July 10, 2026

China Watch

Trump Must Resist CCP’s Attempts to Sabotage US’s Panama Deal– thefederalist.com
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In March, the American financial powerhouse BlackRock announced that a group of investors it led had reached a deal with Hong Kong-based CK Hutchison Holdings to secure U.S. control over two strategically located ports operated by Hutchison at the Panama Canal. In response, China has been attempting to undermine this agreement. Beijing’s latest stance is to withhold its approval unless a Chinese state-owned enterprise is included as a partner in the deal.

The Panama Canal is a crucial gateway between the Atlantic and Pacific Oceans and is vital to the economic and strategic interests of the United States. Approximately 70 percent of the goods that pass through the canal either originate from or are destined for U.S. markets, making the U.S. the largest user of the canal.

China views the Panama Canal as a strategic asset for expanding its economic and geopolitical influence in Latin America. In recent years, Beijing has significantly increased its investments in Panama through its “One Belt, One Road” global infrastructure initiative, making it the second-largest user of the canal. This growing presence has raised national security concerns in the United States. Sen. Ted Cruz has pointed out that the two ports operated by CK Hutchison Holdings could serve as “ready observation posts” for China to monitor U.S. military and commercial activities passing through the canal.

In the event of military conflict between the U.S. and China, such as a dispute over Taiwan, there are fears th

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China is developing a powerful new weapon that could transform long-range warfare. Using a radical design capable of extreme speeds and distances, this technology could outmatch traditional missiles and defenses.

China’s military scientists have unveiled a new electromagnetic railgun concept that could dramatically alter the balance of long-range weaponry. Detailed in a paper from the People’s Liberation Army’s (PLA) Army Engineering University and reported by multiple outlets, including the South China Morning Post and Asia Times, the system is designed to fire heavy projectiles at speeds reaching Mach 7. If proven viable, the weapon could deliver devastating firepower at far lower costs than conventional missile systems.

A New Design Tackling Old Railgun Problems

Railguns use electromagnetic force instead of gunpowder or explosives to propel a projectile at extreme speeds. While the technology has been explored for decades by major powers, including the U.S., Japan, and China, progress has been slowed by persistent engineering challenges.

China’s latest design addresses those obstacles with an unconventional x-shaped configuration. The concept, described by lead researcher Professor Lyu Qingao, stacks two railguns inside a single barrel at right angles, each with its own power circuit. This dual-circuit setup allows the two sets of electromagnetic fields to work independently without interfering with one another.

According to the team’s estimates, the system could fire a 60-kilogram projectile more than 400 kilometers in under six minutes, with impact speeds exceeding Mach 4. Previous Chinese naval prototypes, first seen on the ship Haiyangshan in 2018, were limited to firing 15-kilogram projectiles because of the destructive effects of extreme currents on the weapon’s rails.

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Over the past two decades, the posture of the United States towards China has evolved from economic cooperation to outright antagonism. US media outlets and politicians have engaged in persistent anti-China rhetoric, while the US government has imposed trade restrictions and sanctions on China and pursued military build-up close to Chinese territory. Washington wants people to believe that China poses a threat.

China’s rise indeed threatens US interests, but not in the way the US political elite seeks to frame it.

The US relationship with China needs to be understood in the context of the capitalist world system. Capital accumulation in the core states, often glossed as the “Global North”, depends on cheap labour and cheap resources from the periphery and semi-periphery, the so-called “Global South”.

This arrangement is crucial to ensuring high profits for the multinational firms that dominate global supply chains. The systematic price disparity between the core and periphery also enables the core to achieve a large net-appropriation of value from the periphery through unequal exchange in international trade.

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China and Russia began joint naval drills in the Sea of Japan on Sunday as they seek to reinforce their partnership and counterbalance what they see as a U.S.-led global order.

Alongside economic and political ties, Moscow and Beijing have strengthened their military cooperation in recent years, and their relations have deepened since Russia invaded Ukraine in February 2022.

The “Joint Sea-2025” exercises kicked off in waters near the Russian port of Vladivostok and would last for three days, China’s Defense Ministry said in a statement on Sunday.

The two sides will hold “submarine rescue, joint anti-submarine, air defense and anti-missile operations, and maritime combat.”

Four Chinese vessels, including guided-missile destroyers Shaoxing and Urumqi, are participating in the exercises alongside Russian ships, the ministry said.

