How Will the Next US President Handle China?; China Hacks Breach Candidates' Networks|China in Focus

Welcome to China In Focus. I'm Tiffany Meyer. Our top story, where is Washington's China policy headed with a new president soon to take office? We compare former President Trump's and Vice President Harris's key China policies. The Chips and Science Act, a major bill designed to counter China. But with some controversies, would Republicans repeal it if Trump wins the election? China continues to send dozens of military aircraft near Taiwan each day. The jets did not carry nuclear weapons, but they're capable of it. Both presidential campaigns hacked by China right before the election. U.S. government agencies have launched a full-scale investigation. Major U.S. telecom systems, including Verizon and AT&T, were among the targets. Before we dive into today's top story, we have some announcements to share. China In Focus will pause our standard coverage on November 5th and 6th. That's this Tuesday and Wednesday. Instead, for your daily dose of U.S.-China info, check out our special episode, where NDD's Sam Wong and Epoch Times' Roman Balmakov join us as we ask Americans exactly what they know about China. Plus, join us for NDD's special live coverage of the 2024 presidential election. Join Steve Lance and myself for the latest results and in-depth analysis as polls close and votes roll in. Take a look. Election day is right around the corner. Have you voted yet? This is your chance to speak to enact the change you would like to see. And that's why we're here to keep you informed every step of the way. So stick with NTD for the most detailed analysis on all of the issues that matter most to you. And be sure to tune in to our election night coverage. And don't forget to vote. Tune in for The Nation Decides 2024 on Tuesday at 6 p.m. Eastern. And we'll see you back here at China In Focus on Thursday, November 7th for more of the latest news from Asia. Washington's China policy hanging in the balance as America is less than 34 hours away from voting day. How could relations between the world's two largest economies shape up under the next administration? Here's a look at where former President Trump and Vice President Kamala Harris stand on China. In an interview with CBS last month, Vice President Kamala Harris said she sees Iran as America's top adversary, not China. Last year, she said the U.S. was not seeking conflict with China. Former President Trump's running mate J.D. Vance says China is the biggest threat to the U.S. He said Trump would negotiate with Russia and Ukraine to end the war so America can focus on the real issue, which he says is China. Trump said he'd rather have a good relationship with China. He also said he would slap over 60 percent tariffs on Chinese goods if elected. He added he would revoke China's most favored nation trade status, a trade status that gives China access to larger markets, higher subsidies and lower tariff rates. Harris called Trump's tariffs plan a sales tax on the American people. She's against imposing tariffs across the board. As for Taiwan, Harris didn't make clear whether she would defend Taiwan in the event of a Chinese invasion. When asked by CBS, she said, quote, I'm not going to get into hypotheticals. She said the U.S. must maintain a one China policy and support Taiwan's ability to defend itself. Trump also remains vague on whether he would defend Taiwan, though he said he wouldn't need to use military force to deter Beijing from imposing blockade on Taiwan because Xi Jinping respects him and knows that he's, quote, crazy. Vice President Kamala Harris criticized House Speaker Mike Johnson over the weekend for walking back his comment on the Chips and Science Act, a major bill designed to counter China. It is my plan and intention to continue to invest in American manufacturing. That is the way we are going to win the competition with China for the 21st century. Last Friday, Johnson said Republicans would probably repeal the Chips and Science Act if they take control of Congress. He said, quote, I expect that we probably will, but we haven't developed that part of the agenda yet. We got to get over the election first. Johnson later retracted his statement, saying the Chips Act is not on the agenda for repeal. He added that there could be legislation to streamline the bill and eliminate its costly regulations and Green New Deal requirements. He explained that Republicans support investing in chip manufacturing. What they oppose is the Green New Deal provision inside the bill. The Biden administration passed the Chips Act to boost semiconductor manufacturing and research to counter China. But the Chips Act isn't just about microchips. According to analysis from a nonpartisan think tank in Colorado, roughly $67 billion, or a quarter of the bill's budget, would fund research to fight climate change. Both the U.S. and China want to dominate the semiconductor industry. The tiny devices are at the heart of all modern technology and power