Photo : China Daily
INTERNAL
Fifth plenum discusses governance and compliance issues within the party
On 26 October, Reuters reported that China's Communist Party began its Fifth Plenum under President Xi's ideas on "full and rigorous party self-governance". The state agencies reported that it aims to address issues faced in governing capacity, complacency and combating corruption within the party. King's College London's Lau China Institute Director said: "The plenum will present Xi as in control, and able to continue his command," and "It is likely everything will be centred on him, to dispel any rumours or doubts about his physical fitness and ability to continue in his role." A Xinhua commentary stated that the anti-corruption drive demonstrated a "sustained and systemic" self-governance to "ensure officials dare not, cannot and do not want to commit corruption". These meetings are closed-door, and the party constitution requires at least one such meeting annually.
("China's Xi opens Communist Party plenum, aims for firm governance measures," Reuters, 26 October 2026)
https://www.reuters.com/world/china/chinas-communist-party-opens-fifth-plenum-2026-10-26/
China’s old-age dependency ratio surpasses children’s for the first time
On October 28, The Straits Times reported that China’s old-age dependency ratio exceeded its child dependency ratio for the first time. The ratio of people aged 65 and above to the working-age population reached 23.1 per cent in 2025, compared with 22 per cent for children aged 14 and under. China had more than 223 million people aged 65 and above, compared with about 213 million children. The elderly dependency ratio has risen from 15 per cent in 2016 to more than 20 per cent in 2021, reflecting the country’s ageing population and declining birth rate. China’s population fell for a fourth consecutive year in 2025, while its birth rate reached a record low. Authorities have introduced measures to encourage marriage and childbearing, including family subsidies, childcare support and reduced childbirth-related medical costs.
(“China’s old-age dependency ratio overtakes children for first time,” The Straits Times, 28 October 2026)
https://www.straitstimes.com/asia/east-asia/chinas-old-age-dependency-ratio-overtakes-children-for-first-time
SCIENCE AND TECHNOLOGY
AI market hits a significant loss of USD 2.4 trillion as shares slide
On October 27, The Guardian reported that about USD 2.4 trillion had been wiped from China’s stock market since May as investors grew concerned about the sustainability of the country’s artificial intelligence boom. The STAR 50 index, which tracks technology and innovation companies in Shanghai, had fallen 40 per cent since June, while other major indexes were down about 20 per cent. The sell-off comes as Chinese technology companies struggle to turn investment into profits amid weak domestic demand. AI stocks account for more than 40 per cent of the market value in China and Hong Kong, according to Goldman Sachs. Beijing has launched a 60-billion-yuan state-backed AI fund, but consumers remain reluctant to spend on many technology products. The report also points to potential US restrictions on Chinese technology, which could limit companies’ access to overseas markets. Beijing is promoting robotics to expand AI use and offset a shrinking workforce, but demand remains concentrated among government agencies and research institutions. Unitree, a leading Chinese robotics company, has seen its shares halve since its August listing.
(“Chinese markets lose trillions as race for AI supremacy with US takes its toll,” The Guardian, 27 October 2026)
https://www.theguardian.com/world/2026/oct/27/chinese-markets-lose-trillions-ai-race-beijing
CHINA AND TAIWAN
Taiwan vows to remain vigilant against China’s intelligence-gathering activities
On 27 October, SCMP reported that Taiwan’s military has vowed to remain vigilant against China’s intelligence-gathering activities after Beijing released high-resolution satellite imagery of the island. Taiwan’s Defence Minister stated that they would take “appropriate early-warning and response measures, including the necessary concealment, mobility and dispersal measures, to ensure the operational security of the armed forces.” The remarks come after China’s state broadcaster CCTV released a 42-second video featuring high-resolution imagery of Taiwan island, captured by the commercial Jilin-1 remote-sensing satellite constellation. China released these images as part of its commemorative celebrations on October 25, marking the end of imperial Japanese occupation over Taiwan island. The images also showcase popular landmarks and sites in Taiwan, with Taiwanese lawmaker Wu Szu-yao alleging that China had “deliberately highlighted prominent Taiwanese landmarks to reinforce its claim” over the island while using the imagery to signal its ability to closely monitor Taiwan.
