China Month in Review: China’s $495 Billion R&D Boom: Are They Outpacing the U.S.?

As China expands its influence in technology, trade, and cybersecurity, tensions with Taiwan and global powers continue to escalate. Taiwan has seen an unprecedented surge in cyber-attacks, averaging 2.4 million daily incidents, with Chinese state-sponsored hackers targeting critical infrastructure. A severed submarine cable near Keelung Harbor further raises concerns about China’s covert tactics to disrupt Taiwan’s communications, reinforcing fears of an impending digital Cold War.

Meanwhile, China continues to dominate AI and technology, with its R&D spending surpassing $495 billion in 2024. At CES 2025, Chinese tech giants like TCL and Hisense unveiled groundbreaking AI-driven innovations in smart home ecosystems. Additionally, China has expanded its global trade network with 23 new Free Trade Agreements, deepening its economic ties worldwide and solidifying its influence through the Regional Comprehensive Economic Partnership (RCEP).

As the U.S. government debates banning TikTok, users have begun migrating to China’s RedNote (Xiaohongshu), signaling a global shift in social media influence. The platform, which has topped U.S. app store downloads, is becoming a hub for cultural exchange despite concerns about data privacy and content moderation.

This evolving landscape underscores China’s growing global power across multiple domains—from AI-driven consumer technology to economic expansion and cyber warfare—placing the world at a crossroads between innovation and heightened geopolitical conflict.

Chinese Cyber-Attacks on Taiwan Surge Amid Rising Tensions

Taiwan's government networks experienced a dramatic rise in cyber-attacks in 2024, averaging 2.4 million incidents per day—double the rate of 2023. The National Security Bureau attributes most of these attacks to Chinese state-sponsored hackers focusing on critical infrastructure, including telecom, defense, and transportation systems.


The attacks reflect increasing geopolitical tensions, with China escalating efforts to disrupt Taiwan's digital infrastructure. Taiwanese officials have reinforced cybersecurity protocols and urged international cooperation to counter the growing cyber threat, citing the need to protect sensitive national assets from ongoing espionage.

This surge highlights the evolving landscape of cyber warfare and digital conflict's strategic role in cross-strait relations. Experts warn that the frequency and sophistication of these attacks will likely continue to grow in the coming years, demanding heightened vigilance.

Infosecurity Magazine. (2025, January 5). Chinese hackers double cyber-attacks on Taiwan. https://www.infosecurity-magazine.com/news/chinese-hackers-attacks-taiwan/

#CyberSecurity #Taiwan #China #CyberAttacks #Espionage

Chinese Tech Giants Unveil AI Innovations at CES 2025

At CES 2025 in Las Vegas, leading Chinese brands such as TCL and Hisense showcased groundbreaking AI-powered technologies to enhance home entertainment and smart living. TCL presented its QD-Mini LED technology, co-developed with Google, designed to elevate user experience across cinema, sports, and gaming. Hisense revealed its TriChroma Laser TV and a massive 136-inch MicroLED display, underscoring the role of AI in creating intuitive and seamless innovative environments.

These companies emphasized partnerships with major tech firms like Microsoft, Amazon Web Services, and Google to ensure secure and ethical AI deployment. The advancements reflect China's expanding footprint in the consumer electronics sector, reinforcing its competitive edge in global markets.

The innovations showcased at CES 2025 highlight the ongoing evolution of AI in everyday technology, signaling a shift towards more integrated and adaptive smart home ecosystems.

China News Service. (2025, January 8). Chinese brands showcase AI tech at CES 2025. ECNS. https://www.ecns.cn/business/2025-01-08/detail-ihemrznk1744759.shtml

#CES2025 #AI #TCL #Hisense #SmartHome #Technology

China Expands Global Trade Network with New Free Trade Agreements

According to the Ministry of Commerce (MOFCOM), China has significantly broadened its global trade network by signing 23 Free Trade Agreements (FTAs) with 30 countries across five continents. These agreements aim to enhance trade liberalization and economic cooperation and feature comprehensive provisions that include negative lists for services and investment and clauses addressing the digital economy. 


Notably, the China-Maldives FTA, which took effect on January 1, 2025, eliminates tariffs on over 95% of goods traded between the two nations. This development is expected to boost Chinese exports such as ships, electronics, and agricultural products while granting Maldivian products like fish, seafood, nuts, and wooden ornaments preferential access to the Chinese market. Additionally, both countries have agreed to open their service sectors further and provide national treatment in investment, ensuring adequate protection for bilateral investments. 

Furthermore, the upgraded protocol of the China-Singapore FTA became effective on December 31, 2024. This protocol adopts a negative list approach for high-level commitments in services and investment, further opening manufacturing markets and reducing restrictions in service sectors. It aligns with high-standard international trade rules in services, investment, and telecommunications while fostering cooperation in emerging fields like the digital economy. Implementing this protocol will deepen China and Singapore's forward-looking, high-quality partnership. 

