WASHINGTON — Chip giant Taiwan Semiconductor Manufacturing Co. announced on Monday plans to make an additional $100 billion investment in the United States and build five additional chips factories in the coming years.

TSMC CEO C.C. Wei announced the plan in a meeting at the White House with President Donald Trump.

“We must be able to build the chips and semiconductors that we need right here,” Trump said. “It’s a matter of national security for us.”

TSMC, the world’s largest contract chipmaker, is a leading supplier to major U.S. hardware manufacturers.

The $100 billion outlay, which would boost domestic production and make the United States less reliant on semiconductors made in Asia, is in addition to a major prior investment announcement. TSMC agreed in April to expand its planned U.S. investment by $25 billion to $65 billion and to add a third Arizona factory by 2030.

With his Nov. 5 election victory largely driven by voters’ economic concerns, Trump has stepped up efforts to bolster investments in domestic industries to create jobs.

The TSMC announcement is the latest in a string of such developments. In February, Apple said it would invest $500 billion in the next four years. Emirati billionaire Hussain Sajwani and SoftBank also have promised multibillion-dollar investments in the U.S.

TSMC said on Monday it looks “forward to discussing our shared vision for innovation and growth in the semiconductor industry, as well as exploring ways to bolster the technology sector along with our customers.”

The U.S. Commerce Department under then President Joe Biden finalized a $6.6 billion government subsidy in November for TSMC’s U.S. unit for semiconductor production in Phoenix, Arizona.

Biden signed the CHIPS and Science Act legislation in 2022 to provide $52.7 billion in subsidies for American semiconductor production and research.

Taiwan’s dominant position as a maker of chips used in technology from cellphones and cars to fighter jets has sparked concerns of over-reliance on the island, especially as China ramps up pressure to assert its sovereignty claims.

China claims Taiwan as its territory, but the democratically elected government in Taipei rejects Beijing’s sovereignty claims.

Under Biden, the Commerce Department convinced all five leading-edge semiconductor firms to locate factories in the U.S. as part of the program to address national security risks from imported chips.

Trump’s Commerce Secretary Howard Lutnick told lawmakers last month that the program was “an excellent down payment” to rebuild the sector, but he has declined to commit grants that have already been approved by the department, saying he wanted to “read them and analyze them and understand them.”

A TSMC spokesperson said last month the company had received $1.5 billion in CHIPS Act money before the new administration came in as per the milestone terms of its agreement.

TSMC last year agreed to produce the world’s most advanced 2-nanometer technology at its second Arizona factory expected to begin production in 2028. TSMC also agreed to use its most advanced chip manufacturing technology called “A16” in Arizona.

TSMC has already begun producing advanced 4-nanometer chips for U.S. customers in Arizona.

The TSMC award included up to $5 billion in low-cost government loans.

 
…

TAIPEI, TAIWAN — China kicks off its biggest political meetings of the year this week as additional tariffs from the United States loom and the leadership in Beijing looks to address what Chinese President Xi Jinping has called “complex and multifaceted” economic challenges.

Starting on Tuesday, thousands of Chinese elites and lawmakers will begin gathering in the Chinese capital for the “Two Sessions,” or “lianghui,” which will set and discuss a wide range of policy agendas for 2025.

A gathering of a broad swath of representatives, from business and academia to those inside the government and the party, called the Chinese People’s Political Consultative Conference, meet on Tuesday. The day after that, China’s rubber-stamp parliament, the National People’s Congress, or NPC, will begin its annual legislative session.

Premier Li Qiang will deliver the highly anticipated government work report at the opening meeting of the NPC, outlining the Chinese government’s economic growth target for 2025 and other key economic policies.

This year’s meetings come amid a sluggish economy, weak domestic demand, low investor and consumer confidence, a lingering property sector crisis and a looming trade war with the United States. The additional 10% tariff that the U.S. government has threatened to impose on all Chinese imports is set to take effect on Tuesday.

Faced with a slew of domestic and external challenges, analysts say this year’s NPC will be an important occasion for the Chinese leadership to project “political unity” and demonstrate that “China is on the right track to greatness under the leadership of Xi Jinping.”

“For Beijing, strong leadership from the Chinese Communist Party and strengthening China’s economic and technological resilience against external shocks are more necessary than ever – and the only way to ensure China’s long-term rise,” said Nis Grunberg, an expert of Chinese politics at the Mercator Institute for China Studies, or Merics, in Germany.

In an article published in the Chinese Communist Party’s magazine Qiushi on Saturday, President Xi Jinping said some top priorities for economic work, which he characterized as “complex and multifaceted,” include facilitating an efficient relationship between the market and the government, ensuring a balance between supply and demand, optimizing the allocation of resources and balancing quality and scale in development.

As the Chinese economy continues to face “difficulties and challenges,” some experts say Beijing’s 2025 official growth target will be “around 5%,” matching the GDP increase in 2024. 

The 5% target “reflects a tacit acknowledgement of economic headwinds but signals continuity and stability,” said Lizzi Lee, a fellow on Chinese economy at the Asia Society Policy Institute.

Since all Chinese products exported to the U.S. could face a 20% tariff starting Tuesday, Lee said the Chinese government will focus on rolling out policies to boost domestic demand and consumption.

“We are likely to see stronger policy efforts to revitalize spending beyond just trade-in subsidies for cars, home appliances and digital products,” she told VOA in a written response. She added that Chinese policymakers are likely to pour resources into live-stream commerce and that the “silver economy” – goods and services for the elderly – will be areas that Chinese policymakers will likely pour resources into.

Additionally, Lee thinks China may also raise the fiscal deficit, set up state-backed investment funds to support strategic industries, and roll out policies to “push banks to support struggling local economies.”

Tech innovation and the private sector

In addition to boosting domestic demand and consumption, the Chinese government is looking to expand high-tech manufacturing and drive innovation by boosting private sector sentiment and encouraging leading tech giants to expand both domestic and international operations.

During a symposium with leaders from several Chinese tech giants on Feb. 17, Xi “urged efforts to promote the healthy and high-quality development of the country’s private sector.” He also vowed to dismantle obstacles that prevent private companies from “competing in the market fairly.”

Those remarks stood in sharp contrast to a series of crackdowns that the Chinese government has initiated against tech giants such as Alibaba, Tencent and Ant Group since 2020.

Some analysts say Beijing may reinforce state-led support for companies working on artificial intelligence or semiconductors, while ensuring these private companies are aligned with the national priorities to help China remain strong in the ongoing competition with the U.S., including in several high-tech sectors.

“The private sector has an important role to play, but always under the guidance of the party,” Antonia Hmaidi, a senior analyst at Merics, said during a webinar on Feb. 27.

While “AI is a fundamental priority for party and state, a comprehensive law is unlikely to emerge at the Two Sessions as the party-state grapples with using AI for development while ensuring its safe use,” she added.

Tariffs countermeasures

On the foreign policy front, the international community will be closely watching how China decides to counter the tariffs that the U.S. government has vowed to impose on Chinese imports.

Lee at ASPI said the Chinese government may double down on supply chain resilience, diversifying export markets and strengthening its domestic tech ecosystem.

“I expect policies that emphasize boosting domestic demand to offset trade risks, increasing fiscal support for industrial upgrading and further deepening economic ties with ASEAN, the Middle East and the Global South,” she told VOA.

On Monday, Chinese state-run tabloid Global Times reported that the Chinese government is “studying and formulating” countermeasures against the U.S. tariffs, including potentially targeting U.S. agriculture and food products with tariff and non-tariff measures.

In light of the changes in foreign policy that the U.S. has implemented since President Donald Trump returned to the White House in January, Wen-ti Sung, a Taipei-based political scientist for the Australian National University, said China will try to “project an image of continuity and certainty” in terms of foreign policy during the Two Sessions.

“It used to seem like China was the revisionist power in the international system, but as the U.S. changes the rules of the game that it set up, China will try to repackage itself as the pro-status quo power,” he told VOA by phone.
…

WASHINGTON — South Korean President Yoon Suk Yeol in the closing statements of his impeachment trial this week said that a Chinese-backed disinformation campaign is threatening South Korea’s democracy.

