Global Politics

China Reader Daily Wire | 23 October 2026, Friday | Vol 3 No. 164

US Treasury proposes expanded restrictions on high-technology investments in China

Chinese firms eye Thailand in domestic ‘China plus one’ push

Global Governance Forum begins in Beijing

Photo : Chinadiplomacy

In Brief
INTERNAL
Global Governance Forum begins in Beijing
On October 16, Reuters reported that the Chinese People’s Institute of Foreign Affairs would host the 2026 Global Governance Forum in Xiongan New Area, Hebei Province, from October 23 to 25. Themed “Rebuilding trust and confidence,” the forum reportedly aims to explore specific, effective approaches and tangible, attainable solutions to global challenges. Around 180 foreign guests from the Global South, Europe, the US and elsewhere, along with more than 200 Chinese guests, were expected to attend. About 70 per cent of foreign attendees were experts, academics, and prominent figures in climate change, AI, and trade. Discussions would cover UN affairs, climate change, AI governance, multilateral trade and sustainable urban development. Introduced by President Xi Jinping, the Global Governance Initiative sought to promote multilateralism and a more equitable global governance system. Xiongan, as Zinhua reports, would also showcase its urban governance, green transition and digital governance, supported by over 5,300 completed buildings and a forest coverage rate of 35.2 per cent.
(“China targets practical action from global governance forum next week,” Reuters, 16 October 2026; “China's "city of the future" takes centre stage at global governance talks,” Xinhua, 23 October 2026)
https://www.reuters.com/world/china/china-targets-practical-action-global-governance-forum-next-week-2026-10-16/ https://www.chinadaily.com.cn/a/202610/23/WS6adab41fe4b06d4aa0564552.html

ENERGY AND ENVIRONMENT
Earthquake in Tibet kills 16; Broadcast says strongest earthquake in five years
On 23 October, The Tribune reported that a magnitude 7 earthquake in China’s Tibet region had killed at least 16 people and injured 42 of them. The earthquake struck near Naggu late Thursday on the 22nd, collapsing at least 339 homes and 20 livestock sheds. 11 of the injured were in serious condition. More than 1,600 people were deployed for rescue operations. Emergency supplies, including 1,000 prefabricated housing units, around 3,000 tents, folding beds and winter clothing, were sent to the region. Local officials were continuing search and rescue efforts as they assessed the damage. Rockfalls forced the closure of part of National Highway 317, while communication disruptions and forecast snow could complicate rescue work. Railway authorities also halted trains passing through the affected area. The US Geological Survey placed the epicentre about 191 kilometres east-northeast of Nagqu, at a depth of 18 kilometres. China’s national broadcaster said it was the strongest earthquake in the region in five years.
(“Powerful earthquake in China’s Tibet kills 16, damages hundreds of houses “, The Tribune, 23 October 2026)
https://www.tribuneindia.com/news/world/powerful-earthquake-in-chinas-tibet-collapses-hundreds-of-homes-kills-16/amp/?utm=relatedarticles

SCIENCE AND TECHNOLOGY
China issues guidelines to link scientific research with industry
On 22 October, CGTN reported that China has issued guidelines to bring scientific and technological innovation closer to industrial development. The document, issued by the Communist Party of China Central Committee and the State Council, aims to create an enterprise-led system in which businesses, universities and research institutions work together to turn scientific advances into industrial applications. The guidelines set out measures to connect research and industry needs, encourage businesses to lead more research projects and improve the transfer of research results into commercial use. They also call for stronger innovation in key technologies to make industrial supply chains more self-reliant, and for advanced technologies to modernise traditional industries. The policy highlights emerging future industries, including new energy, advanced materials, aerospace, quantum technology, biotechnology, brain-computer interfaces and 6th generation mobile communications. It also calls for wider use of artificial intelligence and digital technologies across various industries, alongside closer coordination of research, investment, talent and financial resources.
(“China issues guidelines for reinforcing integration of sci-tech, industrial innovations”, CGTN, 22 October 2026)
https://news.cgtn.com/news/2026-10-22/China-issues-guidelines-to-integrate-sci-tech-industry-innovation-1RsbXZQGEQU/p.html

