China Rebuilds WWII Airfield Near Guam | China in Focus

Welcome to China In Focus. I'm Tiffany Meyer. Our top story. The U.S. is coming after Venezuela's economic lifeline, seizing an oil tanker off the country's coast. Why President Trump's push to oust Maduro from power could concern China. Hundreds of miles off Guam, home of a major American military base, a Chinese company is rebuilding a World War II airfield. The move raises serious U.S. defense concerns. An expert weighs in. If you had an installation on Guam, on Wuliai, which they had under their control, you can hit Guam with, for example, missiles in a container from a direction that nobody is looking. A new U.S.-led coalition takes aim at China's dominance in critical minerals, tech and even global infrastructure. We break down the newly signed declaration. A major blow to Chinese imports that evade U.S. tariffs by trans-shipping through Mexico. It's passing a bill to allow up to 50 percent tariffs on Chinese products. The U.S. is doubling down on efforts to oust Venezuela's leader Nicolas Maduro, a longtime ally of the Chinese Communist Party. He's a key partner for China to expand its influence in a region long dominated by the U.S. The Trump administration seized an oil tanker off the coast of Venezuela on Wednesday. The tanker carried sanctioned oil heading to Iran. A White House official said President Trump is willing to seize more Venezuelan oil tankers. Large tanker, very large. Largest one ever seized, actually. And other things are happening, so you'll be seeing that later and you'll be talking about that later with some other people. The move is a blow for Maduro, as oil revenue is the country's economic lifeline. Meantime, the region around Venezuela has seen the largest U.S. military buildup in decades, 15,000 forces and the world's largest aircraft carrier. The U.S. military has struck an alleged drug smuggling boat near Venezuela, killing 87 people last month. Trump told airlines that Venezuela's airspace should be considered closed. He then spoke on Politico, saying that Maduro's days are numbered. Maduro's message to the U.S., peace above all else. Our message to the people of the United States remains the same. Peace. Peace above all else. No to crazy war. No to bloodshed for oil. Venezuela has the largest oil reserves in the world, with half of it exporting to China. The country has been a key point for China to expand its influence in Latin America with nearly $60 billion in loans for energy and infrastructure projects. So why is the Trump administration going after Maduro? They're saying Maduro is responsible for trafficking drugs into the U.S. Illegal immigration is also causing tension. They've allowed millions of people to come into our country from their prisons, from gangs, from drug dealers and from mental institutions, probably proportionately more than anybody else. On Friday, Venezuela's opposition leader said that Maduro's power will end and that she's focused on an orderly and peaceful transition. She fled to Norway after a year in hiding and went on to win the Nobel Peace Prize. Next, amid growing Chinese military activities at the heart of the Pacific Ocean, a Chinese company is rebuilding a World War II-era airfield near Guam, home to a major U.S. military base. The construction could be done by the end of the month. Cleo Pascal, senior fellow at the Foundation for Defense of Democracies, explains why China's access to the airfield poses a major threat to the U.S. and its allies. What I had heard was that a Chinese state-owned company had won the contract to rebuild the Wuliai runway. And that was what I was heading to Wuliai to see. Earlier this week, Pascal posted a video showing the airways construction site in Wuliai. It's part of an independent island nation in the Western Pacific that's under the protection of the U.S. military. And it takes less than an hour to fly from Wuliai to Guam. That's what the Chinese figured out. That if you had an installation on Guam, on Wuliai, which they had under their control, you can hit Guam with, for example, missiles in a container from a direction that nobody is looking. With China gaining greater control of the airway, what steps can Washington take to deter threats from the CCP? I think personally, the Secretary of Interior, this area is covered by Interior, he's already on the National Security Council because of his role in energy security. But that role should be expanded to look specifically at the security of the U.S. territories and freely associated states in terms of the incredibly aggressive and effective onslaught of Chinese political warfare to undermine the U.S. ability to get across the Central Pacific and to reach the first and second island chain. So Secretary Burgum and his office should be expanded to look specifically at this problem at the national security level so that they can bring in all of those other levels of power, including Department of Transportation, Treasury, FBI, in order to clear away some of the corruption, that's the block side, in order to build up options, including working with allies like Japan and others. Guam is part of the second island chain, a term used to contain Chinese military threats from the U.S. The island's House Delegate James Moylan has famously said every war game scenario that is played out involves