Microsoft Sends Alarm on China Threats; Taiwan Detects 153 Chinese Warplanes | China in Focus

Welcome to China In Focus. I'm Tiffany Meyer. Our top story. Microsoft's new digital defense report highlights a chilling phenomenon. U.S. adversaries collaborating with criminals to wage cyberattacks against the U.S. Taiwan condemns China's large-scale military drill. And an expert points out that China's ambitions expand beyond the island of Taiwan. China's military exercises are not solely focused on Taiwan. They also serve as a statement to democratic countries, particularly the United States and Japan. China's Coast Guard releases an image of a love heart amid their military drill around Taiwan. How the Taiwanese people are reacting. And two giant pandas are on their way to Washington's National Zoo from China. But critics are voicing concerns that Beijing is using the bears as diplomatic tools. A war without bullets or missiles. But one that could seriously harm the U.S. if lost. The world's leading software company, Microsoft, warning about a cyber warfare that's waged by top U.S. adversaries with the help from criminals in their countries. Microsoft just published its 2024 digital defense report on Tuesday. Microsoft's Vice President Tom Byrd said the company is seeing a growing trend of collaboration between nation-states and cybercriminals. In the report, cybersecurity officials and experts warned about the state forces behind those cybercrimes. The regimes of Russia, China, Iran and North Korea share a common goal, gathering information and undermining rivals like the U.S. As for hacking groups, they are typically after money. Besides the risks of huge financial losses and the exposure of confidential data, democratic systems are also at stake. Microsoft uncovered China's growing efforts to meddle in U.S. down-ballot races this year. Candidates for Congress, state and local offices all could be Beijing's target. What's more, Taiwan and other countries in the Indo-Pacific also could become victims of Beijing's cyber attacks. Over the past year, Microsoft has encountered more than 600 million cyber threats daily, including hacking, phishing and malware. Last month, FBI Chief Christopher Wray revealed that his agency had disrupted a major Chinese hacking group. The FBI had arrested thousands of compromised devices from the group. Now we turn to Taiwan. On Tuesday, Taiwan detected 153 Chinese military planes around the island, setting a new record. Of them, 111 crossed the median line of the Taiwan Strait. This also marks a record number. The median line of the strait is considered the dividing line between China and Taiwan. The Taiwanese government also condemned the Chinese regime's military exercises the day before. On Monday, China sent more than 120 military planes to surround Taiwan from all sides. The drill sparked fresh tensions in the region and has drawn strong criticisms from both Taiwan and the U.S. Here's what a spokesperson of Taiwan's foreign ministry said. China's actions once again challenge the rules-based international order and seriously undermine regional peace and stability. Su Zunyuan, an analyst from Taiwan's Institute for National Defense and Security, weighed in on China's latest actions. The Beijing government's intimidation has always been 70 percent political and 30 percent military action. China's military exercises are not solely focused on Taiwan. They also serve as a statement to democratic countries, particularly the United States and Japan. Su added that he believes China's ambitions go beyond taking over Taiwan. He said China's real strategic goal is to transition from a land-based power to a maritime one. The Chinese navy has changed from green water navy to blue water navy, and Taiwan is in an important location. All China wants is to master and control the oceans. Amid China's escalating military posturing, Taiwan's government continues to build its military defenses and solidify ties with international partners, particularly the U.S. and Japan. Taiwan's defense spending for the next year is expected to reach about 2.5 percent of its GDP, with a year-on-year growth of about 8 percent. Taiwanese President Lai Ching-de responded to China's war games on Monday in a Facebook post. He reassured citizens that the government will continue to defend the democratic and free constitutional system, protect democratic Taiwan and safeguard national security. The U.S. State Department said China's military action is unwarranted and risks escalation. The Taiwan Strait is a major passageway for global maritime trade, accounting for over a fifth of it. German Chancellor Olaf Scholz commented on China's war games near Taiwan, too. We assume that nobody is trying to use force to change the situation between Taiwan and the People's Republic of China. But this does not stop us from taking a close look at things. Last month, Germany sailed two warships through the Taiwan Strait for the first time in two decades. It was seen as a sign of support for Taiwan. And on Tuesday, Taiwan says it has signed deals to buy nearly a thousand killer drones from the U.S. The contracts valued at around $164 million. These suicide drones can strike any target that's identified. They're expected to be delivered after 2027. Amid China's large-scale military drills around Taiwan Monday, one piece of propaganda stood out. Check this out. This image came from China's Coast Guard. It shows a satellite image of Taiwan, with arrows circling around it in a heart shape. The text on the image reads, Hi, my sweetheart. And the patrol is in the shape of loving you. But no one in Taiwan seems to feel loved by a heart-shaped military patrol. The image sparked local headlines, with many calling it creepy and flooding the comment sections with vomit emojis. Taiwanese Coast Guard officials also responded to the image from China, labeling it cognitive warfare and harassment. Is China bringing panda diplomacy back to the U.S.? Two Chinese giant pandas are now en route to Washington, D.C. for their temporary home, the National Zoo. The National Zoo has waited for a long 11 months to welcome these popular pairs back to its arms, but they're not