(“Taiwan vows vigilance as Beijing releases detailed satellite imagery of island landmarks,” SCMP, 27 October 2026)
https://www.scmp.com/news/china/military/article/3372328/taiwan-vows-vigilance-beijing-releases-detailed-satellite-imagery-island-landmarks
CHINA AND EAST ASIA
President Xi calls on Tokyo to maintain cordial ties
On 27 October, Reuters reported that President Xi Jinping called on Tokyo to “safeguard the political foundation” of bilateral ties. He stated this while offering his condolences to the family of the late former Japanese Prime Minister Yasuo Fukuda, who passed away last week, and Fukuda used his tenure to improve relations with various Asian countries, including China. President Xi characterised the late Prime Minister as an “old friend of the Chinese people,” and said he was a "politician of integrity and responsibility.” He also called on Japan to maintain cordial bilateral relations after ties between the two countries reached an all-time low due to Prime Minister Sanae Takaichi’s comments on Taiwan. Xi further called on Japan to abide by the “four political documents between China and Japan,” referring to documents forming the foundation of China-Japan relations and normalisation of diplomatic ties in 1972.
(“China's Xi calls on Japan to protect political foundation of ties,” Reuters, 27 October 2026)
https://www.reuters.com/world/china/chinas-xi-sends-condolences-over-death-former-japanese-pm-2026-10-27/
CHINA AND SOUTHEAST ASIA
China to send low-level participation for ASEAN summit after Philippines dispute
On 28 October, The Straits Times reported that China had downgraded its participation at the ASEAN Defence Ministers’ Meeting scheduled to be held in the Philippines this week. The People’s Liberation Army issued an announcement that the defence attaché of the Chinese embassy to the Philippines would be present at the summit. This is in contrast to the previous year, when the defence minister attended the summit. China and the Philippines have had relations deteriorate in recent months, amidst territorial clashes. Comments by the Chinese ambassador to the Philippines that Beijing would easily triumph if it wished to use force in a conflict with Manila sparked a backlash. Philippine President Ferdinand Marcos Jr. had described the ambassador’s comments as sounding like a threat.
(“China downgrades envoy to South-east Asian meeting after sea row”, The Straits Times, 28 October 2026)
https://www.straitstimes.com/asia/china-downgrades-envoy-to-south-east-asian-meeting-after-sea-row
CHINA AND SOUTH ASIA
Beijing says it is abiding by agreements with India amid continuing LAC face-offs
On 27 October, The Indian Express reported that China had responded to renewed concerns over face-offs between Indian and Chinese troops in Arunachal Pradesh by asserting that it was complying with bilateral agreements and understandings. Chinese Foreign Ministry spokesperson Guo Jiakun said that China conducted normal border patrols to safeguard its territorial sovereignty and maintain stability in border areas. He also stated that Beijing and New Delhi continued to communicate through diplomatic and military channels, urging India to work with China to implement their shared understandings and preserve peace along the border. The response followed remarks by Indo-Tibetan Border Police Director-General Shatrujeet Kapur, who had confirmed that face-offs were continuing at multiple locations in Arunachal Pradesh. India’s Ministry of External Affairs had attributed border disturbances to Chinese forces deviating from established patrolling patterns. The competing explanations underscore continuing differences over border management despite ongoing diplomatic and military engagement.
