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Gaza Ceasefire to Begin Today
International Desk, Rtv News
19 Jan 2025, 09:35
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A ceasefire in the Gaza war will begin on Sunday morning, mediator Qatar said, as Israeli Prime Minister Benjamin Netanyahu vows to bring back "all the hostages" held in the Palestinian territory.
The truce is intended to end more than 15 months of fighting and devastating bombardment, but in a televised address Saturday evening, the hawkish premier stressed Israel had US support to return to war if necessary.
During an initial 42-day ceasefire, Palestinian militant groups will hand over 33 hostages, three of them on Sunday, and Israel will release hundreds of Palestinian prisoners, some of whom will be deported.
"As coordinated by the parties to the agreement and the mediators, the ceasefire in the Gaza Strip will begin at 8:30 am (0630 GMT) on Sunday," Qatar's foreign ministry spokesman Majed al-Ansari said.
Israeli strikes on Gaza continued on the eve of the truce, with Gaza's civil defence agency saying at least five members of one family were killed when a strike hit their tent in Khan Yunis.
Explosions were heard over Jerusalem as Yemen's Huthi rebels launched a barrage of missiles at Israel in a show of support for Palestinians.
The Huthis said they targeted the defence ministry in Tel Aviv and also fired two missiles at the Red Sea port city of Eilat.
They also targeted an American aircraft carrier in the Red Sea on Sunday and warned of "consequences" should there be any retaliation during the ceasefire period.
In more than 15 months of war between Hamas and Israel, there has been only one previous truce, for one week, in November 2023. That deal also saw the release of hostages held by the militants in exchange for Palestinian prisoners.
Netanyahu said Israel had "changed the face of the Middle East" since the war began with Hamas's October 7, 2023 attack.
He called the 42-day first phase that starts Sunday a "temporary ceasefire".
"If we are forced to resume the war, we will do so with force," he said.
But Hamas said Israel had "failed to achieve its aggressive goals" and "only succeeded in committing war crimes that disgrace the dignity of humanity".
Israel's justice ministry said 737 Palestinian prisoners and detainees would be freed as part of the deal's first phase -- none before 4:00 pm (1400 GMT) on Sunday.
Trump
Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani told Sky News the framework signed this week was the same as one agreed in December 2023, adding it amounted to 13 months of "waste".
The truce is to take effect on the eve of Donald Trump's inauguration for a second term as US president.
On US network NBC on Saturday, Trump said he told Netanyahu that the war "has to end". "We want it to end, but to keep doing what has to be done," he said.
Palestinian president Mahmud Abbas said the Palestinian Authority (PA), which has partial administrative control in the Israeli-occupied West Bank, had completed preparations "to assume full responsibility in Gaza" after the war.
Israel has expressed no definitive stance on post-war governance beyond rejecting any role for either Hamas or the PA.
Outgoing US Secretary of State Antony Blinken said Gaza should be under PA control.
Ahead of the truce, displaced Gazans prepared to return home.
"I will go to kiss my land," said Nasr al-Gharabli, who fled Gaza City for a camp farther south. "If I die on my land, it would be better than being here as a displaced person."
Jerusalem residents said the deal had been a long time coming.
"Hopefully a maximum amount of hostages will be coming back", said Beeri Yemeni, a university student. "Maybe this is the beginning of (the) end of suffering for both sides, hopefully," he said, adding that "the war needed to end like a long, long time ago."
Hamas's 2023 attack resulted in the deaths of 1,210 people, mostly civilians, according to an AFP tally of Israeli official figures.
Of the 251 people taken hostage, 94 are still in Gaza, including 34 the Israeli military says are dead.
Israel's retaliatory campaign has destroyed much of Gaza, killing 46,899 people, most of them civilians, according to figures from the Hamas-run territory's health ministry that the United Nations considers reliable.
Aid-starved
Mediators had worked for months to reach a deal but the efforts were fruitless until Trump's inauguration neared.