Guam. It's also home to both a submarine base and an air force base. The Trump administration is taking a big step to counter China's grip on critical minerals and high-tech industries. It launched a new international coalition on Friday by signing the Pax Silica Declaration. Its goal is to unite five key allies to strengthen access to key minerals and boost cooperation on AI development. The declaration brings Israel, Japan, South Korea, Australia and Singapore into a new partnership focusing on joint research and manufacturing. It's an effort aimed at competing with China's dominance in global supply chains. Officials say the move highlights growing concern over Beijing's near monopoly on rare earths, which are vital for defense and everyday technology. Earlier this year, China used rare earth export restrictions as leverage in response to U.S. tariffs. Undersecretary for Economic Affairs Jacob Helberg calls the coalition a game changer. He says it creates a forum for countries to coordinate on the AI economy and compete with China's growth in the sector. The Trump administration hopes more nations will join. The signing also kicks off a one-day summit with representatives from the European Union, Canada, the Netherlands and the United Arab Emirates attending. They'll discuss cooperation on advanced manufacturing and mineral refining. On top of that, officials say the declaration goes beyond minerals and tech. The alliance also aims to push back on China's Belt and Road Initiative by improving coordination on infrastructure projects. China's Belt and Road Initiative offers big loans to developing countries to build critical infrastructure. But when those nations can't repay, Beijing often gains control of the projects, extending its international influence. The new alliance aims to prevent that by blocking China from expanding its reach through key ports, highways and major supply chains. President Trump signed an executive order Thursday aimed at cutting government red tape on artificial intelligence. The move seeks to create a national standard, simplifying AI regulations as more states try to introduce their own rules. Trump says such laws from states could undermine Washington's efforts to maintain tech dominance over China. It's a big part of the economy. And there's only going to be, I think, one winner here. I don't know if anybody agrees with that. I think most people agree, but there's only going to be one winner here. And that's probably going to be the US or China. And right now we're winning by a lot. Critics, however, warned that unchecked AI development could put Americans at risk. Major AI players like OpenAI, Google and Meta have said the federal government, not states, should regulate the industry. We have the big investment coming. But if they had to get 50 different approvals from 50 different states, you can forget it because it's not possible to do, especially if you have some hostile, all you need is one hostile actor and you wouldn't be able to do it. Yet state leaders from both major political parties have said they need the power to put guardrails around AI, particularly as Congress has consistently failed to pass laws governing the tech industry. Just last month, New York became the first to enact a law requiring online retailers that employ so-called surveillance pricing to disclose their use of algorithms and customers' personal data. Florida Governor Ron DeSantis, a Republican, has proposed an AI Bill of Rights that includes data privacy, parental controls and consumer protections. California Governor Gavin Newsom, whose state is home to several major AI companies, signed off on a bill this year requiring major developers to explain plans to mitigate potential catastrophic risks. However, Trump said Thursday he could withhold federal broadband funding from states whose laws are seen to hold back U.S. dominance of the new technology. An American open training program with good intentions misused by Chinese hackers. Two people tied to one of China's most aggressive state surveillance hacking groups may have sharpened their skills from a U.S. tech program that teaches cybersecurity. A new finding on Wednesday reveals two partial owners of firms tied to Chinese hacking group Salt Typhoon trained through Cisco's Global Networking Academy. It's a program the company says is open to everyone. Last year, Salt Typhoon hackers breached at least nine telecom companies, giving them access to calls and text messages in America. The attack affected high-profile individuals like then candidates Donald Trump and J.D. Vance. A cybersecurity researcher traced two names tied to that operation, back to records showing they enrolled in Cisco's Networking Academy a few years ago. Experts say it's a flaw to Washington's open approach to technology and training, which provides foreign adversaries with more resources. Meanwhile, China tightens access to its own cybersecurity research, which creates a one-way flow of knowledge. Next, products like cars, clothes and metals shipping to Mexico from China could soon be hit with a much higher levy. On Wednesday, Mexican lawmakers approved tariffs of up to 50 percent on Asian countries without trade deals, including China. This comes as Mexico prepares for upcoming trade talks with the U.S. Beijing responded Thursday, hinting retaliation. China says Mexico's new tariffs would significantly harm its interests and has urged Mexico to reverse course. Beijing also referenced an ongoing investigation into Mexico, hinting at further escalation. It warned Mexico not to compromise its relationship with China to win favor in upcoming U.S.