• China approves the world’s first flying taxi | Science & technology
• White House backs up U.K. decision to invite China to AI summit
• Video shows Chinese jet flying within 10 feet of B-52, U.S. says
• Taiwan monitors Chinese carrier group in Pacific
• Why China is restricting exports of graphite | Business
• China’s foreign minister is in Washington. That counts as progress.
• Kiribati atoll 2,000 km from Hawaii gets U.S. wharf as China eyes airport
• China says US has no right to get involved in its problems with Philippines
• China says US has no right to get involved in problems between it and Philippines
• Mideast in focus as US, China meet to pave way for Biden-Xi summit
• Insight: China rushes to swap Western tech with domestic options as U.S. cracks down
• Exclusive: Biden set to speak with China“s top diplomat Wang Yi on Friday, sources say
• Russia, China veto US push for UN action on Israel, Gaza

China approves the world’s first flying taxi | Science & technology

https://www.economist.com/science-and-technology/2023/10/25/china-approves-the-worlds-first-flying-taxi

Anyone keen to view from on high the sprawling cityscapes of Guangdong, a bustling province in southern China, may soon be able to do so from the cabin of a flying taxi. On October 13th the Civil Aviation Administration of China (CAAC) awarded a “type certificate”, a crucial piece of aviation paperwork, to the world’s first electric vertical take-off and landing (eVTOL) taxi. And in case that does not sound futuristic enough, the small two-seater, called the EH216-S, was also cleared to fly without a pilot on board.

The EH216-S is made by EHang, a company based in Guangdong. It resembles a scaled-up consumer drone with a passenger bubble mounted on top. Propulsion is provided by 16 small rotors, mounted on the tips of eight arms that fold away when the vehicle is not in use, allowing it to park in small spaces.

EHang has already set up a factory to produce the aircraft at scale. The firm hopes sightseeing flights in Guangdong could begin before the end of the year. There is interest from elsewhere, too. On October 18th the city government of Hefei, in Anhui province, announced a $100m deal with EHang to provide tourist flights and other services such as deliveries and emergency response, using 100 of the machines. The company believes its eVTOLs will one day be able to offer taxi rides at a similar price to terrestrial cabs.

Scores of eVTOLs are being developed around the world. These have already attracted more than $30bn in orders, says Robin Riedel, co-lead of the Centre for Future Mobility, a part of McKinsey. Being the first to certify one could allow China, which is keen to promote the industry, to gain valuable operating experience.

The CAAC gave its approval after EHang had conducted more than 40,000 test flights, including with volunteer passengers in 18 cities across China. It also subjected the EH216-S to structural analysis and crash tests, and checked its ability to keep flying if one of its rotors fails. Regulators also inspected the wireless network which EHang uses to link its flying taxis to a control centre on the ground. That allows backup pilots to land an aircraft by remote control if there is a problem.

EHang says its pilotless eVTOLs will be quieter than helicopters, their closest cousins, and much cheaper to operate, thanks in part to the ability to swap out an expensive pilot for a second paying passenger. Performance, though, will be limited, at least at first. The EH216-S has a range of about 30km, and a speed of up to 130kph. EHang is developing a second version, the VT30, with 300km of range—though it will require separate certification.

The firm thinks that doing away with pilots will make things safer too, in the same way that enthusiasts argue that self-driving cars, if they are ever widely deployed, could prove safer than human-driven ones. A computer’s attention never wavers, and its reflexes operate at the speed of silicon. And flying is, in many ways, much easier to automate than driving, for there are fewer obstacles and unexpected situations to navigate.

EHang has ambitions beyond China, too. It has carried out demonstration flights in America and Europe with the aim of obtaining type certificates in both markets. The company says it hopes its Chinese approval will shorten that process. But American and European aviation regulators are likely to take a more cautious approach than their Chinese counterparts. Both have signalled that they will approve only piloted air taxis at first, and allow autonomous flights only after the vehicles have proved themselves safe in human hands. Given that most piloted eVTOLs under development are designed with automation in mind, having to build piloted versions increases costs. It might, though, encourage more people to use them.

The firm’s closest rivals are Volocopter, a German company, and a pair of Californian firms, Joby Aviation and Archer Aviation. All three are conducting test flights of piloted eVTOLs of various designs. Volocopter’s vehicle, for example, looks more like an ordinary helicopter, with a passenger pod slung below a circular frame supporting 18 small propellers. It hopes to start carrying passengers in its two-seater version (with one seat used by a pilot) at the Paris Olympics, which open in July 2024.

And EHang is not alone in taking the autonomous route first. Wisk Aero, another Californian firm, has begun testing a pilotless eVTOL as part of America’s certification programme. The firm, which is a subsidiary of Boeing, one of the world’s biggest aircraft-makers, will also use a ground-based control centre to monitor flights. As Wisk expects to obtain certification only sometime “within this decade”, EHang might find it has to hover hopefully for a long while before it can do the same.■

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White House backs up U.K. decision to invite China to AI summit

https://www.washingtonpost.com/technology/2023/10/26/white-house-china-ai-uk-summit/2023-10-26T16:46:43.716Z

President Biden’s top science adviser on Thursday expressed support for the United Kingdom’s decision to invite China to its major upcoming summit on artificial intelligence, which has drawn political scrutiny due to concerns over the country’s development of the technology.

