Good question. I think it depends on the issue being analyzing. When it comes to analyzing Western countries' views on human rights and such, China has shown itself rather poor and understanding them. One example that comes to mind is when Chinese diplomats raised a fuss over the Uighur exiles' activist Rabiya Kadeer showing a video in Australia. The diplomats tried and failed to get her banned, and when it failed, all the press coverage made her movie screening widely attended. China's efforts backfired there. How could Chinese diplomats think they could get this woman banned from entering Australia and showing her movie? They must've tried some behind-the-scenes arm-twisting.
On the other hand, I suspect China's intelligence services know Taiwan backwards and forwards. I mean the people, the factions, the issues, and money, everything. The same goes for international economic issues. The Chinese government's reaction to the Great Recession has been well-planned and executed. It has barely affected their economy. That shows there are some good economists working for the government. Considering the successes in winning over Asian and African governments, I'd say they're got some good analysts working on those regions too.
But Chinese intelligence apparently failed to predict President Obama's "pivot" to Asia and stationing marines in Darwin, Australia. China looked a little foolish after that announcement. Ditto for China's backpedaling on the Spratly Islands after Vietnam and the Philippines pushed back hard. China's intelligence agencies are charged with understanding the views of foreign populations and governments and it's not hard to see how Filipino and Vietnamese people feel about those islands.
I'm curious how many Chinese intelligence and foreign ministry officers have been educated in the West. I've heard that a Western education hurts one's Chinese government career prospects. A Western education can be enlightening to understanding Western political thinking. The same goes for Westerners who studied in China. Although there are far fewer Westerners who have studied in China and know Mandarin, those few people are coveted for intelligence positions. Can the same be said of Chinese international students in the West?


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