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China Times: Foxconn Plans $700 Million New Investment in India

Major Taiwanese newspaper China Times recently reported that top Apple supplier Foxconn, after setting up a foundry in India, developed recent plans to invest an additional US$700 million to build a new factory in India. The new production line is expected to be used to take over the iPhone production capacity transferred from Mainland China. Indian officials said that Apple wants to shift 25 percent of its iPhone production capacity to India due to concerns over the Chinese supply chain risks. The factory covers an area of about 1.2 square kilometers. In addition to the production of iPhones, the factory may also be used for electric vehicle parts. The new factory is expected to employ 100,000 workers. This investment is one of Foxconn’s largest single investments in India so far. In the future, China may face the risk of losing its status as the world’s largest producer of consumer electronics . Foxconn’s Zhengzhou (China) factory output dropped sharply due to the Chinese government Zero Covid lockdown at the end of last year, making Apple re-examine its supply chain in China. Foxconn’s investment in India may be a move to stay in line with Apple’s policies. Some reports indicated that the Apple iPhone 14 series 2022 production slipped by nearly 6 million units.

Source: China Times, March 3, 2023
https://www.chinatimes.com/cn/realtimenews/20230303005016-260409?chdtv

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The U.S. Added More Chinese Tech Companies to the Entity List

Well-known Chinese news site Sina (NASDQ: SINA) recently reported that the U.S. Department of Commerce has included an additional 28 Chinese companies and research institutions in the so-called Entity List on the grounds of national security and foreign policy interests. The Chinese companies added this time include Inspur Group (a Server hardware supplier), Loongson Technology (a leader in the CPU design field), 4Paradigm Technology (an artificial intelligence provider), BGI Research (genetic research), Suzhou Centec Communications (an Ethernet exchange chip designer), and a number of others. According to the regulations of the U.S. Department of Commerce, companies included in the Entity List must obtain authorization from the U.S. government to obtain U.S. products and technologies. Inspur Group, is a major player in China’s cloud computing, big data, hosting, and the artificial intelligence market. It depends heavily on Intel’s technology for its services. When contacted by reporters for comment, several companies said they were still assessing the situation and impact . A Chinese Foreign Ministry spokesperson commented earlier that the United States has repeatedly generalized the concept of national security, abused export control measures, adopted discriminatory and unfair practices against companies from other countries, and politicized and weaponized economic, trade and technological issues.

Source: Sina, March 3, 2023
https://news.sina.cn/2023-03-03/detail-imyiqnky4786782.d.htmlW

Briefings | | |   Information/Technology US-China Relations

Global Times: European Commission Asked Staff to Uninstall TikTok

Global Times recently reported that, due to so-called data protection considerations, the European Commission has asked the agency’s staff to uninstall TikTok from work devices and personal devices using work applications. The Commission’s staff members were asked to delete TikTok no later than March 15. For those who do not comply by the deadline, work applications will no longer be available on the relevant device. This is the first time the agency has suspended its staff from using an app. A spokesman for the European Commission said it was the result of a “careful analysis,” but declined to disclose the information that led them to conclude that the app posed a significant cybersecurity and data risk to the Commission. The European Parliament also said that it was monitoring and evaluating all possible data breaches related to the app and would consider the European Commission’s assessment before making recommendations. A TikTok spokesperson expressed disappointment in this decision. For some time, the United States has been at the forefront of suppressing TikTok. Politicians in the U.S. frequently use “national security” as an excuse to request restrictions on the use of the app. In December last year, the United States banned the use of TikTok on all federal government devices. Although no EU government has followed the example of the United States, yet some countries, including the Netherlands, are evaluating whether to impose restrictions on the use of TikTok by government staff.

Source: Global Times, February 23, 2023
https://world.huanqiu.com/article/4BpFVNteESh

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Over 5,700 Chinese Chip Companies Disappeared in 2022

Well-known Chinese news site Sina (NASDQ: SINA) recently reported that China’s “chip gold rush” is now showing signs that the tide is ebbing. Based on the latest statistics, in 2022, China revoked and cancelled the registration of 5,746 chip-related companies, far exceeding previous years. This represented an increase of 68 percent from 3,420 in 2021. Data further showed, in the four months from September to December last year, more than 2,300 chip companies were suspended or deregistered in China. This means that on average, more than 15 chip companies dropped out of the industry. With the U.S. Federal Reserve raising interest rates, inflation, the US-China decoupling, and the global semiconductor industry entering a downward cycle, it has been difficult for the domestic chip industry to remain untouched. The performance reports of the 49 domestic listed chip companies are seeing a year-over-year decline in net profit. These companies are suffering both on the performance side and on the side of the sale of stock prices. In addition, the United States continues to restrict semiconductor exports to China, which has also greatly affected the performance of the Chinese chip companies and industry confidence. China’s integrated circuit industry started and rose in the wave of globalization, and is accustomed to a global resource allocation. Now that the industrial development situation has changed, Chinese companies must adjust their strategies as soon as possible. The new mission is to find out how to reduce imports, increase local production, and strengthen the export of domestically produced chips while ensuring the safety of the supply chains. It is critical for China to form its own product family system and technical standards.

