March 2024

Chinese Leader to Dutch PM: Restricting Technology Access Won’t Stop China’s Advance

BEIJING — Chinese leader Xi Jinping told visiting Dutch Prime Minister Mark Rutte on Wednesday that attempts to restrict China’s access to technology will not stop the country’s advance. 

The Netherlands imposed export licensing requirements in 2023 on the sale of machinery that can make advanced processor chips. The move came after the United States blocked Chinese access to advanced chips and the equipment to make them, citing security concerns, and urged its allies to follow suit. 

An online report from state broadcaster CCTV did not mention the chip machinery, but quoted Xi as saying that the creation of scientific and technological barriers and the fragmentation of the industrial and supply chains will lead to division and confrontation. 

“The Chinese people also have the right to legitimate development, and no force can stop the pace of China’s scientific and technological development and progress,” Xi said, according to CCTV. 

Dutch company ASML is the world’s only producer of machines that use extreme ultraviolet lithography to make advanced semiconductors. In 2023, China became ASML’s second-largest market, accounting for 29% of its revenue as Chinese companies bought up equipment before the licensing requirement took effect. 

Rutte, speaking to journalists after his meeting, declined to go into specifics of the talks. 

“What I can tell you is that … when we have to take measures, that they are never aimed at one country specifically, that we always try to make sure that the impact is limited, is not impacting the supply chain, and therefore is not impacting the overall economic relationship,” he said. 

The Dutch leader, who was accompanied by Trade Minister Geoffrey van Leeuwen on the trip, said the top issue for him in their meetings with Xi and Chinese Premier Li Qiang was the war in Ukraine. 

China has taken a neutral position on the war, providing Russia with diplomatic cover and economic support through trade. That stance has angered and frustrated much of Europe, which sees Russia as the aggressor and Ukraine as the victim. 

Rutte said it’s important for China to understand that “this is a direct security threat for us, because if Russia will be successful in Ukraine, it will be a threat to the whole of Europe. It will not end with Ukraine.” 

He added that he had asked China’s leaders “to put their considerable weight — and they can do that as far as I’m concerned in a very discreet way — but as much as possible on Russia to influence the course of events.” 

ASML, the Netherlands’ largest company, recently threatened to leave the country over anti-immigration policies that may impact the company’s ability to hire talent, leaving government officials scrambling to ensure that the firm does not leave. 

Van Leeuwen said this week in an interview with The FD, a Dutch business newspaper, that protecting the interests of ASML is a top priority but acknowledged that national security comes before economic interests. 

Beijing has repeatedly accused the U.S. of trying to hold back China’s economic development by restricting access to technology. In response, Xi has launched a campaign to develop home-grown chips and other high-tech products. 

“China always opposes the U.S. overstretching the concept of national security and making various excuses to coerce other countries into imposing a technological blockade against China,” Foreign Ministry spokesperson Wang Wenbin said in January. 

Rutte said that NATO and its growing ties with Asia did not come up at Wednesday’s talks. He is a leading candidate to be the next head of the alliance, which China has criticized for provoking regional tensions and making diplomatic forays into the Asia-Pacific region.
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Vietnamese Automaker VinFast to Start Selling EVs in Thailand

Bangkok — Vietnamese automaker VinFast announced Tuesday that it plans to sell its electric vehicles in Thailand and said it had tied up with auto dealers to open showrooms in the country.

VinFast, which only began exporting its EVs last year, faces stiff competition in Thailand from Chinese automakers like BYD. Tesla also recently entered the fray. All were displaying their latest models at the Bangkok International Motor Show.

The Thai EV market is small but growing fast, buoyed by incentives and subsidies from the government. The country of more than 70 million plans to convert 30% of the 2.5 million vehicles it makes annually into EVs by 2030.

VinFast hopes to start selling both its electric scooters and electric SUVs in the country in the next two months, Vu Dang Yen Hang, chief executive officer of VinFast Thailand, told The Associated Press.

Details about pricing and buying the EVs are likely to be announced later this year.