The United States has acknowledged Beijing’s global disinformation campaign amid growing concerns in Seoul and Washington about China’s alleged interference in South Korean politics and elections.

“It’s well known that the Chinese Communist Party deploys vast information manipulation campaigns around the world,” a State Department spokesperson said in a statement emailed Wednesday to VOA’s Korean Service.

“Fake news, propaganda and disinformation are tools frequently employed as a part of Beijing’s diplomacy,” the statement said, using a long-standing practice of anonymity.

The comments were made in response to remarks by China’s  ambassador to Seoul, Dai Bing, who criticized South Korean conservative groups for speaking out about what they view as Beijing’s interference in South Korean politics and elections.

On Tuesday, Dai told journalists gathered at the Chinese Embassy in Seoul that the groups’ “strong disruptive influence could significantly impact the development of China-South Korea relations.”

Dai continued, “We remain committed to noninterference in South Korea’s internal affairs, but we will also take appropriate measures depending on the severity of the situation.”

Anti-Chinese sentiment has been growing in South Korea, along with opposition to the impeachment of Yoon, who is now waiting for the Constitutional Court to rule on his brief martial law decree in December.

Yoon, facing separate charges for insurrection associated with his martial law decree, was impeached by the opposition-controlled National Assembly on Dec. 14, for what they saw as taking an extreme measure designed for times of war.

Alleged election interference

Thousands of protesters took to the streets in support of arguments made at weekslong court hearings by Yoon’s attorneys, who alleged that China and North Korea interfered in South Korean politics and elections to undermine national security.

The court wrapped up its impeachment hearings on Tuesday after Yoon made his final statement defending his decree.

Yoon said foreign entities have been collaborating with anti-state forces in South Korea in undermining the system of liberal democracy, threatening its national security and driving the country into a state of emergency.

“They have driven the country into the state of conflict and chaos through fake news, manipulation of public opinion and propaganda,” Yoon said.

The court’s impeachment ruling is expected in mid-March. If the court rules to impeach Yoon, an election will be held within 60 days to select a new president. The leader of the main opposition Democratic Party (DP), Lee Jae-myung, known for his pro-China views, is considered a strong candidate.

“China has been actively interfering in South Korea’s politics for decades, and recent evidence suggests that Beijing has even been helping the South’s leftists rig elections,” said Gordon Chang, senior fellow at the Gatestone Institute and the author of Plan Red: China’s Project to Destroy America.

Dai’s remarks suggest that “China’s communists think no one should ever complain about their brazen meddling,” Chang told VOA on Thursday.

Chang and others raised concerns about China’s interference in South Korean politics and elections at the Conservative Political Action Conference, or CPAC, held last week in Washington.

At a forum held Friday at CPAC, Fred Fleitz, vice chair of the America First Policy Institute’s Center for American Security, said, “South Korea plays a crucial role in promoting security in the Asia Pacific, and it is a key strategic ally of the United States.”

“That obviously gives strong motivations to China and North Korea to undermine South Korea, to create domestic instability, knowing that it will advance their interests and undermine American and global security,” he continued.

“So this election fraud issue is part of a much bigger security challenge,” Fleitz added.

Disinformation campaign

China has been accused of attempting to interfere in elections in other democratic countries, including the U.S. and Australia. It is also accused of operating campaigns to influence politics and alter public opinion through media in European countries, including the U.K. and Germany. 

“There is certainly Chinese influence to shape [South] Korean public opinion in a direction that would favor PRC interests,” said Andrew Yeo, the SK-Korea Foundation Chair at the Brookings Institution’s Center for Asia Policy Studies, using China’s official name, the People’s Republic of China.

“This includes support for South Korean candidates who might adopt a more conciliatory approach to China. But I have not seen direct evidence of how China has been directly involved in election interference. If the allegations of Chinese interference are true, those allegations would be troubling and a violation of South Korean sovereignty,” Yeo told VOA on Thursday.

Robert Rapson, who served as charge d’affaires and deputy chief of mission at the U.S. Embassy in Seoul from 2018 to 2021, said, “I don’t think there will be any concern on the part of the Trump administration about a transition to a new ROK government should the Constitutional Court uphold Mr. Yoon’s impeachment by the National Assembly.” South Korea’s official name is the Republic of Korea.

He said the U.S. “can effectively and reliably conduct our two nations’ pressing business, regardless of whether that government is led by the DP or PPP” [the ruling People’s Power Party].

Jiha Ham contributed to this report.
…

WASHINGTON — A United Nations-hosted language technology conference has come under scrutiny after organizers abruptly canceled a scheduled presentation by Abduweli Ayup, a prominent Uyghur linguist and human rights advocate.

The cancellation, communicated just hours before Ayup’s Feb. 25 talk, has prompted speculation about external pressures, with Ayup and others suggesting China’s influence may have been a factor.

Ayup was invited to deliver a 10-minute talk and serve as a panelist and chair/rapporteur at the conference, hosted by the U.N. Educational, Scientific and Cultural Organization (UNESCO) at its headquarters in Paris.

“We are pleased to invite you to deliver a talk at the 2nd International Conference on Language Technologies for All (LT4ALL 2025),” the organizer stated in an email Ayup shared with VOA.

“I saw my participation [as] a rare chance on the Uyghur language’s plight — an issue I’ve fought to preserve against Beijing’s relentless suppression,” Ayup told VOA.

He said his talk was canceled under pressure from China.

“I see the reason as very simple. It’s because of my critique of China’s systematic erasure of Uyghur language and culture and questioning the Chinese representatives about the Uyghur language ban in education,” Ayup told VOA.

A linguistics graduate of the University of Kansas, Ayup returned to China in 2011 to launch Uyghur-language schools in defiance of Mandarin-only mandates. Arrested in 2013 on “illegal fundraising” charges, he said he endured 15 months of torture before fleeing to Turkey in 2015 and resettling in Norway by 2019.

There, he founded Uyghur Hjelp to document China’s cultural crackdown — a work recognized with the 2024 Language Rights Defenders Award. His siblings remain detained in Xinjiang.

Beijing’s “bilingual education” policy in the Uyghur region of Xinjiang in northwest China was enacted in the early 2000s and promised dual-language instruction but was later criticized as a tool of assimilation. By 2017, schools began to ban Uyghur language instruction at schools, a pattern researchers and advocates criticize as linguistic genocide.

Late on Feb. 24, Ayup received an email from the LT4ALL Organizing Committee stating, “We regret to inform you that we only received notice this evening that we were unable to secure approval to include your presentation in tomorrow’s program.”

The email sent by the summit organizers and later shared with VOA by Ayup continued, “Unfortunately, we were informed at the last minute, and this decision is beyond our control.” No further details were provided regarding who denied approval or why.

Speaking to Voice of America (VOA), Ayup suggested the cancellation was linked to his criticism of China’s language policies during the summit, which Ayup attended even though he could not deliver his presentation.

Earlier that day, he had directly questioned Chinese presenters — including a representative of iFlytek, a tech firm linked to Uyghur surveillance — about Beijing’s restrictions on minority languages.

The iFlytek representative who attended the summit did not respond to VOA’s inquiry regarding Ayup’s claim about why his presentation was canceled by the time of this report’s publication.

iFlytek, a China-based company specializing in voice recognition, has supplied Xinjiang police with voiceprint systems since at least 2016 and partnered with security agencies to build a national database used in the region’s mass surveillance, according to Human Rights Watch.

The U.S. sanctioned iFlytek in 2019 for its role in “high-technology surveillance” aiding China’s repression of Uyghurs, which includes detaining over 1 million since 2017, per U.N. estimates.

Ayup told VOA he asked Chinese representatives why China banned Uyghur language from education — a policy enacted first in parts of Xinjiang about 2017 — but received no answer.

Following the session, Ayup recounted being confronted by a few Chinese delegates, who questioned why he spoke in English rather than Mandarin and asked about his family’s whereabouts. When he revealed that his brother and sister were detained in Chinese internment camps — possibly now in prisons — the delegates dismissed his claims, labeling his relatives “terrorists.”

“I believe my encounters with the Chinese representatives have contributed to the exclusion of my presentation from the conference program,” Ayup said.

