Global Dynamics: Joint China-Russia Naval Drills, Technological Growth, and Expanding Belt and Road Ties

China, Russia joint naval exercises routine drill, ministry says

The recent joint naval exercises by China and Russia in the Gulf of Finland were part of routine military cooperation and complied with international law and standards, said Senior Colonel Zhang Xiaogang, a spokesperson for China's Ministry of National Defense, on Friday. He noted that the exercises were neither aimed at specific targets nor related to current regional situations. The exercises, held to mark the 328th anniversary of the Russian Navy, involved Chinese naval vessels Jiaozuoand Honghualongside Russian ships.

Linda Sun, the former aide to New York Governors Kathy Hochul and Andrew Cuomo, was charged with being an undisclosed agent of China.

Linda Sun, a former aide to New York Governor Kathy Hochul, was arrested alongside her husband, Chris Hu, on charges related to acting as an undisclosed agent for the Chinese government. The indictment against them includes allegations of visa fraud, money laundering, and conspiracy to launder money. Sun is accused of using her position to further the interests of the Chinese government, including obstructing Taiwanese government representatives and facilitating unauthorized entry of Chinese officials into the U.S. In return, she and her husband allegedly received financial benefits, including millions of dollars in transactions and other perks. The couple is also accused of laundering funds to purchase luxury items and properties.

China's Strategic Control Over Antimony Exports: Implications for Global Supply Chains

China has recently announced new export controls on antimony, a critical mineral essential for various industrial applications such as flame retardants, batteries, and semiconductors. These controls, set to take effect on September 15th, 2024, will require exporters to obtain special licenses to ship antimony products abroad. This move is part of China's broader strategy to assert greater control over critical mineral supply chains, potentially leading to tighter global supply and higher prices.

As the world's largest producer and exporter of antimony, China accounts for more than 70% of the global supply. Implementing these export controls signals a shift towards resource nationalism, reflecting a response to similar restrictions other countries impose. This strategic maneuver could exacerbate geopolitical tensions and raise concerns about the reliability of Chinese mineral supplies.

The implications of these controls are significant, as they may disrupt global supply chains and prompt international stakeholders to seek alternative sources of antimony. Countries heavily reliant on Chinese exports might accelerate investments in domestic production capabilities to mitigate dependency and ensure a stable supply of this critical mineral. Additionally, the strategic importance of antimony in technological competition, particularly between China and Western nations, underscores the broader geopolitical context of these export restrictions.

Florida Telecommunications and Information Technology Worker Charged with Acting as Agent of PRC Government

Ping Li, a 59-year-old telecommunications and information technology worker from Wesley Chapel, Florida, has pleaded guilty to conspiring to act as an agent of the People's Republic of China (PRC) without notifying the U.S. Attorney General. This charge highlights the legal requirement for individuals acting on behalf of foreign governments to register with the U.S. government. Li's actions were part of a broader investigation into unauthorized foreign influence and espionage activities within the United States.

U.S. Army Intelligence Analyst Pleads Guilty to Charges of Conspiracy to Obtain and Disclose National Defense Information, Export Control Violations, and Bribery

Korbein Schultz, a U.S. Army intelligence analyst, pleaded guilty to charges of conspiring to sell military secrets to the Chinese government. Schultz, who held a top-secret clearance, collaborated with an individual in Hong Kong whom he suspected of being linked to the Chinese government. He provided this individual with national defense information, including classified data and export-controlled technical data related to U.S. military weapons systems, in exchange for approximately $42,000. The sensitive documents included information on U.S. military tactics, lessons learned from the Russia-Ukraine war applicable to Taiwan's defense, and details about U.S. military satellites.

Baidu reaches $4.67 bln in revenue in the second quarter

The Chinese tech heavyweight, Baidu Inc, reported its total revenue reached 33.9 billion yuan ($4.67 billion) in the second quarter of this year on Thursday, which was essentially flat from last year, with artificial intelligence technology becoming an important growth driver for the company. Revenue from Baidu's core businesses came up to 26.7 billion yuan during the April-June period, an increase of 1 percent year-on-year, while its net profits stood at 5.5 billion yuan, up 5 percent year-on-year. Robin Li, co-founder and CEO of Baidu, said in a statement that the transformative impact of generative AI and foundation models is becoming more tangible in business and everyday life.

China's average life expectancy hits record high of 78.6 yrs: NHC.

China's average life expectancy has reached 78.6 years, the maternal mortality ratio has dropped to 15.1 per 100,000, and the infant mortality ratio has dropped to 4.5 per 1,000. According to the announcement of the National Health Commission of China (NHC) on Thursday, these achievements are the best on record. On Thursday, the national health authority released the 2023 statistical bulletin on developing the country's health service.

Home cooks decry rising vegetable prices.

A recent surge in vegetable prices has prompted Li, a 34-year-old Beijing resident who regularly cooks at home to manage expenses and maintain a balanced diet, to rethink her strategy. Li, who only provided her surname, has witnessed significant price hikes in large-leaf spinach and cucumbers. The cost of 600 grams of cucumbers on an online grocery platform has soared from 2 yuan (28 cents) to nearly 7 yuan in just a few months, while 300 grams of spinach now sells for 9 yuan, up from 2.5 yuan.

