CNA: Tensions between Australia and China Escalate Again on Darwin Port
Primary Taiwanese news agency Central News Agency (CNA) recently reported that tensions between Australia and China have escalated again. China threatened that if the Australian government forcibly reclaims the Port of Darwin, leased by Chinese companies, the Chinese government has an obligation to take measures to protect the interests of Chinese companies. This move will also affect investment, trade, and cooperation between the two countries.
In October 2015, the Northern Territory government of Australia signed an agreement with the China Landbridge Group to lease the Darwin Port terminal and surrounding facilities to the group for 99 years Since then, this agreement has been the subject of ongoing controversy. Darwin Port is a strategically important location, and both the Australian parties advocated for its return during last year’s general election.
Australian Prime Minister Anthony Albanese stated in Darwin that selling the Port of Darwin is not in Australia’s national interest. Commercial negotiations are currently underway. In response, Chinese Ambassador to Australia warned that the Albanese government’s plan to take back the Port of Darwin from China would jeopardize future bilateral trade and force Beijing to intervene.
China is Australia’s largest bilateral trading partner, accounting for 24 percent of Australia’s total trade in goods and services in the last fiscal year.
Source: CNA, January 28, 2026
https://www.cna.com.tw/news/acn/202601280300.aspx
Texas Bans the Use of Products of Multiple Chinese Companies
Chinese international trade news site CHW recently reported that Texas Governor Greg Abbott just issued a new executive order requiring all state employees to refrain from installing or using hardware, software, and artificial intelligence technology from certain Chinese companies on any state-owned equipment and networks. This decision aims to protect the data privacy and cybersecurity of Texas residents and prevent the risk of foreign governments, particularly the Chinese government, gaining access to sensitive information.
According to the officially released list of prohibited technologies, the companies and products included in the restrictions cover multiple sectors, including e-commerce platforms, communication equipment, artificial intelligence, energy, and drones. The specific list of companies includes well-known e-commerce platforms such as Alibaba and Temu, as well as fashion e-commerce platform Shein, network equipment manufacturer TP-Link, battery manufacturer CATL, and Chinese AI companies such as iFlyTek. In addition, the governor’s office also included drone manufacturer Autel and AI and visual recognition companies in the ban.
In his statement, Governor Abbott emphasized that with the increasing global cyber threats, it is crucial to prevent “hostile actors” from using technological products to infiltrate Texas government systems or devices. He believes that certain foreign technologies could be used to collect, manipulate, or misuse the data of Texas citizens.
Source: CHW, January 27, 2026
https://www.chwe.cn/article/GjivTWtRwus
FBI Relaunches Hard-Line Anti-CCP Counter-Espionage Effort, Arrests Up 40 Percent
The U.S. Federal Bureau of Investigation (FBI) has reinstated a hard-line counter-espionage initiative targeting the Chinese Communist Party (CCP), reversing the suspension of the program under the previous U.S. administration. FBI Director Kash Patel said countering the CCP has become a top bureau priority, with strategies being recalibrated to address evolving national security threats.
According to Patel, arrests of individuals suspected of spying for China have risen by approximately 40 percent in the first year since the initiative was relaunched, underscoring a more aggressive enforcement posture and renewed focus on countering Chinese intelligence activities.
Source: Epoch Times, February 7, 2026
https://www.epochtimes.com/gb/26/2/7/n14693327.htm
Beijing Garrison Command Filled by Armed Police Officer Amid Leadership Shake-Up
The position of commander of the Beijing Garrison Command had been vacant for approximately ten months before recent public information indicated that Chen Yuan, formerly commander of the Shanghai Armed Police Contingent, has been appointed to the post. The Beijing Garrison Command is responsible for securing China’s top leadership as well as central Party and state institutions, and it reports directly to the Central Military Commission (CMC).
Chen’s predecessor, Fu Wenhua, was reassigned as deputy commander of the People’s Armed Police in March last year. Fu was widely regarded as a former subordinate of CMC Vice Chairman Zhang Youxia, who fell from power in January. Analysts note that the extended vacancy and the timing of Chen’s appointment coincided with the period leading up to Zhang’s removal.
Commentators have described Chen’s appointment as unusual, given that he comes from the People’s Armed Police rather than the People’s Liberation Army. They argue that this may reflect an effort by Xi Jinping to distance key internal security positions from military networks associated with figures such as Zhang Youxia or Miao Hua.
{Editor’s Note: Unverified rumors had been widely circulating online that the death of former Premier Li Keqiang in Shanghai was out of Xi’s order; Chen Yuan and Shanghai Armed Police were allegedly involved in it.}
Source: Central News Agency (Taiwan), February 7, 2026
https://www.cna.com.tw/news/acn/202602070147.aspx
STCN: China’s January Manufacturing PMI Fell into Contraction Territory
China Security Times (STCN) recently reported that, the Chinese National Bureau of Statistics and the China Federation of Logistics and Purchasing jointly released the China Manufacturing Purchasing Managers’ Index (PMI). Data shows that in January, the Manufacturing PMI fell to 49.3 percent, below the 50 percent line in the contraction territory.
