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CNA: China Rare Earth Group Faces Wave of Senior Executive Resignations

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, as Beijing engages in battles with Europe and the United States over China’s rare earth ban, the management of China Rare Earth Group has seen a wave of senior executive resignations since the beginning of this year. It is rumored that many people have been poached by foreign rare earth laboratories, and some have resigned collectively.

China Rare Earth Corporation has undergone significant changes in its management this year. The general manager, one deputy general manager, and three board directors of the company resigned in June. Among them, the former general manager still serves as the company’s Communist Party secretary; the three former directors no longer work for the company after resigning.

The former vice president of China Rare Earth, Dr. Liao Chunsheng, resigned in April, and the company’s CFO and chairman of the supervisory board resigned in January. Among them, the 60-year-old Liao Chunsheng, who was a student of the “Father of China’s Rare Earths” Xu Guangxian, has attracted much attention. There were rumors that Dr. Liao and other senior executives took their rare earth technology and went to Canada to work for the Canadian Rare Earth Laboratory. China Rare Earth Group just issued an emergency statement, claiming that the relevant job position adjustments were “normal personnel movements.”

The publicly traded China Rare Earth Group controls 60 percent of the world’s rare earth supply. Its business covers the entire industrial chain from mining to deep processing. Rare earths are one of the focal points of the recent US-China trade war. Earlier, China’s Ministry of Commerce reportedly required all Chinese domestic rare earth industry companies to submit a list of employees with key professional skills to the government, and some experts were required to hand in their passports.

Sources:
(1) CNA, June 30, 2025
https://www.cna.com.tw/news/acn/202506300199.aspx
(2) STCN, June 30, 2025
https://stcn.com/article/detail/2311877.html

Briefings | | |   Economy/Resources US-China Relations

RFI: Beijing Invites American Influencers on Free Trip to Paint Rosy Picture of China

China is inviting influential American social media influencers to join a ten-day, all-expenses-paid trip this July as part of the “China–Global Young Influencers Exchange Program.” The initiative targets young influencers with at least 300,000 followers to promote people-to-people exchanges and showcase the “real China” through collaborations with Chinese content creators.

The program follows Chinese leader Xi Jinping’s 2023 pledge to invite 50,000 American youths to China over five years, amid ongoing U.S.-China tensions. A College Daily post recruiting participants states that they should have an active social media presence on platforms like Instagram, YouTube, TikTok, and X, along with a love for Chinese culture and a “clean record.” Successful applicants will receive official invitations and special visa support.

The trip will cover Suzhou, Shanghai, Shenzhen, Handan, and Beijing, including visits to Chinese tech hubs, companies like Xiaohongshu and BYD, cultural activities like tai chi, and live-streamed tours of the Great Wall. Content created during the trip will be promoted by Chinese state media.

Source: Radio France International, June 10, 2025
https://www.rfi.fr/cn/中国/20250610-中国邀请美国网红7月十天免费来访-以展示-真实的中国

Briefings | | |   @CS Government/Politics US-China Relations

General Motors Ranked Most Exposed U.S. Company to China Market Risks

Nikkei News reported that strategic risk consultancy Strategy Risks released its latest risk index, showing that General Motors (GM) is the most exposed U.S. company to risks from the Chinese market, amid escalating U.S.-China trade tensions.

The New York-based firm assessed 250 publicly listed American companies to evaluate their China-related risks. GM ranked first with a risk score of 69.8 out of 100, primarily due to its extensive partnerships with Chinese state-owned enterprises. According to GM’s website, the company operates 10 joint ventures in China, including major collaborations with state-owned SAIC Motor. GM also faces significant financial exposure and is among the most reliant on the Chinese market.

Cummins, an engine equipment manufacturer, ranked second, followed by aerospace company Honeywell, with risk scores of 62.9 and 60.7, respectively. Cummins’ ranking rose after the company established a natural gas vehicle assembly line in Xinjiang, where China has been accused of human rights abuses against Uyghur Muslims.