“I thought it was a great process that they went through to figure out how to convene the right people at the right table,” Arati Prabhakar, the director of the White House’s Office of Science and Technology Policy, told reporter Cat Zakrzewski at a Washington Post Live event.

She added, “Look, absolutely, we always want to make sure that there’s good dialogue going on with every part of the world, so I thought that was a terrific idea.”

Government officials, Silicon Valley executives and civil society groups are set to gather at the summit next week, which is set to occur just days after the White House is expected to unveil an executive order to tackle the use of AI tools, The Washington Post reported Wednesday.

The international meeting arrives as policymakers globally race to develop or implement standards to boost AI development and safeguard its use.

China’s inclusion, however, has sparked backlash. Former British Prime Minister Liz Truss on Thursday publicly released a letter demanding that her successor Rishi Sunak withdraw China’s invitation, writing that she was “deeply disturbed” by the choice.

“The regime in Beijing has a fundamentally different attitude to the West about AI, seeing it as a means of state control and a tool for national security,” Truss wrote.

For years, U.S. policymakers have voiced concern about the country potentially losing pace to China in developing its AI technology and ceding a role in shaping global standards for its deployment.

“I don’t think we’re falling behind,” Prabhakar said of China and other countries on Thursday.

Video shows Chinese jet flying within 10 feet of B-52, U.S. says

https://www.washingtonpost.com/national-security/2023/10/26/chinese-j-11-fighter-b-52-intercept/2023-10-26T17:03:49.740Z

HONOLULU — A Chinese fighter jet flew within 10 feet of an American B-52 bomber operating in international airspace over the Pacific earlier this week, passing beneath the bomber’s wing and disappearing from the pilot’s view, U.S. military officials said Thursday.

It was a highly unsafe maneuver that risked causing a midair collision, officials said.

Video released by U.S. Indo-Pacific Command shows the Chinese J-11 fighter closing in quickly on the B-52, passing in front of and below the American jet’s wing, over the South China Sea on Tuesday. The encounter happened at night, officials said. “We are concerned this pilot was unaware of how close he came to causing a collision,” the command said in a statement.

“It’s a dangerous move — too close and completely unprofessional,” said Charlie “Tuna” Moore, a retired Air Force fighter pilot.

The incident comes a week after the Pentagon released a series of videos showing what U.S. officials called unsafe Chinese air intercepts from the last year and a half. The surge in such coercive maneuvers is all the more concerning, Pentagon officials say, as Beijing has repeatedly rebuffed U.S. attempts to restart military-to-military channels of communication designed to prevent such encounters.

Chinese fighter jets buzz U.S. planes in dramatic new videos

The video’s disclosure also coincides with the arrival in Washington of China’s top diplomat, Wang Yi, who will be meeting with Secretary of State Antony Blinken in advance of an expected bilateral summit between China’s Xi Jinping and President Biden next month in San Francisco. The topic of the stalled military communications is likely to be discussed, officials said.

Moore, now a visiting professor at Vanderbilt University, said that when the Chinese fighter jet was out of view of the U.S. pilot, that greatly enhanced the chances of disaster. “If the American plane needed to maneuver and they’re that close and can’t see [the Chinese aircraft], the opportunity for a collision goes up,” he said.

He also noted that the Chinese fighter flying that close the larger American aircraft could encounter wake turbulence that could cause the two planes to collide.

Coming on the heels of last week’s video release and Pentagon condemnation of the incidents, the latest encounter is a clear rebuke from Beijing, Moore said.

“It’s a power play,” he said. “No doubt about it. They’re basically saying ‘we’re not going to be intimidated by the United States’ ” or its concerns about the Chinese military violating international air safety norms. “And that’s concerning,” he said. “They’re endangering lives.”

The Pentagon last week released its annual report on China’s military power, which included new statistics showing how the Chinese military has ramped up its aggressive behavior in the Pacific, conducting more than 180 risky intercepts of U.S. spy planes in the past two years — already more than in the previous decade. Similar encounters with U.S. allies and partners boost the number to nearly 300, officials said.

China’s bolder behavior, officials say, is an apparent effort to get the U.S. military to back down in a region that Beijing seeks to dominate.

In April 2001, a Chinese fighter jet collided with a Navy EP-3, killing the Chinese pilot and causing the U.S. aircraft with 24 crew members to make an emergency landing on Hainan Island, resulting in an international incident. The Americans were detained and interrogated for 11 days by Chinese authorities before being released.

Taiwan monitors Chinese carrier group in Pacific

https://reuters.com/article/taiwan-china-defence/taiwan-monitors-chinese-carrier-group-in-pacific-idUSKBN31Q133

Taiwan's military sent forces to keep watch on Thursday after a Chinese naval formation led by the aircraft carrier Shandong passed the island's south and entered the western Pacific, Taiwan's defence ministry said.

The Shandong participated in Chinese military drills around Taiwan in April, operating in the western Pacific. It also sailed through the Taiwan Strait in June and last month also carried out drills in the western Pacific.

The ministry said in a statement the formation led by the Shandong had "crossed the Bashi Channel and entered the western Pacific", though it did not say how many ships there were.

The military has deployed "appropriate" forces to keep watch the ministry added, without elaborating.

Earlier on Thursday, the ministry said it had detected 15 Chinese military aircraft which entered Taiwan's air defence zone, referring to a broader area of air space Taiwan monitors rather than its territorial air space.

The aircraft, which it said included H-6 bombers, J-16 fighters and drones, were accompanying Chinese warships carrying out "joint combat readiness patrols", the ministry said.

