China US

The Chinese STAR 50 Index has lost trillions of dollars in value in recent months thanks mostly to lost faith in AI. The total value of AI stocks accounts for 40% of the market. The AI machines being built aren’t making money off their domestic market, a problem the U.S. might be facing soon as well.

Chinese markets lose trillions as race for AI supremacy with US takes its toll | China– www.theguardian.com
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Trillions of dollars have been wiped from China’s stock markets in recent months amid increasing anxiety about the future of artificial intelligence, as Beijing races against the United States for dominance in the sector.

The STAR 50 Index, which tracks technology and innovation companies on the Shanghai stock exchange, has plunged 40% since June. Other indexes of major companies dropped by about 20% over the same time period.

The precipitous drop has wiped out $2.4tn from the Chinese stock market since May, according to Bloomberg.

AI stocks account for over 40% of the stock market value in China and Hong Kong, according to Goldman Sachs, meaning that any dent in value will send shockwaves across the whole domestic market.

While the U.S. and Japan were engaged in military drills in the Indo Pacific, China and Russia sent spy planes to disrupt the action. Japanese fighters were scrambled to escort the spy planes out of the region. The drills involve thousands of troops, hundreds of aircraft, and dozens of naval vessels.

China, Russia Send Spy Planes Amid Massive US-Led Military Drills; Japan Scrambles Fighter Jets
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Japan has scrambled fighter aircraft after Chinese and Russian intelligence planes conducted five flights near the country between October 20 and 23. The activity involved three Chinese Y-9 aircraft and two Russian Il-20 reconnaissance planes, according to Japan’s Joint Staff. The missions coincided with Keen Sword 2027, a major Japan-US military exercise running until October 29. With thousands of troops, hundreds of aircraft and dozens of vessels involved, the developments highlight heightened military activity across the Indo-Pacific. No Japanese airspace violations were reported.#China #Russia #Japan #SpyPlanes #MilitaryAircraft #KeenSword2027 #USJapanAlliance #IndoPacific #MilitaryNews #Geopolitics #Y9 #IL20 #JapanAirSelfDefenseForce #BreakingNewsRead Less

A Federal judge has decided the Pentagon does not have a right to block firms from having defense contracts that lobby for Alibaba. The company rewarded in the ruling is a CCP-controlled and supporting enterprise. This ruling allows the CCP to continue to infiltrate American military procurement infrastructures.

China’s Alibaba wins court ruling over Pentagon ban that made the company fire dozens of American lobby firms
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A US federal judge has ruled that the government cannot block companies from getting Pentagon contracts simply because they work with firms that lobby for Alibaba, reports Reuters. The Chinese company sued the US government in June this year after the Pentagon added the Chinese company to a list of firms accused of helping China’s military. The list also included search engine company Baidu, electric vehicle maker BYD and other Chinese technology and manufacturing firms.

What the ruling means for Alibaba

The court’s decision allows Alibaba to continue working with Washington lobbyists who also represent companies that do business with the Pentagon. As per the report, this could help the Chinese company fight its inclusion on the US military-related list.Alibaba reportedly dropped dozens of lobbyists after the Pentagon named it in June. The company has challenged the decision, arguing that there is no evidence to support the claim that it has links to China’s military.Being on the list does not bring direct sanctions, but it can affect a company’s ability to secure Pentagon contracts.

The U.S. Department of War has declared China’s “cultural outreach” centers in progressive-run U.S. universities security threats.

Secretary of War Pete Hegseth declared, “These Chinese government-backed propaganda cultural programs had infiltrated our nation’s universities in almost every state. Now, thankfully, Congress banned them a few years ago, these Confucius Institutes. 
But they came back disguised in new forms, just like DEI does. Just call it a different name. Well, the Department of War has taken action to stop this as well.”

War Department Designates CCP-Tied Confucius Institutes As Security Threats – PJ Media– pjmedia.com
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After years of exposés on the Chinese government influence operations through the Confucius Institutes, the Department of War is finally taking action to recognize that not every type of warfare involves weapons and soldiers.

Secretary of War Pete Hegseth warned on October 23 that while federal scrutiny spurred closures of Confucius Institutes in colleges and universities across the country that were acting as influence covers and intellectual property thieves for the Chinese Communist Party, the CCP didn’t give up that easily.

Hegseth explained that just as domestic race- and sex-obsessed ideology is difficult to kill, so foreign propaganda operations are difficult to crush permanently. “When I took office, one thing we knew was that the cancer of DEI, it was gonna be difficult to kill here in the Department of War. You see, instead of complying, promoters of this ideology just tried to rebrand it and thought they would be safe. Now, we were onto it, not gonna let that happen on our watch,” he said.

