CPC, KMT REVIVE A LONG-STALLED PARTY-TO-PARTY FORUM
The CPC and Taiwan's opposition Kuomintang (KMT) party will revive their long-stalled party-to-party dialogue channel in Beijing on February 3rd. The forum, which was held 11 times between 2006 and 2016, was mothballed following the breakdown of cross-Strait relations. KMT Vice-chairman Hsiao Hsu-tsen will lead a 40-member delegation to the capital, where discussions are expected to focus on "livelihood" issues, including climate change, disaster prevention, energy security, and AI development. Observers view the session as a critical precursor to a summit later this year between General Secretary Xi Jinping and new KMT leader Cheng Li-wun. (South China Morning Post, January 28, 2026)
XI-STARMER BEIJING SUMMIT SIGNALS WARMING OF PRC-UK TIES
During the first state visit by a British leader in eight years, Prime Minister Keir Starmer and General Secretary Xi Jinping pledged enhanced cooperation between London and Beijing on trade, investment, and technology. Meeting at the Great Hall of the People, Starmer advocated for a "more sophisticated relationship" characterized by expanded market access and reduced tariffs. Tangible outcomes included a 30-day visa-free entry policy for UK citizens, negotiations on whiskey tariff reductions, and a $15 billion investment commitment in the PRC by UK pharmaceutical firm AstraZeneca. Xi acknowledged recent "twists and turns" in bilateral relations, stating China is prepared to develop a long-term partnership that can "withstand the test of history." (Reuters, January 29, 2026)
CHINA ADVANCES DUAL-USE QUANTUM SENSING NETWORK
Researchers from the University of Science and Technology of China have established the world's first wide-area quantum sensor network, linking the strategic hubs of Hefei, Anhui and Hangzhou, Zhejiang. Published in Nature, the study details a 300-km "quantum net" of synchronized sensors designed to detect axions (hypothetical dark matter particles). By filtering local interference and employing quantum amplification, the network achieves a forty-fold increase in sensitivity over existing astronomical constraints. Lead author Peng Xinhua emphasized plans to expand this infrastructure globally and into orbital space. (CGTN, January 30, 2026)
BEIJING THREATENS RETALIATION OVER POTENTIAL DARWIN PORT SEIZURE
China's Ambassador to Australia, Xiao Qian, has warned that the PRC has an "obligation to take measures" to protect the interests of Chinese firms should Canberra force the divestment of the Port of Darwin. The 99-year lease, acquired by the Chinese Landbridge Group in 2015 for $351 million, has become a target for Prime Minister Anthony Albanese's Labor government, which has pledged to return the facility to state ownership. Xiao characterized the move as opportunistic, noting that Landbridge only recently achieved profitability after years of losses. "We have a view and determination to protect our Chinese company's legitimate interests," he said. (South China Morning Post, January 28, 2026)
[EDITOR'S NOTE: Darwin is Australia's closest major port to Southeast Asia and hosts the "Talisman Sabre" naval exercises. Canberra is currently evaluating certifying the facility for AUKUS nuclear-powered warships and submarines. Since 2011, annual U.S. Marine rotations have utilized the port for personnel and equipment transit. Last year, a U.S. submarine surfaced near the Chinese-operated commercial berths.]
CSRC TIGHTENS CROSS-BORDER INVESTMENT FLOWS AMID SURGING DEMAND
The China Securities Regulatory Commission (CSRC) has intensified restrictions on the decade-old Mutual Recognition of Funds (MRF) scheme, further constraining outbound capital allocation. Under the new directive, fund managers must diversify portfolios to ensure no single country (e.g., the U.S.) exceeds 50% of a fund's total assets. Launched in 2015 to grant retail investors access to overseas markets, the MRF allows for up to 600 billion yuan ($86 billion) per year in cross-border investment. This regulatory tightening marks a sharp reversal from January 2025, when the CSRC relaxed sales caps to 80%, triggering a record 96.4 billion yuan in capital flows into Hong Kong-based funds that month. (Bloomberg, January 29, 2026)