Links for Wednesday, November 3, 2021

BUSINESS NEWS FROM SUPCHINA A.M.:

Shenanigans at on-demand trucking company
Yunniao Technology is a short-haul trucking platform that matches shippers with drivers. But according to several employees, the company itself is having logistics challenges:

• The manager of Yunniao’s Weibo account used it to denounce the CEO, Hán Yì 韩毅, encouraging people to sue him and claiming some employees haven’t been paid for three months.
• More disgruntled employees quickly emerged, claiming they were forced to buy the company’s financial products, and that drivers were required to pay a 4,000 yuan ($626) deposit before they could get jobs, but never had them refunded.
• Yunniao has over 1 million drivers, and as of 2019, it was valued at just over $1 billion, backed by investments from Warburg Pincus, Sequoia, and several Chinese players.
• The company is reportedly filing for bankruptcy. After announcing the news in a company WeChat group, the CEO withdrew from the group and has yet to make any public statements.

Beverage maker Genki Forest raised $200 million
元气森林将完成新一轮150亿美元估值融资，淡马锡领投 / 36kr
After its latest funding round, the trendy beverage maker’s valuation is now $150 billion — up 250% in just half a year.

Additional business and technology links:

Bankers tread where tech angels fear to tread
World’s financial institutions must weigh risk of expanding in China / Nikkei Asia (paywall)
The Nikkei View says: “Fickle regulations and property bubble among many dangers.”
Why are foreign tech firms pulling out of China? / AP
“Foreign technology firms have been pulling out or downsizing their operations in mainland China as a strict data privacy law specifying how companies collect and store data takes effect.”
Yahoo quits China in wake of LinkedIn exit as media hurdles grow / Bloomberg (paywall)
Yahoo pulls out of China, citing ‘challenging’ environment / AP

China’s data and privacy crackdown continues
China ministry orders 38 apps to rectify excessive collection of personal data / Reuters
“The order marks the latest move in a continuing regulatory crackdown in China across a range of sectors, and arrives days after China’s Personal Information Protection Law (PIPL), a sweeping ordinance dictating online privacy practices, went into full effect.”
China’s central bank speaks up as data privacy advocate as it curbs unauthorized and excessive data collection by fintech companies / SCMP (paywall)
Beijing orders fresh batch of apps, including some run by Tencent and Alibaba, to rectify violations as regulatory crackdown continues / SCMP (paywall)

User benefits of the tech crackdowns
Beijing wants to make the internet less annoying / Protocol
“The latest regulation by the MIIT shows that Beijing is also learning quickly, evolving its internet governance to match the often annoying innovations of China’s private sector.”

China’s couriers have yet to see a “common prosperity” pay raise
China’s couriers say bosses took their raise / Sixth Tone
“A pay increase for couriers, presented as a “common prosperity” income equality package, has been delivered to [the] wrong address.”

China’s digital yuan: 140 million users spend nearly $10 billion
China’s PBOC says digital yuan users have surged to 140 million / Bloomberg (paywall)
“China has increased the number of individuals with digital yuan accounts to 140 million, with 10 million corporate accounts created, a top official at the People’s Bank of China said.”
$9.5 billion spent using Chinese central bank’s digital currency – official / Reuters

Tencent expands into chips
Tencent unveils first chips in push beyond online content / Bloomberg (paywall)
“Tencent Holdings Ltd. has unveiled its first chips, showcasing a yearlong foray into silicon design as the Chinese tech giant seeks to grow beyond digital entertainment.”
Tencent launches three self-designed chips in expansion drive, helping boost China’s semiconductor development efforts / SCMP (paywall)
See on The China Project: Alibaba’s silicon chip in the age of hypersonic missiles.

From Huawei to solar: The American fight to control Chinese tech
The strange saga of Huawei / NYT (paywall)
“How the U.S. tries to keep the country safe and competitive as the future of technology becomes less American.”
Top solar firm Longi says U.S. customs detained products / Bloomberg (paywall)
“China’s Longi Green Energy Technology Co., the world’s largest solar-panel maker, is the latest in the industry to have shipments detained by U.S. customs as part of a crackdown by Washington over alleged human rights abuses in the Xinjiang region.”
Longi may be latest Chinese solar firm to see products blocked at U.S. border / Bloomberg (paywall)
China opposes U.S. revocation of licence for China Telecom / Reuters
“The U.S. decision, made public a day earlier, means the U.S. subsidiary, China Telecom Americas, must discontinue services in the United States within 60 days.”

