China Policy Monitor 1668

CHINESE HACKERS TARGET GOOGLE SHEETS
Google's Threat Intelligence Group (GTIG) has disrupted a China-linked hacking network known as UNC2814. The hackers compromised 53 organizations across 42 countries, including government agencies and telecoms providers. They used a backdoor inside Google Sheets functionality named "GRIDTIDE" to write commands into spreadsheet cells and retrieve stolen data from them. The malware reviewed the sheet every second for new instructions, then provided status updates regarding task completion, and wiped the first 1000 rows at the start of each session to erase evidence of prior activity. "The backdoor... treats the spreadsheet not as a document, but as a communication channel to facilitate the transfer of raw data and shell commands," GTIG said. By blending into regular enterprise cloud traffic, this approach allowed the malware to evade detection. Hiding within high-availability cloud applications allowed the group to bypass traditional malware signatures. (CSO Online, February 26, 2026)

[EDITOR'S NOTE: The UNC2814 campaign underscores a sophisticated shift in PRC cyber-espionage toward "low-observable" operations. By weaponizing Google Sheets, Chinese hackers outsource their operations to the very service providers they are targeting. This tactical evolution presents a significant challenge to global telecoms providers, who have a hard time distinguishing legitimate administrative activities from state-sponsored data exfiltration.]

CHINA OFFERS TO MEDIATE IN PAKISTAN-AFGHANISTAN CLASH
China has offered to mediate between Islamabad and Kabul following Pakistan's air strikes on the Afghan capital and on Kandahar. Defense Minister Khawaja Asif said that Pakistani forces are now in "open war" against the Taliban. Beijing is using internal channels to deescalate the conflict and has urged both nations to settle disputes through dialogue, emphasizing the "safety and security of Chinese personnel, projects, and institutions," according to a PRC Foreign Ministry spokesperson. While Beijing has not officially recognized the ruling Taliban government, Foreign Minister Wang Yi's recent visit to Afghanistan underscores China's desire to reengage with Kabul. The collapse in Afghan-Pakistani relations follows deadly border clashes in October and Islamabad's allegations that Kabul is harboring militants. (South China Morning Post, March 1, 2026)

CHINESE PORT OPERATOR EVICTED FROM PANAMA CANAL
Panama has finalized the legal annulment of port concessions held by Panama Ports Company (PPC), a subsidiary of Hong Kong-based CK Hutchison, terminating its 20-year management of the Balboa and Cristobal terminals. Following a Supreme Court ruling, the Panama Maritime Authority (AMP) seized both facilities in order to ensure their continuous operation. President José Raúl Mulino confirmed that the Danish integrated logistics giant A.P. Moller–Maersk will assume control under a temporary management agreement while a new long-term concession framework is developed. The move follows sustained pressure from President Donald Trump to curb PRC influence over the Panama Canal, a critical artery that carries 5% of global maritime trade. (US News & World Report, February 24, 2026)

MORE MILITARY PURGES AHEAD OF NPC
The National People's Congress (NPC) has disqualified nine high-ranking PLA officers, reducing the number of military deputies to 243 members. The purge includes five full generals: Information Support Force Political Commissar Li Wei, Ground Forces Commander Li Qiaoming, former Navy Commander Shen Jinlong, former Navy Political Commissar Qin Shengxiang, and former Air Force Political Commissar Yu Zhongfu. Lieutenant General Wang Donghai and three major generals from the CMC and Rocket Force were also removed. Notably, Li Wei and Li Qiaoming — both members of the 20th Central Committee — were absent from the October plenum following the 2024 dissolution of the Strategic Support Force. Meanwhile, Liu Shaoyun was removed as president of the PLA Military Court. (South China Morning Post, February 27, 2026)

DOJ DROPS CHARGES AGAINST CHINESE SCIENTISTS
The U.S. Justice Department has dismissed charges against three Chinese scientists at the University of Michigan accused of conspiring to smuggle biological materials. Xu Bai, Fengfan Zhang, and Zhiyong Zhang were released from federal custody in Detroit and returned to China following "serious talks" between Beijing and Washington. The trio had been jailed for over three months for assisting colleague Chengxuan Han in shipping unlabeled packages containing research worms from China in 2025. Defense counsel Mark Satawa confirmed that the Chinese Consulate's direct involvement "moved the needle" in securing the dismissal. While prosecutors initially sought felony convictions, the worms — used for studying chemical reactions — were deemed non-nefarious with a limited lifespan. (CBS News, February 27, 2026)