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Chinese Security Ministry Reports Multi-Stage Cyber Attack by Foreign Anti-China Forces

China’s Ministry of State Security announced on September 12 that foreign anti-China hostile forces recently conducted a sophisticated cyber attack targeting government agency email systems, using compromised accounts as launching points for broader infiltration operations.

According to the ministry’s investigation, the attackers initially gained access to email accounts at local government agencies through technical attacks or phishing emails. Once inside, they secretly activated automatic reply functions on the compromised accounts and embedded malicious software in these automated responses. This created a self-propagating attack mechanism where any email sent to the infected accounts would receive an automatic reply containing viruses, effectively turning recipients into new attack sources.

Beyond the technical infiltration, the foreign forces embedded malicious disinformation within the virus-laden emails, attempting to manipulate public opinion and create broader social impact and security risks.

The targeted government agency oversees a critical industry sector that foreign intelligence agencies and anti-China forces closely monitor as a priority target for espionage and infiltration. The ministry warned that theft of sensitive materials from this sector could severely damage China’s national security and interests.

The investigation revealed that some organizations within this sector had inadequate network security management, creating vulnerabilities that attackers exploited.

The Ministry of State Security emphasized that cyber attacks represent a primary tool for foreign intelligence agencies and hostile forces to conduct infiltration and espionage activities. Given the current high-frequency environment of network penetration and data theft attempts, the ministry called for comprehensive, multi-pronged efforts to strengthen cybersecurity defenses across all sectors.

This incident highlights the evolving sophistication of state-sponsored cyber operations targeting Chinese government infrastructure and sensitive industrial sectors.

Source: Sputnik News, September 12, 2025
https://sputniknews.cn/20250912/1067429129.html

Briefings | | |   Government/Politics

China Dominated Global Solar Energy Market in 2024

China solidified its position as the world’s undisputed leader in solar energy development in 2024, installing 329 gigawatts of new solar power capacity during the year, according to data from the European Photovoltaic Industry Association cited by German analytics firm Statista. This massive installation represents 55 percent of the world’s total new solar capacity for the year.

The global solar market reached a record-breaking 597 gigawatts of new installations in 2024, with other major contributors trailing far behind China’s dominance. The United States accounted for 8 percent of new installations, India contributed 5 percent, while Brazil and Germany each represented 3 percent of global additions. Spain, Turkey, Italy, Japan, and France each held 1 percent market shares, with all remaining countries collectively accounting for approximately 19 percent.

Russian state media outlet Sputnik News wrote that “China’s leadership extends beyond mere installation volumes. The country has established a commanding presence across the entire photovoltaic supply chain, from solar cell production to complete photovoltaic modules, while simultaneously maintaining the world’s largest cumulative solar capacity.”

The Asia-Pacific region continued to drive global solar expansion, representing 70 percent of all new installations worldwide in 2024. This regional dominance reflects the area’s commitment to renewable energy transition and favorable policy environments for solar development.

Source: Sputnik News, September 11, 2025
https://sputniknews.cn/20250911/1067414859.html

Briefings | | |   Economy/Resources

South Korean President Criticizes Anti-Chinese Demonstrations

South Korean President Lee Jae-myung condemned anti-Chinese demonstrations in Seoul’s Myeongdong district during a cabinet meeting at the presidential office in Yongsan on September 8, characterizing such gatherings as disruptive behavior that exceeds the boundaries of free speech.

President Lee expressed concern over recent discriminatory rallies targeting tourists from specific countries, which he said were deliberately undermining bilateral relations. He requested response measures from relevant government departments regarding these demonstrations.

Minister of the Interior and Safety Yoon Ho-jung reported that authorities have strengthened security around diplomatic facilities and issued warnings to protest organizers. In response, President Lee directed government agencies to actively consider implementing sanctions against those involved.

The anti-Chinese demonstrations have been organized by far-right groups near the Chinese Embassy in Seoul’s Myeongdong area following South Korea’s 21st general election. These protests have created tensions with local businesses in the surrounding commercial district.

The president’s criticism highlights growing diplomatic concerns over the demonstrations, which appear to be straining South Korea’s relationship with China. By calling for potential sanctions and increased security measures, the government is signaling its intention to prevent further escalation of tensions that could damage bilateral ties.

The situation underscores the delicate balance South Korea must maintain in managing domestic political expression while preserving important international relationships in the region.

