US should ‘steal’ China’s best AI talent to keep pace, Senate hears
How China and US can work together to end Ukraine war
Welcome to this issue of The China Brief. Today is January 31, 2025. Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.
US should ‘steal’ China’s best AI talent to keep pace, Senate hears
South China Morning Post
US lawmakers are advocating for welcoming top Chinese scientists to American universities to enhance competition in AI, following the emergence of Chinese start-up DeepSeek. Melanie Hart from the Atlantic Council emphasized the need to attract Chinese engineers, while also ensuring their safety in the US. Concerns were raised about the Chinese government’s influence, as many Chinese scientists are returning home due to national security policies and better opportunities in China. The hearing highlighted the need for the US to combat Chinese influence in academia, with suggestions to regulate Chinese tech platforms like DeepSeek similarly to TikTok.
https://www.scmp.com/news/china/article/3296852/us-should-steal-chinas-best-ai-talent-keep-pace-senate-hears?utm_source=rss_feed
How China and US can work together to end Ukraine war
South China Morning Post
The article discusses the ongoing Ukraine war and the potential role of China as a broker, especially in light of Donald Trump’s recent comments seeking Chinese assistance. Despite China's previous peace proposals and initiatives, they have not succeeded due to the entrenched positions of both Ukraine and Russia. The article suggests that any resolution requires collective security guarantees from major powers, including the US and China. It also critiques the idea of a European peacekeeping mission, advocating for neutral countries' involvement instead. Ultimately, the need for major power mediation is emphasized to find a lasting solution to the conflict.
https://www.scmp.com/opinion/china-opinion/article/3296443/how-china-and-us-can-work-together-end-ukraine-war?utm_source=rss_feed
Trump’s picks for FBI and intelligence directors cite China’s threat during confirmation hearings
South China Morning Post
During confirmation hearings for two of President Trump's intelligence and law enforcement nominees, contrasting approaches to China's national security threat emerged. Kash Patel, nominated to lead the FBI, adopted a hawkish stance, prioritizing countering China's espionage and synthetic drug trafficking. He emphasized the urgency of protecting critical infrastructure and argued for warrantless surveillance provisions under the Foreign Intelligence Surveillance Act (FISA) to combat these threats, despite concerns about violations of Americans' privacy rights.
Conversely, Tulsi Gabbard, nominated as national intelligence director, downplayed the risks associated with the Chinese-owned app TikTok, framing her concerns around potential government overreach and advocating for broader data privacy legislation. While she acknowledged China's cyberattacks as significant threats, Gabbard's lack of intelligence experience and her prior criticisms of U.S. interventionism raised questions about her suitability for the role. Both nominees faced bipartisan scrutiny, with Patel's past controversial statements and Gabbard’s historical positions on military matters contributing to their contentious hearings. Ultimately, both sought to address China's influence on U.S. security, albeit from markedly different perspectives.
https://www.scmp.com/news/us/diplomacy/article/3296858/trumps-picks-fbi-and-intelligence-directors-cite-chinas-threat-during-confirmation-hearings?utm_source=rss_feed
China urged to play ‘leading role’ in Pakistan anti-terror drive after string of attacks
South China Morning Post
A think tank report suggests that China should take a leading role in counterterrorism efforts with Pakistan to protect Chinese personnel and projects, especially in Balochistan, where attacks have been frequent. The report emphasizes the need for improved intelligence sharing and the involvement of private Chinese security firms. It highlights that the Balochistan Liberation Army (BLA) has targeted Chinese interests and suggests that external forces, potentially including India and the U.S., may be undermining China-Pakistan relations. Despite security concerns, the report argues for continued Chinese investment in Pakistan to foster economic development and reduce terrorism.
https://www.scmp.com/news/china/diplomacy/article/3296811/china-urged-play-leading-role-pakistan-anti-terror-drive-after-string-attacks?utm_source=rss_feed
Italy blocks Chinese AI app DeepSeek, opens investigation into data use
South China Morning Post
Italy's Data Protection Agency has initiated an investigation into the AI chatbot developed by Chinese start-up DeepSeek and has prohibited it from processing data of Italian users. The agency cited "completely insufficient" responses from DeepSeek regarding its handling of personal data as the reason for the action. The restriction aims to safeguard the data of Italian users while the investigation is ongoing. DeepSeek, which claims not to operate in Italy and argues that European legislation does not apply to it, has faced scrutiny over its data collection methods and AI training processes. This follows previous actions by the agency against other AI companies, including a €15 million fine against OpenAI for similar privacy violations.