Thailand accounted for 58% of all EV sales in Southeast Asia in 2022, ahead of both Vietnam and Indonesia, according to market research firm Counterpoint Research. But the EV market remains small, accounting for only 0.5% of EV sales worldwide in 2022.

Thailand is trying to change this with incentives to promote manufacturing and sales of EVs, such as reducing import duties and paying subsidies to make them more price competitive.

VinFast has set a target of selling its cars in 50 markets worldwide by the end of 2024.

Initially it’ll rely on existing charging developers in Thailand, but the long-term plan was to work alongside V-Green, a company that builds EV charging stations and is owned by VinFast’s parent company, said Hang.

“We will be working alongside [V-Green] to build infrastructure for our customers in Thailand who are using our cars,” she said.

V-Green was launched this month and plans to spend $404 million in the next two years to build charging stations for VinFast cars in different countries. Like VinFast, it is a part of the sprawling conglomerate Vingroup, which began as an instant noodle company in Ukraine in the 1990s. It is founded and run by Vietnam’s richest man, Pham Nhat Vuong.

VinFast’s foray into Thailand is part of a global expansion that has included exports of EVs to the United States. The company is building an EV factory in North Carolina, where production is slated to begin later in the year. Another factory is under construction in India, and it plans another in Indonesia.

VinFast has begun shipping EVs made in Vietnam to neighboring Laos to supply vehicles for Green SM, an EV taxi operator that is mostly owned by VinFast’s founder, Vuong.

Last year, the company listed its shares in August on Nasdaq, where they initially soared, pushing its market value briefly above those of General Motors Corp. and Ford Motor Co. But investor enthusiasm has cooled, and the company lost more in than $1.4 billion the first three quarters of 2023.

VinFast has struggled to sell its EVs in the U.S., and its early cars have received bad reviews. But the company maintains that if it can succeed in the crowded and competitive American market, it can succeed anywhere.
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US Aims to Tap Domestic Lithium Supply Without Chinese Products

washington — Earlier this month, the U.S. Department of Energy announced a record conditional loan of $2.26 billion to tap the largest known lithium reserves in North America. The loan is an important step in an effort by the U.S. government to reduce reliance on China for the metal used to make batteries.

Analysts, however, say that it may be too late to move away from reliance on China completely when it comes to metal processing and the production of batteries.

The DOE’s Loan Programs Office (LPO) says the funds, if approved after review, will help the Lithium Americas Corp. construct a lithium carbonate processing plant at the Thacker Pass mine project in Humboldt County, Nevada.

The LPO says the project would help “secure reliable, sustainable domestic supply chains for critical materials, which are key to reaching our ambitious clean energy and climate goals and reducing our reliance on economic competitors like China.”

Lithium Americas Corp. on its official website says battery materials could be “completely sourced and manufactured in the U.S., bringing down the overall carbon footprint, transport costs and supply chain risks.”

The LPO says lithium carbonate from Thacker Pass could eventually support the production of batteries “for up to 800,000 electric vehicles (EVs) per year, saving 317 million gallons of gasoline per year.”

Although the U.S. has made pioneering and groundbreaking contributions to the development of the lithium ion battery, industry experts say lithium processing and EV battery production is dominated today by China.

“Parts of our key supply chains, including for clean energy, are currently over concentrated in China,” said U.S. Treasury Secretary Janet Yellen in prepared remarks March 2 when she visited a U.S. lithium processing facility in Chile, which holds the world’s largest reserves of the metal.

“This makes America more vulnerable to shocks in China, or whatever country dominates production, from natural disasters to macroeconomic forces, to deliberate actions such as economic coercion.”

A report last year by the Organization for Economic Co-operation and Development said China increased restrictions on its exports of critical minerals ninefold between 2009 and 2020.

Data from the U.S. Geological Survey shows the output and scale of lithium mines in Australia and Argentina far exceed China’s. In 2022, Australia’s lithium mine output was more than three times China’s.

Refining, processing still issues

But industry experts say while Western countries have poured a lot of investment into developing raw minerals, they have paid little attention to refining and processing, areas in which China dominates.