everything from iPhones to cars, home appliances and weapons. From price tags on store shelves to the microchips in our phones, U.S. relations with China have a big impact on our daily lives. But as Harris and Trump push forward with different China strategies, what could those policies mean for you? Trump says high China tariffs would bring factories back to the U.S. He explained to Bloomberg earlier that the answer for companies wanting to avoid tariffs is simple, build their plants in the United States and they won't have to pay tariffs. China analyst Antonio Graceffo says tariffs would also fuel U.S. manufacturing growth. The way this helps us decouple from China is that now the Chinese product will be more expensive than the American product and so people will buy the American product. The more American products we buy, the more our manufacturing sector can expand and they can start making more products. Treasury Secretary Janet Yellen recently warned that, quote, sweeping untargeted tariffs would make U.S. businesses less competitive and spark inflation. Kamala Harris echoed that concern warning that tariffs could drive up prices for American families. The Biden administration has kept and even expanded some Trump-era tariffs. Moving on to Taiwan, a series of surveys conducted by a Chicago-based think tank found roughly 60 to 75 percent of Americans support U.S. aid and arms packages to Taiwan, but opposed sending the U.S. military to engage in a conflict with China over Taiwan. Commerce Secretary Gina Raimondo has warned that a Chinese seizure of top Taiwanese chipmaker TSMC would be absolutely devastating to the U.S. economy because the island produces almost all the advanced semiconductors the U.S. needs. And geographically, Taiwan is part of the so-called first island chain. The term refers to the first marine defense line that helps contain China's military, preventing it from sending nuclear-armed submarines into deep waters off the Pacific for a stealth attack. China sending 37 military aircraft near Taiwan just two days before the U.S. election. Taiwan said some of the bombers spotted are capable of carrying nuclear weapons. The island's government said it sent its own forces to monitor the situation. The Chinese Communist Party sees Taiwan as part of China, despite never having ruled it. It has vowed to take the island under control by force if necessary. The U.S. doesn't have diplomatic relations with Taiwan, but is bound by law to sell weapons to the island so it can defend itself. Those weapons sales are facing a massive backlog, though, and Taiwan is still waiting to receive over $20 billion worth of weapons. That's not all China's been up to in the countdown to the high-stakes election. Washington says Beijing launched an unprecedented hacking operation on U.S. presidential candidates. Dubbed Salt Typhoon, the Chinese hacking group targeted the smartphones of multiple key players in the election. Former President Donald Trump and his VP pig, J.D. Vance, plus staff from both Republican and Democrat presidential campaigns, and Trump's family members were all targeted. On top of that, officials said federal wiretapping requests were also breached. Verizon, AT&T, and several other major telecom giants have fallen victim to the Chinese hacking campaign. The White House, the FBI, and Homeland Security have launched full-on investigations to assess how bad the situation is and what information China may have obtained. Craig Singleton, a China expert at a U.S. think tank, called the hack a high-stakes escalation. He added that it shows China's, quote, relentless ambition to undermine U.S. infrastructure while exposing America's vulnerabilities. This is not the first Beijing-linked hacking operation targeting high-profile U.S. figures or critical infrastructure like water, internet, communications, transportation, and energy. The FBI has battled with two other major Chinese hacking groups, Volt Typhoon and Flax Typhoon, this year. Lawmakers are urging telecom companies to close all loopholes in their systems. China is waiting for a stimulus package to boost its economy, but analysts say the size of the stimulus hinges on the outcome of the U.S. election. Here's more on how it could play out. Ting Wu, chief China economist at Nomura, believes China could have an up to 20 percent bigger stimulus if Trump wins the White House. Former President Trump has proposed hiking tariffs on Chinese exports to 60 percent across the board. If that happens, China's exports would be hit hard. This sector accounts for over 20 percent of China's GDP. Another Chinese economist, Zhu Bin, also predicted that China would see bigger domestic stimulus if Trump wins. In comparison, Vice President Kamala Harris supports President Biden's select tariff hikes on certain products, 100 percent tariffs on electric cars and 50 percent on solar panels. Coming up, Robert F. Kennedy Jr. is endorsing a New Hampshire candidate for the U.S. House of Representatives, a survivor of Communist China's cultural