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US-China Relations - 18. page

Lianhe Zaobao: U.S. Government Investigating Nine Chinese Communications Companies

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that the U.S. Federal Communications Commission (FCC) has announced that it is investigating nine Chinese communications technology companies to determine whether they are trying to circumvent restrictions on operating in the United States.

The nine companies include Huawei, ZTE, Hikvision, China Mobile, China Telecom, Hytera Communications, Zhejiang Dahua Technology, Pacifica Networks and its subsidiary ComNet, as well as China Unicom (America). These Chinese companies are accused of threatening U.S. national security. Previously, the FCC had banned Chinese companies from providing telecommunications services in the United States on the grounds of national security. FCC Chairman Carr said the committee reasonably believes that some or all Chinese companies on the list try to circumvent FCC restrictions and continue to conduct business in the United States in a secret or unregulated manner.

The FCC’s investigation is designed to collect the business information of the above-mentioned companies in the States and to understand whether there are other companies that may assist them in their operations in the States. The FCC has sent enquiry letters and at least one subpoena to these companies.

Source: Lianhe Zaobao, March 22, 2025
https://www.zaobao.com.sg/news/china/story20250322-6055747

China’s Trade Data Reflects Trump’s Tariff Hikes

The Trump administration raised tariffs on Chinese goods by 20 percent in February. On March 10, Zhong Zhengsheng, chief economist at Ping An Securities, stated that the impact of these tariff hikes has started to show in Chinese trade data. In the first week of March, there was a decline in the year-on-year growth rate of operating capacity in sectors of the Chinese economy such as steel plates, textiles, and automobiles. The decline is linked overseas tariffs and general reduced demand for Chinese exports.

Zhong pointed out that freight indicators also reflect these effects. According to the Chinese Ministry of Transport, as of the week ending March 2, port container throughput (about 50 percent of which is foreign trade, typically involving exports of transporting machinery, textiles, home appliances, and light industrial products) increased by only 2.8 percent year-on-year, a 4.3 percentage-point drop from the previous figure year’s rate of change. International cargo flights (primarily used for high-value products like consumer electronics and cross-border e-commerce) saw a 25.8 percent year-on-year increase, a 1.2 percentage-point drop from the prior year’s figure. Port cargo throughput (about 30 percent of which is related to foreign trade) rose by 2.5 percent year-on-year, a 2.2 percentage-point drop from the previous figure.

Data recently released by China’s General Administration of Customs showed that, in dollar terms, China’s exports grew by 2.3 percent year-on-year in January and February, short of the expected 5 percent growth and was a significant slowdown from the 10.7 percent growth rate recorded in December.

Source: Epoch Times, March 13, 2025
https://www.epochtimes.com/gb/25/3/13/n14457529.htm

CCP Scolds Li Ka-shing for Selling Panama Port Operations to the US

On March 13, the Chinese Communist Party’s (CCP’s) Hong Kong and Macao Affairs Office of the State Council reposted a commentary from Ta Kung Pao titled “Don’t Be Naïve, Don’t Be Confused.” Ta Kung Pao is the CCP’s mouthpiece in Hong Kong.

The article’s key points are as follows:

“Currently, the world is undergoing accelerated changes unseen in a century, and the strategic rivalry between China and the United States is becoming increasingly intense. The situation is turbulent, with high winds and rough waves. The U.S. views China as its primary competitor and is making every effort to contain and suppress China’s development.

Recently, a particular development has sparked strong reactions from various parties: Hong Kong’s CK Hutchison Holdings Limited announced that it had reached a preliminary agreement with a consortium led by BlackRock to sell 80 percent of its assets in Hutchison Ports. This deal involves transferring ownership and operation of 43 ports and related logistics networks across 23 countries—including the Balboa and Cristóbal ports at both ends of the Panama Canal.

Netizens have widely criticized and condemned this transaction and CK Hutchison, viewing it as a spineless surrender driven solely by profit, disregarding national interests and betraying the Chinese people. Such public sentiment is entirely understandable.

Faced with a matter of such great importance and principle, the company in question must think carefully. It must seriously consider the nature and key implications of this issue and reflect on which stance it should take and whose side it should stand on.”

Source: Sina, March 16, 2025
https://finance.sina.com.cn/roll/2025-03-16/doc-inepuytu1080379.shtml

American Students Share Experiences Regarding CCP-Organized Exchange Program

During his visit to the U.S. in November 2023, Chinese Communist Party (CCP) leader Xi Jinping announced in San Francisco that China would invite 50,000 American youths to visit China for “exchange and study.”

Two students from Duke University shared their experiences after participating in a CCP-organized exchange camp last summer. Kyle Abrahm said, “Every city we visited had some kind of innovation museum. When you walked into these museums, they were spotless, and besides the tour guides, we were the only people there. That’s when I started to feel that everything was artificially staged and controlled because we didn’t actually experience any real cultural exchange. What we got was exactly what the regime wants to show us.” He added, “The guides always talked about China’s strengths, China’s resilience, and China’s innovation: ‘Look at what we are doing,’ and they constantly compared their data to the U.S. It all felt like they were trying to say, ‘This is how we are beating the U.S.’”

