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US-China Relations - 12. page

Official Media on Xi Jinping’s Visit to Russia: China Should Say Four “Don’ts” to the West

During Chinese President Xi Jinping’s visit to Russia, the official Xinhua News Agency published a commentary saying that Western countries were worried about the Chinese leader’s trip to Russia and that China needed to say four “don’ts” to the U.S. and the West.

“Don’t make irresponsible remarks about the normal interactions between sovereign states.” The article said, “Friendship and cooperation between China and Russia are growing. Since 2013, the top leaders of China and Russia have met 40 times; Chinese leaders have visited Russia eight times. Whether the United States and the West like it or not, whether there is a crisis in Ukraine or not, normal contacts between the two countries should not be interrupted.”

“Don’t compare China-Russia relations with those between small groups of U.S. allies.” He added, “The U.S. is stuck in the Cold War mentality, drawing in one faction and isolating the other, forming various alliances and coterie. China and Russia,however, are not allies. It makes no sense for the U.S. and the West to tie China and Russia together at every turn.”

“Don’t undermine China’s efforts to promote peace talks on Ukraine.” The article boasted, “China has recently brokered a successful resumption of diplomatic relations between Iran and Saudi Arabia, two of the Middle East’s oldest enemies. This has drawn waves of praise from the international community and made the United States envious and jealous. It is now worried that the Ukraine issue will be turned around in the same way.”

“Stop using the Ukraine crisis as an excuse to attack and sanction China. The writer criticized, “The U.S. has the military, financial and technological hegemony to slander and oppress China. The Russia-Ukraine conflict is another ‘China containment card’ in the hands of the U.S., which links China and Russia and labels them as authoritarian states and an axis of evil in an attempt to tarnish China’s image. The U.S. has also sanctioned some Chinese companies for suspected support of terrorism.”

Source: Central News Agency, March 21, 2023
https://www.cna.com.tw/news/acn/202303210125.aspx

Briefings | | |   US-China Relations

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

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

China Lost Its Status as the Largest Trading Partner of the U.S.

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that, according to data released by the US Department of Commerce, last year, China lost its position as the largest trading partner of the U.S. It was replaced by the European Union. In 2022, U.S. imports rose sharply, and the foreign trade deficit reached a record high. According to the U.S. Department of Commerce, the U.S. imported $537 billion in products from China in 2022, lower than the U.S. imports of $553 billion from the European Union. However, overall U.S. imports from China increased from the previous year’s $505 billion in 2021. China’s loss of its status as the largest trading nation of the United States has been blamed largely on Covid-19, as well as the diversification of U.S. supply sources. Particularly supplies from other Asian countries have increased. In the meantime, data shows that the trade dependence between China and the United States remains high. In 2022, the total import and export volume of the two countries broke the historic record again after three years, reaching $690.5 billion. During the same period, the U.S. deficit with China expanded by eight percent to $382.9 billion, the second highest in history after 2018. In 2022, U.S. businesses and consumers had strong demand for foreign-made goods and services, and international trade was recovering from the pandemic. China has not benefited significantly from this recovery.

Source: NetEase, February 9, 2023
https://www.163.com/dy/article/HT6175KF0553LKHX.html

Briefings | | |   US-China Relations

U.S. Chip Policy against China Has Shown Results

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that the Chinese tech giant Huawei is once again facing new technology curbs amid an escalation in U.S.-China strategic competition. Some scholars pointed out that, under the cooperation of the United States, Japan and the Netherlands, China’s semiconductor industry is facing real danger. Also, two months after China’s largest chipmaker, Yangtze Memory Technology, was included in the “Entity List” of entities banned by the U.S. Department of Commerce, it announced plans to lay off 10 percent of its workforce. The U.S. government has stopped issuing permits to U.S. companies to export most products and technology to Huawei. This move highlights that the United States has further tightened regulations and related policies on technology exports to China. Chinese Foreign Ministry spokesperson Mao Ning said at a press conference, “This is blatant technological bullying. This practice violates the principles of the market economy and the international economic and trade rules. It damages the international community’s confidence in the U.S. business environment. Mao also emphasized that the bullying behavior seriously undermines the order of international trade. Not only does it damage the legitimate rights and interests of Chinese enterprises, but it also affects the stability of the global industrial chain and the supply chain. Part of the reason for the move by the U.S. Ministry of Commerce is that Huawei has changed a lot compared to when it focused on 5G four years ago. For example, Huawei has expanded its business to submarine cables, cloud computing and other fields. Huawei has yet to comment on the matter.

