China weighs options to blunt U.S. sanctions in a Taiwan conflict; U.S. considering curbing China's cloud access, official says
China Raids Offices of WPP Unit GroupM, Detains Executive; Taiwan Names TSMC Founder Morris Chang as APEC Summit Envoy
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China weighs options to blunt U.S. sanctions in a Taiwan conflict
Japan Times
Chinese government-affiliated researchers have been studying the Western response to Russia's invasion of Ukraine in order to understand how China should mitigate extreme scenarios, including a potential war with the US over Taiwan. The researchers suggest that in such a conflict, China would need to create a global network of companies under US sanctions, seize American assets within its borders, and issue gold-denominated bonds. They are concerned that the US could replicate the financial sanction model it has applied to Russia against China. The researchers' findings are based on a review of more than 200 Chinese-language policy papers and academic articles published since February 2022.
U.S. considering curbing China's cloud access, official says
Nikkei Asia
The US government is considering measures to restrict China's access to cloud computing services provided by American companies as a means to curb Beijing's efforts to develop artificial intelligence (AI) for military use. The US recently tightened controls on exports of advanced chips to China, but it is believed that China could still utilise cloud computing technology to develop AI systems for military purposes. The US is now exploring ways to control access to cloud-based technologies.
Chinese construction firms in Rwanda losing market share to India, Turkey
South China Morning Post
Chinese construction companies in Rwanda are facing increased competition and declining profits due to fewer development projects available for bidding since the pandemic. The decline in the number of projects in Rwanda resulted from a government reallocation of Covid-related resources to the healthcare sector. Chinese companies like Stecol Corporation had ventured into Rwanda following its government’s drive to launch various development projects in recent years with help from China. However, Chinese firms are not the only construction players involved in Rwanda’s development projects. In recent years, Turkish and Indian rivals have also vied for and won several projects in the country. The number of bidders per contract depends on a project’s size. Growing competition for major projects has resulted in Stecol taking on only two to four projects a year, down from five to seven when it first entered the Rwandan market. Despite the challenges, Rwanda remains a popular destination for Chinese companies, with some 20 Chinese firms expressing interest in venturing into Rwanda during a business roadshow in July.
China to exceed predictions with over 1,000 nukes by 2030: Pentagon report
South China Morning Post
China is on track to exceed previous projections in boosting its nuclear capabilities, according to a report from the US Department of Defense, which suggests that China will have more than 500 operational nuclear warheads and the number is expected to exceed 1,000 by 2030. The report also reveals that China has been expanding its quantity of "land-, sea-, and air-based nuclear delivery platforms" in the past decade by investing in infrastructure to support its nuclear forces. The build-up of China's nuclear arsenal is seen as part of its deterrence against interventions, especially from the US and Japan, in the event of a war on Taiwan.
Taiwan Names TSMC Founder Morris Chang as APEC Summit Envoy
Bloomberg
Taiwan has appointed Taiwan Semiconductor Manufacturing Co. founder Morris Chang as its special envoy to the Asia-Pacific Economic Cooperation summit next month, which could see the first meeting between the presidents of the US and China in almost a year. The 92-year-old chip pioneer has represented Taiwan at the meeting four times previously.
US Official Says Export Curbs Will Impede China’s Chip Progress
Bloomberg
US export controls on advanced chipmaking equipment will hinder China's efforts to develop its own semiconductor industry, according to Under Secretary of Commerce for Industry and Security Alan Estevez. The measures, which restrict China's access to spare parts for existing machines, are designed to curb China's technological advancement. Estevez also expressed concern that China could use the advanced technology for military applications. The Biden administration recently unveiled additional export control measures to tighten China's access to advanced semiconductors and chipmaking gear. Estevez acknowledged that his agency still needs to address the issue of Chinese firms using overseas cloud computing services to train their AI models.
Biden Wanted to End ‘Forever Wars.’ Now He Looks Like a Wartime President.
