Canada’s signals intelligence agency has identified China’s hacking activities as the most significant state-sponsored cyber threat facing the country, according to a new threat assessment. The Communications Security Establishment (CSE) highlighted China’s advanced and aggressive cyber campaigns, describing them as highly sophisticated and primarily targeting political and commercial objectives, including espionage, intellectual property theft, and influence operations. This announcement comes amid strained relations between Ottawa and Beijing, fueled by past allegations of Chinese interference in Canada’s electoral process.
The CSE report also noted that Russia’s cyber operations are active in attempts to destabilise Canada and its allies, while Iran poses an additional cyber threat. These findings underscore the ongoing cyber challenges Canada faces from multiple state actors seeking influence and intelligence. The Chinese embassy in Ottawa has not yet commented on the CSE report, and Beijing has historically rejected similar accusations.
Canadian authorities have grown increasingly vocal about foreign interference, with Prime Minister Justin Trudeau previously accusing China of election meddling. Security experts warn that Canada will need to strengthen defenses as geopolitical tensions continue to heighten cyber risks.
China-linked hackers have reportedly breached telecommunications systems, targeting members of former President Donald Trump’s family and officials from the Biden administration, according to the New York Times. Individuals affected include Trump’s son Eric Trump, son-in-law Jared Kushner, and Senate Majority Leader Chuck Schumer.
Concerns surrounding this hacking group, known as “Salt Typhoon,” have intensified following media reports of their activities. Earlier this month, the Wall Street Journal reported that the group accessed broadband providers’ networks and gathered data from systems used by the federal government for court-authorised wiretapping.
No response was received from the State Department or Trump family representatives regarding Reuters’ requests for comments. The White House, National Security Agency, and Cybersecurity and Infrastructure Security Agency also did not reply immediately. Similarly, the Chinese Embassy in Washington did not respond, though Beijing usually denies involvement in cyberespionage activities.
In China, a new generation of young factory owners is reshaping the country’s manufacturing industry, turning to social media to connect directly with international buyers. Robyn Qiu, a Yale graduate and the daughter of factory owners, is part of this wave, using platforms like Instagram and TikTok to showcase her family’s metal hardware factory in eastern China. Through these videos, which often highlight China’s manufacturing hubs and daily life, Qiu has drawn significant interest from foreign buyers, securing over 500 business inquiries since May.
Second-generation owners like Qiu are tapping into digital marketing to address challenges facing China’s manufacturing sector, including rising labour costs and geopolitical pressures pushing clients to alternative production sites. Qiu’s approach contrasts sharply with her parents’ generation, who relied on middlemen and established buyers, and reflects a desire to elevate China’s standing within the global supply chain. Her strategy includes reducing dependency on middlemen by directly marketing high-tech products like laser levels, positioning her family’s factory as a brand rather than a supplier.
Qiu’s success echoes broader efforts by the “Changerdai” generation — young factory heirs who, unlike the more extravagant “Fuerdai,” focus on advancing their family businesses. Examples of Changerdai’s social media success abound, with viral content such as Qiu’s factory tours or short video dramas from towel makers drawing millions of followers. Guangzhou’s LC Sign factory, for instance, has gained a massive following with humorous videos featuring its LED signage.
By prioritising visibility and brand loyalty, these young entrepreneurs are ensuring their products stand out in a competitive market. In an era of manufacturing oversupply, standing out on social media has become crucial to maintain stable, profitable orders, with the Changerdai leading this new frontier in China‘s manufacturing sector.
China’s Ministry of State Security announced the discovery of foreign spying devices in its waters, including underwater ‘lighthouses’ that could potentially guide foreign submarines. The ministry revealed on its official WeChat account that it had retrieved several types of devices hidden on the ocean floor, gathering real-time data from within China’s claimed territorial waters.
This revelation comes amid rising tensions in the South China Sea, where China and the Philippines dispute territory, increasing the risk of a broader confrontation potentially involving the US. China’s recent military drills around Taiwan have also heightened concerns, as the US and Taiwan have condemned Beijing’s actions.
China claims nearly all of the South China Sea, overlapping areas claimed by other Southeast Asian nations, and has maintained it will not renounce using force over Taiwan. A new phase in the submarine arms race between China and the US and its allies is underway, with Beijing projected to field nuclear-armed submarines by the decade’s end. The ministry affirmed its commitment to defending China’s maritime sovereignty and addressing threats of foreign espionage in its waters.
The Biden administration announced on Monday new rules restricting US investments in specific technology sectors in China, including AI, semiconductors, and quantum computing, citing national security concerns. These rules, effective from 2 January, aim to prevent US capital and expertise from aiding China’s development of military and intelligence capabilities. Issued under an executive order from August 2023, the regulations will be managed by the Treasury’s new Office of Global Transactions.
The targeted technologies are considered crucial to future military and cyber defence. Treasury officials note that US investments often include more than money—managerial support, network access, and intellectual expertise—that could benefit Chinese advancements in sensitive sectors. A senior Treasury official, Paul Rosen, emphasised that these restrictions curb potential US involvement in developing cutting-edge technologies for adversarial nations.
