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China Prepares for Economic Confrontation with the United States

As China’s 20th Central Committee concluded its Fourth Plenum, Le Monde reported that Beijing is stepping up economic preparations for a more direct confrontation with the United States. The strategy confirmed at the meeting prioritizes economic “self-sufficiency” over the next five years, while issues such as industrial overcapacity and youth unemployment have been relegated to secondary importance.

The Chinese Communist Party (CCP) has long favored maritime metaphors in its rhetoric, and recent statements suggest that Beijing expects turbulent times ahead. The Central Committee declared that the nation must be ready to face “strong winds, giant waves, and even violent storms,” showing the courage to overcome a host of difficulties, risks, and challenges with “historical initiative.”

China’s economic and political systems remain deeply rooted in state planning. Under President Xi Jinping’s leadership, the plenum confirmed the country’s 15th Five-Year Plan, which lays out strategic goals through 2030. The document devotes significant attention to military modernization, implying heightened competition with the United States—though Washington is not mentioned by name.

Since Xi came to power thirteen years ago, preparing for this rivalry has been a central theme of his governance. Growing tensions with Washington have only strengthened his confidence in the current course, even as it marks a break from four decades of reform and opening. Reducing reliance on the U.S. and its allies has become a cornerstone of national policy, with the plenum communiqué emphasizing the need for “greater self-reliance in science and technology.”

Since the onset of the tariff war launched by President Trump in April, the confrontation between Beijing and Washington has deepened. China has curbed exports of rare earth elements—strategic metals it largely dominates—and suspended imports of American soybeans, targeting Midwestern farmers. Through these measures, Beijing seeks to pressure the Trump administration into easing export bans on advanced AI chips that China still cannot manufacture domestically. Barring further diplomatic deterioration, Xi and Trump may meet at the APEC summit in South Korea from October 31 to November 1.

Despite mounting challenges, China’s leadership remains committed to achieving “socialist modernization” by 2035, viewing the current decade as decisive. Yet Beijing acknowledges persistent economic headwinds, including surging youth unemployment and sluggish domestic demand. The party has pledged to maintain industrial capacity at “appropriate levels” while simultaneously consolidating China’s position as a global manufacturing powerhouse—a balancing act that exposes the inherent contradictions of its economic strategy.

Source: Radio France International, October 24, 2025
https://rfi.my/C7h4

South Korea’s Heavy Reliance on Chinese High-Tech Materials Raises Alarm

South Korea faces growing pressure to diversify its supply chains as new data from the Ministry of Trade, Industry and Energy reveals a deep dependence on China for key materials underpinning its high-tech industries. Information obtained by National Assembly member Lee Jae-gwan shows that South Korean strategic sectors remain overwhelmingly reliant on Chinese imports for essential raw materials and components.

The battery industry is among the most vulnerable. China accounts for 97.6 percent of South Korea’s natural graphite imports and 98.8 percent of synthetic graphite—both crucial for secondary battery anodes. Imports of precursors and nickel hydroxide, used in cathode materials, depend on China by 94.1 percent and 96.4 percent, respectively. The robotics sector shows a similar trend, with reliance on Chinese core drive components rising from 77.7 percent in 2021 to 80.3 percent in 2023.

Advanced display technologies also expose structural weaknesses. Over 90 percent of core materials for Micro LED displays come from China, while OLED materials such as dopants and fine metal masks depend on China by 67 percent and more than 95 percent, respectively. Of the 31 rare metals managed by the South Korean government, 20 are imported from China.

Semiconductor production faces comparable risks: niobium and silicon imports rely on China by 78 percent and 63 percent, while lithium—essential for battery cathodes—is 65 percent sourced from China. Other critical materials such as gallium (98 percent), graphite (97 percent), indium (93 percent), and magnesium (84 percent) also come predominantly from China, underscoring the urgency for Seoul to restructure its supply chains and reduce strategic vulnerabilities.

Source: Yonhap News Agency, October 13, 2025
https://cn.yna.co.kr/view/ACK20251013000900881

Indonesia’s Purchase of 42 Chinese J-10C Fighter Jets Marks Strategic Realignment

Indonesia has announced a landmark deal to procure at least 42 Chinese-made J-10C fighter jets from Chengdu Aircraft Corporation—its first-ever purchase of combat aircraft from a non-Western supplier. The move marks a historic shift away from Jakarta’s decades-long reliance on Western and Russian defense partners.

The Indonesian Defense Ministry confirmed the deal on October 15, with Defense Minister Sjafrie Sjamsoeddin stating that deliveries will begin soon, though further details remain undisclosed. The Finance Ministry later approved a budget exceeding $9 billion for the acquisition. The purchase aligns with Indonesia’s broader military modernization strategy, which also includes orders for 42 French Rafale and 48 Turkish Kaan fighters, alongside joint development of the KF-21 with South Korea.

Defense analysts view the deal as a major geopolitical signal. Beny Sukadis of Indonesia’s Defense and Strategy Institute noted that while Indonesia maintains a non-aligned policy, the large-scale arms purchase from Beijing reflects a clear tilt in strategic orientation and underscores China’s expanding influence in Southeast Asia. He also warned that the move could heighten regional sensitivities given China’s claims in the South China Sea.

