Skip to content

All posts by RWZ - 11. page

Malaysia’s Data Center Expansion Slows in AI Chip War

Taiwanese online news platform NowNews recently reported that Malaysia’s rapid data center development is experiencing a major slowdown. This is not only due to energy and water shortages, but also to the U.S.-China competition in the field of artificial intelligence chips.

From Microsoft and Amazon to Tencent and Huawei, global tech giants are betting on Malaysian data centers. However, under the dual pressures of strict U.S. technology controls on AI chip exports and Malaysia’s increased scrutiny of investment projects, China’s use of Malaysia as an “AI backdoor” is facing unprecedented challenges, making this Southeast Asian country a key frontier at the intersection of technology and geopolitics.

Malaysia has become an emerging powerhouse in Southeast Asia due to its low land and electricity prices and proximity to Singapore. Statistics show that more than two-thirds of the data center capacity under construction in the five major markets in Southeast Asia is concentrated in Malaysia.

The United States has been mounting pressure on Malaysia to prevent China from obtaining export-controlled AI chips through overseas data centers. Starting in July of this year, a “Strategic Trade License” must be applied for and a 30-day advance notification must be submitted for all high-end chips exported, reshipped, or transited through Malaysia.

However, the Malaysian and Southeast Asian markets remain attractive to China due to their proximity, high demand, and relatively low political friction. But with the United States tightening regulatory and trade barriers, overseas expansion for Chinese companies is no longer as smooth as it once was.

Source: NowNews, September 13, 2025
https://www.nownews.com/news/6730676

Briefings | | |   Geo-Strategic Trend Information/Technology

CNA: Poland Closed Belarusian Border, Cutting Off 90 Percent Chinese Rail Traffic to EU (Updated)

Primary Taiwanese news agency Central News Agency (CNA) recently reported that Poland closed its border with Belarus, freezing a critical export route for China to the EU. A Polish Foreign Ministry spokesman said the border closure was in response to “destructive actions by Moscow and Minsk.”

This has caused a major rail route from China to the European Union to come to a standstill. Given that the route accounts for 25 billion euros in annual trade, China has put pressure on Poland to resume cargo transportation as soon as possible. Around 90 percent of rail freight between China and the EU passes through Poland. However, after three hours of talks between Chinese Foreign Minister Wang Yi and Polish Foreign Minister Sikorski, no results were achieved and Warsaw still refused to reopen the border.

Poland decided to close its border with Belarus before the joint military exercise Zapad-2025 between Belarus and Russia began on September 12. Yet after a Russian drone intruded into Polish airspace, Warsaw authorities announced the measures would remain in place until further notice.

Latest Update: Poland announced on September 22 that it will reopen the ports on September 25, restoring the trade link for the China-Europe Railway Express.

Source:
1. CNA, September 17, 2025
https://www.cna.com.tw/news/aopl/202509170151.aspx
2. Caixin, September 24, 2025
https://www.caixinglobal.com/2025-09-24/poland-reopens-belarus-border-restoring-key-china-europe-rail-route-102365374.html

Briefings | | |   Geo-Strategic Trend

Lianhe Zaobao: China Asked Tech Companies to Stop Purchasing Nvidia Chips

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that China’s Cyberspace Administration instructed several large domestic technology companies, including ByteDance and Alibaba, to stop purchasing Nvidia’s RTX Pro 6000D chips and cancel existing orders.

The RTX Pro 6000D is a new AI chip Nvidia customized for the Chinese market to circumvent U.S. export controls. It’s primarily designed for AI inference tasks. Nvidia previously projected that it would ship 1 million to 2 million of these chips this year. Several Chinese companies have indicated that they will order tens of thousands of RTX Pro 6000Ds and have begun testing and verification work with Nvidia’s server suppliers, but after receiving official instructions, these companies have asked suppliers to stop testing. Chinese officials said that Nvidia had violated China’s anti-monopoly law and would continue to investigate the matter.

Nvidia CEO Jensen Huang responded, saying that he was disappointed with the current situation, but understood that there were larger issues between China and the United States that needed to be resolved, and Nvidia would remain patient.

Some market analysts expressed the belief that China is simply trying to put additional pressure on the U.S. to get more favorable terms in trade talks. When asked about this at a regular press conference, the Chinese Foreign Ministry spokesman did not confirm whether China asked companies to stop purchasing. He only said that China has always opposed discriminatory practices against specific countries on economic, trade and technological issues, and is willing to maintain dialogue and cooperation with all parties.

Source: Lianhe Zaobao, September 18, 2025
https://www.zaobao.com.sg/finance/china/story20250918-7534280?ref=global-finance

Briefings | | |   Information/Technology US-China Relations

Global Times: China Implements Temporary Anti-Dumping Measures on EU Pork Exports

Global Times recently reported that China’s Ministry of Commerce just issued an announcement, preliminarily ruling that there is dumping in China of imported pork and pork by-products originating from the European Union, and decided to implement temporary anti-dumping tariffs ranging from 15.6 percent to 62.4 percent on pork originating from the EU from September, 10.

China is the world’s largest pork producer and consumer. Since 2007, the import volume of pork and pork by-products has been increasing steadily, and the growth rate has continued to expand. During this period, the EU has become China’s largest source of pork-related products. Chinese customs data show that between 2020 and 2023, the average annual proportion of pork-related products from the EU in China’s total imports has soared to 54 percent. China has always used trade remedy measures with caution and has only launched 38 investigations against the EU so far. However, the EU has launched a total of 263 investigations against China.