The secretary proudly declared, “We ripped it out of the Department of War, root and branch. We are gender-neutral, color-blind, and merit-based. Now, today, in a similar example, I want to tell you about Confucius Institutes.”

Pentagon designates Chinese cultural centers national security threat — RT World News– rt-english.com
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Rebranded Confucius Institute chapters were trying to “infiltrate the minds of American students,” Secretary of War Pete Hegseth has claimed

The Pentagon has designated cultural programs linked to China’s Confucius Institute as a national security threat, according to US Secretary of War Pete Hegseth. He claims that the centers, which largely offer Chinese language courses on American college and university campuses, serve as a front for Beijing’s “propaganda” campaign – an allegation Chinese officials have previously denied.

In a video posted on Facebook on Friday, Hegseth said that while the US Congress had previously “banned” the Confucius Institutes from American educational institutions, they “came back disguised in new forms” and under new names.

Hegseth was apparently referring to several measures passed by Congress in recent years that stripped universities that hosted Confucius Institutes of federal funding. The pressure from the lawmakers has led to the closure of multiple centers on US soil.

China’s Temu may have funneled your data to the CCP– www.americanthinker.com
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If you’re like me, you constantly see ads for Temu products. They promise things that are stylish, clever, useful, cute, or whatever it is you’re looking for, and they’re all so very cheap. But while you’re buying their product, it turns out that this Chinese company may well be harvesting your information and laundering it to the CCP. Now, though, at least in Texas, Temu can’t do that anymore.

Temu was unknown a few years ago, so it’s worth looking at its history to understand how it suddenly became so ubiquitous. It all started in 2015, when Colin Huang, a Chinese- and American-educated tech guy who also worked at Google, founded Pinduoduo, an e-commerce business he later rebranded as PDD Holdings. It is now one of China’s largest online shopping businesses.

While PDD is a publicly traded company, and Huang (no longer in leadership but still holding significant equity) is not a member of the Chinese government, that doesn’t mean PDD has no government ties. PDD has significant ties to the CCP because several former CCP officials are (or have been) among PDD’s top executives. Moreover, like all China-based companies, it must comply with CCP intelligence agencies when directed under the National Intelligence Law.

In September 2022, PDD launched Temu, a global version of the Chinese company. Its purpose is to connect consumers directly with inexpensive, usually Chinese-made merchandise. It grew at a near-exponential rate thanks to low prices, a huge advertising budget, cute games that drove bargains, cheap international shipping via a loophole Trump finally closed, and piggybacking on PDD’s supply chains.

The Chinese have sent ships to shadow U.S. ships on patrol in the Taiwan Strait. While the Chinese have done this before, these shadowing operations have recently increased, along with their presence in the Philippine Sea. The U.S. and Taiwan have met this increased activity with their own increased activity in response.

China Sends Navy After US Warship As Separate Maritime Standoff Erupts Near Taiwan– dailycaller.com
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Things are continuing to heat up in the Taiwan Strait as naval confrontations become more frequent and aggressive, though the first shot has not yet been fired.

China dispatched naval forces to shadow an American warship near a disputed South China Sea shoal Tuesday as Taiwan confronted a Chinese Coast Guard vessel accused of entering restricted waters with its tracking system disabled, according to the Chinese military and Taiwan Coast Guard. The incidents underscore the growing risk of military confrontations in the region, where Chinese forces are increasingly challenging American and allied vessels.

The USS Charleston, an Independence-class littoral combat ship, entered waters near Sabina Shoal in the disputed Spratly Islands early Tuesday, prompting Chinese naval forces to track and monitor the vessel, according to the PLA Southern Theater Command Navy.

“Taiwan has been getting its act together on defense at last, fielding capabilities designed to deny an invasion fleet (or a blockade fleet) access to the island across the Taiwan Strait,” James R. Holmes, the J. C. Wylie Chair of Maritime Strategy at the Naval War College, told the Daily Caller News Foundation. “No access, no Chinese victory, and Taiwan stands. Beijing has been so domineering that it has united the countries along the first island chain against it, including ourselves since we are a resident power in the Western Pacific.”

