2023 in Review for the People’s Republic of China
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2023 in Review for the People’s Republic of China

TR

Team Red Lantern Analytica

Directorate of Intelligence

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For People’s Republic of China (PRC), 2023 has been a roller-coaster ride. A few recurring themes were present in the Chinese politics and Foreign Policy approach like the Human Rights violations in Xinjiang and Hong Kong, the Trade war with Western countries, the stand on Russia-Ukraine and Israel-HAMAS war, etc.

Here we try to break down a few of these events throughout the year:

  1. Downward economic trend

On 5 December, Moody’s downgraded its outlook for Chinese sovereign bonds from stable to negative, citing concerns over China’s ability to repay government borrowing. The credit rating agency highlighted the ripple effects of a crisis in the property sector, warning that Beijing might need to bail out local and regional governments and state-owned enterprises struggling with rising debts. This move highlights global concerns about the level of debt in the world’s second-largest economy and suggests that China’s credit rating could be cut in the future. This came amid the reports in August that the Chinese Economy is slipping into deflation as consumer prices fell year on year in July for the first time in over two years. The decline is attributed to slowing domestic spending and weaker demand for Chinese products globally. Lesser domestic spending can be attributed to the decline in population. According to the reports released by the government in August, China’s fertility rate had hit an estimated record low of 1.09 in 2022, making it the lowest among countries with a population over 100 million. The working-age population contracted by over 40 million between 2019 and 2022. The decline in the economy prompted Evergrande, China’s heavily indebted property developer, to file for bankruptcy protection in a US court under Chapter 15 of the US bankruptcy code. The company’s collapse fears sent shockwaves through China’s economy. The step came as China’s property sector continued to face challenges, impacting economic growth. Another shock came from Country Garden, once China’s largest developer by revenue, which faced the risk of default. Until August, the company had missed two-dollar bond payments last week and has until early September to address concerns of a potential default. This negative economic trend prompted the Chinese government to suspend the release of youth unemployment figures when youth unemployment had hit a record high of 21.3% in June, citing the need to “further improve and optimize labour force survey statistics.”

In contrast to its declining trend, according to news reports in November, China has become the world’s largest debt collector, with the money owed to the country from developing nations surging to between $1.1 trillion and $1.5 trillion. However, as the debts to Chinese lenders have mounted, the number of suspended or cancelled projects increased which raised concerns in China about the risk of defaults. Chinese lenders are also increasing penalties for late repayments, although this move may alienate borrowers.

  1. Human Rights Violations in Hong Kong, Xinjiang and Tibet

On 18 January, Hong Kong police raided a Lunar New Year shopping fair, arresting six people for selling a “seditious” book related to the 2019 anti-government protests, just days before the celebrations. The individuals, aged between 18 and 62, were accused of producing and publishing a “seditious book about a series of riots that occurred in Hong Kong from June 2019 to February 2020.” These actions spread terror and are part of the ongoing political crackdown on freedom of speech and expression in Hong Kong under the national security law. Then in February, United Kingdom’s MPs through an inquiry by the All-Party Parliamentary Group (APPG) on Hong Kong accused HSBC Bank of complicity in human rights abuses against Hong Kong residents by siding with Chinese authorities and denying pension payouts to those who fled the authoritarian crackdown. The APPG argues that HSBC’s decision has hindered Hong Kong residents from establishing new lives in the UK and deems the bank complicit in human rights abuses. On 4 March, three former members of a Hong Kong organization that arranged annual vigils commemorating China’s Tiananmen Square crackdown were convicted of failing to comply with a national security police request for information. The group disbanded in September 2021, and the charges against its former members were part of a broader crackdown on pro-democracy activists and organizations in Hong Kong. Later that same month, Hong Kong’s national security police arrested two men for possessing children’s books deemed seditious. The arrests were the first known incidents where individuals were detained for possessing books considered seditious which raised concerns about vague definitions of sedition charges in Hong Kong. On 24 July, Hong Kong’s national security police detained the daughter, son, and daughter-in-law of activist Elmer Yuen, accusing them of aiding wanted activists. Elmer Yuen is accused of encouraging foreign countries to impose sanctions on Hong Kong officials and promoting Hong Kong’s self-determination. The arrest was part of a broader crackdown on pro-democracy figures in exile. Authorities in Hong Kong had issued bounties for the arrest of eight activists based overseas, including the UK, US, and Australia.

