July 14th, 2025

USCSSO @GWU
2 days ago
5 min read

Overview

This week, we discuss Germany's accusations of laser deployment by the Chinese Navy, Nvidia’s plan to produce a new AI chip for export to China, and Taiwan’s unveiling of an advanced rocket system during its annual military drills.

Security

Germany Accuses Chinese Navy of Lasering Aircraft During Operation

By Contributor Kenny Li

While conducting the European Union’s Operation Aspides, German officials say that they were forced to temporarily halt after Chinese warships pointed lasers at their aircraft.

The 47th Chinese Naval Task Force is a naval group that monitors the Gulf of Aden waters, which is where the incident allegedly took place. (via SCMP)

Naval Provocation: Last week, German operations near the Red Sea were forced to halt after their multi-sensor platform plane allegedly observed lasers pointed at them by members of the Chinese People’s Liberation Army (PLA). The German forces were conducting the European Union’s Operation Asides, which focuses on protecting merchant vessels from possible attacks in the Red Sea. After the incident, Germany’s military was forced to temporarily halt at the nearby country of Djibouti, where they soon resumed their operations. Germany’s Foreign Office called it “unacceptable” behavior by the PLA, and summoned the Chinese ambassador to Berlin. China’s diplomatic spokesperson, Mao Ning, not only denied the incident from ever taking place, but says PLA naval forces were not even in the Red Sea but rather near the Gulf of Aden, suggesting the Western country take a “fact-based attitude”.

Trade Hostility: Since the start of the Gaza War in late 2023, the Yemen Houthis, a U.S.-designated terrorist organization, have ramped up trade attacks in the Red Sea region. Some of these attacks were directed towards U.S. and U.K. forces, prompting the European Union to begin Operation Aspides in late 2024 to maintain “freedom of [trade] navigation” in the Red Sea area. While China has not been directly involved in the Red Sea Crisis, its trade interests in the area remain high, with around $150 billion in imports/exports flowing through that region. Chinese laser accusations are not entirely new; in 2018, U.S. aircraft observed similar incidents in the same area, and in 2020 were also met with Chinese lasers near the U.S. military base in Guam.

Merits and Doubts: Both the Red Sea and the Gulf of Aden are connected by the Bab Al-Mandab Strait, which itself is bordered by Yemen and Djibouti. If true, China’s claim that the PLA was operating nearby in the Gulf of Aden would have some merit. However, given China’s assertive “wolf-warrior diplomacy” and the numerous alleged incidents over the years, Western forces have long doubted China’s responses. Laser standards in America, which prohibit pointing at aircraft, are not widespread throughout the world. Perhaps China has used this as a new provocation method, agitating adversaries while believing the alleged action as ultimately harmless.

Technology

NVIDIA to Produce AI Chip for Export to China

By President Ryan Szafran

American chipmaker Nvidia starts production on an AI chip designed for export to China amidst recalculations in the U.S. government’s export controls and long-term strategic considerations for AI ecosystems.

Nvidia has developed an AI chip for export to China that balances market competitiveness with security-minded export controls from the U.S. government. (via Digital Watch)

Made for China Chip giant Nvidia is set to begin production of an AI chip for export to China that is in compliance with standing export controls. The chips have been given several names, reflecting the internal deliberations on how to best produce a product that appeals to customers while remaining legally compliant with US restrictions. These B30 chips will not feature the memory bandwidth and interconnect bandwidth present in the most advanced H20 chips. Such capabilities are the specific targets of the US government’s export controls. Analysts expect that the new chip, while lacking in key cutting-edge features, will keep Nvidia competitive in the China market where 13% of their sales are made. The American chipmaker is in competition with China’s Huawei, which rolled out its own Ascend 910C in May as an alternative to the coveted H20 model.

Export Restrictions Primer Restrictions on exports of high-end chips began under the Biden Administration, encapsulated by former National Security Adviser Jake Sullivan’s phrasing of erecting a “small yard, high fence.” Conceptually, the policy was designed to protect American AI and military advantage by preventing China from gaining access to the most advanced chips, while avoiding any disturbance of the robust trading relationship between the two countries. Initially, officials sought to contain the scope of these controls, but in late 2024, expansions were announced that capped sales to other countries. The goal of broadening the restrictions was to prevent intermediary sales that circumvented the controls. The Trump administration, however, has rescinded the policy expansions, claiming that they hurt relations with countries that saw their ability to import AI chips contained. Nvidia’s CEO, Jensen Huang, has been an outspoken critic of the restrictions on chip exports, calling them a failure and claiming they’ve galvanized China into supporting its own competitors to domestically reduce dependence on US chips. Central to Huang’s argument is the idea that the export restrictions preclude US companies like Nvidia from competing with Chinese chipmakers in one of the world’s largest markets.

“Sovereign AI” In recognition of the geopolitical sensitivities surrounding AI development, Huang has been promoting his concept for nationally contained tech stacks within local infrastructure which he has termed “Sovereign AI.” The program is finding traction as evidenced by the plans announced in Germany, France, Saudi Arabia, South Korea, and the UAE to build local AI infrastructure. Nvidia clearly stands to gain economically as the maker of 90% of the world’s commercially available GPU chips. The countries themselves are incentivised by the prospects of competing with American firms, protecting the privacy of their citizens' data, and allowing researchers access to the high-powered AI centers.

Defense

Taiwan Exhibits Advanced Rocket System In Annual Drills

By Newsletter Director Lindsey Spain

Amid a series of annual military drills, Taiwan displayed a set of United States-supplied strike weapons, exemplifying determination against continued Chinese military pressure.

Taiwan showcases a High Mobility Artillery Rocket System (HIMARS) in a Taichung park as part of the Han Kuang military exercise. (via Al Jazeera)

Weaponry Display: In a display at the 41st annual Han Kuang Exercise, the Republic of China Armed Forces (ROCAF) exhibited a new series of US-supplied advanced missile weaponry. Taking place on day four of ten, two armored tanks installed with High Mobility Artillery Rocket Systems (HIMARS) were seen driving around the city of Taichung, near Taiwan’s central coast. ROCAF states that it would be essential to conceal the HIMARS from enemy aerial reconnaissance and satellites. China’s Ministry of National Defense maintains that the Han Kuang Exercises are “nothing but a bluff,” while also strongly insisting on consistent opposition to US-Taiwan military ties.

Missile Defense: The HIMARS comprised three different weaponry systems on display, including the Patriot air defense system and US-supplied Stinger missile launchers. HIMARS is a precision-guided rocket artillery system primarily utilized for ground attacks. Recently, HIMARS has shown distinct effectiveness in the Ukrainian defense against Russian forces. Despite the US commencing distribution of weapons platforms ordered by Taiwan, estimates by the Cato Institute approximate that, as of the end of last year, there remains $20 billion in backlogged orders.

China’s Response: As previously stated, China maintains consistent opposition to US-Taiwan military ties, and has recently bolstered military activity in the Taiwan Strait. In an interview with Yun Sun, director of the China Center at the Stimson Center, China likely views the recent drill activities as a display of political messaging or activism, rather than a genuine concerted effort to constructively mobilize against China. However, with a continued Chinese military presence in the Taiwan Strait, attitudinal displays must be taken into close consideration for continued regional security.