New Call for China to Free U.S. Scholar Min Zin, Detained Since June– chinadigitaltimes.net
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A statement from the Forum 2000 Foundation and International Coalition for Democratic Renewal (ICDR)—of which CDT founder and editor-in-chief Xiao Qiang is a member—adds to widespread calls for the release of Burmese democracy advocate Min Zin, a U.S. citizen. Min Zin was detained in Kunming on June 3 after traveling to China for a conference; soon after, a spokesperson for China’s Ministry of Foreign Affairs said that he was being held on suspicion of “engaging in espionage activities that endanger China’s national security.” The U.S. State Department formally designated Min Zin’s case as one of wrongful detention in late August, and President Donald Trump told reporters he had raised it during Xi Jinping’s state visit to Washington the following month.

From the Forum 2000 Foundation and ICDR:

The International Coalition for Democratic Renewal (ICDR) and Forum 2000 Foundation are deeply concerned by the wrongful detention of Min Zin, a prominent democracy advocate and independent scholar, in China.

On June 3, 2026, Min Zin, a United States citizen, was detained upon arrival at the airport in Yunnan province after traveling there on invitation of a Chinese university for an academic workshop. He has since spent over one hundred days in criminal detention at an undisclosed location investigated on spurious allegations of espionage and endangering China’s national security. Since his wrongful detention, there has been little information regarding Min Zin’s condition, access to legal counsel, or any evidence supporting the allegations against him. On August 20th, the United States government formally designated Min Zin as wrongfully detained.

China’s detention of Min Zin is an affront to international norms and standards and sends a chilling message to those in our community who uphold the principles of intellectual freedom and the open exchange of ideas.

China looks like it’s dumping Treasury debt but may actually be stashing it in Canada and Belgium– fortune.com
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China was once the top holder of U.S. Treasuries but has been shedding its massive stockpile for years, fueling fears of de-dollarization, but official data may not fully capture Beijing’s actual portfolio.

The decline began in earnest around 2021, but as recently as April 2022, China still held $1 trillion in Treasury securities. U.S. data on Friday show that’s been whittled down to just $591 billion as of August, the lowest in 18 years and down from $700 billion a year earlier.

But the data is collected primarily from U.S.-based custodians and broker-dealers, according to the Treasury Department, which adds that U.S. securities held in overseas custody accounts may not be attributed to the actual owners.

As a result, China watchers have long been skeptical of a wholesale dumping of U.S. assets, pointing to suspicious jumps in Treasury holdings elsewhere that coincide with the steep Chinese drop.

Both China and the US are racing for chips, energy, talent, data centers, and global AI influence. The AI race isn’t just about who builds the smartest model. It’s about who writes the rules. Can the rest of the world trust one system more than the other? #dwbusiness #dwdip– www.facebook.com
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California Woman Arrested on Charges Alleging She Acted as Agent of China – finchannel
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 Wanying Zhang, 34, also known as Heather Zhang, of Irvine, California, was arrested Sunday on a one count complaint charging her with acting in the United States as an unregistered agent of the government of the People’s Republic of China (PRC), including by conducting surveillance on family members of a high-ranking Taiwanese government official.

“The central allegation here — that Zhang, at the behest of the People’s Republic of China, covertly surveilled relatives of a high-ranking foreign government official in the United States — is deeply troubling,” said Assistant Attorney General for National Security John A. Eisenberg.  “The National Security Division and U.S. Attorney’s Offices, along with the FBI and other law enforcement partners, will remain vigilant against threats like this on our soil.”

“Protecting our national security means confronting foreign governments that engage in covert operations in our nation,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. “Ms. Zhang is charged with acting at the direction of Chinese government officials to spy on the family of a senior Taiwanese official here in the United States. She violated our laws and will be held accountable in our courts. We will aggressively investigate and prosecute illegal foreign operations on American soil.”

US and China discuss reciprocal visits to nuclear sites: Reports– www.channelnewsasia.com
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The United States has discussed starting reciprocal visits to nuclear sites with China, and plans to continue pushing in meetings in the coming months, CNN reported on Tuesday (Oct 6), citing sources familiar with the matter.

The idea of reciprocal visits was initially raised by China in meetings with US officials this year and visits to US Department of Energy national laboratories and equivalent Chinese facilities were discussed, CNN said, citing a source.

The discussions between US and Chinese officials have mainly been on the sidelines of gatherings by the UN Security Council’s five veto-wielding permanent members, CNN reported.

Reuters could not immediately verify the report. The White House and the Chinese embassy in Washington did not respond to requests for comment outside business hours.

US President Donald Trump called for trilateral arms control negotiations between the US, China and Russia when he met President Xi Jinping last month. However, the two leaders did not discuss the possibility of nuclear site visits during their talks, the CNN report said, citing a US official.