UNESCO’s response

UNESCO confirmed the cancellation, attributing it to “chaotic” planning.

In an email response to VOA, a UNESCO official stated that the cancellation only applied to a “scientific poster” presentation scheduled for a midday break on Feb. 25, not his broader participation in the event.

“UNESCO regrets that no space was available on Tuesday to accommodate Mr. Ayup’s scientific poster. However, this was possible the following day,” the UNESCO official wrote, adding, “[T]his logistical setback did not prevent him from participating in the Conference as such and from raising the issue of the Uyghur language.”

UNESCO noted that Ayup spoke freely during roundtables and was given the floor whenever he requested it. The organization attributed the issue to “chaotic” planning by academic co-organizers, who extended invitations without full coordination.

Ayup disputes that account, arguing that UNESCO, under pressure from China — a member of the U.N. Security Council — may have sought to limit his platform.

Other prominent human rights activists echoed those concerns on the social media platform X.

Former World Uyghur Congress President Dolkun Isa denounced the “last-minute cancellation of linguist Abduweli Ayup’s presentation on the Uyghur language without any explanation,” calling it “seemingly influenced by Chinese interests.

Maya Wang, associate China director at Human Rights Watch, also weighed in, pointing to iFlytek’s presence at the conference. “UNESCO abruptly cancelled his presentation but allowed a Chinese voice recognition/surveillance company iFlytek + Hunan state TV to whitewash China’s erasure of minority languages,” she wrote.

Ayup’s ordeal didn’t end with cancellation. He told VOA an unidentified Chinese man shadowed him, filming him during breaks — a claim backed by an attendee’s video, later shared with VOA.

Ayup told VOA he’s not the first to face restrictions at a U.N.-related event, stating, “There are precedents.”

He pointed to Tove Skutnabb-Kangas, an expert at the 2019 U.N. Forum on Minority Issues in Geneva, who claimed her speech on “linguistic and cultural genocide” naming Uyghurs and China was censored by organizers fearing state backlash.

“Freedom of speech denied at the U.N.!” she wrote, later sharing her original text online after it was altered. Ayup sees this as part of a pattern limiting discussion of Uyghur repression at U.N. forums.
…

WASHINGTON — On the third anniversary of Russia’s full-scale invasion of Ukraine earlier this week, Chinese President Xi Jinping reaffirmed Beijing’s “no limits” partnership with Moscow in a call with Russian President Vladimir Putin, according to Chinese state media.

“China-Russia relations have strong internal driving force and unique strategic value,” Xi said, according to the official readout from state media. He also called Russia a “true friend” and a “good neighbor.”

The sentiment is not new. Moscow and Beijing have long touted the strength and long-term nature of their relationship.

But according to a new report from Filter Labs, a U.S.-based political research and analysis company, Russia and China’s relationship may be weaker than they want the rest of the world to believe.

“Their partnership is vulnerable,” Filter Labs founder Jonathan Teubner told VOA. “This ‘no limits’ partnership is much more complicated.”

‘Infused with doubt’

While the governments and state-run media from both countries work to project the image of a strong partnership, their relationship may be underpinned by more tension, mistrust and competing interests than previously thought, according to an extensive analysis of news media and social media posts by Filter Labs.

“The axis is infused with doubt, ripe for disruption,” the report said.

Teubner added, “The monolith theory of the China-Russia relationship isn’t necessarily the way it has to be.”

But not all experts agree that the Russia-China relationship is fragile.

“The China-Russia relationship continues to deepen and widen, and occasional disagreements are dwarfed by the scale and momentum of their strategic cooperation,” Robert Blackwill and Richard Fontaine wrote in a 2024 Council on Foreign Relations report.

From the Chinese perspective, according to the Filter Labs report, there are doubts over the true resilience of Russia’s economy, whether Russia’s military is as strong as it says it is, and what Russia’s true intentions are in the long term.

Meanwhile, says Filter Labs, Russian doubts pertain to quality concerns about Chinese goods, how militarily committed China actually is to Russia, and whether Chinese investment in Russia is really that substantial.

Chinese state media is generally positive about the state of the Russian economy and often criticizes Western sanctions.

However, Chinese netizens are increasingly worried about the impact that secondary sanctions could have on China.

The United States has threatened to use secondary sanctions against Chinese businesses viewed as engaging with Russia, pushing some Chinese netizens to weigh the value of China’s relationship with Russia against its ability to trade with the United States.

Once those sanctions are enforced on China, Teubner predicts, it will lead to changes in the Russia-China relationship.

“The sanctions on Russia actually have a pretty important countering Chinese effect, too,” said Teubner, who thinks the sanctions are the biggest source of friction between Beijing and Moscow.

Quality concerns

Meanwhile, the most common doubt among Russians about China pertains to quality concerns about Chinese goods, according to the report. In Russia, Chinese goods have a reputation for being affordable but of poor quality.

“We see more persistent complaints about Chinese goods,” Teubner said.

“That’s paired with Russian anxiety over pairing itself so deeply to China,” Teubner added. “That comes through very strongly in Russian anxieties toward being subordinated to the Chinese economy.”

One consequence of Russia’s war in Ukraine has been that it has pushed Russia and China closer together, prompting some governments to default to treating the autocratic duo as a bloc, according to Teubner.

“It will increasingly be that way unless we do something to keep them apart,” Teubner said.

The report recommends that the United States and its allies and partners take advantage of the fault lines to drive a wedge between Russia and China.
…

The Nature news team recently published an analysis of the retraction rates of academic articles by institutions around the world over the past decade. The analysis found that from 2014 to 2024, Jining First People’s Hospital ranked first in the world in the global retraction rate ranking, with a total retraction rate of more than 5%, which is 50 times the global average. Among the top 10 institutions, another six are from China. 

Click here for the full story in Mandarin. 
…

U.S. President Donald Trump said Thursday that he would impose 25% tariffs on imported goods from Canada and Mexico next week as he originally planned, contending the two neighboring countries are still not doing enough to curb the flow of drugs into the United States.

In addition, Trump said on his Truth Social media platform that he also was hitting China with another 10% levy next Tuesday on its exports to the U.S., on top of the 10% tariff he imposed earlier this month. China quickly matched the first Trump tariff with one of its own on U.S. exports.

“Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels,” Trump said. “A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China.”

Trump first announced the tariffs on Canada and Mexico, two of the U.S.’s closest allies and trading partners, earlier this month.

But he delayed imposition of the tariffs until March 4 after Mexican President Claudia Sheinbaum said she would send 10,000 troops to her country’s northern border to help the U.S. control drug trafficking. Canadian Prime Minister Justin Trudeau said he would name a “fentanyl czar” to deal with the issue.

Sheinbaum, whose trade-dependent economy sends 80% of its exports to the U.S., said earlier this week, “We’re expecting to reach a deal with the United States,” but that if a deal is not reached, Mexico could impose retaliatory tariffs on U.S.-made products.

When Trump first announced the hefty U.S. tariff on Canadian imports, Trudeau said it was “entirely unjustified” and promised to impose a 25% tax starting March 12 on U.S. steel and aluminum products exported to Canada. Canada is the top exporter of both metals to the U.S.

Economists say the tariffs Trump is imposing are likely to boost retail prices for consumers and the cost of materials for businesses. Mexico, Canada and China, in that order, are the three biggest national trading partners with the U.S., although collectively, the 27-nation European Union is larger than all three.

Trump, at the first Cabinet meeting of his new presidential term on Wednesday, said he would “very soon” announce a 25% tariff on EU exports to the U.S.

With Trump signaling the new tariff on goods sent to the U.S., the EU vowed to respond “firmly and immediately” to “unjustified” trade barriers and suggested it would impose its own tariffs on U.S. imports if Trump proceeded with his.

Trump, in his Truth Social announcement, said reciprocal tariffs on nations that levy taxes on U.S. exports were still set to take effect on April 2. He has also hinted at putting tariffs on automobile imports, lumber, pharmaceutical products and other goods.

Many economists have repeatedly warned that tariffs could lead to higher prices, boosting troublesome inflation in the U.S. Trump has acknowledged there could be short-term pain for Americans but he has contended that tariffs would ultimately be beneficial to the U.S. economy, the world’s largest.

