China Policy Monitor No. 1675

Related Categories: Cybersecurity and Cyberwarfare; Democracy and Governance; Human Rights and Humanitarian Issues; International Economics and Trade; Resource Security; SPACE; China; Iran; Southeast Asia; Taiwan

IRAN CONFLICT INCREASES CHINESE RELIANCE ON U.S. ETHANE
The war in Iran has driven Chinese ethane imports from the U.S. to a record 800,000 metric tons this April — 60% above the monthly average. Following the closure of the Strait of Hormuz, Chinese petrochemical firms are pivoting to U.S. ethane to offset disruptions to Persian Gulf naphtha and liquefied petroleum gas supplies, which had accounted for 50% and 40% of imports, respectively. As a critical raw material for plastics production, Beijing depends almost exclusively on the United States for a stable and cost-efficiency supply of ethane. The ethane buying spree comes ahead of President Donald Trump's visit to Beijing in mid‑May, when energy purchases are expected to be on the agenda. (Bloomberg, April 20, 2026)

BEIJING FORCES CANCELLATION OF TAIWANESE PRESIDENT'S ESWATINI VISIT
Taiwan's President, Lai Ching-te, was forced to cancel a planned trip to Eswatini, Taipei's sole remaining African ally, after Seychelles, Mauritius, and Madagascar abruptly revoked overflight permits. The president's office attributed the cancellations to "intense pressure" and "economic coercion" from Beijing, claiming that China threatened the three nations with economic sanctions and the revocation of debt relief if they allowed Lai's transit. This is the first time Beijing's pressure has successfully forced a Taiwanese president to cancel an overseas visit. Typically, countries permit overflights despite lacking formal ties with Taipei. "No threat or suppression can change Taiwan's determination to engage with the world, nor can it negate Taiwan's ability to contribute to the international community," Lai said. (The Guardian, April 21, 2026)

TIANGONG SPACE STATION TO DOUBLE IN SIZE
China plans to expand its Tiangong space station from its current three-module "T" configuration to a six-module, cross-shaped structure. The multifunctional extension will add docking ports for new laboratories and a larger airlock to manage increased mission traffic, while upgraded robotic arms will be installed to handle more complex orbital tasks. Although no timeline was provided, the expansion signals Beijing's intent to facilitate broader international cooperation. Astronauts from Pakistan, Hong Kong, and Macau are expected to join missions as early as this year. Since its 2022 completion, Tiangong has hosted over 260 scientific experiments and 26 spacewalks. (South China Morning Post, April 30, 2026)

[EDITOR'S NOTE: Beijing aims to establish Tiangong as a permanent alternative to the International Space Station (ISS). NASA currently plans to retire the ISS in 2031, utilizing a dedicated deorbit vehicle developed by SpaceX to guide the structure into a controlled re-entry over the South Pacific.]

ITALY EXTRADITES PRC HACKER TO U.S.
Italian authorities have extradited a member of China's Silk Typhoon hacking group to the United States. Arrested in Milan in July 2025 while on vacation, Xu Zewei, 34, arrived in Houston this week to face a nine-count indictment. The Department of Justice alleges Xu operated under the direction of the Ministry of State Security to orchestrate cyberattacks against American "universities, immunologists, and virologists conducting research into COVID‑19 vaccines, treatment, and testing." Xu, who is accused of exploiting Microsoft Exchange Server vulnerabilities to compromise over 12,700 U.S. organizations, pleaded not guilty in federal court. His co-defendant, Zhang Yu, remains at large. (The Hacker News, April 28, 2026)

MANILA DISMISSES PLA "COMBAT PATROLS" AS "INFORMATION OPERATIONS"
The PLA Southern Theater Command announced air and naval "combat readiness patrols" near Scarborough Shoal in the South China Sea, framing the maneuvers as a "necessary countermeasure" to defend Chinese sovereignty. The China Coast Guard simultaneously reported "law-enforcement patrols" in the vicinity. In response, the Armed Forces of the Philippines (AFP) stated that surveillance detected no unusual or large-scale PLA military activity, characterizing Beijing's claims as "information operations" designed to project a "false sense of control" and justify an "illegal, coercive, and aggressive presence." (U.S. News and World Report, April 30, 2026)

[EDITOR'S NOTE: Beijing's announcements coincide with the Balikatan exercises (April 20–May 8), which include the U.S., Philippines, Australia, Japan, Canada, France, and New Zealand. These drills — the largest to date — showcase advanced weaponry and interoperability, including live-fire coastal defense and rehearsed repulsions of mock assaults.]