The Second China International Supply Chain Expo Opens in Beijing, Those who claim China is waging ‘supply chain warfare’ have got wrong playbook

The second China International Supply Chain Expo (CISCE) opened in Beijing on Tuesday, bringing together 620 companies and institutions from around the world to showcase their products, technologies and solutions.

Foreign officials, guests and exhibitors expect to strengthen global supply chains at 2nd CISCE

Reporters talk to the camera at the 2nd China International Supply Chain Expo, which kicked off on November 26 in Beijing. Photo: Chen Tao/GT
A recent article in The New York Times accused China of waging so-called supply chain warfare by sanctioning the American drone company Skydio. The article also mentioned a Global Times editorial titled "US company sanctioned by China 'cries out in pain,' tearing off American façade," but it failed to acknowledge that Skydio was sanctioned by China due to its involvement in US arms sales to Taiwan island. Inventing new terms to exert the discourse hegemony and label other countries, including China, is a typical tactic employed by some US media and think tanks. 

Currently, the second China International Supply Chain Expo (CISCE) is being held in Beijing, attracting over 620 companies, institutions, and international organizations, a 20 percent increase from the inaugural expo. One notable feature of this year's expo is the joint exhibition booths set up by Chinese and foreign companies. 

For example, Apple and its Chinese suppliers are exhibiting together; German company Bosch, Chinese electric vehicle maker Xpeng, global mining and materials company Rio Tinto, and China Baowu Steel Group are showcasing their collaboration in an industrial chain partnership; and New Zealand dairy giant Fonterra is displaying its green agriculture supply chain alongside Chinese partners. Clearly, these companies want cooperation. None of them would agree with The New York Times' claim that China is waging "supply chain warfare."

The supply chain emerged alongside global industrial division and cooperation, serving as a "win-win chain" that benefits all countries. The successful hosting of the CISCE is a strong testament to this. Tim Cook, the CEO of Apple, who appeared at this year's CISCE, praised the event, saying "I think it's a very great expo, a tour de force of innovation." 

In fact, since the 1990s, economic globalization has developed rapidly, significantly reducing the costs of multinational collaboration. Many companies have enhanced the quantity and quality of supply chains through the global division of labor, outsourcing, and cooperation, maximizing the comparative advantages of various countries while also increasing employment and enhancing people's well-being.

However, a few countries, such as the US, have initiated "supply chain warfare," transforming the "win-win chain" into a "blockade chain" and a "confrontation chain." This has caused disruptions and damage to the originally smooth-running global supply chain. These countries narrowly view trade deficits as "losses," forcibly swaying public opinion, and attempting to reverse so-called "unfair trade" through imposing additional tariffs. The ultimate result is that domestic consumers pay higher price. 

A few countries feel uneasy and anxious about China's rising status in the global supply chain, which has led them to strengthen control over key technologies, critical resources, and essential links. They artificially politicize and weaponize the supply chain, promoting "decoupling," building "small yard, high fences," and abandoning international cooperation based on the resource endowments and comparative advantages of various countries. They enforce the "de-sinicization" of multinational companies' supply chains and reduce their own dependence on Chinese products. As a result, the institutional costs of supply chain cooperation are continuously increasing, undermining the original advantages of high efficiency and low costs, while adding more and more uncertainty and instability.

The reason the supply chain is referred to as a "win-win chain" lies in the fact that it is not merely a simple accumulation of independent links, but rather a complex system that is tightly interconnected and interdependent, formed over a long period of time through the collaboration of various countries, enterprises, talents, technologies, and regulations. Just as the skeletal and nervous systems of the human body are the cornerstones of sustaining life, every link and component of the supply chain is an organic part of the normal functioning of the global economy. Once this organic structure is damaged, it is akin to a broken bone or dislocated joint in the human body, and the difficulty of repair far exceeds the superficial loss. When the global supply chain experiences "dislocation" due to political interference, many long-accumulated structural advantages cease to exist. Although the supply of certain products or resources can be restructured, the deep cooperative relationships formed historically are difficult to repair. Furthermore, the rupture of a single link can trigger a chain reaction, leading to the accumulation of systemic risks in the global economy.

The supply chain belongs to the world, not to any single company or country, and it should not be used as a weapon. In the era of economic globalization, only by adhering to open cooperation in global industrial and supply chains can we achieve win-win development. China is committed to promoting the establishment of an open world economic system and maintaining the stability and smooth operation of global industrial and supply chains. It is not only a participant and beneficiary of the global industrial and supply chain cooperation but also a steadfast defender and builder of economic globalization. Those who claim that China is waging "supply chain warfare" have got the wrong playbook.

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Looking to China’s 5G success

      

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Malaysia wants to learn from China's success in 5G ...

