Temu's Parent Company Faces Challenges From U.S., EU, And At Home | China in Focus

Welcome to China In Focus. I'm Tiffany Meyer. Our top story. Saudi Arabia is the second Middle Eastern country to get F-35s after Israel, but its ties with China are sparking concerns over sensitive technology, with experts weighing Washington's options to protect the deal. T-Move's parent company, PDD Holdings, is facing mounting challenges both in China and overseas. We'll break down the economic pressures hitting the company on both fronts. A new report shows the U.S. has been the largest recipient of Chinese loans and grants over the past two decades, totaling $200 billion. We break down where the money went. A former top New York state official is on trial for allegedly acting as a foreign agent for China. The proceedings are revealing her deep ties to Beijing and a lavish lifestyle. A stark warning from Britain's MI5. Chinese agents are targeting UK lawmakers through fake recruiters and LinkedIn. Political interference concerns are growing, and the government is rolling out new countermeasures. Chinese e-commerce giant PDD Holdings, the parent company of T-Move, is facing a growing list of challenges both inside China and abroad. At home, it's facing steep competition with Xi'an and Alibaba at a time when Beijing's experiencing an economic slump. And overseas, T-Move is struggling to regain its footing after the U.S. closed a key tax loophole, with Europe now preparing to do the same. In China, T-Move is experiencing declining consumer spending, with economic data last Friday pointing to a continued slowdown. It's pressuring all of China's major online retailers, just as rivals like Alibaba ramp up everything from food delivery to rapid commerce services. Meanwhile, T-Move has been competing with Xi'an overseas ever since Washington ended the de minimis exemption. That rule allowed Chinese retailers to ship small parcels to U.S. customers tax-free. But ever since that loophole closed earlier this year, T-Move's revenue fell sharply, with monthly active users dropping as much as 46 percent. To compensate, the company is trying to push more cheap goods into European markets. But the European Union is moving to abolish its own tax exemption for low-cost packages and wants to make these changes two years earlier than planned. Finance ministers from every member of the EU have already approved the move, which could take effect as early as 2026. Former New York state government senior official Linda Sun is on trial. She's accused of acting as an unregistered agent for China during her time in office. Evidence from Sun's home suggests she received valuable benefits through her ties with the Chinese consulate general in New York. NTD's Flora Hua has the story. Several FBI special agents testified on their search at Sun's residence in late July last year. This is a two-story home located in Long Island, New York. FBI found four expensive vehicles the couple own, including a Ferrari Roma and a Range Rover produced that year. Going to the second floor at Sun's closet, multiple designer bags were including ones of Chanel, Dior, and at least two Hermès Birkins. One of the highest roles Sun hosted as a public servant was Governor Houkou's deputy chief of staff. We will continue to report on how she could afford such a lavish lifestyle. A government witness and FBI agent says the search was to look for evidence of crime, as well as documents tied to China. Things the FBI recovered included a letter from former Chinese consul general Zhang Qiyue to Linda Sun, saying, Your personal friendship and kind support will always be cherished. A business card of then-deputy consul general was also found at Sun's home. Zhang served as the Chinese consul general in New York from 2014 to 2018. Sun's close ties to the Chinese consulate continued through the next administration. Huang not only invited Sun to Lunar New Year dinners, but also appeared to have handed Sun coupon-like notes to shop and dine in at American Dream, a large shopping mall in New Jersey. Some notable brand names printed on the notes included Hermès. Sun's interaction with China doesn't stop here. Evidence reveals she would fly to China to attend major CCP events. Sun received two invitations to attend People's Republic of China's 70th founding anniversary in 2019. These events were hosted in the country's most prestigious venues, where the CCP hosts state visits. One of the organizers was the United Front Work Department. The regime head Xi Jinping once described the arm as a magic weapon to build connections outside the party to achieve the CCP's goals. Flora Hua, NTD News. And on Tuesday, Linda Sun's mother testified as a witness in the trial. She discussed a bank account open at Signature Bank in April 2020. That's a joint account held by her and her son-in-law, Chris Hu. Prosecutors have accused Sun and her husband, Chris Hu, of using Sun's mother to launder money. Sun's mother