Ellen R. Wald, a nonresident senior fellow with the Atlantic Council Global Energy Center, tells VOA, “Lithium is not useful just as it is. You have to refine it to make what’s used in the batteries. And that’s really where China controls the supply chain because almost all of the refining for lithium that creates it into the substance that can be used to make batteries is done in China.”

According to the Chatham House, Chinese companies accounted for about 72% of global lithium refining capacity in 2022.

China also dominates much of the global market for battery-related equipment, leaving limited options for U.S. companies that want to showcase their domestic production credentials.

American Battery Factory Inc., or ABF, is an emerging battery manufacturer that says it is “the first network of entirely U.S.-owned vertical manufacturing, supply chain and R&D for Lithium Iron Phosphate battery cells in the United States.”

But to secure custom automation equipment and machinery for use in its first large-scale rechargeable battery factory in Tucson, Arizona, it has formed a partnership with Lead Intelligent Equipment, a Chinese company.

Dependent on China

In an article in January, Wald said China is in a good position to restrict access to lithium-ion batteries to certain countries or companies as it wishes, and if the U.S. military suddenly finds itself in need of more specialized batteries, the Pentagon may not be able to obtain them.

In February 2022, China announced sanctions against Lockheed Martin, the manufacturer of the F-35 fighter jet, and Raytheon Technologies, the world’s largest missile manufacturer. Although China did not specify the details of the sanctions, it is generally considered to be a possible threat to cut off the Western countries’ supply of critical minerals.

Wald told VOA, “The U.S. defense industry is basically dependent on China for these specialized batteries that they need in all of their drones and their surveillance systems and all sorts of things.”

David Whittle, adjunct professor in resource engineering at the Department of Civil Engineering at Monash University in Australia, told VOA even if “the world develops a robust, independent supply chain for lithium, up to the point of battery chemical production, at present, China would still be the largest customer for those chemicals, since it is the largest cell manufacturer, the largest battery pack manufacturer, the largest E.V. manufacturer and the largest market for E.V.s.”

The Thacker Pass lithium mine is located at the southern end of the McDermitt Caldera, and is considered to be one of the largest in the world.

The record loan to Lithium Americas Corp. is the largest such loan the U.S. has offered for the development of a lithium mine project since the country stepped up its efforts to build a domestic supply chain for critical minerals in recent years.

The Thacker Pass lithium project is not expected to start production until 2028, and even then, Wald said, that goal may be too ambitious. The mine plans to extract lithium from clay, but Wald says it has never been mined in this way on a commercial scale. In addition, the mine is in a remote and sparsely populated location, requiring the company to build housing for workers and their families and to reassess its environmental impact.

Despite the challenges, Wald said creating a secure supply chain is not impossible for the U.S.

“I don’t think it’s too late,” Wald said. “Will they be able to compete with China globally? Probably not. But can we create non-Chinese sustainable and secure supply chains? Yeah, we can do it.”

Whittle said Western countries being “resilient to challenges from China” can’t mean “isolated from China” anymore, but resilience is still possible.

The DOE’s LPO said while their announcement shows intent to give the loan, the company must first satisfy certain technical, legal, environmental and financial conditions before the funds will be released.

Adrianna Zhang contributed to this report.
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Critics Slam Apple CEO Tim Cook for Laudatory Remarks in China

 Washington — Tim Cook, CEO of the American technology giant Apple, is facing criticism at home over laudatory remarks he made about China during a recent visit to try to boost sagging iPhone sales in the lucrative market. 

Cook was in Shanghai for the opening of China’s largest Apple retail store on Friday and met with Chinese political and business people. He praised China for being “so vibrant and so dynamic,” in remarks widely quoted by state media and Foreign Ministry spokesperson Hua Chunying. 

The new Apple store took seven years and cost over 80 million yuan (roughly $11.1 million) to build. It is said to be the second largest in the world and the largest in Asia, and it is staffed by about 150 people. 

Thursday evening, at least 12 hours before the scheduled opening, a long line had formed in front of the store. Some media said the crowds were “as bustling as New Year’s Eve.” 

In addition to showing their loyalty to the brand by purchasing Apple products, the opening day crowds rushed to take photos with Cook, who was in the store at the event.

