China Policy Monitor No. 1653

Related Categories: International Economics and Trade; AI; China; Germany; United States

BEIJING'S AI-DRIVEN HACKING CAMPAIGN
Beijing has begun harnessing artificial intelligence to direct its hacking campaigns, researchers with AI company Anthropic have detailed. "While we predicted these capabilities would continue to evolve, what has stood out to us is how quickly they have done so at scale," the researchers wrote in a recent analysis. The operation in question targeted "roughly thirty global targets," including tech companies, financial institutions, chemical companies and government agencies. Anthropic detected the operation in September, shut it down, and notified the affected parties. "Instead of a human with well-honed skills attempting to hack into hardened systems, AI is speeding those processes and more consistently getting past obstacles," said Adam Arellano at tech company Harness. (Associated Press, November 14, 2025)

TRUMP-XI MEETING SPURS AGRICULTURAL DEALS
Chinese supply chain operator and property developer Xiamen C&D has signed more than $5.2 billion in contracts with seven agribusinesses, including Cargill, a U.S. firm, and agricultural commodity merchant Louis Dreyfus Company. The contracts, which cover soybeans, corn and cotton, among other goods, follow the meeting between Presidents Trump and Xi in South Korea, as a result of which Beijing lifted tariffs on some U.S. farm goods – although a 10% tariff on U.S. imports remains in effect. Xiamen C&D's deal with Cargill is for animal feed and food processing; the one with Louis Dreyfus Company will support its global agricultural supply network. (Reuters, November 6, 2025)

CHINA TRADE SURPLUS WITH GERMANY HITS NEW HIGH
This year, China has a projected record trade surplus of 87 billion euros ($101.46 billion) with Germany, surpassing the previous record, set in 2022, of 84 billion euros. "This is an imbalance, and it's certainly not in our interest," notes Christina Otte of the economic promotion agency Germany Trade & Invest. Germany wants to diversify its supply chains to reduce its reliance on China for critical products such as chips and rare earths and its exposure to shipping and other logistics disruptions, Otte said. There is weakening Chinese demand for German exports, which fell 11% this year. Meanwhile, Germany is importing more Chinese goods. Between January and September, Chinese exports to the U.S. fell 17% while German purchases rose 11%. (U.S. News, November 4, 2025)

CHINA IS A "VERY SIGNIFICANT" CHALLENGE TO GERMAN CAR COMPANIES
"China constitutes a very significant challenge, all of us can agree on that. We must also see that Chinese manufacturers are arriving in Europe. That is a fact," said BMW's Hungarian Chairman and Chief Executive, Hans-Peter Kemser. Michael Breme, Chief Executive of Audi's Hungarian unit, said western manufacturers had lost market share in China and local brands now account for two-thirds of the market there. "The Chinese market is simply too important to give up on. We need to find new strategies in the local markets," Breme said. Mercedes-Benz is designing new models for Chinese buyers in hopes of preserving its market share. (MSN, November 5, 2025)

VISA-FREE POLICY EXTENDED THROUGH 2026, SWEDEN ADDED
China has extended its visa-free entry policy for 45 countries through 2026 and added Sweden to the list. The extension covers 32 European countries, including France, Germany, Spain, Australia, New Zealand, Japan, South Korea, and several nations in South America and the Gulf region. Visitors from eligible countries – which do not include the U.S., UK, Canada, or Czechia – can enter China for business, tourism, family visits, or transit for up to 30 days without a visa. The visa-free entry program is part of Beijing's effort to woo foreigners back after strict COVID-19 controls led many to leave. (Xinhua, November 3, 2025)