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Dutch Chipmaker Nexperia Urges China Unit to Resume Operations Amid Disruptions

In a public letter issued on November 28, 2025, Dutch chipmaker Nexperia called on its Chinese subsidiary — controlled by Wingtech Technology — to restore normal supply-chain operations. The company warned that clients across multiple industries have reported that their production is “on the verge of shutdown,” highlighting the urgent need to stabilize chip deliveries.

Wingtech immediately pushed back, describing Nexperia’s allegations as “grossly misleading and false.” The Chinese parent company claims the disruption stems from what it calls an unlawful effort by Nexperia’s Dutch management to strip Wingtech of corporate control and shareholder rights. According to Wingtech, these moves — launched after the Dutch government intervened to seize supervisory control of Nexperia in September 2025 — triggered the breakdown in internal cooperation and subsequent supply-chain paralysis.

The dispute now extends far beyond corporate governance. Supplies for global automotive and electronics manufacturers have already been disrupted, as Nexperia primarily packages and tests its chips in China — especially at its major facility in Dongguan, Guangdong Province — before exporting them worldwide. Current inventory buffers may last only a few months, raising industrywide concerns over potential semiconductor shortages should the stalemate continue.

Background:
Nexperia, formerly a division of Philips, was acquired in 2018 by Chinese electronics group Wingtech. Over the following years, the parent Chinese company shifted a significant share of the company’s semiconductor output to China, with assembly and testing centered in Dongguan while wafer fabrication remained in Europe. In September 2025, the Dutch Ministry of Economic Affairs invoked the wartime-era Goods Availability Act to take supervisory control of Nexperia, citing fears that core technology and intellectual property could be transferred to China. Beijing responded by halting exports of Nexperia-produced chips from China — disrupting the supply of key components for automakers and other global manufacturers and setting the stage for the current standoff.

Source: Epoch Times, November 28, 2025
https://www.epochtimes.com/gb/25/11/28/n14645200.htm

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

China’s Banking Sector Sees Rapid Growth in Distressed-Asset Sales

By the end of the third quarter of 2025, Chinese commercial banks reported a total of 3.5 trillion yuan (US$490 billion) in non-performing loans (NPLs), an increase of 88.3 billion yuan from the previous quarter. The NPL ratio rose to 1.52 percent, up 0.03 percentage points. Profitability has also continued to weaken: in the first three quarters, the sector’s average return on equity fell to 8.18 percent from 8.77 percent in 2024, while return on assets declined from 0.68 percent to 0.63 percent.

Distressed-loan transfer announcements—banks selling off bad-loan portfolios—have surged to 1,166 so far this year, far exceeding the four-year annual average of about 680. On November 14 alone, eight banks disclosed transfers totaling more than 8.5 billion yuan, mostly involving long-overdue loans, many delinquent for over five years. Some asset packages are extremely large, reaching into the tens or even hundreds of billions. In one case, a bank transferred a portfolio with a principal balance of about 500 billion yuan, which ballooned to nearly 700 billion yuan after including interest and penalties.

The liquidation wave now extends beyond loan portfolios. Banks across China—including major state-owned lenders—are directly selling foreclosed real estate, alcohol inventories, and even small tradable goods, rather than relying on court-organized auctions. Many of these assets are being listed at steep discounts, in some cases just 25–30 percent of market value. For example, a property in Guangzhou that previously sold for over 2.2 million yuan was recently listed for under 800,000 yuan. Yet even with heavy markdowns, many properties still struggle to attract buyers, underscoring the depth of the current demand slump.

Source: Epoch Times, November 15, 2025
https://www.epochtimes.com/b5/25/11/14/n14636104.htm

Briefings | | |   @CS Economy/Resources

Analysis: Chinese Migrant Workers May Revolt if They Experience Poverty En Masse

The Epoch Times reports that China is experiencing an unusually early wave of migrant workers returning to their hometowns – months before the Lunar New Year – reflecting widespread job losses and a deepening economic downturn. In response, the Ministry of Agriculture and Rural Affairs has urgently instructed local governments to prevent a “large-scale return to poverty” and to ensure that those previously lifted out of poverty do not become stranded in rural areas without income. Analysts say this early mobilization underscores the authorities’ awareness of the severity of the unemployment crisis facing China’s nearly 300 million migrant workers.

