BEIJING DAILY - 24 FEBRUARY 2026
PRC Escalates Japan Pressure, Launches AI IP Theft Campaign Against U.S. Firms
China blacklists 20 Japanese defense firms, tightens export scrutiny on others
Beijing imposed sweeping export controls on Japanese defense-linked entities on February 24, signaling sustained economic pressure despite Prime Minister Takaichi's recent electoral victory. This marks an escalation in China's coercive campaign against Tokyo and reflects Beijing's willingness to use economic tools against key U.S. allies. The timing suggests China is hardening its posture in regional security competition.
Anthropic accuses DeepSeek, MiniMax, Moonshot of systematic AI model theft
U.S. AI firm Anthropic alleges three leading Chinese AI developers used approximately 24,000 fraudulent accounts to illicitly extract results from its models through 'distillation' techniques. This industrial-scale IP theft allegation intensifies U.S.-China technology competition concerns and may trigger new export control measures or corporate restrictions.
German Chancellor Merz to visit China as European leaders pivot back to Beijing
Friedrich Merz will make his first official visit to China as German Chancellor, with meetings scheduled with Xi Jinping and Li Qiang. This continues a pattern of high-level European engagement with Beijing amid Trump administration tariff uncertainty, suggesting European capitals are hedging against U.S. policy volatility by strengthening China ties.
Trump confirms planned summit with Xi but Taiwan and tariffs cloud outlook
President Trump publicly discussed his upcoming meeting with President Xi Jinping while simultaneously attacking Taiwan's chip sector and navigating Supreme Court constraints on his tariff authority. The mixed signals on trade policy and renewed Taiwan rhetoric create uncertainty about U.S.-China dialogue prospects and cross-strait stability.
DRIVING THE DAY
SUMMARY: Beijing imposed export restrictions on 20 Japanese defense entities including Mitsubishi Heavy Industries — a calculated escalation despite Tokyo's recent political transition under Prime Minister TAKAICHI Sanae, demonstrating sustained economic coercion against a key U.S. ally. Separately, Anthropic Corporation publicly accused DeepSeek, MiniMax, and Moonshot AI of using approximately 24,000 fraudulent accounts to systematically extract outputs from Claude models via distillation techniques — the first major corporate allegation of coordinated Chinese AI intellectual property theft, suggesting state-backed industrial espionage at scale. Foreign Minister WANG Yi positioned Beijing as champion of the Global South at the UN Human Rights Council while maintaining calibrated rhetoric on U.S.-Iran tensions. President TRUMP confirmed plans for a summit with President XI Jinping described as a "grand display," though the Supreme Court's tariff ruling has shifted negotiating dynamics in Beijing's favor. END SUMMARY.
PRC Economic Coercion — Japan Defense Blacklist Signals Sustained Pressure Campaign
Beijing blacklisted 20 Japanese defense-linked entities with tightened export controls on 23 February, targeting firms including Mitsubishi Heavy Industries despite Prime Minister TAKAICHI's landslide electoral victory earlier this month. The timing — independent of Tokyo's domestic political calendar — demonstrates strategic calculation rather than reactive posturing. Bloomberg analysis noted the move represents escalation in the monthslong Sino-Japanese dispute, with Beijing willing to maintain economic pressure regardless of leadership changes in allied capitals. The blacklist follows earlier PRC restrictions on rare earth exports to Japanese manufacturers and suggests coordination with broader campaign to exploit transatlantic divisions by punishing U.S. allies while preparing for direct engagement with Washington.
Ministry of Foreign Affairs Spokesperson commentary framed Chancellor MERZ's upcoming Beijing visit as continuation of European pivoting toward China amid U.S. policy uncertainty. MERZ will meet President XI and Premier LI Qiang focusing on bilateral relations and "shared concerns" — diplomatic language suggesting German hedging on technology controls and trade policy. The timing — concurrent with Japan sanctions and ahead of the XI-TRUMP summit — positions Beijing to demonstrate it can fragment Western unity through selective engagement while maintaining coercive pressure on less compliant partners.