Other companies highly vulnerable to U.S.-China tensions include Colgate-Palmolive, Philip Morris, and Tesla, due to their heavy reliance on Chinese exports of electric toothbrushes and lithium-ion batteries. Rounding out the top ten are retailer TJX Companies, Intel, FedEx, and Procter & Gamble.

Source: Epoch Times, June 24, 2025
https://www.epochtimes.com/gb/25/6/24/n14537834.htm

Briefings | | |   Economy/Resources US-China Relations

China’s Strategic Response to US Tariff Wars: Eight Years in the Making

China’s response to the US tariff war has been methodical and strategic, with preparations beginning eight years ago, according to Peng Sen, President of the China Society for Economic Reform. Speaking at the Summer Davos Forum, Peng emphasized that China’s countermeasures were not hasty reactions but part of a long-term strategy.

China has systematically reduced its reliance on single markets, with its foreign trade dependence on the US dropping from over 20 percent to approximately 12 percent. This diversification strategy has strengthened China’s economic resilience against external shocks.

China’s manufacturing sector has achieved remarkable scale, roughly twice the size of the US and four times that of Japan and Germany respectively. The quality and structure of Chinese manufacturing have also transformed significantly, moving beyond low-end products to high-value exports.

Notable achievements include 100 percent domestication of high-speed rail technology, over 50 percent global market share in both shipbuilding orders and industrial robot installations, and continuous improvement in semiconductor production capabilities.

Despite facing “chokepoint” challenges in high-end chip manufacturing, China views external restrictions as catalysts for industrial upgrading. Peng believes these limitations will accelerate China’s efforts to strengthen and complete its supply chains.

China’s manufacturing strategy focuses on three key areas: upgrading traditional industries, developing seven strategic emerging industries including next-generation information technology and new energy, and fostering future industries such as AI, quantum technology, and life sciences.

With its comprehensive manufacturing system, vast domestic market, and abundant labor resources, China demonstrates economic resilience and potential despite challenging external conditions.

Source: Central News Agency (Taiwan), June 30, 2025
https://www.cna.com.tw/news/acn/202506300090.aspx

Briefings | | |   US-China Relations

Beijing Responds to CIA’s Open Recruitment of Chinese Nationals for Espionage

On May 1, the U.S. Central Intelligence Agency (CIA) released Chinese-language videos on Youtube and other social media platforms, openly recruiting Chinese nationals to engage in espionage.

Beijing did not respond to the videos until June 25.

China’s Ministry of State Security said “the two meticulously produced ‘recruitment ads’ are filled with awkward rhetoric and slander,” claiming that they “fully exposed the CIA’s absurd logic in recruiting agents and its hysterical desperation.”

“In recent years, under the strong crackdown by China’s national security agencies and with the active cooperation of the public, the CIA’s intelligence network in China has suffered devastating blows. The Trump administration repeatedly planned to downsize federal agencies, and the CIA was not spared. Facing severe losses of intelligence personnel and a crippled organizational structure, the CIA’s public recruitment efforts are seen as both a desperate publicity stunt and a reckless gamble aimed at covering up its failures and avoiding being discarded in the next round of political reshuffling.”

The article said that the CIA is facing a shrinking budget and “has increasingly leaned on hyping the so-called ‘China threat’ as a lifeline to assert its relevance, vigorously deceiving the U.S. Congress and taxpayers in hopes of securing a larger share of budget allocations.”

The article also stated that “those who are recruited as ‘traitors’ or ‘insiders’ through such public recruitment campaigns will never escape the sharp eyes of China’s national security agencies or the justice of Chinese law. The CIA, likewise, will only sink deeper into its swamp of failure.”

Source: China Daily, June 25, 2025
https://china.chinadaily.com.cn/a/202506/25/WS685b6478a31009d21e5be6e1.html

Briefings | | |   US-China Relations

UDN: FedEx’s Worsened China-U.S. Air Routes Dragged Down Its Financial Outlook

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that FedEx just announced its last quarter’s performance. However, unusually, the quarterly report did not provide full-year financial forecasts. The predicted profits for this quarter are lower than market expectations, indicating that weak demand and uncertainty in global trade are unlikely to ease in the short term. After the financial report was released, FedEx’s stock price plummeted more than five percent.