Keeping an eye out on the property crisis
China Evergrande completes delivery of 184 projects in July-Oct / Reuters
China’s property developers struggle to find buyers for billions in assets / Bloomberg (paywall)
“Property developers in China looking to raise badly needed cash by selling assets are finding it hard to strike deals as potential buyers in the sector hoard funds after home sales plunged and Beijing stepped up its borrowing crackdown.”
Evergrande: The bond and interest payment deadlines to watch / FT (paywall)
“Chinese developer narrowly averted default but is under pressure to meet obligations into next year.”

Coal prices plummet, food costs soar
China’s coal prices plummet after regulators step in / Caixin (paywall)
Chinese food giants hike prices as costs rise / Caixin (paywall)

HR tech startup Moka raises $100 million
China’s HR tech startup Moka closes $100M led by Tiger Global / TechCrunch

SCIENCE, HEALTH, AND ENVIRONMENT:

American moth wreaks havoc in Beijing
Combating the North American pest that has reveled in Beijing’s wet summer / Caixin (paywall)
The invasive fall webworm (Hyphantria cuneaor, 美国白蛾), “responsible for damaging 179 species of plants, was first found in the northeastern Chinese province of Liaoning in 1979, before spreading to Shandong and Shaanxi provinces and causing a moth plague in the early 1980s. As of this year, the insect has been spotted in at least 607 counties in 13 provinces.”

Can China decarbonize and wean itself off coal?
China says it won’t abandon climate goals by moving back to coal / Bloomberg (paywall)
China targets 1.8% cut in average coal use at power plants by 2025 / Nikkei Asia (paywall)
China’s climate goals hinge on a $440 billion nuclear buildout / Bloomberg (paywall)
“After decades of cost-overruns, public protests and disasters elsewhere, China has emerged as the world’s last great believer, with plans to generate an eye-popping amount of nuclear energy, quickly and at relatively low cost.”
A novel way to reduce emissions? China tries confiscating coal from households. / Washington Post
“In recent weeks in Tangshan, officials have urged residents to go green by ditching their coal stoves for electric heaters, according to local government announcements. Climate researchers say such measures will have limited impact on emissions, because households use a lot less coal than factories do.”
Chinese scientist floats idea of harvesting power from ocean waves / Sixth Tone
“Research is currently underway on the technology that could provide an affordable and uninterrupted power supply.”

Chinese citizens scour supermarkets, internet for food after government warning
Chinese stock up on staples after government ‘just in case’ advice prompts confusion / Reuters
Supermarkets inundated after gov’t tells people to stock up food / Sixth Tone
Chinese netizens search for biscuits, canned meat after Beijing advises to stock up on food / Bloomberg (paywall)

COVID-19: Biggest outbreak since the start of the pandemic
China’s latest Delta outbreak its most widespread since Wuhan / Bloomberg (paywall)
World Economic Forum postpones China event due to COVID-19 / Reuters

POLITICS AND FOREIGN AFFAIRS:

Top U.K. school scraps plan to develop links in China
Westminster School scraps plans for linked institutions in China / FT (paywall)
“Westminster School, one of the U.K.’s most prestigious, has scrapped plans to develop a series of academies in China, in one of the highest-profile reversals to the rapid expansion of international education in the country in the face of a growing clampdown by the authorities.”

U.S. arrests Chinese fugitive who ran illegal fundraising scheme on visa fraud
Chinese fugitive who cheated thousands charged in U.S. with visa fraud / Caixin (paywall)
Shī Jiànxiáng 施建祥, “a high-profile fugitive wanted in China over a 43.4 billion yuan ($6.3 billion) illegal fundraising scheme, was charged with visa fraud in a court in Florida after being arrested in Las Vegas where he was promoting cryptocurrency.”
U.S. arrests fugitive Chinese businessman, alleging visa fraud / WSJ (paywall)

China courts Central America, Caribbean to cut off Taiwan
As China campaigns to cut off Taiwan, Honduras poised to flip next / Nikkei Asia (paywall)
“Beijing woos Central America and Caribbean with vaccines and infrastructure.”

