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February 21, 2026

Daily Briefing — 2026-02-21

China Compass Daily Briefing

 
CHINA COMPASS
Briefing · 2026-02-21 · 8 signals
Canada-China bilateral trade (December 2025)
$10.2B
Imports
$7.0B
Exports
$3.2B
📋 Today's Briefing

German Chancellor Angela Merkel's upcoming visit to Beijing marks a significant diplomatic move, following the footsteps of Canadian and UK leaders. In the context of Germany's economic downturn, Merkel aims to strengthen ties with China while maintaining support for America-led policies. This delicate balancing act could redefine Sino-German relations.

Meanwhile, Taiwan's Kuomintang (KMT) party calls for renegotiating the Agreement on Reciprocal Trade (ART) with the US, after a Supreme Court ruling cast uncertainty over Trump's tariff policies. The KMT's move reflects growing concerns about the stability of trade deals.

The bottom line: Merkel's visit to Beijing and the KMT's call for trade deal renegotiation highlight the complex dynamics of global diplomacy and trade. As China's military purge continues, the country's leadership aims to address internal challenges while navigating international relations.

China Compass tracks daily Canada-China signals. Visit www.chinacompass.ca for more.

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🔔 Top Signals
📦 trade
Merz will visit Beijing and redefine Sino-German relations?
Why it matters
German Chancellor Merkel is set to visit Beijing, another important diplomatic move following visits by leaders from Canada and the UK.
→ However, Germany faces challenges compared to other Western countries when it comes to building closer economic ties with China while maintaining significant strategic independence.
DW Chinese
📈 economic
After Trump's tariff ruling, KMT calls for renegotiating the US trade deal.
Why it matters
The Kuomintang (KMT) of Taiwan called for renegotiating the Agreement on Reciprocal Trade (ART) with the United States after the U.S.
→ KMT urged the government to clarify the agreement’s validity and seek negotiations given uncertainties about future US tariffs...
Focus Taiwan
🛡️ military
Xi Jinping’s military purge creates risks: Joe Varner in Real Clear World
Why it matters
China's military purge under Xi Jinping involves the removal of key leaders such as Vice-Chairman Zhang Youxia and General He Weidong, significantly reducing the Central Military Commission to three members with Xi Jinping maintaining direct control.
→ This restructuring aims to address growing distrust within the armed forces but could weaken overall military effectiveness and civil-military relations, potentially impacting regional stability.
Macdonald-Laurier Institute
🤝 diplomatic
Qatar's Prime Minister Telephones with Iran's Foreign Minister to Discuss Progress of US-Iran Negotiations
Why it matters
Qatari Prime Minister and Foreign Minister Mohammed spoke by phone with Iranian Foreign Minister Mohammad Javad Zarif on February 21st, focusing on exchanging views on the latest developments in negotiations between Iran and the US as well as current regional situation.
→ Both sides emphasized their commitment to continuing communication and coordination efforts to advance the diplomatic process and ease regional tensions.
China News Service
🏛️ political
Hotels visited by tourists receive negative reviews! Taiwanese netizens flood with 5-star ratings and warm messages. Operators surprised and pleasantly respond.
Why it matters
A Japanese inn, "Kashidaya Ryokan" in Yamagata Prefecture, Japan, issued an open letter titled "To My Dear Taiwan Tourists." (Left: Google Map, Right: Taken from Kashida ya Ryokan's fan page.
→ And expressing how he was disappointed to receive such negative feedback under these circumstances.
Liberty Times
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BYD Company HK$95.45 ▼ -2.45%
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China Compass
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