China's defence ministry did not answer telephone calls seeking comment outside of office hours.

China, which has never renounced the use of force to bring Taiwan under its control, has stepped up military activity near the democratically governed island, responding to what it calls "collusion" between Taiwan and the United States.

Taiwan disputes Beijing's sovereignty claims.

Why China is restricting exports of graphite | Business

https://www.economist.com/business/2023/10/25/why-china-is-restricting-exports-of-graphite

THE CHINESE government was caught off-guard in October last year when America hit it with tough export controls on high-powered semiconductors. Communist leaders in Beijing took months to formulate a firm response. Today China appears far more prepared to fight the simmering war over the future of technology. A recent strengthening of those American chip controls by President Joe Biden’s administration was matched just three days later, on October 20th, with new restrictions on exports of Chinese graphite.

America’s latest volley, which restricts the types of chips that can be sold to China, has been anticipated for weeks. Its original controls curtailed sales to Chinese entities of the cutting-edge chips used in the development of artificial intelligence (AI). This included the A100 chip made by Nvidia, a Californian chipmaker. But the restrictions, known as “foreign direct product rules” (FDPRs), still allowed Chinese companies to buy less powerful integrated circuits. With ingenuity, many such chips could be strung together to produce greater processing power.

A recent home-grown chip that popped up in mobile phones made by Huawei, a Chinese telecoms giant first blacklisted by America in 2019, has fuelled concern in Washington that China was finding ways around the rules. To forestall more Huawei-like surprises, the latest FDPRs target broader performance measures, making it more difficult to combine punier parts into a more powerful whole. Chinese companies can no longer, for instance, buy Nvidia’s less advanced A800 and H800 chips as replacements for A100s.

This time China did not drag its feet. The ministry of commerce introduced licences for exports of high-grade graphite products from December 1st. The grey material may seem dull compared with powerful microprocessors. But it is commonly used in anodes of lithium-ion batteries. This makes it critical to many countries’ decarbonisation plans. And, because Chinese firms refine about 90% of the world’s graphite, it gives China leverage.

For several years China has been testing out the use of graphite as an economic weapon. Starting in 2020, after a small diplomatic row with Sweden, Chinese companies have been quietly prevented from selling graphite to partners there. Some insiders suspected that the informal ban was aimed at holding back the development of green technologies in Sweden.

The latest restrictions are much broader and more formal than those piecemeal ones. Unlike an all-out export ban, mandatory exports licensing does not completely undermine the domestic graphite industry, which sells a lot abroad. It also allows the authorities to target buyers as it pleases. The tool has become China’s weapon of choice in the economic war with America. Similar measures were applied in August to gallium and germanium. China controls 80% of the world’s supply of the two metals, which are used in chipmaking. Gallium, in particular, shows promise in next-generation semiconductors.

Foreign buyers of Chinese products are not the only collateral damage in the escalating economic conflict. On October 19th the Japanese government said that a businessman working for a Japanese firm who was detained in March had been formally arrested on spy charges. Three days later Chinese state media said that Foxconn, a Taiwanese company that assembles iPhones, was being investigated for possible tax and land-use violations. Executives at WPP, a British advertising firm, were recently detained too.

The Chinese government appears to be preparing for further escalation. According to Reuters, a news service, state-affiliated researchers have been looking for ways round the types of sanctions imposed by the West on Russia after its invasion of Ukraine. This is said to include building a global network of companies that can dodge sanctions and issuing gold-backed bonds in order to remain connected to the global economy, even if America tries to sever China’s commercial ties to the rest of the world. China’s leaders clearly envision darker days ahead. ■

China’s foreign minister is in Washington. That counts as progress.

https://www.washingtonpost.com/world/2023/10/26/china-united-states-wang-yi-washington/2023-10-25T02:43:29.417Z

When China’s top diplomat Wang Yi arrives in Washington on Thursday, he and his U.S. counterparts are unlikely to agree on much beyond the need to stabilize fraught ties between the world’s two most powerful countries.

But in the current climate, 90 percent of success is showing up.

The mere fact that China’s top diplomat is visiting D.C. for meetings with Secretary of State Antony Blinken and national security adviser Jake Sullivan — and potentially President Biden — is a marker of progress since the countries started exploring a thaw in ties over the summer. It is expected to pave the way for a meeting between President Biden and Chinese leader Xi Jinping in San Francisco in November.

It’s the remaining 10 percent that will prove difficult.

Wang is likely to come with an agenda markedly different from Washington’s, one that is aimed at convincing Washington to loosen restrictions on technology exports to China and to roll back the support for Taiwan that Beijing sees as a violation of previous U.S.-China agreements.

“We want to know that the United States values Sino-U. S. relations as much as China does,” said Qiu Huafei, professor of international relations at Tongji University in Shanghai who studies China-U.S. relations. “It cannot be just competition without cooperation.”

China’s top diplomat to visit D.C. amid tensions over South China Sea, Israel

Under the Biden administration, the two countries have clashed over U.S. controls on exports that could be used by China to develop weapons — restrictions that Beijing sees as an attempt to suppress its development; China’s threats to take Taiwan by force; as well as Xi’s growing friendship and support of Russian President Vladimir Putin throughout the Ukraine war.

Wang is likely to push for the United States to ease back on restrictions on advanced semiconductors aimed at stopping China from using the chips in military applications.

