ExclusiveU.S., China set stage for September Trump-Xi summit | China in Focus

Welcome to China In Focus. I'm Tiffany Meyer. Our top story, Secretary of State Marco Rubio meets with China's top diplomat as both sides prepare for a possible leaders' summit in Washington this fall. Meanwhile, the Quad sends a strong message on Indo-Pacific security. The U.S. is weighing new sanctions on China. This time, the fight is over artificial intelligence and alleged technology theft. We are finding watermarks of our U.S. large language models on many of the Chinese models. Flooding has swept across China, including the financial hub of Shanghai. Rainwater leaked through roofs, pouring down like waterfalls, while sewage surged from toilets and flooded entire apartments. And China's housing slump isn't over yet. It's now in its fourth year. Experts explain why a recovery could still be years away. U.S. Secretary of State Marco Rubio met with Chinese Foreign Minister Wang Yi on the sidelines of the ASEAN summit. The two top diplomats spoke for around 90 minutes, laying the groundwork for a highly anticipated leaders' summit this September. I think President Xi will have a very positive visit when he comes to Washington. Look, these are the two most powerful countries in the world, particularly economics. But also, I mean, we have to have a relationship. They also discussed topics including trade, Taiwan and regional security. Rubio called out China's aggressive moves in the South China Sea, reaffirming Washington's firm security commitment to the Philippines. Wang Yi pushed back, warning third parties to stay out of regional affairs. I believe we're the only treaty partner the Philippines has. We intend to live up to our treaty obligations, and I think we've done so and we'll continue to do so. Still, Rubio said it's dangerous for the world's two largest economies not to talk. And obviously, there are areas of great differences. Both sides will acknowledge that. We'll have to work through those. And I think these differences will exist for the foreseeable future. And our job is to sort of manage those so that they never get out of control. On the sidelines of the ASEAN meetings, foreign ministers of the Quad, the U.S., Japan, Australia, India, also met on Wednesday. In a joint statement, they expressed serious concern over tensions in the East and South China Seas, warning against any attempts to change the status quo by force. The Quad also highlighted cooperation on maritime security, critical minerals and energy, resilient supply chains, and emerging technologies. The group said it aims to deliver practical outcomes and strengthen resilience across the Indo-Pacific. Months of clashes lead to tense talks. The Philippines is protesting China's actions in the South China Sea, but says it still wants dialogue with Beijing. The latest talks come after a clash that injured a Philippine Navy serviceman on the sidelines of the ASEAN meeting. Philippine Foreign Affairs Secretary Maria Teresa Lazaro delivered a strong protest to her Chinese counterpart, Wang Yi, during talks in Manila on Wednesday. She called out the Chinese Coast Guard's use of violence near Second Thomas Shoal during a recent confrontation. Lazaro also called for the removal of remaining structures at Scarborough Shoal, where China recently placed and later removed a floating barrier. The meeting marked the first foreign minister-level talks between the two countries since 2024, highlighting ongoing tensions over the disputed waters. Lazaro also criticized an AI-generated Chinese media video that portrayed Filipinos as monkeys, calling it offensive and unacceptable. Despite the disputes, both sides said they want to maintain peace and avoid miscalculations. They also agreed to continue talks over the South China Sea, a major point of tensions between the Philippines and China. Meanwhile, Australia is also pushing back on China's actions in the region. Australian Foreign Minister Penny Wang is expected to warn Thursday that Australia and its neighbors will not be intimidated by China's provocative actions. She is also set to criticize China's recent missile test, saying the lack of transparency raises concerns as Beijing expands its military capabilities. The Trump administration is weighing sanctions on China over AI model theft. Here's Treasury Secretary Scott Besant speaking on Fox News Tuesday. We are finding watermarks of our U.S. large language models on many of the Chinese models, and that's unacceptable, Maria. So we're going to be looking at that in the coming days or weeks. But again, the U.S. government supports open source, but what we do not support is IP theft. Besant says the U.S. has the ability to sanction overseas AI models if they are stealing from American companies. His remarks come as Chinese open-way AI models are gaining traction. A Chinese startup recently released a new model called Kimi K3. It outperforms