Joint Push Against Beijing; China's New Threats to Japan | China in Focus

Welcome to China In Focus. I'm Alice Tang, in for Tiffany Meyer. Our top story. The seven most significant democracies in the world raising concerns over China's military and nuclear expansion. A new report from a bipartisan group on Capitol Hill exposing how the Chinese regime uses predatory practices to control the global supply of critical minerals. We have known that China is able and willing to weaponize its chokehold on critical minerals against adversaries like the United States. Despite knowing these dangers, the U.S. is no closer to achieving critical mineral independence than we were 15 years ago. Europe is pushing back against Beijing. Lawmakers across the European Union are joining forces to tackle the challenges posed by China. And in a war-like tone, China's foreign ministry fired a warning at Japan after a Chinese envoy threatened Japan's prime minister. The move follows Prime Minister Takaichi's comments on possibly military actions if China attacks Taiwan. Before we dive into today's news, don't forget to subscribe to our newsletter using the link below. It drops Friday morning straight into your inbox. Don't miss it. A warning from the world's seven major democracies against the Chinese Communist Party. In a joint statement Wednesday, G7 foreign ministers expressed concerns over China's military buildup and rapid nuclear expansion. They called on Beijing to increase transparency. Officials stressed they oppose any Chinese attempts to change the status quo by force. In the South and East China Seas, or across the Taiwan Strait. In other words, they are warning China not to take aggressive actions towards Taiwan or in disputed waters with other countries. The G7 brings together seven major democracies. Two from North America, the U.S. and Canada, and four from Europe, the U.K., France, Germany and Italy. Japan's the only member from Asia. The European Union also takes part, though it isn't a single country. This year's G7 foreign ministers' meeting was held in Canada on Tuesday and Wednesday, with guest nations including Ukraine, India, Saudi Arabia, Mexico and South Korea. New pushback against the Chinese Communist Party from the U.S. Congress. A bipartisan congressional report published on Wednesday reveals that the Chinese Communist Party manipulates critical minerals markets to further its global ambitions, and as part of a long-term plan, Beijing has pursued a decades-long strategy to dominate the rare earth supply chain. The U.S. House Select Committee on the CCP released a so-called predatory pricing report. NTD's Melinda Weisskopf has the details. Hi Steph, good morning. So this bipartisan report was from lawmakers on the House's Select Committee on the CCP. Essentially, it exposes how China is using predatory practices to dominate the critical mineral industry. Now the key point is predatory. Here China rose to dominance in the critical mineral space, not through fair competition, but through those practices, which has caused Americans to lose their jobs, their businesses and jeopardize U.S. national security. Now that's exactly what the regime aimed to do, was to force Western companies out of the critical mineral market and to hurt our economies. In the words of the China Committee Chairman John Molinar, as we saw last month with its rule on rare earths, China has a loaded gun that's pointed at our economy and we must act quickly. Now one example of how the CCP has done this is noted in the report through heavily subsidizing their suppliers and producers. Another predatory practice is that the CCP officials would lure Western companies to collaborate with Chinese companies and then sell their Chinese products below the market prices. This was to put Western competition out of business. Now they also made use of a legal framework that gave the regime the ability to raise and lower prices to favor its national security interests. Now this is an issue that officials have known about for quite some time, Steph, but the impact became more evident after the trade war started and CCP officials imposed export controls over critical minerals, minerals that are used in everyday products like electronics, medical equipment, you name it. But notably military and defense gear, the production of those uses those critical minerals. Now the group of bipartisan investigators predict that Chinese miners are expected to continue dominating this industry through 2030. As previously described by one congressman, this is our single greatest strategic vulnerability. Listen to what one of the congressmen on this committee said about it. Since 2010, we have known that Western countries like the United States are dangerously dependent on China for critical minerals and rare earths. We have known that China is able and willing to weaponize its chokehold on critical minerals against adversaries like the United States. Despite knowing these dangers, the US is no closer to achieving critical mineral independence than we were 15 years ago. Now, Steph, as for how the US should move forward here, the committee made a few suggestions. One is to appoint a critical minerals czar. Trump is already preparing to do this. They also propose creating a strategic resources reserve similar to the federal oil reserve. The committee also wants to create a critical minerals tax credit to encourage more production