Siemens is relying on its digital platform, Xcelerator, to drive future growth, especially in its factory automation business, which has faced slowing demand in China and Europe. Despite lowering its full-year sales forecast, Siemens reported an 82% jump in industrial software sales for the three months ending in June, mainly due to Xcelerator’s offerings, according to Peter Koerte, the company’s chief technology and strategy officer.
Xcelerator, launched in 2022, is a cloud-based platform that delivers hardware and digital services to a global customer base, boasting over a million monthly users. Siemens’ divisions, including mobility, smart infrastructure, and digital industries, leverage its offerings to enhance its operations. The platform collaborates with 400 partner companies, providing more than 900 solutions worldwide. However, Siemens has not disclosed specific financial figures for Xcelerator.
Xcelerator has achieved significant success in key markets, including China, India, Germany, and the US. Its advanced capabilities have enabled Siemens to secure major contracts, such as an order for 90 regional trains from Deutsche Bahn in August. By analysing data from these trains, Xcelerator enhances maintenance practices, boosts energy efficiency, and improves punctuality, showcasing its effectiveness in integrating digital and physical services to address customer needs.
China is calling on the United States to lift sanctions on Chinese companies in semiconductors and intelligent connected vehicles, aiming to create a more stable business environment. In a recent conversation with US Secretary of Commerce Gina Raimondo, China’s Minister of Commerce, Wang Wentao, expressed serious concerns over US trade restrictions and emphasised the need to clarify national security policies.
He argued that clear guidelines would protect the stability of global supply chains, which are essential for electronics, automotive, and pharmaceutical industries. Analysts and business leaders emphasise that strong U.S.-China trade relations reduce production delays and disruptions. Despite upcoming election challenges, experts believe cooperation is likely. US companies may advocate for balanced trade policies due to their reliance on China, underscoring the need for a stable and cooperative trade relationship.
Moreover, China’s growing appeal as an investment destination is underscored by its third-place ranking on the 2024 Kearney FDI Confidence Index. Consequently, businesses increasingly view China as a vital market and innovation hub, with companies like Dun & Bradstreet and Skechers expanding their operations in response to its strategic supply role and vast consumer base. In addition, business leaders advocate for deeper US-China trade relations, recognising collaboration’s competitive advantages.
Furthermore, recent trade data reveals that the US remains China’s third-largest trading partner, with a trade volume of 3.15 trillion yuan ($446.21 billion) in the first eight months of 2024. This robust trade relationship highlights the critical need for ongoing cooperation between the two economies, especially in an increasingly competitive global landscape.
Industry ministers from the G7 advanced democracies have agreed that non-market practices in the semiconductor industry pose an urgent challenge that requires collective action. This consensus was announced by the Italian presidency and is a response to growing concerns about China’s influence in the sector. During the G7 summit in June, leaders had previously pledged to address what they called unfair business practices by China, particularly as the country aggressively advances its semiconductor manufacturing capabilities.
The majority of global semiconductor production takes place in South Korea and Taiwan, with Taiwan’s closeness to mainland China heightening concerns about potential military conflicts that could disrupt global supply chains. Due to Taiwan’s leadership in advanced chip manufacturing, major economies such as the US and European nations have enacted legislation to enhance domestic semiconductor production. Initiatives like the US CHIPS Act and corresponding European measures have allocated substantial funding to incentivise companies to set up chip production facilities within their countries.
Alongside semiconductor issues, the newly established G7 task force will also focus on undersea cable connectivity, which has grown increasingly critical. Recent outages in major undersea cables have underscored the necessity for a stable and secure global internet infrastructure. This expansion of the G7’s agenda aims to address broader technological stability, moving beyond semiconductor concerns to encompass essential aspects of digital connectivity.
Chinese hackers reportedly accessed US broadband networks, compromising systems used for government-authorised wiretapping. The Wall Street Journal revealed that major telecom providers, including Verizon, AT&T, and Lumen Technologies, were affected by the breach.
Hackers are believed to have maintained access for months, enabling them to intercept internet traffic and sensitive communications data. US investigators, who labelled the hacking group ‘Salt Typhoon’, indicated that the breach was intelligence-focused.
China’s foreign ministry responded to the accusations, denying knowledge of the incident and condemning the US for what they called ‘a false narrative’. Beijing had previously denied involvement in similar cyber-espionage claims.
Lumen Technologies declined to comment, while Verizon and AT&T did not respond immediately. The breach follows the exposure of another Chinese hacking group earlier this year, as part of a broader campaign by US law enforcement.
Concerns are rising ahead of the US presidential election, with the latest intelligence suggesting interference from foreign nations like Russia, Iran, and China. The annual threat assessment released by the Department of Homeland Security highlights the use of AI by these countries to spread misinformation and create fake websites.
Russian actors have focused on amplifying divisive narratives, particularly around immigration. Iran has adopted a more aggressive approach, posing as activists online to encourage protests related to the conflict in Gaza. China is also seen as a potential player in efforts to undermine confidence in US democratic institutions.
The upcoming election, expected to be highly contested between Kamala Harris and Donald Trump, presents further opportunities for foreign interference. Tensions within the US could be exacerbated by these external efforts, along with potential threats from domestic extremists.
Domestic violent extremism also remains a serious concern. The report warns of the risk posed by lone actors or small cells driven by grievances related to race, religion, or anti-government views. These groups may attempt violent actions to instill fear or disrupt the electoral process.
