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

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Taiwan President Lai Ching-te Announces “National Security Action Plan to Safeguard the Democratic Taiwan”

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

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

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CNA: Google and Blackstone Launch New AI Company to Challenge Nvidia

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, Google and Blackstone Group plan to jointly establish an artificial intelligence (AI) cloud company using Google’s proprietary chips. Blackstone Group, the world’s largest alternative asset management firm, is expected to invest US$5 billion in equity and hold a majority stake in the unnamed startup.

Sources familiar with the matter revealed that Google will provide the new company with software, services, and hardware, including a dedicated chip known as a Tensor Processing Unit (TPU). Google senior executive Benjamin Treynor Sloss will become the new company’s CEO.

This is Google’s largest attempt to date to sell its self-developed chips and commercialize them. This move will intensify the direct head-to-head competition between Google and Nvidia, the dominant player in the AI computing market.

As the computing power required to train and run advanced AI models reaches unprecedented levels, Google and Blackstone Group decided to join forces. Currently, most large AI companies rely on the computing infrastructure built around Nvidia-based chips, at least to some extent.

Source: CNA, May 19, 2026
https://www.cna.com.tw/news/ait/202605190035.aspx

Briefings | | |   Information/Technology

People’s Daily: Global Sixth-Generation Fighter Development Advances Amid Competition and Uncertainty

People’s Daily republished an article from China’s National Defense Newspaper examining global trends in the development of sixth-generation fighter aircraft.

Amid ongoing regional conflicts, rapid advances in artificial intelligence, and shifting national strategies, sixth-generation fighter development is entering a phase marked by both urgency and uncertainty, with major powers accelerating programs despite high costs and coordination challenges.

The UK, Japan, and Italy are advancing the Global Combat Air Programme (GCAP), recently awarding a £686 million ($930 million) contract and moving into coordinated development, while seeking additional partners such as Canada to share costs. The United States is pursuing parallel Air Force (F-47) and Navy (F/A-XX) programs, both receiving renewed prioritization and funding. In contrast, the France–Germany–Spain-led FCAS project remains stalled due to disagreements over design and industrial roles.

Although there is no unified definition of a sixth-generation fighter, most concepts emphasize advanced stealth, AI-assisted decision-making, and manned–unmanned teaming. Development is shifting from single-platform performance toward integrated, multi-domain combat systems capable of real-time coordination across land, sea, air, space, and cyber domains. At the same time, some countries are pursuing joint development to enhance long-term defense autonomy and reduce reliance on platforms such as the F-35.

Source: People’s Daily, April 22, 2026
http://military.people.com.cn/n1/2026/0422/c1011-40706277.html

Briefings | | |   Defense/Military

Report Alleges China’s State Security Unit Targets Catholic Church and Vatican Ties

An article published by Modern Diplomacy, a media outlet in Europe, claims that a unit within China’s Ministry of State Security, known as the “9th Bureau,” plays a central role in controlling religious affairs and conducting related intelligence operations. The report describes the bureau as monitoring underground churches and treating Vatican-linked institutions as channels of foreign influence.

According to the article, clergy who refuse to join the state-controlled Chinese Catholic Patriotic Association face pressure to comply, including efforts to merge the underground churches into the official system. The objective is described as aligning religious activities with state directives and reducing the Vatican’s influence over Chinese Catholics.

The report also alleges that China’s security apparatus has carried out cyberattacks targeting Vatican email systems and Catholic organizations in Hong Kong during sensitive negotiations over bishop appointments, with the aim of gaining leverage in talks.

It further states that Chinese authorities monitor Taiwan’s Catholic community and its ties with the Vatican, and may seek to weaken these connections, raising concerns about implications for religious freedom and Taiwan’s international space. Source: Set News (Taiwan), May 4, 2026
https://www.setn.com/News.aspx?NewsID=1832948

Briefings | | |   @CS Government/Politics

PLA Introduces New Logistics Supply Model to Improve Material Support Efficiency

People’s Daily republished an article from the People’s Liberation Army (PLA) Daily reporting that, since last year, the Central Military Commission’s Logistics Support Department has launched pilot programs to optimize military logistics and address difficulties faced by frontline units in obtaining supplies.

The reform introduces a system of “autonomous requisition within quotas, and application-based requisition beyond quotas,” allowing units to directly obtain supplies within set limits from nearby storage facilities without multiple approvals, while excess requests follow standard procedures.

The new model enables digital, end-to-end management of supply allocation. Units can independently request items such as rations and medical supplies, while support departments can forecast demand and allocate resources more precisely, with improved transparency throughout the process.

It also aims to accelerate response times, shifting from a traditional annual planning model to an “on-demand, rapid response” system, reducing supply cycles from weeks or months to days or hours.