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China’s growing engagement in the Middle East—heightened by the recent escalation of conflict in Gaza—has drawn significant global attention and speculation. Traditionally, Beijing’s regional strategy has focused on securing long-term economic and energy interests: ensuring access to vital energy resources, safeguarding major international trade corridors, and investing extensively in infrastructure, technology, and energy sectors, particularly in the Persian Gulf.
Yet, despite these strategic imperatives, China continues to pursue a deliberately ambivalent and multidimensional approach toward key regional actors, most notably Iran and Israel. This carefully calibrated posture reflects broader geopolitical shifts, the erosion of US hegemony, and, above all, the mounting instability across the Middle East—developments that increasingly threaten both regional equilibrium and China’s own economic security.

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 In a significant development in the Indo-Pacific and and a matter of concern for India, US and East Asian Countries, China has intensified its maritime military capabilities by deploying its largest and most advanced aircraft carrier, Fujian, into the sea. As per media reports, the Fujian aircraft carrier is not only China’s most advanced but also its first fully domestically designed flat-deck supercarrier equipped with electromagnetic catapults. Here are all the details you need to know about the Fujian advanced aircraft carrier.

China’s Fujian aircraft carrier: Why India should be cautious?

Reportedly similar to the US Navy’s Gerald R. Ford-class, the deployment of the aircraft carrier marks a significant step in Beijing’s naval modernization and signals its growing strategic ambitions from the Taiwan Strait to the Indian Ocean.

Why China’s Fujian aircraft carrier is dangerous?

As per media reports, the Fujian aircraft carrier was first deployed for sea trials in May 2024 and is expected to join service by the end of 2025. More importantly, the aircraft carrier has been equipped with an electromagnetic catapult system (EMALS), making China the only country in the world after US to use an electromagnetic catapult system (EMALS) to land fighter jets on a carrier.

 

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In the race for artificial intelligence supremacy, China’s government is doubling down on practical applications to accelerate adoption across industries. Unlike the U.S., which emphasizes foundational model development, Beijing is channeling resources into deploying AI in everyday operations, from factory assembly lines to urban management systems. This strategy, highlighted in a recent report by The Washington Post, aims to embed the technology deeply into the economy, fostering rapid innovation and challenging American dominance.

Recent policy moves underscore this commitment. Just days ago, on July 26, 2025, China unveiled its Action Plan for Global AI Governance, building on President Xi Jinping’s earlier initiatives. As detailed in coverage from ANSI, the plan outlines a 13-point roadmap targeting over 300 exaflops of computing power by year’s end, emphasizing green AI and international collaboration under UN frameworks.

Government Funding and Infrastructure Boost

To fuel this ambition, Beijing has allocated massive financial support. A new AI Industry Development Action Plan, backed by the China Banking and Insurance Regulatory Commission, pledges 1 trillion yuan—roughly $137 billion—over five years, according to posts circulating on X from industry analysts. This funding is set to bolster state-owned enterprises and startups alike, focusing on scalable applications rather than theoretical advancements.

Infrastructure is another cornerstone. China aims to increase its computing capacity from 230 exaflops to 300 exaflops by 2025, as noted in reports from WebProNews. This push includes expanding data centers and promoting open-source models, enabling widespread adoption in sectors like manufacturing, where AI optimizes supply chains and predictive maintenance.

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hinese researchers have reportedly developed a new electronic warfare (EW) system that can simultaneously interfere with enemy systems while keeping friendly ones untouched in a ‘null zone’. Likened to the eye of a storm, this new technology represents a significant shift in conventional EW systems.

To help conceptualize how it works, think of a storm. Everything inside it is disrupted by intense electromagnetic noise. But the center of a hurricane, colloquially called ‘the eye’, is completely calm. The new technology intentionally creates the ‘eye’ for friendly forces, even in the middle of aggressive electronic warfare.

The innovation reportedly works on coordinated drones (unmanned aerial vehicles) acting as precise jamming sources. These drones emit carefully crafted radio signals that can be adjusted for waveform, amplitude, phase, and timing (all controllable radio frequency signal parameters).

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Based on current trends, China will become a quantitative and qualitative nuclear weapons peer of the United States by the early to mid-2030s with a diversified, accurate, and survivable force that will rival America’s. Rather than having only high-yield nuclear missiles as a strategic deterrent against nuclear attack, the People’s Liberation Army (PLA) is developing a range of strategic and tactical nuclear weapons, the latter being lower-yield weapons usable in a conflict theater.

Why is China seemingly going beyond its long-standing nuclear weapons approach of maintaining only a minimal deterrent or assured retaliation? Why has it chosen to rapidly develop its nuclear arsenal and related delivery system in a deliberately opaque manner?