BRI media urged to curb fake news, promote project

Members of the Belt and Road News Network need to jointly crack down on publishing fake news to prevent misunderstandings, said attendants of the 3rd Council Meeting of the Belt and Road News Network held in Chengdu, Sichuan province, on Thursday. Fake news is a severe problem around the world, sowing fear and distrust and destroying entire industries, said Lydia Wang, chief business officer of the Star Media Group in Malaysia. Sarmad Ali, managing director of Pakistan's Jang Media Group, said the world has seen increasing conflicts since World War II.

China's APT41 Targets Taiwan Research Institute for Cyber Espionage

The state-sponsored Chinese threat actor gained access to three systems and stole at least some research data about computing and related technologies. August 2nd, 2024, China-linked advanced persistent threat group APT41 appears to have compromised a government-affiliated institute in Taiwan that conducts research on advanced computing and associated technologies. The intrusion began in July 2023, with the threat actor gaining initial access to the victim's environment via undetermined means.

Chinese-made power bank gains spotlight after Trump-Musk interview

In a live conversation featuring former U.S. President Donald Trump and Tesla CEO Elon Musk, a Chinese brand, Anker, unexpectedly gained widespread attention online after some netizens discovered that the power bank used by Trump was likely made by the company. A photo shared on social media shows Trump in his office, conversing with Musk via smartphone, with a magnetic power bank likely from the Chinese brand Anker Innovations prominently in use, as reported by Phoenix New Media. The power bank was then widely promoted on Chinese social media platforms, with Anker Innovation's official Douyin account labeling the product as the model used by Trump.

China conducts the 12th sea-based satellite launch successfully.

By now, China has performed 12 sea-based launches involving four types of rockets: Long March 11th, Smart Dragon 3, Ceres 1, and Gravity 1. The company said in a news release that the rocket blasted off at 1:22 pm from a mobile launch platform, a modified deck barge in the Yellow Sea off the eastern province of Shandong, and then sent six satellites into a sun-synchronous orbit about 535 kilometers above the Earth. According to Galactic Energy, from multiple operators, the satellites will be used to collect meteorological data, demonstrate optical remote-sensing technologies, and collect hyper-spectral remote-sensing data.

The Real Challenge to the CCP's Third Plenum Vision

The Third Plenum of the Chinese Communist Party's 20th Central Committee concluded with a focus on maintaining existing policies rather than introducing significant economic reforms. Despite expectations for bold changes to address China's structural challenges, the plenum emphasized stability, reinforcing Xi Jinping's policy agenda. Some advancements were noted in fiscal reform, such as proposals to expand China's direct tax system by increasing personal income and consumption taxes. These measures aim to shift from an indirect tax system to improve revenue collection. Additionally, the plenum suggested reforms to manage local government debt by consolidating local taxes and granting more authority over tax rates.

However, the primary challenge lies in effectively implementing these policies within China's complex governmental structure. The centralization of responsibilities could ease local burdens and create tensions between local governments and central agencies, potentially reducing cooperation. Expanding the local tax base could increase revenue, especially in rural areas, but risks provoking instability, as seen in the 1990s when heavy tax burdens led to rural protests. Moreover, growing direct taxes in a weak economy could suppress domestic demand, hindering efforts to boost consumption. The success of these reforms is crucial for addressing China's economic needs, but without effective execution, the desired changes may not be realized.

China will advance high-quality BRI ties with Africa.

According to a new report released Thursday, China will take further steps, including deepening partnerships in emerging fields, such as green development and the digital economy, to promote high-quality Belt and Road cooperation with African countries in the coming years. Officials said the Belt and Road Initiative cooperation has brought mutual benefits and shared prosperity for both sides, injecting fresh impetus into African nations' economic and social development and helping build a stronger China-Africa community with a shared future. They said the two sides will step up efforts to advance cooperation in policy coordination, infrastructure construction, and strengthening of economic and trade ties, hoping to see the BRI's healthy, green, and digital development.

Hainan Airlines has a new Seattle flight.

In a positive sign for air travel between China and the United States, Hainan Airlines has announced the launch of a new route connecting Haikou, South ChiChina'sinan province, and Seattle, starting next month. The once-weekly round-trip flight will begin on September 26th and include a Chongqing stopover in Southwest China. Flight HU445 will depart Haikou every Thursday.

and finally

Network security education boosted by State Grid's Efforts

Staff members from the State Grid Turpan Power Supply Company post network security publicity slogans. On Thursday, State Grid Turpan Power Supply Company in the Xinjiang Uygur autonomous region launched a network security publicity campaign at the Ayding Lake Power Supply Station to teach the public about standard methods of online fraud, the importance of personal information protection, office network security precautions, and more. During the event, staff members were educated on network security knowledge through videos and explanations of laws and regulations, such as The Cybersecurity Law of the People's Republic of China and some company regulations like the Regulations on Network and Information System Security Management.