further urgency during the COVID-19 pandemic as local finances deteriorated. It was formally institutionalized in May 2025, when the Party and State Council issued a revised regulation on strict economy and opposing waste, moving the directive from a slogan into enforceable policy.
Source: Central News Agency (Taiwan), February 27, 2026
https://www.cna.com.tw/news/acn/202602270112.aspx
China Targets Japan’s Military Buildup With Export Controls
China’s Ministry of Commerce recently announced it is adding 20 entities involved in enhancing Japan’s military capabilities to its export control list, while placing another 20 Japanese entities on a watch list for failing to verify the end users and end uses of dual-use goods. Beijing framed the move as a matter of national security, non-proliferation obligations, and a direct response to what it describes as Japan’s accelerating “re-militarization.”
China argues that under the Cairo Declaration, the Potsdam Proclamation, and Japan’s Instrument of Surrender, Japan is legally prohibited from rearming. Yet major Japanese defense contractors — Mitsubishi Heavy Industries, IHI Corporation, and Kawasaki Heavy Industries — have continued producing warships, fighter jets, and missiles. China specifically cites Mitsubishi’s involvement in developing hypersonic glide weapons and shipbuilding contracts that it claims threaten stability in the East and South China Seas.
The article points to Japan’s rapid defense spending growth as evidence of a deepening military-industrial complex. Defense budgets have risen for 14 consecutive fiscal years from 2012 to 2026, more than doubling since 2022. Stock prices of major defense firms have surged dramatically since November 2022 — Mitsubishi Heavy Industries by over 650 percent, IHI by over 480 percent, and Kawasaki Heavy Industries by over 280 percent — even as Japan’s broader manufacturing sector grew at less than 1 percent annually over the same period.
Under Prime Minister Sanae Takaichi, the article claims, remilitarization has accelerated further, with plans for large-scale bond issuance and a special defense income tax to fund military expenditures, alongside the establishment of a national intelligence agency this year.
The piece also raises alarm over Japan’s nuclear ambitions, noting that Japan had stockpiled 44.4 tons of separated plutonium as of end-2024 — far exceeding civilian energy needs — and possesses the full technical infrastructure to produce weapons-grade material. China warns that if Japan crosses the nuclear threshold, the global non-proliferation framework would face a severe blow. The article concludes that China’s export controls are a lawful and necessary step to prevent militarism’s resurgence and to uphold the postwar international order.
Source: People’s Daily, February 28, 2026
http://paper.people.com.cn/rmrb/pc/content/202602/28/content_30142715.html