CHINA COUNTERS STARLINK
Beijing is developing methods to disrupt Starlink, Elon Musk's vast network of low-orbit satellites providing fast, affordable internet globally. Strategies include stealth submarines with lasers, supply-chain sabotage, and attack satellites designed to damage Starlink's batteries or ion thrusters. Chinese military scientists have published dozens of studies on tracking and neutralizing the satellites. "As the U.S. integrates Starlink technology into military space assets to gain a strategic advantage over its adversaries, other countries increasingly perceive Starlink as a security threat in nuclear, space, and cyber domains," wrote scholars from the National University of Defense Technology in a 2023 study. Since 2019, Starlink has grown to cover over 140 countries and now accounts for nearly two-thirds of all active satellites. In response, China launched state-backed China SatNet and the Guowang megaconstellation, which now has 60 of 13,000 planned satellites. Qianfan, another Chinese firm, has launched 90 satellites and is expanding into Asia, Africa, and Latin America. (Associated Press, July 31, 2025)
TAIWAN'S PRESIDENT SCRAPS U.S. STOP
Taiwan's President, Lai Ching-te, canceled planned transit stops in New York and Dallas en route to Latin America, handing Beijing a major diplomatic victory and setting a troubling precedent in U.S.-China relations. Taipei cited "domestic issues," including typhoon recovery efforts and ongoing tariff talks with Washington. An anonymous source revealed that the U.S. "had asked Taipei to rearrange the transit — not go through New York," while another source said Beijing pressured President Trump, citing his "desperation" to meet Xi Jinping. Rep. Raja Krishnamoorthi (D-IL), the top Democrat on the House Select Committee on Strategic Competition with the CCP, called the decision "another example of the Trump Administration caving to China," noting that past U.S. administrations routinely allowed Taiwanese transits. Last November, Lai, elected Taiwan's president in 2024, made his first overseas stops in Hawaii and Guam, where U.S. politicians received him. (MSN, July 28, 2025)
PRC AI FIRMS FORM ALLIANCES TO REDUCE RELIANCE ON FOREIGN TECH
At the three-day World Artificial Intelligence Conference in Shanghai in late July, Chinese AI companies announced two new industry alliances to build a self-reliant tech ecosystem amid U.S. export restrictions on advanced Nvidia chips. The first, the "Model-Chip Ecosystem Innovation Alliance," unites domestic AI chipmakers and large language model (LLM) developers. Zhao Lidong, CEO of Enflame, a participating chipmaker, said, "It is an innovative ecosystem that connects the complete technology chain from chips to models to infrastructure." Members include GPU makers Huawei, Biren, and Moore Threads — all of which are targeted by U.S. sanctions. The second alliance, formed by the Shanghai General Chamber of Commerce AI Committee, aims to "promote the deep integration of AI technology and industrial transformation." It includes LLM developers SenseTime (also sanctioned), StepFun, MiniMax, and chipmakers Metax and Iluvatar CoreX. Both alliances highlight China's push to reduce reliance on foreign AI technology. (CNBC, July 28, 2025)
CHINESE TECH GIANTS UNVEIL NEW ADVANCED AI PRODUCTS
At the World Artificial Intelligence Conference in Shanghai, Chinese tech giants also unveiled a wave of new products, showcasing rapid AI innovation. Huawei introduced its CloudMatrix 384 computing system, featuring 384 latest 910C chips and outperforming Nvidia’s GB200 NVL72 on several metrics. Six other Chinese firms displayed similar chip-clustering technologies. Metax revealed an AI supernode powered by 128 C550 chips designed for liquid-cooled data centers. Baidu launched next-generation "digital human cloning technology," capable of replicating a person's voice, tone, and body language from just 10 minutes of footage. Tencent presented its open-source Hunyuan3D World Model 1.0, which enables users to generate interactive 3D environments from text or image prompts. Alibaba debuted Quark AI Glasses, powered by its Qwen AI model, offering voice-controlled navigation, digital payments, and QR code scanning. (Reuters, July 29, 2025)
CHINA LAUNCHES $1 BILLION INVESTMENT FUND FOR SOUTHEAST ASIA
The China International Capital Corp (CICC) and China Galaxy Securities, both state-backed investment banks, are launching a $1 billion investment fund targeting Southeast Asia, signaling a strategic shift from their traditional domestic focus. The move supports Beijing's goal of boosting outbound investment and strengthening regional economic ties amid ongoing U.S. tariffs. Units of CICC and China Galaxy plan to launch the funds within 18 months. "As the tariff wars continue and Chinese corporates accelerate their 'China plus N' strategy, they seek local expertise in Southeast Asia," said Carol Fong, CEO of CGS International. CGS aims to establish a $1 billion private equity fund in 2025 to invest in high-growth sectors like healthcare, AI, renewable energy, and consumer goods. Meanwhile, CICC Capital collaborates with Malaysia's Digital Economy Corp on a $100 million gaming sector fund. China remains Southeast Asia's largest trading partner, with $982 billion in two-way trade in 2024. (Reuters, July 31, 2025)
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