Trump says the tariffs he is imposing would be an incentive for foreign companies to do more manufacturing in the United States to avoid the tariffs on overseas shipment of their products to the U.S.

More immediately, Trump is focused on the flow of drugs into the U.S. 
…

WASHINGTON — As U.S. President Donald Trump moves forward with an expanding net of tariffs, including an additional 10% for Chinese imports starting next week, industry insiders and experts say closing existing loopholes and workarounds that companies use to avoid trade taxes is also key.

One practice that so far has helped companies from China — and others — to avoid being hit with tariffs is transshipment, or the transfer of goods to a second country, where the “Made in China” label is switched for another.

Berwick Offray, a ribbon manufacturer in the northeastern state of Pennsylvania, has first-hand experience with the practice. Founded in 1945, the company prides itself on its pledge to keep its products “Made in the USA” and its position as one of the largest manufacturers of ribbons in the world.

Earlier this month, the company sued a U.S. importer, TriMar Ribbon, for allegedly buying ribbons produced in China that were shipped to the United States through India to illegally avoid being subject to tariffs.

Ribbons made in China are cheaper and sold at below market value prices in the United States.

“The current allegations allege that TriMar imported ribbons from China into the United States through transshipment in India, and did not declare the correct country of origin upon entry,” said a notice issued from U.S. Customs and Border Protection, or CBP, when the agency agreed to investigate the case.

Daniel Pickard, an expert on international trade and an attorney at Buchanan Ingersoll & Rooney, which represents Berwick Offray, said there have been numerous cases of transshipment, especially when it comes to products from China.

“We have assisted several clients in submitting allegations to CBP against importers of products that have been transshipped from China through third countries such as Thailand, India and Canada,” Pickard told VOA. “Our clients typically are the U.S. manufacturers of those products that are competing against the Chinese imports that are engaged in evasion of duties.”

According to CBP data, there are currently 221 investigations of Chinese-made products suspected of transshipment tariff evasion.

Tariffs and loopholes

In early February, the Trump administration rolled out 10% blanket tariffs on all Chinese goods. On March 4, Chinese imports will face an additional 10% tariff.

While Trump has worked to reduce potential workarounds, including his executive order on reciprocal tariffs on trading partners, U.S. lawmakers have introduced measures to close the loopholes that would allow Chinese products to evade the president’s increased fees.

Republican Senator Rick Scott introduced the Stopping Adversarial Tariff Evasion Act on Jan. 31, aiming to strengthen enforcement mechanisms to ensure foreign manufacturers comply with customs and duties.

The legislation builds on efforts from Congresswoman Ashley Hinson, who introduced a bill in December intended to hold China accountable for tariff evasion by establishing a task force and reporting mechanisms to deal with instances of financial crime.

Jayant Menon, a senior fellow at the ISEAS Yusof Ishak Institute in Singapore, said the second Trump presidency will foster even more efforts to monitor tariff evasion and inspect products for compliance.

“While it is increasingly difficult to determine where a product is really made these days, given increasing globalization and widespread production under global supply chain, increased scrutiny can help with identifying bypass attempts,” Menon said.

“If bypass attempts are suspected, rightly or wrongly, then the country as a whole may be penalized with new tariffs,” he said.

Pickard said he expects more investigations will be launched by the new administration. He also looks forward to more efforts to counter discriminatory practices affecting U.S. companies.

“We anticipate CBP will increase its enforcement efforts as to the widespread customs fraud involving Chinese products,” he said.

Many stakeholders in the industry, Pickard said, are hoping to see these issues met with criminal prosecutions.
…

TAIPEI, TAIWAN — A new survey by Chinese media shows that housing rents in Beijing, Shanghai and Shenzhen have fallen to 2015–2017 levels, while rents in Guangzhou, Chengdu and Tianjin have dropped to the early 2010s levels.

Analysts attribute the decline in rents to falling household incomes, which have weakened demand.

Click here for the full story in Mandarin.
…

Manila — A young kidnap victim clad in pajamas and missing a finger was rescued from the side of a busy Manila thoroughfare this week after his abductors ditched him during a police pursuit, Philippine authorities said Wednesday.

The kidnappers, like their teenaged target, were Chinese nationals, said the interior department’s Juanito Victor Remulla, and part of a “sophisticated” syndicate with ties to the now-banned offshore gambling sites known locally as POGOs.

Notorious as fronts for human trafficking, money laundering and fraud, POGOs were banned by President Ferdinand Marcos last year, sending those who worked for them in search of new income streams.

“We are definite that the syndicate behind the kidnapping were former POGO operators,” Remulla told reporters, adding those involved had lost a lucrative living when the sites were shuttered.

The kidnappers tried and failed to obtain a ransom — at one point sending the parents a video of the victim’s finger being severed — before they were tracked down on Tuesday and pursued by police who homed in on their cellphone signal.

“The choice was pursuing the vehicle or securing the child. Obviously, the [police] prioritized the child,” Remulla said. A manhunt remains underway.

The boy’s driver, who had picked him up outside an exclusive private school days earlier, was found murdered inside another vehicle in Bulacan province north of Manila.

“These [cases] arose in January after all POGOs were closed; they got into kidnapping,” Remulla said, without providing statistics.

AFP is aware of at least two other kidnapping cases involving Chinese nationals living in the Philippines this year.

While describing the incident as “Chinese against Chinese” crime, Remulla said disaffected former Filipino police or soldiers were likely used as foot soldiers in some cases.

Gilberto Cruz, chief of the Philippines’ anti-organized crime commission, told AFP that government figures showed there were still about 11,000 Chinese nationals in the country after the gambling sites they worked for were shuttered.

“Some have turned to other crimes, but we can’t provide numbers as of now,” he said, before adding that some had likely ventured into “kidnapping operations.”

At a press conference on Wednesday, the immigration department said about 300 foreign nationals linked to POGOs were being held at a detention facility built for 100 while awaiting deportation.

In a separate statement, the department said 98 Chinese nationals had been repatriated to China aboard a chartered Philippine Airlines flight on Tuesday night.

The Chinese embassy said the joint repatriation marked “another step in the law enforcing cooperation of the two countries after the ban on POGOs.”
…

PENTAGON — President Donald Trump’s nominee for deputy secretary of defense is warning that China’s military is resolute on surpassing the United States and is calling for a fix to “significant” military shortages at a time when administration leaders are trying to make big budget cuts.

“China is incredibly determined, they feel a great sense of urgency, and they’ll be fully dedicated to becoming the strongest nation in the world and having dominance over the United States,” Steve Feinberg told members of the Senate Armed Service Committee on Tuesday.  

Feinberg, a businessman and investor, said the U.S. military shortages include “shipbuilding, nuclear modernization, aircraft development, cyber defense, hypersonics, counter space, defending our satellites [and] counter drones.”

“We really need to plug these shortages, focus on our priorities, get rid of legacy programs, be very disciplined, while at the same time focusing on the economics. If we do that, given America’s great innovative capability, entrepreneurship, we will defeat China. If we don’t, our very national security is at risk,” Feinberg said.

The hearing comes as Secretary of Defense Pete Hegseth has called on the department to cut 8% — roughly $50 billion — to reinvest in priorities aligned with a “more lethal fighting force.”

Senator Jack Reed, the top Democrat on the Senate Armed Services Committee, on Tuesday pushed back against the move saying, “Slashing the defense budget will not create efficiency in our military. It will cripple it.”

The concern about cuts to the military has echoed on both sides of the aisle.

Republican committee Chairman Roger Wicker told the Breaking Defense news organization last month that he hoped to increase defense spending by as much as $200 billion in coming years.

And Republican Senator Dan Sullivan on Tuesday called for prioritizing solutions to shipbuilding to counter threats from China and others.

“We’re in the worst crisis in shipbuilding in over 40 years. The Chinese are building a giant navy. It’s already bigger than ours,” he said.

China’s military has about 370 warships, according to the Pentagon’s latest China Military Power Report, while the U.S. military has about 300.

Feinberg acknowledged that the shipbuilding shortage is “a tough problem” for the military.

“Our supply chain is definitely weak. Our workforce needs to be improved. But a big piece of improving our supply chain is working more closely with our private sector. We have companies that can get at where our needs are, where our shortages are, and we need to work more closely with them. We need people inside of government that understand their issues,” Feinberg said.

