China 5 - March 28, 2025
Opening up, Xi in Yunnan, facial recognition curbs
THIS WEEK:
Overture to global capital, Xi’s visit to Yunnan Province, privacy concerns prompt curbs on facial recognition technology, new deep-sea cable cutter, and more extreme heat
1. China Signals Greater Opening
What Happened: At the 2025 China Development Forum, Premier Li Qiang pledged further opening to foreign capital in the finance, telecom, healthcare, and education sectors. His message was reinforced by the quiet release of previously detained staff from U.S. due diligence firm Mintz Group.
Why It Matters: Beijing is signaling a policy pivot that creates fresh openings for foreign firms in China’s domestic market. The release of Mintz Group staff reinforced this message in an apparent attempt to rebuild trust and show that China is serious about welcoming global capital. Whether that welcome is matched by consistent regulation remains to be seen, but the signal is clear.
By Lizzi C. Lee, Fellow on Chinese Economy, Center for China Analysis (@wstv_lizzi)
Learn More: Follow Lizzi as she examines key inflection points in China’s technological rise in CCA’s China’s DeepSeek Moment video series.
2. Xi Jinping Visits Yunnan Province
What Happened: During a recent trip through southwestern provinces, Xi Jinping visited the Old Town of Lijiang in Yunnan, where he stressed that cultural and tourism industries should “follow a path of sustainable and healthy development.” He was also quoted as saying that Yunnan must develop a sound political ecosystem and continue to “purify itself.”
Why It Matters: Xi first mentioned the “political ecosystem” concept around 2001 while serving as Party secretary of Fujian Province. Xi’s trip to Guizhou and Yunnan highlighted the Party’s role in the economic development of areas that have lagged behind the more affluent coastal provinces but offer prodigious natural resources and host popular tourist sites.
By Lobsang Tsering, Senior Research Associate, Center for China Analysis
Learn More: Read CCA Senior Fellow Guoguang Wu’s recent article, “Xi Jinping’s Purges Have Escalated. Here’s Why They Are Unlikely to Stop.”
3. Privacy Concerns Prompt Curbs on Facial Recognition Technology
What Happened: China’s Cyberspace Administration issued new regulations for the private use of facial recognition technology, allowing people to opt out and requiring service providers to offer “reasonable and convenient” alternative identification methods. The new rules were prompted by growing data privacy concerns.
Why It Matters: Public security organs were early adopters of facial recognition technology, which is now commonplace in public spaces. However, pervasive online scams and telecom fraud have made Chinese citizens more guarded when revealing personal information to businesses — being compelled to use the technology makes many nervous. By addressing these fears, the government shows how it can adapt to widespread public unease.
By G.A. Donovan, Fellow on Chinese Society and Political Economy, Center for China Analysis (@GA_DonovanASPI)
Learn More: G.A. wrote about why social stability remains a top priority for China’s leaders in “Signs of an Unsettled Society,” his contribution to CCA’s post–Two Sessions coverage.
4. New Deep-Sea Cable Cutter Unveiled
What Happened: China unveiled a new deep-sea submersible capable of severing undersea fiber-optic cables. The submersible’s titanium alloy shell allows it to operate in the deepest parts of the ocean, while its robotic arm can cut cables at depths of up to 13,123 feet.
Why It Matters: This is the first time any country has openly disclosed this capability. While designed as a tool for civilian salvage and seabed mining, the submersible undoubtedly has dual-use properties. China has been suspected of cutting undersea cables near Taiwan, and this recent disclosure suggests Beijing continues to seek more robust capabilities for “gray zone” activities in the Indo-Pacific.
By Lyle Morris, Senior Fellow on Foreign Policy and National Security, Center for China Analysis (@LyleJMorris)
Learn More: Lyle explores China’s approach to crisis management and escalation in “China’s Views on Escalation and Crisis Management and Implications for the United States.”
5. Bracing for More Extreme Heat
What Happened: Since March 23, daily temperatures in Hangzhou, China, have consistently exceeded 86°F — peaking at 95°F on March 26. March temperatures typically average 57°F, with the first 86°F day not occurring until May. Beijing also recorded its earliest 86°F temperature in 66 years on March 22.
Why It Matters: Extreme heat is one example of the climate impacts that continue to affect China. In 2024, Hangzhou recorded a historic high of 107°F, and early signs across China suggest extreme temperatures will persist in 2025. Extreme heat can not only exacerbate drought but can also negatively impact public health. China can use the lessons learned from last year to proactively develop adaptation and resilience plans to minimize the harm caused by the effects of climate change.
By Taylah Bland, Fellow on Climate and the Environment, Center for China Analysis (@Taylahbland)
Learn More: Taylah explains why “China Will Accelerate Climate Resilience as a Security Priority” in China 2024: What to Watch.