In the meantime, Radio France Internationale (RFI) reported that the Chinese move escalated a trade dispute between China and the EU sparked by EU tariffs on Chinese electric vehicles. The Chinese investigation, launched last June and widely seen as a retaliatory measure against EU tariffs, has affected more than $2 billion worth of pork exports, with losses concentrated in major producing countries such as Spain, the Netherlands and Denmark. The levy marked a new chapter in trade and political friction between Brussels and Beijing.

Sources:
(1) Global Times, September 5, 2025
https://world.huanqiu.com/article/4OCc9Xrcj8u
(2) RFI, September 5, 2025
https://tinyurl.com/yds9nbhw

Briefings | | |   Geo-Strategic Trend

Lianhe Zaobao: Fewer U.S. Companies Optimistic about China’s Prospects

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, according to an annual survey released by the American Chamber of Commerce in Shanghai, the proportion of American companies optimistic about the outlook was lowest in the manufacturing sector (36 percent) and highest in the retail sector (51 percent). The survey, which involved 254 of its members, was conducted shortly after the United States announced the reciprocal tariffs.

The number of American companies optimistic about China’s business prospects in the next five years has hit a new low for four consecutive years, with only 41 percent of respondents expressing optimism, a decrease of six percentage points from last year. Only 45 percent surveyed expect revenue to grow this year, which would be the lowest level ever. Around 12 percent of respondents listed China as their preferred destination for headquarters investment, the lowest level since the chamber began publishing this annual survey in 1999.

“We welcome the 90-day truce, but the problem has not gone away, it still exists,” said Zheng Yi, president of the American Chamber of Commerce in Shanghai.

Source: Lianhe Zaobao, September 10, 2025
https://www.zaobao.com.sg/finance/china/story20250910-7490805

Briefings | | |   US-China Relations

DW Chinese: Taiwan Steps Up Patrols of Submarine Cables

Deutsche Welle’s Chinese edition recently reported that in February, a Chinese vessel was convicted of allegedly cutting one of Taiwan’s undersea telecommunication cables. Such incidents are viewed as part of Beijing’s “gray-zone tactics,” aimed at draining Taiwan’s resources. In response, Taiwan’s Coast Guard Administration has stepped up 24-hour surveillance in key waters and increased intelligence-sharing with allies.

The Taiwanese government has confirmed two suspected cases of cable sabotage involving Chinese vessels, including one in northern Taiwan. Precautionary measures were heightened after Russia’s full-scale invasion of Ukraine in 2022, and further reinforced following suspected undersea sabotage in the Baltic Sea. Since then, Taiwan has conducted continuous patrols, though the operations have placed heavy strain on Coast Guard resources. Authorities are also monitoring nearly 400 Chinese-affiliated vessels, including cargo ships believed to be convertible for military use.

In March, Chinese researchers unveiled a compact deep-sea cable-cutting device capable of severing even the most durable underwater communication and power lines at depths of up to 4,000 meters.

Source: DW Chinese, September 12, 2025
https://tinyurl.com/yb32ujpc

Briefings | | |   Geo-Strategic Trend

Lianhe Zaobao: U.S. Plans to Restrict Imports of Chinese Drones and Heavy Vehicles

Singapore’s leading Chinese-language newspaper Lianhe Zaobao recently reported that the U.S. government is preparing new regulations to restrict – or even ban – the import of Chinese drones and medium- to heavy-duty vehicles.

Chinese products dominate the U.S. commercial drone market, with DJI alone accounting for more than half of all sales. According to the U.S. Department of Commerce, Chinese companies collectively control at least 75 percent of the market.

In December 2023, the Biden administration signed legislation prohibiting DJI and Shenzhen Autel from selling new drones in the United States. Yet in June 2024, three senior Republican lawmakers sent a letter to the Trump campaign, warning that DJI and Autel equipment still holds “a significant share of the U.S. market and is widely used.”

Washington has already placed heavy restrictions on Chinese auto imports. In September 2024, the Biden administration imposed a 100 percent tariff on Chinese electric vehicles, followed by rules finalized in January 2025 banning Chinese-made smart car software and hardware. However, vehicles weighing more than 10,000 pounds were exempted, enabling companies such as BYD to continue assembling electric buses in California.

Source: Lianhe Zaobao, September 6, 2025
https://www.zaobao.com.sg/finance/china/story20250906-7471969?ref=global-finance

Briefings | | |   Information/Technology US-China Relations

UDN: Canadian and Australian Warships Sailed Through Taiwan Strait

United Daily News (UDN), a major Taiwanese outlet, reported that the Canadian frigate HMCS Ville de Québec and the Australian destroyer HMAS Brisbane sailed through the Taiwan Strait on September 6.

The vessels traveled north along the eastern side of the Strait’s median line, though their final destination remains unclear. China’s military claimed it was conducting “full surveillance” during the transit and asserted that the situation was “under control.”

The joint Canadian-Australian fleet had departed days earlier from the U.S. naval facility in Subic Bay, Philippines. The Ville de Québec recently joined a trilateral patrol with Philippine and Australian forces in nearby waters, an operation that already drew criticism from Beijing. The Canadian Ministry of National Defense has not confirmed the ship’s passage through the Strait.

Source: UDN, September 6, 2025
https://udn.com/news/story/7331/8987939

Briefings | | |   Geo-Strategic Trend