The CHN/ China thread

[Jimbuna]

Russian gas supplies to China hit new daily record - Bloomberg

Russian pipeline gas exports to China have reached a new daily record, even surpassing Russia’s maximum contractual obligations, according to Bloomberg.

Gazprom announced that daily flows through the “Power of Siberia” pipeline exceeded Russia’s maximum contractual commitments, though exact figures were not disclosed.

The outlet noted that starting December 1, Gazprom increased supplies to the equivalent of 38 billion cubic meters per year, matching the design capacity of the Power of Siberia pipeline.

Given this, Bloomberg speculates that China may become Russia’s largest market for pipeline gas this year, as Gazprom grows increasingly dependent on China as a buyer after most of its European customers rejected Russian supplies following the invasion of Ukraine.

Breaking ties with Gazprom

At the end of last month, Austria ended a five-decade-long relationship with Gazprom, prompted by the seizure of Russian gas.

The Austrian company OMV won an arbitration case in Germany against Gazprom for 230 million euros over irregular supplies to its German subsidiary. OMV also announced it would take steps for immediate enforcement of this claim against Gazprom’s invoices.

Later, Bloomberg observed that OMV’s decision to halt payments to Gazprom could set a precedent for other countries, as they also aim to reduce their dependence on the Russian gas monopoly.

[Jimbuna]

China eyes negotiations as Trump threatens new tariffs

BEIJING, Dec 13 (Reuters) - As Donald Trump steps up his tariff threats against China, Beijing is moving to beat the next U.S. president to the punch with its own restrictions and get Washington to the negotiating table ahead of a full-blown trade war, analysts say.
Armed with the lessons of the last trade war during Trump's first term, China is seeking to amass bargaining chips to kick off talks with a new U.S. administration on contentious aspects of bilateral ties, including trade and investment, and science and technology. It is also concerned about the harmful effects of additional tariffs on its already fragile economy.

This week, China launched a probe into U.S. chip giant Nvidia (NVDA.O), opens new tab over what it claimed were suspected antitrust violations, which follows its ban on U.S.-bound exports of rare minerals.
"We have to look at this as the opening bid in what will likely ultimately turn into a negotiation with the U.S. rather than just an imposition of tariffs and everyone walks away," HSBC's Chief Asia Economist Fred Neumann said.
https://www.reuters.com/world/china/...fs-2024-12-13/

[Jimbuna]

[Jimbuna]

China Develops Own ‘Loyal Wingman’ to Rival US

In a move seen to rival the “loyal wingman” concept of the US, China has unveiled a new unmanned aerial system (UAS) designed to operate in tandem with its advanced fighter jets.

Showcased at the recent Zhuhai air show in southern China, the Feihong FH-97A is capable of leading swarms of smaller drones or acting as a companion wingman for Beijing’s stealth fighters, such as the J-20.

It can reportedly support “confrontational, high-intensity, and long-lasting” combat, thanks to its enhanced weapons bay for both air-to-air and air-to-ground munitions.

“The FH-97A drone meets the four [major] trends in the development of weapons: it is unmanned, miniaturized, intelligent, and stealthy,” Shanghai-based military analyst Ni Lexiong told Financial Times.

In addition to serving as a drone wingman for combat aircraft, the Feihong can be catapult-launched from aircraft carriers to support maritime operations.

Despite its promising capabilities, several defense analysts believe it will take at least five years before China deploys the FH-97A at scale.

“In the future, [the FH-97A] will be extremely important. The future of war will be competition between drone and anti-drone technology,” Ni stated.
https://thedefensepost.com/2024/12/1...al-wingman-us/

[Jimbuna]

Corruption may have disrupted Chinese military modernization goals, Pentagon report says

WASHINGTON, Dec 18 (Reuters) - Corruption in China's military may have disrupted its progress towards its 2027 military modernization goals, the Pentagon said in its annual report on Beijing's military that was released on Wednesday.
Since last year, China's military has undergone a sweeping anti-corruption purge and last month the defense ministry said a top-ranking military official had been suspended and was under investigation for "serious violations of discipline."
https://www.reuters.com/world/china/...on-2024-12-18/

[Jimbuna]

United Front: China's 'magic weapon' caught in a spy controversy

The People's Republic of China has a "magic weapon", according to its founding leader Mao Zedong and its current president Xi Jinping.

It is called the United Front Work Department - and it is raising as much alarm in the West as Beijing's growing military arsenal.

Yang Tengbo, a prominent businessman who has been linked to Prince Andrew, is the latest overseas Chinese citizen to be scrutinised - and sanctioned - for his links to the UFWD.

The existence of the department is far from a secret. A decades-old and well-documented arm of the Chinese Communist Party, it has been mired in controversy before. Investigators from the US to Australia have cited the UFWD in multiple espionage cases, often accusing Beijing of using it for foreign interference.

Beijing has denied all espionage allegations, calling them ludicrous.
https://www.bbc.co.uk/news/articles/c878evdp758o

[ET2SN]

Meanwhile, and this is just something I'm pondering..

- You need to dig into this subject, but there are reports that TSMC has put plans to "offshore" its Fabs on the back-burner. This gets complicated quickly, TSMC wants to keep its manufacture of top-end chips on home soil, which is logical except for those plans of an invasion from the mainland.


- AUKUS has gone fairly silent. Anyone seen any updates about Australia updating its shipyards or naval bases? Like, any news at all? Want ads for shipyard jobs? Navy recruitment goals? Anything?

-Is it possible that the PLA is backing off on those "reunification" goals? Are those reports of military corruption a sign of the PLA getting knocked down a peg or are they thinning out the commanders to get some fresh blood for 2027/2028?

I admit I'm being vague and more than a little cagey. I'd like to read what the rest of you think.