“On Beijing’s side, I think the priority has more to do with the relaxation of U.S. export controls over technology,” said Nadège Rolland, a scholar at the National Bureau of Asian Research.

Washington, for its part, appears focused on getting Beijing on side in the Israel-Gaza war and efforts to pressure Iran to hold back from intervening in the conflict.

Blinken said on Tuesday at the U.N. Security Council that he would work with Wang on his visit to Washington to prevent the Israel-Gaza conflict from spreading in the region. Iran has become increasingly reliant on China, its largest trading partner.

“It wouldn’t be surprising if Washington wanted to talk about the situation in the Middle East and maybe ask Beijing to use its good relationship with Tehran to keep the tensions contained,” said Rolland.

Chinese commentators, noting Blinken’s remarks and U.S. efforts to push China to take on a bigger role in the Middle East crisis, say this is not the point of the meeting.

Where China stands on the Israel-Gaza war and what it stands to gain

“During Wang Yi’s visit to the United States, the two sides are expected to discuss the Palestinian-Israeli issue, but it is not the core issue. Sino-U. S. relations have too many issues that need to be resolved,” Sun Xingjie, a professor at the School of International Relations at Sun Yat-sen University, told the state-run Hong Kong China News Agency.

Experts say it is unlikely that Beijing will use its influence in Iran. China’s role has so far been limited to calling for a cease-fire, reiterating its support for a two-state solution and faulting the United States for providing arms to Israel. While expressing sympathy for the people of Gaza and the Palestinian cause, China has not condemned Hamas’s Oct. 7 attack on Israel and has avoiding referring to the group.

“Both countries have an interest in regional stability,” said Moritz Rudolf, a research scholar at Yale Law School’s Paul Tsai China Center. “But China cannot project any military power in the region and it has no interest in doing so. It is a vocal bystander criticizing the West and calling for peace.”

As the United States approaches election season, Chinese scholars see the meeting as a key opportunity to at least stabilize ties before a potentially more hawkish administration takes office.

“With the U.S. election next year, resistance to improving Sino-U. S. relations will become stronger. There will be few opportunities to improve Sino-U. S. relations next year, so things must be done this year,” said Zhao Minghao, professor at Fudan University’s Center for American Studies.

Chinese state media have struck a conciliatory tone ahead of Wang’s trip, with the usually hawkish state-run Global Times calling the visit a “stabilizing sign.” Xi on Wednesday sent a letter to the National Committee on U.S.-China Relations saying that his country is willing to “properly manage differences and work together” with the United States.

Wang’s visit signals at least the resumption of more frequent high-level diplomatic and working-group exchanges between the two sides, most of which were frozen after incidents like then-House Speaker Nancy Pelosi’s 2022 visit to Taiwan and the discovery of a Chinese high-altitude balloon floating over the United States in February.

Military-to-military engagement, also on hold, between the two sides could resume. This week, Xi signed an executive order removing Defense Minister Li Shangfu, who vanished from public view nearly two months ago, from his ministerial position. Beijing has cited U.S. sanctions on Li, in place since 2018, as a key obstacle to resuming defense exchanges and meetings with U.S. Defense Secretary Lloyd Austin.

“Intentionally or not, removing him would pave the way for Li’s successor to meet with U.S. Defense Secretary Lloyd Austin,” the Eurasia Group wrote in a research note. U.S. officials are expected to attend a defense forum in China in next week.

Chinese balloon part of vast aerial surveillance program, U.S. says

Since Blinken’s visit in June, a string of American officials have visited China in an effort to repair ties, including Treasury Secretary Janet L. Yellen and Commerce Secretary Gina Raimondo. Chinese Commerce Minister Wang Wentao traveled to Detroit and Washington in May. Xi has not visited the United States since 2017.

Then-Foreign Minister Qin Gang agreed to visit Washington upon meeting Blinken in June but later disappeared from view before being removed from his post.

Sending Wang, currently the most senior Chinese official on foreign policy and an experienced diplomat who has dealt with the U.S. government for years, is one sign Beijing is eager to make progress.

“Wang is here to pave the ground for Xi’s San Francisco visit. That’s the core focus of the trip. It means issues will be negotiated, solutions will be discussed and details will be deliberated and inked,” said Yun Sun, director of the China program at the Stimson Center.

“His trip means that Xi is coming. Xi’s coming means a meeting with Biden. A Xi-Biden meeting means efforts to stabilize bilateral ties,” she said.

Lyric Li in Seoul and Theodora Yu in Hong Kong contributed additional reporting.

Kiribati atoll 2,000 km from Hawaii gets U.S. wharf as China eyes airport

https://reuters.com/article/usa-australia-pacific/kiribati-atoll-2000-km-from-hawaii-gets-u-s-wharf-as-china-eyes-airport-idUSKBN31Q0TK

A Pacific atoll 2,000 miles west of Hawaii appears set for a construction boom, with the United States and Australia on Thursday pledging a wharf for remote Kanton Island as China considers plans to revive a World War Two airfield.

Kiribati's population of 115,000 is scattered among 33 atolls over 3.5 million sq km (1.3 million sq miles) of ocean, and it has been a base for both U.S. and Chinese space tracking stations at different times.

One atoll, in particular, has recently become a focus for Washington and Beijing, after China resumed diplomatic ties with Kiribati, pronounced "kiribass", in 2019.

