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CNA: Chinese AI Companies Restricting Services Due to Chip Shortage

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, affected by the U.S. chip export ban, Chinese technology companies have reported chip shortages leading to insufficient computing power. These companies are restricting artificial intelligence (AI) related services. This reliance on chip imports may put China’s technology industry at a disadvantage in the AI competition. China’s semiconductor industry may have found a way to produce advanced chips for 5G smartphones, but it has yet to make chips powerful enough to run AI applications. For example, in order to avoid insufficient computing power, China’s short video and live broadcast platform Kwai had to limit the number of users to test its text-generated video model Kling. Kwai uses Nvidia’s A800 chips to train it AI models. AI startup Moonshot that was recently valued at US$3 billion, also warned its users of their popular chatbot that their computing power may be insufficient during peak hours. Companies such as Alibaba, Baidu and ByteDance that offer large-scale language model applications are telling their enterprise customers who need heavy use to wait in line. All above-mentioned companies declined to comment on this matter.

Source: CNA, June 28, 2024
https://www.cna.com.tw/news/aopl/202406280418.aspx

China Intensifies Anti-Espionage Measures with New Regulations and Nationwide Efforts

On July 1, 2024, China implemented new regulations clarifying law enforcement procedures for its Anti-Espionage Law, which was revised a year ago. The new rules grant national security agencies permission to inspect smartphones and other electronic devices.

The revised Anti-Espionage Law, effective since July 2023, broadened the definition of espionage and allows for the investigation of activities related to “national security and interests.” Under suspicion of espionage, authorities can examine personal belongings and electronic devices.

China has detained at least 17 Japanese citizens since 2014 under this law, with 5 still in custody. In March 2023, a male executive from Astellas Pharma’s Chinese subsidiary was detained and later arrested in October.

Local governments are also strengthening anti-espionage efforts. Several provinces and municipalities held national security meetings in May and June 2024, focusing on preventing infiltration by hostile forces and enhancing surveillance using big data.

The education sector is increasing anti-espionage propaganda, with national security staff visiting schools to discuss security issues, including risks associated with advanced technologies like AI.

China’s revised law requires citizens to report suspected espionage activities and offers rewards for significant contributions, with some individuals receiving over 100,000 yuan. The country is establishing a mechanism for citizens to expose and report espionage activities.

Source: Nikkei Chinese, July 1, 2024
https://zh.cn.nikkei.com/china/cpolicssociety/56013-2024-07-01-10-52-20.html

China Grapples with Anti-Foreign Sentiment Following Attacks on Foreigners

Recent attacks on American and Japanese citizens in Jilin and Suzhou have sparked heated discussions on Chinese social media platforms. The Suzhou incident, which resulted in the death of a Chinese national, led to a surge in anti-Japanese sentiment.

Chinese social media platforms have begun intervening to curb nationalist rhetoric. Some commentators believe the Suzhou incident could have far-reaching effects on China’s economy and foreign investment.

The attack in Suzhou, where a Japanese mother and child were assaulted, resulted in the death of a Chinese bus attendant who tried to prevent the attack. Online discussions following the incident ranged from praising the attacker as a national hero to questioning the loyalty of the deceased attendant.

Former Chinese media professional Zhao Lanjian noted a proliferation of anti-Japanese videos online, many created by young people openly expressing radical views. He suggested these groups might be organized and tacitly approved by authorities.

In response to the controversy, major Chinese social media platforms like Tencent, Douyin, NetEase, and Baidu have taken steps to moderate extreme content and suspend accounts promoting xenophobia.

Political scholar Wu Zuolai observed that nationalism has long been used by Chinese authorities to garner public support and divert attention from social issues. He noted that the recent escalation in anti-Japanese sentiment could have serious economic consequences, potentially affecting foreign investment and job opportunities in China.

The Chinese government has expressed regret over the Suzhou incident and pledged to protect foreigners in China, but some Japanese media outlets have criticized the response as inadequate.

Source: Voice of America, July 2, 2024
https://www.voachinese.com/a/china-cracks-down-on-online-anti-japan-comments-20240702/7682219.html

North Korea Switches to Russian Satellites, Signaling Closer Ties with Moscow

North Korea has switched from using Chinese satellites to Russian satellites for broadcasting its state television programs, according to South Korea’s Unification Ministry. This change has disrupted South Korea’s ability to receive North Korean signals in some areas.

The move comes as North Korea and Russia strengthen their ties. Recently, Russian President Putin visited Pyongyang and signed agreements with Kim Jong-un, including promises of military aid in case of attack.

While South Korean public is legally banned from watching North Korean media, officials and journalists need access to monitor North Korean communications and propaganda.

The US and its allies accuse North Korea of supplying ammunition and missiles for Russia’s war in Ukraine. The recent summit between Kim and Putin has raised concerns about increased material exchanges between the two countries.

Experts suggest this satellite switch could be an experiment to enhance North Korea’s space capabilities, possibly leading to future development of commercial satellites with Russian support. It may also help North Korea block South Korean cultural content from reaching its people through Chinese satellite frequencies.

The change in satellites also indicates that Pyongyang is strengthening its relationship with Moscow, potentially surpassing its traditional alliance with Beijing. This shift might prompt China to increase diplomatic pressure on North Korea.