here in the US. But with that said, the US also needs to strengthen its capacity to mine for minerals and expedite permits, which is a big piece of the equation that's been really difficult to do over the years due to pushback from environmental groups. Mining and recovery efforts discuss how to expedite permits while keeping those important safeguards in place to protect the environment. There will be a hearing next week on Capitol Hill diving into this topic specifically. So we'll be watching out for that and have more details for you on that next week. Thank you. The pushback against Beijing also comes from Europe. Lawmakers from across the European Union met in Brussels to address the challenges posed by partnerships with the Chinese Communist Party. NTD international correspondent David Vévez reports. While the EU as a whole is moving toward gradual de-risking from Beijing, several countries such as Spain and Hungary have recently reinforced ties with China through Belt and Road projects, underlining the bloc's difficulty in uniting. With the Eurozone experiencing slow economic growth and facing serious issues regarding energy sources and rare earth minerals supply, some member states are looking for alternative solutions. At the Interparliamentary Alliance on China last week in Brussels, legislators from across Europe highlighted some countries' dependence on China. Patterns of Chinese Communist Party influence, often at the expense of national interests, emerged as members of IPAC discussed the challenges their countries face in relations with Beijing. Scottish politician Stuart MacDonald said there is a lack of awareness in Scotland about the long-term risks of deals made with China. We have an issue in the energy sector, particularly the renewable energy sector, very heavy over-reliance on China there. We have an over-reliance on China in our higher education sector, particularly our universities, which have become so dependent on the funds that come from the numbers, the large volumes of students from China. He said one example is how China's state-owned PetroChina has a stake in Scotland's critical energy sector. While PetroChina decided to close its oil refinery in the country, experts know that Scotland no longer controls how its energy is produced or regulated. Due to several factors, Scotland now has some of the highest energy costs in Europe. We've just closed our last remaining oil refinery, 50% owned by PetroChina. Scotland is unique in that it is an oil-producing country with no oil refinery. This is madness. The result of that has been quite an enormous hit to our economy nationally, a very big hit to that economy locally with the loss of hundreds of jobs. But we had in Grangemouth, which is the name of the oil refinery that closed down, a huge stake from PetroChina. That should never have been allowed to happen. Smaller countries also voiced concerns that the Chinese Communist Party takes advantage of large loans accepted by their governments. Members of parliament from Balkan countries, such as Bosnia-Herzegovina and North Macedonia, said they are facing similar challenges with Chinese investments. They have been financing the building of a new coal factory in Tuzla region, in the north of Bosnia-Herzegovina, 613 million euros. Also providing laws for different infrastructural projects, strategic energy, roads, transportation infrastructure. So we see their growing influence and are not really aware of what it will cost us in the future. Graz says beyond economic issues, there might be threats to democracy as well. As the Chinese Communist Party does not respect democratic processes and could impose political narratives and agendas to the country's legislature. I think what they are trying to show is that a non-democratic model would also work under the circumstances that the Western Balkans are currently in, in between getting more integrated into the Western world, as we call it, and the Western standards. So I think they're trying to show, well, this might work for you, but I don't think it really would ever work. The proposed solution is to diversify supply sources, reduce global dependence on China, and strengthen unity among EU countries using legislative tools. David Vives, NTD News, Brussels. China's foreign ministry on Thursday warned that Japan would bear the consequences, delivering the message in a war-like tone. The statement marks an escalation following a post by a Chinese diplomat in Japan, threatening to cut off the head of Japan's prime minister. Last week, Japanese Prime Minister Takahashi made remarks on Taiwan's security while answering questions in parliament. She suggests that if China attacks Taiwan, Japan will respond with military actions. Later, when asked by a lawmaker whether she would retract her remarks, she refused. A Chinese diplomat has sparked outrage after posting on X, threatening to cut off the head of Japan's prime minister. Tokyo lodged a strong protest demanding Beijing take action to ease tensions. On Wednesday, Taiwan's foreign minister slammed it as classic wolf warrior diplomacy, saying the envoy was stoking anti-Japan hatred among the Chinese people. A day later, China's foreign ministry appeared to confirm the tone of the Taiwanese diplomat, warning that if Japan dares to intervene militarily in the Taiwan Strait, it would be considered an act of aggression and China would strike back