Skip to content

@CS

Leaked Documents Show China Used Aid to Buy Other Countries’ Support to Suppress Taiwan

Taiwanese media outlet SET News obtained documents allegedly leaked from China’s diplomatic system that appear to show Beijing offering financial assistance to secure diplomatic support against Taiwan. One set of documents concerns Micronesia, while another reportedly involves the African Union. SET News said the documents provide the first apparent Chinese official documentation of Beijing using financial assistance to obtain diplomatic support and restrict Taiwan’s international space.

The documents were allegedly leaked by an insider within China’s diplomatic system and circulated on the dark web through an X account called “hCharizard.”

According to the leaked documents, in late March, the Chinese Embassy in Micronesia sent a diplomatic note asking Micronesia to support Beijing’s position on Taiwan at the 79th World Health Assembly (WHA), including by submitting a letter prepared by China. On April 8, Micronesia’s Foreign Ministry replied that it had submitted the letter, signed by Health and Social Affairs Minister Marcus Samo, supporting the “one-China” principle and opposing Taiwan’s participation in the WHA.

Taiwan’s participation proposal was subsequently rejected at the May 18–23 WHA, marking its 10th consecutive year of exclusion.

The leaked documents also showed a June 10 diplomatic note from the Chinese Embassy offering Micronesia RMB 1 million (US$149,000) in aid, with the funds specifically designated for purchasing one to three Chinese-brand VIP vehicles for the Micronesian Foreign Ministry. Transportation and maintenance costs could also be covered. On June 23, Micronesia’s Foreign Ministry agreed to the revised donation agreement and said it would arrange its signing as soon as possible.

Another batch of documents reportedly shows China proposing RMB 200 million (US$ 28 million) in assistance to the African Union, along with possible request for additional funding.

Source: SET News (Taiwan), September 7, 2026
https://www.setn.com/news/1902651

Briefings | | |   @CS Geo-Strategic Trend

China’s Gains and Costs from the Ukraine War and U.S.-Iran Conflict

Since the Ukraine crisis began in 2022, along with intensifying U.S.-Iran tensions and disruptions to Red Sea shipping, global geopolitical and economic structures have undergone major realignment. Beijing has maintained a “non-direct involvement” strategy, avoiding direct participation while benefiting from the disruptions. In the short term, China has gained advantages in energy, market share, renminbi internationalization, and strategic relief. However, China is likely to face significant long-term costs from Western sanctions, declining trust in Chinese companies, and worsening security conditions in East Asia.

China’s main benefits include:

  • Energy: China has become Russia’s largest energy customer after Europe reduced its imports of Russian energy. Discounted Russian oil and gas have provided China with lower-cost energy while creating opportunities for Chinese companies.
  • Market Share in Russia: Chinese firms have expanded rapidly in Russia as Western companies withdrew. China-Russia trade increased from about $100 billion before the war to more than $240 billion, while Chinese automakers now hold more than 60 percent of Russia’s auto market and Chinese smartphones account for more than 70 percent.
  • Renminbi Settlement: The war has accelerated yuan-based trade settlement. More than 90 percent of China-Russia trade is now reportedly settled directly in yuan and rubles, compared with less than 2 percent before the war.
  • Strategic Relief: Conflicts in Ukraine and the Middle East have consumed substantial Western military resources, potentially easing immediate U.S. and NATO pressure on China in the Indo-Pacific.

China also faces significant costs:

  • Western Secondary Sanctions: U.S. and Western sanctions are increasingly targeting third-country companies supplying Russia and Iran with dual-use technologies and other materials. Hundreds of Chinese and Hong Kong entities have been placed on U.S. sanctions or export-control lists, while the threat of secondary sanctions has prompted major Chinese banks to tighten or suspend some Russia- and Iran-related transactions.
  • Loss of Western Trust and Accelerating “De-risking” from China: Beijing’s support for Russia has accelerated European efforts to de-risk from China, potentially threatening access to China’s much larger Western markets. Chinese investments and infrastructure projects in the Middle East also face greater risks from conflict, including disruptions to construction, logistics, energy projects, and exports.
  • Worsening Northeast Asian Security Environment: The deteriorating security environment is a long-term concern. The growing military partnership between Russia and North Korea has strengthened Pyongyang’s position and could reduce Beijing’s influence over North Korea. Meanwhile, closer U.S.-Japan-South Korea security cooperation and deeper bloc-based confrontation could leave China facing a more militarized and polarized neighborhood.