Kanton Island is a strip of land just 50 metres wide in some places whose 43-km length encloses a parallelogram-shaped lagoon. During World War Two it was a U.S. military base, with a wharf big enough for large ships, and a refuelling stop for flights between the United States and Australia.

Kiribati says it wants to build a hotel there to attract tourists.

In a joint statement on Thursday, U.S. President Joe Biden and Australian Prime Minister Anthony Albanese said they would co-finance maritime infrastructure in Kiribati, and rebuild Kanton Wharf.

The U.S. had already committed $29m to help Kiribati youth employment at a White House summit for the Pacific Islands last month.

China for its part sent experts to the atoll in March to conduct a feasibility study to build a Kanton Island Airport, with Chinese visitors able to travel to Kiribati visa-free from this month.

A Chinese diplomat in Kiribati told Reuters in a statement on Thursday that the proposal was still being studied.

However, a China Daily editorial last month said the U.S. had tried to block the Chinese plan.

The Chinese diplomat said Kiribati had pulled out of China's Belt and Road Forum in Beijing this month, citing its need to prepare to host a Pacific Islands fisheries meeting. Kiribati's government did not respond to a request for comment.

A Pacific expert at the Australian National University, Graeme Smith, said that amid strategic competition in the Pacific Islands, Kiribati was seen as a "country up for grabs - whether it sits in the China or U.S. camp".

"It is western Pacific, which is really America's backyard. It is very close to Hawaii," he said.

Washington pledged billions in economic support to nearby Palau, Federated States of Micronesia and Marshall Islands, under Compacts of Free Association (COFA) struck in the 1980s that saw the U.S. retain responsibility for their defense.

Kiribati, just as important geographically, got no such deal, Smith said.

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China says US has no right to get involved in its problems with Philippines

https://reuters.com/article/china-usa-philippines/china-says-us-has-no-right-to-get-involved-in-its-problems-with-philippines-idUSKBN31Q0NZ

The United States does not have the right to get involved in problems between China and the Philippines, the Chinese foreign ministry said on Thursday, as tensions simmer over conflicts in disputed waters of the South China Sea.

"The U.S. is not party to the South China Sea issue, it has no right to get involved in a problem between China and the Philippines," said ministry spokesperson Mao Ning at a regular press briefing when asked about the U.S. saying it will defend the Philippines.

China and the Philippines have had several high-profile confrontations in the South China Sea, most notably in disputed waters around the Second Thomas Shoal, part of the Spratly Islands.

Last Sunday, a Chinese vessel collided with a Philippine boat, with Manila condemning "in the strongest degree" the "dangerous blocking manoeuvres" of the vessel.

"The U.S. promise of defending the Philippines must not hurt China's sovereignty and maritime interests in the South China Sea, and it also must not enable and encourage the illegal claims of the Philippines," Mao said.

A spokesperson for the Philippine foreign ministry did not immediately respond to a request for comment.

U.S. President Joe Biden said on Wednesday at the White House that America's commitment to Philippines defence remains "iron-clad," after accusing China of acting "dangerously and unlawfully" in the South China Sea.

"Any attack on the Filipino aircraft, vessels, or armed forces will invoke ... our Mutual Defence Treaty with the Philippines," Biden said in remarks during a joint meeting with Australia's prime minister.

The United States and the Philippines recently agreed on new guidelines for their 1951 Mutual Defence Treaty. The guidelines now specifically mention that mutual defence commitments would be invoked if there were an armed attack on either country “anywhere in the South China Sea”.

China says US has no right to get involved in problems between it and Philippines

https://reuters.com/article/china-usa-philippines/china-says-us-has-no-right-to-get-involved-in-problems-between-it-and-philippines-idUSKBN31Q0NZ

The United States does not have the right to get involved in problems between China and the Philippines, the Chinese foreign ministry said on Thursday at a regular press briefing.

"The U.S. is not party to the South China Sea issue, it has no right to get involved in a problem between China and the Philippines," said ministry spokesperson Mao Ning in addressing a question on the US saying it will defend the Philippines.

"The U.S. promise of defending the Philippines must not hurt China's sovereignty and maritime interests in the South China Sea, and it also must not enable and encourage the illegal claims of the Philippines," Mao said.

U.S. President Joe Biden said on Wednesday at the White House that America's commitment to Philippines defense remains "iron-clad," after accusing China of acting "dangerously and unlawfully" in the South China Sea.

"Any attack on the Filipino aircraft, vessels, or armed forces will invoke ... our Mutual Defense Treaty with the Philippines," Biden said in remarks during a joint meeting with Australia's prime minister.

China and the Philippines recently have had several high-profile skirmishes in the South China Sea, most notably in disputed waters around the Second Thomas Shoal, part of the Spratly Islands.

Last Sunday, a Chinese vessel collided with a Philippine boat, with Manila condemning "in the strongest degree" the "dangerous blocking manoeuvres" of the vessel.

Mideast in focus as US, China meet to pave way for Biden-Xi summit

https://reuters.com/article/usa-china/mideast-in-focus-as-us-china-meet-to-pave-way-for-biden-xi-summit-idUSKBN31Q09N

Chinese Foreign Minister Wang Yi begins a long-anticipated visit to Washington on Thursday, as the U.S. and China seek to manage deep strategic differences and pave the way for an expected summit between presidents Joe Biden and Xi Jinping.

