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Trump Issues Executive Order for “Companies with Ties to China” to Divest Their U.S.-related Semiconductor Chip Assets

Shanghai-based Chinese online news site Guancha recently reported that U.S. President Trump has once again “targeted China,” making “underhanded” moves in the semiconductor sector. The Trump administration just issued an executive order, again citing so-called “national security” reasons, ordering the forced divestiture of semiconductor-related assets acquired by HieFo.

HieFo Optoelectronics is a photonic chip manufacturing company located in California, USA. On May 1, 2024, HieFo completed the full acquisition of U.S. company Emcore’s wafer manufacturing and photonic chip-related assets. The Trump administration claimed that HieFo was “controlled by a Chinese citizen.” In a press release in September 2025, HieFo confirmed Genzao Zhang as the company’s CEO and co-founder, noting that he previously served as the Vice President of Engineering at Emcore.

Trump issued the executive order under the Defense Production Act. Trump claimed there was “credible evidence” that HieFo’s acquisition of Emcore’s digital chip and related wafer design, manufacturing, and processing business “could threaten U.S. national security.”

This new move demonstrates the U.S. government’s crackdown and restrictions on “companies with ties to China” in areas such as semiconductors amid escalating geopolitical and technological competition between the U.S. and China.

Source: Guancha, January 3, 2026
https://www.toutiao.com/article/7590933838105248282

China’s Railway Investment Reaches Record High Despite Mounting Debt Concerns

China’s railway investment reached a record high in 2025 despite ongoing concerns about overexpansion and operational losses in the country’s high-speed rail network. The China State Railway Group announced that national railway fixed asset investment totaled 901.5 billion yuan (approximately $124 billion) in 2025, representing a 6 percent year-on-year increase and surpassing all previous years.

The 2025 figure marks a significant milestone in China’s railway development trajectory. From 2021 to 2024, annual investments ranged from 710.9 billion to 850.6 billion yuan (approximately $98 billion to $117 billion), while the 2016-2020 period saw investments mostly hovering between 801 billion and 802.9 billion yuan (approximately $110 billion to $111 billion), except for 2020’s 781.9 billion yuan (approximately $108 billion).

In 2025, China opened 3,109 kilometers (1,931 miles) of new railway lines, with high-speed rail accounting for 2,862 kilometers (1,778 miles). This expansion brought the nation’s total railway network to 165,000 kilometers (102,526 miles). Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, described the investment as a strategic cornerstone for economic stability and a catalyst for unlocking domestic consumption potential.

However, this expansion comes at a significant financial cost. According to Ming Pao‘s recent report, the China State Railway Group’s total debt reached 6.2 trillion yuan (approximately $855 billion) by the end of 2024, with a debt ratio of 63.52 percent. Only a handful of routes connecting economically developed and densely populated areas—including the Beijing-Shanghai, Beijing-Tianjin, Shanghai-Hangzhou, Shanghai-Nanjing, Nanjing-Hangzhou, and Guangzhou-Shenzhen-Hong Kong lines—are profitable, representing merely 5 percent of the country’s total high-speed rail network. Additionally, at least 26 high-speed railway stations were reportedly idle due to remote locations, inadequate surrounding facilities, and low passenger traffic.

Source: Central News Agency (Taiwan), January 4, 2026
https://www.cna.com.tw/news/acn/202601040175.aspx

Chinese Media: The American “Kill Line” as Proof of the Superiority of China’s System

Chinese media outlets have recently focused on a concept dubbed the American “kill line” to argue that China’s political and economic system is superior. An article published by Guancha is a representative example.

Borrowed from video game terminology, the “kill line” originally refers to a threshold below which a character can be instantly eliminated. In social discourse, it is used to describe how many Americans live with extremely thin financial margins, such that a single shock—such as illness, job loss, or a missed rent or mortgage payment—can rapidly push them into severe hardship, including poverty or homelessness. Once rent or mortgage payments are missed, credit scores are damaged, making it difficult to obtain loans to buy a car or secure housing. Without transportation or stable shelter, finding or keeping a job becomes nearly impossible, creating a vicious cycle with no clear exit.

