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Monthly Archives: October 2026 - 2. page

Scholar: Security-First Policy Under Xi Limits Disruptive Innovation in China

Since Xi Jinping took office, the Chinese Communist Party leader has promoted a holistic approach to national security. At a lecture hosted by National Chengchi University’s International Relations Research Center, scholar Liu Meng-chun of the Chung-Hua Institution for Economic Research argued that this emphasis has reshaped China’s economy and constrained its capacity for breakthrough innovation.

Speaking on whether China’s economy is changing tracks as the 15th Five-Year Plan begins, Liu said security was once discussed mainly in terms of risk perception and policy tone. Since the party’s 20th National Congress, he said, it has become a formal system with continuity, procedures and binding force, and its agenda has expanded from a few sectors to the economy as a whole.

Liu said security has been embedded in law, personnel management and planning. Beijing revised laws including the Anti-Espionage Law and the Law on Guarding State Secrets. Cadres are required to show political reliability, which has pushed grassroots officials from seeking credit to avoiding risk. Strengthening the national security barrier is also listed as a main goal of the 15th Five-Year Plan.

As a result, Liu said, businesses and local governments have become risk-averse and aim to maximize compatibility with national policy, while state resources are concentrated in selected fields. When the government channels resources to private firms, those firms face pressure to conform to policy and meet performance targets. The line between state and private sectors blurs, and unclear property rights discourage long-term private investment. Because innovation is uncertain and rarely pays off quickly, few industries remain viable options.

Liu said China excels at scaling up existing ideas, from “1 to 100,” but struggles with “0 to 1” breakthroughs. Talent is trained to follow rules, and local governments must satisfy national strategy and show results, making imitation and mass replication the safer path.

He cited electric vehicles, solar products and lithium batteries as examples of scaling and commercialization. These sectors now face overcapacity, which he said shows traces of national security thinking throughout “Chinese-style innovation.”

Source: Central News Agency (Taiwan), October 6, 2026
https://www.cna.com.tw/news/acn/202610060196.aspx

Briefings | | |   Information/Technology

China Releases Report on AI-Enabled Cybersecurity Talent Development

A Report on Practical Cybersecurity Talent Capabilities—AI Empowerment Edition was released at the recently held first China Cyberspace Security Conference. The report was guided by the Cybersecurity Discipline Evaluation Group of the State Council Academic Degrees Committee and the Ministry of Education’s Cybersecurity Professional Teaching Steering Committee, with Beihang University, the University of Science and Technology of China, and Yongxin Zhicheng Technology Group serving as lead institutions.

The report found that China’s cybersecurity workforce is characterized by relatively short professional experience, concentrated geographic and industry distribution, and insufficient full-time staffing. It said cybersecurity education in the AI era needs to extend beyond curricula and knowledge systems to practical areas including computing resources, faculty, real-world cases, and hands-on training environments.

The report identifies three major areas of practical cybersecurity work in the AI era: model security, which focuses on protecting AI models, underlying data, and algorithms; AI application security, which addresses new risks arising when models and intelligent agents are integrated into business systems; and AI-enabled cybersecurity, which uses AI to improve the efficiency of vulnerability discovery, security operations, cyberattack and defense, and threat detection.

The report also emphasized that AI efficiency gains do not eliminate the need for professional judgment. Only 58.3 percent of cybersecurity professionals with more than 10 years of experience expressed satisfaction with AI-assisted vulnerability discovery, reflecting higher expectations for AI’s capabilities and reliability. Meanwhile, 68 percent of universities have established AI-related courses as independent required or elective courses. The report called for cybersecurity talent development to become more closely aligned with real-world business and operational needs, with universities, research institutions, cybersecurity companies, and key industries jointly involved in training, evaluation, and talent deployment.

Source: People’s Daily, September 20, 2026
http://finance.people.com.cn/n1/2026/0920/c1004-40802083.html

Briefings | | |   Information/Technology

“Slave Labor Theory” Goes Viral in China, Reflecting Anxiety Among Young Workers

A new concept dubbed the “slave labor theory” has spread across Chinese internet platforms such as Zhihu since September, satirizing low-wage, exploitative working environments. According to Singapore’s Lianhe Zaobao, the theory holds that no matter how advanced a system appears, if even one link relies on “slave labor” practices, the entire system will inevitably deliver low-quality products or services, an application of the “barrel effect,” in which the shortest stave determines how much a barrel can hold. The term refers to low wages, oppressive management and layers of outsourcing.

Netizens cited a collision and fire at a Chinese supercar championship in Shanghai on September 5 as an example. After a car driven by a British driver crashed and caught fire, rescuers reportedly dropped their extinguishers and fled out of fear of the flames, while the ambulance allegedly did not arrive until 15 minutes after being notified, reportedly because its driver had fallen asleep.

Hong Kong 01 reported that many staff at the event were temporary hires lacking systematic training and practical experience. Some claimed on-site workers were security guards hired through multiple layers of outsourcing, paid 60 yuan (about US$8.40) a day. One commenter asked whether anyone could expect such workers to risk their lives for a few dozen yuan.

