Skip to content

Monthly Archives: September 2025 - 7. page

U.S. Cotton Exports to China Plunge 90 Percent

U.S. cotton exports to China dropped by nearly 90 percent year-over-year in the first half of this year, according to data from the London Stock Exchange Group (LSEG). Meanwhile, exports to Pakistan and Turkey rose, and shipments to Vietnam nearly tripled.

The apparel industry has been steadily shifting production for the U.S. market from China to South and Southeast Asia, where labor costs are lower. This shift accelerated in the first half of the year, driven in part by U.S. tariffs. Washington is now closely watching for transshipment practices, where factories route goods through third countries to bypass higher tariffs. Facilities heavily dependent on Chinese inputs may be flagged as engaging in such practices.

With U.S.–China trade negotiations stalled, the apparel sector remains concerned about the risks of over-reliance on Chinese supply chains.

Source: AAStocks, September 3, 2025
https://www.aastocks.com/tc/usq/news/comment.aspx?source=AAFN&id=NOW.1468052&catg=4

Briefings | | |   Geo-Strategic Trend US-China Relations

China’s Renewable Energy “Hot Potato”: SOEs and Private Firms Offload Unprofitable Solar and Wind Projects

In recent months, multiple Chinese state-owned enterprises (SOEs) and private companies have transferred ownership of dozens of their new energy subsidiaries. From January 2024 to April 2025, over 100 new energy asset sales were listed on Chinese property rights exchange platforms, with SOEs accounting for more than 70 percent. Sellers include major firms such as State Power Investment Corporation (SPIC), State Grid, China General Nuclear, Three Gorges Group, and China National Nuclear Corporation.

Once seen as “cash cows,” the solar and wind projects are now considered financial burdens. Many projects fail to meet expected returns, with some even losing money due to falling electricity prices, including negative pricing in provincial spot markets. The phase-out of government subsidies and transition to market-based pricing has worsened their profitability. Intermittent generation and limited grid responsiveness make these projects uncompetitive, turning them into “hot potatoes” in the energy sector.

Source: Epoch Times, August 19, 2025
https://www.epochtimes.com/gb/25/8/18/n14576137.htm

Briefings | | |   Economy/Resources

Chinese Foreign Ministry: China-Latin America Cooperation Not Targeting Third Parties, U.S. Should Stop Interference

In response to recent U.S. claims that China is “penetrating and seizing resources” in the Western Hemisphere, Chinese Foreign Ministry spokesperson Guo Jiakun stated on August 25 that China-Latin America cooperation is not aimed at any third party and should not be interfered with by outside forces. Regional countries have the right to independently choose their development paths and partners.

“At the core, the U.S. statements are factually incorrect and repetitive, once again exposing the deeply entrenched Cold War mentality and confrontational mindset of some U.S. officials,” Guo said at a routine press briefing. He stated that the U.S. has long intervened in and sought to control Latin America and the Caribbean, with its hegemonic and bullying behavior laid bare.

“Latin America and the Caribbean are not anyone’s ‘backyard.’ China-Latin America cooperation is not directed at any third party and should not be interfered with. Regional countries have the right to independently choose their development paths and partners. The U.S. should stop sowing discord and stirring up trouble, and instead do something concrete to support the development of Latin American and Caribbean nations,” Guo said.

Source: People’s Daily, August 25, 2025
https://world.people.com.cn/n1/2025/0825/c1002-40549669.html

Briefings | | |   US-China Relations

Ecuador Secures $400M From Beijing Over Defective Dam

Ecuador’s Finance Minister Sariha Moya announced that Chinese state-owned PowerChina will pay the Ecuadorian government $400 million in compensation for serious defects and losses linked to the Coca Codo Sinclair hydroelectric project, built by Sinohydro. The $3 billion dam, launched in 2016 with Xi Jinping attending its inauguration, has been plagued by cracks, leaks, corruption scandals, and ecological damage, with experts warning its lifespan may be only 15 years instead of the promised 50.

Ecuador had originally sought $580 million in arbitration, while China countersued, but the settlement marks a partial resolution. The case highlights broader problems with China’s infrastructure projects abroad: opaque loans, poor construction, corruption, and political fallout.