These strategic moves underscore China's commitment to expanding its high-standard FTA network globally, focusing on effectively implementing existing agreements to deliver more significant benefits to its citizens and FTA partners. The Regional Comprehensive Economic Partnership (RCEP), the world's largest FTA, has significantly expanded its influence over the past three years, deepening trade ties and driving Asia-Pacific integration. Since its inception, trade with RCEP members has consistently accounted for over 30% of China's total trade, reaching 12.7 trillion yuan ($1.74 trillion) in 2023, representing a 6.3% increase compared with 2021. From January to November 2024, this figure reached 12 trillion yuan, up 4.4% year-on-year. 

China News Service. (2025, January 10). China has signed 23 FTAs with partners on five continents. ECNS. https://www.ecns.cn/news/economy/2025-01-10/detail-ihemrznk1747724.shtml

#ChinaTrade #FTA #GlobalEconomy #RCEP #EconomicCooperation

TikTok Users Migrate to RedNote Amid Potential U.S. Ban

As a potential U.S. ban on TikTok looms, over half a million American users have begun migrating to RedNote, known in China as Xiaohongshu. This app, often compared to Instagram, has recently topped the U.S. app store download charts. In live chats dubbed "TikTok Refugees," American and Chinese users engage in cultural exchanges on various topics. However, discussions occasionally touch on sensitive subjects, highlighting the challenges of moderating content across diverse user bases.


RedNote's surge in popularity underscores the shifting dynamics of social media. As users seek alternatives amid geopolitical tensions, they migrate, reflecting broader concerns over data privacy and political influence on digital platforms.

The Guardian. (2025, January 14). TikTok users migrate to RedNote as U.S. ban looms. https://www.theguardian.com/technology/2025/jan/14/tiktok-ban-rednote-app

#TikTokBan #RedNote #Xiaohongshu #SocialMediaMigration #Geopolitics

Another Severed Submarine Cable Raises Alarm in Taiwan

On January 3, 2025, a submarine communication cable near Keelung Harbor, Taiwan, was severed, raising significant concerns about potential Chinese interference in Taiwan's telecommunications infrastructure. The incident involved the Cameroon-flagged cargo vessel Shunxin-39, suspected of deliberately dragging its anchor in a crisscross pattern to damage the cable. Investigations revealed that the ship is owned by Jie Yang Trading Limited, a Hong Kong-based company, with a crew comprising seven Chinese nationals. The vessel lacked proper registration with the International Maritime Organization and appeared to operate under dual identities, using two sets of Automatic Identification System equipment.


This event has heightened Taiwan's vigilance regarding "China's gray zone" tactics,  which involve ambiguous actions that stop short of open conflict but aim to destabilize and exert pressure. In response, Taiwan's Coast Guard Administration has intensified monitoring vessels operating under flags of convenience and is enhancing coordination with international allies to safeguard its undersea communication infrastructure. The incident underscores the strategic importance of submarine cables and the necessity for robust maritime security measures to protect critical communication networks.

Hioe, B. (2025, January 16). Another Severed Submarine Cable Raises Alarm in Taiwan. The Diplomat. https://thediplomat.com/2025/01/another-severed-submarine-cable-raises-alarm-in-taiwan/

#Taiwan #SubmarineCable #CyberSecurity #China #MaritimeSecurity

China's R&D Expenditure Surpasses $495 Billion in 2024

China's R&D investment exceeded 3.6 trillion yuan ($494.69 billion) in 2024, up 8.3 percent from the previous year. This growth confirms China's status as the world's second-largest R&D investor.

Factors contributing to this rise include:
  • Policy support for scientific and technological innovations.
  • A diverse investment system enhances funding options.
  • Increased corporate involvement in innovation.

China's R&D intensity reached 2.68% of GDP in 2024, a 0.10 percentage point increase, surpassing the growth seen in the 13th Five-Year Plan.

Globally, China ranks 12th in R&D intensity, above the EU's 2.11% and close to the OECD's 2.73%. Basic research funding grew by 10.5% to 249.7 billion yuan, leading to advancements in quantum science, life sciences, materials, and space.

Future plans involve integrating tech and industrial innovations, boosting R&D efficiency, and aiming for technological self-reliance.

Global Times. (2025, January 23). China's expenditure on R&D exceeds $495 billion in 2024. ECNS. https://www.ecns.cn/news/economy/2025-01-23/detail-ihenanqr9095848.shtml

#China #ResearchAndDevelopment #Innovation #ScienceAndTechnology #EconomicGrowth

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