CHINA CANCELS EU MEETINGS AS TRADE TENSIONS MOUNT
Beijing cancelled key meetings with European Union officials ahead of a Brussels summit. The cancellations preceded a G7 summit in France and an EU summit earlier this month focused on cutting Europe's trade deficit with China. Chinese exports to the EU grew 16.4% in the first quarter of 2026 compared with last year, with its 2025 trade surplus reaching €360 billion ($415 billion). The European Commission plans to introduce measures to curb Chinese industrial dominance, including an "overcapacity instrument," anti-dumping investigations, and emergency tariffs. Even historically resistant Germany, which is losing 120,000 manufacturing jobs annually, has begun shifting toward Brussels' position. Without mentioning China by name, German chancellor Friedrich Merz said he was open to expanding the policy "toolkit" needed to ensure "fair competition." (The Times, June 11, 2026)
PLANS FOR A $295 BILLION NATIONWIDE AI BUILDOUT
The National Development and Reform Commission (NDRC) is launching a 2 trillion yuan ($295 billion) five-year initiative to build out a nationwide network of interconnected computing hubs and data centers. Part of China's latest five-year plan, the blueprint aims to integrate AI across the economy and secure dominance in emerging technologies, including quantum computing and humanoid robots. The strategy mandates relying on domestic suppliers like Huawei for at least 80% of hardware, including AI chips, and China Mobile and China Telecom, which will operate and connect the infrastructure. By comparison, U.S. companies project to spend more than $700 billion in AI infrastructure this year. (Reuters, June 9, 2026)
PRC INFLUENCE CAMPAIGN TARGETS U.S. AI DATA CENTERS – OPENAI
Artificial intelligence firm OpenAI has disrupted an online influence operation using ChatGPT to advance narratives that sway U.S. perceptions of investments in AI infrastructure. Chinese operatives used the AI chatbot to generate social media content in English on two different topics, then posted the text and images posing as Americans. The first type advanced claims that building data centers will increase household electricity costs, the second criticized U.S. tariffs as an attempt to dominate technology competition. Operatives used Chinese prompts to instruct the chatbot to omit Xi Jinping and focus on Donald Trump. The campaigns gained little authentic engagement but reveal the intent and narrative usage, according to OpenAI investigator Ben Nimmo. "There's a reason that you're seeing this incredible campaign of misinformation and all these things about data centers. It's because the Chinese are behind a lot of it," said Senator Dave McCormick (R-PA). (Politico, June 10, 2026)
FBI SEIZES WEBSITES USED BY CHINESE AGENTS TO RECRUIT U.S. OFFICIALS
The FBI closed over a dozen websites used by Chinese agents to recruit current and former U.S. officials with security clearances. Operating as fake consulting fronts, the sites advertised roles like "Defense Analyst" to acquire sensitive information and paid them via cryptocurrency and foreign banks. Recruiters commissioned papers on U.S.-China relations and the Israel-Iran conflict, demanding insider information. According to court affidavits, the network targeted individuals on LinkedIn and Upwork, focusing on users marked "open to work." To build credibility, the conspirators copied data from real foreign firms, though one scam site included testimonials taken from Will Ferrell's character Ron Burgundy in the movie Anchorman. It is unclear if any classified material was compromised. One foreign intelligence officer directed an asset to create a company profile on Linkedin and post a job advertisement, and to actively pursue federal employees who indicate they are "open to work." (CNN, June 10, 2026)
U.S. SCHOLAR ARRESTED IN KUNMING FOR SPYING
On June 3rd, Chinese security officials detained U.S. citizen U Min Zin in Kunming, Yunnan, on suspicion of "engaging in espionage activities that endanger China's national security." Min Zin is a political science PhD student at the University of California, Berkeley, where he is studying China's role in Myanmar. His research group, founded in Yangon and known as the Institute for Strategy and Policy Myanmar, is "dedicated to promoting democratic leadership and strengthening civic participation in Myanmar." Min Zin was scheduled to speak at a forum in Nepal this month. China has used "exit bans" related to commercial or financial disputes to detain and imprison approximately 200 U.S. citizens. (New York Times, June 11, 2026)