Matthew Rodriguez recounted an incident during a discussion at the Kunshan Chinese Opera Museum. An American student raised a question about Shen Yun Performing Arts, a group whose performers are mainly practitioners of Falun Gong that showcases traditional Chinese culture predating the CCP’s rule. (Editor’s Note: the CCP has been persecuting Falun Gong for 26 years since 1999.) The Chinese hosts quickly avoided the sensitive topic, which then led to an argument at the event.

Source: Epoch Times, March 10, 2025
https://www.epochtimes.com/gb/25/3/10/n14454651.htm

STCN: IBM Chinese R&D Branch Closed

China Security Times (STCN) recently reported on an IBM internal decision stating that IBM China Investment Company (IBMV) and its branches will cease business activities starting March 1, 2025. Related office spaces will also be suspended.

IBM announced last August that it will withdraw all research and development work from China. The China System Laboratory work has been transferred to other IBM infrastructure bases overseas. The move this time only involves IBMV, which is mainly responsible for R&D and testing. The employees are located in many cities across the country, including Beijing, Shanghai, Dalian, etc., involving more than 1,800 people.

According to the financial report, IBM’s 2023 revenue in the Chinese market fell by 19.6 percent, becoming one of the main reasons for dragging down revenue growth in the Asia-Pacific region. In the first half of 2024, IBM’s sales in China fell again, down 5 percent year-over-year. In addition to R&D, IBM’s current business in China also includes consulting business (IBMC). According to information released by IBM last year, the number of IBMC Chinese customers has dropped by 45 percent in the past two years. Some IBM employees revealed that IBMC will also lay off employees this year.

Source: STCN, February 28, 2025
https://www.stcn.com/article/detail/1553350.html

Many Foreign Accounts on Rednote Are Fake

Due to the U.S. ban on TikTok, a surge of foreign users has recently appeared on Rednote, another Chinese social media platform. Media reports suggest that e-commerce Multi-Channel Network (MCN) companies are mass-producing “fake foreigners,” creating fraudulent accounts en masse.

These companies’ core strategy involves closely monitoring trending posts on the platform, extracting keywords and content structures, and then mass-producing similar content. Each of their employees manages multiple accounts, generating over a dozen posts per day, handling everything from image editing to content rewriting and posting.

On Rednote, “foreigners” can easily gain thousands or even tens of thousands of followers with just a single post. Thus, many domestic Chinese MCN companies have started mass-registering “fake foreigner” accounts with Western names and profile pictures featuring Westerners’ faces. These accounts often post content stolen from real overseas users.

Users have noticed that some so-called “foreign bloggers” post English content with grammatical errors, yet their Chinese is as fluent as that of a native speaker. Some of their profile pictures also appear unnatural, with mismatched skin tones. Others blatantly repost content from foreign influencers without even removing the original watermark. Some investigations on Rednote have found that many posts – from accounts with different usernames and featuring different individuals – use identical caption templates, sometimes even failing to change the names in their self-introductions.

Source: Epoch Times, January 26, 2025
https://www.epochtimes.com/gb/25/1/26/n14422251.htm

UDN: Foxconn Stops Sending Chinese Workers to India

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that major Apple supplier Foxconn has stopped sending Chinese workers to its factories in India and has reassigned Taiwanese personnel. Chinese workers already in India have been asked to return to China. Foxconn has also paused the deliveries to India of key manufacturing equipment, and India does not possess the ability to produce such manufacturing equipment on its own. These changes may impact Apple’s production strategy.

The disruption to Apple’s production has further heightened geopolitical tensions between China and India, which have long had border disputes and economic confrontations. Some sources alleged that the Chinese government was behind the suspension of sending workers and equipment to India. Meanwhile, Foxconn is ramping up production at its Chinese factories.

Apple began shifting production of its high-end iPhone models from China to India in 2019. One factor driving Apple’s shift in recent years was China’s “Zero COVID” policy, which made manufacturing in China more difficult. India plays an increasingly important role in Apple’s supply chain.


Source: UDN, January 12, 2025
https://udn.com/news/story/6811/8484985

CCP Designates December 24th as Day of Commemoration for Battle of Chosin Reservoir, Replacing Christmas Eve

In December 2024, Chinese media, including the Chinese Communist Party’s (CCP) mouthpiece Xinhua News Agency, has asserted that December 24th should not be celebrated as Christmas Eve, but rather as the victory day of the Battle of Chosin Reservoir (长津湖战役). This battle marked the first major military confrontation between the Chinese army and U.S. and U.N. forces during the Korean War.

Netizens discovered that, following 2019, platforms including Baidu and other Chinese internet sites made alterations to the timeline of the battle, changing its end date from December 13, 1950, to December 24th. This revision provided Chinese media with a basis on which to “reclaim” Christmas Eve as a day for promotion of the CCP’s anti-U.S. narrative.

Sources:
1. Radio Free Asia, December 25, 2024
https://www.rfa.org/cantonese/news/china-christmas-eve-battle-of-lake-changjin-nationalism-12252024112521.html
2.  Aboluo, December 29, 2024
https://www.aboluowang.com/2024/1229/2152143.html