China might win some relief from Trump’s tariffs after President Trump met with Chairman Xi at the White House. The state visit produced little significant results outside of a promise to reduce tariffs on both sides and the President allegedly offering to sell arms to China. The President also made it clear to Xi that China should not attempt to help Iran, though no clear consequence was offered should China do so.

Triumph or Procrastination? Experts Split on the Trump-Xi Summit– warontherocks.com
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Over the better part of three days, President Donald Trump hosted Chinese President Xi Jinping in Washington for a summit that drew international attention for its high-stakes agenda, from trade and AI to Taiwan. While some experts saw the summit as an exercise in kicking the can down the road on major issues, others emphasized the significance of Trump treating Xi as an equal on the world stage.

Donald Trump Says He Discussed Release Of Political Prisoners With Xi Jinping– www.ndtv.com
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US President Donald Trump said on Wednesday he discussed the release of political prisoners with Chinese President Xi Jinping when the two leaders met last week.

“I did with President Xi. I did,” Trump told reporters when asked if he brought up the cases of political prisoners like Myanmar scholar and US citizen Min Zin, who was arrested in June, and Hong Kong’s most vocal China critic and media tycoon Jimmy Lai.

“We talked, and I think we had some very, very important discussions. Hopefully, fruitful discussions,” Trump added.

The White House had said ahead of Xi’s visit that Trump was expected to bring up cases of people wrongfully detained in China with the Chinese leader.

The White House did not say if Trump aimed to directly raise broader rights issues related to Tibet, the Uyghur Muslim minority group, and China’s new “ethnic unity” law.

Trump has made winning freedom for Americans held overseas a priority, including in China, even as he has largely ​avoided talking about China’s treatment of Tibetans, Uyghurs and voices of dissent.

U.S., China to slash tariffs on goods worth US$30B after Trump-Xi meeting – National– globalnews.ca
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The United States and China released Monday reciprocal lists of products worth about US$30 billion each that will see tariff cuts, from American hair products to Chinese toys, in a deal expected to boost bilateral trade.

The details came days after Chinese President Xi Jinping met with U.S. President Donald Trump in Washington in his first state visit to the U.S. since 2015. The U.S. had already reduced tariffs against China after Trump’s tariffs reached as high as 145 per cent at one point last year, as tensions between the two countries eased.

China’s commerce ministry said in a statement the agreement will help strengthen trade cooperation.

U.S. Ambassador David Purdue Says Trump Offered To Sell U.S. Weapons To Chinese President Xi Jinping During Meeting– wltreport.com
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U.S. Ambassador to China David Perdue gave some inside details on President Trump’s recent meetings with Chinese President Xi Jinping.

Perdue, in a recent interview with Fox News, shared that President Trump offered the Chinese President to buy U.S. weapons.

The former Senator from Georgia, however, did not reveal what Xi Jinping said in response to Trump’s offer.

Mediaite provided quotes from Ambassador David Perdue:

President Donald Trump asked Chinese leader Xi Jinping if he would like to buy American weapons during the communist politician’s three day trip to the States last week, according to U.S. Ambassador to China David Purdue.

The ambassador shared the surprising news during an interview on Fox News Sunday with anchor Shannon Bream.

“President Trump continues to say, ‘Hey, we sell arms to other people around the world.’ He actually asked President Xi if he would like to buy some, at one point,” Purdue said.

The comment came as he defended Trump’s relationship with Taiwan, with Purdue arguing Trump has “already sold 50% more arms to Taiwan than any other president since 1979.”

He said Trump’s support for an independent Taiwan should not be questioned, before saying the president is always in deal-making mode, even when it comes to potentially selling arms to America’s biggest rival.

Here’s the moment Perdue made the comments:

Why Xi believes the U.S. and China can overcome the ‘Thucydides Trap’– www.cnbc.com
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BEIJING — China is embracing the idea of competition without confrontation, by invoking an academic concept.

“The Thucydides Trap can be overcome,” Chinese President Xi Jinping said on arriving at the White House to meet U.S. President Donald Trump on Thursday, according to the Chinese side’s official readout.

That framing contrasts with the rhetorical question he posed at the May summit of whether the two countries could avoid the Thucydides Trap.

The Thucydides Trap, popularized by Harvard professor Graham Allison in the early 2010s, refers to how tensions between a rising and ruling power have historically often resulted in a war.

Thucydides was an Athenian general in ancient Greece. His historical record of the Peloponnesian War described how Athens’ rapid rise in power alarmed Sparta and made war between the two city-states inevitable.

Allison has met Xi and visited China multiple times, including in June 2026 for a World Economic Forum event. Allison was founding dean of Harvard’s Kennedy School, which for decades trained many of China’s government officials.