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China & Taiwan Update, September 4, 2026

ISW · Institute for the Study of War ·

Executive Summary

China is enhancing its national defense mobilization law to requisition civilian assets, including transport and drone industries, for military use, particularly for a potential Taiwan invasion. Concurrently, US officials report that China Ocean Shipping Company (COSCO) vessels are collecting military-relevant intelligence globally. The PLA is also studying lessons from the Ukraine war and focusing on AI-enabled unmanned systems for future maneuver warfare.

Why It Matters

This document provides critical insights into China's evolving civil-military fusion strategy, its intelligence gathering methods, and its military modernization efforts, all of which directly impact regional stability and global power dynamics.

Key Takeaways

  • China's revised National Defense Mobilization Law allows broader requisition of civilian assets for military purposes, including for a Taiwan invasion scenario.
  • COSCO, a state-owned shipping conglomerate, is reportedly used by China for global intelligence collection, leveraging its vast network of ships and ports.
  • The PLA is adapting lessons from the Ukraine war, emphasizing AI-enabled unmanned systems and information superiority for future battlefield maneuver.

Strategic Relevance

The document highlights China's whole-of-society approach to military readiness, its aggressive intelligence collection, and its focus on advanced warfare concepts, all of which have significant implications for regional security and potential conflicts.

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Key Entities

ChinaTaiwanPeople's Republic of China (PRC)People's Liberation Army (PLA)COSCOUnited StatesJapanRussiaShanghai Cooperation Organization (SCO)Pacific Islands Forum (PIF)Xi JinpingVladimir Putin

Best For

Defense AnalystsPolicy MakersIntelligence CommunityGeopolitical Strategists

Related Themes

Civil-Military FusionIntelligence CollectionTaiwan Strait ConflictMilitary ModernizationIndo-Pacific SecurityGreat Power Competition

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