Brett McGurk, the point man for outgoing President Joe Biden, was joined in the region by Trump envoy Steve Witkoff in an unusual pairing to finalise the agreement, US officials said.
Netanyahu said most of the 33 captives to be released in the first phase are alive.
"With this agreement, we will bring back 33 of our brothers and sisters, the majority alive," he said.
Israeli forces will withdraw from densely populated areas of Gaza and allow displaced Palestinians to return "to their residences", the Qatari prime minister said.
Biden said a second phase of the agreement not yet finalised would bring a "permanent end to the war".
In aid-starved Gaza, humanitarian workers caution that a monumental task lies ahead.
Hundreds of trucks loaded with aid have lined up on the Egyptian side of the Gaza border.
Egyptian Foreign Minister Badr Abdelatty said 600 trucks a day would enter Gaza after the ceasefire takes effect, including 50 carrying fuel.
(Source: BSS)
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Chinese National charged with Acting as Beijing's Agent in Local California Election
A Chinese national was arrested Thursday on charges of acting as an illegal agent for Beijing when serving as the campaign manager for an unnamed politician elected to a city council in Southern California two years ago.
The arrest of Yaoning "Mike" Sun, 64, came at a time of rising concerns that the Chinese government has cultivated a network of operatives to influence local elections in the US to install politicians who are friendly to Beijing and can help promote Chinese interests.
According to a complaint filed Tuesday in the US District Court for the Central District of California, Sun is accused of conspiring with Chen Jun, who was sentenced to 20 months last month for acting as an illegal agent of the Chinese government.
Chen, 71, also a Chinese national, pleaded guilty in July to using Chinese money to bribe federal agents to undermine the anti-Beijing spiritual group Falun Gong. The charge against Sun shows that Chen also conspired to interfere with local elections.
It was not immediately clear if Sun had a lawyer who could speak on his behalf.
Sun was instructed by Chen to write up a report in 2023 to recount to Chinese officials how they helped the local politician get elected, according to the affidavit.
Subsequent writings between the two men described the city councilperson as a "new political star" and included a request for US$80,000 to fund more pro-Beijing activities in the United States, according to the court documents.
Chen asked Sun to list all the mainstream American politicians the city councilperson was familiar with and told Sun that it would be "very effective to elevate" the status of the councilperson in China.
"This case is yet another example of a very disturbing trend: the People's Republic of China is seeking to influence foreign and domestic policy in the United States," Martin Estrada, US attorney for the Central District of California, said in a call with reporters.
"To do so, government officials in China are seeking to help get elected individuals who they see as being friendly to Chinese foreign policy."
The charges against Sun followed those against a former aide to two New York governors in September. Authorities have accused Linda Sun of acting as an illegal agent of the Chinese government and using her positions to subtly advance Beijing’s agenda in exchange for financial benefits worth millions of dollars.
In California, Estrada said Yaoning Sun appeared to be ideologically invested in furthering the interests of the Chinese government in the United States, noting that he had previously served in the Chinese military. The complaint does not specify financial gains for Yaoning Sun, who probably is not related to Linda Sun, as they share a common Chinese name.
In the affidavit, it is alleged that Yaoning Sun, a resident of Chino Hills outside Los Angeles, also ran a media outlet called the "US News Centre" with the councilperson and paid for some of the politician’s travel expenses.
Prosecutors say Sun worked closely with Chen, who appeared to be in regular contact with Chinese officials. Their communications included how to protest a US congressperson's proposed visit to Taiwan, a self-governed island that Beijing sees as part of Chinese territory.
The men discussed how to set up a meeting for the politician to meet with the top Chinese diplomat in Los Angeles and arrange travel plans for the politician to visit China.
Can China Shield the Biggest Uninsured Economy From Floods?
The rivers and canals that meander through Hemudu in southeastern China are a vital source of life and community — they provide income for fishermen, an after-school hangout spot for kids, and define the town’s landscape. But when it rains, those waterways become a liability.
