Chinascope – Page 3

China’s Credit Card Numbers Keep Falling Despite New Interest Subsidies

China’s central bank has rolled out fresh incentives to boost consumer spending, including subsidies on interest for credit card installment payments. Yet newly released data show the number of credit cards in circulation continues to shrink.

According to the People’s Bank of China’s latest payment system report, the combined total of credit and debit cards nationwide stood at 677 million by the end of the second quarter of 2026 — down 10 million from the first quarter. The figure has now declined for 15 consecutive quarters, falling by 130 million cards from its peak of 807 million at the end of the third quarter of 2022.

Mainland media outlet Economic Daily attributes the drop to the rise of mobile payments and online credit. Where consumers once relied almost exclusively on credit cards for small transactions and everyday spending, apps like WeChat Pay and Alipay, along with lightweight credit tools such as Huabei and Baitiao, now integrate seamlessly into online shopping, food delivery, and ride-hailing — requiring no in-person application or approval wait. Analysts say this convenience has outpaced the traditional, paperwork-heavy credit card.

There has also been a cultural shift: overspending and buying on credit, once seen as markers of a better lifestyle, have fallen out of favor as many younger consumers grow wary of taking on debt.

To stimulate spending, Beijing began subsidizing interest on personal consumption loans last September, initially excluding credit cards. In January, credit card installment billing was added to the subsidy program, and its scope was expanded further in August. Under the policy, any credit card installment purchase now qualifies for interest subsidies, capped at 5,000 yuan (approximately US$745) per borrower, per lending institution, per year.

Source: Central News Agency (Taiwan), September 8, 2026
https://www.cna.com.tw/news/acn/202609080100.aspx

Briefings | | September 10, 2026 | Economy/Resources

CCP Establishes New Central Leading Group to Strengthen Social Governance

The Chinese Communist Party (CCP) has established a new Central Leading Group for Social Governance (中共中央社会治理工作领导小组), headed by Politburo Standing Committee member Cai Qi, to improve cross-departmental coordination, strengthen social governance, and maintain social stability. The group is believed to have been established around the time of the Central Social Work Conference in November 2025, although its existence was publicly disclosed only later by local authorities.

The CCP established the Central Social Work Department in 2023 to oversee social work and grassroots Party-building. Since then, it has strengthened Party-building and management of the 84 million “new employment groups,” including delivery workers, couriers, and ride-hailing drivers. It has also tightened regulation of national industry associations and chambers of commerce.

Cai Qi is believed to head the Central Leading Group for Social Governance, with Li Ganjie, Li Shulei, Chen Wenqing, and Mu Hong serving as deputy heads. Local disclosures subsequently confirmed the group’s establishment. In April, authorities in Henan’s Sheqi County stated that the group’s office was located within the Central Social Work Department, while in August, officials in Zhejiang’s Chun’an County referred to directives from a meeting of the central group.

In July, the CCP Central Committee and the State Council issued guidelines on strengthening social work in the new era, calling for stronger Party influence in emerging sectors, greater Party-building efforts within internet-platform companies, and new approaches to Party-building in technology companies. The guidelines also called for improved petition and complaint-handling mechanisms and for social conflicts to be resolved at the grassroots level before they escalate.

Source: Mingpao, September 8, 2026
https://news.mingpao.com/pns/中國/article/20260908/s00013/1788800364595/中國透視-中央社會治理小組-橫空殺出-蔡奇掛帥-文-劉實

Briefings | | September 9, 2026 | Government/Politics

Chinese Researchers Report Major Advance in Seawater Uranium Extraction

Scientists at the Qingdao Institute of Bioenergy and Bioprocess Technology, part of the Chinese Academy of Sciences, say they have developed new materials for extracting uranium from seawater, with results published in the Journal of Hazardous Materials and Separation and Purification Technology.

The South China Morning Post reported on September 4 that the Chinese method is several times more efficient than a target set by the U.S. Department of Energy, potentially putting China ahead in efforts to tap this vast nuclear fuel source. State-run Science Daily, in a September 2 report on the same findings, described how researchers used a novel molecular design approach to create a phosphate-functionalized porous material called PhosCage, later combined with aramid nanofibers into composite aerogel microspheres (AC-POC) resistant to biofouling.

According to the Science Daily account, PhosCage reached adsorption equilibrium within five minutes in lab tests and achieved a uranium capacity of 50.4 mg/g in real seawater samples — 8.4 times the DOE benchmark. The AC-POC microspheres, tested continuously for 15 days in natural seawater, achieved a dynamic capacity of 22.55 mg/g, 3.8 times the benchmark, while their negative surface charge reportedly suppressed microbial attachment.

The report noted China’s growing reliance on imported uranium, citing World Nuclear Association data showing domestic mines produced 1,600 tonnes in 2024 against reactor demand of roughly 13,000 tonnes. It also recalled earlier, less successful U.S. efforts at Oak Ridge and Pacific Northwest National Laboratories, where costs remained far above land-based mining.

Both outlets noted limitations: tests used only 25 liters (about 6.6 gallons) of near-shore Qingdao seawater in a lab system rather than open-ocean conditions, and neither study priced the recovered uranium. Researchers said future work will focus on scaling up production and cutting costs.

Source: Guancha.cn, September 5, 2026
https://www.guancha.cn/industry-science/2026_09_05_830106.shtml

Briefings | | September 9, 2026 | Information/Technology

China Steps Up Xi Jinping Ideology in School Textbooks

Chinese Vice Premier Ding Xuexiang called for strengthening the Communist Party’s oversight of textbook development, saying schools must “firmly grasp the correct political direction and value orientation,” according to state broadcaster Xinhua. Ding made the remarks at a national textbook conference in Beijing on September 8.