The Middle East war has added a fresh dynamic to the testy relationship between the superpowers and Washington is hoping Beijing could use its influence with Iran to help ensure the Israel-Hamas conflict does not spread to the wider region.

However, while both Beijing and Washington have spoken of looking for areas where they can work together, and Xi on Wednesday said China was willing to cooperate on global challenges, experts do not expect immediate progress.

The Biden administration's priority with Beijing has been to prevent intense competition between the world's two largest economies and disagreements on a host of issues from trade to Taiwan and the South China Sea veering into conflict.

U.S. Secretary of State Antony Blinken will welcome Wang at the State Department on Thursday, and he told the U.N. Security Council on Tuesday he would work with him to prevent the Middle East conflict from spreading.

Policy analysts in China and the U.S. say both sides share an interest in averting a wider war and that China, as a major oil purchaser, has considerable influence it could exert on Iran.

But whether Beijing will use it remains to be seen and experts say China may instead watch from the sidelines for a while longer.

"The Chinese certainly have an interest in preventing a direct U.S.-Iranian confrontation, as they are major oil consumers and that would spike prices," said Jon Alterman, head of the Middle East program at Washington's Center for Strategic and International Studies.

"Still, the Chinese are unlikely to do any heavy lifting here. I expect they'll want a seat at the table when the Israel-Gaza struggle gets resolved, but they don't feel much need or ability to hasten resolution."

Shi Yinhong, professor of international relations at Renmin University of China, said Beijing exerting its influence over Iran was "almost the only serious and practical U.S. expectation of China on the Middle East situation."

However Shi added: "The U.S. position on Iran is far from acceptable to China and vice versa. Mutual compromise on this issue could be too limited and small to be of any significance."

Washington has stressed the importance of China's ability to influence Iran. Blinken, during a whirlwind Middle East trip last week, spoke by phone to Wang and asked him to use Beijing's clout to ensure the conflict does not widen.

China has called for restraint and a ceasefire in response to Israel's bombardment of Gaza in retaliation for an Oct. 7 attack by Hamas that Israel says killed 1,400 people. Retaliatory Israeli airstrikes have killed over 6,500 people, the health ministry in Hamas-ruled Gaza said on Wednesday. Reuters has not been able to independently verify the casualty figures of either side.

"China has been working tirelessly to promote the cessation of hostilities and the restoration of peace. We have been maintaining close communication with the parties concerned," China's U.N. Ambassador Zhang Jun said on Tuesday.

Wang's visit to Washington comes after several top U.S. officials, including Blinken, visited Beijing in the past several months.

The veteran Chinese diplomat is expected to meet Biden's national security adviser, Jake Sullivan, on Friday. He is also expected to speak with Biden during his visit to the White House, according to two U.S. officials, although it is unclear how substantial their interaction will be.

Analysts expect the discussions to focus on preparations for an anticipated meeting between Biden and Xi on the sidelines of the summit of Asia Pacific Economic Cooperation (APEC) countries in San Francisco from Nov. 11 to 17. It would be Biden and Xi's first in-person meeting since a summit in Bali last November.

"There are substantive things to be ironed out and finalized," said Yun Sun, director of the China Program at Washington's Stimson Center. "(Wang) will be here for the negotiations only - the big deliverables will be reserved for the top leaders to announce."

On Wednesday, Xi said whether Washington and Beijing could establish the "right" way of getting along and managing their differences would be crucial to the world.

The two sides go into APEC from different economic perspectives, with economic policy analysts saying the U.S. has weathered challenging global conditions after the COVID-19 pandemic somewhat better than China.

U.S. and Chinese officials held a virtual meeting on Monday on macroeconomic developments, talks the U.S. called "productive and substantive" and China called "in-depth, frank and constructive."

U.S. officials said Taiwan and the South and East China Seas, where they accused Beijing of "destabilizing and dangerous actions" against rival territorial claimants, would also be on the agenda.

They said re-establishing military-to-military ties with China remained a top U.S. priority to avoid unintended conflict.

China's Global Times tabloid highlighted contradictions in relations.

"Although Sino-U.S. interactions have seen a rapid recovery in different fields," the U.S. policy of attempting to "contain" China had not changed, it said, accusing Washington of "two-faced tactics" in which it "frequently takes various opportunities to discredit China and create friction."

Insight: China rushes to swap Western tech with domestic options as U.S. cracks down

https://reuters.com/article/china-tech-software-insight/china-rushes-to-swap-western-tech-with-domestic-options-as-u-s-cracks-down-idUSKBN31Q02H

China has stepped up spending to replace Western-made technology with domestic alternatives as Washington tightens curbs on high-tech exports to its rival, according to government tenders, research documents and four people familiar with the matter.

Reuters is reporting for the first time details of tenders from the government, military and state-linked entities, which show an acceleration in domestic substitution since last year.

China has spent heavily on replacing computer equipment, and the telecom and financial sectors are probably the next target, said two people familiar with the industries. State-backed researchers also identified digital payments as particularly vulnerable to possible Western hacking, according to a review of their work, making a push to indigenize such technology likely.

The number of tenders from state-owned enterprises (SOEs), government and military bodies to nationalize equipment doubled to 235 from 119 in the 12 months after September 2022, according to a finance ministry database seen by Reuters.

In the same period, the value of awarded projects listed on the database totaled 156.9 million yuan, or more than triple the previous year.