-Mexico-Canada trade talks. President Trump has accused China of using Mexico as a gateway to ship cheap goods to the U.S., bypassing high tariffs on Chinese imports. But still, Mexican President Claudia Schoenbaum is very likely to sign the bill into law. She proposed the tariffs back in September. If they take effect at the beginning of next year, the tariffs are projected to generate millions in revenue for the Mexican government. The tariff hikes affect over 1,400 types of goods, many of which are essential to daily life. In addition to China, India, South Korea, Thailand, Indonesia and Taiwan are also impacted by the new tariffs. Coming up, just how risky is it to do business in China? And how exactly does the regime steal intellectual property? Paul Johnstone breaks it down. Every delegation you can expect, you know, there is a number of people on that delegation that are there on behalf of the government, and they're there to collect information on your product or your business. Welcome back to China In Focus. I'm Tiffany Meyer. How risky is it to do business in China? Is the China market still the place to be? And how exactly does the Chinese regime poach intellectual property? We sat down with Paul Johnstone, a former federal agent with the Australian Federal Police and regional security advisor at Defensive Measures International. Now, here in the U.S., you have the infamous case of Feng Feng in the news again because some failed statecraft. She was actually found. But it's also back in the news now because one of the ones she was alleged to be with or seen around is Eric Sewell, the congressman who's now running for governor of California. And he actually is saying that everyone should be able to vote on their phones, which sounds like it could be a huge national security risk right there. It does seem there's a bit of awareness around this now. But what you're describing there, right, it's just how insidious this is. As you mentioned, there's, say, a group of business people coming in, maybe a joint venture. But then within that group, you'll have members of the MSS or China's security services to vacuum up whatever information they could get. And you had an example recently where you were speaking in an article in The Epoch Times that there was an American pharmaceutical company where certain rooms in their business were off limits. But then part of this Chinese delegation were still taking pictures in the rooms and pretending they didn't understand. And they filmed some of that. So could you talk about some of that and what these Chinese espionage efforts employ and how the West essentially should counter all of this? Generally, Chinese people are some of the most nicest people you'll meet. They're lovely people. But they use this also as a tool of their trade. So you have these delegations that visit. And for one example here, and without going into specifics, it was an American pharmaceutical firm based here in Australia making high-end surgical equipment. And they had a delegation from China who were looking at doing a joint partnership with them. And every time I hear the word joint partnership with the Chinese organisation, I shake because what I know is that the joint partnership is long-term is basically domination of that product. So this delegation arrived and they went into secure areas in sensitive areas where no cameras were allowed, no photographs, no videoing. And their excuse was that they played the game, but they couldn't speak English. When I spoke to the executives of that firm afterwards, I actually said to them that, did you notice anything unusual? Did you notice USBs left on the ground? Or did you notice any of this type of stuff, or strange emails coming through? And they were very, very surprised when I mentioned USBs because they actually said to me, they found a number of USBs around inside the actual building and also outside on the car park. And as I say to a lot of people, when you pick up a USB, you've got that thought, what's on there? And people tend to want to put it into a computer and open up because they want to see what's on there. Is it valuable information and sensitive information? So it's human nature, that inquisitive nature. So people fall for that trick very, very, very easily. And I told the executives that you can pretty much guarantee that within the next six to 12 months, your product will be out there at a reduction of the price, at a quarter of the price. And this same company, I said, don't be surprised if in the next several months, they'll come back to you, they'll negotiate, they'll tell you what they want more information and eventually they won't do business with you. Because they've stolen everything they need to steal from you. The Chinese intentions from a lot of these firms, because they're all linked to the government. A lot of these firms, their intention is not good. Their intention is to dominate, to steal that IP and to reproduce that item, that product. Every delegation you can expect, there is a number of people on that delegation that are there