Several Democrats on the committee were critical of interference at the Pentagon by the Department of Government Efficiency, saying it could create a major vulnerability should its members not handle data more carefully.

“They [DOGE] just sent an unclassified email with CIA recent hire names in an unclassified space. As a former CIA officer, you just blew the cover of someone who was going to risk their life abroad to protect our country,” said Democratic Senator Elissa Slotkin.

“Do you know how appetizing it is for our adversaries to have this data? … It is quite literally an issue of safety and security,” she added.

Democrats also raised concern about plans to let go more than 5,000 Pentagon civilian employees this week, while Republican Senator Markwayne Mullin countered that cutting 5,000 jobs amounted to less than 0.5% of the workforce.

“Our national debt is now costing us more to just pay interest than we spend on our military. That’s a huge national security risk,” he said. “And so, at what point do we start making cuts?”
…

TAIPEI, Taiwan — Taiwanese authorities are investigating a Chinese-crewed ship suspected of severing an undersea communications cable in the latest such incident adding to tensions between Taipei and Beijing. 

Taiwan’s coast guard intercepted the Togolese-flagged cargo ship Hongtai in waters between its main island’s west coast and the outlying Penghu Islands early Tuesday, according to a statement by the coast guard. 

The coast guard had earlier been notified by telecommunications provider Chunghwa Telecom that one of its undersea cables had been severed 6 nautical miles (11 kilometers) northwest of Jiangjun Fishing Harbor. 

The Hongtai had been anchored in that same area since Saturday evening, the coast guard said. From Saturday until early Tuesday, authorities in the nearby Anping Port in Tainan had sent signals to the vessel seven times but had received no response. After the Chunghwa Telecom cable damage report, the coast guard approached the ship, which had begun to sail northwestward, and escorted it to Anping Port. 

Taiwanese authorities said the ship’s entire eight-person crew were Chinese nationals and the case was being handled “in accordance with national security-level principles.” 

“The cause of the underwater cable break, whether it was due to intentional sabotage or simply an accident, is still pending further investigation for clarification,” the coast guard said. 

“The possibility of this being part of a gray-zone incursion by China cannot be ruled out,” it added. 

Communications on the Penghu Islands were not disrupted because Chunghwa Telecom had successfully activated a backup cable, the coast guard said. 

This is the latest in a series of incidents in recent years in which undersea Taiwanese cables have been damaged — with Taipei in some instances blaming China. Earlier this year, a Chinese cargo ship was suspected of severing a link northeast of the island. 

In February 2023, two undersea cables serving Taiwan’s Matsu Islands were severed, disrupting communications for weeks. 

Taipei fears China might damage its underwater communications cables as part of attempts to blockade or seize the island, which Beijing claims as its own. 

A Chinese Foreign Ministry spokesperson said during a regular press briefing on Tuesday that he was not aware of the issue and it did not pertain to diplomacy. 
…

HONG KONG — A Chinese national political adviser has recommended lowering the legal age for marriage to 18 to boost fertility chances in the face of a declining population and “unleash reproductive potential,” a state-backed newspaper said on Tuesday.

Chen Songxi, a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), told the Global Times that he plans to submit a proposal on completely relaxing restrictions on childbirth in China and establish an “incentive system” for marriage and childbirth.

Chen’s comments come ahead of China’s annual parliamentary meeting next week where officials are expected to announce measures to offset the country’s declining population.

The legal age for marriage in China is 22 for men and 20 for women, amongst the highest in the world, compared with most developed countries where the legal marriage age is 18.

Chen said China’s legal marriage age should be lowered to 18 “to increase the fertility population base and unleash reproductive potential.”

It is to be consistent with international norms, Chen said.

China’s population fell for a third consecutive year in 2024, as marriages plummeted by a fifth, the biggest drop on record, despite efforts by authorities to encourage young couples to wed and have children.

Much of China’s demographic downturn is the result of its one-child policy imposed between 1980 and 2015. Couples have been allowed to have up to three children since 2021.

Chen said China should remove restrictions on the number of children a family can have to meet the “urgent needs of population development in the new era.”

However, a rising number of people are opting to not have children, put off by the high cost of childcare or an unwillingness to marry or put their careers on hold.

Authorities have tried to roll out incentives and measures to boost baby making including expanding maternity leave, financial and tax benefits for having children, as well as housing subsidies.

But China is one of the world’s most expensive places to bring up a child, relative to its GDP per capita, a prominent Chinese think tank said last year, detailing the time and opportunity cost for women who give birth.

CPPCC, a largely ceremonial advisory body, meets in parallel with parliament. It is made up of business magnates, artists, monks, non-communists and other representatives of broader society, but has no legislative power.
…

STATE DEPARTMENT — Three years into Russia’s aggression in Ukraine, China is closely monitoring U.S. President Donald Trump’s strategy to end the war, as Beijing calculates its moves to position itself as a strategic partner for Ukraine while maintaining a no‐limits partnership with Russia, according to experts and former officials. 

This week, British Prime Minister Keir Starmer and French President Emmanuel Macron are set to hold in-person meetings in Washington, following the Feb. 18 direct talks between senior U.S. and Russian officials in Riyadh, the Saudi capital. 

Macron met with Trump Monday morning at the White House for a meeting that lasted nearly two hours. Both leaders participated in a videoconference with other G7 leaders about Ukraine.  

Earlier on Monday, Chinese President Xi Jinping spoke with Russian President Vladimir Putin, who updated Xi on the Riyadh talks and reaffirmed the “comprehensive strategic partnership” between Russia and China. A Chinese readout said, “China welcomes the positive efforts made by Russia and relevant parties to resolve the crisis.” 

‘Crisis’ but not war 

For three years, Chinese officials have said Beijing will “play a constructive role” in the “political settlement of the crisis,” refraining from using the term “Ukraine war” to describe Russia’s aggression since Feb. 24, 2022. 

Beijing also commended the recent U.S.-Russia talks, during which Ukraine was not present. 

China and Ukraine “established a strategic partnership in 2011. … In recent years, China has been Ukraine’s largest trading partner,” Chinese Foreign Minister Wang Yi told Ukrainian Foreign Minister Andrii Sybiha on Feb. 15 on the margins of the Munich Security Conference. 

“Regarding the Ukrainian crisis … China has always worked for peace and promoted talks,” Wang said. Notably, the Chinese readout of the meeting made no mention of Ukraine’s sovereignty or territorial integrity. 

On Feb. 20, two days after the U.S.-Russia talks, Wang held in-person discussions with Russian Foreign Minister Sergey Lavrov at the G20 ministerial meeting in Johannesburg, South Africa, where Lavrov briefed him on the Riyadh talks. Wang reaffirmed China’s “comprehensive strategic partnership” with Russia. 

Wang said China “supports” all efforts dedicated to peace, including “the recent consensus reached between the United States and Russia” in Riyadh. 

Talks, not negotiations 

U.S. Secretary of State Marco Rubio said the Riyadh talks — the first between Washington and Moscow in years — were not negotiations aimed at striking any deal on Ukraine, despite concerns from Ukraine and European countries that they were being sidelined.  

He said the talks were intended to determine whether the Russians were serious about ending the war.  

In a measured tone, Rubio characterized the talks — which lasted for more than four hours — as steps toward establishing “lines of communication” on bilateral issues between the United States and Russia. Among these efforts is the goal of achieving “some normalcy in our missions and their ability to function.” 

Some analysts said Beijing is nervous over a reset of U.S.-Russia ties.   

“While a complete rapprochement might not be in the cards, they’re nervous because if Trump lifts sanctions on Russia, then Moscow’s dependency on China decreases,” Dennis Wilder, who was a top White House China adviser to former U.S. President George W. Bush, told RFE/RL.  

But others warned that the U.S. risked bolstering China’s global information campaign, which portrays Washington as an unreliable ally. 

Retired Rear Admiral Mark Montgomery, a defense analyst at the Washington-based Foundation for Defense of Democracies (FDD), said, “We immediately gave away what leverage we had” and “misattributed who the aggressor was” while rushing into talks with the Russians. 