While the database represents only a fraction of tender bids nationwide, it is the largest collection of state tenders publicly available and mirrors third-party data. China spent 1.4 trillion yuan ($191 billion) replacing foreign hardware and software in 2022, marking a year-on-year increase of 16.2%, according to IT research firm First New Voice.

But Beijing's lack of advanced chip-manufacturing capabilities prevents it from completely substituting products with alternatives that are entirely locally made, analysts say.

Previous domestic substitution efforts stalled because China did not have the "technical chops to pull off localization until now, and to a certain extent they still kind of don't," said Kendra Schaefer, head of tech policy research at Beijing-based consultancy Trivium China.

SOEs were instructed last year to replace office software systems with domestic products by 2027, the first time such specific deadlines were imposed, according to five brokerage firms that cited a September 2022 order from China's state asset regulator. Reuters could not independently verify the order.

Domestic replacement projects this year have targeted markedly sensitive infrastructure, the tenders show.

One partially redacted tender for a "certain government department in Gansu province" assigned 4.4 million yuan to replace an intelligence-gathering system's equipment, without providing specifics.

People's Liberation Army units in the northeastern city of Harbin and Xiamen in the south last December meanwhile issued tenders to replace foreign-made computers.

Tech researchers such as Mo Jianlei of the Chinese Academy of Sciences, the country's largest state-run research organization, said the Chinese government was increasingly concerned about Western equipment being hacked by foreign powers.

The state asset regulator did not return a request for comment.

Over the past year, state-linked researchers also called on Beijing to strengthen anti-hacking defences in its financial infrastructure due to geopolitical concerns.

One March research paper highlighted the dependence of China's UnionPay credit card system on U.S software firm BMC for settlements.

"Beware of security vulnerabilities in hardware and software set by the U.S. side ... build a financial security 'firewall'," the researchers wrote.

BMC declined to comment.

An article published this year in the journal Cyberspace Security by researchers from the state-run China Telecommunications Corporation concluded the country was overdependent on chips made by U.S. giant Qualcomm (QCOM.O) for back-end management, as well as on the iOS and Android systems.

"(They) are all firmly controlled by American companies," the researchers wrote.

As China has not signed World Trade Organization clauses governing public procurement, the substitution effort does not appear to violate international accords, according to the U.S. Treasury. The U.S. has implemented similar rules barring Chinese companies from public sector bids.

Qualcomm, Google (GOOGL.O) and Apple (AAPL.O) did not immediately return requests for comment.

China's effort to build an independent computing system dates back to at least its 2006 five-year plan for science and technology development, which listed the semiconductor and software systems sectors as national priorities.

This effort spawned state-owned companies that are increasingly winning major contracts. Two firms awarded the Harbin tenders were subsidiaries of China Electronics Corporation and China Electronics Technology Group Corporation - both heavily targeted by U.S. sanctions.

The state regulator's 2022 order pushed SOEs away from U.S. companies such as Microsoft (MSFT.O) and Adobe (ADBE.O), according to an employee of a Beijing-based firm that develops domestic office-processing software

China Tobacco, for example, in July began switching some subsidiaries from Microsoft Windows to Huawei's EulerOS, according to an employee of a software vendor that services the state-owned manufacturer.

The people spoke on condition of anonymity because they were not authorized to discuss clients and competitors.

For years, Western tech companies have shared their source code and entered into partnerships with domestic firms to address Beijing's concerns, but prominent computer scientists such as Ni Guangnan of the Chinese Academy of Engineering have said such measures are not sufficient for China's security needs.

China Tobacco, Microsoft and Adobe did not respond to requests for comment.

In September, Reuters and other outlets reported that some employees of central government agencies were banned from using iPhones at work.

"In certain sectors, customers ... are opting for domestic suppliers, with foreign suppliers frequently facing informal barriers," the European Union Chamber of Commerce in Beijing said in response to Reuters questions.

In a 2023 American Chamber of Commerce (AmCham) in Shanghai report, 89% of the organization's tech business members named procurement practices favoring domestic competitors as a regulatory obstacle. It was the highest percentage of any sector.

AmCham Shanghai President Eric Zheng acknowledged China's national security concerns but said he hoped "normal procurement procedures will not be politicized so that US companies can compete fairly and pursue commercial opportunities ... to benefit both countries."

The U.S. Department of Commerce, China Electronics Corporation and China Electronics Technology Group Corporation did not return requests for comment.

Chinese tech conglomerate Huawei has emerged as the leading firm in this replacement cycle, according to three people familiar with China's enterprise tech industry, who spoke on condition of anonymity given the sensitivity of the issue.

In 2022, Huawei's enterprise business, which includes software and cloud computing operations, reported 133 billion yuan in sales, up 30% on the previous year.

One of the people said privately-held Huawei was seen as more nimble than state-owned groups in rolling out products and executing projects.

The other two sources highlighted Huawei's broad product suite - spanning chips to software - as an advantage.

Clients also prize Huawei for its ability to process data on internal company servers and external cloud networks, as well as its wide offering of cybersecurity products, according to the employee of a China Tobacco tech supplier.

Huawei declined to comment.

The replacement drive has re-drawn entire sub-sectors of the software industry. The combined China market share held by five major foreign makers of database management systems – the majority of which are American - dropped from 57.3% in 2018 to 27.3% by the end of 2022, according to industry group IDC.

Despite heavy spending on domestic substitution, however, foreign firms are still dominant suppliers for banking and telecoms database management. Non-Chinese companies held 90% of market share for banking database systems at the end of 2022, according to EqualOcean, a tech consultancy.

