ExclusiveUS Greenlights 2 Arms Sales to Taiwan Within a Week

Welcome to China In Focus. I'm Tiffany Meyer. Our top story, one billion dollars. The U.S. is greenlighting two arms sales to Taiwan in a single week despite China's warning. Body language clips online are sparking a political dispute with Japan accusing China of misusing the footage and now lodging a formal complaint. Under China's threats to cut rare earth supplies, three American companies are speaking out about their experiences and the challenges they're facing. China's sweeping export controls this year were a significant wake-up call. Banks in China are now selling repossessed homes directly at steep discounts, but demand remains weak and a declining market. A Pacific island nation celebrates its ties with Taiwan as Tuvalu's prime minister prepares to sign the country's first treaty during a visit. The U.S. is greenlighting two arms sales to Taiwan in a single week despite China's warnings. The two deals total one billion dollars. The latest sale to Taiwan, confirmed Monday, is valued at 700 million dollars and includes advanced missile systems. It comes just days after the first arms sale to Taiwan since President Trump took office. The sales also follow weeks after Trump's trade talks with Chinese leader Xi as the two sides continue negotiating a rare earth minerals deal. Beijing has condemned the previous arms sale, saying Taiwan is the first red line that must not be crossed in U.S.-China relations. Five days after China's protests, the Trump administration approved the second sale. The advanced missile system would strengthen Taiwan's air defense capabilities. Ukraine has deployed the same weapons to defend against Russia's invasion. These weapons are expected to be completed by 2031. So far in the Indo-Pacific, the U.S. has only sold the advanced missile system to Australia and Indonesia. Taiwan is preparing its citizens for a potential Chinese invasion, spending millions of civil defense handbooks to households across the island this week. The de facto U.S. ambassador to Taiwan says America's commitment is rock solid, emphasizing support for Taiwan to achieve peace through strength. The Chinese Communist Party sees Taiwan as part of China and has pledged to take it by force if necessary. Under U.S. law, America is required to sell weapons to Taiwan so it can defend itself. Meanwhile, tensions between China and Japan are escalating over Taiwan. On Wednesday, Beijing said there's no market for Japanese seafood exports. Chinese market traditionally takes more than 20 percent of all Japan's seafood exports. Tensions spiked after the Japanese prime minister said that a Chinese attack on Taiwan could trigger a military response from Japan. Following the remarks, Chinese council general in Tokyo threatened to cut off the Japanese prime minister's head. The pressure didn't stop here. China also fired bullets into the sea near Japan. China remains Japan's largest source of inbound tourists. In recent days, Chinese travelers have canceled hundreds of thousands of plane tickets to Japan. China has also pulled two Japanese films from its box office lineup. And in the political arena, Japan is lodging a complaint against China over viral social media videos from a recent high-level meeting. The clips that were aired by Chinese state media CCTV drew sharp criticism online. Japanese internet users commented on the Chinese official's arrogant posture with his hands in his pockets. The meeting on Tuesday between senior Japanese and Chinese officials in Beijing was meant to ease tensions, but there was no sign of progress. Japan says the videos misrepresent the diplomatic talks. Watch. We have lodged complaints against the Chinese side regarding the press arrangements being made without proper coordination with Japan. The video appears to show a Chinese official speaking with his hands in his pockets, while the Japanese official seems respectful and apologetic with his head bound. In reality, the Japanese official was simply leaning in to hear the interpreter. A 7-eleven committee hosted U.S. leaders in rare earths and magnets on Wednesday after it released a report on China's dominance and predatory practices in the market. Here's what the committee chair, Michigan Representative John Molinar, had to say. When the Chinese government controls critical minerals, it then has the power to dictate what we say and what we do. This is because if we don't do what they want, they can turn off the flow of critical minerals and cripple our industry. This is not a theoretical problem. The Chinese government has weaponized the rare earth supply chain against the United States. The House committee's report revealed how China has manipulated critical mineral prices for decades. It went on to accuse Beijing of using the minerals as an economic weapon. Today, the committee hosted three domestic companies to share their experience and challenges. Neuron Magnetics makes the world's only permanent magnet with no rare earths needed. Lithium Americas is developing the largest lithium deposit in the U.S. And MP Materials operates the only rare earth mine in the U.S. located in California. Here's what the chief communications officer of MP Materials had to say about the situation. China's sweeping export controls this year were a significant wake-up call. They disrupted supply chains, triggered factory shutdowns