This report argues that Xi Jinping and the Chinese Communist Party (CCP) decided to embark on such a rapid nuclear modernization not primarily because China wants to “win” a nuclear exchange against the US. Rather, Beijing wants to create political and psychological effects that lead to enormously important strategic and military effects.

As the report explains, the CCP and PLA are using the rapid development of nuclear capability and related delivery systems to subdue the adversary and win without fighting. The following are components of achieving this:

  • Degrade the adversary’s decision-making.
  • Weaken the adversary’s will to fight.
  • Undermine the adversary’s public support for war.
  • Undermine the resolve of the adversary’s government from within.
  • Support and enhance deterrence.

China Is Increasingly Holding U.S. Citizens Hostage Indefinitely– thefederalist.com
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China imposed exit bans on two U.S. citizens: a senior executive of U.S.-based Wells Fargo Bank and a federal employee of the U.S. Commerce Department. These incidents underscore the significant risks of conducting business or traveling in China.

Very little personal information is public regarding the federal employee affected by the exit ban, likely due to his affiliation with the U.S. government and concerns for his safety. According to the South China Morning Post, he is a naturalized U.S. citizen who originally came from China and is a veteran of the U.S. Army. He traveled to China in April to visit family but has been unable to leave since then. The reason for the exit ban is unclear, but The Washington Post suggests it may be related to his alleged failure to disclose his U.S. government employment on his visa application to Chinese authorities.

In contrast, more information exists about the Wells Fargo executive affected by the exit ban. Her name is Chenyue Mao, a naturalized U.S. citizen originally from China, and a managing director in Wells Fargo’s Atlanta division. Mao is reportedly an expert in factoring, a process in which exporters in one country “sell unpaid invoices to third parties, who then collect payments later from importers in another country.” Mao has previously collaborated with Chinese companies in trade financing and factoring.

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Less than a day after the Trump administration announced its ambitious plan to lead the world in the AI industry, news broke that China has accessed high-tech AI chips on the black market despite U.S. industry protections, threatening America’s competitive advantage in the cutthroat industry.

The Financial Times reported on Thursday that China has been selling and receiving cutting-edge AI chips on the black market despite Trump’s export controls and tariffs to curb Chinese access to leading technologies.

‘Trying to cobble together data centers from smuggled products is a losing proposition, both technically and economically.’

The report went on to say that more than $1 billion worth of NVIDIA B200 chips has been sold on the black market in China. Lawyers familiar with the trade rules told FT that while it is legal to sell and receive restricted chips within China, on the condition that the proper tariffs are paid, entities selling and sending them to China would be violating U.S. regulations.

The report indicated that NVIDIA was not aware of these illegal sales by third parties.

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During a June 17 speech at the Center for Strategic and International Studies in Washington, U.S. Pacific Fleet commander Adm. Steve Koehler declared that despite an ongoing campaign of intimidation against its smaller neighbors in the South China Sea, “China’s pressure is not working well. It has failed to intimidate Southeast Asian claimants and make them surrender their sovereign rights.”

Koehler detailed examples of Chinese harassment and violence over the last year against Indonesia, Malaysia, Vietnam, and especially the Philippines, but noted that in each case, the Southeast Asian states have refused to back down. The admiral echoed this assessment the following month in a speech in Manila on the anniversary of the Philippines’ 2016 arbitral victory in The Hague, which ruled most of Beijing’s maritime claims in the South China Sea illegal.

That China is faltering might surprise casual observers of the South China Sea disputes, but it matches the available evidence. China’s efforts to establish control over the sea have plateaued over the last four years. That came after nearly a decade of steady gains. The strategy that won Beijing control over much of the body of water, despite the illegality of its claims, was centered on a campaign of intimidation and non-lethal force, often dubbed “gray zone” coercion. That campaign is no longer working but the Xi Jinping regime is unwilling, and likely unable, to accept that reality and seek compromise with its Southeast Asian neighbors. The result is a dangerous cycle of brinksmanship, but one that is not delivering results for Beijing. To help Southeast Asian partners, especially the Philippines, remain resilient and deter Beijing from military escalation, the United States should follow through with plans to strengthen force posture and support the military modernization of partners in the region.

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In brief: There’s a strange situation occurring in China: despite Nvidia’s high-end AI chips being restricted from export to the country, businesses that repair these GPUs are experiencing a boom in demand. One company now handles up to 500 AI chip repairs every month.

The US has restricted the export of Nvidia’s most powerful AI chips to China since 2022 over fears that they could be used for military purposes.