Netizens also pointed to restaurant kitchen staff spitting in food and café employees clashing with customers, arguing that no matter how upscale a brand appears, long-term high pressure or low pay among intermediate-level staff can severely damage its image.

The report noted that such internet “theories” have proliferated in China in recent years, mostly reflecting the anxieties of young people at the bottom of society. Last year, three such theories went viral: influencer Hu Chenfeng’s “Apple-Android theory,” which sorts people and things by phone operating system and implies foreign products are superior; the “sexual repression theory,” which attributes ordinary relationship problems to sexual repression; and the “laborer all-in theory,” which criticizes some men’s willingness to bankrupt themselves to marry and have children.

On September 22 last year, Chinese authorities launched a “Qinglang” online cleanup campaign targeting content that stirs up negative emotions. The three theories were hit first, with related terms and topics blocked and accounts such as Hu Chenfeng’s banned.

Source: Central News Agency (Taiwan), October 4, 2026
https://www.cna.com.tw/news/acn/202610040161.aspx

Briefings | | |   Social Stability

China Shifts Land-Use Strategy from “Land Finance” to Long-Term Spatial Economic Development

For decades, local governments in China have relied heavily on “land finance”—selling long-term land-use rights to fund rapid infrastructure development and urbanization. However, as the real estate market cools and land-driven growth reaches its limits, urban planners and economists are shifting toward a spatial-temporal framework. This emerging approach treats land not merely as a one-time financial asset, but as a dynamic resource whose value can be optimized across both physical space and longer-term time horizons.

Xinhua News Agency reported that China’s Ministry of Natural Resources says the country’s urban and rural development has entered a stage increasingly reliant on existing land and assets, requiring a shift away from traditional policies focused on expanding land supply. Vice Minister Zhuang Shaoqin said spatial planning should create new opportunities for growth from existing resources and shift the development model from “land finance” toward higher-quality “spatial-temporal economics.”

During the “15th Five-Year Plan” period, China will seek to make better use of existing land and spatial assets by increasing their value through safety, coordination, intensive use, distinctive development, and resource sharing. Officials said local governments should unlock the value of distinctive resources, revitalize underused spatial assets, optimize functional layouts, and develop innovative industrial communities, business districts, and high-quality living areas.

Vice Minister Zhang Wentong said land policy would also shift from one-time land sales toward long-term asset management. The realization of resource value would move from relying primarily on immediate returns to combining current income with long-term operating revenue. The government plans to coordinate market mechanisms with government policies and strengthen efforts to revitalize existing assets, using new demand to drive new supply and new supply to generate new demand as part of broader urban renewal efforts.

Source: Xinhua, September 22, 2026
https://www.news.cn/politics/20260922/64b4dfa598074ed9963419d5c23ee651/c.html

Briefings | | |   Economy/Resources Government/Politics

More South Koreans Express Concern Over Chinese Imports Under the China-Korea FTA

South Korea is facing growing criticism over the industrial impact of its free trade agreement (FTA) with China as Chinese manufacturing has rapidly upgraded. The former complementary relationship—South Korea supplying components while China handled assembly and processing—is shifting as Chinese intermediate goods increasingly penetrate the Korean market. Korean media have warned that lower-priced Chinese products are putting pressure on domestic manufacturers, particularly in electronic components, auto parts, machinery, and consumer goods.

Park Seung-chan, director of the China Business Research Institute and a professor at Yongin University, wrote in January that more than 80 percent of South Korea’s exports to China had historically consisted of intermediate goods. As China’s manufacturing sector has advanced, Korean exports of materials, components, and equipment to China have declined, while Chinese intermediate goods have gained market share in South Korea.

Korean businesses are also concerned about China’s regulatory environment. As South Korea and China negotiate a second phase of the FTA covering services and investment, Korean media have noted that China today is substantially different from when the FTA took effect in 2015. While China promotes greater market opening, it has also strengthened economic-security regulations, including anti-espionage and data-security laws. Korean companies may still face administrative delays, distribution restrictions, and preferential treatment for Chinese state-owned enterprises.

South Korean lawmaker Choi Soo-jin described the FTA’s 10-year record as marked by “three consecutive years of trade deficits (from 2023 to 2025)” and damage to domestic manufacturing. The debate has increasingly shifted from the FTA’s tariff benefits to how South Korea can maintain domestic manufacturing competitiveness as China’s industrial capabilities expand.

Source: Creaders.net, September 27, 2026
https://news.creaders.net/world/2026/09/27/3052003.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

European Intelligence Agencies Reportedly Examine Global CEOs Dinner Club Over Possible CCP United Front Links

The Global CEOs Dinner Club, a self-described nonprofit social organization that brings together business leaders and political figures in Brussels, is seeking to expand into France. According to Euronews, a Western intelligence official said the club’s activities have characteristics associated with influence-building and intelligence gathering and resemble tactics used by the Chinese Communist Party’s (CCP’s) United Front. French investigative outlet La Lettre reported that the organization has attracted the attention of Western intelligence agencies and raised concerns among senior European officials.