revolution and authoritarian rule. I made that decision after seeing her extraordinary debate. Amazon says it has a slight edge over cheap products. Chinese rivals like Timo and Xian find out why its executives believe the shopping giant is still on top. In Japan, launching a powerful new defense satellite. The launch marks a major step for Tokyo's defenses amid rising regional tensions. More on that after the break. Here on China In Focus. Welcome back to China In Focus. I'm Tiffany Meyer. Robert F. Kennedy Jr. says he broke his campaign's no endorsements rule to show his support for U.S. House candidate Lily Tang Williams for New Hampshire. Take a listen. But I want to break that rule during the last days of the campaign to endorse Lily, and I made that decision after seeing her extraordinary debate. Lily Tang Williams came to the United States from China in her 20s. She survived Communist China's cultural revolution and authoritarian rule, coming to the U.S. with only $100 in her pocket and $1,200 in debt to an American sponsor. She knew little English, but she worked her way up and became a successful entrepreneur. She's also traveled the country sharing her story of the horrors of living under communism and socialism. Amazon says it has an edge over fast fashion sites like Timu and Xi'an. In an earnings call yesterday, Amazon's chief financial officer broke down that advantage in the essential items department. NTD's Sean Marshall has more information. Amazon's focus on offering a higher quantity of everyday essentials like toothpaste is hurting its average selling prices, but it's also a guard against rivals such as Timu and Xi'an that offer extremely low prices on goods they ship from China. Amazon said people are shopping on Amazon more frequently and adding more low-priced items with each checkout. Strength in everyday essentials revenue is a positive indicator that customers are turning to us for more of their daily needs. We see that when customers purchase these types of items from us, they build bigger baskets, shop more frequently, and spend more on Amazon. The e-commerce giant has seen its market share shrink in the clothing department as Xi'an and Timu expanded in international markets with $12 dresses and $10 gadgets, but offering a variety of everyday products like dish detergent and floss with quick delivery is helping Amazon. Amazon reported third quarter revenue and profit on Thursday that beat Wall Street expectations. Xi'an is trying to ramp up selling everyday products too. Earlier this year it began teaming up with a skincare and personal care brands such as Colgate Palmolive to sell more household names on the platform. It expanded its product selection in 2023 to include beauty and personal care products, household items, and furniture. Head of technology research at DA Davidson, Gil Luria, said companies such as Xi'an would be less successful in expanding to day-to-day products. He said these Amazon rivals have instead specialized in items that the consumer is less time sensitive about, such as dresses, accessories, and gadgets. Amazon's real competition is more localized to the United States with Walmart and Target. Both regularly continue to expand their product options available in their website stores. Sean Marshall, NTD News. A growing number of western companies are facing an uncertain outlook in China. American cosmetics company Estee Lauder's shares slumped by more than a quarter of their value last week. That's after the company pulled its annual profits forecast and cut its dividend. Beijing recently pledged a But Estee Lauder still expects to see strong declines in the short term, given weak consumer sentiment in China. L'Oreal, one of the world's largest cosmetics companies, also flagged poor spending in China as cause for concern. Pharmaceutical company Merck & Co. is also hitting a roadblock there. Its star vaccine product Gardasil has been seeing weak sales in China, and the slowdown is expected to last into 2025. Chinese tech giant Huawei also reported a 13 percent drop in net profit for the first nine months of 2024. The U.S. presidential election is right around the corner, and China is seizing the chance to boost its military presence in the Indo-Pacific. NTD's Flora Hua brings us the latest. For the first time, China conducted a The move is seen as the Chinese navy flexing its muscles in the South China Sea. One of the carriers, the Liaoning, participated in Beijing's war games near Taiwan last month. Now more on China's maritime power. A new satellite image suggests that China might have built a new aircraft carrier. It was captured by Planet Labs a few weeks ago. A former U.S. Navy submarine commander said the size and shape of this vessel is much smaller than any other carrier China owns, meaning it could be the world's first civilian carrier. And zooming further out, Russia recently sent its most advanced fighter jet to China to take part in an air show next week. Known as the Su-57, the Russian jet is seen as a counterweight to