Not only Hong Kong, there are Human Rights violations in Xinjiang as well. On 24 September, Rahile Dawut, a prominent Uyghur professor specializing in Uyghur folklore and traditions, who disappeared six years ago, was sentenced to life in prison by Chinese authorities for “endangering state security.” Dawut is one among more than 300 Uyghur intellectuals detained since 2016, while an estimated 1.5 million Uyghurs have been held in re-education camps. On 13 October, a report based on a four-year long investigation by the Outlaw Ocean Project revealed the extensive use of forced labour in China’s government-backed fishing industry, including the deployment of Uyghur forced labour in seafood processing facilities. The investigation sheds light on the appalling conditions faced by workers on China’s distant-water fishing fleet and underscores the large-scale use of Uyghur forced labour in seafood processing. The report warns that Beijing’s persecution of Uyghurs has evolved, with some being moved into forced labour after facing global scrutiny. In another case in November, a Uyghur filmmaker Ikram Nurmehmet alleged that he was tortured and forced to confess during his detention in Xinjiang province. Nurmehmet was denied the right to appoint his legal representation and was instead represented by a state-appointed attorney, who allegedly stated that a term of more than eight years in jail was likely, with the result to be made public at a later date. Furthermore, a Human Rights Watch report, in November, suggested that Chinese authorities have closed or altered hundreds of mosques in the northern regions of Ningxia and Gansu, in Xinjiang, as part of broader efforts to “sinicise” religious minorities. Researchers at HRW analysed satellite imagery to examine the mosque consolidation policy in two villages in Ningxia. The study found that between 2019 and 2021, the domes and minarets were removed from all seven mosques, and four were significantly altered, with three main buildings razed and the ablution hall of one damaged. HRW estimates that about 1,300 mosques in Ningxia, a third of the total registered, have been closed since 2020.

Similarly, Human Rights violations are happening in Tibet as well. In July, a study by the Rand Europe Research Institute was released which suggested a pattern of increased activity at high-security detention facilities in Tibet, indicating a potential rise in harsher imprisonments by Chinese authorities. The report used overhead satellite imagery analysis and night-time lighting data to examine 79 detention facilities in Tibet. It found patterns of growth in night-time lighting concentrated in the 14 higher-security facilities, with increases across prisons in 2019-2020 and high-security detention facilities in 2021-2022. To counter such actions by the CCP and gain international support, Norzin Dolma, the Minister for Information and International Relations of the Central Tibetan Administration, in November, visited Australia to urge the government not to compromise on human rights in its relationship with China. She urged the use of Magnitsky-style sanctions laws to target Chinese Communist Party (CCP) officials responsible for threatening Tibetan identity, culture, and language.

  1. Military Aggression in its Neighborhood

On 13 February, the Philippines accused a Chinese Coast Guard (CG) ship of aiming a “military-grade laser light” at one of its vessels in the South China Sea (SCS), temporarily blinding a crew member and disrupting a resupply mission. Again on 6 August, the Philippines accused China’s CG of using water cannons to obstruct Philippine vessels delivering supplies to Filipino military personnel at Second Thomas Shoal in the disputed SCS. Similarly, on 24 September, the Philippines again accused China’s CG of installing a “floating barrier” in a disputed area of the South China Sea, specifically in the Scarborough Shoal, preventing Filipino fishermen from entering the area.