in the United States, and they underscored an important truth. Rare earths may be a small upstream industry worth just tens of billions of dollars, but they underpin trillions in downstream economic activity and millions of jobs. Physical AI, robotics, advanced semiconductors, electric vehicles, blenders, everything. These are the industries that are the backbone of the U.S. economy. This vulnerability created the conditions for urgent coordinated action. The companies say many solutions are needed, including tackling China's predatory pricing and creating real price transparency. They also call for simplifying permits and rewarding firms that buy domestic minerals and magnets. Our access to life-saving medicine and simple technology may be at risk unless the U.S. government acts fast. The congressionally appointed U.S.-China Commission released its annual report detailing how the CCP could weaponize its supply chain controls on pharmaceuticals and technology. NTD's Washington correspondent Jeff Bradley has the details. Chinese producers wield significant control over active pharmaceutical ingredients and key equipment used in the U.S. electrical grid. U.S. reliance on China creates a dangerous dependence that China can weaponize if it wants to. The U.S.-China Economic and Security Review Commission says the Chinese Communist Party is aiming to weaponize U.S. reliance on Chinese medicine and electronics, with the threat of halting exports to have the upper hand in any bargaining negotiation. Now, they also examined other areas that could harm the U.S. and global economic stability, like the invasion of Taiwan, for instance. Chinese incursions into Taiwan's air defense identification zone have increased 15,000 percent over five years, from only 20 in 2019 to over 3,000 in 2024. And they're on pace for even more incursions in 2025. Beijing used its monopoly over critical mineral refining to impose export controls on rare earth elements. We can be sure China will be ready to weaponize these choke points again when politically advantageous. A couple months ago, the CCP put export restrictions on rare earth elements, and that move triggered a trade war between the U.S. and China that later calmed down by a recent trade deal involving lower tariffs and removing those export restrictions. China has a monopoly on processing these rare earth elements, and without them, it could harm the U.S. and world economies and their national security, as rare earths are used in things from iPhones to missiles. The commission also says the U.S. needs more data on just how reliant we are on Chinese products. That says some products that don't overtly say they're made in China may have parts that are made in China, making the U.S. just unknown to how vulnerable it may be to certain supply chains controlled by China. A lot of the time when we talk about getting drugs or medications, other things from India, for instance, a lot of the original inputs to that medication, to those pharmaceuticals, came from China originally. The commission recommends responding to China's non-market practices by uniting with other countries to place import barriers on subsidized Chinese products, and the commission also raised the necessity for the U.S. to de-risk from the Chinese-dominated industries and instead rely on itself and its partners. Reporting by Jack Bradley, NTD News. Sluggish economy, dripping house prices, struggling home sellers in China are facing a new challenge as banks step into the housing market. Repossessed homes are now being sold directly by banks, often at steep discounts, as Beijing's economy continues to decline. Since early November, Chinese media outlets have reported that commercial banks are stepping in as direct sellers. A real estate agent in southern China told the Chinese Epoch Times that many banks now hold large numbers of repossessed homes and can't wait any longer to sell them. Chinese regulations require banks to get rid of non-performing assets within two years. To meet these deadlines, banks are suing mortgage holders, securing ownership of foreclosed homes, and then selling them directly. These properties are often at discounts ranging from 30 to 70 percent just to get them off the market. Major property platforms like Alibaba and JD Assets report that the Agricultural Bank of alone listed more than 600 homes for direct sale earlier this year. And state media says commercial banks have listed thousands of properties for sales nationwide. Despite the surge, sales are falling short. Back in October, more than 100,000 properties went to auction, but only 16,000 were sold. Experts warn that falling prices and weak demand are putting further strain on China's fragile housing market. The prime minister of Tuvalu, a Pacific island nation, says his country treasures its special relationship with Taiwan. Tuvalu is one of just 12 countries in the world that still maintain diplomatic ties with Taiwan. The rest have cut ties and recognize Beijing instead. During the visit, Tuvalu says it will sign its first treaty with Taiwan. The inaugural treaty between Tuvalu and Taiwan that we will witness the signing of it today, will establish the necessary legal platform that will further strengthen and elevate that relationship. Taiwan's president, Lai Ching-de, says the visit symbolizes the country's strong friendship and respect for their diplomatic ties. Meanwhile, Taiwan