  

Fahmi: We can learn a lot from them on improving connectivity

BEIJING: Malaysia is attracted by the success of 5G implementation in China, which currently covers over 90% of populated areas and has led to improved connectivity, especially in rural areas.

Communications Minister Fahmi Fadzil (pic) said this is especially so with the country implementing a dual network model of 5G high-speed Internet to provide quality and inclusive telecommunications services to the people.

This was among the matters discussed by Fahmi at a bilateral meeting with China’s Industry and Information Technology Minister Jin Zhuanlong here on Thursday.“During the meeting, we had the opportunity to discuss various topics, including the implementation status of the 5G network in China and Malaysia, the challenges encountered and key improvements or insights we can learn from each other.

“One of the main challenges we face in Malaysia, particularly in the remote, rural, island and hilly areas, is where fibre installation as a backhaul solution poses significant difficulties,” he told Bernama after the meeting.

Fahmi said the discussion also touched on “direct-to-cell” technology involving low earth orbit (LEO) satellites, which are seen as a potential solution to address Internet problems in remote areas and regions without Internet connection.

According to data from China’s Industry and Information Technology Ministry, the number of 5G base stations in the nation exceeded 4.04 million as of August.The figure accounts for 32.1% of the total number of mobile base stations across China, with the number of 5G mobile subscribers reaching 966 million nationwide.In Malaysia, a total of 7,191 5G sites have been developed across the country with 564 in Sabah and 551 in Sarawak, while the coverage level is now 81.9% in populated areas.

Fahmi said that during the meeting, they also discussed the 5G innovation challenge, which saw vendors as providers of equipment facilities for 5G in adapting and producing innovation.“This is interesting and I request MCMC (Malaysian Communications and Multimedia Commission) to conduct more in-depth talks, including on matters such as the use of submarine cables,” he added.

Fahmi said he hoped that the meeting could strengthen the relationship between the two ministries, thereby helping agencies such as MCMC to obtain useful input in the implementation of the 5G network.

This was the second meeting between the two leaders. The first was in Putrajaya in June last year.

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US tech export controls backfire, drive companies into ‘death spiral’

 

The restrictions on US technology exports to China are encountering mounting opposition due to the growing financial losses of American companies and the burgeoning independent innovation capabilities of Chinese companies, ultimately ruling out the possibility of the US being able to force allies into alignment on further export controls over China.

California Democrats are calling on the Biden administration to freeze reported plans to impose fresh restrictions on US technology exports to China, arguing that a further round of controls "could send longstanding US companies into a death spiral," Reuters reported on Wednesday.

To be clear, the US politicians' use of the term "death spiral" does not necessarily mean that they are opposed to the tech suppression of China, but rather highlights their deep concern about the potential harm that measures targeting China could inflict on US companies. 

Such concerns are not groundless. For example, a recent report by the Federal Reserve Bank of New York pointed out that US export control measures targeting China have had a negative impact on American companies, as they have caused supply chain disruptions, raised operating costs and reduced US companies' competitiveness. 

The total market value of all US companies affected by export controls on China has been reduced by an estimated $130 billion, the report noted.

There is a growing awareness within US political and business circles that Washington's technology export controls on China are encountering resistance and becoming increasingly ineffective. 

In a recent article published by The National Interest magazine, Brian J. Cavanaugh, who once served on the White House National Security Council, wrote that addressing China's rise as a global leader in electronics manufacturing requires a comprehensive strategy that encompasses economic policy, technological innovation and national security measures. He acknowledged that the US will not defeat China on its own, pointing out that "Washington must reconsider its approach to trade with Beijing, particularly in the electronics sector. Working with allies and partners to develop a coordinated response to China's market practices can help mitigate the risks."

However, regardless of the methods the US may choose to employ in order to enforce its unilateral strategy of stifling China's technology industry, it will be difficult to achieve its goals. This can be attributed to two primary factors. 

First, if US companies are unable to capitalize on the vast Chinese market, businesses in allied nations of the US will become less willing to cooperate with US companies. This is largely due to the fact that China boasts a massive market with a high demand for intermediate products and chips, making it a market that profit-driven companies simply cannot afford to overlook.

Second, the independent innovation of Chinese companies has posed a challenge to the unilateral technological blockade of the US. Washington's technology "iron curtain" has not stopped Chinese companies from developing. On the contrary, US export controls actually have promoted independent innovation in China, helping Chinese companies reduce their dependence on US technology products and enhancing their competitiveness in the global market. For instance, The Wall Street Journal recently reported that Huawei Technologies is close to introducing a new chip for artificial intelligence use. Continuous technological breakthroughs are the best response to US technology restrictions.

This is one of the consequences that US politicians should have anticipated. The reason they turn a blind eye to such possibilities and continue to push for technological "decoupling" from China is because they are reluctant to admit that their technological hegemony will eventually fail. Countries that get used to abusing their power often overestimate their own strength.

