In Short:
– China has deployed over 100 ICBMs in new silos near Mongolia, marking a significant nuclear expansion.
– Beijing aims to enhance military strategies for Taiwan by 2027, potentially affecting U.S. operations in the region.

China has deployed over 100 solid-fueled intercontinental ballistic missiles (ICBMs) in newly constructed silo fields near its border with Mongolia, according to a draft Pentagon report reviewed by Reuters.This marks the most significant nuclear expansion by Beijing to date. The United States indicates that China shows no intention of engaging in arms control negotiations, despite President Trump’s calls for denuclearization talks with both China and Russia.

The report states that the DF-31 missiles, which have a range of 7,000 to 11,700 kilometers, are positioned across three silo fields. While the Pentagon had previously acknowledged these fields, this is the first confirmation of the number of deployed missiles.

China’s nuclear warhead stockpile was estimated at around 600 in 2024. The report projects an increase to over 1,000 warheads by 2030. It highlights a lack of willingness from Beijing to pursue arms control measures.

Beijing has dismissed such reports as attempts to discredit China and claims that it follows a nuclear strategy of self-defense with a no-first-use policy.

The Pentagon assessment indicates that China plans to be capable of fighting and winning a conflict over Taiwan by 2027. Beijing is reportedly enhancing military strategies to capture the island through forceful means.

These military strikes could potentially disrupt U.S. operations in the Asia-Pacific region.

Neither the Pentagon nor China’s embassy in Washington responded to requests for comment. U.S. officials cautioned that the draft report could change before its formal submission to lawmakers.

In Short:
– Japan plans to invest ¥1 trillion in domestic AI to enhance infrastructure and compete globally.
– China is focusing on technological independence as domestic chipmakers prepare for public offerings.

Japan plans to invest ¥1 trillion ($6.34 billion) over five years in a domestic artificial intelligence company. This initiative aims to build infrastructure for AI, despite rising electricity costs raising concerns about the industry’s sustainability.The government will collaborate with SoftBank Group and Preferred Networks to develop the largest foundation model in Japan, employing around 100 engineers to compete globally. This effort reflects worries about the risks of relying on foreign AI technology.

China is also increasing its focus on technological independence. Domestic chipmakers are preparing for public offerings to enhance their capabilities, following successful launches by Moore Threads and MetaX in Shanghai. Companies such as Biren Technology and Baidu’s Kunlunxin are also planning to go public.

SoftBank is pursuing a $22.5 billion funding commitment to OpenAI by year-end, by selling assets and securing loans. CEO Masayoshi Son’s significant investment signifies a strong commitment to AI infrastructure.

AI Infrastructure

The rapid expansion of data centers is putting pressure on energy resources. Projections suggest data centers will consume 945 terawatt-hours by 2030, nearly tripling from 415 TWh in 2024. In the U.S., energy use by data centers could reach 9% to 12% of total supply by 2028.

Concerns have arisen over whether tech companies’ activities are raising residential electricity costs, with investigations launched by three Democratic senators targeting major companies like Alphabet, Microsoft, and Amazon. Utilities face significant expenses to upgrade grids, which may be passed on to consumers.

The energy demand is benefiting companies that supply power infrastructure. Jefferies recently upgraded GE Vernova to Buy, citing expected growth in gas pricing and long-term service demand amid rising energy needs.