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China Claims U.S. NSA Conducted Cyberattacks Through Regional Allies

China’s Ministry of State Security (MSS) has announced the uncovering of what it described as a major cyberattack, alleging that the U.S. National Security Agency (NSA) infiltrated the National Time Service Center in Xi’an, Shaanxi Province. The center, which operates China’s official timekeeping system, is responsible for maintaining critical infrastructure. According to the MSS, a successful breach could trigger widespread disruption—including network failures, financial system instability, power outages, transportation paralysis, and even space launch failures—potentially undermining global time synchronization.

The ministry claimed that its investigation uncovered a systematic and escalating pattern of NSA cyber operations beginning in March 2022. Initially, the agency allegedly exploited vulnerabilities in a foreign smartphone brand’s messaging service to compromise the mobile devices of multiple employees at the center and extract sensitive data. By April 2023, the NSA purportedly used stolen login credentials to infiltrate the center’s computer systems and gather intelligence on its network infrastructure. In August 2023, the MSS alleged, the NSA deployed a new cyber warfare platform equipped with 42 specialized attack tools to launch intensive strikes against the center’s internal systems.

The MSS further asserted that the U.S. has used technical outposts in the Philippines, Japan, and Taiwan as cover to disguise its cyber operations, deflect responsibility, and frame other actors. Chinese officials labeled the United States the world’s leading “hacker empire” and “the greatest source of instability in cyberspace.”

According to the statement, Chinese security agencies have thwarted the alleged cyberattacks and implemented comprehensive countermeasures to safeguard Beijing Time’s integrity. The MSS added that it is providing counterintelligence guidance and conducting security inspections across government departments, public institutions, and key enterprises to strengthen cyber defense nationwide.

Source: Central News Agency (Taiwan), October 19, 2025
https://www.cna.com.tw/news/acn/202510190099.aspx

Briefings | | |   US-China Relations

China Denies Its New Rare Earth Export Controls Target Pakistan

China announced new rare earth export restrictions on October 9, requiring foreign manufacturers to obtain Chinese export licenses if their products contain or are made with Chinese-origin rare earth materials or technologies – even if no Chinese companies are directly involved. Under the new rules, any foreign-made items that include Chinese-produced rare earths making up 0.1% or more of their value, or that use Chinese rare earth–related technologies in extraction, smelting, or recycling, must secure a dual-use export permit from China’s Ministry of Commerce.

At an October 13 press conference, Foreign Ministry spokesperson Lin Jian dismissed reports claiming that the new rules were aimed at Pakistan for allegedly using Chinese technology and equipment to export rare earths to the U.S. Lin emphasized that China and Pakistan are “all-weather strategic cooperative partners” with strong mutual trust and close coordination on key issues. He noted that Pakistan had assured China its cooperation with the U.S. would not harm Chinese interests. He said that the “rare earth samples” presented to the U.S. were actually gemstone samples purchased by Pakistani staff. Lin said the related media reports were unfounded, speculative, and intended to sow discord between the two countries.

Sources:
1. Center for Security and Emerging Technology, Georgetown University, October 9, 2025
https://cset.georgetown.edu/publication/mofcom-notice-2025-61/
2. People’s Daily, October 13, 2025
https://world.people.com.cn/n1/2025/1013/c1002-40581251.html

Briefings | | |   @CS Economy/Resources Geo-Strategic Trend US-China Relations

China’s Special Port Fee on U.S. Vessels Takes Effect on October 14

Huanqiu Times reported that on October 14, China’s Ministry of Transport issued the “Measures for Collecting Special Port Fees on U.S. Vessels,” consisting of ten articles and effective immediately upon publication. The following are Articles 2 through 5.

Article 2: Foreign vessels engaged in international maritime transport that dock at Chinese ports must pay the Special Port Fee for Vessels if they meet any of the following conditions:

  1. The vessel is owned by U.S. enterprises, organizations, or individuals;
  2. The vessel is operated by U.S. enterprises, organizations, or individuals;
  3. The vessel is owned or operated by enterprises or organizations in which U.S. entities directly or indirectly hold 25% or more of the equity (including voting rights or board seats);
  4. The vessel is registered under the U.S. flag;
  5. The vessel was built in the United States.

Vessels built in China under conditions (1) – (4) above are exempt from the fee. Empty vessels entering Chinese shipyards solely for repairs, as well as other vessels granted exemptions upon review, are also exempt.

Article 3: The specific fee rates are as follows (rounded up to the nearest gross ton):

  1. From October 14, 2025, RMB 400 per gross ton;
  2. From April 17, 2026, RMB 640 per gross ton;
  3. From April 17, 2027, RMB 880 per gross ton;
  4. From April 17, 2028, RMB 1,120 per gross ton.

Each vessel is subject to the special port fee for no more than five voyages per year, with April 17 marking the start of each annual billing cycle.

Article 4: The fee shall be collected by the maritime administration authority of the port where the vessel docks and managed or used according to relevant national regulations.

Article 5: If a vessel docks at multiple Chinese ports during the same voyage, the special port fee is payable only at the first port of call. For vessels making more than five voyages to Chinese ports in a year, the fee applies only to the first five voyages, with subsequent voyages exempt upon proof of prior payments.

Source: Huanqiu Times, October 13, 2025
https://world.huanqiu.com/article/4OiMfb2DneG

Briefings | | |   Economy/Resources US-China Relations

CNA: Chinese Customs Tightens Inspections on Nvidia Chip Imports

Taiwan’s Central News Agency (CNA) recently reported that China has intensified enforcement of import restrictions on Nvidia chips as part of a broader push to reduce domestic tech firms’ dependence on U.S. technology.