China, “stumbling into this good news,” certainly gets the benefit, Montgomery said in a recent webinar hosted by FDD.  

“I have no doubt that diplomats from China are whispering in ears around the world about the unreliability of Americans, and unfortunately, this administration is giving them some talking points,” Bradley Bowman, senior director of the Center on Military and Political Power at the FDD, said during the webinar. 

Experts skeptical 

A Chinese Foreign Ministry spokesperson declined to comment on whether China would consider sending peacekeeping forces to Ukraine after the conflict ends.

Xi and Putin are scheduled to exchange visits to Moscow and Beijing later this year. The two held a virtual meeting on Jan. 21. Additionally, Xi took a phone call from Putin on the afternoon of Feb. 24. 

Some former U.S. officials are skeptical about the extent to which the Chinese government is genuinely willing to act to stop Russia’s war on Ukraine. They believe China may use the issue as leverage in its dealings with Trump. 

“I think the Chinese will look at the Ukraine issue, and they will offer some help to Trump. They probably won’t do very much, and then they will claim success,” Evan Medeiros, director of Georgetown University’s Asian Studies program, said during a recent podcast with the German Marshall Fund’s Indo-Pacific program. Medeiros served on the White House National Security Council from 2009 to 2015. 

“Anything that is in their direct material interests, like helping to rebuild Ukraine, they will embrace. But of course, that doesn’t have to do with encouraging Russia to reach a peace deal. That’s about ensuring that Chinese infrastructure companies get lots of big fat contracts,” Medeiros added.   
…

BEIJING — China’s President Xi Jinping reaffirmed his “no limits” partnership in a phone call with Russian President Vladimir Putin on Monday, China’s state media reported, on the third anniversary of Russia’s full-scale invasion of Ukraine. 

The leaders held the talks as U.S. President Donald Trump has pushed for a quick deal to end the Ukraine war, raising the prospect that Washington could draw a wedge between Xi and Putin and focus on competing with the world’s second largest economy. 

The call appeared aimed at dispelling any such prospects — the two leaders underscored the durability and the “long-term” nature of their alliance, with its own “internal dynamics” that would not be impacted by any “third party.”  

“China-Russia relations have strong internal driving force and unique strategic value, and are not aimed at, nor are they influenced by, any third party,” said Xi, according to the official readout published by state media.  

“The development strategies and foreign policies of China and Russia are long-term,” said Xi 

Trump has alarmed Washington’s European allies by leaving them and Ukraine out of talks with Russia last week and blaming Ukraine for Russia’s 2022 invasion. 

This was the second call both leaders have held this year, after they discussed in January how to build ties with Trump. 

China and Russia declared a “no limits” strategic partnership, days before Putin sent tens of thousands of troops into Ukraine in February 2022. Xi has met Putin over 40 times in the past decade and Putin in recent months described China as an “ally.”  

Beijing has refused to condemn Moscow for its role in the war, straining its ties with Europe and the U.S. as a result.  
…

Manila, Philippines — Japan and the Philippines agreed on Monday to further deepen defense ties in the face of an “increasingly severe” security environment in the Indo-Pacific region, Japanese defense minister Gen Nakatani said on Monday.

Nakatani met his Philippine counterpart Gilberto Teodoro in Manila for a meeting in which the two ministers tackled regional security issues, including the maritime situation in the East and South China Seas.

“The security environment surrounding us is becoming increasingly severe and that it is necessary for the two countries as strategic partners to further enhance defense cooperation and collaboration to maintain peace and stability in Indo-Pacific,” Nakatani said through a translator.

Nakatani said the Philippines and Japan have agreed to deepen cooperation on military exchanges, establish a high-level strategic dialogue among its military and deepen information sharing.

Security ties between the two U.S. allies have strengthened over the past two years as Japan and the Philippines share common concerns over China’s increasingly assertive actions in the region.

Last year, Manila and Tokyo signed a landmark military pact allowing the deployment of their forces on each other’s soil.

Japan and China have repeatedly faced off around uninhabited Japanese-administered islands that Tokyo calls the Senkaku and Beijing calls the Diaoyu.

The Philippines and China have also clashed frequently in the South China Sea around disputed shoals and atolls that fall inside Manila’s exclusive economic zone.

Nakatani visited military bases in the northern Philippines on Sunday, including a naval station that houses a coastal radar that Japan donated as part of its $4 million security assistance in 2023.

Manila was one of the first recipients of Tokyo’s official security assistance, a program aimed at helping boost deterrence capabilities of partner countries.

In December, the two countries signed a second security deal in which Japan agreed to provide the Philippine navy rigid-hull inflatable boats (RHIB) and additional coastal radar systems.
…

HONG KONG — Hong Kong is facing its toughest fiscal test in three decades following a painful run of mammoth deficits, with experts urging the government to make careful cuts as the economy wobbles.

The Chinese finance hub last saw a string of deficits after the Asian financial crisis in the late 1990s — but their scale was a fraction of the $32.4 billion shortfall in the 2020-21 fiscal year.

Hong Kong has recorded annual deficits exceeding $20 billion in three of the past four years, according to official figures.

The city’s finance chief, Paul Chan, said Sunday that the deficits were caused by “multiple internal and external challenges” and that a new budget unveiled on Wednesday will tightly control public spending.

While Chan earlier predicted a return to surplus in “three or so years,” a former government minister told AFP that the situation is “not just due to economic cycles” spurred by the coronavirus pandemic.

“If you look at Hong Kong versus other economies in the region, for example Singapore, those other economies have done much better,” said Anthony Cheung, who oversaw transport and housing policies.

Adding to the headache is the exodus of companies and high-paid workers as the city’s international reputation took a hit after Beijing quelled pro-democracy protests and imposed a sweeping national security law in 2020.

Singapore and Hong Kong suffered towering deficits in 2020 because of the pandemic, but the former has been able to keep spending relative to income in check as firms shift there from the Chinese city, helping it outperform its fiscal targets.

The challenge for Hong Kong is not just to balance its books, but to find fiscal sustainability amid U.S.-China tensions and a slowdown in the world’s second-largest economy, Cheung said.

“In the past, we assumed that Hong Kong was geopolitically well-positioned. … Now we have to be more careful about such presumptions.”

Plunging land sales

Hong Kong is required by its mini-constitution to “strive to achieve a fiscal balance” — a holdover from British colonial rule that kept the market mostly free from government intervention.

After returning to China in 1997, it kept taxes low and refilled its coffers with the help of land-related revenue, selling land to developers with deep pockets.

But last year Hong Kong collected just $2.5 billion that way, from a peak of $21.2 billion in 2018.

“[Land-related revenue] by itself has contributed to the majority of the income decline,” said Yang Liu, a financial economist at the University of Hong Kong.

“We have a very inactive land market and declining housing prices. That’s one reason that people [don’t] trade, so there’s no tax [income],” Liu told AFP.

Hong Kong still has healthy cash reserves and low government debt compared with most economies around the world.

But the prospect of three straight years in the red has fueled public debate on how to spend less.

“All the new initiatives will be under much stronger scrutiny, so [the government} will be a lot more disciplined, a lot more careful,” Liu said.

In his upcoming budget speech, the finance chief is set to put the latest deficit at “under HK$100 billion,” or $13 billion, adjusting for money raised from bond sales.

There are calls to roll back a transport subsidy for those aged 60 to 64, which can grow into a major burden on the government as Hong Kong’s population ages.

Lawmaker Edmund Wong cautioned against pay cuts for civil servants, which he said may cause private-sector employers to follow suit, but urged the government to slim down.

“In the long term, we can greatly reduce the manpower which the government is employing now,” he told AFP.

‘Welcoming’ image

The deficits could prompt Hong Kong to rethink how it makes money, though past discussions on expanding the tax base — such as a goods and services tax — went nowhere.

The city’s low ratio of debt to gross domestic product — which the government last year put at no more than 13% — means it can afford to issue bonds to fund huge undertakings, experts say.

Officials have signaled they will push ahead with a massive infrastructure project in northern Hong Kong, while backing away from a separate plan to create artificial islands.

As tensions flare between the United States and China, Hong Kong is seeking untapped growth potential in the Middle East and Southeast Asia that can translate to government revenue down the line.