Technology & Innovation — Anthropic Allegations Reveal Systematic AI Model Theft Operation
U.S. AI firm Anthropic Corporation on 23 February formally accused three PRC companies — DeepSeek, MiniMax, and Moonshot AI — of using approximately 24,000 fraudulent accounts to illicitly extract outputs from Anthropic's Claude models for use in training rival Chinese systems via distillation techniques. This represents the first major corporate legal claim of coordinated Chinese AI intellectual property theft at scale, moving beyond government warnings to actionable evidence of systematic industrial espionage. The operation's scope — requiring coordination of thousands of accounts to circumvent rate limits and detection systems — suggests state-backed infrastructure rather than ad hoc commercial theft.
Bloomberg reporting characterized the allegations as intensifying concerns over technological decoupling and providing potential trigger for stricter U.S. export controls on AI systems. The systematic nature contrasts sharply with PRC state media's simultaneous celebration of domestic AI achievements including robot rental markets, Spring Festival technology showcases, and Tianma-1000 unmanned cargo aircraft rollout — People's Daily framed these as evidence of indigenous innovation rather than derivative capabilities. The timing coincides with Commerce Department revisions to semiconductor license review policies for China exports, suggesting accumulating U.S. government evidence of technology transfer violations beyond the Anthropic case.
PRC Leadership & Diplomacy — WANG Yi Positions Beijing as Global South Champion
Foreign Minister WANG Yi addressed the UN Human Rights Council on 23 February, stating "no country can be a human rights teacher" while emphasizing sovereignty equality and non-interference as the "golden rule" of international relations. WANG rejected use of human rights discourse to "decorate democracy" or "whitewash hegemony" — implicit reference to U.S. and Western critiques of PRC domestic policies. Multiple references to "Global South demands" and building "just, reasonable, inclusive" governance systems positioned Beijing as champion of developing nations against Western normative pressure.
The speech maintained firm but not escalatory tone — People's Daily and Global Times coverage emphasized cooperative language on "improving global human rights governance" rather than aggressive counterattacks. This calibrated approach suggests deliberate diplomatic preparation for February engagement calendar including MERZ visit and potential XI-TRUMP summit. Separately, WANG's Ministry urged restraint from all parties regarding reported U.S. consideration of limited strikes on Iran, stating escalation "serves no party's interests" — conciliatory positioning contrasting with harder line on Japan and Taiwan issues.
President XI sent congratulatory message to DPRK leader KIM Jong Un on his re-election as Workers' Party General Secretary, with People's Daily and Global Times emphasizing "socialist friendship" and regional cooperation amid "century of changes" (百年变局). The messaging maintained standard diplomatic maintenance tone without provocative framing, suggesting Beijing views Korean Peninsula stability as supporting broader strategic posture ahead of U.S. engagement.
Cross-Strait & Regional — Taiwan Office Explicitly Names Japan in Interference Warnings
Taiwan Affairs Office Director SONG Tao delivered notably direct warning during 23 February meeting with fishing industry delegation led by LIN Bingkun of the Non-Partisan Solidarity Union: "We will never tolerate Japan's attempt to intervene in Taiwan Strait affairs and interfere in China's internal affairs — we will strike head-on." This represents departure from usual "external forces" formulation, explicitly naming Tokyo as target of interference warnings. Ministry of Defense Spokesperson reinforced messaging, stating "any external force daring to provoke will bring about its own destruction" with specific reference to Japanese intervention.
The explicit Japan targeting follows TAO propaganda campaign calculating total Taiwan commitments to U.S. at 19 trillion New Taiwan Dollars across investments, procurement, and military purchases — specific financial framing of alleged "selling out Taiwan" by the Democratic Progressive Party. TAO content described U.S.-Taiwan trade agreement as "kneeling to U.S., selling out Taiwan" and claimed health inspections now require American Institute in Taiwan approval, warning of "complete surrender of food safety sovereignty." This represents intensified domestic wedge issue exploitation rather than policy shift, but coordination with Japan-specific warnings suggests tactical messaging alignment.
SONG's separate Spring Festival visits to Taiwan compatriots in Fujian Province on 11 February emphasized family metaphor: "family affairs should be discussed by family members" and "we absolutely do not allow outsiders to interfere." The soft rhetoric contrasts with harder sovereignty warnings, suggesting dual-track approach of united front engagement with willing partners (Kuomintang, business groups, local officials) while maintaining pressure on Taipei and external supporters.