is pushing back against the Chinese Communist Party's espionage activities. On Tuesday, Taiwan said it had detained a Chinese citizen on suspicion of spying. The arrest follows the uncovering of a plot to lure Taiwanese military personnel into handing over classified information. The suspect, identified as Ding Xiaohu, reportedly came to Taiwan claiming to be on a business or a tourist visit. He allegedly recruited two retired military officers to form the core of a spying network. They then tried to draw in active personnel. Ding is a resident of Hong Kong. Coming up, China's control over Nexperia chips eases as the Netherlands suspends a seizing order, giving automakers some relief. We unpack the situation. And what does Tesla's announcement to move away from Chinese-made components in its US-manufactured cars mean for the industry? Could this disrupt Tesla's Gigafactory in China? The CEO of MCQ Markets breaks it down for us. That and more on China In Focus after this break. Welcome back to China In Focus. I'm Tiffany Meyer, former top aide to New York governors Houkou and Cuomo. Linda's son has been on trial for five days, along with her husband and co-defendant Chris Hu. On Tuesday, Sun's mother testified about a money laundering scheme the couple is allegedly involved in. Prosecutors allege the couple funneled millions through Sun's mother's bank account, money they say were kickbacks the couple received from China. Two bankers also appeared in court on Tuesday and Wednesday to testify about the scheme. Prosecutors also allege that Sun acted as an unregistered foreign agent for China while in office, advancing the CCP's agenda within New York state government. In return, they say her husband, Chris Hu, received substantial benefits from China, who then allegedly used Sun's mother's bank account to defraud banks and launder the money. Back in April 2020, Linda's son's mother sent her son-in-law, Chris Hu, asked for her ID to open a bank account at Signature Bank. She testified that at the time, she had no idea of the purpose of the account, and she neither deposited, withdrew, nor wired any money from it. However, the records show that she's the only account holder. Chris Hu later became an authorized user to that account. This is the same account that the government accuses Chris Hu of using to launder money, specifically funds from a company owned by Henry Hua, a relative of Linda's son. Hua runs a textile business called CanStar, based in Nanjing, a city in southern China. Evidence shows that Hua's company transferred $1.5 million to Sun's mother's account in 2022. When questioned by the bank, Hua explained that Linda's son's mother was a sales agent for CanStar. Fast forward to this Tuesday. Linda's son's mother told the grand jury that she didn't know what CanStar was, and that the money in the account wasn't hers. So where did the money go, and what prompted the wire transfer? In future reports, we will detail how Linda's son allegedly used her government position to help her cousin profit from state contracts for masks and gloves. This occurred at a time when the entire country was battered by the global pandemic. The Dutch government is putting a pause on an order that would let it seize control of Chinese-owned chipmaker Nexperia, that's based in the Netherlands. On Wednesday, the economy minister said the decision came after talks with European partners and Chinese officials. Tensions began in October, when the Netherlands stepped in to block certain decisions at Nexperia over national security concerns. Officials say they were trying to protect trade secrets from leaving Europe and putting its economic security at risk. The company produces semiconductor chips that are critical for the production of vehicles. In response, Beijing halted exports of Nexperia chips in China, raising concerns about a potential shortage across the auto industry. Auto suppliers now confirm those chips are leaving China again after the Dutch government suspended its seizure order. Tesla announced plans to move away from the China market, saying it will no longer use Chinese-made components in its U.S.-manufactured cars. What does this move mean for the car industry and Tesla's special status inside China? Joining us to discuss is Kurt Hopkins, CEO of MCQMarkets.com. Kurt Hopkins, thank you so much for joining us. Great to have you on the show. Great. Thank you for having me. Tesla has announced plans to move away from China-made components in its U.S.-manufactured cars. Now, how long would this type of change take? Is there a supplier that's alternate to China? Is there the infrastructure in place for this? Well, I think Tesla's saying it could take up to two years. I suspect it may take much longer to fully get 100 percent there. But certainly, I would think in two years' time, Tesla could make a big dent in making those changes. And what would that mean for the auto industry, this move away from China-made components? Well, I think one of the big things and one of the big moves is that in the electronic vehicle sector, particularly the Chinese manufacturers have raced ahead of North American and European manufacturers. And I think so it's clearly there's a lot of catching up to do. But also, at the same time, it is a very, very important technical arrangement, technical stack, for the U.S. in particular to catch up and to actually be able to be very successful. So I think these kind of investments, being able to invest in U.S. component manufacturing so that it can all be brought back to the U.S. is very critical. Now, Tesla's China relations are a bit unique. It has a gigafactory there that is not part of a joint venture. It's normally the price to get into the China market. With this move of moving away from China-made components for the U.S.