The article draws on an interview with Neil, a long-time North America resident and TikTok commentator, to illustrate the lack of economic resilience and upward mobility among large segments of the U.S. population. Neil argues that while earlier generations believed hard work could reliably lead to middle-class stability, many Americans today struggle just to cover basic expenses such as rent and debt payments. The piece contrasts the U.S. system with Canada’s more robust social safety nets and with China’s institutional support mechanisms, concluding that Americans who fall below the “kill line” have few reliable paths back to financial security.

Neil further contends that the United States has entered a phase of “late-stage capitalism.” In this stage, he argues, big data and artificial intelligence may be used to keep the bottom 80 percent of the population in a state of “being alive but continuously exploited”: conditions are kept just tolerable enough to survive, while people are tightly constrained, compelled to keep generating value that is steadily siphoned upward to those at the top.

Source: Guancha, December 29, 2025
https://www.guancha.cn/Neil/2025_12_29_801980.shtml

Guangxi Accelerates AI Integration as New Technologies Target ASEAN Markets

On December 26, the “A-Super Night” event of the AI Empowerment Super League was held at Guangxi University, highlighting the growing integration of artificial intelligence across multiple industries under the model of “R&D in Beijing or Shanghai, integration in Guangxi, and application in ASEAN.” Four companies unveiled a range of new AI products aimed at industrial upgrading and deeper regional cooperation.

Among the highlights was “Rundao XingSuan,” Guangxi’s first token-priced intelligent computing platform. Designed to turn computing power into a shared public resource, the platform aggregates dispersed computing capacity and provides affordable, on-demand access. Organizers described it as a “computing utility,” offering inclusive AI infrastructure for Guangxi while extending computing services to ASEAN markets.

Other innovations included an AI-enabled robotic microbiology testing laboratory that enhances efficiency and safety, the “Smart Cube” immersive service robot for tourism and commercial venues, and three ASEAN-oriented AI products focused on smart agriculture, AI-driven Chinese language education, and intelligent ERP systems for small and medium-sized enterprises. Together, these releases underscore Guangxi’s emerging role as a key hub connecting China’s AI research capabilities with real-world applications across Southeast Asia.

Source: People’s Daily, December 27, 2025
http://gx.people.com.cn/n2/2025/1227/c179464-41455803.html

Chinese Official Calls for Politically Reliable Buddhist Leadership

Wang Huning, chairman of the Chinese People’s Political Consultative Conference (CPPCC), met with senior members of the Buddhist Association of China on December 28–29, urging the organization to cultivate a politically reliable pool of Buddhist leaders and talent. He emphasized that Buddhist leaders and believers should adhere to the guidance and direction of the Communist Party of China.

The meeting was held on the sidelines of the 11th National Congress of the Buddhist Association of China, which took place in Beijing. According to the People’s Daily, Wang stressed that the association must strengthen its ideological and political leadership, guiding Buddhist figures and followers to practice socialist core values and to establish what he described as “correct” views on the nation, history, ethnicity, culture, and religion.

Wang also called for continued efforts to advance the sinicization of Buddhism, stating that Buddhist doctrines, management systems, rituals, customs, and behavioral norms should reflect Chinese characteristics and align with contemporary social requirements. He underscored the importance of implementing comprehensive and strict religious governance, enhancing legal education, and ensuring that clergy comply with laws and regulations while maintaining appropriate religious practices.

Additionally, Wang highlighted the need to cultivate Buddhist personnel who are politically reliable, religiously knowledgeable, morally respected, and capable of assuming responsibilities when required. He specifically emphasized developing “dual-competency” individuals who are well versed in Buddhist teachings and deeply knowledgeable about traditional Chinese culture.

During the congress, the Buddhist Association of China reviewed the work report of its 10th Council, adopted revised association regulations and religious rules, and elected a new leadership team. The meeting marks another step in the Chinese government’s ongoing efforts to strengthen oversight of religious organizations and ensure their alignment with Communist Party priorities.

Source: Central News Agency (Taiwan), December 30, 2025
https://www.cna.com.tw/news/acn/202512300169.aspx

China’s Export Data Inflated by Government-Backed Fraud Scheme

A comprehensive investigation by Chinese financial media outlet Yicai has exposed widespread fraud in China’s export statistics, revealing that local governments have not only permitted but actively orchestrated schemes to artificially inflate trade figures. This comes as Beijing announced that its trade surplus for the first eleven months exceeded $1 trillion, reaching a historic high.