has been granted witness immunity, meaning she won't be charged based on her testimony. But she could face legal consequences for false statements. She testified that she had little knowledge of her own bank account over the years, aside from handling taxes. During cross-examination, she added that she only later learned the account was set up to buy a condo for her, but the family never went through with the purchase. Two hundred billion dollars. That's the amount of Chinese loans and grants funneled to the U.S. over the past two decades, making it the largest recipient compared to any other country. Many of the loans help Chinese companies acquire stakes in U.S. businesses and high-tech industries such as robotics, semiconductor and biotech. These are all fields that Beijing wants to dominate in. Here's a map of projects and activities funded by Chinese loans and grants in the past two decades. They aided the construction of liquid natural gas projects in Texas and Louisiana, as well as data centers in Virginia and terminals at New York's JFK Airport. Chinese state-owned creditors also financed a natural gas pipeline in Texas and an oil pipeline in North Dakota. They also financially supported a slew of Fortune 500 companies based in the U.S., like Amazon, Tesla and Boeing. Many loans were funneled through shell companies to hide their origins. The first Trump administration tightened scrutiny on foreign investments, making it harder for Chinese companies to acquire U.S. firms in As a result, Chinese firms have shifted their focus to Britain, Germany and the Netherlands. In total, China has provided more than $2 trillion in loans and grants internationally since 2000. President Trump welcoming the Saudi Crown Prince at the White House for a day of pomp and circumstance. The Saudi Crown Prince Mohammed bin Salman pledging to boost his country's investment in the U.S. from $600 billion to $1 trillion. NTD's Washington correspondent Mario Tzu has the story. The President greeted the Crown Prince on the South Lawn of the White House this morning. The ceremony included a military band and a flyover. And the Crown Prince, before a private lunch with the President, already announced to reporters that he's upping his previous $600 billion pledge in investments to the U.S. to $1 trillion. Take a look at that announcement. We believe in what you're doing, Mr. President. It's really creating a lot of good things and good foundations to create more economic growth, more business in America. And it will also work for the world peace. We're going to announce that we are going to increase that $600 billion to almost $1 trillion of investment, real investment and real opportunity by details in many areas. And the agreement that we are signing today in areas of technology, in AI, in earth materials, magnet, et cetera, that will create a lot of investment opportunities. So you are doing that now? You're saying to me now that the $600 billion will be $1 trillion? Definitely, because what we are signing to facilitate that. And I like that. No, that's great. I appreciate that. That's great. We're doing numbers that nobody's ever done. This is coming as President Trump is touting his administration's economic agenda and tariff strategy and ramping up his talks on affordability before the midterm elections next year, saying today that that $1 trillion investment is equivalent to national security for America. There was warmth between the two leaders on Tuesday at the Oval Office as the approved F-35 sale to Saudi Arabia raised national security concerns. The deal makes Saudi Arabia the second Middle Eastern country after Israel to acquire these fighter jets. Experts are weighing how the U.S. can prevent China from exploiting Saudi Arabia's security ties. Joining entities Don Ma to discuss President Trump's meeting with the Saudi crown prince is Rick Fisher. He's a senior fellow at the International Assessment and Strategy Center and an international military analyst. Could you set the stage for us here? How significant is this sale? The sale is one of the most significant military strategic developments in U.S.-Middle East relations in many years. Allowing Saudi Arabia to purchase the F-35 is not just the sale of a jet fighter. It is inviting Saudi Arabia to join a global intelligence infrastructure, because at the heart of the capability of the F-35 is a constantly updated, vast intelligence database that is manipulated by artificial intelligence softwares to produce specific targeting against an amazing array of electronic and kinetic threats. Allowing Saudi Arabia into this network, a virtual alliance, so to speak, is a very significant and substantial advance in the Saudi-American strategic relationship. As you alluded to, Rick, this is very significant. So far, only Israel has the F-35s. This would make Saudi Arabia the second nation in the Middle East to have it. What does the U.S. get out of this? How could this benefit