On 8 April, the People’s Liberation Army (PLA) announced three days of drills in the Taiwan Strait and sent dozens of planes across the median line in response to Taiwan’s President Tsai Ing-wen’s visit to the US and her meeting with US House Speaker Kevin McCarthy. Taiwan’s defence ministry reported 42 Chinese fighter jets and eight warships in its air defence identification zone, with 29 planes crossing the median line. Also, in late May, a Chinese fighter pilot engaged in an “unnecessarily aggressive manoeuvre” close to a US surveillance aircraft over the South China Sea, according to the US Indo-Pacific Command. The incident occurred as the Chinese plane flew in front of and within 400 feet of the nose of a US RC-135, causing the American aircraft to fly through its wake turbulence. The Pentagon saw it as part of a wider pattern of risky aerial confrontations by China. This incident happened amid heightened tensions between the US and China over issues like Taiwan and after China refused a US invitation for a meeting between defence officials at the Shangri-La Dialogue Security Forum in Singapore. This was seen as a reciprocal of the incident of February where a US warplane shot down a Chinese high-altitude balloon over the Atlantic Ocean. China claimed the balloon was for meteorological purposes, while the US insisted it was used for spying. Repeating the same pattern towards Taiwan, China conducted military drills around Taiwan in August, issuing a “stern warning” following the stopover of Taiwan’s Vice-President, William Lai, in the US. Furthermore, in October, the Pentagon released a report on China’s military power which suggested that China is rapidly expanding its nuclear weapons arsenal, exceeding previous projections. It also warns about China’s potential development of a new intercontinental missile system that could threaten targets in the continental United States.

On the other side of China’s borders, India’s Defence Minister, Rajnath Singh, during the SCO summit on 27 April, accused China of border aggressions that have “eroded the entire basis” of their relationship. The situation along the disputed Line of Actual Control (LAC) remains unresolved despite 18 rounds of military talks, and there are concerns about the potential for large-scale conflict. China continues border provocations, and India denies any loss of territory. Furthermore, satellite images taken in January 2023 revealed the military modernization on Great Coco, a small island in the Bay of Bengal which led to concerns about China’s influence in the region. Great Coco’s strategic location near the Strait of Malacca and proximity to India’s Andaman and Nicobar Islands increased the concerns. Analysts suggest Myanmar’s military may use Great Coco as leverage in negotiations between India and China for economic and diplomatic support.

  1. Chinese Censorship, anti-espionage law and disinformation campaign

China is manipulating global media through censorship, data harvesting and covert purchases of foreign news outlets. In September, a US report stated that China has spent billions annually on information manipulation, including acquiring stakes in foreign media through public and non-public means, sponsoring online influencers, and securing distribution agreements promoting unlabeled Chinese government content.

Domestically China keeps a close surveillance and censorship. Close to the anniversary of the June 1989 massacre, Chinese censors systematically removed any words or symbols from the internet that could potentially reference the Tiananmen Square massacre. Further on 30 June, China revised its anti-espionage law which broadened the definition of espionage, giving authorities more leeway to punish perceived threats to national security. The US National Counterintelligence and Security Center then warned that the vague revisions could give Beijing more power to access and control data held by US firms in China. The law also raised concerns among businesses, fearing even tighter scrutiny. There were also worries about the law’s impact on human rights and rule of law issues as there were reports that Chinese authorities are using Tik Tok to monitor its people. In April, China expanded its anti-espionage laws which heightened concerns for foreign individuals and entities operating in the country. The amendments expanded the scope of the law to cover anything deemed to threaten national security, broadening the search and seizure powers of authorities, and implementing entry and exit bans on individuals.

In early January, to increase the government’s sway over Alibaba and Tencent, two major tech firms, China offered to purchase “golden shares” in each of them. This policy change is a break from the two-year tech crackdown’s prior approach of enforcing fines and punishments. This action comes after Beijing recently acquired a tiny stock share in ByteDance and Weibo. To protect foreign investment and the competitiveness of Chinese IT companies, the government is shifting its policy and becoming more lenient towards these companies.

On 7 June, a former executive at ByteDance alleged that the CCP accessed user data from TikTok, targeting Hong Kong protesters and civil rights activists. Just a few days before these claims, Chinese President Xi Jinping and top officials had pushed for increased state oversight of Artificial Intelligence (AI) to counter perceived national security threats.

Such restrictions and surveillance led to a nearly 30% decline in WeChat user numbers in Australia over the past three years. WeChat has drawn criticism for similar reasons to those that led to the banning of TikTok from Australian government devices: connections to China and the possibility of data sharing that violates China’s national security regulations. Earlier in February, Canada had also imposed a ban on TikTok preventing its installation on all government-issued mobile devices over concerns about data security and potential Chinese influence.