CHINA AND EAST ASIA
North Korean returnees from China remain unaccounted for, says UN
On 21 October, the UNHRC stated that three years after the resumption of large-scale forcible returns of North Korean nationals from China, serious concerns persist regarding their fate, whereabouts, and treatment. These form part of a longstanding pattern of serious human rights violations against individuals forcibly returned to North Korea. Reports indicate that women who left North Korea became victims of trafficking, marriage, and sexual exploitation. Following the return of large-scale repatriation to the DPRK since 2023, reports have emerged of serious human rights violations against refugees, particularly those who sought asylum or left the country without authorisation. The UNHRC stated that irregular migration does not diminish the obligation to respect the principle of non-refoulement. Given longstanding evidence that DPRK nationals who leave the country without authorisation or seek protection abroad may face persecution upon return, the reported mass return of North Korean nationals despite their protection concerns raises questions about whether their needs were raised.
(“Many returned to North Korea from China remain unaccounted for, says UN experts,” UNHRC Press Release, 21 October 2026)
https://www.ohchr.org/en/press-releases/2026/10/many-returned-north-korea-china-remain-unaccounted-say-un-experts

CHINA AND THE PACIFIC
Australian mining companies to stop production as iron ore supply to China stalls
On 22 October, The Sydney Morning Herald reported that mining giant Fortescue Metals Group has warned that a protracted standoff with Beijing over the price of Australian iron ore may force it to curtail production at its huge mines across Pilbara. While Fortescue sells nearly all its ore to China, it has been stuck in a contract negotiations deadlock with China Mineral Resources Group, the centralised buying agency set up by Beijing to leverage its purchasing power against foreign suppliers. If the negotiations remain unresolved by the end of the year, Fortescue’s operations could be affected, including slowing or suspending its mining operations imminently. The dispute also poses a significant threat to Australia’s larger economy, as iron ore is the nation’s most valuable export, generating more than USD 100 billion in export earnings and accounting for 5 per cent of gross domestic product. China Mineral Resources Group has sought to consolidate the bargaining power of Chinese steel mills and force price concessions in contract negotiations with suppliers including Australia’s BHP, Rio Tinto, and Fortescue.
("China iron ore stoush puts Australian mines in the firing line,” The Sydney Morning Herald, 22 October 2026)
https://www.smh.com.au/business/companies/china-iron-ore-stoush-puts-australian-mines-in-the-firing-line-20261022-p617r1.html

CHINA AND SOUTHEAST ASIA
Chinese firms eye Thailand in domestic ‘China plus one’ push
On 21 October 2026, SCMP reported that a subtle shift is taking hold among Chinese firms as they adopt a China-plus-one strategy and redirect domestic investment overseas to hedge against tariff risks. Thailand’s reasonably mature, sophisticated manufacturing base and manufacturing saturation in Vietnam, aggravated by US trade scrutiny through a 40 per cent punitive tariff on Chinese goods diverted through the country, have made it unattractive. In 2025, Thailand attracted USD 5.33 billion in Chinese investment compared with Vietnam’s USD 2.46 billion. Thailand’s location and existing industrial infrastructure have allowed China-funded factories to integrate into supply chains that have been extended from China to ASEAN countries. Thailand further has capabilities for technology-intensive manufacturing, such as electric components and machinery, electric vehicles, and solar panels. More Chinese firms in the home appliance, technology, and digital sectors are going local, prioritising sales in Thailand and ASEAN. Companies in the technology and digital sector, the home appliance sector, and the EV sector, such as Huawei, Haier, and BYD, are following this trend. Further, Chinese investors are shipping finished products such as rice, rubber, and non-ferrous metal back home.
(“‘Poster child’: why more Chinese firms have Thailand in their expansion plans,” SCMP, 21 October 2026)
https://www.scmp.com/economy/global-economy/article/3371529/poster-child-why-more-chinese-firms-have-thailand-their-expansion-plans?module=perpetual_scroll_0&pgtype=article