The US Commerce Secretary Gina Raimondo has previously highlighted the importance of these measures, viewing them as essential to slowing China’s progress in military technologies. The new regulations allow for investments in publicly traded Chinese securities; however, existing rules still restrict transactions involving certain Chinese firms deemed to support military development.
Additionally, the rules respond to recent criticism from the House Select Committee on China, which has scrutinised American index providers for funnelling US investments into Chinese companies linked to military advancements. With these regulations, the administration underscores its intent to protect US interests by limiting China’s access to critical technology expertise and capital.
China has reaffirmed its support for Apple’s business operations in the country, welcoming further expansion by the US tech company. In a meeting with Apple CEO Tim Cook, Chinese Commerce Minister Wang Wentao stated that Apple is welcome to deepen its presence in the Chinese market, according to a statement from the ministry. This sentiment aligns with earlier discussions between Cook and China’s Minister for Industry and Information Technology in Beijing.
Wang highlighted China’s interest in stabilising Sino-US economic and trade relations, expressing a commitment to returning these ties to a healthier state through ongoing communication between the government and businesses. Such exchanges, he said, could foster a stronger, more stable trade partnership between the two countries.
China’s government also assured foreign companies, including Apple, of continued improvements to its business environment and high-quality services, signalling its openness to international investments. However, Wang emphasised that prioritising national security over trade cooperation could harm these efforts, subtly suggesting that an overemphasis on security concerns may disrupt normal economic interactions.
A new partnership has been formed between China’s International Research Center of Big Data for Sustainable Development Goals (CBAS) and Pakistan’s Space & Upper Atmosphere Research Commission (SUPARCO). The two countries aim to use space technology and big data to boost natural resource management and achieve regional Sustainable Development Goals (SDGs).
The collaboration will focus on joint research, making use of data from the Sustainable Development Science Satellite 1 (SDGSAT-1). Launched in 2021, the satellite plays a vital role in monitoring progress toward sustainable development by providing valuable data insights.
Professor Guo Huadong, Director-General of CBAS, highlighted the importance of technological innovation and advanced data analysis in tackling challenges related to the UN’s 2030 Agenda. The shared efforts in data collection and analysis are expected to improve regional decision-making on sustainable development.
At the event, representatives from CBAS also presented the ‘Atlas of SDGSAT-1 Satellite Nighttime Light Image’ to scholars from Pakistan, Ghana, Nigeria, Tanzania, Thailand, and Seychelles. It demonstrates the potential of satellite data to provide new perspectives on sustainability challenges.
China has launched a pilot program to expand foreign investment in its value-added telecom services sector, allowing foreign companies to wholly own businesses such as internet data centres and engage in online data and transaction processing. The initiative is being implemented in four key regions – Beijing’s national demonstration zone, Shanghai’s free trade zone, the Hainan Free Trade Port, and Shenzhen’s socialist modernisation pilot zone.
The program aims to align China’s telecom sector with high-standard international economic and trade rules, improve regulatory frameworks, and reduce market barriers for foreign investors. By opening up sectors like cloud computing and computing power services, China seeks to diversify market supply, boost innovation, and foster greater integration of digital technologies across industries.
In response to this initiative, companies like HSBC are preparing to participate, with HSBC Fintech Services applying for an internet content provider permit to enhance its digital services and business transformation. The Ministry of Industry and Information Technology (MIIT) has committed to monitoring the program’s effects, possibly expanding its scope based on its success. By improving the business environment and encouraging new business models, China is positioning itself as a more attractive destination for foreign investment in the telecommunications sector.
The outcome of the US presidential election will not change the course of the tech conflict with China. Both Republican Donald Trump and Vice President Kamala Harris are expected to intensify measures aimed at limiting China’s access to American technology and resources, although their strategies will differ.
Harris is likely to adopt a focused, multilateral approach, building on Biden’s tactics by working with allies to curb the flow of advanced technology to China. In contrast, Trump’s strategy could include sweeping measures, such as expanding tariffs and aggressively enforcing export controls, possibly escalating tensions with allies who resist the US lead.
Both candidates aim to curb China’s technological advancement and its military capabilities. Harris has pledged to ensure the US remains at the forefront of the global technology race, while Trump continues to advocate for higher tariffs and tough restrictions, including denying China access to essential components like AI chips.
China has already responded to recent US actions by imposing restrictions on exports of critical materials, such as graphite and rare earths. Experts warn that the US should exercise caution, as some industries remain reliant on Chinese resources. The tech war will likely see new fronts, including connected devices, as the conflict deepens under the next administration.
Apple CEO Tim Cook met with China’s Minister for Industry and Information Technology, Jin Zhuanglong, during his recent visit to Beijing. During the meeting, Jin expressed hopes that Apple would continue expanding its presence in China, increasing innovation investments, and collaborating with Chinese companies. Apple has not commented on the meeting.
This visit marks Cook’s second trip to China in 2023. While in Beijing, he visited local sites and engaged with Chinese artists, as seen in his posts on the social media platform Weibo. Cook’s trip comes at a time when Apple faces increased competition in the Chinese smartphone market, particularly from domestic rival Huawei.
Apple launched its latest iPhones in China on September 20, the same day Huawei released its competing model. While early iPhone sales saw a 20% increase compared to the previous year, overall sales declined by 2% due to decreased interest in older models and the growing popularity of Huawei’s Mate and Pura series.