Source: Deutsche Welle, July 2, 2024
https://p.dw.com/p/4hmdk

Xi Jinping Warned CCP Members Not to Touch the “High Voltage Line”

CCTV published an article titled “The General Secretary Warns Party Cadres Not to Touch This ‘High Voltage Line’.” It quotes Xi Jinping from 2015 to 2024 to warn the Chinese Communist Party cadres to be loyal. On January 1, 2024, the newly revised ” Regulations on Disciplinary Actions of the CCP Members” came into effect, outlining 37 “high voltage lines” across seven aspects for the Party organizations and members. On January 8, Xi stated the “Nine Musts,” which are also considered the “high voltage lines.” Observers have analyzed that the first three “musts,” which are to adhere to the centralized and unified leadership of the Party Central Committee, to lead the great social revolution, and to follow the ideology of socialism with Chinese characteristics of the new era, refer to absolutely safeguard Xi’s leadership and absolutely be loyalty to him.

Echoing the CCTV article, the South China Morning Post reported on June 16th that the Central Committee on Disciplinary Inspection issued a special report on June 12th, warning, “Do not openly speak ill of the Party on major issues,” and that “publicly expressing opinions that contradict the decisions of the Central Committee is absolutely not allowed.” The report also warned that “irresponsible discussions” of the Party’s major policies, “disrupting thoughts,” publicly criticizing party unity, and obstructing policy implementation will be “severely dealt with.”

Radio France International commented that these articles showed the politicla atmosphere in China is tense as the CCP’s Third Plenary Session of the 20th National Congress approaches.

Source:
1. Radio France International, June 17, 2024
https://www.rfi.fr/cn/中国/20240617-勿碰高压线-习近平在警告谁
2. CCTV, June 17, 2024
https://news.cctv.com/2024/06/17/ARTICfAGfDCWB1wWgoN7oCyI240422.shtml

Guangming Daily: The Impact of Artificial Intelligence on Security Governance

Guangming Daily published an article on Artificial intelligence (AI)’s impact on governance over national culture and security. It stated that AI exhibits a series of prominent characteristics, such as deep learning, cross-domain integration, human-machine collaboration, open collective intelligence, and autonomous control. These features are having a profound impact on national cultural security and governance systems.

The data-driven intelligent analysis capability makes AI an effective tool for in-depth analysis and mining of massive amounts of data, providing extensive data support for security governance. The latest generation of AI technology, by integrating diverse types of information and relying on big data models and powerful computing capabilities, can process and analyze data in real-time and quickly produce and publish results. This efficient and timely information processing greatly facilitates the convenience of cultural dissemination and the timeliness of security governance.

AI can also be used for real-time monitoring and risk identification of cultural security, effectively enhancing the foresight and precision of governance. By deploying advanced algorithms and machine learning models, AI systems can continuously collect information from the internet, social media, and other data sources, analyzing the trends and patterns of cultural dissemination. Statistics show that by the end of 2023, AI systems in China were able to monitor and analyze about 100,000 pieces of sensitive information related to cultural security every day, with approximately 80% of the information being processed in a timely manner.

Source: Guangming Daily, June 23, 2024
https://theory.gmw.cn/2024-06/23/content_37394566.htm

China Held a Propaganda Campaign over International Media Reporters on Xinjiang

To shape the views of some international media reporters, Beijing organized a themed interview group, “Exploring the Core Area of the Silk Road Economic Belt,” to visit Xinjiang for interviews and filming. Nearly 20 media professionals from different countries participated, most of them visiting Xinjiang for the first time. During the nine-day trip, the group will visit cities such as Yining, Urumqi, and Kuqa to gain an in-depth understanding of Xinjiang’s “real situation in terms of high-quality development, ecological protection, cultural heritage, and opening up to the outside world.” Canadian journalist Aiden Jonah said, “My initial impression of Xinjiang came from negative reports in Western media. But as I gradually learned more, many of the accusations and lies in those reports fell apart. I always keep an open mind about Xinjiang and believe in seeing things with my own eyes.”

Source: China News Agency, June 20, 2024
https://www.xj.chinanews.com.cn/xinjiang/2024-06-20/detail-ihecnkzk2010641.shtml

TCL’s Trade Route Shift: Adapting to US Tariffs

TCL Chairman Li Dongsheng addressed the impact of US tariffs on Chinese products at the Summer Davos Forum in Dalian, China. He revealed that TCL has adapted its trade route to maintain sales in the US market, its largest export destination.

Previously, TCL purchased components from the US, manufactured in China, and exported back to the US. However, due to increased tariffs, TCL now buys chips and materials from the US, processes core components like displays in China, then ships semi-finished products to Vietnam, Mexico, and Indonesia for final assembly before exporting to the US.

This new multilateral trade route has maintained TCL’s US sales but has extended the process and increased costs, potentially contributing to US inflation issues.

Li emphasized the importance of balancing interests in economic globalization. He suggested Chinese companies should not only sell products overseas but also invest, create jobs, increase local tax revenue, support local supply chains, and cultivate local suppliers.

Li proposed that Chinese firms should shift from “exporting products” to “exporting industrial capacity,” enhancing awareness and responsibility for promoting local economic development.

Source: Central News Agency (Taiwan), June 25, 2024
https://www.cna.com.tw/news/acn/202406250380.aspx