Source: Yonhap News Agency, September 9, 2025
https://cn.yna.co.kr/view/ACK20250909004200881

Briefings | | |   Geo-Strategic Trend

China Elevates “AI+” National Strategy with Ambitious 2035 Vision

China has officially elevated artificial intelligence to the national strategic level with the State Council’s recent release of guidelines for implementing comprehensive “AI+” action. The document sets an ambitious goal for China to fully enter a new era of intelligent economy and society by 2035.

Liu Dian, associate researcher at Fudan University’s China Institute and director of strategic research at Tsinghua University’s AI International Governance Research Institute, told Sputnik that this policy marks China’s determination to secure a dominant position in the global AI competition.

The guidelines outline specific targets across three phases. By 2027, China aims to achieve deep integration of AI with six key sectors, with smart terminals and AI agents reaching over 70% adoption rates. The intelligent economy’s core industries will experience rapid growth while AI’s role in public governance will significantly strengthen. By 2030, AI will comprehensively empower high-quality development, with smart terminal adoption exceeding 90%. The intelligent economy will become a major growth driver for China’s economic development. By 2035, China will fully transition into the intelligent economy and society development stage, providing strong support for achieving socialist modernization.

The policy emphasizes eight key areas for strengthening foundational support capabilities, including enhancing model capabilities, improving data supply innovation, and coordinating intelligent computing power. The government plans to support AI chip innovation breakthroughs and optimize national computing resource allocation.

Global AI investment has surged from $19.04 billion in 2014 to $252.33 billion in 2024. The United States leads with $109.08 billion in 2024 investment, nearly 12 times China’s $9.29 billion. However, experts note that Chinese AI models are rapidly catching up in quality, with performance gaps narrowing significantly across key benchmarks.

The policy represents China’s commitment to transforming from traditional enterprises built around human decision-making to “AI-native enterprises” constructed around AI computational capabilities, potentially reshaping entire industry landscapes through this fundamental organizational shift.

Source: Sputnik News, August 28, 2025
https://sputniknews.cn/20250828/1067099108.html

Briefings | | |   Economy/Resources

Chinese Local Governments Target 70+% Semiconductor Self-Sufficiency for AI Data Centers

Chinese local governments are implementing ambitious plans to reduce dependence on US semiconductors, with several regions setting targets to achieve over 70 percent self-sufficiency in chips used for artificial intelligence data centers, according to a recent report by Nikkei.

Beijing has set a more aggressive target, aiming for 100 percent semiconductor self-sufficiency by 2027. Shanghai plans to achieve over 70 percent domestic control in semiconductors used for AI data centers by the same year. Meanwhile, Guizhou Province’s Gui’an New Area requires approximately 90 percent of semiconductors in new AI-focused data centers to be domestically manufactured.

These local initiatives align with central government directives following a Chinese Communist Party Politburo collective study session on AI in late April, which emphasized support for domestic AI semiconductor development and production. The push comes as Chinese AI services from companies like DeepSeek and Alibaba Group continue expanding, yet remain heavily dependent on Nvidia chips.

China is attempting to transition from US Nvidia products to domestic alternatives like Huawei, but this shift faces significant technical hurdles. The Financial Times reported that DeepSeek’s new AI model development has been delayed due to malfunctions when using Huawei products, as encouraged by Chinese authorities. Additionally, the government is pressuring major private tech companies to adopt domestic semiconductors, with ByteDance reportedly considering Huawei products.

Semiconductor industry experts suggest that in sectors unrelated to economic security, China may continue importing Nvidia products to absorb advanced US technology while enhancing AI computing capabilities. Many analysts believe China will likely maintain a balance between Nvidia and domestic semiconductor sources in the near term, as the complete transition to domestic chips presents considerable technical and practical challenges.

Source: Central News Agency (Taiwan), August 25, 2025
https://www.cna.com.tw/news/acn/202508250092.aspx

Briefings | | |   US-China Relations

China’s Energy Imports from US Nearing Zero

China’s imports of major energy resources from the United States have dropped to nearly zero during President Trump’s second term, Taiwan’s Central News Agency reported last Thursday. In July, China’s combined imports of crude oil, liquefied natural gas (LNG), and coal from the US totaled less than one ton, marking the lowest level since December 2019.

According to data from China’s National Bureau of Statistics cited by research firm CEIC, China’s LNG imports from the US have been zero since March, while crude oil imports ceased in June and remained at zero in July. Coal imports, which previously reached approximately 1.35 million tons, plummeted to less than one ton after May.