Taiwan war watch: EU defies China with visit to Taiwan, China keeps a lid on talk at home
EU Parliament tests China’s warnings with first visit to Taiwan / Bloomberg (paywall)
“The first official delegation of European lawmakers landed in Taipei, defying warnings from China that the bloc’s support for the democratically ruled island would have dire consequences.”
European lawmakers arrive in Taiwan ‘to offer support for our friends’ / SCMP (paywall)
Taiwan welcomes first official European Parliament delegation / Reuters
China moves to quash online rumors that Taiwan war is looming / Bloomberg (paywall)
“Chinese state media have sought to quiet online speculation that a conflict with Taiwan may be imminent, in a sign of how heated rhetoric between Washington and Beijing was feeding public concern about the risk of war.”
Beijing quells rumours of looming Taiwan war stoked by fake PLA texts and misunderstood stockpile memo / SCMP (paywall)
Chinese military holds live-fire drills in East China Sea amid Taiwan tension / SCMP (paywall)
China unlikely to try to militarily seize Taiwan in near future, top U.S. general / Reuters

COP26: China expects a deal on carbon market rules, Biden chides Xi’s absence
China’s climate envoy expects a deal on carbon market rules in Glasgow / Caixin (paywall)
Biden says Xi, Putin cede climate influence by missing Glasgow summit / WSJ (paywall)
Biden scolds China and Russia for not coming to COP26, as he bids Glasgow farewell / FT (paywall)
Biden says China made ‘mistake’ skipping G-20, COP26 summits / Bloomberg (paywall)
China’s U.N. ambassador slams ’empty slogans’ at COP26 / Reuters

Biden’s China, Japan ambassador nominees approved by Senate
U.S. Senate committee approves Biden nominees to be ambassador to China, Japan / Reuters

3 million jobs at risk in relentless education crackdown
China’s tutoring crackdown puts over 3 million jobs at risk / Nikkei Asia (paywall)
“Private education companies shed staff as they restructure or close doors.”

U.S.-China military: China’s rapidly expanding nuclear arsenal, U.S. beefs up ops in South China Sea
China’s nuclear arsenal to swell fivefold by 2030: Pentagon / Nikkei Asia (paywall)
“Annual report to Congress warns of ability to deter Taiwan intervention”
U.S. stepping up operations in South China Sea, researchers say / SCMP (paywall)
“Think tank says the U.S. is carrying out dozens of reconnaissance flights each month and there has also been an upsurge in naval activity.”
When it comes to China, don’t call it a ‘Cold War’ / NYT (paywall)
By Joseph S. Nye Jr.: “Competition with China, though, is a three-dimensional game. And if we continue to play two-dimensional chess, we will lose.”
Needed: A military strategy for China / WSJ (paywall)
By Seth Cropsey: “The Pentagon, with its outdated policies, may not have the luxury of time when a crisis develops.”

Shaanxi Province mulls yearlong maternity leave
Babies wanted: Chinese province may offer a year of maternity leave / Reuters
China population: Province may offer year of maternity leave in bid to reverse dramatic decline in births / SCMP (paywall)
“A landlocked province in northwest China, in an effort to encourage couples to have children, is looking to sharply increase the duration of paid maternity leave to nearly one full year, putting it on par with some developed economies in Europe.”

Hong Kong looks to reopen China border
Hong Kong in talks with China to open border, report says / Bloomberg (paywall)

SOCIETY AND CULTURE:

Surviving Beijing’s comedy circuit
Hustling at the bottom of the stand-up pyramid / Sixth Tone

Trending head molds for babies
New fad in China has parents putting helmets and molds on their babies to make their heads more round / SCMP (paywall)
“Believing that a round head is more beautiful, Chinese parents are taking to social media, such as the trendsetting forum Xiaohongshu, to discuss ‘miracle’ equipment that helps ‘correct a baby’s head shape.’”

A very expensive carpet up for auction
Ming dynasty carpet that may have graced the throne valued at $5.4 million in upcoming Christie’s auction / SCMP (paywall)

Burial reforms
Elderly woman’s body dug up for cremation by government after burial without family’s consent / SCMP (paywall)
“A recent case where a woman was forcibly exhumed from her grave to be cremated has highlighted China’s controversial policy to end traditional burials.”