State media coverage conspicuously omitted Taiwan Strait military activity or PLA operational updates during reporting period despite ongoing regional tensions — notable restraint suggesting calculated de-escalation posture ahead of diplomatic calendar. Cross-strait temperature remains elevated on sovereignty questions while tactical military signaling paused.
Assessment Implications — Summit Dynamics Shift in Beijing's Favor
President TRUMP's 23 February confirmation of plans for XI-TRUMP meeting described as "grand display" comes after Supreme Court struck down emergency tariff authority, forcing recalibration to 15 percent baseline. Bloomberg specialist analysis noted this paradoxically strengthens XI's negotiating position, as TRUMP has been "suddenly denied his favored means of leverage." The structural shift — from threatened escalation to constrained baseline — changes summit preparation dynamics in Beijing's favor.
TRUMP renewed criticism of Taiwan's semiconductor dominance during confirmation remarks, stating cross-strait defense concerns remain unresolved heading into talks. Combined with PRC's Japan targeting and sustained European engagement, Beijing enters summit period with tactical advantages: fragmented Western unity on technology controls, economic leverage over allies, and U.S. president operating under judicial constraints. Commerce Ministry noted "full assessment" of Supreme Court tariff ruling without escalatory language — measured response suggesting confidence in negotiating position rather than tactical retreat.
The Anthropic allegations provide concrete evidence base for potential U.S. export control expansion on AI systems, but timing ahead of XI-TRUMP summit complicates administration response calculus. Whether systematic IP theft claims translate into immediate policy action or become negotiating leverage remains to be determined. PRC state media restraint — notably subdued Global Times output without wolf-warrior provocations — suggests Beijing prepared to maintain diplomatic posture through February engagement calendar while preserving options for pressure escalation on Japan and technology competition with U.S. firms.
PRC POLITBURO STANDING COMMITTEE ACTIVITIES
XI JINPING: Sent congratulatory message to KIM Jong Un on being elected General Secretary of the Workers' Party of Korea at the 9th Party Congress, stating willingness to work together to advance China-DPRK relations and promote regional peace
LI QIANG: No reporting in current collection window
ZHAO LEJI: Presided over 61st chairperson's meeting of the 14th NPC Standing Committee
WANG HUNING: Chaired CPPCC work sessions on adding momentum to cross-strait relations and national reunification efforts, delivered remarks at 2026 Taiwan Work Conference stressing steadfast promotion of peaceful cross-strait development
CAI QI: No reporting in current collection window
DING XUEXIANG: No reporting in current collection window
LI XI: CCDI content focused on Spring Festival inspection work and grassroots corruption monitoring, but no direct mention of LI Xi by name in leadership capacity during this window
OTHER LEADERS WORTH WATCHING
WANG YI: Delivered speech via video link at high-level segment of 61st UN Human Rights Council session on Feb 23, 2026, from Beijing, outlining China's position on global human rights governance and implementation of Global Governance Initiative
MA ZHAOXU: No reporting in current collection window
WANG WENTAO: Responded to media inquiries Feb 23, 2026, regarding U.S. Supreme Court ruling on tariffs; announced German Chancellor Merz will lead high-level economic delegation to China; stated China willing to conduct candid consultations with U.S. in upcoming 6th round of China-U.S. economic talks
HE LIFENG: No reporting in current collection window
SONG TAO: Chaired Taiwan Work Conference Feb 10-11, 2026 in Beijing; presided over Central Taiwan Work Office full meeting on comprehensive Party governance Feb 13, 2026; led visit to Fujian Feb 11, 2026, where he met with over 200 Taiwan business representatives, All-China Federation of Taiwan Compatriots leaders, and local Taiwan community members at Spring Festival gathering in Fuzhou
STATE MEDIA PULSE
Temperature: Stable diplomatic posture with modest tech nationalism; muted on geopolitical tensions
DPRK Solidarity and Regional Stability: Xi's congratulatory message to Kim Jong Un on re-election as WPK General Secretary emphasized in both People's Daily and Global Times. Framed as continuity in socialist friendship and regional cooperation amid "百年变局" (century of changes). No provocative framing—diplomatic maintenance tone.