In recent weeks, customs authorities across major Chinese ports have begun conducting stringent inspections of imported semiconductors. The measures aim to ensure that local companies cease purchasing Nvidia chips developed specifically for the Chinese market, including models such as the H20 and RTX Pro 6000D.

According to the report, the Cyberspace Administration of China (CAC) led the initiative, instructing major technology firms – including ByteDance and Alibaba – in mid-September to halt orders and testing of Nvidia’s proprietary chips. Previously, Chinese customs officials rarely questioned the source or end use of imported chips as long as import duties were paid. Neither China Customs nor Nvidia has issued a comment on the matter.

Source: CNA, October 10, 2025
https://www.cna.com.tw/news/afe/202510100145.aspx

Briefings | | |   Information/Technology US-China Relations

China Rebuts U.S. Claims of “Malign Influence” Around Panama Canal

U.S. Ambassador to Panama Kevin Marino Cabrera accused China of exerting a “malign influence” around the Panama Canal in an interview with local outlet Contrapeso Panamá. He alleged that Chinese companies, including Hong Kong–based Hutchison Whampoa, owe Panama hundreds of millions of dollars and that China has carried out cyberattacks against countries such as Paraguay, Guatemala, Costa Rica, and the Czech Republic. Cabrera also warned that the U.S. would revoke visas for lawyers, bankers, and businesspeople tied to Chinese state-owned enterprises, asserting that “a visa is a privilege, not a right.”

The Chinese Embassy in Panama sharply rejected Cabrera’s claims, describing them as “baseless and unscientific.” It accused Washington of seeking to sow discord between China and Latin American nations and of undermining regional diplomatic autonomy to advance U.S. geopolitical interests. The embassy also criticized the U.S. for using visa restrictions as a political weapon, stating, “True friends of China are not intimidated – when Mickey Mouse closes his door, the panda opens its arms.”

Beijing further dismissed allegations of corruption and environmental harm by Chinese firms, emphasizing that China’s overseas projects are based on mutual benefit and have contributed significantly to local development. On cyberattack accusations, the embassy labeled the U.S. “the world’s largest hacker and surveillance empire,” calling its claims hypocritical. The statement concluded that American lies and intimidation only expose “arrogance and hypocrisy,” urging Washington to focus instead on genuine regional cooperation and development.

Source: Lianhe Zaobao, October 6, 2025
https://www.zaobao.com.sg/realtime/china/story20251006-7622362

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NBD: China Did not Purchase Any U.S. Soybeans for the First Time in 30 Years

National Business Daily (NBD), a Chinese national daily newspaper on business news, recently reported that the United States once exported more than half of its soybeans to China, but since May this year China has not purchased any American soybeans. The official U.S. records dating back to 1998 show that this was the first time in nearly 30 years that China had not purchased any American soybeans.

In the 2023-2024 marketing year (September 1, 2023 to August 31, 2024), the United States exported nearly 25 million tons of soybeans to China, far exceeding the 4.9 million tons exported to the second-largest market, the European Union.

Now the soybean harvest season has arrived in the United States, but China, historically the largest buyer, has not placed any orders, and soybean farmers are facing an “extremely severe situation.” The White House has made two promises to farmers: to force other countries to purchase American agricultural products in trade agreements with other countries; and to provide subsidies to domestic farmers. Data from the U.S. Department of Agriculture shows that the U.S. federal government is expected to pay more than $40 billion in subsidies to farmers in 2025, the second highest level since 1933.

Republicans also tried to provide $60 billion in aid to farmers in the “Big Beautiful Bill” at the expense of cutting nutrition subsidies for American citizens, but even if these subsidies can be issued, they will not be distributed until the next crop year.

Source: NBD, October 3, 2025
https://www.nbd.com.cn/articles/2025-10-03/4082401.html

Briefings | | |   US-China Relations

Hong Kong Leader Warns New U.S. Consul Against “Destructive” Actions

Following Beijing’s lead, Hong Kong Chief Executive John Lee has drawn red lines for the new U.S. Consul General to Hong Kong, Julie Eadeh, regarding her diplomatic work in the city. Lee’s warnings include directives that she should “not do destructive things” and “must not interfere in Hong Kong affairs.”

Since Eadeh assumed her post last month, she has invited several prominent figures to a welcome reception, including former Chief Secretary Anson Chan and former Democratic Party Chairperson Emily Lau. These invitations provoked strong criticism from pro-Beijing newspapers Ta Kung Pao and Wen Wei Po, which published consecutive articles attacking her actions. The State Council’s Hong Kong and Macau Affairs Office and the Chinese Communist Party’s Hong Kong and Macau Work Office both republished these critical articles on their websites.

When responding to media inquiries before today’s Executive Council meeting, Lee stated that he hopes consuls stationed in Hong Kong will engage in constructive rather than destructive activities. He emphasized that consuls have a responsibility to strictly observe international conventions and diplomatic protocols, performing their duties in a manner befitting their diplomatic status. Lee stressed that they must not interfere in China’s internal affairs or Hong Kong matters under any pretext or in any form, and should respect China’s sovereignty.

Additionally, China’s Foreign Ministry Office in Hong Kong recently announced that Commissioner Cui Jianchun had received Eadeh for her courtesy call upon assuming office. The announcement notably stated that Cui “required Eadeh to perform her duties in Hong Kong in a manner consistent with her diplomatic status and not to interfere in Hong Kong affairs and China’s internal affairs.” The wording was markedly more severe than in previous similar announcements.

Source: Central News Agency (Taiwan), September 30, 2025
https://www.cna.com.tw/news/acn/202509300074.aspx

Briefings | | |   US-China Relations