"This area floods every year,” says Zheng, a long-time resident who lives less than a mile away from a river. Over the past decade and a half, Zheng has seen floodwater repeatedly threaten the ground-floor grocery store that he runs and his home above. But with his income "barely enough to make ends meet” and a grandson to look after, the 60-year-old says relocation isn’t an option.
He’s tried but failed to insure his property. "Insurance companies turned us down because they said they'd have no chance to make money,” says Zheng, who asked not to be identified by his full name for fear of reprisal. "No one would take such a risk.”
Zheng is one of hundreds of millions of Chinese citizens whose homes and livelihoods have grown more precarious on a rapidly warming planet. Of the 20 most climate-vulnerable regions, 16 are on Chinese soil. Yet the world’s second-largest economy is among the least insured. Only about 10% of Chinese families have a home insurance policy, according to industry estimates. That figure is nearly 90% in the U.S.
China’s government knows it has to do something about that gap, which Swiss Re AG estimates amounted to $273 billion in uninsured losses over the last decade. Officials first started seriously discussing the need to build an insurance system after the devastating 2008 Sichuan earthquake killed almost 90,000 people and cost an estimated 845 billion yuan ($116 billion). But uptake has been slow, and now climate change is making insurance increasingly unattainable all over the world.
Part of the problem is cultural. Many Chinese people have traditionally relied on the government and family members in times of trouble, rather than market-based financial products. "Insurance as a service has not been widely accepted in China,” says Tian Ling, a professor at Wuhan University’s Economics and Management School. "If it’s up to Chinese individuals, very few people would buy catastrophe insurance. That leaves the government no choice but to purchase it for their citizens.”
As China’s government faces pressure from the public to show it’s taking steps to protect people from more extreme weather, the nation’s top-down economic management style is colliding with an insurance industry upended by global warming. Officials have started buying policies that cover entire cities and provinces. But local authorities are short on cash, meaning the coverage they can afford is far from what’s needed, even as rising climate risks cause premiums to surge. The decade-long initiative, instead, risks downplaying how exposed people really are and could even backfire by making it harder to unlock national funds in times of crisis, since these regions are ostensibly covered by the private market.
In 2014, the government of Ningbo, which oversees Hemudu, stepped in to buy citywide catastrophe insurance to cover residents like Zheng. A typhoon had wreaked havoc on the city the year before, prompting thousands of people to protest what they saw as insufficient disaster relief. It was one of the first experiments in what would eventually become a nationwide trial covering tens of millions of people in 74 cities and 15 provinces.
Unlike Zheng’s failed attempt to buy his own coverage, insurers found the Ningbo government was a client they couldn’t refuse. Participating providers have lowered their prices so the government can afford it because the program is too important to fail, according to people familiar with the arrangement who requested anonymity to discuss private details. Ningbo officials secured a discount of several million yuan on the annual premium for the three-year policy signed in 2021, one of the people said, even though the initial, higher price was based on the city’s growing climate risks calculated using scientific models.
Catastrophe insurance is not a lucrative business in Ningbo, according to an executive at PICC Property and Casualty, a top Chinese insurer that has been part of the program since 2014. "We are not after financial returns,” the executive said, asking not to be identified because they’re not authorized to speak to the media. When it comes to serving the government, "the political consideration outweighs anything else.”
The Ningbo government and PICC did not respond to questions about the catastrophe insurance program.
There is a potential risk for foreign investors backing the Chinese insurers that have been drawn into the programs. PICC has insured catastrophe risks for other provinces including Hebei, Sichuan and Zhejiang. China Life Insurance, Asia’s biggest insurer, has sold policies to Henan’s government and Ping An Insurance Group of China Ltd. is among those supporting the technology hub Shenzhen. All three companies are listed on the Hong Kong Stock Exchange. Citigroup and BlackRock, for example, hold 11% and 6% of PICC’s shares, respectively, according to data compiled by Bloomberg.