The report details a systematic fraud involving “bought export data,” where shell companies purchase export statistics from customs brokers to claim government subsidies. Unlike traditional tax fraud schemes, these operations rely on local government rewards for export performance. Companies establish numerous shell entities with foreign trade qualifications, purchase export data that never actually occurred in their registered locations, and receive financial incentives based on these fabricated figures.

In one case from an inland province, defendants allegedly established shell companies across multiple locations and purchased export data from other provinces, defrauding the government of over 100 million yuan ($13.8 million) in export incentives. A similar case in southwestern China involved more than 100 shell companies and fraudulent claims exceeding 200 million yuan ($27.6 million).

Evidence suggests local governments not only knew about these practices but actively participated. Family members of defendants stated the schemes were designed to “cooperate with the government in achieving performance targets.” Some officials provided explicit or implicit support, with one former commerce bureau chief receiving millions in kickbacks through profit-sharing arrangements.

Legal expert Shi Zhengwen from China University of Political Science and Law criticized the export incentive policies, arguing they distort market competition and violate international trade rules. He noted that such data manipulation contradicts Beijing’s stated goals of high-quality development and creating a world-class business environment, suggesting local governments prioritize short-term targets over genuine economic progress.

Source: Central News Agency (Taiwan), December 29, 2025 https://www.cna.com.tw/news/acn/202512290314.aspx

China Requires Social Media Screening for Civil Service Recruitment

Multiple regions across China are now examining candidates’ online behavior and social media activity as part of civil service recruitment, according to recent reports from the China Organization and Personnel News, a publication under China’s Ministry of Human Resources and Social Security.

In Shandong province, authorities have implemented comprehensive background checks that scrutinize applicants’ political ideology, career motivations, and value orientations. Investigators visit workplaces, communities, residential compounds, and candidates’ homes to assess their conduct both during and outside working hours. For those who frequently changed jobs, investigators extend inquiries to previous employers to evaluate work performance and public perception. Collaborating with internet and public security departments, authorities review online statements of key personnel to understand their true character both in person and online, firmly screening out those deemed politically unqualified.

Hubei province conducts similar assessments covering candidates’ work circles, social circles, and personal development. Investigators physically visit educational institutions, workplaces, and residences while monitoring daily online behavior. They randomly examine posts in alumni groups and other public platforms, reviewing social media accounts for content shared, followed accounts, likes, and comments to gauge political stance, values, and personal interests.

In Xinjiang’s Altay region, civil service recruitment now includes screening for risky online behaviors such as posting inappropriate content, spreading false information, engaging in online gambling, or illegal lending on social media platforms.

A professor from the Central Party School noted that while political, value-based, and moral requirements have always been central to civil service examinations, the scrutiny of candidates’ online and offline conduct has become increasingly detailed. Following these announcements, training institutions in Hubei have advised candidates to self-examine their online behavior and maintain appropriate conduct both online and offline.

Source: Central News Agency (Taiwan), December 27, 2025
https://www.cna.com.tw/news/acn/202512270058.aspx

People’s Daily: Nearly 495,000 Overseas Students Returned to China in 2024, Up 19.1 Percent Year on Year

China’s Ministry of Education said that 495,000 Chinese students who studied overseas returned to China in 2024, a 19.1 percent increase from the previous year, highlighting a growing trend of overseas talent returning home. The announcement was made at the 30th anniversary of the “Chunhui Plan” and the 2025 Chunhui Innovation and Entrepreneurship Exchange held in Shanghai.

Since 1978, 8.88 million Chinese students have studied abroad, with 6.44 million eventually returning to China. Of these, 5.63 million have returned since the 18th Chinese Communist Party’s National Congress (when Xi Jinping came into power in 2012), accounting for about 87 percent of all returnees, providing strong support for China’s economic and technological development.

Source: People’s Daily, December 12, 2025
https://world.people.com.cn/n1/2025/1212/c1002-40622757.html