Dan Ives, a technology analyst on Wall Street, said on X, formerly Twitter, that Cook’s trip to China shows that Apple will continue to attach importance to the Chinese market.

“Apple is actually increasing its investments and retail footprint in China the past year,” he said, “and to this point Cook has been in China since last week on an important visit to lay the groundwork on Apple’s future in China. Cook reaffirming China strategy.” 

Chinese media reported on Monday that Apple will cooperate with Chinese technology company Baidu to provide artificial intelligence capabilities to the iPhones sold in China this year. Baidu has not verified the report. 

However, not all Chinese love Apple. A viral video clip on Chinese social media shows a middle-aged Chinese woman in yellow clothes, a baseball cap and a mask yelling at the people who queued up at the new Apple store the night before its opening, “You worship and favor foreign things.”  

She also said Apple’s business expansion in China is “because of scum like you who are willing to pay for it.” 

A person in the line said, “Do you know how many jobs Apple brings to China every year?”  

The woman replied, “No need, we have our own Huawei!” 

The drama reflects the challenges Apple is facing in China. IPhone shipments in China fell about 33% in February from a year earlier, according to official data, marking a second consecutive month of lower shipments. 

In January, the company shipped a total of roughly 5.5 million units, or about 39% fewer handsets than in the prior year, according to China Academy of Information and Communications Technology figures. 

Frank Lee, a senior partner of Blue Ocean Capital in Beijing, said that most Chinese iPhone users have a good experience with Apple products, so they remain loyal to the brand. However, there is a clear trend of declining sales of Apple products due to competition with Chinese domestic brands. 

Lee told VOA, “I think Apple’s opening of a store in Shanghai will play a certain role in [boosting] its sales in China, but it cannot fundamentally reverse the overall slow decline trend of iPhones in China.” 

However, Cook expressed his confidence in the Chinese market. He told the Chinese media, “I love the people and the culture [of China]. Every time I come here, I’m reminded that anything is possible here.” 

Cook’s remarks have been criticized as glorifying the Chinese government’s arrogant treatment of private enterprises. 

Jonathan Eyal, associate director of the Royal United Services Institute for Defense and Security Studies in the U.K., wrote on X, “‘Everything is possible’ in China, says Apple’s Tim Cook. Including being arrested and expropriated. And losing the market at a stroke of a bureaucratic pen.” 

Theresa Fallon, director at the Centre for Russia Europe Asia Studies, wrote, “Apple chief Tim Cook’s obsequious praise for China … unlikely to reverse the tide and CCP mandates that government officials can’t use Apple phones.”  

Bloomberg reported last year that a growing number of Chinese government agencies and state-owned enterprises were ordering employees not to bring iPhones and other foreign-brand phones to the workplace. China’s Foreign Ministry did not confirm the report. 

Some observers believe Cook’s remarks were not sincere. In recent years, Apple has expanded its production in India. Last year, iPhones made in India appeared for the first time in the first batch of iPhone 15 models released globally. 

However, others say China is irreplaceable to the global supply chain. They noted that Apple has faced challenges in efficiency since its supplier Foxconn moved production lines to India in the past couple of years. 

Noah Smith, an American current affairs columnist, wrote, “LOLLLLLLL meanwhile he’s shifting production out of China as fast as he can.” 

Some critics of Cook are more serious. Sophie Richardson, former China director at Human Rights Watch, said, “.@tim_cook, about those “vibrant” and “dynamic” #crimesagainsthumanity committed by your #China govt hosts…?”  

Eli Friedman, associate professor of global labor and work at Cornell University, said the past mutually beneficial relationship between Beijing and American companies is no longer playing a diplomatic role. 

He wrote, “Throwing Apple some treats will not help stabilize the U.S.-China relationship, I promise.” 

Adrianna Zhang and Joyce Huang contributed to this report.  
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Battery Swap Technologies May Advance E-Vehicle Adoption in Africa

Electric vehicles can lower pollution and save drivers money, but in Africa, uneven access to electricity is a significant barrier to their success. In Ghana, battery-swap technologies are offering a solution. Senanu Tord reports from Accra.
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Robots Writing Letters for Humans  

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US Judge Dismisses Lawsuit by Musk’s X Against Hate Speech Researchers

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Florida’s Governor Signs One of Country’s Most Restrictive Social Media Bans for Minors

TALLAHASSEE, Florida — Florida will have one of the country’s most restrictive social media bans for minors — if it withstands expected legal challenges — under a bill signed by Republican Florida Governor Ron DeSantis on Monday. 