here permanently. Chinese authorities have signed a 10-year lease with the zoo with an annual fee of $1 million. The Chinese Communist Party has long used pandas as animal ambassadors to exert soft power. The practice is sometimes referred to as panda diplomacy by China experts. With Chinese authorities offering the bears as rewards to countries that side with Beijing and forcing them home as punishment. That's by refusing to extend the loan agreements. In one example, last year, Beijing took back almost all the pandas it loaned to the U.S. According to Pew Research, 8 in 10 Americans view China unfavorably. So where do former President Trump and Vice President Kamala Harris stand when it comes to China policies? Entities Evelyn Li sat down with Stephen Yates, a senior research fellow for China and National Security Policy at the Heritage Foundation, to find out. China is trying to close the power gap with the U.S. and we've heard our government ringing the alarm bell over it. But when they talk about the China threat, what exactly are they referring to? Well, you're right. They talk somewhat about different things depending on the party perspective they're bringing to the table. The one area where things have changed is that there's a significant part of both parties that question the economic value of having too many things resourced out of China, too much dependency upon China, too much concentration in one market, and a critique of unfair trade and other practices from China. So that is kind of where the two Venn diagrams overlap. The other areas, though, are quite different. From a Democrat point of view, they very clearly state that climate change is their top national security priority, and that is kind of a top priority in what they discuss domestically. And from the Republican side, from the Trump administration, it does build out from this economic issue of, are we transferring wealth opportunity technology to an adversary? Are we too dependent? How do we friend shore and maybe safe shore some of those dependencies? And how do we revive the American economy, starting from energy but broadening beyond that? And so those are two very different world views, often are talked about in domestic policy terms only, but it really profoundly affects how you approach China and our allies with regard to the national security challenges to the United States. So before we dig into the details a little bit, how consequential could be the decisions on China policies in the coming four years in the next presidency for the U.S. and its dependency on China? Well, I think the dependency issues are very, very important in part because it's evident that in recent years, the People's Republic of China has increased its bullying and encroachment on its neighbors. And I mean, we really have these kind of crazy exercises that went around Taiwan that were, I think, pretty comprehensive. And the Chinese Coast Guard is making political cartoons out of it, putting their test zones in the shape of a heart, trying to say that it shows how much they love Taiwan. There's something very aggressive and cynical going on there. But the encroachments on the Philippines, South China Sea and Japan just means that if we have these dependencies and we face a crisis, the People's Republic might feel it has more leverage over us than it should. And they might be right. So we have to get these things fixed soon. Well, thank you so much for your contribution today. And this morning, Stephen Yates, I appreciate it. Thank you very much. Coming up, a hypothetical Chinese invasion of Taiwan said to be featured in an upcoming TV show. The 10-part series is the first in Taiwan to portray Chinese invasion scenarios on the silver screen. I hope that through Zero Day, we can reflect on where we currently stand. Are we united enough? A red flag for exporters. The U.S. is adding three Chinese companies to a trade restriction list. And Russia and China hold substantive defense and military talks to bolster ties as Moscow and Beijing cement a no limits partnership. More on that after the break, here on China In Focus. Welcome back to China In Focus. I'm Tiffany Meyer. Some of the biggest names in film and TV from Taiwan, Hong Kong and Japan have united to graft a gripping new drama series. Its theme, a hypothetical Chinese invasion of Taiwan. NTD's Flora Hua gives us a closer look at this 10-episode series inspired by the real-world tensions in the region. Cyber attacks, financial crisis and armored vehicles on the streets. An upcoming TV series, Zero Day is painting a chilling picture of what many in Taiwan fear most, a potential invasion by China. This 10-episode series is supported by the Taiwanese Ministry of Culture. It explores possible tactics Beijing might use in a conflict with Taiwan, such as spreading propaganda to create chaos or sabotaging key infrastructure on the island, like water, internet and power. The show also delves into the different views among Taiwanese people on how to deal with the possibility of war. But it's not just fiction. Xi Jinping, the head of the Chinese Communist Party, has said he won't rule out taking Taiwan by force, urging the military to be ready for a possible invasion by 2027. The Chinese Communist Party claims Taiwan is its own territory, despite never having ruled the island. Taiwan rejects that claim. The show's producer Cheng Xinmei says the goal of the series is to wake people up, to make Taiwanese viewers think about what it could really mean if China were to invade. Zero Day has recruited 10 award-winning directors, with each one taking charge of a different episode. Luo Jinzhen is in charge of the eighth episode. Zero Day is a fable. I'm speaking of a moral fable, not a prediction of the future. I hope that through Zero Day, we can reflect on where we currently stand. Are we united enough? Do we share the same consensus and courage to achieve the victory and peace that should belong to our future? The series is set to air next year and is already sparking heated debate. While many are excited to watch it, some worry it could cause anxiety among the Taiwanese public. The U.S. Commerce Department Tuesday added three Chinese