Although these chips aren’t officially available in the Asian nation, a booming repair business has emerged. Reuters reports that one firm in the country, which began fixing gaming GPUs 15 years ago and started including AI chips in 2024, created a new company to handle all accelerator-related customer repairs, which now account for 500 repairs per month.

The company has been advertising its extensive facilities on social media. It even boasts a room that can pack 256 servers to simulate customers’ data center environments.

It’s a lucrative business, with the firm charging between 10,000 yuan and 20,000 yuan ($1,400 to $2,800) to fix one of these GPUs depending on the complexity of the repair.

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As Taiwan concluded its largest-ever Han Kuang military exercise, annual war games designed to test the island’s ability to repel a Chinese invasion, China simultaneously launched a series of back-to-back drills, overtly simulating an attack and applying strategic pressure. The People’s Liberation Army (PLA) Eastern Theatre Command issued daily updates detailing synchronized maneuvers designed to mirror and counter Taiwan’s activities.

The 2025 Han Kuang exercise, held from July 9 to 18, was the longest and most comprehensive iteration since its inception in 1984. It marked a significant shift toward whole-of-society defense, emphasizing joint combat operations and responses to “grey zone” threats. The drills featured over 22,000 reservists and incorporated both domestically developed and U.S.-supplied weapons, including Sky Sword II missiles, Abrams M1A2T tanks, and HIMARS rocket systems. For the first time, Han Kuang was paired with the Urban Resilience Exercises, a multi-month campaign held from April through July to test Taiwan’s ability to withstand a prolonged conflict through full societal participation.

The computer-aided phase of the drill was extended from 8 to 14 days, while the live-fire segment doubled from 5 to 10. Key focus areas included electronic warfare, rapid mobilization, integrated air and missile defense, maritime security, and ground operations. The traditionally scripted exercises were replaced with 24/7 unscripted scenarios simulating combat in urban areas, civil-military coordination, and mass evacuation drills in real-world locations such as hypermarkets.

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Last month, the Department of Justice charged two Chinese nationals for smuggling a scientifically classified potential agroterrorism fungus into the United States. They were allegedly receiving funding from China to research the pathogen for potential future attacks, highlighting the dangers China could pose to the U.S. food supply in the future at a time it has already effectively infiltrated American agriculture through land acquisition.

China’s acquisition of U.S. land is a well-documented national security threat, especially as it continues to purchase land in suspicious proximity to U.S. military bases. This strategic investment by China has rapidly developed, with China only owning approximately 13,720 acres in 2010 growing to the 277,336 acres it owned as of Dec. 2023.

Despite the number of acres reported in the U.S. Department of Agriculture’s Agricultural Foreign Investment Disclosure Act Dec. 2023 report, this data “should be interpreted as a minimum.” The data disclosed to the USDA is collected through voluntary reporting. This creates gaps in the database, with 3.1 million acres unaccounted for. Additionally, there is a caveat in the reporting, as entities can list “no predominant country” in their filing. Roughly 2.3 million acres account for no foreign investor and no predominant country listed. The number of Chinese-controlled acreage is highly likely to be far larger than reported.

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HONG KONG — A Hong Kong judge on Wednesday ruled to strike down regulations criminalizing the use of bathrooms designated for the opposite sex, ruling in favor of transgender individuals’ rights to access public toilets matching their identity.

Judge Russell Coleman approved the judicial review of K, who was born a woman and identifies as a man, saying the regulations contravene an article of the city’s mini-constitution that stipulates all residents should be equal before the law.

But he suspended the declaration to strike down the regulations for a year to allow the government “to consider whether it wishes to implement a way to deal with the contravention.”

He said in the judgement that the regulations and “drawing the line of a person’s biological sex at birth create a disproportionate and unnecessary intrusion into the privacy and equality rights.”

The ruling marks another step forward in recognizing the rights of LGBTQ+ people in the Chinese financial hub. In recent years, the government has revised policies following activists’ wins in legal challenges.

Wyoming’s New Rare-Earth Mine Could End China’s Monopoly – Daily Signal

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The first new U.S. rare-earth mine in 70 years broke ground this month in Wyoming.

Ramaco Brook Mine, which contains 1.7 million tons of rare earth minerals, is a “groundbreaking discovery” that “marks a turning point for America,” the Department of Energy announced.

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UNESCO, the  United Nations Educational, Scientific and Cultural Organization, is an international organization that runs under the auspices of the United Nations. UNESCO’s charter is to promote “… cooperation in education, science, culture and communication to foster peace worldwide.” Among other things, UNESCO administers World Heritage sites. But in recent years, UNESCO has also been accused of slanted, pro-China, pro-Palestine stances, among other woke priorities.