U.S. national security interest? We have to remember that we are in a vital strategic competition in the Middle East with China. China has, for decades, been organizing and advancing its influence to try to displace the influence of the United States. It has a very significant military relationship with Saudi Arabia. They recently conducted naval exercises. And China has organized a coalition of all Arab nations to try to advance mutual goals, namely Chinese goals, and to displace American influence. The United States really, in a way, had little choice but to sell the F-35 to Saudi Arabia because if we didn't, in just a few short years, China would probably be able to sell multiple fifth-generation fighters to Saudi Arabia. That would very much move its national security infrastructure towards Chinese technology and Chinese influence. Today, Saudi Arabia mainly uses American technology and is firmly in the American technology sphere, which is strengthened by the F-35 sale, even though there are substantial concerns both inside the U.S. government and outside the U.S. government that sale of the F-35 to Saudi Arabia could pose a potential risk of compromising its technology to the Chinese presence in that country. And of course, selling this fighter to Saudi Arabia without a comprehensive Saudi-Israeli political settlement path forward is unsettling for Israel. What can the U.S. do to ensure that China doesn't exploit this deal, this F-35 sale, because there is sensitive American technology in that plane? Well, yes. There are many procedures the United States can take, and the United States takes most of these measures with all of the F-35 sales partners, over 20 countries now to purchase or operate this aircraft. All training of pilots takes place in the United States, training of maintainers for the most part as well. So in a sense, we get to know the community that will be flying and maintaining the F-35. And this will have to be extended to Saudi Arabia as well. And of course, there's control over the enabling intelligence database. In order to sustain access to that intelligence database, Saudi Arabia and the United States are going to have to be in agreement with many aspects of behavior going forward, to include a responsible but non-violent relationship with Israel. A major congressional commission is sounding the alarm. It says America's ability to counter China is being hampered by bureaucratic infighting. In its annual report, the U.S.-China Economic and Security Review Commission says Washington must create a single agency to end the turf wars that are weakening expert controls and sanctions. Commissioners describe the current system as feudal states fighting over pieces of the same mission, leaving gaps that Beijing exploits with what the report calls systematic and persistent circumvention tactics. The panel also wants Congress to give the Bureau of Industry and Security more power to stay ahead in AI chips. On the military side, the commission is calling for bigger budgets for the U.S. Space Force to match China's rapid buildup in orbit. The Pentagon is setting tech priorities, unveiling six areas it says will define the future of U.S. military dominance. According to Under Secretary of War Emile Michael, the shift is meant to speed up battlefield innovation as global threats accelerate. These six critical technology areas represent the priorities that will deliver the greatest impact, the fastest results, and the most decisive advantage on the battlefield. These priorities will ensure that our warfighters never face a fair fight. The Pentagon's list includes AI, biomanufacturing, contested logistics, quantum and battlefield information dominance, directed energy and hypersonics. Under Secretary Michael says adversaries are moving fast and U.S. forces need these technologies now, not years from now. Michael said yesterday the Pentagon would work with partners in the private sector and academia on these critical technology areas. Coming up, a stark warning from Britain's MI5. Chinese agents are targeting UK lawmakers through fake recruiters and LinkedIn. Political interference concerns are growing and the Japan is urging its citizens in China to take extra safety precautions as a major diplomatic clash deepens. The warning comes after the prime minister's comments on a potential China's attack on Taiwan. Welcome back to China In Focus. I'm Tiffany Meyer. A warning has come from the top levels of the UK government about the Chinese Communist Party. On Tuesday, UK Security Minister Dan Jarvis said the government will not tolerate Beijing's covert and calculated attempts to interfere with the UK sovereign affairs. This follows a warning from UK intelligence agency MI5 to lawmakers about the threats posed by Chinese spies. MI5 have stated that this activity is being carried out by a group of Chinese intelligence officers often masked through the use of cover companies or external headhunters. Let me