CHINA AND SOUTH ASIA
China-Pakistan drill features Type 08 IFV
On 21 October, Global Times reported that the China-Pakistan Karakoram 2026 joint training in Korla, Northwest China’s Xinjiang Uygur Autonomous Region, has moved into the segmented drills phase, with mixed units completing a reconnaissance, strike, and clearance sequence. A Chinese Type 08 infantry fighting vehicle fitted with a roof cage and side drills alongside drone swarms and robot dogs deployed in live drills. Chinese and Pakistani troops have now moved into the segmented phase, which involves missions ranging from air-ground reconnaissance and concentrated fire strikes to search and clearance. At the start of the drill, reconnaissance vehicles and drones were deployed simultaneously to monitor targets inside the camp, tracking the terrorists' force disposition and movements in real time. Firing commenced once intelligence was gathered. Snipers seized vantage points for long-range kills. Drone swarms launched suicide strikes on exposed targets while ground armour fire followed to ensure full coverage. The joint training exercise is themed on joint counter-terrorism and clearance operations in high-altitude areas. However, even during counterterrorism drills, plateau units make full use of asymmetric assets such as drones.
(“China-Pakistan drill features Type 08 IFV with roof cage, grilles,” Global Times, 21 October 2026)
https://www.globaltimes.cn/page/202610/1372742.shtml

Maldives takes inspiration from China for 2040 Development Vision
On 23 October, China Daily reported that Ahmed Afzal Ibrahim, Maldives’ Minister of State for Finance and Public Enterprises, stated that China’s experience in aligning budgets with development goals and monitoring implementation was relevant to Malé’s challenges. The Maldives is preparing its 2040 blueprint following an earlier vision document for 2020. Ibrahim is leading an eight-member delegation for a six-day study program in Beijing, with the workshop jointly organised by the UN Economic and Social Commission for Asia and the Pacific and the International Cooperation Centre of the National Development and Reform Commission. The workshop covers planning, fiscal policy, the marine economy, and cultural tourism with a curriculum designed around the needs of the island nation. This is part of a broader ESCAP support aimed at helping the country pursue growth that improves productivity, rather than focusing entirely on GDP. The support has focused on strategic foresight training, exchanges with planning agencies from China, Indonesia, and Vietnam, and a productivity analysis report to inform the planning process.
(“Maldives taps Chinese cues for key plan,” China Daily, 23 October 2026)
https://www.chinadaily.com.cn/a/202610/23/WS6adab7cae4b06d4aa0564589.html

Sri Lanka begins direct yuan payment channel
On 20 October, Daily Mirror reported that Sri Lanka opened a direct Chinese yuan settlement facility through the Colombo branch of the Bank of China. This would allow the branch to be the settlement bank for cross-border payments of yuan and transactions between local banks in the same currency. The direct yuan settlement is expected to provide benefits by reducing the costs of converting Sri Lankan rupees to US dollars and then yuans, alongside reducing exposure to exchange rate movements. Additionally, the new facility would reduce intermediary costs, provide more convenient financial services for importers and exporters, and streamline payments without processing delays. The Sri Lankan Finance Ministry stated that the new facility would bolster linkages between the Sri Lankan and Chinese systems, alongside expanding infrastructure.
(“Direct yuan settlement to ease Sri Lanka- China trade payments,” Daily Mirror, 20 October 2026)
https://www.dailymirror.lk/business-news/Direct-yuan-settlement-to-ease-Sri-Lanka-China-trade-payments/273-352930

ITBP chief confirms ongoing encounter with Chinese troops at Arunachal border
On 23 October, The Hindu reported that confrontations between Indian and Chinese troops were continuing at multiple locations along the Arunachal Pradesh border. The news was conveyed by Indo-Tibetan Border Police (ITBP) Director-General(D-G) Shatrujeet Kapur, and it was the first confirmation of the scale of the escalating tensions. According to Indian government sources, the Chinese People’s Liberation Army (PLA) has constructed tents within 6 to 7 kms of what India considers to be the border of the Line of Actual Control (LAC), near the Maja company operating base. Kapur informed that ITBP commandos who specialised in high-altitude deployment were active in the confrontations, and a specialised high-altitude mountain fighting force was being set up. The D-G also emphasised the need for India to focus on modernising its existing weapons systems. He particularly highlighted the urgency to invest in drone and counter-drone technologies as China had modernised its weapons systems and infrastructure. Additionally, Kapur informed that Indian defence forces had commenced the creation of underground shelters along the China border for protection as pilot projects. (“Face-off with China continues at multiple locations along Arunachal border: ITBP D-G,” The Hindu, 23 October 2026)
https://www.thehindu.com/news/national/face-off-with-china-continues-at-multiple-locations-along-arunachal-border-itbp-d-g/article71612994.ece/amp/