Ding said China should deepen its grasp of education’s “political, people-oriented, and strategic attributes” and accelerate building a textbook system with “Chinese characteristics.” He called for using “Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era” to shape students’ values, and for stricter management of textbook editing, review, and selection.

Separately, the Party mouthpiece People’s Daily ran a front-page article the previous day describing textbooks as a matter of “state authority” supporting China’s push to become an “education powerhouse.” According to the article, unified textbooks for morals and rule of law, Chinese language, and history now cover all school levels nationwide, with a revision process begun in 2022 completed this fall. A student reader based on Xi’s ideology has been used nationwide since 2021, purportedly fostering student “identification with and confidence in” Communist Party rule.

The article noted a new section, “the CCP as the mainstay of the war of resistance,” was added to a history-textbook chapter on the victory over Japan. It also said a university-level textbook on “socialist political economy with Chinese characteristics,” incorporating Xi’s policy concepts, has been piloted at more than 40 universities since spring 2025. China’s education ministry reportedly aims to complete a self-directed textbook system covering 29 academic disciplines by 2030, alongside a separate biology-textbook initiative involving over 50 academicians.

Source: Central News Agency (Taiwan), September 8, 2026
https://www.cna.com.tw/news/acn/202609080336.aspx

Briefings | | September 9, 2026 | Government/Politics

Epoch AI: Huawei Won’t Be Able to Catch Up with Nvidia by 2030

Epoch AI published an analysis of Huawei’s AI chip roadmap through 2031, concluding that Huawei is unlikely to catch up with Nvidia in AI computing capacity by 2030. U.S. export controls continue to limit Huawei’s access to advanced semiconductor manufacturing and high-bandwidth memory (HBM), constraining both chip performance and production capacity.

Growing compute gap: Epoch AI estimates that Huawei will produce less than 4 percent as much AI compute as Nvidia in 2026. If Huawei relies entirely on domestically produced HBM, its output could fall to around 1 percent of Nvidia’s by 2028.
Key bottleneck—HBM: Huawei’s immediate challenge is access to sufficient HBM. As China expands domestic HBM production, the bottleneck is expected to shift from memory supply to chip performance. Even a major increase in HBM production may not close the gap, as Nvidia is simultaneously advancing its chips and adopting more advanced manufacturing processes.
Huawei’s strategy: Huawei plans to improve its AI chips through higher performance, greater connectivity among chips, and more efficient software utilization. Epoch AI estimates that Huawei’s chips could remain roughly three to four years behind Nvidia through 2030.
LogicFolding technology and potential limitations: Huawei’s longer-term strategy centers on LogicFolding, a 3D chip-stacking technology designed to increase transistor density without requiring the most advanced lithography equipment. The technology is not expected to reach Huawei’s Ascend line until 2030. Nvidia is also developing stacked-logic technology and may deploy it earlier, potentially limiting Huawei’s ability to gain a lasting technological advantage.

Overall, U.S. export controls appear to be slowing rather than stopping China’s AI chip development. Huawei could narrow the gap through advances in 3D stacking, software, manufacturing, and domestic supply chains. However, based on current technology and production trends, Epoch AI concludes that Huawei is unlikely to match Nvidia’s AI computing capacity by 2030.

Source: Epoch AI, September 4, 2026
https://epoch.ai/publications/huaweis-roadmap-to-2031

Briefings | | September 8, 2026 | Information/Technology

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 | | September 8, 2026 | @CS Geo-Strategic Trend

Chinese Article: China-Japan Air Routes Shrink Sharply Amid Deteriorating Relations; Takaichi Blamed

A Chinese article claimed that Beijing’s restrictions on travel to Japan are having the intended effect. {Editor’s Note: The article attributed the suspension of numerous air routes primarily to a decline in Chinese tourists traveling to Japan. However, there have been reports that the Chinese government instructed travel agencies to stop group tours to Japan and airlines to cancel flights. The following is the briefing of the article.}

China-Japan air travel, traditionally extremely busy during the August summer travel season, has experienced a sharp contraction in 2026. In August, 1,120 flights were reportedly canceled and 18 routes suspended, with the cancellation rate exceeding 30 percent. The decline follows an even sharper contraction in June, when 25 routes were suspended and 1,488 flights canceled, resulting in a cancellation rate of 37.5 percent. Major destinations such as Nagoya, Fukuoka, Sapporo, and Osaka have seen repeated route suspensions. The overall China-Japan air market remains well below its pre-pandemic level.

Japanese Ambassador to China Kenji Kanasugi acknowledged the deterioration in bilateral relations during an August 25 live broadcast on TV Asahi. He said he had initially hoped the APEC meeting in Shenzhen in November could help ease tensions but now had little expectation of improvement. Embassy officials have found it increasingly difficult to meet Chinese government officials and business leaders, while formal meetings have become difficult to arrange. Kanasugi also told Kyodo News in May that substantive dialogue with Chinese officials had effectively been absent for some time.

The deterioration is closely linked to Japanese Prime Minister Sanae Takaichi’s increasingly assertive position on Taiwan. Her remarks linking a Taiwan contingency to Japan’s national survival, along with her emphasis on defense expansion and closer alignment with the United States, have further strained relations. Beijing has responded with measures including tighter controls on rare-earth exports, potentially affecting Japan’s automotive, electronics, and precision-machinery industries.

Source: NetEase, September 5, 2026
https://www.163.com/dy/article/L62TGFRM05567B6B.html

Briefings | | September 8, 2026 | Economy/Resources Geo-Strategic Trend

Xi Jinping’s Real Strength: Party Power, Not Modern Governance

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The Red Coup – China’s Hostile Takeover of Free-World Education

Chinese-Language Reports on the CCP’s September 3 Military Parade