Gordon Chang: China's Threats, Hong Kong Crackdown, and US Tech Sales

China's Escalating Tensions and Global Strategy

• ⚠️ Beijing is intensifying its rhetoric, particularly towards Japan, warning of a "painful price" if territorial lines are crossed, especially concerning Taiwan.
• 🇫🇷 France, through President Macron's upcoming visit and an official statement, has reiterated support for the "one China policy," aligning with Beijing's stance on Taiwan's status.
• 🌏 China appears to be seeking allies and international support, possibly due to being "humbled" by countries that resist its "bluster."

Hong Kong Unrest and Government Response

• 💔 A devastating high-rise fire in Hong Kong, resulting in over 151 deaths and ongoing searches, has fueled public anger against both contractors and the government.
• ✊ Despite an official period of mourning, Beijing is cracking down on protests, yet the release of student activist Miles Quan, arrested under the national security law for demanding accountability, suggests a potential shift.
• 🗣️ China's propagandists are bizarrely blaming the US and Britain for the Hong Kong fire, which Chang dismisses as a sign of "desperation."

US Technology Sales to China

• 💻 Chinese tech companies, including Alibaba and ByteDance, are reportedly using Southeast Asian data centers to access advanced Nvidia chips, attempting to circumvent US restrictions.
• military development, including weapons designed to kill Americans.
• 🇺🇸 Chang argues that selling advanced chips to China is both "strategically wrong" and "morally wrong," urging President Trump to prevent further sales, especially of the Blackwell architecture chips.

China's Economic Contraction

• 📉 Despite a banner year for its stock market, driven by government intervention and foreign investment attracted by rising prices, China's underlying economy is showing clear signs of contraction.
• 📊 Recent data, including manufacturing and services PMIs and defense contractor earnings, indicate that China's economy is shrinking, not growing.