(“Strictly abiding by relevant agreements with India, says China,” The Indian Express, 27 October 2026)
https://indianexpress.com/article/india/strictly-abiding-by-relevant-agreements-with-india-says-china-10938172/
China steps up engagement with Nepal’s ruling party
On 28 October, The Annapurna Express reported that China was expanding political engagement with Nepal’s ruling Rastriya Swatantra Party (RSP). A delegation led by RSP General Secretary Bipin Kumar Acharya is scheduled to visit China in the second week of November at the invitation of the International Department of the Communist Party of China (CPC). The delegation is expected to visit several Chinese cities to learn about China’s development and infrastructure. Earlier in October, RSP Deputy Leader Ganesh Parajuli led a delegation to China for a programme organised by the Chinese government. A proposed visit by RSP President Rabi Lamichhane has reportedly been delayed, with no public explanation from the party. China has traditionally maintained close links with Nepal’s communist parties and the Nepali Congress; its outreach to the RSP indicates an effort to broaden engagement across Nepal’s political landscape. The planned visit comes amid reported political mistrust and a slowdown in bilateral engagement between Beijing and Kathmandu.
(“China steps up engagement with Nepal’s ruling party,” The Annapurna Express, 28 October 2026)
https://theannapurnaexpress.com/story/68267/
Bangladesh and China discuss police modernisation and security cooperation
On 27 October, Daily Sun reported that Bangladesh and China had discussed expanding cooperation in law enforcement and security, with a focus on police modernisation, professional training and institutional capacity-building. The discussions took place during a meeting between Bangladesh Home Minister Salahuddin Ahmed and Liu Yuyin, chargé d’affaires at the Chinese Embassy in Dhaka, at the Home Ministry in the Bangladesh Secretariat. Ahmed described China as an important development and strategic partner and expressed hope for deeper bilateral engagement in areas of mutual interest. Liu reaffirmed the Chinese government’s commitment to supporting the technological modernisation of the Bangladesh Police, providing training and enhancing the agency’s overall capabilities. Officials from Bangladesh’s Ministry of Home Affairs and the Chinese Embassy also attended the meeting. The discussion reflects the security and law-enforcement dimension of China–Bangladesh relations, alongside their broader development partnership. However, the report did not announce a specific new agreement, programme or implementation timeline.
(“Bangladesh, China discuss police modernisation and security cooperation,” Daily Sun, 27 October 2026)
https://www.daily-sun.com/index.php/diplomacy/905634/bangladesh-china-discuss-police-modernisation-and-security-cooperation
CHINA AND THE MIDDLE EAST
Beijing to send special envoy to defuse Middle East regional conflicts
On 27 October, Reuters reported that China would soon dispatch a special envoy to the Middle East, the Horn of Africa, and the Red Sea region to help ease escalating tensions and prevent the conflict from spreading. Foreign Ministry spokesperson Guo Jiakun announced the diplomatic mission, urging all involved parties to resolve their differences through dialogue and negotiation. This diplomatic push comes amid a highly volatile regional situation as top officials from Saudi Arabia, Turkey, and Pakistan recently met with Iranian officials in Tehran in an effort to de-escalate regional hostilities. Yemen's Houthi rebels have launched new attacks against Saudi Arabia, prompting Egypt to approve defence support for the Gulf kingdom. Relations between the US and Iran have worsened, highlighted by US President Donald Trump's recent warning that the US may launch new military strikes against Iran. China recently also solidified its regional focus during a meeting with Djibouti's foreign minister in Beijing, where both nations agreed that stabilising the Middle East is vital to maintaining security across the Red Sea and the Horn of Africa.