major American AI companies across some industry benchmarks. Anthropic recently alleged to a Senate panel that Chinese tech giant Alibaba carried out distillation against its AI model. The U.S. and China are set to hold AI talks in September, where Besant will lead the U.S. allegation. Turning to the Middle East, Besant said Tuesday that China is buying significantly less oil from Iran, down about 40 percent over the past few months. Besant added that U.S. sanctions on Chinese teapot refineries contributed to the decline. The Chinese Communist Party's tactics to undermine the U.S. and Taiwan. A policy conference on Capitol Hill is shining a light on it. Speakers point to the CCP's forced organ harvesting, cyber attacks, and social media influence campaigns. Entities Jack Bradley has more from the Chinese Freedom and U.S.-Taiwan Security Forum. The adversary that I think we must be most prepared for, that we need to be most defending against in their future plans is China. From forced organ harvesting to AI-driven cyber attacks, speakers on Capitol Hill say that the Chinese Communist Party's tactics extend beyond traditional warfare. They argue Beijing is using everything from human rights abuses to online influence campaigns to silence critics, pressure democracies, and expand its global reach. Taiwan matters because it shows what China should be. In communist China, the greatest good is the survival and supremacy of the Chinese Communist Party. So, you know, anything goes. That's why you get atrocity. That's why you get a kill-to-order industry. One of the most shocking atrocities is China's state-sanctioned forced organ harvesting. The main target is Falun Gong, also known as Falun Dafa, a spiritual practice based on truth, compassion, and tolerance, and heavily persecuted in China. I had a hard time believing it at first. I could not believe the physicians were participating in these type of crimes. And only after looking at the data, you know, have I become fully convinced. The event recognized the global quit the CCP movement as well. Since 2004, 464 million people have quit the Chinese Communist Party. My family was as police transferred her into criminal detention. Alyssa Jo's mother was arrested by Chinese police back in April with a dozen other Falun Gong practitioners. Today, my family is not allowed to see her. Even her lawyer has been denied access. The event focused also on artificial intelligence, making cyber warfare easier and faster. What one individual could do today with AI would have taken a team just a few months ago, much less a few years ago. But panelists said the challenge doesn't stop with hacking. They also say that Beijing is using social media and influence campaigns to quietly shape public opinion in democratic countries. They pay the two key opinion leaders, maybe in IG, on Facebook, or in YouTube. They try to erode the people's trust in United States. The speakers say that countering Beijing's influence campaigns requires a long-term strategy combining technology, public awareness, and stronger democratic messaging going forward. Jack Bradley, NTD News, Washington. This year marks the 27th anniversary of the start of the deadly persecution of the meditation practice Falun Dafa, also known as Falun Gong. The State Department says it is stepping up efforts to counter Chinese Communist Party transnational repression within the United States. U.S. lawmakers from both parties are also calling for accountability. They're advancing legislation in Congress that would sanction those involved in China's state-sanctioned forced organ harvesting. To raise awareness of another year of these human rights violations, Falun Dafa practitioners and human rights advocates will hold a rally and march in our nation's capital. Watch our special coverage July 23rd, Thursday, at 11.30 a.m. Eastern, presented by NTD's Kerry Dunst and Stefania Cox. We'll take you to the historic Lincoln Memorial for the rally, give you an excellent view of the march, and bring in guests to unpack the Chinese regime's persecution campaign in China and around the world. See you there. China's financial hub Shanghai was battered by thunderstorms, torrential rain, strong winds, and hail over the weekend. Several parts of the city were flooded. At the same time, Shanghai was hosting the World Artificial Intelligence Conference. The head of the Chinese Communist Party, Xi Jinping, attended the event. Inside the venue, rain poured through the roof in multiple areas like waterfalls. Similar leaks were reported at a major train station, as well as several shopping malls and supermarkets. A Shanghai resident posted a video showing sewage continuously rising from the toilet and flooding the entire apartment. Streets turned into rivers as floodwaters rose, prompting many local residents to question the city's drainage system and infrastructure capabilities. China's property slump isn't over yet. The