CWA # 2309
The World This Quarter
China's Domestic Landscape (Jul-Sep 2026):
Social Governance, National Mobilization and Technological Regulations
The World This Week #376, Vol 8, No. 38, 25 October 2026
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Anand V
25 October 2026
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The second quarter witnessed multiple efforts undertaken by the Communist Party of China (CPC) to identify vulnerabilities to the country’s internal security. During this period, China came up with certain new proposals, institutions and regulations, and have updated some older regulations. These steps are primarily aimed at maintaining stability in the face of rapid technological and seismic geopolitical shifts, and keeping in mind the Party Congress in 2027.
1. Risks from AI to China’s national security
Chen Yixin, China's Minister of State Security, warned about the risks posed by Artificial Intelligence (AI) to China's national security. He outlined in an article published in September in the Ministry of State Security's WeChat account that China faces multifaceted threats arising from the use of AI by adversarial forces to conduct activities such as information warfare, espionage, and cyberattacks on the society. These operations, he argued, can therefore undermine the nation's domestic stability and adversely impact China's political and ideological security. He urged heightened awareness and diligence by the Chinese state and society about such threats, and proposed political, administrative, technological and legal measures to mitigate such risks. He also emphasized the need for strengthening the Party's leadership and oversight on the developments in AI. Chen’s warnings come as the AI industry in the US reveal the growing challenges arising from an uncontrolled development of the technologies in a sector marked by cut-throat competition. However, it has to be noted that the risks highlighted by Chen are more about external threats channelized through AI impinging on China’s political stability, rather than the inability to control the technology.
2. Expulsion of Senior Party and Military Leaders
The quarter witnessed the eventual expulsion of Zhang Youxia and Liu Zhenli from the military and the party. Zhang and Liu were two of the seven members of the Central Military Commission (CMC), the former being the Vice Chairman of the CMC, and considered the most powerful military leader in China. Both Zhang and Liu were put under investigation in January of this year. They were eventually removed from the CMC in August and the party in September. They were accused of being disloyal to the party leadership—implying their opposition to Xi Jinping, and corruption. This purge is considered as the most significant one in the military ever since the start of Xi Jinping’s anti-corruption campaign in 2012 and one having an immense impact on China’s domestic politics, especially in the buildup to the 2027 Party Congress. The decision to remove Zhang and Liu from the Party was apparently timed to take place before Xi’s state visit to the US. Meanwhile, Zhong Shaojun, the former Director of the CMC’s General Office, was stripped of his position as a delegate of the National People’s Congress. He was seen as a close aide to Xi Jinping in the People’s Liberation Army (PLA). Yet another senior Party leader, Ma Xingrui, a Politburo member and aerospace engineer, was expelled from the Party in July following a severe anti-corruption investigation. He was the former party Secretary of the Xinjiang region, and had previously headed China’s space and atomic energy programmes simultaneously.
3. The new Central Leading Group for Social Governance
It was revealed in September that the CPC established a new Central Leading Group for Social Governance in November 2025. Cai Qi, a member of the Politburo Standing Committee of the Party's Central Committee is supposedly heading this new Leading Group – one among many such bodies which coordinates policies at the macro-level on specific areas of high significance for the CPC. Cai Qi is understood to be a close aide of Xi Jinping. The issue of social governance has become increasingly significant for the Party as it attempts to enhance its control over the relatively newer sectors of the Chinese economy including the tech companies focussing on AI and related technologies, as well as the emerging start-up and jig economy sectors which is increasingly providing employment for China's youth at a time when the unemployment percentage is in double figures. Incidentally, the Party's Central Committee and the government's State Council came up with guidelines on the maintenance of social governance in July.
4. First updation of the National Mobilization Law
On 28th August, China made the first amendment to its National Mobilization Law, which was enacted 16 years ago. The law defines national mobilization for the first time as "activities in which the State, in response to threats to national sovereignty, unity, territorial integrity, security and development interests, takes necessary measures in accordance with the law to ensure a rapid transition between peacetime and wartime and convert economic and social strength into national defense capabilities". The amended law seeks to translate China’s growing national strength in various sectors, especially the emerging and strategic ones, into mobilization capabilities – with a marked focus on technologies such as AI. As part of the amendment, China has expanded the range of civilian and commercial capabilities it aims to mobilize during wartime, including critical industrial supply chains and logistics. Apart from the scope, the updated law also puts emphasis on increasing the speed at which mobilization needs to be implemented. The timing of the updation also needs to be looked at in lieu of the accelerated pace in China’s attempts to reunify Taiwan with the mainland, the deepening strategic rivalry with the US, Japan’s growing militarism, the recent military trends observed in ongoing conflicts across the world, and Beijing’s “Military-Civil Fusion” imperatives.