Experts argue that the problem is rooted in long-standing structural issues: migrant workers were never granted full urban residency rights or social benefits, while rural economies remain chronically depleted. With limited job opportunities in both cities and the countryside, official initiatives are widely viewed as superficial and incapable of addressing the underlying causes.

Some analysts warn that a mass return to poverty among migrant workers could pose a significant political risk. Today’s migrant laborers are more skilled, more informed, and more conscious of systemic injustice; in moments of extreme desperation, they may organize resistance—potentially threatening the stability of the communist regime.

Source: Epoch Times, November 20, 2025
https://www.epochtimes.com/gb/25/11/18/n14638607.htm

Briefings | | |   @CS Economy/Resources Social Stability

Study: China’s Cross-Border Lending Is Shifting Toward Developed Countries – the U.S. Is Borrowing the Most

A new study by AidData, the research lab at the College of William & Mary, finds that China is undergoing a major strategic shift in its overseas lending. Over the past two decades, China’s outbound credit has moved away from low-income and developing countries and toward middle- and high-income economies. The share of Chinese cross-border lending going to low-income countries fell from 88 percent in 2000 to just 12 percent in 2023, while lending to wealthier countries surged to about 76 percent.

Strikingly, the United States is now the largest recipient of Chinese credit, receiving more than $200 billion across over 2,500 projects spread throughout all U.S. states.

The study notes that many of these loans are tied to strategic, not purely commercial, objectives – particularly in high-tech industries, critical minerals, and infrastructure. China’s state-backed financial institutions frequently fund overseas acquisitions by Chinese companies in sectors such as semiconductors, robotics, and biotechnology. This marks a shift from traditional development finance toward lending that directly supports China’s industrial and strategic ambitions.

Analysts say the report raises broader questions about the nature of China’s cross-border financing and its implications for global competition, technology governance, and national-security risk. They caution that China’s “credit pivot” toward richer countries may reshape the landscape of international development finance and heighten concerns among borrowing states.

Source: Deutsche Welle, November 19, 2025
https://www.dw.com/zh/研究中国跨境信贷转向发达国家-美国借的最多/a-74793625

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

Epoch Times Exclusive: CCP Ministry of State Security’s 10th Bureau and Its Global Operations

The Epoch Times published an exclusive report, based on research by intelligence expert Feng Zheng, on the Chinese Ministry of State Security’s (MSS’s) 10th Bureau, which is responsible for overseas counterintelligence and suppression. The bureau primarily monitors Chinese communities abroad, exiled dissidents, and other perceived foreign threats. In recent years, multiple countries have uncovered large-scale CCP operations targeting overseas Chinese, including surveillance, transnational pressure campaigns, and attempts to influence elections – all linked to this bureau.

The 10th Bureau is part of China’s broader overseas intelligence network, estimated to include around 40,000 operatives embedded in global Chinese communities. Its duties encompass counterespionage, political security, and intelligence collection. Operatives often operate under official covers (diplomats, journalists, academics) or non-official covers (businesspeople, travelers), and leverage resources from other MSS bureaus to carry out surveillance and covert operations. While not primarily focused on economic or technological espionage, the bureau may still collect such intelligence through overseas Chinese channels.

The bureau operates alongside the CCP United Front Work Department, which applies soft influence strategies, such as cultural programs and community networks. By contrast, the 10th Bureau conducts covert monitoring, harassment, and, when necessary, direct suppression of overseas critics. It has been linked to high-profile incidents, including the Wang Shujun case in New York, attempts to disrupt dissident campaigns, and the theft of sensitive technology.

