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Japan Warns Firms Over Huawei 5G Risk in Ukraine Reconstruction

The Japanese government has issued a warning to Japanese companies interested in supporting Ukraine’s postwar reconstruction, cautioning them about the security risks associated with using 5G telecommunications infrastructure built on technology from Chinese tech giant Huawei. The warning reflects growing concern in Tokyo over the potential for technical and sensitive information leakage through Huawei-equipped networks.

The alert comes after a major Ukrainian mobile operator conducted 5G pilot tests with Huawei in several cities last year. The Ukrainian government subsequently allocated 5G frequency bands to that operator. Japan’s Rakuten Group had also applied to participate in Ukraine’s 5G market but was not selected as a candidate.

According to Japanese government documents obtained by Kyodo News, officials flagged serious concerns about the spread of Huawei 5G infrastructure in major cities including the capital Kyiv. The documents specifically warned that investment in critical infrastructure — including the energy sector — carried significant risks for Japan, the United States, and European nations. Officials also expressed concern that Chinese-made equipment could enter the Ukrainian market indirectly, through Turkish intermediary companies, even without direct involvement from Chinese firms.

Huawei has long been identified as a security vulnerability by U.S. authorities and remains subject to American sanctions. Japan’s decision to issue this kind of economic security warning to private firms is considered an unusual step, underscoring how seriously the government views the risk of Huawei technology proliferating in strategically important regions. The move signals that Tokyo is prepared to take a more active role in guiding Japanese corporate behavior abroad when national and allied security interests are at stake.

Source: Kyodo News, March 12, 2026
https://china.kyodonews.net/articles/-/7862

Briefings | | |   Geo-Strategic Trend

Italy Expels Eight Chinese Nationals Over Surveillance of Dissidents

Italy recently expelled eight Chinese nationals accused of monitoring and intimidating Chinese dissidents living in the country, reigniting public debate over China’s use of overseas “police stations” to extend its repression networks across multiple countries.

The eight individuals were removed on March 5, following a lengthy investigation by Italy’s DIGOS unit and Turin prosecutors. Four left voluntarily, three were immediately deported, and one woman remains detained after applying for asylum. The primary target of their surveillance was a prominent online activist known as “Teacher Li” — whose account “Teacher Li is Not Your Teacher” regularly exposes human rights abuses by the Chinese Communist Party. Li stated that he and his team had faced years of transnational harassment and intimidation, and welcomed Italy’s action as a defense of democratic principles and the rule of law.

The case also drew attention to a separate cyberattack on Italy’s Interior Ministry in February, in which hackers attempted to access information on Chinese dissidents and Italian officials investigating Chinese organizations. A prior attack between 2024 and 2025 allegedly resulted in the theft of data on approximately 5,000 Italian police officers holding sensitive positions.

The phenomenon is not limited to Italy. In France, the rights group Safeguard Defenders previously identified at least four clandestine Chinese police stations in the greater Paris area, part of a global network of over 100 such outposts spanning 53 countries. French authorities confirmed the closure of nine such stations and issued expulsion orders against at least two individuals linked to their operation.

These stations, ostensibly offering administrative assistance to overseas Chinese communities, are widely reported to be used for pressuring dissidents and coercing individuals into returning to China.

Source: Radio France International, March 10, 2026
https://rfi.my/CVxq

Briefings | | |   Geo-Strategic Trend

China’s Military Issues New Reserve Personnel ID Cards

Starting March 1, the Chinese People’s Liberation Army (PLA) began issuing a new unified identity document — the “PLA Reserve Personnel Certificate” — following approval from the Central Military Commission.

According to China Central Television’s military channel, the new certificate serves as an official form of identification for reserve personnel. Each card carries a unique, system-generated identity number and is issued to reserve officers, sergeants, and soldiers who are serving in the PLA under the country’s Reserve Personnel Law.

Zhang Yaokui, a professor at the PLA’s National Defense University Joint Operations College, explained that the new certificate formally recognizes the status of reserve personnel by both the Chinese government and military. It provides unified proof of enrollment in reserve forces and replaces the previously issued “PLA Reserve Officers Certificate,” which has now been officially abolished.

Zhang noted the certificate serves practical purposes in both peacetime and wartime. In peacetime, it facilitates participation in military training, readiness duties, and non-combat military operations. In wartime, it enables the swift mobilization and deployment of reserve personnel. It also helps reserve members access relevant welfare benefits, compensation, and preferential treatment as provided by law.

Zhang further emphasized that PLA reserve personnel hold a dual identity — they are both civilians and soldiers. In ordinary times, they work across various sectors of society as regular citizens. However, when called upon, they are required to put on their uniforms and fulfill their military obligations.