Domestic Tech Self-Sufficiency Celebration: Heavy People's Daily coverage of AI application rollout, robot rental markets, Spring Festival tech showcases ("科技秀"), and unmanned cargo aircraft (Tianma-1000). Emphasis on rapid evolution of Chinese robotics and digitalization. Internal confidence-building messaging, not externally confrontational.
Restrained Multilateral Human Rights Positioning: Wang Yi's UNHRC address (People's Daily, Global Times) stressed "improving global human rights governance" with cooperative language. Standard pushback against Western critiques, but no aggressive counterattacks. Diplomatic rather than combative framing.
Measured Reactions to US Actions: Global Times covered Trump's potential China visit, US-China arms control talks, and Iran strike plans with cautious tone. Commerce Ministry noted "full assessment" of US Supreme Court tariff ruling without escalatory language (People's Daily). Signaling readiness for dialogue while hedging risks.
Notable absences: Taiwan Straits tensions conspicuously absent from headlines despite ongoing Winter Olympics backdrop. No PLA operational updates in sampled content. South China Sea disputes not featured. Economic slowdown or structural challenges unmentioned.
POLITICAL AND MILITARY POSTURING
Temperature: Routine administrative tone; elevated rhetoric on sovereignty issues and foreign interference; standard Taiwan formulations
Global Human Rights Governance: Wang Yi stated at UN Human Rights Council that no country can be 'human rights teacher'; emphasized sovereignty equality and non-interference as 'golden rule'; rejected use of human rights to 'decorate democracy' or 'whitewash hegemony'
Iran-US Tensions: MFA urged restraint from all parties regarding reported US consideration of limited strikes on Iran; stated escalation serves no party's interests
China-Germany Relations: Welcomed German Chancellor Merz's first visit to China; emphasized mutual respect, equality, win-win cooperation principles; characterized relationship as 'comprehensive strategic partnership'
China-Africa Military Cooperation: MoD spokesperson emphasized 'brotherly and comrade-in-arms' relationship; positioned China as 'most reliable partner'; pledged continued cooperation in peacekeeping, counter-terrorism, humanitarian assistance
Foreign Interference in Taiwan: Multiple TAO statements warned 'we absolutely do not tolerate external forces attempting to contain China through Taiwan'; 'any external force daring to provoke will bring about its own destruction'; specific reference to Japan interference
CHINESE GOVERNMENT ACTIVITY
The Ministry of Finance is intensifying budgetary oversight with enhanced monitoring mechanisms in Dalian and closed-loop supervision of disaster recovery funds in Gansu, while continuing government bond issuances for 2026, signaling careful fiscal management amid reconstruction needs. The Supreme People's Procuratorate has deployed 60 technical investigation officers to break down "technical barriers" in case handling and is strengthening enforcement against commercial espionage and intellectual property violations, particularly targeting high-frequency copyright infringement cases involving major cultural IPs like "Nezha" and Pop Mart. A nationwide Party campaign on establishing correct performance metrics has been launched following publication of Xi Jinping's collected works on the topic, emphasizing practical achievements for the people rather than superficial political accomplishments, while Xi congratulated Kim Jong Un on his reelection as General Secretary of North Korea's Workers' Party.
U.S. GOVERNMENT ACTIVITY
The Department of Commerce has revised its license review policy for semiconductor exports to China, while Applied Materials faces a $252 million penalty from BIS for illegally exporting semiconductor manufacturing equipment to China, signaling intensified enforcement of export controls on critical technology. Additionally, the United States and India signed the Pax Silica Declaration and are actively promoting AI adoption and sovereignty through the India AI Impact Summit, reflecting a strategic pivot toward strengthening technology partnerships with democratic allies as a counterweight to China's technological ambitions.
CATCHING WESTERN MEDIA ATTENTION
Anthropic's formal accusation that DeepSeek, MiniMax, and Moonshot used ~24,000 fraudulent accounts to illicitly distill its AI models represents a significant escalation in U.S.-China AI competition, moving beyond rhetoric to legal claims of IP theft. China's export ban targeting 20 Japanese defense entities, including Mitsubishi Heavy, signals Beijing won't ease pressure on Tokyo despite PM Takaichi's recent election victory—a notable hardening of the Japan-China relationship. Bloomberg's specialist analysis flags that Trump's tariff setback paradoxically strengthens Xi's hand heading into their planned summit, as the president has been 'suddenly denied his favored means of leverage.'