-manufactured cars, could Tesla hurt that special relationship with China? Possibly. But I think it's really clear that Tesla has taken a dual-track approach, which is really kind of phenomenal to see. I mean, they are manufacturing cars in Shanghai. All the components are from China. And it's a fully Chinese-made car with different battery technology, for example. And now in the U.S. and probably in Europe, they're doing the same, where they're basically stripping out all the Chinese elements. And I think it's probably just a pragmatic solution they've got to. They are highly incentivized in the U.S. to have homemade componentry, highly incentivized to, you know, with tariffs, for example, to do as little importing as possible. So I think these changes is just probably the pragmatic solution. And it'll be interesting to see what other tech providers, American tech providers do, in particular Apple, to see if they ship more and more of their manufacturing outside of China and back to North America and to Europe. On that note, you have been seeing, you know, even the European Union complaining or blaming China for, you know, unfair trade practices, but also dumping of products, especially cars, into the European market, which is saying that the base doesn't actually want the cars. They're just kind of taking up lots there, seeing a bit of that play out in the U.S. as well. Looking forward, though, do you see maybe a diversifying of, you know, carmakers making cars just for a certain country, or is it more of that globalization still? I think let's see what the mix is. Obviously, globalization is where it's at right now, but the shift is back to more local production. But I do think that in China in particular, there is a playbook, and that playbook is to heavily subsidize the industry, basically dump products to gain market share, drive competition out, and then, you know, basically take a much larger share of wallet. So that playbook we've seen across industries, we've seen in the telecom tech industry, we've seen it elsewhere. So I think the West now is very much aware of that strategy, very much aware of the national security concerns around it, very much aware of just the pure economic, you know, competitive warfare that's happening. So I think it is interesting and important that the U.S. and European players start to bear in mind for their critical industries. On that national security point, I think you are seeing some movement, as you mentioned, in the U.S. under President Trump. It's a lot about tariffs, right, to try and bring back manufacturing, if you will. We're seeing a bit of that in the European Union, but Germany does seem to be still wanting that access to the China market. How do you see this going forward? Because the Chinese regime does subsidize industries. You don't really have that in the U.S. We also have a lot of regulation here. How do you see that playing out? How will the, say, freedom-loving countries counter something like the Chinese regime in this sector? Well, I think what you're seeing is people trying to figure out, can they count on the U.S., the European players, can they count on the U.S., or do they need to be what I've heard one trade theorist called more promiscuous foreign policy, where instead of working in a bloc or with other freedom-loving countries, you kind of pick and mix based upon each circumstance and each year. So you're certainly seeing the U.S. right now as being very transactional and not necessarily principles-based, and I think that's having an impact on European decision-making, and I think the Europeans will be very transactional as well, and I think that'll continue. And for the U.S., it's going to be interesting how much can really be brought back home. In the automotive industry, I'm skeptical, because the amount of investment is enormous that would be required to bring all the manufacturing back, as well as just the cost base is very high, and you don't have the people. So one of the big challenges is you must have the labor and the people that are willing to do the jobs. In the U.S., labor costs are very high, which is good. We want people to get paid great salaries and have a great wage. And so I think for some of your cheaper cars, things that are worth cost less than $35,000, I just cannot see the U.S. ever really being able to produce a competitive, low-cost car. I think it's really going to be still happening in places like Mexico. And so I think you're still going to see some regionalization of supply chain for the automotive industry. I just don't see that changing, even with these tariffs that are taking place right now. Definitely a lot to watch for here for sure. Kurt Hopkins, thank you so much for joining us. Great. Thanks for having me. That's all for today's China In Focus. I'm Tiffy Meyer. If you have any feedback on the show or have something you'd like to see us cover, send us an email at chinainfocusatntd.com. 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