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
China’s Local Government Land Transfer Income Drops More Than 50 Percent From 2021 Peak
A February 2 report by Yicai, citing publicly released data from China’s Ministry of Finance, shows that revenue from local government transfers of state-owned land-use rights totaled 4.1 trillion yuan in 2025, representing a year-on-year decline of 14.7 percent. This marks the fourth consecutive year of double-digit declines in such revenue since 2022. Compared with the 2021 peak of 8.7 trillion yuan, local land transfer revenue in 2025 fell by approximately 4.6 trillion yuan, a decline of 52.3 percent.
Analyst suggests that shifts in real estate supply and demand, which have contributed to a sluggish property market and financial strain among developers, are the primary drivers of the continued downturn in land-based fiscal revenue. The prolonged adjustment in the real estate sector has significantly reduced local governments’ land transfer income, constraining fiscal resources and increasing debt repayment pressures. China’s current reliance on the “land finance” model is becoming increasingly difficult to sustain.
Source: Central News Agency (Taiwan), February 3, 2026
https://www.cna.com.tw/news/acn/202602030136.aspx
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