country's real estate downturn is now in its fourth year, with home prices falling again in June. Analysts say the prolonged slump is far from over, and it continues to weigh on consumer confidence and the broader economy. Beijing's official data released last week showed prices for both new and existing homes fell from a year earlier and from the previous month. The latest figures extend a property slump that began after the market peaked in 2021. The downturn has raised billions in housing wealth. In Beijing, some homeowners had to slash asking prices by hundreds of thousands of dollars just to find buyers. Analysts say the market is still years away from stabilizing. They say too many homes, a shrinking population, and local governments' reliance on land sales are making it harder for the market to recover. The weak housing market is also hurting consumer spending. Despite Beijing's efforts like shopping vouchers and trade-in programs, many families say stagnant incomes, mortgage payments, and rising living costs leave little room to spend. Economists say until incomes and confidence improve, China's property slump and its drag on the economy is likely to continue. Coming up, China accused of targeting Taiwan's chip expertise. A former manager at Taiwanese chip giant TSMC is facing charges over allegations he tried to leak chip secrets. What Taiwanese prosecutors say happened. And the human cost of socialism. From Cuba to Venezuela, critics say decades of authoritarian rule have crushed freedom and opportunity. We hear from an expert on what comes next. I mean all Venezuelans, we are very optimistic about the future of the country. More on that after the break here on China In Focus. Welcome back to China In Focus. I'm Tiffany Meyer. Taiwan's trade secrets targeted by China. A former manager at TSMC, the world's largest chip manufacturer, is facing charges over allegations he stole sensitive chip-making trade secrets. Prosecutors say he planned to use the information to help build a semiconductor company in China. Prosecutors indicted the former deputy manager surnamed Chen on Monday under Taiwan's National Security Act and Trade Secrets Act. They say Chen copied 21 confidential TSMC documents tied to semiconductor manufacturing processes and materials as part of a plan called the Blue Sea Project. Investigators say the project aimed to recruit Taiwanese semiconductor experts and strengthen China's chip supply chain. The case began during a separate investigation into an alleged Chinese espionage network in Taiwan which led authorities to uncover Chen's involvement. TSMC detected suspicious activities, launched an internal review and recovered the copy documents before the information could be transferred. Prosecutors are seeking a seven-year prison sentence calling it Taiwan's first case involving an alleged attempt to transfer critical national technology secrets to China. Now to the human cost of socialism. In places like Cuba and Venezuela, everyday people are caught in systems that squeeze not just their freedoms but their opportunities as well. The State Department now focusing on Cuba, it released a 100-page report Monday called Cuba Capital of 21st Century Communism which blames the island for everything from unrest surrounding the death of George Floyd to the rise of Antifa. I spoke yesterday on Tony Meyer Tonight with Jorge Orsatti, president of the Economic Inclusion Group to discuss. Jorge, thank you so much for joining us. Always great to have you. Now President Trump mentioned Venezuela earlier today during his meeting with the Lebanese president. Let's take a listen. We took over Venezuela. We now have a great relationship with Venezuela. We went to war with Venezuela and the war ended in one day. And we have now an incredible relationship with Venezuela. We're taking out millions of barrels of oil. They're making more money now than they ever made before, ever. And we're making a lot of money. We paid for the war many times over with Venezuela. We lost nobody. Is Venezuela's economy doing better now than it was before? I mean, all Venezuelans, we are very optimistic about the future of the country. Right now, it's not yet doing better. However, we are on the right track because the United States has a transition plan for Venezuela. This transition plan includes a period of stabilization, then recovery, and then democratization of the country. And there is internationally companies, investment firms, and pretty much in all sectors, people are interested in investing in the Venezuelan economy. We're on the right track. What we need is the right reforms. With the right reform, the Venezuelan economy can grow at double digits for the next 10 years. And on that optimism part, political dissidents were heavily suppressed under Maduro's regime. Has that situation improved over the past few months? Yes. Many people have been released. Many political prisoners