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September 13, 2023

ICAS Bulletin (online ISSN 2836-3418, print ISSN 2836-340X) is published every other week throughout the year at 1919 M St NW, Suite 310, Washington, DC 20036.
The online version of ICAS Bulletin can be found at chinaus-icas.org/bulletins/.

- What's Going On? -

New Technologies Dominate Security and Defense Issues

Aerial view of the Pentagon Building in Arlington, VA. (Source: U.S. DoD, public domain)

– The U.S. and Australia have announced they will partner in a bid to develop advanced AI-manned submarine technology to defend against China.
– A memo was distributed to U.S. Air Force personnel stating that the Chinese military is targeting former and current U.S. service members to obtain their specialized knowledge.
– Both the House of Representatives China Select Committee and the FCC have declared Chinese technology companies Quectel and Fibocom national security risks.
– The Pentagon provided details about their plans to implement a vast network of AI-powered defense and weapon technology, which they say are meant to counter threats from China and other adversaries.
– Newly released information by Microsoft says that in 2021 the Chinese government hacked into the emails of top Biden administration officials following various technical missteps by Microsoft.
– U.S. officials have noted as many as 100 Chinese nationals accessed military sites in recent years in actions described as forms of espionage seemingly to test security practices. The Chinese Embassy spokesperson called the claims “purely ill-intentioned fabrications” in response.

Smartphones Become the Latest Fodder in Sino-American “Tech War”

Huawei at the Mobile World Congress 2015 in Barcelona. (Credit: Kārlis Dambrāns CC 2.0 via Flickr)

– Following previous restrictions, the Chinese government expanded a ban on iPhone usage from only government officials to include government-backed agencies and state companies.
– The U.S. Commerce Department recently began an investigation into a new smartphone chip developed by Chinese technology company Huawei.
– While U.S. Commerce Secretary Gina Raimondo was visiting Beijing, Chinese technology company Huawei unveiled a new smartphone with 5G capabilities and new chip despite reported attempts by some in Washington to curtail such developments.
– Chinese central government agencies ordered employees not to bring in foreign-branded devices to work, especially Apple iPhones. This restriction follows a trend by Beijing to cut reliance on foreign technology.
– Huawei’s new phone launch has ignited fears amidst Western observers that U.S. sanctions have failed to prevent China from making key technological advances.
– Chinese state media openly endorses the new Huawei phone, with Chinese outlet Global Times stating that the new smartphone “serves as a microcosm of the US-China tech war.”

President Biden Attends the G20 Summit as President Xi Declines

Prime Minister Narendra Modi of India welcomes leaders during the opening session of the G20 Leaders' Summit on September 9, 2023 in New Delhi, Delhi. (Credit: Photo by Dan Kitwood/Getty Images)

– U.S. President Biden urged other leaders at the G20 summit in New Delhi, India to provide more funding to the World Bank, in order to “offer a credible alternative to the People’s Republic of China’s (PRC)…projects for developing countries around the world.”
– Several world leaders at the two-day summit, including President Biden, promised to support a new rail and shipping corridor that would connect India and Europe through the Middle East in what many see as a counter to China’s Belt and Road Initiative.
– As reported by President Biden, the President held talks with Chinese Premier Li Qiang, who attended the Summit in place of President Xi Jinping. “We talked about stability…it wasn’t confrontational at all,” said Biden.
– While traveling to India for the G20 summit, National Security Advisor Jake Sullivan rejected China’s reported proposition that progress on the climate crisis be tied to semiconductor chip access.
– Biden plans on making reforms at the International Monetary Fund that will increase its lending firepower and refocus its efforts toward financial stability, one of his key messages.
– Biden says that he is disappointed that his counterpart Xi did not attend the G20 summit in India, but noted that he is “going to get to see him” at one point.

U.S. Strengthens Ties with Various Asian Countries from Vietnam to Japan

President Joseph R. Biden, Jr. boarding his plane to travel to Hanoi, Vietnam on September 10, 2023. (Source: U.S. Embassy and Consulate in Vietnam)

– On September 12, the State Department announced U.S. Secretary of State Antony Blinken may host China’s Foreign Minister Wang Yi in the United States before year-end, whether at the U.N. General Assembly or after.
– On his return from the G20 Summit in India, President Biden made an official visit to Hanoi, Vietnam to strengthen the U.S.-Vietnamese relationship.
– While there, Biden made several direct and repeated comments related to China, emphasizing Washington’s desire for regional stability and not containing China. “I think we think too much in terms of [the] Cold War…it’s not about that. It’s about generating economic growth and stability,” he clarified to reporters.
– House Speaker Kevin McCarthy, during a visit to Tokyo on September 7, proclaimed that China’s position on the release of treated radioactive water from a Japanese nuclear power plant is “unfair” and “false.”
– China’s international department head Liu Jianchao met with Vietnamese officials to solidify their relationship before Biden’s visit to Vietnam.
– From September 2-7, the Association of Southeast Asian Nations (ASEAN) held their 43rd summit in Jakarta, Indonesia. U.S. Vice President Kamala Harris attended, as did Chinese Premier Li Qiang and Japanese Prime Minister Fumio Kishida.