In response to the Chinese influence over social media platforms, in August, Meta Company shut down nearly 9,000 Facebook and Instagram accounts linked to a Chinese political spam network targeting users globally, including in Australia. The company removed 7,704 Facebook accounts, 954 pages, 15 groups, and 15 Instagram accounts violating its inauthentic behaviour policy. The ‘Spamouflage’ network originated in China and targeted regions worldwide, posting positive content about China and Xinjiang province and criticizing the US, Western foreign policies and critics of the Chinese government. In September, China proposed amendments to the 2005 Public Security Administration punishment law, which seek to criminalize comments, clothing, or symbols that “undermine the spirit” or “harm the feelings” of China which raised concerns among legal experts.

  1. Disappearance of Top Leaders

In July, China’s former Foreign Minister, Qin Gang, was replaced by Wang Yi following Qin’s month-long disappearance from official events. The details surrounding Qin’s absence were unclear, and despite being removed as Foreign Minister, he remained on the State Council. The abrupt reshuffle reflected the mysterious nature of high-profile personnel changes in Chinese politics, where officials can vanish from public view without clear explanations. In August, President Xi Jinping sacked two top leaders of the PLA Rocket Force (PLARF). Two men from outside the PLARF were appointed to lead the unit. The move underscored Xi Jinping’s commitment to tightening the control over the armed forces. The reshuffle came amid a broader campaign to strengthen the CCP’s control over various aspects of society through anti-corruption measures. Then on 24 October, China removed its Defence Minister, Li Shangfu, and ousted former foreign minister Qin Gang from the cabinet. While the reasons for their removal were not provided, the US government had earlier suggested that Li was under investigation.

Conclusion

The year of 2023 indeed has been tricky for Beijing and the 2024 will pose it some great challenges. Xi will likely face a tough time dealing with problems in the West Philippines sea, human rights violations accusations in Xinjiang, Hong Kong & Tibet, and most importantly with the downward spiral of economy the PRC finds itself in currently.

Related Intelligence

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How Chinese Activities Ecologically Impact Tibet and Downstream Regions

Executive Summary The Tibetan Plateau is the single most important source of fresh water in Asia. The Indus, Sutlej, Karnali, Gandaki, Koshi, Brahmaputra, Salween, Mekong, Yangtze and Yellow rivers all begin in its glaciers, snowfields, springs and high wetlands, and together they sustain well over a billion people across South, Southeast and East Asia. Since the People’s Republic of China took control of Tibet in 1950, this landscape has been treated less as a shared ecological commons and more as a frontier to be secured, engineered and extracted. Over the past two decades the pace of that transformation has accelerated sharply. 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Hydropower plants, the Rasuwagadhi and Gyirong border crossings, dozens of bridges and long stretches of highway were wiped out, and Nepal’s Finance Minister estimated reconstruction costs at US$4 to 5 billion, close to a tenth of the national economy. The scientific consensus now places the trigger of the 2026 collapse on the Nepali flank of Langtang Lirung, and this report does not claim that any single Chinese project caused it. The disaster matters for a different reason. It came just thirteen months after the July 2025 flood that did originate in Tibet, from a supraglacial lake on the Purepu Glacier in Gyirong County, and it fits a long pattern of transboundary cryosphere disasters descending from the Plateau. More importantly, it exposed how little the downstream states know about what is happening upstream, how badly exposed critical infrastructure has been sited in the flood path, and how Beijing continues to treat hydrological and environmental information as a strategic asset rather than a humanitarian obligation. The central argument of this report is that Chinese policy on the Plateau is steadily raising the ecological risk carried by Tibetans and by the people of Nepal, India, Bangladesh and Bhutan, while denying them the information and voice they need to protect themselves. The report closes with a set of practical recommendations for downstream governments, regional bodies and the wider international community. Introduction: The Water Tower Under Management The Plateau is often called the Third Pole because it holds the largest store of ice outside the polar regions. It is also warming faster than most of the planet. Assessments of the Hindu Kush Himalaya have found that glaciers in the region disappeared 65 percent faster in the 2010s than in the the preceding decade, and that on current emissions pathways as much as 80 percent of present glacier volume could be gone by the end of the century. Even if warming is held below 2°C, a loss of roughly a third to a half of the ice is projected. More recent observations show that ice loss rates across the region have roughly doubled since 2000. Climate change is a global problem, and China alone cannot be blamed for it. But how a state manages a warming mountain system is very much a national choice. A government that recognised the fragility of the Plateau would slow down, map its hazards openly, share its data freely, and involve both local Tibetan communities and downstream neighbours in decisions about large projects. Beijing has done almost the opposite. 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The mass fell roughly 1,200 metres into the valley of the Lhende Khola, the stream that marks the boundary between Nepal’s Rasuwa district and Gyirong County in Tibet. It shattered into a mixture of pulverised rock, ice and meltwater, picked up loose sediment from a channel that had already been stripped and widened by the previous year’s flood, and became a debris flow of extraordinary speed. The energy released was strong enough to register on seismometers in the United States and Germany as the equivalent of a magnitude 5 earthquake, and early reports did in fact describe it as a quake. The surge smashed into the confluence at Rasuwagadhi and Gyirong Port, then roared down the Bhote Koshi and Trishuli through Timure, Syabrubesi and Betrawati. At Galchhi, about 100 kilometres downstream, the river rose around nine metres within half an hour. Bodies were later recovered as far away as Chitwan and Nawalparasi, which tells its own story about the reach of the flood. Nepal’s disaster authority classified two districts, Rasuwa and Nuwakot, as severely affected and put the number of people impacted at roughly 1.6 million. The damage to infrastructure was immense. Around

