China

Intelligence for Better Decision Making

Beijing Responds to Taiwan’s Legislative Proposals on Redefining Cross-Strait Relations
Jan. 6, 2026 | Geopolitics & Defense

Beijing has condemned recent Taiwanese legislative efforts to redefine the island’s relationship with the People’s Republic of China.

Taiwan’s Democratic Progressive Party legislators introduced amendments to the island’s cross-Strait regulations that would recast their relationship as one between “Taiwan and the People’s Republic of China” instead of under a single-China framework and strip out the phrase “prior to national reunification.” The proposals aim to alter the legal terminology governing cross-Strait relations and remove any link between Taiwan’s status and the notion of eventual reunification under the People’s Republic of China.

**Chen Binhua, spokesperson for the State Council Taiwan Affairs Office, denounced these amendments as a disregard for mainstream opinion in Taiwan and a threat to its people’s welfare.**
He argued that the changes challenge China’s long-standing historical and legal stance that Taiwan remains an inalienable part of its territory and attempt to rewrite the status quo of a unified “one China.” Labeling the revisions as a push for “de jure Taiwan independence,” Chen accused DPP figures, including Vice President Lai Ching-te, of acting as “saboteurs of peace” and “instigators of conflict.” He warned that any action crossing Beijing’s self-defined red line would trigger the Anti-Secession Law and prompt resolute measures to defend national sovereignty and territorial integrity.

**On January 4, 2026, state-run China Central Television broadcast an investigative report accusing Shen Pao-yang, a DPP-affiliated academic and lawmaker, of spearheading Taiwan’s formal independence movement.**
The Chongqing Public Security Bureau alleged that since founding his “Kuma Academy” in 2021, Shen cultivated violent separatists under the academy’s banner and received support from both the DPP and unspecified external forces.

**According to the report, Shen falsely claimed that Beijing planned a forcible reunification of Taiwan and urged social persecution of Taiwanese residents married to mainland Chinese by branding them spies.**
He also targeted Taiwan businessmen with mainland ties, despite some having financially supported his activities. Taiwanese outlets pointed out that, while Shen advocates separatism, his father runs a profitable business in the mainland.

**Shen landed on the Taiwan Affairs Office’s list of “obstinate separatists” in October 2024 and faced sanctions.**
On October 28, 2025, the Chongqing Public Security Bureau launched a criminal investigation under Chinese laws against Taiwan independence advocates. Citing legal experts, state media suggested that if prosecutors find sufficient evidence, Shen could face international pursuit, including through Interpol red notices.

**Throughout these events, Beijing has expressed full confidence in its ability to thwart any formal independence bid.**
The central government has urged Taiwan compatriots to reject secessionist efforts, work with the mainland to maintain cross-Strait stability, and safeguard the unity of the Chinese nation.
Liu Shaoyong Removed from Communist Party Following Corruption Probe in China’s Aviation Sector
Jan. 6, 2026 | Governance & Law

Liu Shaoyong’s trajectory through China’s civil aviation sector culminated in his leadership of China Eastern Airlines and subsequent expulsion from the Communist Party of China.

**Liu Shaoyong, 67, hails from Henan province.**
He joined the Communist Party of China in 1977 and began working in civil aviation in 1978. Over the following decades, he held multiple senior roles in China’s aviation sector before joining China Eastern Airlines in 2008. From December 2017 until July 2022, he served as both Party secretary and chairman of the airline.

**In June 2025, the CPC Central Committee authorized the Central Commission for Discipline Inspection and the National Commission of Supervision to investigate Liu.**
Investigators determined he had lost his convictions, failed to cooperate, and violated the Party Central Committee’s eight-point decision on improving Party and government conduct. They also found he engaged in superstitious activities—such as attending arranged golf events—accepted illegal banquet invitations, neglected to report personal matters, and displayed disloyalty to the Party.

**The inquiry revealed that Liu abused his position to secure benefits for relatives and non-related parties across private equity fund management, project contracting, flight management, aircraft leasing, and job recruitment.**
He improperly held shares in non-listed companies and provided advantages in hiring processes in exchange for personal gain.

**In return for these favors, he accepted significant sums of money, properties, gifts, and other valuables.**
Following the disciplinary findings, the Party expelled Liu, confiscated his illicit gains, and referred his case to judicial authorities for prosecution under relevant laws and regulations.

Monitored Intelligence for China - Jan. 7, 2026


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Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.

Risk Categories Reported on Today

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11
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8
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20
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4
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Erudite Risk also includes operations categories so you can monitor the environment for better decision making. Everything is tied together--what happens in risk affects operations and what happens in the market impacts risk profiles.