Source:  Epoch Times, August 20, 2026
https://www.epochtimes.com/gb/26/8/20/n14833109.htm

Briefings | | |   @CS Geo-Strategic Trend US-China Relations

China Seeks to Overturn Missouri’s $24.5 Billion COVID-19 Judgment

Hubei Province and the Chinese Academy of Sciences have hired the U.S.-based global law firm White & Case to challenge a $24.5 billion default judgment awarded to Missouri over China’s handling of the COVID-19 pandemic. On August 31, the two Chinese entities asked a federal court in Missouri to set aside the judgment and dismiss the lawsuit. White & Case has assigned Washington-based senior litigation partner Christopher Curran, who has represented foreign governments in U.S. courts, to the case.

Missouri filed the lawsuit in April 2020, accusing China, the Chinese Communist Party, Hubei and Wuhan authorities, the Wuhan Institute of Virology, and other Chinese entities of concealing information about COVID-19 and hoarding personal protective equipment (PPE), contributing to shortages and higher prices in the United States. A federal court initially dismissed the case under the Foreign Sovereign Immunities Act, but the Eighth Circuit Court of Appeals revived Missouri’s PPE-hoarding claim in 2024.

After the Chinese defendants failed to appear in court, U.S. District Judge Stephen N. Limbaugh Jr. issued a default judgment in March 2025. The court initially awarded about $8.16 billion in compensatory damages, with the total subsequently increasing to approximately $24.5 billion under applicable federal law. Missouri Attorney General Andrew Bailey said the state would seek to enforce the judgment by targeting Chinese-owned assets, potentially including farmland in Missouri.

Missouri has argued that China’s challenge comes too late and vowed to continue pursuing the judgment.

Source: Epoch Times, September 1, 2026
https://www.epochtimes.com/gb/26/8/31/n14840304.htm

Briefings | | |   @CS US-China Relations

Japan’s Pro-China Lawmakers Visit China to Improve Bilateral Ties, but Beijing Lectures Them Instead

A bipartisan group of Japanese lawmakers recently visited Beijing in an effort to restore political exchanges amid deteriorating Japan-China relations. The delegation included Shinichi Isa of the Centrist Reform Alliance, Gaku Hashimoto of the Liberal Democratic Party, and lawmakers from Komeito. Many of the delegates are considered relatively China-friendly and maintain some distance from Prime Minister Sanae Takaichi’s government.

But Beijing offered no apparent concessions. Instead, Lu Kang, a deputy head of the Chinese Communist Party’s International Department, told the delegation that Beijing had no intention of changing its current Japan policy unless Takaichi reverses her November parliamentary remarks that “a Taiwan contingency is a contingency for Japan.” The message was clear: Beijing is prepared to improve bilateral relations, but expects Japan to make concessions first.

Japanese commentator Akio Yaita criticized the lawmakers’ visit as a diplomatic miscalculation, arguing that Beijing used the meeting to pressure Tokyo rather than offer substantive concessions on issues such as export controls. He said Japan needs dialogue with China, but such engagement should be based on mutual respect. If Beijing believes Japan is eager to improve relations, he warned, it may demand a high price and repeatedly humiliate Japan.

Source: Liberty Times (Taiwan). August 29, 2026
https://news.ltn.com.tw/news/politics/breakingnews/5556051

Briefings | | |   @CS Geo-Strategic Trend Government/Politics

Beijing Claims China’s Cooperation with Iran Is Legitimate and Should Not Be Disrupted

On August 24, the United States launched Operation Economic Outcast, a new campaign aimed at economically isolating Iran and targeting its financial and commercial networks. The Trump administration also warned countries and entities continuing to support Iran that they could face U.S. sanctions.