Chinese insurers don’t publish detailed profit breakdowns to establish how much these government deals have affected their bottom lines. But their experience in Ningbo in 2015 gives some indication. A consortium led by PICC lost about 56 million yuan due to a string of calamities that year, according to a 2022 analysis done by the insurer, Ningbo University and the local government. The disasters put the program "at risk of bankruptcy,” the authors noted, and "sounded an alarm about its future liabilities.” Yet a growing number of local authorities have struck similar deals with insurers, covering longer periods of time.
Wang He, chair of the China Association of Actuaries, has spent years studying the country’s catastrophe insurance problem. The ongoing local trials aren’t sustainable without broader publicly funded mechanisms to support communities after disaster, he says. "Catastrophe risk management falls within the realm of public management,” says Wang. A lack of understanding of that "public nature” in China has led to "a simplistic approach of delegating the job to the insurance industry, which is ill-equipped to shoulder the entire responsibility."
Without a wider protection system, flood victims like Zheng don’t have much recourse. In 2015, after Ningbo started its catastrophe insurance program, the shopkeeper received the first payout of his life. It was 1,000 yuan ($140), even though the water destroyed thousands of yuan worth of bottled water, snacks and everyday essentials such as toothbrushes that he could no longer sell.
Located about 150 miles south of Shanghai, Ningbo is a land of historic relics and modern skyscrapers. The 7,000-year-old city owes much of its prosperity to the East China Sea, which once helped Ningbo carve out a spot on the ancient Silk Road and continues to make it a vital trading hub. But the bustling coastal region is also a magnet for natural disasters. The city, home to nearly 10 million people, has been battered by more than 40 storms over the last two decades.
While that first payout in 2015 left the insurers who sold the policy in deficit, the government was pleased with the 78 million yuan its residents received. It was almost twice what the government had spent on premiums. The apparent success convinced officials to turn the one-year pilot into a three-year deal. It also turned Ningbo into a shining example of how to deploy catastrophe insurance. Bureaucrats from all over China flocked to the city to learn how to replicate the program at home.
But local governments across the country face the same dilemma as Ningbo. They’re trillions of yuan in debt and grappling with an economic slowdown that's seen China's government add a sweeping package of stimulus measures. There isn’t enough cash to dole out when disaster strikes; even investing in insurance policies can be a stretch. In 2021, when record rain battered Henan province in central China, killing nearly 400 people, relief spending ballooned to 100 million yuan in a matter of days. China said last year that it would issue 1 trillion yuan in special Treasury bonds to raise funds for future calamities.
The central government typically allocates relief funds after an area is hit by destructive weather, but how much trickles down to individual households depends on how local authorities decide the money should be spent. China’s top leaders signalled this month that the nation will increase public borrowing and spending in 2025, but officials have so far been reluctant to directly hand out cash or significantly widen the social safety net. President Xi Jinping has warned against falling into a trap of "welfare” or "feeding lazy people.”
All that makes catastrophe insurance an appealing solution. Still, the policies are pricey because they guard against extreme risks, and premiums are quickly rising as reinsurers brace for higher climate damages. The World Bank estimates that China will lose as much as 2.3% of its economic output to weather perils made worse by global warming by the end of this decade.
The Ningbo Model — as the insurance program was dubbed by the Communist Party mouthpiece People’s Daily — has been held up as a win-win answer because it enlists the private sector to lessen the financial burden on the state and payments are quicker without having to deal with government red tape. But it also has some less appealing characteristics. Unlike traditional insurance, where payouts are commensurate with actual losses, Ningbo has a "parametric insurance” policy that only delivers compensation when certain thresholds are hit. A home inundated with, say, 7 inches of water might not meet the requirement for a payout if the trigger requires floodwaters to reach 7.8 inches.