head-on. Meanwhile, Chinese state media launched personal attacks on Japan's leader using phrases like troublemaker, spouting nonsense and brain damage. Anti-Japanese rhetoric is once again surging online. On Thursday, G7 foreign ministers released a joint statement emphasizing the importance of peace and stability across the Taiwan Strait and opposing any attempt to change the status quo by force. Taiwanese President Lai Ching-da said this shows a global consensus on defending peace in the region. FBI Director Kash Patel made a surprise appearance at the White House press briefing on Wednesday, just a week after returning from a visit to China. Patel said the FBI has seized more than 4,000 pounds of fentanyl so far this year, which represents a 31 percent increase from the same period last year. He added that the amount is enough to kill roughly 127 million Americans. That's roughly 40 percent of the entire U.S. population. Patel says his trip was aimed at stopping chemicals used to make fentanyl from entering the U.S. Take a look. The People's Republic of China has fully designated and listed all 13 precursors utilized to make fentanyl. Furthermore, they have agreed to control seven chemical subsidiaries that are also utilized to produce this lethal drug. Effective immediately, essentially, President Trump has shut off the pipeline that creates fentanyl that kills tens of thousands of Americans. These substances are now banned and they will no longer be utilized by the Mexican drug trafficking organizations or any other DTOs around the world to make this drug. Patel's visit marked the first time an FBI director has been to China in the past decade. A new scam, Center Strike Force, has been launched to crack down on crypto fraudsters. The U.S. Attorney for D.C. says many of them are backed by Chinese organized crime. Here's Janine Perreault on more. The consequence of these scams are devastating. Older Americans in particular are targets of these scams. Many of them lonely. Many of them looking to speak to someone who communicates with them. Their entire life savings gone. Their retirement funds gone. Left with no opportunity to go back into the workforce and to re-earn money. Perreault said experts estimate that last year alone, Americans were scammed out of more than $9 billion from crypto fraud. And that's just based on under-reported information. She explained how the fraud usually works. A scammer will reach out through text or social media, gain the person's confidence and convince them to invest. Perreault said that's why they have launched the scam, Center Strike Force, to take down and recover stolen funds. She said they have the authority to charge foreign defendants and seize foreign property. So far, Perreault said they have seized more than $400 million and additional actions now underway will lead to the forfeit of $80 more million. Coming up, the Trump administration fighting the terrorist organization led by the head of Venezuela, Nicolas Maduro. Meanwhile, Beijing has given Maduro an economic lifeline. Chinese online giants Xi'an and Timu are taking a hit from Europe. That's as the European Union moves to end duty-free parcels from China. The world's biggest shopping event wrapped up in China with a muted mood amid a sluggish economy. More on that after the break here on China In Focus. Welcome back to China In Focus. I'm Alice Tang. The Chinese Communist Party has given the Venezuelan regime an economic lifeline. This comes as the Trump administration ramps up pressure on the foreign terrorist organization led by Nicolas Maduro. NTD's Washington correspondent Luis Eduardo Martinez has more on the story. The Chinese Communist Party has announced a zero tariff agreement with the Venezuelan regime on over 400 categories of products. The move throws an economic lifeline to the Venezuelan regime which will allow them to buy Chinese products at discounted prices and will allow the Chinese Communist Party greater control over the South American country's economy. Venezuela right now is a safe haven where Hezbollah, Hamas, the drug cartels, Colombian guerrilla operate freely and they are part of this liaison with the regime. The CCP has lent over $60 billion to the Venezuelan regime over the past two decades and has also endowed the Venezuelan National Guard with equipment to repress its citizenry and it has built a ground satellite station in Venezuela allowing the Chinese Communist Party a foothold in the western hemisphere. It's been America first, peace, free strength, common sense, revive the warrior ethos, rebuild the military, re-establish deterrence. We're going to defend the homeland. We're going to deter China. We're going to make sure our allies do their part in burden sharing. We're going to revive the defense industrial base. The Trump administration has zeroed in on the links in between the Venezuelan regime and the Chinese Communist Party and directed the Department of War to counter the malign influence stemming from foreign terrorist organizations operating from Venezuela and by the Venezuelan regime. Now, imperialism is inventing an even more bizarre narrative. Since they cannot say that Maduro has weapons of mass destruction, since they cannot say that we have hidden biological or chemical weapons, they invent a bizarre narrative. My advice to foreign terrorist organizations, do not get in a boat. I mean, if you're trafficking drugs to poison