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Monthly Archives: June 2025 - 4. page

Pakistan to Receive Chinese J-35A Jets at 50 Percent Discount With Deferred Payment Plan

Defense cooperation between China and Pakistan has further escalated, with the Pakistan Air Force set to receive its first batch of China’s J-35A fighter jets in August this year. Pakistani pilots have already completed operational training in China, and the new aircraft are expected to be combat-ready no later than the third quarter of 2025.

J-35 is China’s most advanced fighter jet and has not been massively supplied to China’s own air forces yet.

This deal highlights China’s special support for Pakistan. China not only offered Pakistan a 50 percent discount on the price, but also provided a deferred payment option.

China offered the deal after the visit at Beijing of Pakistani Deputy Prime Minister and Foreign Minister Ishaq Dar, as a reward for the Pakistan Air Force’s outstanding performance in the recent India-Pakistan “May 7 Air Conflict.”

Furthermore, both sides announced plans to strengthen cooperation on the China-Pakistan Economic Corridor, including $25 billion in infrastructure investment.

Source: Epoch Times, June 8, 2025
https://www.epochtimes.com/gb/25/6/8/n14527142.htm

Briefings | | |   @CS Defense/Military Geo-Strategic Trend

People’s Daily: Huawei Launches First HarmonyOS PC, Marking New Era in China’s OS Development

Recently, Huawei launched two HarmonyOS-based computers, including its first foldable HarmonyOS laptop. HarmonyOS is a mobile operating system designed to compete with Western operating systems such as iOS, Android, and ChromeOS, while complying with and allowing for surveillance and control by the CCP. People’s Daily published an article praising the release as a move that “marks a new step forward for China in the field of computer operating systems.”

“With this launch, HarmonyOS PCs achieve full-stack autonomy and control, from the kernel to the application ecosystem, in the computer operating system domain. Until now, HarmonyOS has primarily been used in mobile terminals such as smartphones, tablets, and vehicles. The introduction of HarmonyOS PCs extends Huawei’s mobile user base and product strengths into the consumer PC market. It also lays the foundation for seamless integration among phones, computers, tablets, and in-car systems, enhancing the overall user experience.

“Huawei has been building the ecosystem for the HarmonyOS. So far, more than 300 apps have completed compatibility updates with the HarmonyOS and over 150 PC applications are accelerating their compatibility adjustment. By the end of this year, HarmonyOS PCs are expected to support over 2,000 integrated apps, covering key user scenarios such as office productivity, creative design, utility tools, finance, entertainment, education, and gaming.

“As of now, the total number of HarmonyOS-enabled devices, including the new PCs, has exceeded 1 billion units.”

Source: People’s Daily, June 8, 2025
http://finance.people.com.cn/n1/2025/0608/c1004-40496337.html

Briefings | | |   Information/Technology

4 Billion Records Leaked from Centralized Chinese Data Hub, Including Data on Taiwan

According to Cybernews, a Chinese database containing up to 4 billion records and totaling 631GB was exposed in a data leak on May 19. This database was meticulously collected and maintained, with files reportedly covering behavioral, economic, and social activities of Chinese citizens, including WeChat messages and Alipay data. This strongly suggests the data is likely to be from a centralized data aggregation point, possibly used for surveillance, analysis, or data collection purposes.

The Cybernews reviewed 16 leaked data sets:

  • The largest was named “wechatid_db,” containing over 805 million records, likely to be WeChat user data.
  • The second-largest dataset, “address_db”, held more than 780 million records, including residential information with geolocation tags.
  • The third-largest dataset, “bank,” contained over 630 million financial records, with data such as payment card numbers, birthdates, names, and phone numbers.
  • A dataset, titled in Mandarin and roughly translated as “Three-Factor Verification,” included more than 610 million records, likely involving IDs, phone numbers, and usernames.
  • A dataset named “wechatinfo” held nearly 577 million records, possibly including WeChat communication logs or even user conversations.
  • A dataset “zfbkt_db” contained 300 million records, including Alipay card and token information.
  • More than 353 million records were distributed across nine other datasets, covering a wide range of topics such as gambling activity, vehicle registration, employment information, pensions, and insurance.
  • There is also a dataset named “tw_db,” with information related to Taiwan.

Source: Epoch Times, June 9, 2025
https://www.epochtimes.com/gb/25/6/9/n14527844.htm

Briefings | | |   Government/Politics Information/Technology

Chinese Media Hail Aircraft Carrier Breakthrough Near Guam, Claiming PLA Navy Shattered U.S. Second Island Chain Strategy

In June, China’s two aircraft carriers appeared near Guam, drawing praise from Chinese media, which claimed the People’s Liberation Army (PLA) Navy had broken through the U.S.-led Second Island Chain meant to contain China’s maritime reach. The following is an excerpt from one such article:

“For decades, the United States and Japan believed they could confine the PLA Navy to nearshore waters by relying on the First and Second Island Chains.

