China Policy Monitor No. 1686

Related Categories: Cybersecurity and Cyberwarfare; Energy Security; Human Rights and Humanitarian Issues; Intelligence and Counterintelligence; China

CHINA EXPANDS SPY OPERATIONS IN CUBA
China operates three signals-intelligence facilities in Cuba and since 2023 has tripled the number of intelligence personnel on the island to monitor U.S. military installations, maritime activity, and electronic communications. According to a new State Department report titled "Cuba: The Capital of 21st Century Communism," the island is a key staging ground for Chinese, Russian, and Iranian intelligence. It describes Cuba as a strategic "force multiplier" facilitating Chinese espionage and influence operations against the United States. (South China Morning Post, July 21, 2026)

BEIJING, WASHINGTON EXPAND LAW ENFORCEMENT COOPERATION
In late July, Minister of Public Security Wang Xiaohong met FBI Director Kash Patel in Beijing to deepen bilateral law enforcement cooperation. Despite the absence of an extradition treaty between the two countries, the meeting followed reciprocal fugitive repatriations, including Beijing handing over a U.S. fugitive and Washington returning someone accused of killing Chinese citizens overseas. Patel cited progress in disrupting fentanyl precursor pipelines, dismantling scam centers, and targeting child exploitation through a joint task force. Chinese and U.S. law enforcement agencies have carried out "a series of practical cooperation in areas such as counter-narcotics, repatriation of illegal immigrants, fugitive recovery, combating telecom and cyber fraud, and anti-money laundering," the ministry said. (Reuters, July 24, 2026)

BELGIAN AUTHORITIES ARREST NATO INTERN FOR SPYING
Belgian military intelligence and federal police have arrested a Canadian citizen of Chinese origin interning at NATO's military headquarters on espionage charges. Brussels launched the investigation following suspicious activity at Supreme Headquarters Allied Command Europe in Mons and searched the suspect's residence and workplace. The arrest underscores the threat posed by Chinese intelligence in Belgium, which is home to the European Commission and to NATO headquarters. The country has suffered numerous cyberattacks and espionage infiltrations from China-based actors in recent times. Last year, a Chinese cyber-attack against its intelligence services was revealed and a Belgian police officer was charged with spying for China and Russia. (Financial Times, July 25, 2026)

CHINA WIELDS RARE-EARTH EXPORT CONTROLS AGAINST EUROPE
In response to EU sanctions on Chinese firms aiding Russia's war effort, Beijing has banned exports of "dual-use" critical minerals and components to fourteen European companies. Leveraging its dominance over global rare-earth supply chains, the Ministry of Commerce restricted shipments of essential materials, including yttrium, antimony, and tungsten, to European firms processing alloys, specialty chemicals, and permanent magnets. The restrictions are exacerbating global shortages of critical inputs used in advanced semiconductors, robotics, electric motors, and wind turbines. Beijing's response underscores its willingness to weaponize its near-total monopoly on critical mineral processing to counter European economic pressure. (New York Times, July 24, 2026)

FORMER XINJIANG PARTY SECRETARY PURGED FOR CORRUPTION
Former Xinjiang Party Secretary Ma Xingrui, 66, has been ousted as part of Xi Jinping's ever-expanding anti-corruption campaign. Anti-graft investigators placed Ma under investigation in April and announced that he "severely violated political discipline," accepting massive bribes and orchestrating large-scale family corruption. Once a prominent aerospace engineer who led major satellite and manned space missions, Ma's fall follows the recent expulsions of his former subordinates, Zhang Jianhua at the State Administration of Science, Technology and Industry for National Defense, and Guo Yonghang in Shenzhen, Guangdong. Ma's removal shrinks the Politburo to 21 members following the removal of top military leaders He Weidong and Zhang Youxia. (New York Times, July 14, 2026)