companies to its trade restriction list. The unverified list includes firms that the U.S. can't inspect to determine if they can be trusted with U.S. origin technology and other goods. Being on that list serves as a red flag and requires additional export checks. It means that U.S. exporters might have to apply for licenses before sending items to these companies. Shifting gears to Europe, the European Union's trade war with China over EV tariffs is heating up. European Commission Chief Ursula von der Leyen spoke out on Monday addressing the need for fairer competition. It's about creating fairness for Europe as a production location and that we have a level playing field. She said the bloc is currently negotiating with Beijing to find solutions like price commitments or investments in Europe. French President Emmanuel Macron also defended the bloc's move to impose tariffs on Chinese electric vehicles. This is a difficult time because there's a contraction of the European market and a very strong Chinese competition when you have subsidies on certain manufacturers in China. It's normal for us to put in place tariffs to compensate for it, otherwise we're not playing with equitable rules. Macron and von der Leyen's comments come as Chinese and European automakers clashed at the Paris Car Show, which is Europe's largest auto expo. Chinese EV giant BYD had a warning for the EU, saying the planned tariffs will only lead to higher prices and deter buyers. The Paris Auto Show kicks off as European carmakers face a competition crisis with new Chinese vehicles hitting the market in Europe. Here's a closer look. Driverless cars, monster trucks and electric vehicles. This year's Paris Auto Show promises to be a return to former glory. Fresh from launching its new robo-taxi, Tesla returns for the first time in six years. But the main focus will be competition between China and Europe. There are a few Chinese manufacturers in this motor show and so I'm quite interested what their innovations are. Europe's car industry is in crisis. Stellantis, BMW, Mercedes and Volkswagen all recently issued profit warnings. We are going to be challenged and I would say brutally challenged by the Chinese offensive on the European market. The European Union says China is flooding the market with low cost electric vehicles. They recently voted to impose tariffs up to 45 percent on EVs made in China. I think it's not a very good idea because of course we will have a kind of chain reaction on the very important Chinese market. China has already hit back, targeting French brandy and threatening tariffs on imports of pork products and large engine vehicles. Yes, this is a very tough market environment. Throwing regulation to protectionist measures. Our environment is challenging. For Volkswagen that could mean closing factories in Germany for the first time in the company's history. We in Germany won't be cheaper but we have to be as much more innovative as we are more expensive. This week in Paris it's all glitz and glamour for Europe's car makers but under the bonnet the struggles may be just beginning. Two of America's biggest concerns Russia and China are strengthening relations. Moscow's defense minister is in China as the two countries seek to deepen their alliance to counter the U.S.-led world order. A post on the Russian defense ministry's telegram app cited the Russian defense minister saying that the two countries share common views, assessments of situations and as well as an understanding of what to do next. This came after the defense minister had in his words substantive talks with the second highest leader in China's central military commission. China's defense ministry said the two countries wish to deepen and expand their military defense ties. Meanwhile China is ramping up its aggression against Taiwan. Also its navy and Russia's navy are still conducting drills in the Asia-Pacific region. My name is Flora Hua. I work as a reporter for China in Focus at NTD. I was born in China and both of my parents they're both Falun Gong practitioners. In 1999 the Chinese Communist Party started persecuting Falun Gong. Brutal persecution in China including forced labor, torture, murder and live organ harvesting. And my dad was arrested immediately. My mom was actually pregnant with me back then. My dad didn't come home until I was two. Back then I already could speak and walk so my dad didn't. So before 2008 Beijing Olympic Games the Chinese Communist Party tightened the controls on the dissidents groups including Falun Gong practitioners. I remember one night my mom was cooking and suddenly we heard very harsh knocks on the door. After my mom opened the door I saw a lot of police officers. They held my mom under control. They used one of her belts to put around her hands so she couldn't move. At that time I didn't feel scared because I was already stunned. I don't know what to do. The pressure in the whole society really just made us feel we can't breathe. They believe what the Chinese Communist Party said in those news, so-called news. Witnessing all these have changed my impression of media. I saw how powerful the influence of media can be. If you use it right it can be a tool to speak up for the vulnerable groups. If you use it as a tool of propaganda it can be a tool to crack down on faith groups and other minority groups. China doesn't really have freedom of speech or freedom of press so I know that after I grow up I can't study journalism in China. So that's why I set my eyes in America and I feel I have the obligation to help the world to know what is Chinese Communist Party really is and what kind of threats is posing to this world. The Chinese Communist Party's goal is not only limited within China. Its goal is to extend this persecution to the world. So after I came to NTD I was really honored to be part of China In Focus, this team, because it's so meaningful and I felt my mission is calling and I hope everyone in this world won't have the same experience that I had when I was young and just because of our faith. 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 chinainfocusntd.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 tomorrow.