PRC HACKERS USE AI TO SPY ON RUSSIA, PAKISTAN, AND MORE
Internal records from cybersecurity contractor Zhengzhou Zhirong Network Tech (ZRON) reveal that China is creating an ecosystem of private hacking-for-hire companies that steal and analyze confidential information. Working for police and security agencies, ZRON uses AI models from firms like Alibaba and DeepSeek to organize, analyze, and synthesize massive troves of stolen data into intelligence products. After compromising foreign networks, the firms use tools that log keystrokes and intercept email and other communications to harvest records. ZRON targeted rivals as well as partners. It intercepted Philippine government emails regarding South China Sea disputes, exfiltrated confidential Pakistani Cabinet minutes, obtained Russian diplomatic correspondence, and monitored Taiwanese delegations visiting the Vatican. (Wall Street Journal, September 15, 2026)
CHINA EXPANDS NUCLEAR INFRASTRUCTURE AT SEVEN SITES
Satellite imagery reveals that China is rapidly expanding its nuclear weapons program across at least seven major sites. Under Xi Jinping, the PRC's nuclear arsenal has grown to an estimated 620 warheads and is projected to reach 1500 by 2035. The expansion upgrades seven key facilities: warhead trigger production in Pingtong, Sichuan; fabrication and shockwave testing at Zitong, Sichuan; fusion research at Mianyang, Sichuan, and; underground borehole testing at Lop Nur, Xinjiang. Facilities at Jiuquan and Jinta, Gansu, and Guangyuan, Sichuan are also building capacity to enrich uranium, reprocess plutonium, and store nuclear waste. Beijing is shifting away from its traditional policy of separating warhead development and delivery systems, calling into question its "no first use" policy. (The Telegraph, September 23, 2026)
SMALL DRONES A MAJOR THREAT TO CHINA'S 11,000 MEGA BRIDGES
Small drone-delivered explosives pose a catastrophic risk for China's 11,000 "super-large" bridges, according to a new study by a joint team from Southwest Jiaotong University and the China Railway Major Bridge Reconnaissance & Design Institute. The researchers simulated drone attacks on suspension bridges to evaluate critical infrastructure vulnerabilities during precision UAV attacks. Modelling a 538-meter span matching Guizhou's Dimuhe River Bridge, they found that a 5kg blast at the tower junction can sever a cable, while a 30kg TNT detonation near the main cable anchorage snapped cables leading to deck inversion and ultimately structural collapse. The tests "reveal the extreme vulnerability of modern bridges to unconventional explosive attacks," the team found. Prompted by Ukraine's drone strikes on Russian infrastructure, the researchers urged China to add defensive sheathing and main cable anchorage protections. (South China Morning Post, September 21, 2026)
CANADA'S EV TARIFF CUT LINKED TO UNITED FRONT INFLUENCE
Following an influence campaign by the United Front Work Department, Canadian Prime Minister Mark Carney decided to slash tariffs on Chinese electric vehicles from 100% to 6.1% earlier this year. Prior to the deal, which was announced in China in January, Shui Shousong, a businessman who serves on the Chinese People's Political Consultative Conference, submitted a proposal to Canadian officials urging the tariff reduction. The policy shift comes despite warnings from security officials that Chinese EVs pose national security risks, including data vulnerabilities and industrial overdependence. Last month, Shui, who is also President of the Canada-China Business Council, hosted the launch of the new Canada-China EV association to build a bilateral "industrial cooperation platform." Sitting members of Canada's Parliament spoke at the launch, which was attended by municipal government officials and diplomats from the PRC Consulate in Toronto. (Newsweek, September 21, 2026)
SAUDI ARABIA QUITS CHINA'S MBRIDGE DIGITAL CURRENCY PLATFORM
Saudi Arabia has withdrawn from China's alternative cross-border payment platform known as Project mBridge. Spearheaded by the People's Bank of China along with Hong Kong, Thailand, and the UAE, the initiative uses blockchain technology to facilitate direct, immediate, low-cost central bank settlements that bypass the U.S. dollar and the SWIFT payment system. Washington has targeted the Chinese initiative over concerns Beijing could set standards to undermine U.S. sanctions and diminish dollar supremacy. The Bank for International Settlements departed under U.S. pressure in late 2024, followed by Saudi Arabia's central bank in May 2025. Beijing is continuing to offer mBridge, which will soon be rolled out commercially, to countries eager to reduce their reliance on Western financial institutions. (Financial Times, September 20, 2026)
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