There’s also a cap on each payment. If their house collapses, a family only stands to receive a maximum payout of 10,000 yuan in a given year. An average house in Ningbo is worth 23,000 yuan per square meter. Since the program started, eligible households have received under 660 yuan each, on average, less than 1% of the annual disposable income of the city’s residents.
The insurers behind Ningbo’s program have gradually raised the upper limit for payouts, but how far they can go comes back to how much the government can afford in premiums. Ningbo is home to China’s second-busiest cargo port and a petrochemical industry worth $72 billion, helping it to weather China’s economic woes better than many of its neighbours. Even so, local officials rejected an informal proposal to turn its current three-year policy into a five-year arrangement, due in large part to concerns over the government’s ability to commit to the program long-term, according to one of the people familiar with the deal.
In recent years, the government has also added clauses to the policy that likely wouldn’t pass muster in the West. Starting in 2021, participating insurers are required to channel a chunk of their underwriting profits to Ningbo’s disaster relief fund if the city avoids major damages during their time of service. That, together with the push to raise compensation levels, has forced the insurers to operate on razor-thin margins, even in good years.
The practice is "not widely used in commercial markets,” says Christopher Au, climate practice lead for Asia Pacific at insurance broker WTW. But because insurers can tap the relief fund under some circumstances if payouts exceed what they’ve collected in premiums, Au says the arrangement can also potentially help spread out their risk and reduce the volatility of profits and losses from year to year.
To keep climate-induced losses at bay, Ningbo has improved its early-warning system for typhoons and moved some residents out of floodplains.
But the insurance program remains a cosmetic addition to the city’s arsenal of protection measures. All told it offers a maximum coverage of 500 million yuan per year for natural catastrophes. A 2022 study published in Nature estimates that climate change will increase the frequency of super typhoons in Zhejiang province, where Ningbo sits, causing damages as high as 36 billion yuan, on average, every eight years by the end of the century.
The intention was always for government-funded insurance to eventually translate into a more robust private market. In theory, as beneficiaries of the public program grew more familiar with the idea of insurance, they would start buying policies of their own. Yet less than 40% of Ningbo residents surveyed for the 2022 analysis expressed interest in purchasing their own catastrophe insurance.
Local governments will likely remain the driving force behind any catastrophe insurance in China for the coming years, says Wang Xujin, executive director of the Insurance Society of China, an industry group. One way to keep premiums manageable for local governments is to scale up the program across the country, spreading risk over vast areas with different climate risks.
That’s easier said than done. For one, some poorer local governments simply don’t have the resources to spare. It will also be extremely difficult to convince officials in lower-risk areas to split the bill with those that are more highly exposed, he says.
There have been attempts within the central government to set up a national catastrophe insurance program, says Wuhan University’s Tian. But none of the talks have borne fruit. "The discussions always circle back to one issue,” she says. "Who pays?”
Wang He, from the China Association of Actuaries, says he’s concluded there’s only one solution. China needs to build a "new national system” that establishes a disaster relief fund for the whole country financed by the central government and other financial instruments such as catastrophe bonds.
Until then, Chinese officials are eager to point to the growing insurance program as evidence that they’re taking action. Ningbo’s government has touted it as a "shock absorber” for the economy that will help boost social stability. In Shiqiao, a canal-side suburb of Ningbo, a tailor surnamed Lin is mollified that the state is at least trying to do something about the constant flooding.
Like Zheng, she also received an insurance payout of 1,000 yuan after waist-deep water inundated her home in 2022 and soaked a stockpile of new solar-powered water heaters she had planned to sell. "The 1,000 yuan is far from enough to cover my losses,” she says. "But it’s better than nothing.”
Source: Bloomberg
China Taken Efforts Consistent with 'Transnational Repression': US
Principal Deputy Spokesperson of the US Department of State, Vedant Patel on Wednesday (local time) about allegations of China's espionage activities in the US, said that a country should obey the local laws when they are operating abroad.
On being asked about what steps was the US taking on China's establishment of Confucius Institutes in US universities, the operation of overseas undercover police stations, and hacking training institutes, Patel said that they are aware of such reports and Chinese activities that amount to transnational repression.
