CHINESE FIRMS, PRODUCTS TAKE ROOT IN RUSSIAN-OCCUPIED UKRAINE
Chinese companies are expanding their economic footprint in Russian-occupied parts of Ukraine. At least 17 Chinese firms are providing heavy mining machinery, telecommunications equipment and financial services across Donetsk, Luhansk, Zaporizhzhia, and Kherson. In the Donbas region, SANY Heavy Industry and Shandong Mining Machinery have replaced European suppliers, with Chinese goods now accounting for 60% of Luhansk's imports. The financial sector has mirrored this shift, with 79 bank branches in occupied territories offering yuan transactions. Russian-controlled telecom operators like Miranda Media are using Huawei hardware to create an alternative grid that Ukrainians fear will make it more difficult and costly to liberate and reintegrate these regions. (Washington Times, July 8, 2026)
IRAN GIVES CHINA "SPECIAL CONSIDERATIONS" FOR HORMUZ PASSAGE
Iran will grant China preferential maritime service fees in the Strait of Hormuz, according to Iran's Ambassador to China, Abdolreza Rahmani Fazli. The strategic chokepoint is central to Iran's "national security," Fazli told the World Peace Forum in Beijing. "We will definitely have special considerations for China, because China is a friendly country." Tehran plans to levy transit fees under the guise of security and environmental protections. While the U.S. and Gulf Arab states insist no charges can be imposed on the international waterway, European nations appear willing to accept non-discriminatory fees to preserve transit stability. China, which imports nearly all of Iran's oil, contends that unhindered shipping through the Strait of Hormuz is the "interests of all parties." (Bloomberg, July 4, 2026)
FORMER DPP STAFFER SENTENCED TO 10 YEARS FOR ESPIONAGE
Taiwan's High Court has sentenced former Democratic Progressive Party (DPP) staffer Huang Chu-jung to ten years in prison for spying for China. The court ordered the confiscation of NT$4.1 million ($127,416) in illicit gains from Huang, who was recruited by intelligence agents while operating a business in China. Huang collaborated with Chiu Shih-yuan, the former deputy director of the DPP-affiliated Taiwan Foundation for Democracy, to provide Chinese intelligence with classified information, including the overseas itineraries of the president and vice president, internal election schedules, and plans for how to handle the severance of official ties with diplomatic allies. The spy network targeted a former assistant to then-Foreign Minister Joseph Wu and a former Presidential Office consultant, among others. (Taipei Times, July 10, 2026)
CHINESE CYBER HACKS TARGET PAKISTANI LAW ENFORCEMENT
Multiple Pakistani law enforcement agencies were targeted in separate cyber espionage campaigns orchestrated by hackers based in China. Between February 2024 and April 2026, the hackers launched a series of intrusions into the Balochistan police force, breaching critical network equipment, web servers, and online platforms. The Islamabad police, the Khyber Pakhtunkhwa police, and the Punjab Safe Cities Authority, an autonomous provincial agency managing urban police systems, were also targeted. The hacks appear to be intended to obtain intelligence on the threats faced by Chinese nationals working on infrastructure projects in Pakistan, cybersecurity firm SentinelOne has concluded. (Reuters, July 9, 2026)
AS DOMESTIC EV SALES SLUMP, EXPORTS SURGE
While domestic car sales plummeted 26% year-on-year in June, China's car exports rose 80% to 905,000 units. In the first half of 2026, exports jumped 72% to over 4.4 million vehicles, putting the country on track to sell an estimated 10 million cars overseas by year-end – up from 7 million in 2025. The contraction at home is caused by market saturation, fierce price wars, and cuts in state subsidies for EV buyers. But as Chinese automakers like BYD and Geely are increasingly reliant on overseas expansion, they face rising trade barriers in the U.S. and Europe. The Department of Commerce, for instance, recently blocked Geely-controlled Polestar from selling 2027 models in the U.S. (ABC News, July 9, 2026)