speak plainly. This activity involves a covert and calculated attempt by a foreign power to interfere with our sovereign affairs in favor of its own interests and this government will not tolerate it. Jarvis announced a program to safeguard sensitive information from espionage including diplomatic matters, trade secrets and UK policy development. I can announce that the government has committed to investing 170 million to renew the sovereign encrypted technology our officials use to do their vital work. I can also announce that this government has completed the removal of surveillance equipment manufactured by companies subject to the national intelligence law of the People's Republic of China from all sensitive sites we maintain in the UK and around the world. Jarvis acknowledged the value of UK engagement with Beijing on education but he stressed that countries like China also try to influence independent research and interfere with activities on British campuses. Ministers have already raised our concerns about this activity with their counterparts in Beijing and the office for students has recently issued new guidance to help universities protect the freedoms their staff and students enjoy. The UK opposition party is calling on the government to add China to their enhanced tier of the foreign influence registration scheme. Anyone working on behalf of countries on this list must register their activities with the UK government. Right now only Iran and Russia are on the list. The opposition is also urging the government to block China's plan to build a mega embassy at a sensitive location in London. Next the Daily Mail reports that intelligence agencies are looking into whether a BBC journalist acted as a spy for China. The case is highly sensitive as it could involve the security of the Five Eyes Alliance where US and UK agencies share top secrets. The Sunday Report says the BBC journalist used his position to approach executives at international organizations while working for another media outlet in Brussels. He reportedly used sexual advances to target individuals, a tactic known as a honey trap. The reporter's targets allegedly have knowledge of sensitive military intel. The investigation is now looking into what secrets he may have sent back to Beijing. Calling China a threat to Britain, the UK's shadow foreign secretary questioned whether BBC has vetted its staff before hiring them. She is calling for an urgent resolution to the investigation demanding to probe whether the BBC was actively undermining the UK national security. Meanwhile, European news site EURACTIV reported last month that a former political reporter is also under investigation for a similar reason. The news site updated the story on Monday saying NATO officials complained about this reporter's inappropriate behavior towards its staff about two years ago. Japan is urging its citizens in China to step up safety precautions and avoid crowded places. The warning comes amid a deepening dispute with Beijing over Japanese Prime Minister Sanai Takeichi's comments on Taiwan. Japan has warned its citizens in China to step up safety precautions and avoid crowds. That's as the most serious diplomatic clash in years continues between the two countries. Japanese Prime Minister Sanai Takeichi sparked the dispute after suggesting that a Chinese attack on Taiwan could trigger a military response from Tokyo. A Japanese envoy met his counterpart in Beijing on Tuesday to try and dispel tensions, but there were no signs of breakthrough. China's foreign ministry said it had pressed it to the meeting for Takeichi to retract her remarks, but a top Japanese official suggested Tokyo was in no mood to do so. Beijing has urged its citizens not to travel to Japan, sending tourism-related stocks in Japan plunging. Chinese people form the largest number of tourists to the country, official figures show, accounting for nearly a quarter. Meanwhile, Chinese state media has aimed vitriolic commentary at Takeichi, and a Chinese diplomat has posted threatening comments about her online. It's prompted Japan's embassy to encourage citizens living in China to respect local customs, not travel alone, and take extra care when with children. Beijing claims democratically governs Taiwan as its own and has not ruled out using force to take control of the island. Taiwan's government rejects Beijing's claims. Taiwan is located just over 68 miles from Japanese territory, and the waters around it offer a vital sea route for Tokyo's trade. Japan also hosts the largest contingent of US military overseas. Tokyo on Tuesday said that the government hoped issues over Taiwan would be resolved peacefully through dialogue. That's all for today's China In Focus. I'm 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 chinainfocusantd.com. We'd love to hear from you. For on-the-clock original news coverage, visit us at ntd.com or download our NTD app. Thanks for watching. See you tomorrow.