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Photo: 糯米团子酱 / RedNote

About 10 min read.
Geopolitics

PLA Conducts Two-Day Live-Fire Drills Around Taiwan With 130 Sorties Following US $11 Billion Arms Package Approval

Washington’s approval of a record US $11 billion arms sale to Taiwan on 18 December prompted the Eastern Theatre Command to launch ‘Justice Mission 2025’ on 29–30 December – the largest exercise around the island since 2022 – deploying army, navy, air force, and rocket forces to demonstrate blockade capabilities, with 90 of 130 aircraft sorties crossing the median line during 10 hours of live-fire operations.

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China Brokers Thailand-Cambodia Ceasefire in Yunnan After Southeast Asia’s Deadliest Border Conflict in 15 Years

China played a decisive diplomatic role in securing the ceasefire between Thailand and Cambodia through trilateral talks hosted by Foreign Minister Wang Yi in Yunnan from 28–29 December. The meeting brought together the Thai and Cambodian foreign ministers in Yuxi, resulting in a three-point consensus to consolidate the ceasefire that took effect on 27 December after clashes killed over 100 people and displaced 750,000. China pledged 20 million yuan (US $2.8 million) in humanitarian aid while offering demining and monitoring support, demonstrating the Global Security Initiative’s application to regional mediation alongside ASEAN-led efforts.

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National Politics

World’s First AI Companion Regulations Released for Consultation, Targeting Emotional Safety

The Cyberspace Administration of China released draft measures on 27 December targeting AI services that simulate human personalities, requiring transparency reminders every two hours, mandatory safety assessments for platforms with over one million users, and emergency human intervention when users express suicidal ideation. Open for consultation until 25 January 2026, the framework marks a strategic shift from content safety to emotional safety in AI governance.

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CPC Politburo Holds Self-Criticism Meeting on Eight-Point Decision After Four-Month Campaign Involving Nearly 100 Million Party Members

Convened in Beijing on 25–26 December under General Secretary Xi Jinping’s chairmanship, the meeting concluded a four-month education campaign that mobilised nearly 100 million Party members between March and July 2025 to reinforce discipline and combat ‘four undesirable work styles’ – with a 2024 National Bureau of Statistics survey showing 94.9% public approval of the regulations’ effectiveness while 596,000 violation cases were investigated and 462,000 individuals disciplined last year.

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Economy

State Council Approves Three ‘Beautiful China’ Pilot Zone Action Plans Covering Beijing-Tianjin-Hebei, Yangtze Delta, and Greater Bay Area

Approved on 26 December 2025, the initiative designates approximately 50 cities and 100 counties as demonstration sites aiming to produce replicable models for ecological conservation by 2027. It builds on a decade of environmental progress during which PM2.5 levels fell from 72 to 29.3 micrograms per cubic metre – a 60% reduction – while GDP grew over 73%, demonstrating that pollution reduction need not hinder economic growth.

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Agriculture and Environment

Record 706 Million Tonnes of Grain Production Marks Key Year for Rural Revitalisation as Peasant Incomes Rise 7.8% Annually

Five years after eliminating absolute poverty, China’s rural revitalisation strategy achieved historic milestones in 2024 – with grain output reaching 706.5 million tonnes (up 1.6% year-on-year), marking the first time the country has surpassed 700 million tonnes. Peasant incomes in formerly impoverished counties grew at an annual rate of 7.8% from 2020 to 2024, reaching 17,522 yuan (US $2,506) per capita, while 33.05 million workers from impoverished households secured employment, demonstrating sustained progress in consolidating poverty alleviation outcomes.

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Science and Technology

China Establishes 20-Year ‘Patient Capital’ Fund for Hard Tech Innovation Targeting Trillion-Yuan Mobilisation

The National Development and Reform Commission and Ministry of Finance jointly launched a national venture capital guidance fund on 26 December 2025, committing 100 billion yuan (US $14 billion) from ultra-long-term special treasury bonds to seed-stage enterprises in integrated circuits, quantum technology, AI, and aerospace. With 49 sub-funds contracted and over 600 planned across Beijing-Tianjin-Hebei, Yangtze River Delta, and Greater Bay Area, the initiative aims to mobilise 1 trillion yuan (US $142.5 billion) as ‘patient capital’ over a 20-year cycle.

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Baowu Steel Launches World’s First Million-Tonne Near-Zero-Carbon Production Line, Cutting Emissions by 50–80%

Employing a hydrogen-based shaft furnace and electric arc furnace process that replaces coal with hydrogen as the primary reductant, the Zhanjiang facility in Guangdong province achieves carbon emission reductions of 50–80% compared to traditional steelmaking while eliminating over 3.14 million tonnes of CO2 annually – equivalent to 2,000 square kilometres of forest carbon absorption – positioning China Baowu Steel Group, the world’s largest steelmaker, at the forefront of the global green steel transition as the EU’s Carbon Border Adjustment Mechanism prepares to take effect.

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Maglev Test Achieves World Record With 0–700 km/h Acceleration in Under Two Seconds

A decade of research by the National University of Defence Technology culminated on 25 December in a superconducting maglev test that propelled a tonne-class vehicle from standstill to 700 km/h in under two seconds on a 400-metre track – surpassing Japan’s L0 record of 603 km/h set in 2015 – while the breakthrough opens pathways for vacuum-tube hyperloop transport and electromagnetic-assisted aerospace launches as the US Hyperloop programme remains dormant since 2023.

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People’s Life and Culture

Child Health Indicators Reach Historic Lows as Infant Mortality Falls to 4 Per Thousand in 2024

The National Bureau of Statistics released the 2024 monitoring report on the China National Programme for Child Development (2021–2030) on 30 December, showing neonatal mortality at 2.5 per thousand, under-five mortality at 5.6 per thousand, and pre-school enrolment at 92.0% – all record levels; with the annual decline rates ranking third and fourth among 53 upper-middle-income countries over the past decade; the sustained improvement reflects comprehensive investments in maternal and child healthcare infrastructure.

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Chinese People Welcome 2026 Year of the Horse With Nationwide Yuan Dan Celebrations

Over 300 cultural events in Shanghai alone marked Yuan Dan (元旦 / New Year’s Day) on 1 January as Chinese families embraced the arrival of 2026 – the Year of the Horse in the zodiac cycle. Distinct from the Spring Festival, which follows the lunar calendar, Yuan Dan has served as China’s Gregorian New Year since 1912, blending the adoption of the Western calendar with traditional festivities, including temple fairs, lantern displays, and countdown gatherings at landmarks from Beijing’s Great Wall to Macau’s Ruins of St. Paul’s.

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