Xinhua News Agency reported China’s response, emphasizing that its cooperation with Iran has always been conducted within the framework of international law.

At a regular press briefing on August 25, Chinese Foreign Ministry spokesperson Lin Jian said China has repeatedly expressed its firm opposition to unilateral sanctions that lack a basis in international law and have not been authorized by the UN Security Council.

Lin said economic warfare and “maximum pressure” would not help resolve disputes but would instead further intensify tensions and conflicts, create spillover risks, disrupt the global economic and financial order, and harm the legitimate rights and interests of other countries. He said the immediate priority should be to de-escalate the situation and return to dialogue and negotiations as soon as possible.

Lin said China’s cooperation with Iran has always been conducted within the framework of international law and should not be interfered with or disrupted. He added that China is closely monitoring relevant developments and will take all necessary measures to firmly safeguard its rights and interests.

Source: Xinhua, August 25, 2026
https://www.news.cn/world/20260825/4f45e922e10649b29e9a0c89bbaf83d6/c.html

Briefings | | |   @CS US-China Relations

China Claims Resilience to Iranian Crude Disruption, but Its Arguments Are Questionable

China is playing down the impact of disruptions to Iranian oil exports, despite Iran supplying a significant share of China’s crude imports. People’s Daily recently published an article titled “The Energy Supply Must Remain in Our Own Hands,” arguing that China has demonstrated “remarkable resilience” despite the prolonged closure of the Strait of Hormuz and disruptions to Middle Eastern energy supplies.

The first part of the article focused on Shandong Province, home to many of China’s small, privately owned “teapot” refineries. It claimed that Shandong has sufficient oil supplies for two main reasons: First, although imports from the Middle East have declined this year, Chinese companies avoid significant disruptions via strengthened energy cooperation with countries including Brazil and Canada. Second, technological advances at the Shengli Oilfield in Shandong, including improved recovery rates and expanded shale-oil production, have increased domestic oil output to 23.71 million tons in 2025, a recent high.

However, Chinascope’s research suggests that making up the Iranian crude loss could be difficult. Chinese media outlet Sina reported that Shandong’s independent refineries rely heavily on crude from the Middle East, Africa, and Russia, importing more than 100 million metric tons in 2024 {2}. Reuters estimates that China receives about 1.4 million barrels of Iranian crude per day, equivalent to roughly 70 million metric tons annually {3}. China imported about 108 million tons from Russia and 44 million tons from Brazil in 2024 {4}, while Canadian crude imports reached 15.5 million tons in 2025 {5}. It would therefore be difficult for increased imports from Brazil and Canada to quickly replace the volume of Iranian oil potentially lost because of U.S. sanctions.

The second argument—rising domestic production—also appears insufficient to offset the potential shortfall. Shengli Oilfield’s output increased from 23.45 million tons in 2023 {6} to 23.59 million tons in 2024 {7} and 23.71 million tons in 2025. The 2025 increase was only about 120,000 tons, or 0.5 percent, from the previous year. That increase is negligible compared with the potential loss of Iranian supplies. Even Shengli’s entire annual production is only about one-third of the roughly 70 million tons of Iranian crude China imports annually.

These figures suggest that Beijing’s claim of “oil resilience” may be overstated and serves more as a propaganda message.

