US Hearing on China IT Products
A hearing on “Current and Emerging Technologies in US-China Economic and National Security Competition” was held by the US-China Economic and Security Review Commission on February 1. The hearing discussed the risks of Chinese information technology (IT) products in the United States.
Jack Corrigan, a senior research analyst at the Center for Security and Emerging Technology at Georgetown University, testified that there are few affordable alternatives to Chinese IT products. He also said removing all Chinese IT products from US networks would be prohibitively expensive.
Nazak Nikakhtar, who served in the US Commerce Department during the Trump administration, argued that the US is “dragging its feet” on banning Chinese hardware and software. She said that the only way to mitigate the economic costs is to mandate that entire industries cannot use Chinese components.
In recent years, the US has taken a number of steps to restrict the use of Chinese IT products. In 2019, the US government ordered the removal of Chinese-made equipment from US telecommunications and security networks. The US has also banned Huawei and ZTE from selling their products in the US.
The US government has justified these actions on national security grounds. However, critics have accused the US of using national security as a pretext to suppress Chinese companies. Two days ago, during a hearing, TikTok CEO Shou Zi Chew was asked by US senators if he had ever been a member of the Chinese Communist Party despite being a Singaporean citizen.
A-Share Stocks Extend Losses Amid Ongoing Gloom
On February 2, China’s A-share market experienced significant declines across its major indexes, with the Shanghai Composite Index falling below the 2700-point threshold by over 2.5%. The Shenzhen Component Index and the ChiNext Index also saw drops exceeding 3%, affecting more than 5,100 stocks across the market. Sectors such as agricultural services, HJT batteries, and computer equipment experienced sharp declines of over 5%. This downturn follows a challenge in the last trading day, January, which also saw substantial losses.
Despite regulatory efforts to stimulate the market, including halting the sale of restricted shares, the capital market remains near historic lows.
The Highest-level Alert for Freezing Weather Sounded since 2010
According to CCTV, at 10:00 on February 1st, the China Meteorological Administration issued the first orange alert for freezing since the establishment of the warning system in 2010.
The issuance of freezing alerts is not common. Data shows that the China Meteorological Administration first issued a yellow alert for freezing in February 2013 when severe freezing rain hit Guizhou, Hunan, Jiangxi, and other areas. This time the alert indicates that from February 1st to 4th, persistent freezing rain will hit southeastern Chongqing and some provinces including areas in southern Henan, Hubei, central and northern Anhui, northern Jiangsu, central and northern Hunan, and eastern Guizhou. Currently, a total of 11 provinces have initiated emergency responses.
Freezing rain has a significant impact on transportation, power facilities, and public travel, especially on communication and power transmission lines. This comes at a time when the Spring Festival travel rush is happening, with a surge in people returning home or traveling, posing significant challenges to the government’s disaster prevention and control efforts.