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CHINAJULY 29, 2026
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Chinese Cyber-Enabled Narrative Operations Around India’s 2026 Student Protests

We’re pleased to share Red Lantern Analytica’s latest analytical report, “Chinese Cyber-Enabled Narrative Operations Around India’s 2026 Student Protests.” Based on open-source evidence, the report examines how sections of the Chinese digital information ecosystem reframed India’s domestic student protests for Chinese audiences through narrative amplification, political framing, and indirect encouragement. The assessment documents how narratives evolved across platforms including WeChat, Weibo, Xiaohongshu, Guancha, Huxiu, China News Network, and Knews, highlighting recurring themes such as governance failure, democratic decline, political instability, and anti-India stereotyping. We welcome constructive feedback and informed discussion from the strategic affairs, cybersecurity, and policy research communities. To Download PDF of this report click here

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China–Nepal Border Re Survey: Cartographic Invasion or Strategic Overture

In early 2025, China and Nepal launched a comprehensive re survey of their 1,389-kilometre Himalayan border—the first such exercise since 2011. The joint effort, conducted under the provisions of the 1963 Boundary Protocol and revitalized through a bilateral understanding reached in June 2024, is framed as a technical necessity. Yet, the geopolitical undertones cannot be ignored. The question now being asked in Kathmandu, New Delhi, and beyond is whether this effort marks a mere cartographic modernization—or a more calculated strategic overture by Beijing. This re survey has emerged from the revival of the long-dormant Joint Expert Group, a bilateral mechanism that had fallen silent since 2006. Its recent activation comes with renewed energy. With both governments formally agreeing to resume ground work, teams of technicians equipped with satellite imagery, GPS instruments, drones, and digital cartographic tools began conducting on-site inspections of boundary pillars in early 2025. Chinese mapping experts, who possess a far superior technological edge, have been working alongside Nepali surveyors, ostensibly under the spirit of mutual cooperation. However, Nepalese stakeholders have expressed concern about the asymmetric nature of this collaboration—particularly the fear that technical superiority may translate into quiet leverage over physical terrain. For Kathmandu, the official narrative is one of modernization and clarity. Nepalese authorities have emphasized the survey’s potential to resolve minor discrepancies, update outdated maps, and facilitate future infrastructure planning in remote Himalayan regions. This includes better management of border crossings and improved access for development projects that traverse difficult topography. More importantly, government representatives point to the need to regularize trans-Himalayan trade corridors, particularly as Nepal’s reliance on China for trade diversification grows in the aftermath of its ruling leaders favouring Beijing due to political likeness. Despite this, the re survey has reawakened some longstanding concerns. Several areas remain disputed, notably the location of pillar No. 57 in Dolakha, discrepancies in Humla district, and disagreements in the Gorkha region. In these places, uncertainty over the precise boundary line leaves room for friction—not only between locals and authorities but also in terms of international diplomacy. A more recent concern emerged in June 2025, when pillar No. 71 near Kimathanka in Sankhuwasabha was buried due to a monsoon-triggered landslide. The replacement of this marker—how, where, and by whom it is reinstalled—will serve as a litmus test of the spirit of joint management or potential unilateral overreach. What complicates the matter is the simultaneous rise of large-scale Chinese infrastructure projects. The re survey is occurring alongside China’s push to integrate Nepal into its Trans-Himalayan Multi-Dimensional Connectivity Network. This includes the