Source: NetEase, February 1, 2023
https://www.163.com/dy/article/HSFTUF1A055618XM.html

Briefings | | |   Information/Technology US-China Relations

Chinese Satellite Institute Sanctioned by the U.S. for Assisting Russia

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that the U.S. Department of Treasury and the State Department simultaneously announced they would sanction China’s Changsha Tianyi Space Technology Research Institute because the Chinese company assisted Moscow’s Wagner Group during the Russo-Ukrainian War. U.S. Secretary of State Antony Blinken said in a statement that the new sanctions will further impede the Kremlin’s ability to arm its war machine. An unnamed U.S. source revealed that the U.S. has evidence that the Changsha Tianyi Research Institute is supporting Russia in the war. According to the official website of the Changsha Tianyi Research Institute, it is the pioneer and leader of China’s commercial remote sensing satellites and scientific research satellites. The core team members of the Institute are mainly from the Chinese Academy of Sciences, China Aerospace Science and Technology Corporation, China Aerospace Science and Industry Group, and other international aerospace talents. Tianyi has participated in nearly 100 aerospace development projects (including satellites, spacecraft and space stations).

Source: NetEase, January 28, 2023
https://www.163.com/dy/article/HS6LSCG305561249.html

Briefings | | |   Information/Technology US-China Relations

Global Times: Biden Administration Extends China Chip Export Restrictions to Macau

Global Times recently reported that the United States has further tightened export controls on Chinese chips and chip manufacturing equipment, and has further extended the restrictive policies imposed on Mainland China to Macau. The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce published an “interim final rule” in the Federal Register, saying that the control measures announced in October last year also apply to the Macau Special Administrative Region. The announcement claimed that the restricted exports of chips and chip manufacturing equipment may be transshipped from Macau to other places in Mainland China, so the new measures include Macau in the scope of export restrictions. After the implementation of the measure, U.S. companies will need to obtain a license to export to Macau. Last October, without any prior warning, the U.S. Department of Commerce imposed the most extensive restrictions on chip-related exports to China in history. In addition to prohibiting the export of advanced chips, technology and equipment, it also prohibits “Americans” from supporting the “development or production’ of advanced chips in Chinese companies without permission.”

Source: Global Times, January 18, 2023
https://world.huanqiu.com/article/4BLNDLEqFe3

Briefings | | |   Information/Technology US-China Relations

In 2022, Chinese Companies’ U.S. IPOs Raised about 96 Percent Less than in 2021

Well-known Chinese news site Sohu (NASDAQ: SOHU) recently reported that it has been a year and a half since the fever of Chinese companies going public in the U.S. cooled down. According to Wind Data, in 2022, Chinese companies went public in the United States and raised a total of US$582 million, a decrease of about 96 percent compared with the annual financing amount in 2021. Of the dozen or so companies that went public in the U.S. in 2022, most of them were small companies with a fundraising amount of less than US$50 million. The scale of its financing was significantly lower than the level of the previous two years. In 2021, about 40 Chinese companies went public in the U.S., and 16 of them raised more than US$100 million. In 2020, 18 US-listed companies raised over US$100 million. In 2022, as of December 28, the number of IPOs listed in the United States was only 17, setting a new low for the past six years. At present, data-related technology companies going public in the United States still face strict scrutiny from both Chinese and American regulators. Several companies have even withdrawn their prospectuses for listing in the United States.

Source: Sohu, January 2, 2023
https://www.sohu.com/a/623887838_120814277

Briefings | | |   US-China Relations