The bill will ban social media accounts for children under 14 and require parental permission for 15- and 16-year-olds. It was slightly watered down from a proposal DeSantis vetoed earlier this month, a week before the annual legislative session ended.

The new law was Republican Speaker Paul Renner’s top legislative priority. It takes effect January 1. 

“A child in their brain development doesn’t have the ability to know that they’re being sucked into these addictive technologies and to see the harm and step away from it, and because of that we have to step in for them,” Renner said at the bill-signing ceremony held at a Jacksonville school. 

The bill DeSantis vetoed would have banned minors under 16 from popular social media platforms regardless of parental consent. But before the veto, he worked out compromise language with Renner to alleviate the governor’s concerns and the Legislature sent DeSantis a second bill. 

Several states have considered similar legislation. In Arkansas, a federal judge blocked enforcement of a law in August that required parental consent for minors to create new social media accounts. 

Supporters in Florida hope the bill will withstand legal challenges because it would ban social media formats based on addictive features such as notification alerts and auto-play videos, rather than on their content. 

Renner said he expects social media companies to “sue the second after this is signed. But you know what? We’re going to beat them. We’re going to beat them and we’re never, ever going to stop.” 

DeSantis also acknowledged the law will be challenged on First Amendment issues and bemoaned the fact the “Stop Woke Act” he signed into law two years ago was recently struck down by an appeals court with a majority of Republican-appointed judges. They ruled it violated free speech rights by banning private business from including discussions about racial inequality in employee training. 

“Any time I see a bill, if I don’t think it’s constitutional, I veto it,” said DeSantis, a lawyer, expressing confidence that the social media ban will be upheld. “We not only satisfied me, but we also satisfied, I think, a fair application of the law and Constitution.” 

The bill overwhelmingly passed both chambers, with some Democrats joining a majority of Republicans who supported the measure. Opponents argued it was unconstitutional and that the government shouldn’t interfere with decisions parents make with their children. 

“This bill goes too far in taking away parents’ rights,” Democratic Rep. Anna Eskamani said in a news release. “Instead of banning social media access, it would be better to ensure improved parental oversight tools, improved access to data to stop bad actors, alongside major investments in Florida’s mental health systems and programs.”
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EU Probes Apple, Google, Meta Under New Digital Law

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TikTok Bill Faces Uncertain Fate in Senate

WASHINGTON — The young voices in the messages left for North Carolina Senator Thom Tillis were laughing, but the words were ominous.

“OK, listen, if you ban TikTok I will find you and shoot you,” one said, giggling and talking over other young voices in the background. “I’ll shoot you and find you and cut you into pieces.” Another threatened to kill Tillis, and then take their own life.

Tillis’s office says it has received around 1,000 calls about TikTok since the House passed legislation this month that would ban the popular app if its China-based owner doesn’t sell its stake. TikTok has been urging its users — many of whom are young — to call their representatives, even providing an easy link to the phone numbers. “The government will take away the community that you and millions of other Americans love,” read one pop-up message from the company when users opened the app.

Tillis, who supports the House bill, reported the call to the police. “What I hated about that was it demonstrates the enormous influence social media platforms have on young people,” he said in an interview.

While more aggressive than most, TikTok’s extensive lobbying campaign is the latest attempt by the tech industry to head off any new legislation — and it’s a fight the industry usually wins. For years Congress has failed to act on bills that would protect users’ privacy, protect children from online threats, make companies more liable for their content and put loose guardrails around artificial intelligence, among other things.

“I mean, it’s almost embarrassing,” says Senate Intelligence Committee Chairman Mark Warner, D-Va., a former tech executive who is also supporting the TikTok bill and has long tried to push his colleagues to regulate the industry. “I would hate for us to maintain our perfect zero batting average on tech legislation.”