have been released. Once again, Venezuelans can express themselves with more openness. You see civil society expressing themselves more politically and socially and culturally. So Venezuela is a country that is changing. It's leaving behind its past of authoritarianism, and it's going forward to a system of more free markets and democracy. Again, the job is not done yet. It's a transition process. But everything goes in the right direction so far. And it's not just Venezuela, because the State Department recently published a report on Cuba titled Cuba, the Capital of 21st Century Communism. What was your biggest takeaway from that report? It's something I myself have been analyzing for the past five years, about how Cuba and Venezuela have become hubs for authoritarianism. Cuba has become a disease that is spreading socialism in Latin America and in Venezuela. Because think about it, Venezuela used to be one of the 20 richest countries in the world. It was open to market. It was giving prosperity to its people until they embraced socialism, socialism that was promoted by Cuba. What the State Department report shows is how Cuba and Venezuela were also working together to facilitate Iran, to help Iran have a foothold in the Western hemisphere. It is really problematic, and it's something that has to change. I completely agree with administration in the sense that the American continent has to be a continent free from communism, free from authoritarianism, because that's the future. We really need to embrace markets. The Latin American people, we all want it. Latin Americans, we want better relations with the U.S., we want only relations with democracies, and we want to have freer economies. As I was mentioning to you, all businesses, when I talk to people in New York or in Switzerland or everywhere, all businesses are extremely optimistic about Venezuela. They see Venezuela as a country that is abundant on oil, natural gas, mining capacities, has perfect geographical location. It can be a hub of connection between the U.S., Latin America, and Europe. But what we need is a country that is safe from communism, that is safe from organized crime, and I think we're moving forward in that direction. And, Jorge, here in the United States, we're seeing a rise in socialism or those who claim to be democratic socialists. Now, having lived in a socialist country, what would you want Americans to know about life under socialism? The most important thing for people who are listening, for people who believe in socialism, is that everywhere where socialism has been implemented, it has led misery, poverty, repression. It has brought societies backwards. In no place in history has socialism worked. That does not mean that when people are concerned about groceries, when people are concerned about paying their apartment every month, those concerns are valid. But the solution to that is better public policies. The solution to that is to have better economic policies, open market. The solution is never more socialism. Because think about it, countries like Venezuela, but not only Venezuela, have destroyed in one decade what it took a century to build. That is the problem of socialism, is that breaking an economic system is something that can be done so fast. Right now, 80 percent of my people live in poverty, 50 percent of people live in extreme poverty, and 30 percent of my people have had to left the country. And this is because of this socialist mentality that only punishes those who work really hard. And zooming out a bit here, communist China has long maintained close ties with both the Maduro and the Cuban communist regimes. How significant is the CCP's role in backing those socialist and communist governments in the region? China was, until the beginning of this year, late last year, the main beneficiary from this situation. China was getting most of the oil coming from Venezuela. Seventy percent of the oil coming from Venezuela was going to China. Similarly, they were getting all the oil coming from Iran. So China was benefited. After the Trump administration and their actions, what they did is they took away all these resources from China. They really changed their strategic positioning on that aspect. China, for ideological reasons and for many reasons, has been a strong ally of countries like Venezuela. They have most of the oil rights of many of the biggest oil facilities, gold facilities in Venezuela. But all this is changing. I really think that China understands that also the American continent is part of the U.S. area of influence. And I think that's the status quo going forward. Well, Jorge Jurisati, as always, thank you so much for joining us. Thank you, Tiffany. 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 chinainfocus.ntd.com. We'd love to hear from you. For on the clock original news coverage, visit us at ntd.com or download our app. Thanks for watching. See you tomorrow.