According to the Bureau of Statistics, the low number is due to some manufacturing sectors entering their traditional off-season, coupled with insufficient effective market demand.
Looking at the 13 sub-indices, compared with the previous month, the product inventory index, import index, purchase price index, and ex-factory price index increased, with the increase ranging from 0.3 to 3 percentage points; while the production index, new orders index, new export orders index, backlog orders index, purchasing volume index, raw material inventory index, employment index, supplier delivery time index, and production and operation activity expectation index all decreased, with the decrease ranging from 0.1 to 2.9 percentage points.
The survey shows that over 34 percent of manufacturing companies reported declining profits in January, highlighting the need to address the issue of corporate profits.
Source: STCN, January 31, 2026
https://www.stcn.com/article/detail/3623890.html
Panama President Rejects Chinese Pressure After Court Cancels Port Concessions
Panama’s Supreme Court ruled last week that contracts granting CK Hutchison Holdings, through its subsidiary Panama Ports Company, the right to operate two Panamanian ports were unconstitutional and therefore void. The court determined that the agreements conferred exclusive privileges and tax exemptions in violation of Panama’s constitution.
On February 3, Chinese authorities warned that Panama would pay a “heavy price” for the ruling, with China’s State Council Hong Kong and Macao Affairs Office denouncing the decision as “absurd.”
Panamanian President José Raúl Mulino responded on February 5, stating that Panama is a sovereign nation and would not accept threats from any country.
The timeline for implementing the court’s ruling remains unclear. Mulino said port operations would continue in coordination with Panama Ports Company until the decision takes effect. Once the concession is formally terminated, a local subsidiary of Denmark’s A.P. Moller–Maersk will assume interim management of the ports until a new concession is tendered and awarded.
The Supreme Court’s decision has been widely interpreted as a political victory for U.S. President Donald Trump, who has sought to limit Chinese influence over the strategically vital Panama Canal.
Source: Epoch Times, February 6, 2026
https://www.epochtimes.com/gb/26/2/5/n14692117.htm
Chinese Scholars Interpret Western Leaders’ Visits to China as Strategic Recalibration
Xinhua News Agency interviewed Chinese scholars regarding the recent visit of British Prime Minister Keir Starmer to China, along with similar visits by leaders from Ireland, Canada, and Finland. The scholars suggested that these visits reflect a broader trend of Western countries increasing engagement with China, driven in part by internal political and economic challenges within the West.
One scholar argued that growing pressure from the United States—particularly under Trump’s renewed leadership—has strained U.S.-European relations, prompting some Western countries to seek greater strategic flexibility. China’s perceived stability, reliability, and willingness to push back against U.S. pressure were portrayed as factors enhancing its appeal as a partner.
Another scholar emphasized that economic difficulties and geopolitical tensions have encouraged some Western countries to view relations with China more through the lens of cooperation and shared development. The British government’s statement that it does not wish to choose sides between China and the United States was highlighted as notable, given the United Kingdom’s longstanding alliance with Washington. From this perspective, strengthening ties with China is seen as a way to secure more predictable and sustainable economic opportunities.
The scholar also argued that some Western countries have faced bullying and pressure stemming from (the U.S.’) unilateralism and hegemonic practices, and they have limited ability to safeguard their national interests through traditional hard power. In this context, China was portrayed as advocating inclusive globalization and improved global governance, making it an attractive partner for countries seeking stability and greater diplomatic flexibility amid global uncertainty.
Source: Xinhua, February 1, 2026
https://app.xinhuanet.com/news/article.html?articleId=ba6eddb76eb5cce2414827ebe415b147
Economic Confidence Among China’s Wealthy Falls to Lowest Level Since 2012
The Hurun Research Institute released its “2026 Hurun Best of the Best – China High-Net-Worth Individuals Quality of Life Report,” which surveyed 470 Chinese individuals with assets exceeding 10 million yuan (US$1.44 million), including 70 respondents with assets above 100 million yuan.
The report found that economic confidence among China’s wealthy has declined for the fourth consecutive year, with the confidence index dropping to 5.4—its lowest level since 2012. Only 26 percent of respondents said they were highly confident about the economy, while 59 percent described themselves as moderately confident. By comparison, confidence levels were higher during previous periods of economic stress, including the global financial crisis and the COVID-19 pandemic, and reached a peak of 7.2 in 2022.
Looking ahead, high-net-worth Chinese households expect to reduce annual discretionary consumer spending by an average of 242,000 yuan over the next year.
Source: Central News Agency (Taiwan), January 31, 2026
https://www.cna.com.tw/news/acn/202601310174.aspx