https://www.scmp.com/news/world/europe/article/3296854/italy-blocks-chinese-ai-app-deepseek-opens-investigation-data-use?utm_source=rss_feed
US lawmakers raise concerns about Chinese national ballet performance in Washington
South China Morning Post
Two US lawmakers, Chris Smith and John Moolenaar, are criticizing the John F. Kennedy Centre for hosting the National Ballet of China, claiming it serves as a tool of the Chinese Communist Party (CCP) and promotes propaganda. They argue that art in China is heavily politicized and that the ballet company is controlled by the CCP. The lawmakers urged the Kennedy Centre to reconsider its association, questioning whether it would address issues of artistic suppression during the performances. In response, China’s embassy dismissed the accusations and emphasized the importance of cultural dialogue.
https://www.scmp.com/news/china/diplomacy/article/3296875/us-lawmakers-raise-concerns-about-chinese-national-ballet-performance-washington?utm_source=rss_feed
Tesla and Chinese Carmakers Could See Windfall From E.U. Emissions Rules
NY Times
European automakers are facing significant challenges as they prepare for potential trade conflicts with President Trump while simultaneously grappling with new EU regulations on carbon emissions. These regulations impose heavy penalties for failing to meet emissions reduction targets, pushing automakers to produce more electric vehicles or reduce combustion engine output. With declining demand for electric cars and increased competition from Chinese manufacturers, the industry is lobbying for relief.
European Commission President Ursula Von Der Leyen has acknowledged these challenges and promised swift regulatory action. Automakers can meet their targets by purchasing emissions credits from companies with surplus credits, like Tesla and China's Geely. This strategy has raised alarms in major automotive countries like France and Germany, as it coincides with softening electric vehicle demand, raising concerns about potential factory closures and job losses. Additionally, Tesla's CEO Elon Musk has been vocal about EU tariffs on Chinese electric vehicles, further complicating the situation for European automakers.
https://www.nytimes.com/2025/01/31/business/tesla-chinese-carmakers-europe-emissions.html
Chinese biotech firms cash in on promising drug discoveries via licensing deals
South China Morning Post
Chinese biotech start-ups are striking lucrative licensing deals with overseas partners, potentially generating billions if their drug candidates succeed. Despite a challenging market, the value of out-licensing agreements rose 68% year-on-year, reflecting increased confidence from international buyers in early-stage Chinese assets. Major deals, such as Shanghai Argo Biopharmaceutical's agreement with Novartis, highlight this trend. While private biotech investment has declined, the sector remains optimistic about developing innovative drugs, with a goal of achieving overseas approval for several domestically developed drugs by 2025.
https://www.scmp.com/business/china-business/article/3296809/chinese-biotech-firms-cash-promising-drug-discoveries-licensing-deals?utm_source=rss_feed
DeepSeek has ended Silicon Valley's AI monopoly
Nikkei Asia
DeepSeek, a Chinese AI company, has challenged the belief that AI progress requires significant computing resources by achieving performance comparable to leading models at a lower cost. This shift has caused market volatility for Nvidia and prompted a reassessment of U.S. policies aimed at restricting China's access to semiconductor technology. DeepSeek's focus on refined algorithms positions it for high-value applications, indicating a move towards sector-specific AI competition rather than a battle over hardware. The rise of DeepSeek suggests that innovation under constraints may redefine AI dominance, potentially favoring China over traditional Silicon Valley players.
https://asia.nikkei.com/Opinion/DeepSeek-has-ended-Silicon-Valley-s-AI-monopoly
Stock market today: Asian stocks mostly higher after Wall Street tech gains
Associated Press
Asia markets mostly rose on Friday, following gains in U.S. stocks led by Tesla, IBM, and Meta Platforms after strong profit reports. Japan's core inflation hit 2.5%, exceeding the central bank's target, while unemployment dropped to 2.4%. Tokyo's Nikkei 225 gained slightly, but South Korea's Kospi fell due to concerns over AI competition from DeepSeek, impacting major tech stocks like SK Hynix and Samsung. The S&P 500 rose 0.5%, driven by Meta's performance, though Microsoft shares dipped due to slower cloud growth. Oil prices and U.S. futures also saw increases.