The club was founded in Brussels in March 2025 by Yifei Yang, who previously studied in China and at a private European institution in Nice, France. Yang denied that China is behind the organization, telling Euronews, “We are neutral.” She said the club’s goals are to “have an impact on society” and “build sustainable businesses.” The club currently has about 20 members from France, Belgium, Denmark, Japan, China, and Singapore, with annual membership fees of €2,400 for individuals and €5,000 for companies. Yang said 10 percent of the club’s revenue is donated to NGOs and charities.

Since its establishment, the club has organized events bringing together business figures and people connected to Belgian and EU politics to discuss topics including sustainability, diversity, technology, AI, and semiconductors. In June, it hosted an event at Brussels’ Hotel Amigo titled “Exploring the Future of AI and Semiconductors,” featuring Matthias Diependaele, Minister-President of the Flemish Government, and Luc Van den hove, former CEO and current president of Belgian semiconductor research center imec. The club is also planning to expand into France, including a women executives’ event reportedly scheduled for November at the Hôtel de Crillon in Paris.

A Western intelligence official declined to confirm whether their agency is investigating Yang but said the activities described were consistent with United Front methods. A reliable source reportedly also confirmed to Belgian Dutch-language newspaper De Morgen that European intelligence agencies are examining the club’s founder, particularly amid growing European concerns over the strategic importance of semiconductors.

Source: Aboluo, October 2, 2026
https://www.aboluowang.com/2026/1002/2440831.html

Briefings | | |   Defense/Military Geo-Strategic Trend Government/Politics

Chinese Brokerages in Hong Kong Tighten Curbs on Mainland Investors as Beijing Moves to Stem Capital Outflow

A growing number of Hong Kong brokerages are restricting mainland Chinese investors from trading in the city’s stock market, in what is part of Beijing’s broader effort to prevent capital from flowing out of the country, according to a report by Chinese financial outlet Yicai.

Under the new rules, mainland investors who log into their Hong Kong accounts from a mainland IP address can only sell holdings and withdraw funds. They cannot deposit money or buy stocks. Investors logging in from Hong Kong IP addresses are unaffected. The restrictions began at Xingzheng International on September 7 and at Guotai Junan International on September 26, while Orient Financial Holdings will follow in October. Several firms also no longer open new accounts for people holding only mainland identification.

Industry sources attribute the changes to an enforcement plan issued in May by the China Securities Regulatory Commission and seven other agencies. It sets a two-year period of intensive enforcement, after which offshore firms must fully shut down mainland-facing websites and trading services. Online brokers Futu, Tiger and Longbridge adjusted their mainland business in June. Analysts note that mainland residents’ annual $50,000 foreign-exchange allowance cannot legally be used for overseas securities investment, which is the policy’s underlying rationale.

Not all firms have acted. China Merchants Securities International and Huatai International still allow normal buying, and some foreign institutions are waiting to see how enforcement unfolds.

Officials are steering investors toward approved channels: Stock Connect, the Qualified Domestic Institutional Investor scheme and the Cross-boundary Wealth Management Connect. A Hong Kong-based analyst said all three have limits, including tight QDII quotas, a Greater Bay Area restriction on wealth connect, and a 500,000 yuan ($70,000) threshold for Stock Connect. Impact on Hong Kong’s stock market is expected to be limited.

Source: Yicai, October 1, 2026
https://www.yicai.com/news/103383593.html

Briefings | | |   Economy/Resources

Iranian TV Commentator: China Halted Covert Satellite Support to Tehran

Mehdi Kharratian, an Iranian state TV pundit reportedly close to Iran’s security establishment, said China had provided Tehran with covert assistance, including satellite imagery that helped Iran target U.S. naval forces. Kharratian said the support was halted after details of the assistance emerged in the media. He cited a Wall Street Journal report as the reason China stopped the support.

Kharratian said the satellite imagery had helped Iran target an American destroyer and suggested that Chinese entities had provided the imagery. The Wall Street Journal reported in September that U.S. officials had linked high-resolution satellite imagery obtained by Iran from Chinese entities to a deadly Iranian strike on a U.S. base in Jordan. The report also said U.S. officials were examining whether Chinese assistance was helping Tehran track and target American warships. Washington did not accuse the Chinese government itself of directly providing the imagery.

Kharratian also said China had become increasingly reluctant to engage openly with Tehran because of Iran’s confrontation with Washington. He said China had reportedly told Iranian officials, “Do not come to us until you resolve your problem with the United States,” while portraying Beijing as willing to continue working with Tehran behind the scenes but wary of the political risks of visible cooperation.

Source: Iran International TV, October 4, 2026
https://www.iranintl.com/en/202610046693

Briefings | | |   Defense/Military Geo-Strategic Trend US-China Relations