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THIS WEEK:

Xi attempts to reassure private enterprise, confrontations precede China-Australia military dialogue, Beijing presses Myanmar on cybercrime, China and Cook Islands reinforce bilateral ties, and special trains for silver tourists

1. Xi Reassures Private Enterprise

What Happened: President Xi Jinping met with top private-sector leaders and reassured them that the Chinese Communist Party’s policies toward private enterprise are a core pillar of China’s governance. Attendees were mainly from hard tech industries such as semiconductors, AI, and 5G, highlighting Beijing’s economic priorities. Jack Ma’s presence symbolized a broader effort to restore confidence among China’s entrepreneurs.

Why It Matters: Xi’s reassurances signal a push for policy stability and renewed investment, but his remarks on compliance — pledging to protect legal rights but warning against illegal activities — were meant to reinforce his authority. Xi’s overall message was clear: while Beijing seeks to restore private sector confidence, its support is conditional on alignment with the state’s long-term strategic objectives.
 
By Lizzi C. Lee, Fellow on Chinese Economy, Center for China Analysis (@wstv_lizzi)

Learn More: Lizzi hosted an expert discussion on Huawei’s evolving role in China’s semiconductor industry in the second webinar in the China’s DeepSeek Moment series.

2. Confrontations Precede China-Australia Military Dialogue

What Happened: Beijing hosted the 23rd China-Australia Defense Strategic Dialogue on February 17, marking the resumption of bilateral military talks suspended since 2019. Days earlier, a Chinese fighter jet released flares near an Australian military aircraft, and Chinese Navy ships were detected on an undeclared mission in waters south of Australia.

Why It Matters: While the reopening of military dialogue signals a thaw in bilateral ties, the Chinese military’s aggressive actions against Australia ahead of the meeting undercut the potential for a productive exchange. China’s dual-track strategy maintains dialogue to manage potential conflicts while at the same time reinforcing its military posture to assert its sovereignty and regional influence.

Jie Gao, Research Associate, Center for China Analysis

Learn More: CCA Senior Fellow Lyle Morris explores how China’s military strategists view escalation and crisis management in his new paper.

3. Hundreds Repatriated as China Presses Myanmar on Crime

What Happened: Days after China’s ambassador in Yangon and senior officials from the Ministry of Public Security met with Myanmar’s top diplomat and its home minister to discuss telecom fraud, illegal online gambling, and human trafficking, China announced it would repatriate more than 200 of its nationals found at scam centers near the Thailand-Myanmar frontier.

Why It Matters: Beijing and Bangkok are increasingly concerned about Yangon’s inability to control the cross-border criminal networks operating in lawless enclaves near their borders. Last month, Chinese actor Wang Xing was abducted from a Thai border town and trafficked to work in an online scam center in Myanmar, leading to a dramatic drop in Chinese tourists visiting Thailand.
 
By G.A. Donovan, Fellow on Society and Political Economy, Center for China Analysis (@GA_DonovanASPI)
 
Learn More: Join Asia Society Executive Vice President and Chief Operating Officer Debra Eisenman for an expert discussion on the current situation in Myanmar at Asia Society in New York on March 6.

4. China and Cook Islands Reinforce Bilateral Ties

What Happened: In China on an official state visit, Cook Islands Prime Minister Mark Brown joined Premier Li Qiang in signing “The Action Plan for Comprehensive Strategic Partnership (CSP) 2025–2030,” which establishes a structured framework for China–Cook Islands engagement covering trade, investment, people-to-people exchanges, energy, and maritime issues, including shipping and seabed minerals development.

Why It Matters: The Cook Islands and China established diplomatic ties in 1997, and this latest agreement strengthens the relationship. New Zealand — the Cook Islands’ long-standing and constitutionally tied partner — raised concerns about the meeting and China’s growing presence in the South Pacific. Although the agreement does not contain security-related measures, questions remain about China’s future role in the region.

By Taylah Bland, Fellow on Climate and the Environment, Center for China Analysis (@Taylahbland)

Learn More: CCA Fellow Lizzi C. Lee analyzed Beijing’s attempts to extend its global economic influence in “Tensions Over Industrial Policy and Trade Will Escalate,” her contribution to China 2025: What to Watch.

5. New Tourist Trains Aim to Boost Silver Spending

What Happened: China announced plans to build trains equipped with medical and elderly care services by 2027 as part of an initiative to encourage retirees to spend their sizable pensions and savings on tourism. In 2024, the State Council called for state-owned and private enterprises to increase investment in the “silver economy.”

Why It Matters: As the spending power of China’s fast-growing senior population rises in the coming years, the national network of silver tourist trains presents an opportunity to boost consumer spending and encourage collaboration between the healthcare, transportation, insurance, and financial industries.

By Feifei Hung, Affiliated Researcher, Center for China Analysis (@HungChingFei)

Learn More: In an interview with the South China Morning Post, CCA Co-Founder and Managing Director Jing Qian discussed how China can right-size its economy to navigate immediate economic pressures and the need for long-term structural reforms.