Radar
Risk
US, China to extend trade war truce by 2 months
Trump and Xi are scheduled to have two more meetings this year at the Asia-Pacific Economic Cooperation forum in Shenzhen in November and at the G20 in Miami in December.
Then there will be less than two years of Trump’s second term left to survive.
Xi seems to believe that time is on his side. I’m not so sure, but I don’t think it’s on Trump’s.
Risk
Taiwan
No mention of Taiwan in either the US or Chinese statements released after the summit.
Good or bad? I don’t know. I do think that China’s leaders think time is also on their side here.
Power
China’s electronic information manufacturing industry development plan
China’s Ministry of Industry and Information Technology (MIIT) and the National Development and Reform Commission issued a development plan for the electronic information manufacturing industry during the 15th Five-Year Plan (2026–2030) on 15 September.
Key quantitative targets by 2030:
Scale: Revenue of industrial firms with annual main business income over Rmb20 million to exceed Rmb30 trillion yuan (about $4.5 trillion).
Innovation intensity: Sector-wide R&D investment intensity to reach 3.5%.
Adoption: A significant rise in the application penetration rate of new‑generation intelligent terminals (the plan stresses wider deployment of AI‑enabled devices and systems).
The plan organizes priorities around a few core domains:
1) Integrated circuits (semiconductors) – full‑chain push.
Products: High‑performance processors; high‑density memory; highly reliable analog/mixed‑signal chips.
Process nodes: Refine mature processes while advancing leading‑edge nodes.
New materials/devices: Industrialize ultra‑wide‑bandgap semiconductors (e.g., gallium oxide, diamond).
Tools/IP: Accelerate EDA tools and core intellectual property; cover the full chain (design, manufacturing, packaging & testing, equipment, materials, tools).
2) Computing foundation and next‑gen computing
Prioritize in‑memory computing, quantum computing, and space‑based/space computing; accelerate optoelectronic integrated platforms.
AI hardware scale: Support AI clusters with hundreds of thousands of chips to underpin large‑model development.
3) Consumer electronics and intelligent terminals
Accelerate innovation and application of consumer electronic products; boost the penetration of new‑generation intelligent terminals.
Navigation: Promote the BeiDou system’s shift from industry‑specific uses to widespread public use.
4) Basic electronics and energy electronics
Basic electronics: Strengthen foundational components and modules that underpin the wider electronics supply chain.
Energy electronics: Advance next‑generation high‑efficiency photovoltaic cells; push commercialization of solid‑state batteries, sodium‑ion batteries, and flow batteries.
5) Safety‑critical and cross‑domain systems
Develop highly secure autonomous driving control systems and related electronics for smart vehicles.
Power
South Korea inducts first locally developed fighter into air force
South Korea inducted its first locally developed fighter, the KF-21 Boramae, into its air force, a major milestone for the country’s defence industry and the country’s goal of greater self-reliance. The delivery follows the completion of the KF-21’s flight-test programme in January and its public rollout in March.
South Korea has ordered 40 Block 1 KF-21s, focused mainly on air-to-air missions. A planned Block 2 version will add stronger air-to-ground capabilities, with the air force looking eventually to acquire around another 80 aircraft. The 4.5-generation jet combines South Korean and Western sensors and weapons. Its maker, KAI, also wants to export the plane, with Indonesia, Malaysia and the Philippines already named as potential customers.
Source: Breaking Defense
Risk
EU urges Britain to raise tariffs on Chinese cars, FT says
The EU told British Prime Minister Andy Burnham that the UK should raise tariffs on Chinese cars and align its trade policy more closely with the bloc, according to the Financial Times. Brussels warned that differing tariffs could allow Chinese goods to enter the EU through Britain, while suggesting that joining the EU customs union would solve many of these concerns.
Burnham wants Britain recognised as a “trusted partner” under the EU’s proposed “Made in Europe” rules as exclusion could damage the UK car industry and its role in European supply chains. The policy aims to reduce dependence on Chinese components, although Reuters said it could not independently verify the report.
Source: Reuters