We categorize key intelligence into one of 30 different operations intelligence categories.

Different roles and functions within the organization can monitor different key issue areas. HR may monitor employment, wages, regulations, labor and management relations, etc., while P&L leaders may monitor overall developing trends.

Operations Categories Reported on Today

Operations Category
Items Reported On
Real Estate
3
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12
Politics and Elections
6
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4
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7
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15
Trade Issues and Numbers
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Chinese authorities warn of new NFC scam enabling remote theft of bank card funds and personal data

Global Times | English | News | Jan. 7, 2026 | Cyber Attacks and Data Loss

Chinese authorities have issued warnings about a new near-field communication (NFC) scam that enables criminals to remotely steal funds from bank cards and harvest personal data. The scam exploits the misconception that NFC’s short-range technology, which works within about 10 centimeters, is secure. Fraudsters pose as customer service agents, using scenarios like flight cancellation refunds or membership cancellations to gain victims’ trust.

Once trust is established, victims are tricked into downloading malicious apps or allowing remote phone control through screen-sharing. Scammers then instruct victims to enable NFC and hold their bank cards near their phones to skim card details, which are linked to fake payment tools to transfer funds. These scams leverage illegally obtained data and small-amount password-free payments, allowing unauthorized transactions without victims entering passwords.

Victims often lose control over their phones, with malicious apps accessing contacts, messages, locations, and other sensitive permissions. Real-time screen-sharing lets scammers capture verification codes and passwords. The exposure of personal information can lead to reselling of data, targeted scams, fake accounts, money laundering, and long-term damage to credit and digital security.

Authorities advised the public not to trust unsolicited calls about refunds or compensation, avoid clicking unknown links or downloading apps, and refrain from enabling screen-sharing. They also recommended turning off NFC when not in use and disabling password-free small transactions to reduce risk.

Asian Financial Forum to debut Global Business Summit in Hong Kong

Xinhua | English | News | Jan. 7, 2026 | UndeterminedBizdev-Partnering

The 19th Asian Financial Forum will take place on January 26 and 27 in Hong Kong, featuring the inaugural Global Business Summit. The event is co-organized by the Hong Kong Special Administrative Region government and the Hong Kong Trade Development Council (HKTDC), and is expected to attract over 3,600 participants globally.

Under the theme "Co-creating New Horizons Amid an Evolving Landscape," the forum will host more than 100 global business and political leaders, along with financial experts, to discuss geopolitical shifts and macroeconomic trends. The Global Business Summit aims to emphasize the integration of finance with the real economy, focusing on unlocking potential in high-value industries to promote innovation and economic growth.

Participants will engage with leaders from technology, consumer, healthcare, and finance sectors while exploring Hong Kong’s recent advancements. The forum's program includes discussion panels, keynote speeches, thematic luncheons, and breakfast sessions that will address global economic trends, forecasts, and other pertinent topics spanning finance and industry.

Nukes Won’t Make Japan Safer

China-US Focus | English | AcademicThink | Jan. 7, 2026 | Geopolitical Conflict and Disputes

Japan’s potential acquisition of nuclear weapons would seriously undermine the global nuclear non-proliferation regime and destabilize the postwar international order. Recent provocations, including Prime Minister Sanae Takaichi’s statements linking Taiwan incidents to Japan and suggestions from senior advisers about nuclear armament, have sparked international condemnation and heightened regional tensions.

Japan possesses the technological capacity and materials to develop nuclear weapons, with large plutonium stockpiles and advanced technological expertise. However, political obstacles, including its pacifist constitution and strong domestic opposition, have so far prevented progress. Far-right groups advocate revisiting Japan’s “Three Non-Nuclear Principles,” but strategic risks and geopolitical repercussions remain significant deterrents.

Should Japan acquire nuclear weapons, it could trigger a nuclear arms race in East Asia, a region already fraught with complex nuclear deterrence and territorial disputes. Japan’s historical militarism and lack of trust with neighbors would exacerbate the proliferation risk. This move could also increase Japan’s vulnerability to nuclear attacks, as it would weaken the international nuclear taboo and reduce moral constraints on other powers.

Possessing nuclear arms would damage Japan’s international image as a peace-loving victim of nuclear warfare, eroding its diplomatic prestige and potentially reducing the credibility of its deterrence due to its geographical vulnerability. Economically and diplomatically, Japan would face isolation, possible sanctions, and widespread global backlash, including opposition from traditional allies and neighboring countries. The article underscores the importance of learning from history to avoid repeating past mistakes linked to nuclear conflict and militarism.

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