5. Expansion of exit restrictions
China has added new restrictions to the exit of citizens and foreigners from the country. The Regulations on Exit-Entry Administration, or Decree no. 841 issued by the State Council in July came into force in September. The regulations extend the existing restrictions to plug the gaps in outbound travel which could lead to the transfer of wealth and the migration of key technological talent outside the country. The government in China has increasingly been attempting to halt the outward flight of wealth, considering the continuing momentum of the anti-corruption campaign. The intensification of technological competition with the US and the tightening of export controls has also led to China becoming increasingly sensitive to any loss of talent, as well as the transfer of know-how in the high technology sector. The decree is also aimed at ensuring that Chinese citizens are not lured into organized crime overseas, especially in context of the growing online scam networks based in Southeast Asia and other regions. With growing volatility in various parts of the world, the decree also seeks to protect Chinese citizens from travelling to high-risk destinations.
6. Xi’s reiteration of Peaceful China Initiative
During his speech in September at a working conference on the Peaceful China Initiative, Xi Jinping stressed on “advancing Peaceful China Initiative to safeguard Chinese modernization”. The Peaceful China Initiative, established during the 18th CPC National Congress in 2012 where Xi Jinping took over the Party’s leadership, integrates various dimensions of internal security such as political security, social governance, cyberspace safety, AI security, and disaster mitigation under a unified framework. During his address, Xi called for continued efforts to develop a holistic perspective of national security under the Party’s leadership, “prevent and defuse various risks” to domestic stability and governance, and effectively ensure societal order and safety through “technological empowerment”. Xi stressed that the key objectives of the initiative are – making the country more secure, society more orderly, governance more effective, and the people more satisfied. According to the Lianyungang Global Peace and Security Forum’s Global Public Security Index Report (2025-26), the country stands first in terms of safety of citizens, among the 62 countries considered in the rankings. The report was published during the Forum’s annual conference in September. However, it must be noted that the Forum itself was established by China in 2015 under its Ministry of Public Security for fostering international cooperation in matters of policing and internal security.
7. The CITIC tower incident
China’s local government within Beijing came up with an official explanation in early July about an incident involving the crashing of a light aircraft against the CITIC tower in the city’s Central Business District. On 26th June, a sports aircraft hit the tallest tower in Beijing, located near to Zhongnanhai – the area housing the political leadership of China. The crash led to the pilot’s death and left 13 injured. Furthermore, the aircraft’s deviated flight trajectory intersected with that of a passenger aircraft, which had to delay its descent to Beijing airport due to this reason. The timing of the incident – just a few days before the 105th anniversary of the CPC – coupled with the delay in official explanation, led to speculations. The official explanation given by the Chaoyang district government eventually clarified that the 66-year-old pilot had mental health issues and had expressed suicidal tendencies. The explanation has nevertheless put the spotlight on what has been commonly termed as “revenge against society” attacks – a societal trend in China, wherein distraught individuals conduct attacks on public spaces to vent out their personal grievances. Moreover, the steps taken by the government after the crash – involving expanded restrictions on low-altitude aviation activities within a 300km radius of the city’s geographic centre – was seen as concerning for China’s booming low-altitude economy. This new sector has been projected as an emerging and increasingly strategic one, involving commercial manned and unmanned aviation services at low altitudes such as drone deliveries and air taxis.
To Conclude: China in the Third Quarter (July-September 2026)
These moves by China are aimed at enhancing national security, political stability and socio-economic governance by controlling the "new technology productive forces", the "new employment groups", eliminating corrupt “tigers and flies”, and building the “quiet strength” of China reflect the urgent need of the Party to ensure social stability during the buildup to the 2027 Party Congress. Xi Jinping's renewal of tenure as the CPC leadership will be decided upon within a year from now, when the current 20th National Party Congress will convene for its five-year electoral cycle. A stable domestic situation is seen by the Party as a prerequisite towards either a smooth continuation or transfer of power.
About the author
Dr Anand V is an Associate Professor of Geopolitics and International Relations at Manipal Institute of Social Sciences, Humanities and Arts, Manipal Academy of Higher Education, Manipal, India. The views expressed are personal.