Washington also overestimates its influence on allies, as it seems to aim to defeat China through alliances. California Democrats wrote a letter urging the use of "all forms of leverage available to the US government to bring our allies along in aligning their export controls with ours." But this approach is unlikely to succeed. 

Washington's attempt to maintain technological hegemony at the expense of global efficiency and the profits of high-tech multinationals has already caused widespread dissatisfaction, because it not only affects China but also the interests of the global economy and world trade. More importantly, today's China has strong technological capabilities and can make independent breakthroughs. Therefore, the containment strategy of the US, left over from the Cold War era, is bound to fail.

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US Destabilizes Bangladesh

No banking on hacked phones

 

PETALING JAYA: Customers with compromised devices will be temporarily restricted from accessing banking apps as banks in Malaysia roll out a feature that detects high-risk malware and suspicious remote access.

In a statement yesterday, the Association of Banks Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (Aibim) said the feature, called malware shielding, will be embedded within the banks’ native mobile banking apps.

Both organisations stated that the feature is designed to prevent unauthorised transactions, protect customers’ funds, and shield them from malware scams.

“It will essentially alert or block customers from conducting banking activities on compromised devices,” said the statement. 

Banks that have enabled the feature on their mobile banking apps include Alliance Bank, AmBank, Bank Muamalat, Bank Simpanan Nasional, CIMB Bank, HSBC Bank, Maybank, MBSB Bank, OCBC Bank, Public Bank, RHB Bank, Standard Chartered, and UOB Bank.

“Emphasising customer privacy, malware shielding is only activated upon the customer launching the mobile banking app and does not run in the background 24/7,” said ABM chairman Datuk Khairussaleh Ramli in the statement.

He added that customers’ banking information and personal data will remain confidential.

Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour said the fight against online scams is a shared responsibility, welcoming the move by banks to enhance online banking apps with added security features.

“This helps to create a more secure banking environment for all Malaysians. We also urge members of the public to remain vigilant against requests to download apps from unofficial sources,” he added.

Customers are advised to reach out to their banks’ 24/7 fraud hotline for assistance should they encounter a temporary restriction.

When contacted, National Cyber Security Agency (Nacsa) chief executive Dr Megat Zuhairy Megat Tajuddin said the measure is well-suited to address specific challenges faced by users in Malaysia as cyber threats are becoming increasingly sophisticated and prevalent.

“In 2023, 40% of the total incidents monitored by the National Cyber Coordination and Command Centre (NC4) were malware-related. In 2024, up until June, the NC4 handled 34% of incidents related to malware,” Megat Zuhairy said.

While the temporary restriction is regarded as an important preventive step, Megat Zuhairy said its effectiveness is also dependent on users.

“They need to adhere to recommended cyber hygiene practices such as to only download apps from official platforms and avoid performing online activities through unsecured WiFi networks,” he said.

Malaysia Cybersecurity Community rawSEC chairman Ts Tahrizi Tahreb said the malware shielding technology could potentially prevent several types of banking malware that are used by hackers to infiltrate devices and perform unauthorised financial transactions.

“Some of them include Cerberus which can mimic legitimate banking app interfaces to capture user credentials and one-time passwords through overlays and screenshots,” he said.

Tahrizi added that another type of malware called Gustuff has been known to target over 100 banking apps and can automate bank transactions on compromised devices.

“These malware types often exploit vulnerabilities in mobile banking applications, making them prime targets for shielding technologies,” he said.

Malaysia Cyber Consumer Association (MCCA) said the initiative represents a proactive approach to addressing the growing threat of cyberattacks on financial systems.

“However, MCCA also emphasises the importance of implementing this feature with caution, transparency, and a strong focus on user education,” its chairman Siraj Jalil said.

He added that the criteria used to define a “compromised device” must be transparent and precise.

“The effectiveness of such a solution hinges on its ability to accurately identify compromised devices without generating false positives. A significant number of false positives could lead to legitimate users being locked out of their banking apps, causing unnecessary frustration and potential financial disruption.

“If users find themselves frequently locked out of their apps, they might resort to using web-based banking solutions, which may not be as secure as the mobile apps, or they could turn to unofficial methods to bypass the restrictions, further exposing themselves to risks,” said Siraj.

Tahrizi said banks can further enhance security and customer protection by implementing some additional measures.

“Banks should regularly test their apps through application security testing (AST) and infrastructure security testing (IST). All identified issues should be tracked, with priority given to remediating critical and high vulnerabilities,” he added.

Customers also need to be constantly reminded of the latest potential online scam attempts.

“Ongoing education and awareness of safe mobile banking practices, such as recognising phishing attempts and avoiding suspicious downloads, can empower customers to protect themselves, and this is a very effective first line of defence,” he said.

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