On Tuesday, the New York Post broke the story that President Trump is withdrawing the United States from UNESCO due to these priorities. Under President Biden, the U.S. rejoined UNESCO in 2021, after President Reagan withdrew the U.S. from the organization in 1983.

Now we’re to be out again.

President Trump is pulling the US out of the United Nations Educational, Scientific and Cultural Organization (UNESCO), citing its anti-America and anti-Israel leanings as well as its woke agenda, The Post has learned.

Trump ordered a 90-day review of America’s presence in UNESCO back in February, with special emphasis on probing any “anti-Semitism or anti-Israel sentiment within the organization.”

Upon conducting the review, administration officials took issue with UNESCO’s diversity, equity, and inclusion policies as well as its pro-Palestinian and pro-China bias, a White House official told The Post.

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Treasury Secretary Scott Bessent on Tuesday said he is likely to hash out an extension of President Donald Trump‘s upcoming trade deadline with China when he meets with his Chinese counterparts in Stockholm, Sweden, next week.

The two sides in mid-May agreed to a 90-day suspension of most of the heavy tariffs on each others’ goods while they continued trade negotiations. That suspension is set to expire on Aug. 12.

But “we’ll be working out what is likely an extension” during talks in Stockholm on Monday and Tuesday, Bessent said in a Fox Business interview.

“I think trade is in a very good place with China,” he said.

Swedish Prime Minister Ulf Kristersson later Tuesday morning confirmed that his country would host the latest round of talks between Washington and Beijing.

“It is positive that both countries wish to meet in Sweden to seek mutual understanding,” Kristersson said on X in a translated post.

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BEIJING — The head of Nvidia downplayed his role in getting the U.S. government to lift a ban on selling an advanced computer chip in China and said it will take time to ramp up production once orders for the AI-processor come in.

CEO Jensen Huang, speaking Wednesday in the Chinese capital Beijing, was upbeat about the prospects for the H20 chip, which was designed to meet U.S. restrictions on technology exports to China but nonetheless blocked in April.

He met U.S. President Donald Trump before his trip and his company announced this week it had received assurances that sales to China would be approved.

“I don’t think I changed his mind,” Huang told a cluster of journalists, many of whom asked for his autograph or to take selfies with him.

A carefully organized press conference at a luxury hotel descended into a crowd scene when Huang arrived in his trademark leather jacket and started taking questions randomly in his characteristic casual style.

Export controls and tariffs were something companies must adapt to in a world he said was reconfiguring itself. He described his role as informing governments in the U.S. and elsewhere of the nature and unintended consequences of their policies.

The decision to lift the ban on the H20 chip was entirely in the hands of the American and Chinese governments and whatever trade talks they had, he said.

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This should have been done long ago.

Sens. Rick Scott of Florida, Tom Cotton of Arkansas, Kevin Cramer of North Dakota and Katie Britt of Alabama introduced the “Not One More Inch or Acre Act.” It would give Mr. Trump clear authority to prohibit all future land purchases by the CCP and force the divestment of already owned property in cases of national security protection. “Communist China has chosen to be our enemy and seeks to destroy us and our way of life every chance they get,” Mr. Scott said in a statement. “It’s alarming that CCP-linked entities have been quietly buying up U.S. farmland, often strategically located close to our military bases. That’s not a coincidence. It’s a threat to our national security” (Washington Times). Gordon Chang: Pass a law requiring Chinese nationals to divest ownership of farm and ranch land as well as any real property interest within, say, 10 miles of any military or national security facility. Also, give the President the authority to designate areas where no Chinese national may own any real property interest (Chang).

By Mallory WilsonThe Washington Times – July 15, 2025

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Republican lawmakers introduced a bill Tuesday that would stop members of the Chinese Communist Party from purchasing land in the U.S., a move that aligns with efforts of the Trump administration.

Sens. Rick Scott of Florida, Tom Cotton of Arkansas, Kevin Cramer of North Dakota and Katie Britt of Alabama introduced the “Not One More Inch or Acre Act.” It would give Mr. Trump clear authority to prohibit all future land purchases by the CCP and force the divestment of already owned property in cases of national security protection.

“Communist China has chosen to be our enemy and seeks to destroy us and our way of life every chance they get,” Mr. Scott said in a statement. “It’s alarming that CCP-linked entities have been quietly buying up U.S. farmland, often strategically located close to our military bases. That’s not a coincidence. It’s a threat to our national security.”

He applauded the administration for taking steps to stop “ignoring this growing danger.”