Sources:
1. People’s Daily, August 24, 2026
https://paper.people.com.cn/rmrb/pc/content/202608/24/content_30176622.html
2. Sina, December 29, 2025
https://finance.sina.com.cn/roll/2025-12-29/doc-inhemcnw8134191.shtml
3. Reuters, January 20, 2025
https://www.reuters.com/markets/commodities/chinas-crude-oil-imports-top-supplier-russia-reach-new-high-2024-2025-01-20/
4. Guru Focus, March 10, 2026
https://www.gurufocus.com/news/8692925/china-buys-155m-tons-of-canadian-oil-in-2025-as-shipments-jump-168?utm_source=chatgpt.com
5. Reuters, August 21, 2026
https://www.reuters.com/business/energy/iranian-oil-offers-chinese-buyers-fall-us-blockade-bites-sources-say-2026-08-21/6. China National Radio, January 14, 2024
https://news.cnr.cn/native/gd/20240114/t20240114_526557375.shtml
7. National Bureau of Statistics, January 17, 2025
https://www.stats.gov.cn/sj/zxfb/202501/t20250117_1958326.html

Briefings | | |   @CS Economy/Resources

DeepSeek Cited Fabricated Research to Support Health Claims, Blogger Found

A health-content creator recently raised concerns about DeepSeek’s reliability after the AI generated apparently fabricated scientific evidence while helping her write a social media post about chewing and cognitive health in older adults. Asked to base the content on scientific data, DeepSeek claimed that elderly people who chewed more than 30 times a day had a 42 percent lower risk of cognitive decline and provided a purported research citation. The creator, who had reviewed extensive literature on the subject, did not recognize the finding and searched multiple academic databases but found no corresponding study.

When she asked DeepSeek again for scientific evidence linking chewing to improved cognition, the AI generated a longer list of purported research findings, including a claim that chewing was more effective than aerobic exercise twice a week in preventing dementia. Unable to verify the claims, she asked DeepSeek to provide the original English-language papers.

DeepSeek then acknowledged that some of its earlier statements were problematic but supplied three supposedly authoritative studies, including paper titles and DOIs. The creator searched for each title and DOI but could not locate any of the papers as described. Some of the DOIs did not exist, while others corresponded to completely different papers. She concluded that the scientific evidence previously provided by DeepSeek was largely fabricated.

Source: Epoch Times, August 22, 2026
https://www.epochtimes.com/gb/26/8/21/n14834332.htm

Briefings | | |   @CS Information/Technology

CCP Is “Weaponizing” Passports to Pressure Overseas Chinese to Return to China

Reports from overseas Chinese communities allege that Chinese diplomatic missions are increasingly refusing to renew passports for certain Chinese nationals abroad and requiring them to return to China to obtain new documents. A California-based Chinese national known online as Billy claimed on X that the Chinese Consulate General in San Francisco had recently rejected some passport-renewal applications without warning, including cases involving people from Xinjiang. A visa-services intermediary reportedly said that people who entered the United States irregularly or applied for asylum were particularly likely to have their renewal applications rejected.

The reports also allege that Chinese consular officials have subjected some asylum beneficiaries to additional questioning and document requests. One intermediary claimed that officials questioned applicants about their religious beliefs and the basis of their asylum claims and, in some cases, asked them to sign statements suggesting that they had sought asylum primarily to obtain employment in the United States rather than because of persecution. Such statements could potentially be used by Chinese authorities as “evidence” that applicants had fabricated or misrepresented their asylum claims. Immigration lawyers reportedly warned asylum beneficiaries against returning to Chinese consulates to renew their passports, citing potential risks if their asylum claims became known to Chinese authorities.

The reports further raise concerns that returning to China could expose overseas Chinese to exit bans or other restrictions preventing them from leaving the country again. China recently adopted new exit-control rules, and there have been reports that Chinese authorities have already begun blocking some individuals from leaving the country.

Critics argue that restricting passport services could leave overseas Chinese who do not want to return to China in a vulnerable position, particularly if their passports expire and they cannot obtain valid travel documents. If the allegations are widespread, they would suggest that China is using passport and consular services not simply for administrative purposes but as a tool to pressure overseas nationals to return to China—with those who refuse potentially left without a valid Chinese passport.

Source: Vision Times, August 21, 2026
https://www.secretchina.com/news/gb/2026/08/21/1103709.html

Briefings | | |   @CS Government/Politics