Feng emphasizes that the bureau’s reach extends to extreme actions, including cross-border kidnappings, pressuring dissidents’ relatives in China, and cyberattacks on protest organizers abroad. Intelligence gathered by the 10th Bureau can even shape China’s foreign policy: reports on dissident activity may lead Beijing to apply diplomatic pressure or offer economic incentives to host countries to curb dissent, illustrating the bureau’s central role in both intelligence operations and strategic decision-making.

Sources:
1. Epoch Times, November 14, 2025
https://www.epochtimes.com/gb/25/11/13/n14635481.htm
2. Epoch Times, November 19, 2025
https://www.epochtimes.com/gb/25/11/18/n14638233.htm

Briefings | | |   @CS Geo-Strategic Trend Government/Politics

Additional Chinese Actions Following Japanese Prime Minister Sanae Takaichi’s Remarks on Taiwan

China continues to take a series of actions in response to Japanese Prime Minister Sanae Takaichi’s remarks, in which she stated that a military conflict or the use of force in a Taiwan emergency could constitute a “survival-threatening situation” for Japan – implying that Japan might need to consider military action.

November 14, 17, and 19:
People’s Daily published three editorials under the pen name “Zhong Sheng” (a homophone for “China’s Voice”):

  • “China Will Never Tolerate Sanae Takaichi’s Provocative Crossings of the Red Line on the Taiwan Question” {1}
  • “Beware the Dangerous Shift in Japan’s Strategic Direction” {2}
  • “Poisoning China–Japan Relations Will Ultimately Backfire” {3}

November 16:
A China Coast Guard formation led by vessel 1307 patrolled within the territorial waters of the Diaoyu Islands, which are claimed by both China and Japan. Japan’s TBS reported that four China Coast Guard ships entered the waters. {4} {5}

November 17–19:
China announced live-fire drills in sections of the central Yellow Sea, from 00:00 to 24:00 each day, with navigation prohibited.

November 18–25:
China announced additional live-fire exercises in parts of the southern Yellow Sea from 8:00 a.m. to 6:00 p.m. daily, also with navigation prohibited. {6}

November 18:
At the 80th UN General Assembly plenary session on Security Council reform, China’s Permanent Representative to the UN Fu Cong condemned Prime Minister Takaichi’s recent remarks on Taiwan as “extremely wrong, extremely dangerous, and a crude interference in China’s internal affairs.” He added that “a country like this is fundamentally unqualified to seek a permanent seat on the UN Security Council.” {7}

November 20:
The planned China–Japan–South Korea Culture Ministers’ Meeting for this month was postponed. Foreign Ministry spokesperson Mao Ning stated that “Japan’s leader openly made extremely wrong remarks on Taiwan, which means the conditions for holding the trilateral meeting no longer exist.” {8}

Additionally, China’s Ministry of Foreign Affairs issued a travel advisory urging Chinese citizens to temporarily avoid traveling to Japan. According to a November 17 South China Morning Post report, more than 491,000 Japan-bound airline tickets were canceled within three days – over 30 percent of all bookings. However, some observers noted that the cancellations did not appear voluntary, and Chinese netizens posted that their Japan-bound flights had been forcibly canceled. {9}

Airline industry professionals said the impact on actual Japan-bound travel remains limited. They noted that demand for Japan routes has long been stable, with bookings typically exceeding actual passenger numbers. Flights continue to operate nearly full; although some tickets were canceled, vacated seats were quickly retaken. {10}

Sources:
1. People’s Daily, November 14, 2025
https://world.people.com.cn/n1/2025/1114/c1002-40603281.html
2. People’s Daily, November 17, 2025
https://world.people.com.cn/n1/2025/1117/c1002-40604816.html
3. People’s Daily, November 19, 2025
https://world.people.com.cn/n1/2025/1119/c1002-40606647.html
4. CCTV, November 16, 2025
https://news.cctv.com/2025/11/16/ARTIsmBlaEtjpVHxkQty08Gb251116.shtml
5. Sina, November 18, 2025
https://cj.sina.com.cn/articles/view/1887344341/m707e96d503301owqi
6. Central News Agency (Taiwan), November 18, 2025
https://www.cna.com.tw/news/acn/202511180033.aspx
7. Xinhua, November 19, 2025
http://www.news.cn/20251119/c7f5d1c0fb1a43328dfff9fbe28737cf/c.html
8. People’s Daily, November 21, 2025
https://world.people.com.cn/n1/2025/1121/c1002-40608387.html
9. Yahoo (Taiwan), November 19, 2025
https://tw.news.yahoo.com/退50萬張赴日機票-中國人驚曝內幕-被強制取消-網-不是自願的-024800232.html
10. Epoch Times, November 19, 2025
https://www.epochtimes.com/gb/25/11/19/n14638760.htm