(“China to send envoy to Middle East in near future amid conflict spillover,” Reuters, 27 October 2026)
https://www.reuters.com/world/china/china-send-envoy-middle-east-near-future-amid-conflict-spillover-2026-10-27/
CHINA AND AFRICA
China to help Africa’s merchant ship registry in shipbuilding
On 27 October, Business Insider Africa reported that China accounted for 56.1 per cent of global shipbuilding output in 2025, in comparison to a negligible share for the United States. In this regard, Sierra Leone established a Chinese-backed shipping venture, with plans to expand its involvement in cargo transportation and international maritime trade. President Julius Maada Bio inaugurated the Sierra Leone Ocean Shipping Company(SLOSCO) on 19 October, 2026 at Queen Elizabeth II Quay in Freetown. The company is a joint venture between China’s Zhejiang Xiehai Group, with a 70 per cent stake, and the Sierra Leone National Shipping Agency (SLNSA) with the remaining 30 per cent. SLOSCO also plans to establish an initial fleet of 30 vessels before expanding to 50 ships, utilising the Chinese company’s existing vessels and international shipping networks. SLOSCO, under the agreement, plans to transport minerals, petroleum products, and agricultural commodities through Sierra Leone’s ports, with operations expected to extend into regional and international markets. President Bio stated that the initiative would increase the country’s indigenous component in its international trade. Zhejiang Xiehai Group will provide access to its existing fleet of 37 vessels to support the venture, which are mainly bulk carriers, while five additional ships are on order. SLOSCO also lists 54 vessels in operation, including bulk carriers, chemical tankers, and container ships. This is partly in response to American attempts to restore its commercial shipbuilding capability, especially Trump’s USD 150 billion Maritime Action Plan, countering which China has invested USD 100 million in Indonesia and proposed shipbuilding facilities in Pakistan.
(“ China to help Africa’s third-largest merchant ship registry build a fleet of up to 50 ships amid US efforts to revive shipbuilding after decades of decline,” Business Insider, 27 October 2026)
https://africa.businessinsider.com/local/markets/china-to-help-africas-third-largest-merchant-ship-registry-build-a-50-vessel-fleet/05hxcdf
CHINA AND RUSSIA
Russia and China discuss energy cooperation and digital technologies
On 27 October, TV BRICS reported that experts from Russia and China examined the development of low-carbon energy, the implementation of joint infrastructure projects, and the introduction of digital technologies. They also discussed prospects for cooperation in markets in the Global South. The meeting was conducted at the Saint Petersburg State University of Economics during the Second Russia-China Energy Dialogue “Energy Cooperation between Russia and China in the New Economic and Political Realities”. Experts advocated moving beyond the traditional oil and gas sector to nuclear, wind, hydro, and solar power as renewable energy sources. They also stressed the need to reduce the negative environmental impact of energy resource extraction. The development of gas resources in northern Russia, including Yamal, and the use of the Northern Sea Route for transporting energy resources are among the promising areas of Russia-China cooperation. The agenda of the Second Russia-China Energy Dialogue also included technological cooperation, joint work in third-country markets, the creation of a Russia-China Arctic energy corridor and the development of cross-border energy routes in Northeast Asia.
(“ Russia and China outline prospects for energy cooperation-from gas projects to digital technologies,” TV BRICS, 27 October 2026)
https://tvbrics.com/en/news/russia-and-china-outline-prospects-for-energy-cooperation-from-gas-projects-to-digital-technologies/
CHINA AND EUROPE
EU to impose a new fee on non-bloc parcels to curb Chinese imports
On 27 October, SCMP reported that the European Union will slap a USD 2.25 handling fee on packages to curb the influx from China. This will apply to each type of item in a package sent directly to consumers from outside the EU regardless of the parcel’s value. The handling fee is on top of the USD 3.34 duty imposed on small packages worth less than USD 166.9. The European Consumer Organisation was concerned that some firms may pass on these new costs to consumers at the final stages of the purchase, which would be illegal under EU law, which requires the full price to be shown upfront. 93 per cent of the cheap packages came from China, through platforms such as AliExpress and Temu. This, according to Brussels, is putting strain on customs authorities, raising their costs, with the handling fee compensating for their efforts. Europe has also expressed concern about unsafe non-EU products that violate the bloc’s rules arriving via Chinese e-commerce platforms. The EU will have to reassess the handling fee’s amount every two years to ensure it remains proportional to the cost of customs operations in the bloc.
(“EU to slap new fee on non-bloc parcels to curb influx from China,” SCMP, 27 October)
https://www.scmp.com/news/world/europe/article/3372219/new-levy-non-eu-parcels-kicks-sunday-bid-curb-influx-china?module=perpetual_scroll_0&pgtype=article