Source: Sina, February 16, 2023
https://cj.sina.com.cn/articles/view/2853016445/aa0d937d02000xqye

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Global Times: Computing Power Is Becoming a New Engine for Digital Economic Growth

Global Times recently reported that computing power, like water and electricity, has become a necessity in our lives. China is accelerating its integration into all fields of the economy and society. The processes of implementing real-life application scenarios such as smart manufacturing, smart city, smart medical care, and driverless cars, are all inseparable from the support of massive computing power. Computing power has gradually become a new engine for digital economic growth. Last February, the National Development and Reform Commission, the Central Cyberspace Affairs Commission, the Ministry of Industry and Information Technology, and the National Energy Administration officially launched the national “East Data West Compute” program which consists of eight National Computing Power Hub Nodes in the Beijing-Tianjin-Hebei, Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and in the Chengdu-Chongqing, Inner Mongolia, Guizhou regions, and in the planned ten National Data Center Clusters. The “East Data West Compute” program guides the intensive computing power demand from the east to the west in an orderly manner. It also enables the cross-region flow of data elements and it also promotes the rapid development of the digital economy and the artificial intelligence industry with a national integrated computing power network. Recently, the Shanghai Data Center has started dividing high volume business data and distributed non-realtime computing loads to the Inner Mongolia Computing Hub, which has the advantages of a low electricity price and natural low temperature cooling. The program promotes an east-west balanced resource structure of domestic data centers to establish a clustered, integrated layout from a national perspective to improve efficiency.

Source: Global Times, February 16, 2023
https://finance.huanqiu.com/article/4BjecqI2uhL

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CNA: China Plans to Scrutinize the CATL Battery Contract with Ford

Primary Taiwanese news agency Central News Agency (CNA) recently reported that China will scrutinize the latest contract between Ford Motor Co. and Chinese battery leader CATL to ensure China’s core technology doesn’t fall into Ford’s hands. Given the sensitivity of the contract and the current tensions between China and the United States, top Chinese officials have called for strict scrutiny of the contract. Ford announced, not long ago, that it will invest US$3.5 billion to set up an electric vehicle battery factory in Michigan with the assistance of CATL. According to the contract, CATL will approve the provision of technology and technical assistance required by Ford to produce lithium iron phosphate batteries in Michigan. Republican Senator Marco Rubio has asked the Biden administration to review Ford’s contract to use Chinese technology for the battery plant. A spokesman for Democratic Senator Joe Manchin said that Manchin has voiced serious concerns about the reliance on China for the auto supply chain and that Ford must answer some serious questions before Senator Manchin can fully evaluate the partnership. A Ford spokesman said that, to the best of his knowledge, Chinese government officials were not involved in this deal. Contemporary Amperex Technology Co. Limited (CATL), is a Chinese battery manufacturer. In 2021 it had a global market share of 32.6 percent . It is the biggest lithium-ion battery manufacturer for EVs in the world.

Source: CNA, February 17, 2023
https://www.cna.com.tw/news/aopl/202302170338.aspx

Briefings | | |   Information/Technology US-China Relations

Chinese Scholar: China’s Academia Is Full of Fake and Low Quality Publications

Recently, a report by Li Bozhong (李伯重), published on China’s Tribune of Social Science in 2005, was spread on the Internet. Li discussed his view that despite the fact that Chinese scholars have been publishing many academic papers, most are fake or of low quality.

Li is a famous Chinese economist, a researcher at the Chinese Academy of Social Sciences, and also a professor at Tsinghua University, Peking University, and Hong Kong University of Science and Technology.

In Li’s view, Chinese researchers have ignored both theoretical and foundational research in the academic fields and have focused only on the practical areas of the hot applications of technologies. This is due to the Chinese people’s focus on immediate short-term gain. Hot applications can result in fame and bring money in quickly while the basic research may not yield any fruit for years or decades. As a result, some foreign scholars have said that, except for the papers published by a few trusted serious Chinese scholars, they would not read any papers written by other Chinese authors.

Source: Sina, November 5, 2021
https://k.sina.com.cn/article_1250060497_4a8268d1019011jor.html#/

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LTN: India Again Blocked Nearly 200 Chinese Apps and Websites

Major Taiwanese news network Liberty Times Network (LTN) recently reported that India has ordered the blockade of 232 apps and websites, most of them linked to China. This underscores tensions between the two countries after years of border clashes. According to a source familiar with the matter, the Indian Federal Technology Ministry has ordered the removal of 138 betting and gambling apps and 94 credit services. The order came from the Interior Ministry, which oversees domestic affairs including national security. The source asked not to be identified because the full content of the order has not been made public. The blocked apps, including several from India, are suspected of transferring data to China. India’s central bank has also tightened digital lending regulations after finding some apps allegedly breached norms and harassed customers. Indian domestic laws allow the government to block public access to content for reasons such as national security interests. Last year, India banned multiple Chinese applications such as Alibaba and Tencent’s WeChat. India also banned the use of Tik Tok. In the meantime, India is also moving to restrict Chinese companies in other areas and is considering restricting Chinese cell phone makers from selling devices below 12,000 Rupees, a blow to a number of brands, including Xiaomi.

Source: LTN, February 8, 2023
https://ec.ltn.com.tw/article/breakingnews/4204452

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