Some see the TikTok bill as the best chance for now to regulate the tech industry and set a precedent, if a narrow one focused on just one company. President Joe Biden has said he would sign the House bill, which overwhelmingly passed 362-65 this month after a rare 50-0 committee vote moving it to the floor.

But it’s already running into roadblocks in the Senate, where there is little unanimity on the best approach to ensure that China doesn’t access private data from the app’s 170 million U.S. users or influence them through its algorithms.

Other factors are holding the Senate back. The tech industry is broad and falls under the jurisdiction of several different committees. Plus, the issues at play don’t fall cleanly on partisan lines, making it harder for lawmakers to agree on priorities and how legislation should be written. Senate Commerce Committee Chairwoman Maria Cantwell, D-Wash., has so far been reluctant to embrace the TikTok bill, for example, calling for hearings first and suggesting that the Senate may want to rewrite it.

“We’re going through a process,” Cantwell said. “It’s important to get it right.”

Warner, on the other hand, says the House bill is the best chance to get something done after years of inaction. And he says that the threatening calls from young people are a good example of why the legislation is needed: “It makes the point, do we really want that kind of messaging being able to be manipulated by the Communist Party of China?”

Some lawmakers are worried that blocking TikTok could anger millions of young people who use the app, a crucial segment of voters in November’s election. But Warner says “the debate has shifted” from talk of an outright ban a year ago to the House bill which would force TikTok, a wholly owned subsidiary of Chinese technology firm ByteDance Ltd., to sell its stake for the app to continue operating.

Vice President Kamala Harris, in a television interview that aired Sunday, acknowledged the popularity of the app and that it has become an income stream for many people. She said the administration does not intend to ban TikTok but instead deal with its ownership. “We understand its purpose and its utility and the enjoyment that it gives a lot of folks,” Harris told ABC’s ”This Week.”

Republicans are divided. While most of them support the TikTok legislation, others are wary of overregulation and the government targeting one specific entity.

“The passage of the House TikTok ban is not just a misguided overreach; it’s a draconian measure that stifles free expression, tramples constitutional rights, and disrupts the economic pursuits of millions of Americans,” Kentucky Sen. Rand Paul posted on X, formerly Twitter.

Hoping to persuade their colleagues to support the bill, Democratic Sen. Richard Blumenthal of Connecticut and Republican Sen. Marsha Blackburn of Tennessee have called for intelligence agencies to declassify information about TikTok and China’s ownership that has been provided to senators in classified briefings.

“It is critically important that the American people, especially TikTok users, understand the national security issues at stake,” the senators said in a joint statement.

Blumenthal and Blackburn have separate legislation they have been working on for several years aimed at protecting children’s online safety, but the Senate has yet to vote on it. Efforts to regulate online privacy have also stalled, as has legislation to make technology companies more liable for the content they publish.

And an effort by Senate Majority Leader Chuck Schumer, D-N.Y., to quickly move legislation that would regulate the burgeoning artificial intelligence industry has yet to show any results.

Schumer has said very little about the TikTok bill or whether he might put it on the Senate floor.

“The Senate will review the legislation when it comes over from the House,” was all he would say after the House passed the bill.

South Dakota Sen. Mike Rounds, a Republican who has worked with Schumer on the artificial intelligence effort, says he thinks the Senate can eventually pass a TikTok bill, even if it’s a different version. He says the classified briefings “convinced the vast majority of members” that they have to address the collection of data from the app and TikTok’s ability to push out misinformation to users.

“I think it’s a clear danger to our country if we don’t act,” he said. “It does not have to be done in two weeks, but it does have to be done.”

Rounds says he and Schumer are still holding regular meetings on artificial intelligence, as well, and will soon release some of their ideas publicly. He says he’s optimistic that the Senate will eventually act to regulate the tech industry.

“There will be some areas that we will not try to get into, but there are some areas that we have very broad consensus on,” Rounds says.

Tillis says senators may have to continue laying the groundwork for a while and educating colleagues on why some regulation is needed, with an eye toward passing legislation in the next Congress.

“It can’t be the wild, wild west,” Tillis said.
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