The acquisition demonstrates growing confidence in Chinese aerospace technology. The J-10C features advanced systems such as digital fly-by-wire controls, composite airframe materials, and an active electronically scanned array (AESA) radar—capabilities comparable to leading Western fighters. Indonesia’s procurement follows Pakistan’s induction of the J-10CE and reports that Bangladesh is considering a similar purchase by 2027, highlighting China’s accelerating rise as a key player in the global defense market.

Source: Sputnik News, October 16, 2025
https://sputniknews.cn/20251016/1067933070.html

China Claims U.S. NSA Conducted Cyberattacks Through Regional Allies

China’s Ministry of State Security (MSS) has announced the uncovering of what it described as a major cyberattack, alleging that the U.S. National Security Agency (NSA) infiltrated the National Time Service Center in Xi’an, Shaanxi Province. The center, which operates China’s official timekeeping system, is responsible for maintaining critical infrastructure. According to the MSS, a successful breach could trigger widespread disruption—including network failures, financial system instability, power outages, transportation paralysis, and even space launch failures—potentially undermining global time synchronization.

The ministry claimed that its investigation uncovered a systematic and escalating pattern of NSA cyber operations beginning in March 2022. Initially, the agency allegedly exploited vulnerabilities in a foreign smartphone brand’s messaging service to compromise the mobile devices of multiple employees at the center and extract sensitive data. By April 2023, the NSA purportedly used stolen login credentials to infiltrate the center’s computer systems and gather intelligence on its network infrastructure. In August 2023, the MSS alleged, the NSA deployed a new cyber warfare platform equipped with 42 specialized attack tools to launch intensive strikes against the center’s internal systems.

The MSS further asserted that the U.S. has used technical outposts in the Philippines, Japan, and Taiwan as cover to disguise its cyber operations, deflect responsibility, and frame other actors. Chinese officials labeled the United States the world’s leading “hacker empire” and “the greatest source of instability in cyberspace.”

According to the statement, Chinese security agencies have thwarted the alleged cyberattacks and implemented comprehensive countermeasures to safeguard Beijing Time’s integrity. The MSS added that it is providing counterintelligence guidance and conducting security inspections across government departments, public institutions, and key enterprises to strengthen cyber defense nationwide.

Source: Central News Agency (Taiwan), October 19, 2025
https://www.cna.com.tw/news/acn/202510190099.aspx

China’s Surveillance State: Millions of Informants Monitor Targeted Citizens

The dystopian surveillance world depicted in George Orwell’s 1984 has, under the Chinese Communist Party (CCP), become an everyday reality. According to research by Chinese-American political scientist Minxin Pei, the CCP employs tens of millions of “informants,” “eyes and ears,” and intelligence operatives to monitor millions of citizens deemed potential threats. Yet Pei cautions that surveillance is no cure-all, as the regime continues to grapple with corruption, economic stagnation, and internal insecurity.

In his recent book, Pei challenges the widespread belief that China’s control over its 1.4 billion people relies primarily on cutting-edge technologies such as artificial intelligence, facial recognition, and high-definition cameras. Instead, he argues that the true strength of the CCP’s surveillance system lies in its vast organizational reach and mobilization capacity. A wide array of ordinary citizens – food delivery workers, taxi drivers, postal employees, shop owners, business managers, residential committee members, healthcare professionals, teachers, cleaners, hotel operators, and even temple monks – have been recruited as grassroots intelligence gatherers.

Drawing on official documents, Pei estimates that during the 2010s, China maintained between 10.2 and 15.8 million informants, along with 560,000 “special intelligence personnel” as of 2022, and 830,000 to 1.2 million “eyes and ears” active in any given year. These dense informant networks monitor assigned “positions” such as commercial sites, Tibetan temples, university campuses, and online spaces. Surveillance targets – numbering between 7.3 and 12.7 million – include habitual petitioners, protesters, ethnic minorities, and religious figures.

Despite this pervasive monitoring apparatus, sporadic protests still erupt, such as the 2022 White Paper Movement opposing zero-COVID restrictions. Pei notes that such spontaneous demonstrators often fall outside established watchlists, exposing a critical weakness in the CCP’s system of preemptive control. While economic modernization has historically fostered democratization in other nations, in China it has instead furnished the regime with greater resources to refine its surveillance state.

Pei warns that unresolved corruption, deepening economic decline, and rising elite anxiety triggered by Xi Jinping’s ongoing political purges could ultimately erode the regime’s stability from within.

Source: Central News Agency (Taiwan), October 9, 2025
https://www.cna.com.tw/news/acn/202510090070.aspx

Kazakhstan Grants China Priority Status for Second Nuclear Power Plant

Kazakhstan has announced plans to build a second nuclear power plant in the Almaty region, naming China as the preferred contractor. Almasadam Satkaliyev, head of Kazakhstan’s Atomic Energy Agency, disclosed the decision during a parliamentary briefing earlier this month, noting that the southern site was chosen to ease regional power shortages and ensure a stable electricity supply.