Briefings | | |   @CS Geo-Strategic Trend

Major Leak Exposes Chinese Cyber Contractor’s Global Hacking Operations

A massive data breach at Chinese cybersecurity firm Knownsec (知道创宇) has exposed its extensive global hacking and surveillance activities. More than 12,000 confidential files – including hacker tool specifications, cross-platform remote-access trojans, surveillance target lists, and large-scale data-theft records – briefly appeared on GitHub before being removed.

Founded in 2007 and headquartered in Beijing, Knownsec runs the hacker team “404 Lab” and is regarded as a major contractor for China’s military and intelligence agencies. The company serves financial institutions, government bodies, and major internet firms, received significant investment from Tencent, and employs over 900 staff. The U.S. placed Knownsec on its entity sanctions list in 2022.

The leaked documents show that Knownsec built remote-access trojans for Linux, Windows, macOS, iOS, and Android, enabling persistent access across a wide range of systems. Its Android tools could extract message histories from Chinese chat apps and Telegram for targeted surveillance. The leak also detailed hardware-based attack tools, including a malicious power bank capable of secretly exfiltrating data – demonstrating supply-chain attack methods that bypass traditional software defenses.

According to Cyber Press, spreadsheets in the leaked materials document intrusions into more than 80 foreign organizations, involving massive data theft. Examples include:

  • 95GB of Indian immigration records
  • 3TB of call logs from South Korea’s LG UPlus
  • 459GB of Taiwanese road-planning data
  • Password data from Taiwan Yahoo and Brazil LinkedIn accounts

The targets span over 20 countries and regions, including Japan, Taiwan, Vietnam, India, Indonesia, Nigeria, and the United Kingdom – indicating a broad, systematic intelligence-gathering campaign.

Security firm StealthMole further reported that Knownsec conducted internet-infrastructure mapping in 28 countries, covering the Asia-Pacific, Southeast Asia, Africa, and Europe.

Source: Epoch Times, November 14, 2025
https://www.epochtimes.com/gb/25/11/13/n14635466.htm

Briefings | | |   @CS Defense/Military Information/Technology

PLA Conducts South China Sea Bomber Patrol after Philippine, U.S., and Japan Joint Exercise

Huanqiu Times reported that from November 14 to 15, the Philippine military, together with the U.S. Indo-Pacific Command and Japan’s Maritime Self-Defense Force, carried out another Multilateral Maritime Cooperation Activity (MMCA) in the West Philippine Sea. This was the eighth MMCA exercise held this year and the thirteenth since the program began.

In response, on November 14, the People’s Liberation Army (PLA) Southern Theater Command dispatched a formation of bombers for a routine patrol over the South China Sea – marking the first publicly disclosed deployment of this kind.

Experts interviewed by Global Times said the move underscores China’s strong resolve and capability to safeguard its territorial sovereignty. Bombers, compared with fighter jets, possess more powerful strike capabilities, including saturation attacks that even large surface vessels would struggle to evade.

Analysts believe the formation likely included variants of the H-6 bomber. These aircraft may have flown tactical routes to warn foreign vessels and reinforce China’s red lines, potentially with fighter escorts. The mission aligns with China’s broader strategy of diversifying its strike options and integrating bomber units with aircraft carrier groups to enhance long-range strike capability and increase the flexibility of China’s power projection.

Source: Huanqiu Times, November 16, 2025
https://mil.huanqiu.com/article/4PAF86Mj7GF

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