The city’s economic fortunes are ultimately tied to how investors view the city as a regional and global hub, said Cheung, the former minister.

“We have to continue to showcase Hong Kong as a city that welcomes all kinds of views, all kinds of people, so long as they stay within the parameters of the national security legislation,” Cheung said.
…

HO CHI MINH CITY, VIETNAM — Analysts are pointing to management and funding issues for Vietnam’s planned north-south, high-speed rail initiative and express concerns over potential “debt traps” and growing Chinese influence as Beijing funds a railway connecting the two countries.

The comments come as Vietnam is expanding its infrastructure by building railways using Chinese and Vietnamese funding, projects that could help the country’s outlook in the long term. As part of the effort, Vietnam’s National Assembly on Feb. 19 gave near-unanimous approval to legislation allowing the country to use Chinese loans for a new $8.3 billion rail link from the port city of Haiphong to China.

Nguyen Hong Minh, then the transport minister, announced Vietnam’s plans to use the Chinese loans for the 391-kilometer passenger and freight line from Lao Cai on the Chinese border and passing through Hanoi.

“Vietnam’s current railway system is outdated, and the country needs a new system to support its economic development,” Minh, now the construction minister, said, adding that construction is expected to begin this year and be completed by 2030.

The National Assembly vote followed its November approval of construction of a high-speed railway connecting Hanoi to the country’s southern economic hub, Ho Chi Minh City. That project is Vietnam’s most ambitious infrastructure initiative to date and is projected to cost Vietnam $67 billion. Authorities said construction should begin in 2027 and be completed by 2035.

Ha Hoang Hop, chair of the Hanoi-based Think Tank Viet Know, told VOA on Feb. 17 that while both projects could modernize the country’s transport network and improve its economy, “public sentiment is cautious.”

“There have been several publicly funded railway and infrastructure projects in Vietnam that have led to public frustration due to delays, cost overruns and poor-quality outcomes,” Hop said.

“Public skepticism is also fueled by fears of debt traps associated with Chinese loans,” he said.

Hop cited fear the construction of the high-speed rail project could be dogged by the country’s “historical issues with project management and corruption.”

“There is indeed concern that the north-south, high-speed rail could face similar challenges given the scale and complexity of the project,” Hop said.

Mismanagement and corruption

Albert Tan, associate professor at the Asian Institute of Management in Manila, told VOA on Feb. 18 that while Vietnam’s railway modernization will improve the country’s supply chain efficiency, the major problem is corruption.

“The corruption level in Vietnam is so high that when you have that amount of money that the Chinese are pumping in, I’m sure there will always be leakages,” he said.

Tan said railway funds ending up in “someone’s pocket” have caused delays and cost overruns for Vietnam’s two city Metro lines. In 2021, the Chinese-funded Cat Linh-Ha Dong Metro line began running in Hanoi, five years behind its originally planned opening. The first line of the Ho Chi Minh City Metro, primarily funded by Japan, opened in December 2024, six years behind schedule. Costs ballooned for both Metro lines while under construction and delayed payments to contractors slowed the process.

“Somehow the money doesn’t go back to the contractor. Money goes somewhere to other stakeholders,” Tan said.

For the north-south, high-speed rail, Hop said the country is planning to rely on domestic funding with capital likely to come in the form of “government bonds, public investment and possibly some low-interest loans.”

“A $67 billion project will still be a significant challenge requiring careful financial management,” Hop said.

Chinese influence

Hanoi’s decision to pursue domestic funding for its high-speed rail shows the country’s drive to “maintain strategic autonomy,” Hop said. As it looks to Chinese loans for another rail project, though, “there remains a significant portion of the populace wary of increasing economic dependency on China,” he added.

Tran Anh Quan, a Vietnamese social activist currently living in exile, told VOA on Feb. 18 he fears the Chinese-funded railway will leave Hanoi indebted to Beijing and could be a weak point if conflict were to break out between the countries.

“This is definitely a debt trap,” he said. “Expanding the railway to China would be very dangerous if China attacked Vietnam.”

Tan also shared concerns over the “one-way” flow of money. He said the Chinese loans are likely to be paid to Chinese firms that will “retain control over construction and maintenance, with little technology transfer to local engineers.”

Joshua Kurlantzick, senior fellow for Southeast Asia and South Asia at the Council on Foreign Relations, told VOA that Chinese influence in the region is already “massive.” He said Chinese funding for the Vietnamese railway is in line with Beijing’s goal to expand its influence in Southeast Asia.

The railway “fits right into China’s efforts to link the Mekong region, and to connect them to China,” he wrote in an email.

Kurlantzick said that in Vietnam’s delicate balancing act between Washington and Beijing, China is taking the upper hand as he sees U.S. influence waning with the withdrawal of funding to Vietnam through USAID and weakening public diplomacy more broadly.

“China is by far the dominant economic power in Southeast Asia already, increasingly the dominant security power, and now, with the U.S. giving up its soft power in the region, China will increasingly bolster its soft power in the region, too, making it even more dominant,” Kurlantzick said.

Minh Son To, a research assistant focused on Vietnamese and Chinese politics at Singapore’s Nanyang Technological University, told VOA February 20 Hanoi has looked to Laos with concern after a China-funded high-speed rail threw the country into an “existential debt crisis.” Still, he said many are eager to see Vietnam develop.

“Any ‘China’ label is bound to evoke some concern, though I wouldn’t overstate that,” he told VOA. “Vietnamese know that they need development and infrastructure, regardless of where it comes from.”
…

Congressman Riley Moore recently wrote an op-ed urging the administration to ban all student visas for Chinese nationals to prevent the CCP from using U.S. academic institutions as platforms for espionage. Experts told VOA Mandarin that due to the number of espionage cases Chinese students in the U.S. involved in, it might be more helpful to close the CCP-sponsored Chinese students and scholars’ associations on U.S. campuses.

Click here for the full story in Mandarin.  
…

WASHINGTON — U.S. Treasury Secretary Scott Bessent traded policy complaints with Chinese Vice Premier He Lifeng on Friday, with Bessent telling Beijing to do more to curb fentanyl trafficking and rebalance its economy, and He voicing concerns about President Donald Trump’s new tariffs, the two governments said.

The top economic officials from the world’s two largest economies agreed to keep up communications, the Treasury said in a readout of the introductory video call.

“Secretary Bessent expressed serious concerns about the PRC’s counternarcotics efforts, economic imbalances, and unfair policies, and stressed the Administration’s commitment to pursue trade and economic policies that protect the American economy, the American worker, and our national security,” the Treasury said, using the acronym for China’s official name, the People’s Republic of China.

Earlier, Chinese state media reported that He expressed concerns to Bessent over U.S. tariffs and trade restrictions on China during the call.

The two sides had an “in-depth” exchange of views on important issues in China-U.S. economic relations, and both agreed to keep communicating on matters of mutual concern, according to a readout released by Chinese state media.

He, the lead China-U.S. trade negotiator on the Chinese side, and Bessent recognized the importance of bilateral economic and trade relations, the readout said.

More tariffs

China and the United States are seeking to manage their relationship as they stand on the precipice of a renewed trade war.

Trump imposed 10% tariffs on all Chinese goods in early February, citing China’s failure to stanch fentanyl trafficking.

Beijing retaliated by imposing targeted tariffs of up to 15% on some U.S. imports, including energy and farm equipment, and put several companies, including Google, on notice for possible sanctions.

Trump has also planned further reciprocal tariffs for all countries that tax U.S. imports, a move that is likely to further escalate global trade tensions. During his election campaign, Trump threatened 60% tariffs on all Chinese imports.

Trump said earlier this week he expected Chinese President Xi Jinping to visit the U.S., without giving a timeline for such a trip.

Bessent said on Thursday he would tell his Chinese counterpart that China needed to rebalance its economy and rely more on domestic consumption for growth and less on investment and exports.

“They are suppressing the consumer in favor of the business community,” Bessent told Bloomberg Television.

Similar arguments

The U.S. had a $295.4 billion goods trade deficit with China in 2024, down from a peak of $418.2 billion in 2018, the year Trump began imposing new tariffs on some $370 billion of Chinese imports.