This energy “de-Americanization” trend appears likely to persist long-term due to the current stalemate in US-China trade negotiations and China’s efforts to diversify energy import sources following the 2022 Russia-Ukraine conflict. China has strengthened its energy security by expanding supplier diversity.

This isn’t China’s first halt on US energy imports. During Trump’s first term, amid intense US-China tensions in late 2019, imports of these three major energy categories also dropped to zero. However, they recovered quickly after the two countries signed the Phase One trade agreement the following year.

Meanwhile, China’s domestic natural gas production reached 21.6 billion cubic meters in July, up 7.6 percent year-on-year. Pipeline gas imports from Russia and Central Asia totaled 5.2 million tons, increasing 4.8 percent. Russian crude oil imports to China surged 16.8% during the same period.

Experts suggest that China’s access to low-cost Russian crude oil and pipeline natural gas has reduced its appetite for purchasing higher-priced resources like LNG, contributing to suppressed LNG price growth across Asia.

Source: Central News Agency (Taiwan), August 28, 2025
https://www.cna.com.tw/news/acn/202508280059.aspx

Briefings | | |   US-China Relations

Baidu-Lyft Partnership Brings Chinese Autonomous Vehicles to Europe

On August 12, Chinese tech giant Baidu – often called “China’s Google” – announced a partnership with U.S. ride-hailing platform Lyft to launch Level 4 autonomous ride-hailing services in Germany and the UK starting in 2026. These vehicles will operate in designated areas without drivers or safety operators, representing high-level automation with minimal human intervention. The initiative extends Baidu’s Apollo Go (Luobo Kuaipao) network, already the world’s largest autonomous ride-hailing service by volume.

The European move follows Baidu’s July partnership with Uber to expand into Asian and Middle Eastern markets, underscoring a broader global expansion strategy. Apollo Go has completed more than 5 million passenger trips, covering over 100 million kilometers, and by late 2023 deployed over 1,000 vehicles across Beijing, Shenzhen, Chongqing, and Wuhan. Baidu aims to reach 100 Chinese cities by 2030. Globally, China and the United States dominate the sector: of the 16 cities with driverless taxi fleets in 2024, 12 were in China and four in the U.S. Waymo remains the only Western operator with large-scale commercial services, running about 1,500 vehicles across Los Angeles, San Francisco, Phoenix, and Austin.

Europe, by contrast, lags far behind. Current projects are limited to small-scale autonomous shuttles, with investment dwarfed by China and the U.S., which together account for 98 percent of the €100 billion invested globally since 2012. European automakers have largely focused on electric vehicles and incremental automation rather than full L4/L5 capabilities. Regulatory caution, fragmented commercial ecosystems, and lingering public concerns over safety and job losses continue to slow adoption. As French economist Jincheng Ni notes, Europe risks falling further behind unless it accelerates investment and builds the infrastructure to support large-scale autonomous mobility.

Source: Radio France International, August 21, 2025
https://rfi.my/BwTN

Briefings | | |   Geo-Strategic Trend

Japanese Businesses Report Worsening Conditions in China Amid Deflationary Pressures

Japanese companies operating in China are facing increasingly difficult conditions, according to a survey released Thursday by the China-Japan Chamber of Commerce. Covering the period from January to June 2025, the survey found that 40 percent of respondents reported business conditions had “worsened” or “slightly worsened” – a 10-point increase from the previous survey in late 2024. Only 26 percent said conditions had improved, down slightly from the prior assessment. The chamber has also shifted from quarterly to semi-annual surveys beginning with this round.

Deflationary pressures remain the central challenge, with 60 percent of companies citing falling sales prices as their top concern. Rising labor costs followed at 58 percent, underscoring the squeeze of declining revenues alongside mounting expenses. Chamber Chairman Tetsuro Honma, who is also Vice President of Panasonic Holdings, described the excessive price competition in China as “extremely severe” and a “common concern” across Japanese enterprises.

The survey also touched on safety issues, referencing the July assault on a Japanese woman in Suzhou. Honma emphasized that the chamber continues to press Chinese authorities to guarantee the safety of Japanese nationals. Of roughly 8,000 companies targeted, 1,434 responded, providing a broad snapshot of the growing pressures on Japanese businesses in one of their most important overseas markets.

Source: Kyodo News, August 22, 2025
https://china.kyodonews.net/news/2025/08/dac4bafff0a7-4.html

Briefings | | |   Economy/Resources