Similar controversies have emerged elsewhere: Nepal’s Pokhara International Airport (built with Chinese loans) is deemed substandard; Serbia’s Novi Sad railway station collapse killed 16 and sparked mass protests; and other Chinese-financed projects across Latin America face scrutiny.

Commentators note that China’s BRI model – relying on money, corruption, and construction contracts to secure influence in targeted countries – is backfiring. Instead of winning allies, Beijing now faces reputational damage and a growing wave of compensation claims, with Ecuador setting a precedent that other countries may follow.

Source: Epoch Times, August 26, 2025
https://www.epochtimes.com/gb/25/8/26/n14581281.htm

Briefings | | |   @CS Economy/Resources Geo-Strategic Trend

CCP Infiltration in Virginia: Expert Warns of Growing National Security Risks

China expert He Bin recently warned at a Virginia community event that the Chinese Communist Party’s (CCP) infiltration of Virginia is a serious national security concern. Given Virginia’s proximity to Washington, D.C., its role as home to the Pentagon, the CIA, the world’s largest naval base (Norfolk), and the only U.S. shipyard that builds nuclear carriers and submarines, CCP influence poses unique risks.

He outlined multiple examples of CCP penetration in Virginia, including:

  1. Media Control: Beijing secretly funded pro-CCP broadcasts on WCRW/WTSD radio (2011–2023).
  2. Corporate Takeover: China’s WH Group’s $4.7B acquisition of Smithfield Foods, giving China control over 25 percent of U.S. pork production and farmland.
  3. Confucius Institutes: They operated at George Mason University, William & Mary, and Old Dominion University. They have been criticized for undermining academic freedom.
  4. Education Infiltration: Thomas Jefferson High School, one of the best high schools in the U.S., received $3.6M from CCP-linked sources, raising IP transfer concerns.
  5. Chinese Student & Scholar Associations (CSSA): They strengthened surveillance and ideological influence over Chinese students.
  6. Virginia Tech: The university collaborated with Xi’an Electronic Science and Technology University, linked to China’s military.
  7. IP Theft: A Chinese researcher at UVA was charged with stealing trade secrets (case later dropped).
  8. Telecom Threats: China Telecom’s U.S. subsidiary, based in Herndon, was shut down by FCC over national security risks.
  9. NGOs: The Nature Conservancy in Arlington ran CCP-linked projects funded partly by U.S. government grants and Chinese firms.
  10. Port Security: Over 30 Chinese-made cranes at Hampton Roads port raised Pentagon concerns about surveillance.
  11. Espionage Cases: Chinese nationals and local residents in Virginia were prosecuted for spying or leaking defense secrets, including at Newport News Shipyard, the State Department, and even the Federal Reserve.

Source: Epoch Times, August 29, 2025
https://www.epochtimes.com/gb/25/8/28/n14583195.htm

Briefings | | |   @CS US-China Relations

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

Texas Criminalizes Foreign Transnational Repression

On August 26, Texas Governor Greg Abbott signed several bills aimed at protecting Texans from threats posed by foreign adversaries. The legislation included: House Bill 128, which prohibits any Texas government entity from establishing “sister city” relationships with foreign adversaries while encouraging cooperation with U.S. allies; Senate Bill 17, which bans individuals, organizations, and entities from certain countries from purchasing real estate in Texas; and Senate Bill 1349, which criminalizes acts of transnational repression and requires the establishment of new training programs for law enforcement.

In fact, as early as last November, Abbott had signed an executive order directing the Texas Department of Public Safety to take measures against cross-border coercion by the Chinese Communist Party (CCP). At the time, he specifically cited the CCP’s “Fox Hunt” campaign of attempting to forcibly repatriate overseas dissidents back to China.

Analysts have noted that in recent years, China has increasingly engaged in “long-arm jurisdiction” against certain individuals abroad – using the People’s Liberation Army, public security officials, embassies, or agents – under the pretext of “safeguarding national interests,” thereby undermining other countries’ sovereignty.

Taiwanese media outlet Newtalk commented that by defining foreign “transnational repression” as a criminal offense, Texas has fired the first shot in American society against China. Sources:
1. NTDTV, August 28, 2025
https://www.ntdtv.com/gb/2025/08/28/a104015125.html
2. Newtalk, August 27, 2025
https://newtalk.tw/news/view/2025-08-27/990303

Briefings | | |   @CS US-China Relations