CHINA AND THE MIDDLE EAST
China’s Gulf oil imports rebound towards pre-war levels
On 22 October, SCMP reported that China’s crude oil imports from the Middle East are recovering rapidly after disruptions caused by the US-Israel war on Iran. Gulf shipments rose 25.7 per cent on a monthly basis to 13.8 million tonnes in September and could potentially exceed 5 million barrels per day in October, nearing February’s pre-war level of 5.6 million. The rebound also reflects record domestic inventory drawdowns, competitive Saudi pricing, and increased Chinese purchases from Saudi Arabia, Abu Dhabi, and Iraq. Lower producer prices and restored Saudi East-West pipeline flows have supported supplies despite high freight costs. Meanwhile, Russian shipments declined 11.4 per cent in September, largely due to seasonal pipeline maintenance.
(“China’s Gulf oil imports forecast to approach pre-Iran war high as shipments rebound,” SCMP, 22 October 2026)
https://www.scmp.com/economy/global-economy/article/3371778/chinas-gulf-oil-imports-forecast-approach-pre-iran-war-high-shipments-rebound

CHINA AND AFRICA
Trade between South Africa and China witnesses a surge following Beijing’s zero-tariff scheme
On 22 October, Reuters reported that South Africa’s trade with China has expanded sharply since Beijing introduced zero tariffs for qualifying African exports in May 2026. Between May and August, South African exports to China increased nearly 25 per cent, while imports from China rose 23 per cent. Pretoria is hopeful that the arrangement will reduce its substantial trade imbalance with China, its largest trading partner, by expanding agricultural, mineral and exports of high-value manufactured goods. Greater access to China also supports South Africa’s diversification strategy amid uncertainty over US trade relations. Although Washington extended the African Growth ⁠and Opportunity Act (AGOA) until 2028, South Africa faces possible exclusion over political and foreign policy disputes with the incumbent administration.
(“South Africa's trade with China surges after duty-free deal,” Reuters, 22 October 2026)
https://www.reuters.com/world/asia-pacific/south-africas-trade-with-china-surges-after-duty-free-deal-2026-10-22/

CHINA AND EUROPE
German Chancellor urges dialogue with Beijing as the EU prepares its trade defences
On 21 October, Anadolu Agency reported that German Chancellor Friedrich Merz said the EU wants to avoid a trade war with China but is preparing measures to protect European industries from unfair competition. Speaking at the Berlin Global Dialogue, Chancellor Merz highlighted Europe’s large trade deficit with China and said a Franco-German initiative was developing trade defence tools against market-distorting practices. However, he stressed that these instruments are intended primarily as leverage while negotiations with Beijing continue. Chancellor Merz also said that Europe remains open to Chinese companies and products but expects reciprocal and fair trading conditions. He also acknowledged that European industries must improve their own competitiveness to address growing global economic challenges.
(“Germany’s Merz says EU does not want a trade war with China but will defend itself,” Anadolu Agency, 21 October 2026)
https://www.aa.com.tr/en/europe/germany-s-merz-says-eu-does-not-want-a-trade-war-with-china-but-will-defend-itself/4095932

CHINA AND THE AMERICAS
US Treasury proposes expanded restrictions on high-technology investments in China
On 22 October, ABC News reported that the US Treasury has proposed expanding restrictions on American investments in sensitive technologies in China, Russia, North Korea and other designated countries. Implementing a 2025 law that broadened the Outbound Investment Security Program, the rule would cover hypersonic systems, supercomputing, biotechnology and artificial intelligence, alongside existing restrictions on semiconductors and quantum computing. The framework aims to prevent US capital from strengthening foreign military and technological capabilities. It would generally apply to investments exceeding USD 50,000 while exempting many financial transactions, including stock purchases. Companies could consequently face stricter compliance requirements.
(“US Treasury proposes a rule to crack down on high-tech investments in China, other adversaries,” ABC News, 22 October 2026)
https://abcnews.com/US/wireStory/us-treasury-proposes-rule-crack-high-tech-investments-137491824

China Reader Daily Wire | 05 November 2026, Thursday | Vol 3 No. 175

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