Chinese companies have invested over $100 billion in overseas clean energy technology projects since 2023, aiming to bypass growing trade barriers, according to a report by Australian research group Climate Energy Finance (CEF). China, the world’s largest producer of solar panels, lithium batteries, and electric vehicles, has seen its exports face steep tariffs, particularly from the US and Canada. The European Union is also considering similar tariffs to protect domestic industries from an influx of cheaper Chinese-made products.
Chinese firms like electric vehicle giant BYD and battery maker CATL have responded by expanding production abroad, with BYD building a $1 billion plant in Turkey and CATL planning factories across Europe. These investments are largely driven by the need to avoid punitive tariffs, including a proposed 40% EU tariff on Chinese electric vehicles. Despite China’s dominance in clean energy, concerns have emerged that it could oversupply the global market, driving down prices and undercutting competitors.
The surge in Chinese investment comes as the country faces increasing pushback from Western nations, who argue that Chinese products are unfairly flooding their markets. Beijing, however, insists that such restrictions will slow global efforts to combat climate change, emphasising the importance of affordable clean energy solutions. With China expected to have surplus production capacity by 2030, these overseas investments will play a critical role in finding new markets.
China has announced new regulations on network data security management, representing a significant step forward in its efforts to govern data processing activities effectively. Scheduled to take effect on 1 January 2025, these regulations establish a comprehensive framework that ensures organisations comply with legal standards and adopt best practices in data handling.
The regulations aim to bolster compliance and accountability across various sectors by clearly defining expectations for network data processing and fostering a safer digital environment. Additionally, they refine mechanisms for managing sensitive data, ultimately enhancing overall governance in this vital area. A primary focus of these regulations is the protection of the rights of individuals and organisations, guaranteeing that personal information is handled with the utmost care.
Moreover, China has introduced explicit guidelines for cross-border data transfers, recognising the complexities of international data flows in today’s interconnected economy. These regulations specify the conditions under which personal information can be shared with overseas entities, striking a balance between data security and global business and cooperation facilitation.
Furthermore, they impose rigorous obligations on internet platform service providers and third-party entities, mandating adherence to stringent data protection standards. These regulations cultivate a culture of responsibility in data management practices by holding service providers accountable for their data protection efforts. Overall, this comprehensive regulatory framework addresses critical issues of individual rights, national security, and global data flow, significantly enhancing data security management in China.
Former Chinese finance minister Lou Jiwei has raised concerns about cryptocurrency’s potential to destabilise the global financial system during a speech at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing. Lou pointed out the risks associated with the volatility of crypto assets, particularly their role in money laundering and threats to anti-terrorism financing efforts. His comments come as cryptocurrencies continue to attract attention for their potential to impact financial stability.
Lou highlighted the US’s recent policy shift towards crypto, particularly the approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). He urged Chinese policymakers to take note of these global developments and adapt strategies accordingly, stressing that understanding international trends is key to China’s digital economic progress.
Despite China’s 2021 ban on Bitcoin mining and trading, Lou noted that the country still dominates the Bitcoin mining space, controlling over 55% of the global BTC network. However, this stronghold is starting to wane, with US-based mining pools now managing about 40% of global Bitcoin mining operations.
China and Africa cooperate to enhance digital infrastructure, which has emerged as a cornerstone of their evolving economic partnership. Over the past decade, substantial investments from Chinese enterprises have facilitated the construction of essential digital frameworks across Africa.
That includes initiatives such as laying extensive fibre optic cables, establishing robust 5G networks and creating data centres that ensure high-speed connectivity. As a direct consequence of this collaboration, millions of people are now connected, and local economies are being transformed through expanded e-commerce opportunities. Notably, the surge in digital trade has opened new avenues for economic growth in African nations, attracting vital investments and fostering entrepreneurship.
Moreover, Chinese companies have played a crucial role in this transformative process by offering technical support, financial backing, and infrastructure development. Consequently, these efforts have contributed to a vibrant marketplace where an increasing number of online shoppers can access a diverse range of goods and services. Additionally, efforts to promote sustainable development are evident in the improvements to service trade and the establishment of resilient financial infrastructures. By leveraging advancements in digital technology, the partnership optimises sectors such as transport and tourism, enhancing operational efficiency and user experiences.
Why does this matter?
Furthermore, as financial technology (fintech) rapidly evolves, there is a focus on bolstering the stability of financial systems in African countries. By harnessing technologies like blockchain, IoT, and AI, Chinese financial institutions collaborate with local partners to create innovative service models, addressing financial risks and fostering an investment-friendly environment. Through initiatives like the Belt and Road Initiative, both regions are committed to advancing digital transformation while ensuring economic growth aligns with sustainable practices that benefit future generations.
Semiconductor manufacturers are set to pour a record $400 billion into chip-making equipment from 2025 to 2027, as the global industry association SEMI estimates. This surge is being driven by China, South Korea, and Taiwan, who are ramping up their production capacity in response to US-China trade tensions and soaring demand for AI and memory chips. Investment is expected to jump by 24%, reaching $123 billion in 2025 alone.
China is projected to lead the investment race, committing over $100 billion in the next three years as it strives for self-sufficiency in semiconductor production. South Korea, home to major memory chip producers Samsung and SK Hynix, is expected to spend $81 billion, while Taiwan, led by chipmaking giant TSMC, plans to invest $75 billion. Other regions, including the Americas, Japan, and Europe, are also ramping up investments, driven by government policies aimed at securing semiconductor supply chains.
Leading chip-making equipment suppliers, such as ASML, Applied Materials, KLA Corp, Lam Research, and Tokyo Electron, are set to benefit significantly from this investment boom. By 2027, spending on semiconductor equipment in the US, Japan, and Europe is expected to more than double from 2024 levels as countries push to stabilise semiconductor supply chains for emerging technologies.