China’s Economy Struggles Despite U.S. Companies’ Interest in the Region

(Source: Getty Images, Royalty-Free)

– According to direct sources, purchases of $50 million or more will now need approval from the People’s Bank of China in order to proceed, as China’s central bank is tightening security on large purchases at a time when the Chinese currency is depreciating rapidly.
– Various CEOs rush to meet with U.S. Commerce Secretary Gina Raimondo following her visit to Beijing. Reportedly, Raimondo may brief the Business Roundtable gathering.
– Forecast for China’s economy appears gloomy as Bloomberg Economics reports it may take until the mid 2040’s for China’s GDP to overtake America’s.
– U.S. tariffs and export controls are to blame for the drop in trade between China and America, according to Chinese Ambassador to the U.S. Xie Feng. “This is a direct consequence of U.S. moves to levy Section 301 tariffs on Chinese imports, abuse unilateral sanctions and further tighten up export controls,” Xie said.
– Raimondo’s visit to a Boeing hangar in Shanghai has turned some to question whether Boeing could potentially be in line for Chinese purchases of aircrafts as post-pandemic recovery escalates.

- What Are We Reading? -

- What's Happening Around Town? -

Past Events

Upcoming Events

- What ICAS Is Up To -

ICAS Announcement

Stay Tuned for Information Regarding the ICAS 2023 Annual Conference!

On October 17, 2023, ICAS will be holding its 2023 Annual Conference out of Washington, DC! This year, our expert panelists and keynote dialogue participants will focus on “Assessing Challenges and Exploring Prospects for U.S.-China Relations in 2024.”

Subscribe to our newsletters and follow us on social media to stay informed about speakers, co-hosts, full agenda and how to reserve your spot for this in-person conference.

ICAS Expert Voices Initiative Interview

Expert Voices Initiative Interview - William Vogt September 1, 2023

On September 1, 2023, the Institute for China-America Studies (ICAS) Expert Voices Initiative (EVI) conducted an interview with Mr. William Vogt, an author and adjunct lecturer at Georgetown University, to discuss the current state and future potential of the “Chinese Internet.” The interview was hosted in-person at the ICAS office in Washington, D.C. by Yilun Zhang, Trade ‘n Technology (TnT) Program Manager.

To many Western observers, China’s Internet appears to be a mysterious ‘black box’ of unknowns and mixed signals. On one hand, the Internet is becoming a symbol of China’s economic growth and opening up with the country’s rapidly growing community of netizens and e-commerce businesses. Widely-used social media platforms like WeChat and Douyin (TikTok) make China one of the leading countries in this new era of information technology. On the other hand, the Internet remains rather closed off due to the Chinese government’s tightening control and censorship over online content and its recent crackdowns on Internet and technology companies. How should observers properly assess China’s Internet society? Is the Chinese Internet a land of free speech or is it more-so a tool for centralized control? This EVI aims to discuss and assess the current state of China’s Internet and provide another depiction of this often unknown territory. Additionally, this event also seeks to explore the roles of various actors in this complex dynamic environment of the Chinese Internet.

Academic Engagement

Executive Director Dr. Nong Hong speaks at Stimson Center event on "Charting a Blue Future for Cooperation between West Africa and China on Sustainable Fisheries"

September 14, 2023

On Thursday, September 14, 2023, ICAS Executive Director and Senior Fellow Dr. Nong Hong will speak on a Stimson Center online event panel discussing cooperation between China and West Africa over sustainable fisheries.

ICAS Blog Post

Event Summary: What's next for China's economy?, PIIE

By Amanda Jin
September 12, 2023

On September 7, 2023, the Peterson Institute for International Economics (PIIE) held a virtual event to discuss the short- and medium-term outlook for China’s economic growth. Titled “What’s next for China’s economy?,” the event occurred under the background of weeks, if not months, of renewed U.S. media, governmental and congressional attention to China’s domestic economic situation and challenges…

ICAS In the News

On Friday, September 8, 2023, Senior Fellow Sourabh Gupta discussed the G20 Summit and global economic development challenges on CGTN’s BizTalk.

  • “[India] right now as chair [of the G20 Summit] the larger challenges is coordinating…all the cats together at the G20 Summit and I think the problem for India out here has been…where it stands on the most divisive issue going into the G20, which is the Ukraine issue; it has it has played both sides and in joint statements too and the problem arising out here is that at large multilateral venues it is the Western countries which put their foot down and demand their strong statement against Russia.”
  • “Among developing countries itself the voice is not really coherent; it is difficult to align the differences and come up with coherent voices of developing countries. The gap between developing countries is…actually much bigger than among developed Nations.”

On Wednesday, September 6, 2023, Senior Fellow Sourabh Gupta discussed the ASEAN Summit on CGTN America’s The Heat.

  • “The Democrats understand that ASEAN is a very important player in the region and regardless of the difficulty sometimes in the relations with ASEAN that ASEAN needs to be co-opted… as a group.” 

On Tuesday, September 5, 2023, Senior Fellow Sourabh Gupta discussed the opening of the United Nations’ 2023 General Assembly on CGTN America’s The Heat.

  • “These are not great times in multilateralism and so it’s always going to be a difficult lift…most of the previous meetings had happened during [COVID] so they happened virtually or in a hybrid format. I’m expecting this will be a full in-person meeting that itself is an opportunity to talk…to create a bit of trust.”

On Tuesday, September 5, 2023, Senior Fellow Sourabh Gupta was quoted by China Daily on US-China commercial relations as Secretary Gina Raimondo visits Beijing 

  • “At the US’ end, it would of course like its businesses to make greater inroads in the Chinese market and fatten its profits — although I think there is an overestimation at the US government end as to what it can achieve for American businesses in China given that the Biden administration itself has been willfully creating an inhospitable business environment for Chinese businesses in America.”
  • “Be that as it may, this is one of the few areas where the two sides can provide mutually beneficial assurances to each other.”