The country’s first nuclear power plant, already under construction in the Almaty region’s Ulken village, was awarded to Russia’s state-owned Rosatom. That project involves two VVER-1200 reactors, with an estimated investment of $14–15 billion and a construction timeline of about eleven years.

For the second plant, China National Nuclear Corporation (CNNC) currently holds the leading position among bidders. While no final decision has been made, Satkaliyev said CNNC’s proposal is considered the most favorable. The Chinese firm is offering its Hualong One reactor — an advanced third-generation design with a projected lifespan of 60 years and an efficiency rate exceeding 90 percent.

President Kassym-Jomart Tokayev has repeatedly identified energy security as a strategic priority, emphasizing the importance of partnerships with major international players to strengthen Kazakhstan’s energy resilience. The International Atomic Energy Agency has also approved the construction of another plant near Kurchatov in the Abai region of eastern Kazakhstan.

As the world’s largest uranium producer — holding roughly 12 percent of global reserves — Kazakhstan has not operated any nuclear power facilities since the closure of the Semipalatinsk test site in the 1990s. However, mounting energy demand and widening gaps between production and consumption have led authorities to view nuclear power as essential to reducing dependence on Russian electricity imports and fossil fuels, which still account for about half of the country’s energy mix.

China’s apparent advantage may disappoint European competitors, who were previously sidelined in similar bids. France’s EDF, the sole European finalist for the first plant, ultimately lost despite diplomatic efforts. Kazakhstan’s atomic agency noted that only Russia and China currently offer end-to-end nuclear services — from financing and construction to personnel training and spent-fuel management — underscoring the difficulties European firms face competing in this strategically significant sector.

Source: Radio France International, October 9, 2025
https://rfi.my/C536

Chinese Scholars Question Takaichi’s Ability to Sustain Long-Term Leadership

Sanae Takaichi’s election as president of Japan’s Liberal Democratic Party (LDP) on October 2 has positioned her to become Japan’s next prime minister. However, Chinese academics have voiced skepticism about her political durability, predicting that her tenure may be short-lived – possibly even shorter than current Prime Minister Shigeru Ishiba’s one-year term.

Sha Qingqing, a historian, noted that despite Takaichi’s long political career, she has never held major leadership roles within the LDP – such as secretary-general – or key cabinet positions like finance, foreign affairs, or defense minister. Her previous posts, including Minister of Internal Affairs and Communications and special minister on economic security, have kept her at the periphery of Japan’s core policymaking. Sha added that the ruling coalition’s lack of a parliamentary majority will test Takaichi’s political skill, expressing doubt that her administration could survive a full year.

Lian Degui of Shanghai International Studies University argued that Takaichi’s ability to maintain stable ties with China will directly affect her political survival.

Da Zhigang of the Heilongjiang Academy of Social Sciences warned that unless she softens her hardline conservative stance – particularly on historical and foreign policy issues. He warned that maintaining stable relations on issues involving China’s core interests would be crucial to avoiding the fate of another short-lived cabinet.

Source: Central News Agency (Taiwan), October 6, 2025
https://www.cna.com.tw/news/acn/202510060156.aspx

Chinese Automakers Shift to Partnership Model for European Production Amid EU Tariffs

As the European Union imposes steep tariffs on Chinese-made electric vehicles, Chinese automakers are accelerating their production in Europe this year, though their approach has shifted significantly. Rather than building their own factories, many companies are now choosing to partner with European firms and utilize existing European manufacturing facilities.

The EU’s anti-subsidy tariffs on Chinese electric vehicle imports last year substantially increased costs for Chinese EVs. Given the high expenses and regulatory risks of exporting to Europe, establishing local production lines has become essential for Chinese new energy vehicle makers. Recent announcements reveal this partnership trend: Leapmotor is working with its investor and joint venture partner Stellantis to produce vehicles at a Spanish factory starting in 2026, while Xpeng has partnered with European automotive giant Magna to manufacture its G6 and G9 models at an Austrian facility this year. Reports suggest GAC Group is also exploring contract manufacturing with Magna.

With localized production support, Xpeng will simultaneously enter five European markets, including Austria in October and Switzerland through collaboration with Hedin Group, one of Europe’s largest automotive dealers. Hedin has partnered with BYD since 2022 for sales in Sweden and Germany, and last August sold its German subsidiary, including multiple dealerships, to BYD.

Learning from Tesla’s troubled experience building its German factory, most Chinese automakers now have heightened risk awareness and are exploring lower-cost entry methods beyond independent factory construction. As more Chinese automakers establish European production, auto parts suppliers are also accelerating localization and favoring partnerships with European firms. Battery giant CATL now operates three European production bases—self-invested facilities in Germany and Hungary, plus a Spanish factory under construction in partnership with Stellantis.

European consumers have mixed reactions: some find Chinese vehicles’ technological features attractive, while others remain cautious or refuse to purchase them, preferring to support the European automotive industry during this sensitive period.

Source: Central News Agency (Taiwan), October 3, 2025
https://www.cna.com.tw/news/acn/202510030203.aspx