American Foreign Policy Council

China Policy Monitor No. 1687

August 25, 2026 Joshua Eisenman
Related Categories: Cybersecurity and Cyberwarfare; Democracy and Governance; Intelligence and Counterintelligence; Missile Defense; Warfare; Corruption; China

BEIJING SPENDS HUNDREDS OF MILLIONS ON U.S. INFLUENCE OPERATIONS
China's government agencies, state media organs, and state-backed firms spent over $100 million in 2025 on lobbying and foreign agents in order to shape U.S. policy, commercial decisions, and public opinion. Department of Justice records under the Foreign Agents Registration Act (FARA) reveal Beijing spent nearly $80 million, while China-linked commercial entities spent $20 million, as documented under the Lobbying Disclosure Act. CGTN America, for instance, received $66.8 million to broadcast pro-China messaging and critique U.S. policy. Meanwhile, major Chinese firms like Huawei, Hikvision, and Tencent hired lobbying firms to fight trade restrictions and national security designations. (Fox News, July 26, 2026)

FBI RAIDS LOCAL CALIFORNIA OFFICIALS IN PRC INFLUENCE PROBE
Federal agents executed search warrants across southern California targeting PRC foreign influence in local politics. The FBI raided the homes and offices of San Bernardino County Supervisor Curt Hagman, Ontario City Councilman Alan Wapner, attorney Frank Lizarraga, and James Su, CEO of EDI Media. Agents also searched a Beverly Hills mansion and seized records at Ontario International Airport. A registered PRC-agent under FARA since 2022, EDI Media made campaign contributions to former Arcadia Mayor Eileen Wang, who pleaded guilty in May to running PRC propaganda operations. The raids come amid expanding federal investigations into connections between local government officials and PRC agents. Authorities did not reveal details of the ongoing investigation. (Los Angeles Times, July 28, 2026)

CHINA TO SUPPLY AIR-DEFENSE MISSILES TO IRAN
China will supply Iran with up to 400 shoulder-fired air-defense missile systems to reinforce its short-range air defenses. The $70 million deal, which was signed via Hong Kong-based intermediary Zhongqing Baoshang International Investment, covers infrared-guided QW-12 and FN-16 man-portable air-defense systems (MANPADS) intended. Beijing responded that reports of an arms agreement are "completely groundless." China is known to supply Iran with precursor chemicals like sodium perchlorate used to make solid-fuel ballistic missiles. In May, Xi Jinping personally assured President Trump that Beijing would not furnish Tehran with military equipment. (The Telegraph, July 29, 2026)

PLA NAVY DESTROYER CONDUCTS FIRST LIVE-FIRE DRILL IN JAPAN'S EEZ
A Chinese missile destroyer fired live rounds inside Japan's exclusive economic zone (EEZ) for the first time late last month. Sailing with two other Chinese warships and a Russian frigate 180 km off the coast of Okinotori, Japan's southernmost island, the destroyer conducted live-fire machine-gun drills. Japan responded by scrambling surveillance aircraft and issuing a diplomatic protest condemning the Sino-Russian collaboration. Beijing rejects Tokyo's sovereignty over Okinotori and maintains that the drills took place in international waters. (The Guardian, July 21, 2026)

CHINA IMPORTS THOUSANDS OF TONS OF UNDECLARED URANIUM
Between 2000 and 2024, China imported between 2000 and 5000 metric tons of undeclared natural uranium from the Democratic Republic of Congo (DRC); enough to fuel a light-water reactor for up to 25 years or supply fissile material for 600 to 1500 nuclear warheads. Exploiting their control over 95% of DRC cobalt exports and 80% of global refining capacity, Chinese refiners extract the radioactive material as a byproduct of cobalt metal processing. Less than 10% of the shipments were declared to the International Atomic Energy Agency, allowing Beijing to bypass non-proliferation safeguards. (Interesting Engineering, July 30, 2026)

© 2026 - American Foreign Policy Council