China Reform Monitor No. 1689

PLA ENCROACHING INTO INDIAN TERRITORY
Chinese forces are operating across the disputed border in Upper Subansiri, Arunachal Pradesh and have blocked Indian army access to key patrol points. A report from the People's Party of Arunachal Pradesh claims that since Indian forces abandoned the Shera 5 patrol point in 2023 following a clash with the PLA, Chinese forces "continue to remain active" in the region. Last month, the Nah Welfare Society, a local tribal body, wrote to New Delhi that PLA encroachment has "increased manifold with an intention to occupy as much land as possible." The Indian Army, however, has dismissed the reports of PLA encroachment. (Al Jazeera, August 17, 2026)

CHINA'S NEWEST ARTIFICIAL ISLAND IN THE SOUTH CHINA SEA
China has completed the first phase of land reclamation on a 1500-acre artificial island at Antelope Reef in the Paracel Islands, which Vietnam also claims. Satellite imagery reveals that ten months of continuous dredging operations have transformed the mostly submerged feature into a 3.7-mile-long teardrop-shaped outpost equipped with a deep-water port, a 2200-foot quay, and grading for a 10,000-foot military runway. Situated 160 nautical miles south of Yulin Naval Base on Hainan Island and about 200 nautical miles east of Da Nang, Vietnam, the new installation expands Beijing's anti-access/area-denial (A2/AD) capabilities, radar surveillance, and operational control over the northern South China Sea. China has already built seven artificial islands in the South China Sea. (The War Zone, August 21, 2026)

GERMAN FINANCE MINISTER CALLS FOR "FIRMER STANCE" TOWARD CHINA
German Finance Minister Lars Klingbeil has accused China of flouting global trade rules and called for a "firmer stance" toward Beijing. He said China uses overcapacity, state subsidies, and mandatory joint ventures to flout global trade standards. Speaking at a campaign stop, Klingbeil urged stronger protections for domestic steel and automotive sectors to preserve jobs against unfair Chinese competition. He said Chancellor Friedrich Merz supports countering Beijing's distortionary trade policies. Facing a €1 billion daily Chinese trade surplus, the European Commission is also devising new trade defense mechanisms. (Straits Times, August 21, 2026)

CONGRESS TAKES AIM AT HARVARD OVER CHINA TIES
A joint report by the House Select Committee on the CCP and the Education and Workforce Committee accuses Harvard University of endangering U.S. national security through unvetted academic partnerships with Chinese entities. The 53-page investigation criticizes Harvard's compliance framework for failing to monitor high-risk collaborations, noting researchers co-authored thousands of papers with Chinese institutions — including military-linked defense universities — and allowed officials from the sanctioned Xinjiang Production and Construction Corps (XPCC) to attend university programs. The report also claims Harvard uses a non-profit affiliate to sidestep foreign gift reporting requirements and delayed providing requested partnership data. "Harvard's pattern of conduct suggests an institution that prioritizes preserving lucrative financial ties to China over enforcing its own standards, American interests, and upholding its institutional responsibilities," the report said. Harvard rejected the findings, and said it was in full compliance with federal security standards. (The Crimson, August 18, 2026)

COMEDIAN INVESTIGATED, SHOWS CANCELLED FOR SONG ALTERATION
Wuhan cultural authorities are investigating Guo Degang, a prominent comedian, after he spontaneously altered lyrics to the 1950s revolutionary song "Playing My Beloved Pipa" during a performance. For substituting "it is quiet in the Forbidden City" for the original line "it is quiet along Weishan Lake," Guo is accused of violating regulations governing commercial performances. Citing "scheduling issues," Guo's performances have been cancelled in multiple Chinese cities. (Associated Press, August 21, 2026)

[EDITOR'S NOTE: The crackdown highlights Beijing's tightening control over the entertainment industry. Performers face harsh financial penalties and bans for crossing shifting political red lines. In 2023, comedian Li Haoshi sparked intense controversy after using a PLA slogan to describe dogs chasing squirrels. Li management firm, Xiaoguo Culture Media, was fined 14.7 million yuan ($2.13 million), and he has been banned from public performances ever since.]