much-publicized Gyirong–Kathmandu railway line, for which feasibility studies are already underway and projected for completion in 2026. The re survey, by refining boundary coordinates and validating terrain assessments, supports these infrastructure plans both technically and diplomatically. Analysts suggest that the mapping exercise serves more than just border clarity—it is foundational to unlocking routes for Chinese investment and logistical presence in Nepal’s northern districts. Public perception in Nepal mirrors this ambivalence. While many welcome the potential for improved connectivity and development, skepticism persists. A recent poll conducted in Kathmandu in March 2025 found that 61 percent of respondents viewed trade and investment as the most valuable aspect of Nepal–China relations, but only 42 percent considered the bilateral relationship “strong,” compared to 57 percent who felt similarly about ties with India. This suggests that while Beijing’s material contributions are appreciated, they have yet to foster the same level of political or emotional trust that India retains. The political class in Kathmandu is therefore walking a tightrope—eager to harness the benefits of Chinese cooperation without ceding perceptual or territorial ground. India, meanwhile, is watching closely. The Sino–Nepali re survey has come at a time when Kathmandu’s own boundary tensions with New Delhi—particularly in the Kalapani–Lipulekh region—remain unresolved. Any perceived tilt toward Chinese narratives, especially if tied to digital mapping or the reinterpretation of pillar positions, could exacerbate tensions with India. New Delhi’s strategic concern centers around whether this re survey offers China more than data: it may offer leverage in the form of terrain familiarity, the legitimization of strategic infrastructure, and a deepening presence in Nepal’s northern periphery. Further complicating the picture is the issue of transparency. China’s prowess in geospatial intelligence, artificial intelligence, and surveillance capabilities is widely acknowledged. The concern within Nepal’s civil society and policy circles is that unless both parties are operating with equal access to mapping data, satellite imagery, and interpretive tools, the process might inadvertently cede informational sovereignty to Beijing. Nepalese lawmakers have demanded that any boundary-related agreements, particularly the proposed “Boundary Management System,” be formally ratified through Parliament and anchored in national law, not merely as memoranda. The public release of digital maps, field updates, and raw survey data has been requested by multiple transparency advocates, yet the details remain mostly behind closed doors. How Kathmandu and Beijing manage these sensitivities in the coming months will be telling. For example, the fate of the buried pillar in Kimathanka could set a precedent. If replaced jointly with public oversight and documented GPS coordinates made available to Nepal’s Survey Department and legal entities, it may reinforce mutual trust. However, if Chinese teams act independently or if mapping data is withheld or quietly revised, it would bolster narratives of cartographic intrusion. Similarly, if the Boundary Management System is passed through Nepal’s Parliament with full legal scrutiny, it will be seen as a sovereign endorsement. But any attempt to institutionalize new mapping standards through executive fiat may spark opposition, especially if linked to infrastructural projects involving land reallocation. What bears close watching is how this re survey becomes functionally integrated into Nepal’s broader policy trajectory. Should the updated boundary lines be used to expedite approvals for Chinese-built infrastructure—roads, railways, power corridors, or data cables—it will signal that the cartographic effort is not isolated, but deeply enmeshed in Beijing’s regional strategy. If those infrastructures are followed by increased security presence, surveillance installations, or joint patrol agreements, it may well amount to a silent shift in influence along

TR
Team Red Lantern AnalyticaAnalyst
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