“That belief was decisively shattered in June 2025. The Liaoning and Shandong aircraft carriers not only broke through the Second Island Chain, but also outmaneuvered the U.S.-Japan surveillance network using a ‘disappear-and-reappear’ tactic.

“Initially, Japan’s Ministry of Defense detected only the Liaoning passing through the Miyako Strait and assumed it was a routine operation. A week later, however, the Liaoning unexpectedly rendezvoused with the Shandong near Minamitorishima (Marcus Island), accompanied by the Type 055 destroyer Wuxi and the supply ship No. 903. Together, they formed a powerful strike group composed of two carriers and two large destroyers.

“Guam – widely regarded as the U.S. military’s ‘unsinkable aircraft carrier’ in the Pacific and home to B-2 bombers and nuclear submarines – is a key stronghold anchoring the Second Island Chain. The Liaoning’s maneuvers demonstrated that this once-assumed “safe zone” is now within reach of Chinese naval power. The Type 055 destroyer, equipped with YJ-21 hypersonic missiles, places Guam squarely within striking range. Meanwhile, takeoff and landing drills by Chinese carrier-based aircraft were interpreted by Japanese media as simulated strikes on Andersen Air Force Base.

“Even more critically, Guam is essentially a remote island. If blockaded by a carrier strike group, the aircraft, submarines, and thousands of U.S. troops stationed there would be completely cut off and left without support.

“It is now clear that China’s strategy is not to compete in aircraft carrier numbers, but to use mobility to neutralize the advantage of fixed U.S. bases. While the U.S. Navy has 11 carriers globally, they are dispersed worldwide. China, currently with just three carriers (Liaoning, Shandong, and Fujian), is able to concentrate its forces in key maritime zones, creating localized superiority.”

Source: Net Ease, June 14, 2025
https://www.163.com/dy/article/K1PP7UUQ0543UXIM.html

Briefings | | |   Defense/Military

People’s Daily Editorial Downplays U.S.-China Trade Deficit, Blames U.S. Economic Structure

People’s Daily recently published an editorial under its pen name Zhongsheng (a homophone for “China’s Voice”) addressing the trade imbalance between China and the United States. The piece argued that the U.S. trade deficit with China is not as severe as portrayed and is primarily the result of structural issues within the U.S. economy.

“The U.S. trade deficit with China in goods is not only a natural outcome of structural issues within the U.S. economy, but also a result of the two countries’ comparative advantages and the current pattern of international division of labor,” the editorial stated.

The article presented several key arguments:

  • Services Trade: In 2024, the U.S. ran a $27.3 billion services trade surplus with China.
  • Multinational Operations: In 2022, U.S.-invested companies in China reported $490.5 billion in sales, far surpassing the $78.6 billion in sales by Chinese companies in the U.S. – a gap of over $400 billion.
  • Global Supply Chains: A significant portion of Chinese exports to the U.S. includes components from the global production network. However, trade statistics are currently calculated based on gross export value, attributing the full value to China. If measured using value-added methods, the U.S. trade deficit with China would be substantially smaller.
  • Declining Proportion: The share of the U.S. goods trade deficit attributed to China fell from 47.5 percent in 2018 to 24.6 percent in 2024, even as the overall U.S. trade deficit hit a record $1.2 trillion in 2024. This, the editorial argues, highlights that the root cause lies in the internal structure of the U.S. economy, not in China’s trade practices.

Source: People’s Daily, June 10, 2025
http://world.people.com.cn/n1/2025/0610/c1002-40497354.html

Briefings | | |   @CS Economy/Resources US-China Relations

All Remaining Macau “Satellite Casinos” to Close by Year-End

Macau authorities announced that the territory’s remaining 11 “satellite casinos” will cease operations by December 31, 2024, affecting 5,600 local employees. The closures result from government regulatory tightening and other contributing factors. A Macau “satellite casino” is a casino that operates under the license of one of the six main Macau casino concessionaires (license holders), but is owned and managed by a separate entity.

Three major licensed gaming companies have notified authorities of their decision to end satellite casino operations: SJM Holdings, Melco Resorts & Entertainment, and Galaxy Entertainment Group.