Financial institutions are generally reluctant to switch database systems despite government pressure, said one of the industry sources, adding that they have higher stability requirements than many other sectors and local players cannot yet match their needs.

Even for personal computers, banks that switch from an international brand to China's dominant supplier Lenovo (0992.HK) would still be reliant on critical chip components provided by Western firms, one of the industry sources said.

($1 = 7.3165 Chinese yuan)

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Exclusive: Biden set to speak with China“s top diplomat Wang Yi on Friday, sources say

https://reuters.com/article/usa-china-biden-exclusive/exclusive-biden-set-to-speak-with-chinas-top-diplomat-wang-yi-on-friday-sources-say-idUSKBN31Q01K

President Joe Biden is expected to speak with Wang Yi when China's top diplomat visits the White House this week, according to two U.S. officials familiar with planning for the visit.

Wang, who is set to meet Biden's national security adviser Jake Sullivan, at the White House on Friday could see Biden in person at that time, according to one of the people.

The White House declined to comment.

It is unclear how substantial their interaction will be, but even an informal greeting would be Biden's senior-most interaction with the Chinese government since he briefly met Chinese President Xi Jinping's No. 2, Premier Li Qiang, on the sidelines of the G20 summit in New Delhi.

It comes as U.S. and Chinese officials set the stage for a long-sought, one-on-one meeting between Biden and Xi at November's Asia-Pacific Economic Cooperation (APEC) summit in San Francisco. Xi and Biden last met at a summit in Bali last November.

Wang is also set to meet Secretary of State Antony Blinken during his trip to Washington this Thursday through Saturday. Several top U.S. officials including Blinken met their Chinese counterparts in Beijing this summer.

Wang is the top foreign affairs official in the Chinese Communist Party and also foreign minister since the dismissal of Qin Gang in July.

Biden said during a press conference on Wednesday he plans to "compete" with China "according to the international rules - economically, politically, and other ways - but I'm not looking for conflict." He also warned Chinese officials against aggression toward the Philippines.

For his part, Xi said on Wednesday China is willing to cooperate with the United States as both sides manage their differences and work together to respond to global challenges, according to Chinese state media.

Russia, China veto US push for UN action on Israel, Gaza

https://reuters.com/article/israel-palestinians-un/russia-china-veto-us-push-for-un-action-on-israel-gaza-idUSKBN31P17E

Russia and China on Wednesday vetoed a U.S. push for the United Nations Security Council to act on the Israel-Hamas conflict by calling for pauses in fighting to allow humanitarian aid access, the protection of civilians and a stop to arming Hamas and other militants in the Gaza Strip.

The United States put forward a draft resolution on Saturday as global outcry grew over a worsening humanitarian crisis and mounting civilian death toll in Gaza. It made the move just days after it vetoed a humanitarian focused draft from Brazil, arguing more time was needed for U.S.-led diplomacy.

The initial U.S. text shocked many diplomats with its bluntness in stating Israel has a right to defend itself and demanding Iran stop exporting arms to militant groups. It did not include a call for humanitarian pauses for aid access. But it largely toned down the final text that was put to the vote.

"We did listen to all of you," U.S. Ambassador to the U.N. Linda Thomas-Greenfield told the 15-member council after the double veto, which she described as disappointing. "Though today’s vote was a setback, we must not be deterred."

It was a rare move by the United States to suggest Security Council action. Washington has traditionally shielded its ally Israel at the world body.

Ten members voted for the U.S. text, while the United Arab Emirates voted no and Brazil and Mozambique abstained.

"The draft does not reflect the world's strongest calls for a ceasefire, an end to the fighting, and it does not help resolve the issue," China's U.N. Ambassador Zhang Jun told the council after the vote. "At this moment, ceasefire is not just a diplomatic term. It means the life and death of many civilians."

U.N. Secretary-General Antonio Guterres has been appealing for a humanitarian ceasefire.

In the wake of the Security Council deadlock, the 193-member U.N. General Assembly will vote on Friday on a draft resolution put forward by Arab states that calls for a ceasefire. No country holds a veto in the General Assembly. Resolutions are non-binding, but carry political weight.

Israel has vowed to wipe out Hamas, which rules Gaza, in retaliation for an Oct. 7 attack that killed 1,400 people. Israel has struck Gaza from the air, imposed a siege on the enclave of 2.3 million people and is preparing a ground invasion. Palestinian authorities say more than 6,500 have been killed.

Russia's U.N. Ambassador Vassily Nebenzia accuses the U.S. of putting up a draft resolution that represented Security Council authorization of a ground offensive in Gaza by Israel "while thousands of Palestinian children will continue to die."

After the double veto, the Security Council then voted on a rival Russian-drafted text that called for a humanitarian ceasefire and withdrawal of Israel's order for civilians in Gaza to relocate south ahead of a ground assault.

Russia failed to the get minimum amount of support needed, winning only four votes. A resolution needs at least nine votes and no vetoes by the United States, France, Britain, Russia or China to be adopted.

It was Russia's second attempt at a resolution. Only five council members voted in favor of a Russian text on Oct. 16.

The elected 10 members of the Security Council now plan to work on a new draft resolution, Malta's U.N. Ambassador Vanessa Frazier said.

"This crisis is also gripped by a growing risk of a regional spill over. This demands our undivided attention," she said. "We have the duty and the obligation to act."