WSJ
President Biden's goal of ending the "forever wars" and focusing on domestic priorities and competition with China is being threatened by the Hamas-Israel war and his response to it. Biden has shown steadfast support for Israel, but the Israeli bombardment of Gaza has magnified a humanitarian crisis and the conflict risks spreading. Biden's planned meeting with Palestinian Authority President Mahmoud Abbas and other Arab leaders fell apart after an explosion at a Gaza hospital. The conflict is the second hot war Biden has dealt with after Russia's assault on Ukraine, and it risks overshadowing his domestic and economic agenda and diverting resources away from countering China. Biden's support for Israel and Ukraine faces hurdles in a divided Congress, and his low approval ratings at home have barely budged despite his backing for Israel. A wider Middle East conflict could also hurt the global economy and push up energy prices, which would further impact Biden's approval ratings. The crisis has sent the administration into a round-the-clock effort to bolster Israel, contain the conflict, and rally support at home and abroad. The administration is divided over its support for Israel, and there are concerns about the conflict spreading and inciting terrorism and attacks on Americans.
U.S. tech export curbs may not fit Japan's interests: former trade official
Nikkei Asia
Former US trade official Wendy Cutler has highlighted challenges in coordinating policy on economic security between the US and Japan. Cutler said that US controls on exports of cutting-edge technology to China may not align with Japan's interests, as they are more focused on promoting America's economic interests. Both countries have set out policies to cut off China from their supply chains, including export curbs on chip-related tools. However, this has raised concerns among Japanese companies that it could damage their business in China. There are differences in opinion between the two countries, with the US placing more weight on security and Japan balancing between the economy and security.
China Raids Offices of WPP Unit GroupM, Detains Executive
WSJ
Chinese police have raided the Shanghai offices of GroupM, the media-investment unit of WPP, questioning local executives including GroupM’s Chief Executive in China, Patrick Xu. The reason for the raid and detention is unclear, as is whether it has any links to national security issues. China has been taking a tougher stance on foreign businesses in recent years, raiding the offices of several companies and implementing strict new data rules. These moves have damaged American businesses' confidence in China and have raised concerns over the country's opaque law and business environment.
Cairo peace summit grapples with Gaza war as risks to region rise
Yahoo US
Egypt is convening a summit to try to head off a wider regional war in Gaza. However, assembled Middle Eastern and European leaders are expected to struggle to agree a common position on the conflict between Israel and Hamas militants. Diplomats have said that it is unlikely there would be a joint statement from the gathering because of sensitivities around any calls for a ceasefire, and whether to include mention of Hamas's Oct. 7 attack on Israel and Israel's right to defend itself.
Anonymous Chinese social media accounts hit by latest crackdown
South China Morning Post
Chinese social media platform Weibo is requiring users with a large following to disclose their real names, a move that has sparked concerns about privacy violations and increased online exposure. The new policy will mainly affect influencers who regularly post about politics, finance, and entertainment. Users with more than one million followers will need to comply by the end of October, while those with 500,000 to one million followers have until the end of the year. Weibo has started reaching out to influencers to inform them of the changes and ask for their consent. The move is part of a broader effort by the Chinese government to increase control over self-media, or accounts that publish news and information but are not affiliated with official media. Critics fear that the new rules will further suppress public expression on China's heavily restricted internet, while supporters argue that influencers should take more responsibility and be transparent about their identities.
China and Japan experts seek dialogue ahead of anniversary
Japan Times
China and Japan should put bilateral dialogue back on track and work together to ensure peace and security in the region, according to a joint statement by around 100 experts from both countries. The statement also called for the two nations to address concerns over the release of treated radioactive water from the Fukushima nuclear power plant into the sea. The experts made their appeal ahead of the 45th anniversary of the China-Japan Treaty of Peace and Friendship.
The multimillion-dollar machines at the center of the U.S.-China rivalry
Japan Times
The United States has taken steps to restrict China's progress in developing its own chipmaking industry by blocking companies from exporting certain types of chipmaking machines to China. These machines are crucial for China's efforts to advance its technology and develop its military capabilities. The move is part of the ongoing conflict between the US and China over technological advancements.
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