https://apnews.com/article/stock-markets-deepseek-earnings-tech-06ad2c4f718b73e16324d3111c2337ed
Does a ‘foreign power’ threaten the Panama Canal? Here’s what you need to know
CNN
Secretary of State Marco Rubio's inaugural diplomatic trip begins in Panama, where tensions are high following President Donald Trump's claims regarding the Panama Canal. Trump has repeatedly suggested that the U.S. needs to regain control of the canal, alleging that it has fallen under Chinese military influence. Panama's President, José Raúl Mulino, firmly rejected this notion, emphasizing the nation's sovereignty over the canal. The canal has been operated by the Panama Canal Authority since 2000, independent from foreign control. While Trump’s rhetoric has intensified, lacking evidence of any Chinese military presence in Panama, concerns about Chinese investments persist. The Trump administration's claims may stem from Panama Ports, owned by a Hong Kong conglomerate, which operates terminals near the canal but does not control access to it. The U.S. would face significant legal and diplomatic challenges if it attempted to seize the canal, as the 1977 treaty established Panama's control and mandated neutrality. Military action could jeopardize U.S. interests in the region, complicate migration issues, and put American citizens in danger, all while damaging relationships with allies and courting backlash from Russia and China.
https://edition.cnn.com/2025/01/31/americas/panama-canal-china-rubio-explainer-intl-latam/index.html
TikTok to invest $3.7bn in Thailand data center project
Nikkei Asia
TikTok is set to invest 126.8 billion baht ($3.76 billion) in a data center project in Thailand, according to the country's Board of Investment (BOI). The project aims to provide data hosting services to affiliated companies, with operations expected to commence as early as next year. The Eastern Economic Corridor is a likely location for the data center. This investment is seen as a significant advancement in Thailand's digital and AI infrastructure, aligning with the government's goal of becoming a digital innovation hub in the ASEAN region. The growing demand for data centers, driven by the rise of generative AI, has attracted multiple investments in Thailand, including projects from Google, Microsoft, and Alibaba. Additionally, the Thai government is promoting renewable energy initiatives to support environmentally friendly "green data centers."
https://asia.nikkei.com/Business/Technology/TikTok-to-invest-3.7bn-in-Thailand-data-center-project
Can we fix generative AI's massive energy and water use?
Deutsche Welle
The recent announcement of a $500 billion investment by US firm Stargate in Artificial Intelligence (AI) and the launch of a new, energy-efficient AI chatbot by China's DeepSeek highlight growing concerns about AI's environmental impact. Current AI models consume significant energy, with over 8,000 data centers accounting for 1-2% of global electricity use. Experts predict that data center power demand could increase by 160% by 2030. The environmental implications are serious, as energy-hungry data centers often rely on fossil fuels, leading to increased greenhouse gas emissions. Additionally, AI production processes require substantial water, with studies indicating potential global water withdrawals of 6.6 billion cubic meters annually by 2027. To mitigate these impacts, experts suggest using renewable energy sources, improving energy efficiency, and better managing water use. While DeepSeek's innovation may reduce the resource consumption associated with AI, there are concerns that efficiency gains could lead to increased demand, complicating sustainability efforts. Overall, balancing AI advancements with environmental considerations remains a pressing challenge.
https://www.dw.com/en/can-we-fix-generative-ais-massive-energy-and-water-use/a-71459557
Stay informed about the latest news, analysis, and policy briefs from across the globe related to China with the China brief. Our team aggregates, synthesizes, and summarizes the most important information from various sources, including media outlets, think tanks, government agencies, and industry experts.
Our mission is to provide you with easily accessible and critically valuable information tailored to your specific field of interest. We understand the significance of staying up-to-date on developments related to China and aim to make this information comprehensible for our readers.
Join the conversation and stay informed about the latest news and developments related to China by visiting our website at www.6dobrief.com