the American people and we know you're from a designated terrorist organization, you're a foreign terrorist and a trafficker, we will find you and we will kill you. The Venezuelan opposition leader and Nobel Peace Prize winner Mayra Corina Machado, who is in hiding in Venezuela, has thanked the Trump administration for their support. Finally, a leadership that is addressing this tragic situation in Venezuela that has been evolving for 26 years, as it should. We have been asked that this criminal structure be addressed using law enforcement. This week, the USS Gerald S. Ford, the largest and most advanced aircraft carrier in the world, enters Southern Command's area of operation to support operations against foreign terrorist organizations in the region. Reporting from Washington, D.C., Luis Eduardo Martinez, NTD News. Chinese online giants like Xi and Antimu could soon take a hit from Europe. They'll face higher duties on low-value packages shipped from China to the European Union. That's according to EU Trade Commissioner Maros Sefcovic Thursday. It comes with concerns growing over Chinese goods being dumped in Europe. Sefcovic proposed the so-called de minimis exemption should be removed in the first quarter of next year, two years earlier than planned. The de minimis rule means goods ordered online below €150 or $175 don't face customs duties. The likes of Xi and Antimu could be hit as they send products from Chinese factories directly to shoppers. They also offer low prices due to the customs waiver. Sefcovic said in a letter European industries, particularly retailers, believe this distorts competition and de minimis should be stopped without delay. The European Commission proposed removing the exemption two years ago, but only from 2028. That's when a wider overhaul of the EU's customs regime is due to take effect. Xi Yin declined to comment. Timu and others affected, including AliExpress and Amazon, didn't immediately respond to requests for comment. The number of low-value e-commerce packages arriving in the block doubled last year to 4.6 billion, with more than 90% coming from China. Thursday's proposal follows a similar move in the US earlier this year. Washington ended its own de minimis policy that allowed duty-free entry to parcels worth less than $800. The world's biggest shopping event, China's Single Day Sales Festival, wrapped up on Wednesday with a rather mew-thin mood. Over a month of promotions on the country's biggest e-commerce platforms still couldn't get consumers excited. It's time for our new segment, China Watch, where we take a closer look at what's happening in China. China's Singles Day Sales Festival is due to close on Wednesday. It ends more than a month of promotions on the country's largest e-commerce platforms. But the world's biggest shopping event faced more cautious spending in China. The country's consumers have been hesitant to spend due to a long-running property crisis and concerns about income security. It's forced retailers to turn more aggressive with year-round discounting. They've also rolled out billions of dollars in consumer subsidies and coupons and long-running sales events. Many sites kicked off this year's Singles Day, which is November 11th, in the first half of October, making it the longest festival to date. A Chinese man posted a video on social media showing an almost empty truck carrying only a small amount of goods. He said the items were meant for the Single Day Sales Festival, suggesting that businesses had placed too few orders. Some other Chinese netizens shared why they're unfazed by this year's big sales. People who used to love going out shopping, even traveling across provinces to buy things, are now busy taking care of both their parents and children. Some have lost their jobs. Others had their salaries cut. And on top of that, they have a property losing value. Now that even banks have started selling houses themselves, you can imagine what the situation is like. For years, Single Day Sales in China have been notably sluggish. The event has been head-backed by a struggling property market, a bleak job market, and a worsening international trade environment. Overdue wages and delayed payments have sparked protests across China. Now a bio company is drawing the frame. It has filed over 100 lawsuits in the past year seeking payments delayed by government agencies. The total debts involved reportedly approach 60 million dollars. During the pandemic, China carried out mass COVID testing nationwide. These tests are typically outsourced by state-run health agencies to bio companies. Bio firm HybriBio was one of them. State contracts promoted sales to grow many times when COVID was at its peak in China. But two years later, the company still hasn't received payments from Chinese authorities. Court documents show that the total debt involved amounts to tens of millions of dollars. Meanwhile, the bio firm's suppliers are demanding payments from the company. With no other option, the company is forced to sue the agencies. But the process has been difficult. That's all for today's China In Focus. I'm Alice Tang, in for Tiffany Meyer. If you have any feedback on the show or have something you'd like to see us cover, send us an email at chinainfocus at ntd.com. We'd love to hear from you. For around-the-clock original news coverage, visit us at ntd.com or download our NTD app. Thanks for watching. See you soon.