"So I'm certainly not going to get into results, and I certainly wouldn't speak to something like this in specificity. But of course, we're aware of these kinds of reports, and we're certainly aware of the lines of efforts that have been undertaken by the PRC to conduct what we would view as things that would be consistent with transnational repression as it relates to its own people overseas. And our view is that any country abroad should be obeying and obliging with the local law enforcement and local laws, but beyond that, I'm just not going to get into that specifically," he said.
The FBI and the US's Cybersecurity and Infrastructure Security Agency (CISA) on November 13 issued a warning that the breach, initially discovered late last month, has since uncovered a wide-reaching and serious cyber espionage operation.
Investigators now believe that a cyberattack on US telecommunications systems initially thought to be targeting American presidential campaigns, is much more extensive. It is likely part of a broader effort by China to conduct widespread surveillance on the United States, as reported by Voice of America.
In a statement, the two agencies confirmed that their investigation has revealed Chinese-affiliated hackers infiltrated the networks of several US telecommunications companies, potentially gaining access to a vast amount of sensitive data. Furthermore, the hackers appear to have successfully copied information that was requested by US law enforcement through court orders.
Tibetan Leaders Advocate For Challenges Faced Under Chinese Rule in Delhi
The members of the 17th Tibetan Parliament-in-Exile have been actively advocating for Tibet in New Delhi, highlighting the severe challenges faced by the Tibetan people under the Chinese Communist regime.
The Tibetan parliamentarians, who met Indian parliamentarians from December 16 to 18, focused their efforts on raising awareness about the ongoing struggles in Tibet and sought support for their cause.
Tibetans continue to face harsh repression under Chinese rule, including the suppression of their culture, language, and religion.
The Chinese Communist Party has implemented policies aimed at eradicating Tibetan identity, including restrictions on religious practices and the forced assimilation of Tibetan culture.
The situation is exacerbated by the detainment of Tibetan political prisoners, with notable cases such as the continued imprisonment of Gedhun Choekyi Nyima, the 11th Panchen Lama, who disappeared into Chinese custody at the age of six.
In addition to cultural and religious repression, Tibetans have been subjected to severe human rights violations, with reports of torture, forced labour, and arbitrary detentions. The Chinese government’s efforts to silence dissent have led to widespread fear among Tibetans, both inside Tibet and in exile. There are also growing concerns about the environmental impact of China’s exploitation of Tibet’s resources, which is contributing to global climate change, particularly through the diversion of water from Tibet’s rivers and the destruction of its ecosystems.
The Tibetan parliamentarians have urged Indian leaders and the international community to support Tibet’s struggle for autonomy and justice. They have called for China to engage in meaningful dialogue with Tibetan representatives, including His Holiness the Dalai Lama, under the Middle Way Policy, and to release all Tibetan political prisoners. They also seek international recognition of Tibet as an occupied nation with a distinct and sovereign history. (Source: ANI)
Tens of Thousands Join Student-led Protests in Serbia
Serbians took to the streets in the capital Belgrade on Sunday to protest against the current government. Roughly 29,000 people attended the demonstrations, according to an interior ministry statement.
Serbia's government has been under pressure after seven weeks of sporadic demonstrations nationwide in response to the collapse of a train station roof that killed 15 people in the northern city of Novi Sad.
Demonstrators blame the train roof collapse on widespread corruption and sloppy work on the railway station building, which had been refurbished twice in recent years as part of projects involving Chinese state companies.
Some 13 people have been arrested over the Novi Sad tragedy, including a government minister. But the minister's later release fueled public skepticism about the investigation.
Serbian President Aleksandar Vucic had been dismissive of the protests, saying on Saturday said he "doesn't really care" about the protests, accusing his opponents of manipulating students to gain power.
But he referred to Sunday's protest as a "significantly large gathering," saying that he was "ready" to hear the protesters' demands.