on behalf of the government. And they're there to collect information on your product or your business, your business structure, who your contacts are, who your clients are. Do you have connections to the government? Are you a contractor for the government? These are also very important questions that a lot of these delegations will ask. And I always ask these questions with a big smile on my face. Because I don't want you to think that they're asking the wrong questions. And it's something you taught me a long time ago. If you make $1 from every person in China, you've made a lot of money. It doesn't take much to have a product there that you can sell, or vice versa, for the Chinese to steal a product from the West, reproduce it, and then sell it back to the same company or to the West at a fraction of the price. Even when I talk to people and say, make sure when you go there, you don't take your laptop, make sure you've got a better phone. They look at me strangely thinking, why? Because these people, they want to do business. I say, no, they don't want to do business. They have an end goal to own your business, to take your business. And that's why you have to have a joint partnership with the Chinese organization. And now with the new legislation, no matter what industry you're in, they still have to give that information to the Chinese Communist Party if they're asked to give that information. So no IP is protected in China from the West. It does seem there's a bit more literature on this, if you will. You have the General Spalding's book, Stealth War, where he talks about a bunch of companies that had joint ventures, and they found out their joint venture partners, the Chinese side, eventually out-competed them on the global stage and basically stole all of their information, IP, and the competition there. Or you have, on the other hand, Poorly Made in China, which talks more about the Chinese side, the manufacturing, and the horrific conditions that these workers work in and are. And then you have a more, there's a new one out called The Great Heist, China's Epic Campaign to Steal America's Secrets. So there is a bit more literature on this, it seems. But to your point, there's still a lack of the understanding, I think, that you're talking about there, where no one really wants to come out and be transparent and talk about it. Because even in the Poorly Made in China book, the companies aren't named. It's just kind of suggested that these are huge corporations that everyone knows, but the name isn't actually put in there. Given that we've seen the expansion of China's laws that could crack down on the business sector, it's always very vague, so no one really knows the realm they can operate in. When it comes to Western companies looking to make money inside the Chinese market, is there a way to do that and protect IP? Not in Mainland China, no. Because you can pretty much guarantee that whatever you take into Mainland China, be it a product, be it IP, they've already got it. And if anybody thinks that that's not the case, they're naive, or they don't really understand China. They don't understand the way that the CCP operates. And to answer your question, absolutely no. Even if you do business with a Chinese company in a third company, such as like Cambodia, any link to that company is still going to have your IP stolen. And it's kind of sad because there's a lot of Chinese companies out there that are generally sincere. They're honest people. But unfortunately, when they're linked to Mainland China, and there's always that possibility that somebody in that organisation could be threatened by the government, could be coerced by the government, because I've seen this so many times. So many Western companies, they're looking at the big dollar, and only three things are going to happen. One, they'll run out of money, and that venture is basically gone. And whatever they did give to the Chinese, they've got that. Or two, they do go there, they do set up and they're going to lose their IP, and that'll be taken off them. Or three, they're going to get to a point where unfortunately, what happens a lot of times is the Chinese government can manipulate the legal system. And then they can actually come in there and make up these offences and all these body charges and stuff, and that'll destroy the company from within anyway. I say to people also, Tiffany, you know that you might even look at places like Vietnam, where I frequent a lot, I go to Vietnam a lot, and teach there and do a lot of work there. There's so many companies now wanting to move their operations from China into Vietnam, because although the Vietnamese government is a socialist government, there's so many differences between China and Vietnam. There's more freedoms in Vietnam for the people and more freedoms when it comes to business. Sure, there's a degree of theft of IP and that type of thing could happen. But generally, it's a lot safer than doing it in mainland China, where in China, the government can change the rules at any time. So it's a monopoly and it's a risk. Whereas in other countries, it's a lot more flexible and it's a lot more safer to do the business there. That's all for today's China In Focus. 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 chinainfocusandtd.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.