Source: People’s Daily, May 14, 2026
http://military.people.com.cn/n1/2026/0514/c1011-40719541.html

Briefings | | |   Defense/Military

“To Build a Strong Military, the Armed Forces Must First Be Strong Politically”

People’s Daily republished an article from the People’s Liberation Army (PLA) Daily emphasizing the importance of building a politically strong military. The article quoted Xi Jinping, Chairman of the Central Military Commission (CMC), as stating that to build a strong military, the armed forces must first be strong politically, and that political strength is the most fundamental form of strength.

The article argued that political character is the essential attribute of the military, and that strengthening the armed forces must begin with strengthening them politically. It stressed that the Party’s absolute leadership over the military is the foundation of the armed forces and the core of building a strong military. It called for unwavering adherence to this principle, implement the CMC Chairman responsibility system, and resolutely follow the command of Chairman Xi, be accountable to Chairman Xi, and earn the trust of Chairman Xi.

It further called for cultivating comprehensive political capabilities, including political judgment, political understanding, and political execution. This involves analyzing and addressing issues from a political perspective, faithfully implementing decisions of the Party Central Committee, the CMC, and Xi Jinping, and integrating political requirements into all aspects of military preparedness, operations, and force management.

Source: People’s Daily, May 15, 2026
http://military.people.com.cn/n1/2026/0515/c1011-40720390.html

Briefings | | |   Defense/Military

Xinhua: German Official Expresses Openness to Chinese Automakers Producing Vehicles in Saxony

Dirk Panter, Economy Minister of Germany’s Saxony state, said on May 11 that a more pragmatic approach is needed toward cooperation with Chinese automakers as Germany’s automotive industry undergoes transformation. He suggested introducing Chinese partners through joint ventures to participate in local manufacturing.

Saxony, a key automotive hub in eastern Germany, hosts production facilities for Volkswagen, BMW, and Porsche. Panter said joint ventures between Volkswagen and Chinese manufacturers could be a viable option and expressed hope that Chinese firms would establish production in the region.

He emphasized that cooperation could help preserve Germany’s industrial capacity during the transition, rather than allowing it to erode.

Panter also noted that China has become a leader in electric vehicles and battery technology, and that Chinese automakers have already begun local production in several European countries, a trend he said Germany cannot afford to ignore.

Source: Xinhua, May 13, 2026
https://www.news.cn/world/20260513/86b85f601b794d1d85db0a912077f859/c.html

Briefings | | |   @CS Economy/Resources Geo-Strategic Trend

China Promotes “Constructive Strategic Stability” as New Framework for U.S.–China Relations

On May 14, Xi Jinping met with visiting U.S. President Trump and stated that both sides agreed to establish a “constructive strategic stability relationship” as a new framework for U.S.–China relations. Xi said the concept would provide strategic guidance for bilateral ties over the next three years and beyond, and expressed confidence that it would be welcomed by both countries and the international community.

People’s Daily described the agreement as the most significant political consensus reached during the meeting, emphasizing its importance amid a complex and evolving international environment. It characterized the concept as a key step in redefining bilateral relations.

At a regular press briefing on May 18, Chinese Foreign Ministry spokesperson Guo Jiakun said China is willing to work with the United States to “continuously substantiate the connotation of this framework.” He stated that China aims to fully implement the consensus reached by the two leaders, strengthen dialogue, expand cooperation, properly manage differences and sensitive issues, and promote stable, healthy, and sustainable development of bilateral relations.

Sources:
1. People’s Daily, May 18, 2026
https://world.people.com.cn/n1/2026/0518/c1002-40721842.html
2. Xinhua, May 18, 2026
https://www.xinhuanet.com/20260518/b19e769dbcd34a0c806d81c7c6262048/c.html

Briefings | | |   US-China Relations

China’s Hidden Non-Performing Loans May Reach US$3 Trillion

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, as non-performing loans continue to accumulate in China’s banking system, more and more loans are being delayed when processed. Analysts estimate that the true non-performing loan ratio of Chinese banks is far higher than the officially announced 1.5 percent, possibly reaching 10 percent, which means that approximately US$3 trillion of debt that should have been classified as non-performing loans has not been included in the statistics. If calculated at 10 percent, it is equivalent to approximately 17 percent of China’s Gross Domestic Product (GDP).

A plastics business owner surnamed Hu defaulted on a US$730,000 bank loan, but the bank did not demand immediate repayment, instead allowing him to postpone payment. This allowed him to continue operating while preventing the bank from adding another overdue loan to its books. Similar situations are unfolding across China.

Under current Chinese banking regulations, loans overdue for more than 90 days and unable to be repaid in full should be classified as non-performing loans. However, economists estimate that approximately 40 percent of loans in China have entered into or meet some form of grace period, meaning banks are instructed not to pursue collection or recognize losses. The main reason for the surge in bad debts is that a large amount of loans have flowed to companies whose revenue is insufficient to pay interest.

Source: Lianhe Zaobao, May 13, 2026
https://www.zaobao.com.sg/finance/china/story20260513-9040886

Briefings | | |   Economy/Resources