some of the U.S.' top warplanes. The fighter jet is equipped with stealthy capabilities and modern weapon systems. Analysis suggests Russia may be using this air show as a platform to expand its defense exports. Flora Hua, NTD News. China's top military official made a rare visit to Vietnam, meeting with the country's new Communist Party chief, Atollah. Such high-level visits are usually reserved for Chinese regime leader Xi Jinping. To get more insights on what this visit means, NTD's Evelyn Li spoke with Antonio Graceffo, China analyst and the author of Red Alert, China's Global Power and How It Threatens U.S. National Security. What kind of goal or message does Jiang, the Chinese military mission chief, what do you think he brings with him? You know, it's very suspicious that Xi Jinping was not on this mission because the Vietnamese, I was in Vietnam, by the way, when this meeting took place, and they treated it as a state visit, even though Xi Jinping was not there. And it is possible that Jiang Yousha is trying to show that he's got some power or some autonomy. So tell me more about that. What was so unusual about that? Well, you have the chairman of the Central Military Command of China meeting with the head of state of another nation. So that's a little bit strange. Normally, that would be a meeting between two heads of state. And then the central military commander would meet with his Vietnamese counterpart rather than with the head of state. The other thing, this was the first high level state visit to Vietnam since Tuyet Duong assumed his position last May. So that's also a little bit unusual that his first visit is not from a head of state, but rather from the chairman of the Central Military Commission. Beyond that is the discussion itself was a bit unusual because they're discussing border security agreements while the two countries are actually in a border dispute. So let's talk about this a little bit later about international politics. But in terms of Jiang's visit, do you think then that this was a heads up to the world that Xi Jinping doesn't actually have the full power anymore? It's possible that they were trying to send that they, and I'm not sure who they would be, but that they are trying to send a message that Xi Jinping does not have 100% of control over everything anymore. There was also some ambiguity in the greetings that were extended back and forth because Thu Lam sent his respects to Xi Jinping. And only one of many Vietnamese government reports that I read said that Zhang Youxia extended Xi Jinping's greetings to Thu Lam. Only one of the Vietnamese media reported that. So it is possible that he actually did not even convey Xi Jinping's greetings. So what would it mean then if there actually is a shift in power dynamics within the CCP in China? Why would this be an important change for the international community? Well, so far, Xi Jinping has had, he's the paramount leader. He has control over everything. And this would show that there is beginning to be a crack in his armor. I think the economy is very bad and Xi Jinping has sort of reneged on his promise to provide the people with a moderately prosperous society. I think he held the COVID lockdowns too long. And he did a number of things to upset the West, which has then impacted foreign direct investment in China, jobs, exports. So I think Xi Jinping's rule is starting to, I don't want to say it's collapsing. I will just say that it is beginning to show some cracks. Well, Antonio Graceffo, I think some really great insights as always. I appreciate you coming on and taking your time today. Thank you very much. Japan launched a defense satellite Monday aimed at accelerating military operations and communication. The successful launch comes as Tokyo seeks to build up its defense abilities amid growing tensions in the region. Here's more. The Japan Aerospace Exploration Agency said the H-3 number four rocket launch went as planned. The rocket was carrying a satellite that uses X-band communication for information and data sharing. X-band satellites are less affected by weather conditions and can support stable communication. Japan is building up its military amid rising tensions with China, North Korea, and Russia. The nation's Joint Staff Systems Department chief said the satellite will enable high-speed data transmission across Japan's ground, naval, and air self-defense forces. 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 soon. Coming up on NTD, stay tuned for America's Hope with Kelly Wright. Tonight, a special edition of America's Hope will focus on the upcoming U.S. election. Kelly introduces Senator Tim Scott, who discusses his support for former President Donald Trump. Also, a panel of black men, Democrat and Republican, share their hope for America. Also joining the lineup is Dr. Oz Guinness, author and known as a missionary to America. He voices his love for the country and his optimism for its future. That's tonight at 10 p.m. after China In Focus. Thanks for watching. See you later.