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CNA: Beijing Assessing Cybersecurity Risks of Using Nvidia H20 Chips

Primary Taiwanese news agency Central News Agency (CNA) recently reported that the Chinese authorities questioned Nvidia regarding potential security breaches affecting its H20 chips. Nvidia said its H20 products do not contain backdoors that could allow for remote access or control.

China’s Cyberspace Administration (CAC), the cybersecurity regulator, has expressed concern about a U.S. proposal requiring advanced chips exported overseas to have tracking and location capabilities. While the U.S. had just allowed Nvidia to resume exports of its H20 chips to China, the CAC summoned Nvidia to clarify the risks, casting uncertainty over Nvidia’s continued shipments to China. The CAC asked Nvidia to explain whether the H20 chip poses any backdoor security risks, citing concerns about the data and privacy of users in China.

A spokesperson for Nvidia said in a statement: “Cybersecurity is of paramount importance to us. Nvidia chips do not contain any backdoors that could allow anyone to remotely access or control them.”

The U.S. banned Nvidia from selling its H20 chips to China in April, only to allow them to be sold in July. Nvidia developed the H20 chip earlier specifically for the Chinese market.

Source: CNA, August 1, 2025
https://www.cna.com.tw/news/aopl/202508010006.aspx

Briefings | | |   Information/Technology US-China Relations

Lianhe Zaobao: China to Push Large-Scale Commercial Application of AI

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that the State Council of China just emphasized at its latest executive meeting the need to promote the large-scale commercial application of AI to accelerate the popularization and deep integration of AI across the fields of economic and social development.

The State Council meeting reviewed and approved the “Action Plan for Deepening the Implementation of AI+.” The meeting called for “vigorously promoting” the large-scale commercial application of AI, taking full advantage of China’s complete industrial system, large market scale, and rich application scenarios. It also aims to achieve deep integration of AI in all areas of economic and social development. The meeting proposed that efforts should be made to optimize the AI innovation ecosystem, increase government policy support, strengthen talent pool building, and build an open ecosystem to provide strong support for the development and growth of the industry.

On July 23, the U.S. President announced an AI Action Plan aimed at strengthening U.S. dominance in AI. Three days later, the Chinese government released the Action Plan for Global AI Governance at the World AI Conference in Shanghai. At the conference, Chinese Premier Li Qiang also proposed the establishment of a World AI Cooperation Organization. China hopes the organization can promote practical cooperation in the field of AI and is considering setting up its headquarters in Shanghai.

Source: Lianhe Zaobao, August 1, 2025
https://www.zaobao.com.sg/realtime/china/story20250801-7257930

Briefings | | |   Information/Technology

Lianhe Zaobao: Amazon Closes Its Shanghai AI Research Institute

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that U.S. e-commerce giant Amazon has closed its artificial intelligence (AI) research institute in Shanghai, becoming the latest in a wave of U.S. companies to lay off employees in China.

An Amazon spokesperson said that after an in-depth assessment of the company’s organization, development priorities and future strategic direction, Amazon decided to streamline some teams at Amazon Cloud Technology. He did not confirm the reports that the Shanghai AI Research Institute has been disbanded. However, scientists at the Amazon Web Services (AWS) Shanghai AI Research Institute posted on WeChat that they received the notice of the close-down of the institute due to the “strategic adjustment between China and the United States.”

Amazon Web Services (AWS) established the Shanghai AI Research Institute in September 2018. At its peak, it had more than 1,000 Chinese employees. As US-China relations continue to be tense, many U.S. companies have reduced their R&D teams in China in recent years. In August last year, IBM completely closed its R&D department in China, and thousands of employees were laid off. In June this year, Citigroup announced the streamlining of its global technology solution centers in Shanghai and Dalian (Liaoning Province), laying off about 3,500 technical personnel.

Source: Lianhe Zaobao, July 23, 2025
https://www.zaobao.com.sg/news/china/story20250723-7201947

Briefings | | |   Information/Technology US-China Relations

After Trillion-Yuan Investment in 5G, Beijing Considering Shift to Satellite Internet

On June 6, 2019, China officially issued commercial 5G licenses, marking the country’s entry into the so-called 5G era. As of the end of April 2025, China had a total of 4.4 million 5G base stations – more than three times the number in the United States – accounting for over 60 percent of the global total. Even in rural areas, the 5G coverage rate is expected to reach 95 percent by the end of the year. This has come at a considerable cost to the Chinese government. China’s three major telecom operators (all state owned) have collectively invested over 1.8 trillion yuan (US$ 250 billion), creating the world’s largest standalone 5G (SA) network.

However, China started taking a notable turn in 2025. On April 1, the Jiuquan Satellite Launch Center launched four next-generation experimental satellites for satellite internet. This sparked questions over whether the trillion-yuan investment in 5G had been in vain.

Yuan Jungang, the chief designer of China’s satellite internet project, explained the rationale for this shift in a June 6 lecture. He noted that the move toward satellite internet stems from the “many shortcomings of the current terrestrial internet.”

  • “Limited coverage” – Building base stations is costly and constrained by geography.
  • “High energy consumption” – It’s estimated that China’s 5G base stations consume about 100 million yuan (US$ 13 million) in electricity per day.
  • “Inadequate support for the low-altitude economy” – Current 5G antennas mainly face downward for ground coverage, providing insufficient connectivity for aircraft, drones, and other low-altitude flying devices. While the new 5GA (an enhanced version of 5G, also known as 5.5G) aims to address this need, upgrading from 5G to 5GA is extremely costly, and 5GA still has coverage limitations.

