Skip to content

US-China Relations - 8. page

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

Trump Shows Interest in Korea-US Shipbuilding Cooperation to Counter China

South Korean government official Sung Gil Chang stated in a Yonhap News article that US President Trump has expressed positive intentions for cooperation with South Korea in the shipbuilding sector, but only on the condition that Korea participates in America’s strategy to contain China.

Chang is the Director-General for Trade Policy Coordination at South Korea’s Ministry of Trade, Industry and Energy. He made these remarks during a parliamentary discussion on trade negotiations. He explained that the US has proposed that Korea-US cooperation should be built on the foundation of jointly containing China, with shipbuilding being the most representative sector for such collaboration.

According to Chang, the United States feels a sense of crisis regarding China’s shipbuilding industry development and views South Korea as a strategic partner to jointly counter Chinese shipbuilding capabilities. In advancing Korea-US shipbuilding cooperation, the US may require Korean companies to reduce their use of Chinese materials and components to achieve the goal of containing China.

Chang emphasized that this cooperation is not merely industrial-level collaboration but rather an integrated cooperation framework with the prerequisite of “jointly balancing China.” The government is studying specific cooperation plans from an overall strategic perspective, including how to circumvent or obtain exemptions from the Jones Act.

Regarding automotive trade issues, Chang noted that the US considers Korea’s automotive export surplus to America as one of the most pressing problems to resolve. The US has clearly stated that without improvement in this area, it will not consider reducing or eliminating tariffs.

The US position fundamentally demands that Korea increase investments in America and purchase more American goods, particularly energy and agricultural products. Currently, the US is strongly demanding expanded procurement from America while proposing this as a condition for mutual tariff reductions and adjustments on specific items.

Source: Yonhap News Agency, July 11, 2025
https://cn.yna.co.kr/view/ACK20250711003700881

Briefings | | |   US-China Relations

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