The global logistics giant explained that the lack of forecast is due to “an uncertain global demand environment.” The company’s China-U.S. routes, which are its most profitable, had “deteriorated sharply” in May. Cargo volumes are expected to remain under pressure. President Trump’s trade policies continue to limit the ability of corporate executives to predict the business outlook. The lack of visibility is particularly challenging for FedEx, whose customers span a wide range of industries, from manufacturing to consumer products.

However, there are signs that the company’s long-running push to cut costs and consolidate its ground and air networks is paying off. FedEx cut $2.2 billion in costs in its most recent fiscal year and expects to save another $1 billion this year.

Source: UDN, June 25, 2025
https://money.udn.com/money/story/5599/8829262

Briefings | | |   US-China Relations

Chinese State Media’s Commentaries on NATO Summit

The NATO summit was held on June 24–25 in The Hague. Chinese Communist Party controlled state media Xinhua News Agency and Huanqiu Times published commentaries.

Xinhua: The New NATO Plan Is Hard for Europe to Digest

The summit appeared largely as a performance of unity designed to appease the U.S. A key outcome was the commitment by NATO members to raise defense spending to 5 percent of GDP by 2035. However, this superficial consensus masks deep internal divisions.

The U.S. aims to maximize its global dominance at minimal cost, while Europe prioritizes security and strategic autonomy. Trump’s double standard – refusing to meet the 5 percent target for the U.S. while demanding other countries do – has caused resentment among European countries, many of whom are hesitant to speak out.

Moreover, the sharp increase in defense spending is expected to primarily benefit the U.S. military-industrial complex. Analysts argue this is more a massive wealth transfer to the U.S. than genuine progress toward European defense independence.

Huanqiu Times: Asia-Pacific Countries Distance Themselves from NATO

Notably, South Korean President Lee Jae-myung, Japanese Prime Minister Shigeru Ishiba, and Australian Prime Minister Anthony Albanese all skipped the summit. NATO’s attempt to extend its influence by labeling China a “challenge” conflicts with its own treaty, which limits its scope to the North Atlantic region and forbids interference in Asia-Pacific affairs. China has repeatedly warned against NATO’s overreach, describing its Asia-Pacific ambitions as blatant geopolitical expansion.

The absence of these Asia-Pacific leaders sends a clear message: they refuse to become pawns in great-power rivalry or endorse an expanding NATO. This may also signal a growing political awakening in the region.

Sources:
1. Xinhua, June 26, 2025
http://www.news.cn/world/20250626/2ec6f042517740d38f80e1232b8259ca/c.html
2. Huanqiu Times, June 26, 2025
https://opinion.huanqiu.com/article/4NFxMsLy2sc

Briefings | | |   Defense/Military Economy/Resources US-China Relations

CNA: Huawei’s Latest Laptops Use Outdated Chip Technology

Taiwan’s primary news agency, Central News Agency (CNA), recently reported that Canadian research firm TechInsights revealed Huawei’s latest laptop, the MateBook Fold, uses legacy chip technology from China’s SMIC. This highlights how U.S. export controls continue to hinder China’s semiconductor industry.

Market expectations had been that Huawei would use SMIC’s latest 5-nanometer N+3 process for the MateBook Fold. However, the Kirin X90 chip inside the laptop still relies on the 7-nanometer N+2 process, first launched by SMIC in August 2023. This same chip, which appeared earlier in Huawei’s Mate 60 Pro smartphone, reportedly caught U.S. export control officials by surprise. Meanwhile, industry leader TSMC plans to begin mass production of 2nm chips later this year – three generations ahead of SMIC’s 7nm technology.

Huawei’s use of older chip technology suggests that SMIC has yet to achieve mass production at the 5nm node. Additionally, the MateBook Fold was launched with Huawei’s own operating system, as Microsoft’s Windows license for Huawei has expired.

Source: CNA, June 24, 2025
https://www.cna.com.tw/news/aopl/202506240126.aspx

Briefings | | |   Information/Technology US-China Relations