Whether China pursues 5G or Starlink-like satellite internet, both strategies are hindered by semiconductor restrictions. For example, Huawei, a key 5G equipment supplier and one of the largest holders of 5G patents, was forced by U.S. chip sanctions to release only 4G phones in 2023 despite China being deep into the 5G era.

Source: Epoch Times, July 13, 2025
https://www.epochtimes.com/b5/25/7/11/n14549799.htm

Briefings | | |   Information/Technology

Nikkei Asia Review: Can China Built Its Own ASML?

Huanqiu Times reported that Nikkei Asia Review published an article “Can China Build Its Own ASML?” ASML is the Dutch maker of advanced lithography machines critical for chip production. The U.S. has imposed strict export controls on China, restricting exports of advanced semiconductor chips as well as design software and manufacturing equipment.

The U.S. export controls have inadvertently fostered a “golden age” for Chinese chip equipment makers to develop their own alternatives. While Chinese firms like SMIC and others have made progress replacing foreign tools in several chipmaking processes, lithography remains a major challenge due to its complexity and high cost. Only ASML, Canon, and Nikon have historically produced such machines.

However, with strong government support, there are Chinese companies working on that front. Companies like Shanghai Micro Electronics Equipment (SMEE) have created machines to make 90nm chips, while Huawei supports local R&D and talent recruitment. Smaller firms like Shanghai Yuliangsheng, backed by top research institutes, also aim to develop China’s own EUV lithography machines and build an independent ecosystem free from U.S. restrictions.

A U.S. semiconductor expert warned that Chinese toolmakers could someday become competitive both domestically and globally, and once that happens, they will be hard to stop.

Source: Huanqiu Times, July 16, 2025
https://oversea.huanqiu.com/article/4NWVNXq6viC

Briefings | | |   Economy/Resources Information/Technology US-China Relations

Lianhe Zaobao: U.S. Investigating Drones, Polysilicon and Graphite Trade with China

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that the U.S. Commerce Department launched the investigation into the import of drones, drone parts and polysilicon, a key solar material, under Section 232 of the Trade Expansion Act. It is the latest move by the Trump administration to review and potentially impose tariffs on industries deemed critical to national security.

The U.S. Commerce Secretary is due to submit his findings within 270 days. If the investigation determines that the drones, drone parts and polysilicon imports under review pose a threat to national security, the U.S. government may impose tariffs on those imports.

The U.S. Department of Commerce issued another statement on July 17, announcing a preliminary finding that China’s graphite exports had been unfairly subsidized by the Chinese government, and therefore that all Chinese graphite producers exporting to the United States would be subject to a uniform 93.5 percent anti-dumping tax. The final ruling is expected on December 5.

Source:
1. Lianhe Zaobao, July 15, 2025
https://www.zaobao.com.sg/realtime/world/story20250715-7144110
2. Lianhe Zaobao, July 18, 2025
https://www.zaobao.com.sg/news/world/story20250718-7167288

Briefings | | |   Information/Technology US-China Relations

CNA: FCC Planning New Rules to Ban Chinese Technology in Submarine Cables

Primary Taiwanese news agency Central News Agency (CNA) recently reported that the U.S. Federal Communications Commission (FCC) said it is planning to develop a set of regulations to prohibit companies from connecting undersea communications cables containing Chinese technology or equipment to the United States.

“In recent years, we have seen threats to our undersea cable infrastructure from foreign adversaries such as China,” FCC Chairman Brendan Carr said in a statement. “As a result, we are taking action here to protect our undersea cables from sabotage and intrusion by foreign adversaries, as well as from cyber and physical threats.” The United States has widespread data security concerns about more than 400 undersea telecommunication cables that handle 99 percent of the international internet traffic.

Two undersea fiber-optic telecommunications cables were previously cut in the Baltic Sea, prompting authorities to investigate possible sabotage. Also not long ago, Taiwan accused two Chinese ships of cutting multiple submarine internet cables.

Source: CNA, July 17, 2025
https://www.cna.com.tw/news/aopl/202507170006.aspx

Briefings | | |   Information/Technology US-China Relations

China’s Anti-U.S. Propaganda Results in Chinese Discrimination Against Those Who Return from Living Abroad

Yitang Zhang, a Chinese-American mathematician and professor at University of California, Santa Barbara since 2015, has decided to return to the Sun Yat-sen University in Guangzhou, Guangdong Province as a full-time professor in 2025. His return to China has sparked wide discussion on the Internet, due to China’s long-term anti-U.S. propaganda that has fostered discrimination against overseas returnees.

People’s Daily summarized four common prejudices:

  1. “Picking the Fruit” Theory: Some believe returnees abandoned China during difficult times and are now coming back to enjoy the benefits, possibly past their prime.
  2. “Second-Tier Talent” Theory: Some see returnees as those who failed abroad and are now overvalued at home.
  3. “Studying Abroad is a Betrayal” Theory: Some view studying abroad as unpatriotic, regardless of whether one returns.
  4. “Local vs. Returnee” Theory: Some believe favoring returnees is unfair to domestic talents who have stayed in China and put in the hard work for so many years.

The article calls for more overseas talents to return and to contribute to China’s development.

Source: Beijing Daily, July 4, 2025
https://news.bjd.com.cn/2025/07/04/11221886.shtml

Briefings | | |   Government/Politics Information/Technology