The rollout of this new credential is seen by analysts as a meaningful step in streamlining the mobilization process and strengthening the institutional framework governing China’s reserve forces.

Source: Central News Agency (Taiwan), March 3, 2026
https://www.cna.com.tw/news/acn/202603030108.aspx

Briefings | | |   Defense/Military

China’s Solar Industry Battles Severe Overcapacity Amid Calls for Structural Reform

China’s solar energy sector is grappling with one of the most acute cases of “involution” — the term used to describe destructive, low-return competition — in the country’s economy today. While global annual demand for new solar capacity stands at approximately 700 gigawatts (GW), China’s domestic production capacity has ballooned to around 1,400 GW, roughly double what the world needs each year.

During China’s annual “Two Sessions” legislative meetings, Zhong Baoshen, chairman of leading solar manufacturer LONGi Green Energy and a delegate to the National People’s Congress, called for the establishment of a capacity exit mechanism to help the industry escape its current downward spiral. He warned that after China’s newly installed solar capacity peaks at over 300 GW in 2025, installations could face a cyclical decline in 2026, with the structural imbalance between supply and demand still unresolved.

Zhong proposed using efficiency standards as a benchmark — specifically photovoltaic conversion rates — to guide the retirement of outdated production capacity and align industry-wide output with actual market demand. He also criticized companies that lack genuine innovation, relying instead on poaching talent for quick capacity expansion while using non-competitive resources to undercut prices, ultimately squeezing out firms that invest in real technological advancement.

In a notable policy parallel, Zhong urged regulators to apply a framework similar to the real estate sector’s “three red lines” — a set of financial thresholds introduced to curb excessive borrowing among property developers. He recommended monitoring solar companies’ debt-to-asset ratios, net debt levels, and short-term repayment ability, imposing financing restrictions on non-compliant firms and encouraging industry consolidation.

On the policy front, China’s Ministry of Finance has already announced the elimination of VAT export tax rebates for solar products, effective April 1, a measure industry experts view as a signal against cutthroat, low-price competition in overseas markets.

Source: Central News Agency (Taiwan), March 4, 2026
https://www.cna.com.tw/news/acn/202603040248.aspx

Briefings | | |   Economy/Resources

China’s Belt and Road Initiative Investments in Africa Hit Record Highs Amid Global Trade Tensions

Africa emerged as the top destination for Chinese Belt and Road Initiative (BRI) investment in 2025, marking what analysts describe as the most active year for the initiative since its launch in 2013. According to a joint report released on January 18 by Griffith University’s Asia Institute and Fudan University’s Green Finance and Development Center, China’s total investment and construction contracts in Africa surged to $61.2 billion in 2025, a staggering 283 percent year-on-year increase, pushing Africa ahead of the Middle East as the initiative’s largest recipient region.

The report attributes the growth primarily to large-scale infrastructure projects financed through Chinese policy banks, including the Export-Import Bank and the China Development Bank. Unlike earlier BRI investments focused narrowly on roads and bridges, 2025’s projects are more deeply integrated with industrial parks and local resource development, aligning with African nations’ demands for domestic value chain upgrades.

The year was described as both the “dirtiest and greenest” for Chinese energy engagement in Africa. Fossil fuels remained central, with a $23 billion (approximately $23 billion USD) investment agreement in the Republic of Congo aimed at boosting oil output, and a $20 billion (approximately $20 billion USD) natural gas industrial park deal in Nigeria. At the same time, investment in copper, cobalt, and other critical minerals reached a record $32.6 billion, while green energy projects, including solar, wind, and a major green hydrogen initiative in Nigeria led by LONGi Green Energy, saw significantly increased activity.

Africa is also serving as a strategic manufacturing hub for Chinese firms seeking to sidestep U.S. tariffs. Morocco, benefiting from a U.S. free trade agreement and facing only a 10 percent U.S. tariff rate, has attracted a wave of Chinese factory relocations, including Bowey Alloys’ $150 million special alloy materials plant and Hangzhou Radix Energy’s $30 million automotive bearing facility in Tangier.

From 2013 through end-2025, cumulative BRI construction contracts totaled $837 billion and non-financial investment reached $561 billion, bringing total engagement to $1.399 trillion. The report anticipates continued expansion in 2026, focused on energy, mining, and emerging technologies.

Source: Radio France International, February 27, 2026
https://rfi.my/CTr1

Briefings | | |   Geo-Strategic Trend

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

Briefings | | |   Defense/Military

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

Briefings | | |   Geo-Strategic Trend

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

Briefings | | |   Economy/Resources