But last year’s deficit rose $16.3 billion from 2023 as Chinese exporters rushed to beat a new round of Trump tariffs.

Bessent’s predecessor, former Treasury secretary Janet Yellen, met several times with He in recent years and lodged similar complaints about China’s state-led economic policies.

She argued during a trip to China last year that those policies were leading to excess production capacity that was threatening the viability of firms in the U.S. and other market economies, a warning that laid the groundwork for former President Joe Biden’s steep tariff hikes on electric vehicles, semiconductors and solar products.

He and other Chinese officials never accepted U.S. excess capacity assertions, arguing that China’s EV and other key industries are simply more competitive.
…

MANILA, PHILIPPINES — Philippine police arrested more than 450 people in a raid on an allegedly Chinese-run offshore gaming operator in Manila, the country’s anti-organized crime commission has said.

Initial interrogations suggested the suburban site had been operating as a scam center, targeting victims in China and India with sports betting and investment schemes, the commission said after the Thursday raid, which saw 137 Chinese nationals detained.

“We arrested around five Chinese bosses,” commission chief Gilberto Cruz told AFP on Friday, adding they faced potential trafficking charges.

Banned by President Ferdinand Marcos last year, Philippine online gaming operators, or POGOs, are said to be used as cover by organized crime groups for human trafficking, money laundering, online fraud, kidnappings and even murder.

“This raid proves that the previous POGO workers are still trying to continue their scamming activities despite the ban,” Cruz said.

He previously told AFP that about 21,000 Chinese nationals have continued to operate smaller-scale scam operations in the country since the online gaming ban.

International concern has grown in recent years over similar scam operations in other Asian nations that are often staffed by trafficking victims tricked or coerced into promoting bogus cryptocurrency investments and other cons.

President Marcos has put POGOs at the center of recent campaign messaging in the run-up to May mid-term elections, framing predecessor Rodrigo Duterte’s alleged tolerance of the sites as evidence of a too-cozy relationship with China.

Thursday’s raid is the latest in a series of busts this year, including one in January that saw some 400 foreigners arrested in the capital, including many Chinese nationals.

The Washington-based think tank United States Institute of Peace said in a May 2024 report that online scammers target millions of victims around the world and rake in annual revenues of $64 billion. 
…

WASHINGTON — PRC is out. China is in.

That is among the significant modifications to the U.S. State Department’s online fact sheet on China, which drops the country’s official name, the People’s Republic of China (PRC), in favor of just China.

Former President Joe Biden’s administration routinely referenced the Beijing government with the PRC abbreviation. Since former President Richard Nixon began the process to normalize relations with Beijing — which would end recognition of the government in Taipei, officially known as the Republic of China, on Jan. 1, 1979 — the United States has maintained diplomatic ties with the communist-run government on the mainland, while reducing the relationship with Taiwan to unofficial but friendly. 

“Taipei should take solace in the fact that the change in the term [from PRC to China] does not represent a policy change in the United States. The fact of the matter is that the U.S. still has its ‘One China’ policy, and under that policy, it maintains diplomatic relations with Beijing and robust unofficial relations with Taipei,” Russell Hsiao, Global Taiwan Institute executive director, told VOA.

“Since 1979, Washington has recognized the government in Beijing of the People’s Republic of China as the sole legal government of China, so the change in term is essentially a different way of presenting the same set of facts, all of which haven’t changed,” Hsiao said.

China considers Taiwan a rogue province. Nationalist forces, backed by the United States and commanded by Chiang Kai-shek, fled the mainland for Taiwan in 1949 after losing a civil war to the communist forces led by Mao Zedong. Chiang became Taiwan’s relatively benign dictator until his death in 1975. Mao ruled over the mainland as a rigid authoritarian until his death a year after Chiang died.

Washington continues to provide Taipei with weapons and has left the question ambiguous as to whether the United States would use its military to defend the island if Taiwan were to be attacked. The Taiwan Relations Act commits the United States to help Taiwan defend itself, but the final decision on military intervention would rest with the president and Congress.

Language changes last week by the State Department eliminated a reference to Washington not supporting Taiwan independence, but left intact was content noting that the United States opposes “unilateral changes to the status quo” by either side of the Taiwan Strait.

A significant change to the State Department’s web page on China, however, is the deletion of content on cooperating with allies on China-related issues and on helping Beijing with cultural matters and environmental protections. Instead, there is new language focusing on the U.S.-China trade relationship, noting the difficulty for American businesses to operate in China and that the Chinese economy is “one of the most restrictive investment climates in the world.”

Yet another shift in tone, in line with rhetoric used by President Donald Trump’s administration, is reflected by frequent references to the Chinese Communist Party (CCP). The party is directly accused of trying to “manipulate and subvert” United Nations organizations and other international bodies and seeking to “groom and install CCP members in leadership and other positions” in such groups.

In the newly edited fact sheet, the CCP is also blamed for “malicious cyber activity against U.S. government, private sector and critical infrastructure networks.” The document now notes the United States is dedicated to countering these activities “to help protect American citizens, businesses and industries.”

“These moves reflect an overall sense in Washington and within the Trump administration that engagement with China has failed and a tougher approach is warranted,” Rorry Daniels, managing director of the Asia Society Policy Institute, told VOA.

“This mood has been building — particularly in Congress — for years, and a change of emphasis is no surprise. However, swapping out PRC for China reflects a deeper and more dangerous narrative that attacks the CCP’s legitimacy as the governing authority of China. I expect this will be viewed with grave concern by Beijing and raised at the highest levels in the coming days and weeks,” added Daniels.

Chinese Foreign Ministry spokesman Guo Jiakun, responding during Thursday’s regular press briefing, expressed strong dissatisfaction with the website changes.

The State Department’s actions “misrepresent the facts, attack China’s foreign policy and peddle the so-called China-U.S. strategic competition. We strongly deplore and firmly oppose it,” Guo said.

The changes come after Trump imposed an additional 10% tariff on all imports from China. The president said he was taking the action because Beijing’s government has failed to stop the flow into the United States of the illicit opioid fentanyl.

Trump has also announced he intends to put in place further retaliatory tariffs on all trading partners that limit access for U.S. goods into their markets.

Song Ren of VOA’s Mandarin Service contributed to this report. Some information came from Reuters.
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China’s growing influence in Latin America has reshaped the region’s economic and political landscape, posing challenges for the United States and revealing a skewed view within Chinese academia about the bilateral relationship.

Click here for the full story in Spanish.
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ABOARD AIR FORCE ONE/ WASHINGTON — U.S. President Donald Trump said on Wednesday he expected Chinese President Xi Jinping to visit the United States, without giving a timeline for his trip.

Trump made the remarks to reporters on Air Force One and said “it’s possible” for the U.S. and China to have a new trade deal. A conversation or interaction between Xi and Trump is seen as crucial to a potential easing or delay of trade tariffs.

“We’ll have, ultimately, President Xi, we will have everybody coming (to the U.S.),” Trump said, while also speaking about other leaders potentially visiting the United States.

Xi last travelled to the U.S. in November 2023, in his fifth visit to the country as Chinese president, for a summit with then U.S. President Joe Biden, resulting in agreements to resume military-to-military communications and curb fentanyl production.

Trump and Xi had spoken just before Trump took office on January 20 and discussed issues including TikTok, trade and Taiwan.

Trump told reporters on Wednesday that he was talking to China about TikTok as the United States seeks to broker a sale of the popular app owned by Chinese parent firm ByteDance.

Trump said last week he had spoken to Xi since taking office as well, but did not offer details on the topics of that conversation. China’s foreign ministry did not directly comment on Trump’s remarks that day and instead referred reporters to their “scheduled” call before Trump took office.

Washington and Beijing have had tense relations for years over differences ranging from trade and tariffs and cybersecurity, and TikTok, Taiwan, Hong Kong, human rights and the origins of COVID-19.

Trump also again told reporters he could make a deal with Russia over the war in Ukraine.

“We can make a deal with Russia to stop the killing,” Trump said, adding he thought the Russians wanted to see the war end.

“I think they have the cards a little bit because they’ve taken a lot of territory, so they have the cards,” Trump said. 
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