Secretary for Economy and Finance Lei Wai Nong revealed that among the 5,600 affected employees, 4,800 are directly employed by the major gaming companies, while the remainder work for satellite casino operators. The government has called on operators to properly handle employee-related issues and will monitor transition arrangements.

Authorities pledged to protect workers’ legal rights and provide support including job matching services and vocational training for those in need. The government emphasized its commitment to ensuring affected employees receive appropriate assistance during the transition period.

The satellite casino model originated in the 1990s when Macau had only one government-licensed gaming operator under the late “casino king” Stanley Ho. After Macau’s sovereignty transfer to China, gaming rights were liberalized, leading to multiple licensed operators and a corresponding expansion of satellite casinos to over 20 venues.

However, concerns about the proliferation of gambling culture led to increased regulatory scrutiny. Combined with COVID-19’s impact, satellite casinos began closing in 2022, with only 11 remaining until now. New gaming regulations have further restricted satellite casino operations, ultimately prompting parent companies to abandon their authorization arrangements.

Source: Central News Agency (Taiwan), June 10, 2025
https://www.cna.com.tw/news/acn/202506100179.aspx

Briefings | | |   Economy/Resources

Lianhe Zaobao: U.S. to Build Telecom Base Stations and Replace Huawei’s Equipment in Panama

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that the U.S. government will work with Panamanian security services to install seven new telecommunications base stations with “trusted American technology” in the next two years to replace previously installed Huawei equipment.

The US$8 million project is funded by the U.S. government, but the announcement did not specify which manufacturers’ products would be used instead. The announcement stated: “The United States is working hard to counter China’s malign influence in our region of the Americas to make the continent stronger and more secure”.

For years, the United States has accused Huawei and its telecommunications products of posing national security risks to the countries that use them. U.S. President Trump has repeatedly called on Panama to resist China’s influence on the Panama Canal and threatened to take back the waterway.

Source: Lianhe Zaobao, June 12, 2025
https://www.zaobao.com.sg/news/china/story20250612-6708698

Briefings | | |   Geo-Strategic Trend

China’s Auto Manufacturers in Price War Amid Economic Overcapacity

China’s globally dominant automotive industry has erupted into another vicious price war, highlighting the severe internal competition plaguing the world’s second-largest economy. As the nation enters 2025, it faces what analysts describe as “super involution” – destructive over-competition driven by weak domestic demand and massive overcapacity.

The automotive sector has emerged as China’s economic pillar after the real estate market collapsed in 2021. With revenues reaching 10.65 trillion yuan ($1.48 trillion) in 2024, it officially surpassed real estate’s 9.65 trillion yuan ($1.34 trillion) to become the country’s largest industry. China has maintained its position as the world’s top auto producer for 16 consecutive years and overtook Japan as the leading auto exporter in 2023, with production and sales both exceeding 31 million vehicles in 2024.

However, beneath these impressive figures lies a troubling reality. Industry profits plummeted 8% to 462.3 billion yuan ($64.4 billion) in 2024, with profit margins dropping to just 4.3% – far below the industrial average of 6%. Average profit per vehicle stands at merely 15,000 yuan ($2,089), one-third of Toyota’s margins. Capacity utilization has fallen to 64.9% in the first quarter of 2025, the lowest in recent years.

Geely’s chairman revealed that of China’s 31.43 million vehicle sales in 2024, approximately 20 million units of capacity remained idle, suggesting actual utilization rates of only 50% – well below the industry benchmark of 65%.

The crisis intensified when BYD, China’s leading electric vehicle manufacturer, announced massive price cuts of up to 34% across 22 models in May, forcing competitors to follow suit. Despite criticism from industry bodies and rivals, BYD remains profitable with 2024 revenues of 777.1 billion yuan and net profits of 40.25 billion yuan ($5.61 billion).

Chinese authorities have attempted intervention, summoning major automakers including BYD for regulatory discussions and demanding they avoid selling below cost. However, no concrete enforcement measures have been implemented.

The automotive sector’s struggles reflect broader economic challenges across China. E-commerce platforms continue brutal price wars, with merchants complaining of razor-thin margins. The restaurant, delivery, and ride-hailing industries face similar pressures as unemployment drives more workers into these sectors.

Chinese social media users describe living in a “45-degree life” – unable to compete effectively or completely disengage from the relentless competition. According to AI chatbot DeepSeek’s analysis, this “involution” crisis may persist through three phases: intense pressure until 2030, gradual improvement through 2035, and substantial relief only after demographic changes reduce labor market pressure beyond 2035.

Source: Central News Agency (Taiwan), June 12, 2025
https://www.cna.com.tw/news/acn/202506123002.aspx

Briefings | | |   Economy/Resources