A student-led movement
Sunday's protest, much like in previous weeks, was organized by students but had additional support from groups like farmers' unions, actors and educators on Sunday.
The gathering started with 15-minutes of silence as tribute to the 15 victims at the Novi Sad train station.
After the solemn moment, demonstrators staged a "half-hour noise" by blowing whistles and other loud items.
The rally at Belgrade's Slavija Square is considered one of the largest in recent years to challenge Vucic's power.
In response to the protest movement, Serbia's government has extended school winter holidays, starting them nearly a week earlier.
Authorities have also promised various subsidies for young people in an effort to quell public anger.
Guam arrests 7 Chinese nationals who tried to illegally enter US military site during missile test
Seven Chinese citizens have been arrested for allegedly attempting to illegally enter Guam, a US territory, while the military was conducting a key missile defence test, authorities said.
The incident, which occurred on 10-11 December, has raised concerns about potential espionage as four of those detained were found “in the vicinity of a military installation,” Guam’s Customs and Quarantine Agency said.
The arrests came as the US Missile Defense Agency conducted an interception test involving advanced radar systems at Andersen Air Force Base on 10 December.
“Conducting espionage against US military facilities, especially those with missile launch capabilities, could provide the PRC with potentially valuable intelligence,” the US think tank Institute for the Study of War said in a report on Friday, using the formal name of the People’s Republic of China.
The arrested individuals reportedly arrived on the island by boat from Saipan.
Guamanian authorities have launched an investigation into the incident, but there has been no immediate response from China’s foreign ministry to the arrests or the allegations.
The US is ramping up its missile defence presence in Guam, aiming to create a network spanning 16 sites on the island. The $10 billion plan is designed to deter missile attacks by complicating potential offensives against the strategically vital US territory in the Indo-Pacific region.
The integration of advanced radar and defence systems forms a crucial part of the effort to counter emerging threats, including those from China.
The missile interception test on 10 December was deemed successful, with the Missile Defence Agency confirming a plan to carry out two such tests annually.
US Plans to Blacklist Company That Ordered TSMC Chip Found in Huawei Processor
The Biden administration plans to blacklist a Chinese company whose TSMC-made chip was illegally incorporated into a Huawei artificial intelligence processor, according to a person familiar with the matter.
The Chinese company, Sophgo, drew attention after a chip found on Huawei’s Ascend 910B multi-chip system matched one it ordered from Taiwan Semiconductor Manufacturing Company. Sophgo is the latest Chinese company slated to be punished by the US for helping Huawei. This month, the Commerce Department added other companies viewed as part of Huawei’s shadow network to the US Commerce Department’s restricted trade list.
Sophgo, an affiliate of bitcoin mining equipment supplier Bitmain, is in the process of being placed on the list, known as the Entity List, the source said.
The Entity List includes companies whose activities conflict with US national security and foreign-policy interests. Listed parties face export restrictions, requiring a license to receive goods and technology, which is often denied.
Huawei has been subject to these restrictions, with foreign-made chips being barred from being shipped to the company since 2020.
Sophgo has not commented on the latest development, the news publication added. However, the company stated in October that it “has never been engaged in any direct or indirect business relationship with Huawei”.
Sophgo supplies to local governments and state-owned companies such as China Telecom. In addition, Chinese state-run universities and police stations have acquired Sophgo and Bitmain AI chips over the past two years for AI tool development and surveillance upgrades.
Tech research company TechInsights discovered the TSMC chip in the Huawei 910B and informed TSMC, which notified the US Commerce Department. However, Huawei stated in October it has not produced chips via TSMC since the 2020 US export restrictions.
A Taiwan official confirmed that TSMC alerted authorities and initiated a detailed investigation.
Starting 11 November, the US ordered TSMC to stop shipments to China of advanced chips potentially used in AI applications.
In August, Huawei announced plans to release a new AI chip called the Ascend 910C in the Chinese market.
