Links for Monday, December 6, 2021

BUSINESS NEWS FROM SUPCHINA A.M.:

Highlights from Chinese business media:

• Baby food brand Woxiaoya 窝小芽 raised a 1 billion yuan ($156 million) Series B.
• MAIA ACTIVE, which bills itself as a sportswear brand designed for Asian women, bagged close to 100 million yuan (~$15 million) in its Series C. The company is backed by big-name investors, including Sequoia China.
• The CEO of health beverage giant Genki Forest Táng Bīnsēn 唐彬森 conducted an interview with the tech blog LatePost in which he explains the success of his brand: “We simply dared to use quality ingredients other brands didn’t.”

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Additional business and technology links:

China to launch new state-owned rare-earths giant
China set to create new state-owned rare-earths giant / WSJ (paywall)
“The move, expected to be announced this month, would aim to strengthen China’s dominance of the global supply chain around the strategic metals.”

Why is TikTok’s algorithm so addictive?
How TikTok reads your mind / NYT (paywall)
“It’s the most successful video app in the world. Our columnist has obtained an internal company document that offers a new level of detail about how the algorithm works.”

ByteDance heads to the cloud
Amid platform crackdown, TikTok-owner ByteDance looks to the cloud / Caixin (paywall)
“Volcano Engine, a brand launched by the TikTok operator in summer, has announced a series of enterprise cloud services in a major step into a market dominated by larger rivals Alibaba and Tencent.”

China takes second place on the global arms market
Chinese weapon makers take second biggest share of global sales as industry avoids pandemic slump / SCMP (paywall)
“Five companies from China accounted for 13% of total sales by the world’s 100 biggest arms producers last year, led by the U.S., according to SIPRI.”

Global tourism won’t see China’s fat wallets return just yet
When the biggest spenders aren’t coming back any time soon / NYT (paywall)
“Even before Omicron’s arrival, China was discouraging its citizens from traveling abroad. That has had a huge impact on global tourism.”

Huobi departs China, as crypto firms vie for Shanghai
Crypto exchange to leave mainland clients with one option: Withdraw / Caixin (paywall)
“Cryptocurrency exchange Huobi Global has announced it will terminate almost all transactions for Chinese mainland clients by the end of the year to comply with domestic regulations.”
Crypto players jockey for Singapore position amid Binance clampdown / Nikkei Asia (paywall)
“Luno, Matrixport, and Cabital eye licenses to operate in the city-state.”

Biotech firm makes big bets to corner China’s GMOs
Beijing biotech firm banks on GM corn in race to be China’s Monsanto / Reuters
“As China prepares to open its $120 billion corn market to genetically modified (GM) seed, little-known Dabeinong Biotechnology hopes to reap the benefits of early biotech investments and a law keeping foreign firms on the sidelines.”

Didi’s delisting rattles the industry
China’s ride-hailing giant is delisting from the New York Stock Exchange / TechCrunch
Didi global plans to delist from New York Stock Exchange / WSJ (paywall)
China’s Didi to leave U.S. stock market amid tech crackdown / AP
Didi hunts for way to delist in New York, rocking other Chinese ADRs / WSJ (paywall)
“Ride-hailing company has asked investment banks for proposals on how Hong Kong listing, New York delisting might work.”
Didi’s drive home marks the end of an era / WSJ (paywall)
“The era of large-scale Chinese listings in the U.S. for any company with remotely sensitive data is over.”
Didi sends warning to China investors who bet worst was over / Bloomberg (paywall)
China’s Didi to delist from New York and switch to Hong Kong / FT (paywall)
China’s Didi to delist from U.S. just months after ride-hailing firm’s $4.4 billion offering / Washington Post (paywall)
Didi: Delisting shows that big data is now a strategic resource / FT (paywall)
By FT Lex: “Ride-hailing group’s switch from New York to Hong Kong highlights growing distrust over sensitive information.”
Didi’s U.S. exit shows Xi is the ultimate arbiter for China’s companies / FT (paywall)
By Tom Mitchell: “Ride-hailing app’s pivot to list in Hong Kong seen as a vindication of president’s crackdown.”

China’s digital metamorphosis
Robotics is facilitating China’s digital transformation in manufacturing and construction / TechNode
“Once known as the world’s factory, China is hoping to transition from a manufacturing hub relying on cheap labor and abundant resources to a country driven by technological innovation and automation.”

Tech firms jump on the Shanghai Data Exchange
Companies in Shanghai take first steps to trade data like stocks / Sixth Tone
“With Shanghai’s launch of a data exchange, Chinese companies are starting to join government-backed platforms that aim to create open marketplaces for data.”

Where should you put your money in the metaverse?
What are the investment opportunities in the metaverse? / TechNode
Three VCs talk about investment trends and opportunities in the metaverse.

Tencent launches new system to help the deaf make emergency calls
Tencent launches emergency services app for the deaf / Sixth Tone
“China has more than 20 million hard of hearing people. Tech giant Tencent says its new system will help them make emergency calls.”

Is China selling off a missing entrepreneur’s artworks?
Chinese art auction stokes concerns about fate of missing entrepreneur / FT (paywall)
“Sale of [a] painting owned by Duan Weihong raises possibility Beijing is forcibly disposing of her assets.”

Where do Taiwan’s chips fall under the U.S.-China trade war?
Chinese tariffs fuel boom in U.S. trade with tech exporter Taiwan / WSJ (paywall)
“Partnership expands as island and U.S. move toward formally strengthening ties despite objections from Beijing.”
Taiwan’s bargaining chips? / TechCrunch
U.S.-China tech war: Semiconductor links across Taiwan Strait faces political headwind / SCMP (paywall)

Property crisis: Developer defaults, debt mounts, and more distress
China nears a reckoning as property firms face tough deadlines / NYT (paywall)
“Evergrande and Kaisa must come up with hundreds of millions of dollars in days. Beijing sought to reassure markets overall, but signaled it might let Evergrande fail.”
Chinese developers Kaisa, Aoyuan face growing debt challenges / WSJ (paywall)
China Evergrande requests help from government after warning of new debt crunch / WSJ (paywall)
China dusts off proven playbook after evergrande default warning / Caixin (paywall)
Property sales in China fall for fifth straight month / Caixin (paywall)
Repeat Chinese defaulter Sunshine 100 misses another payment / Bloomberg (paywall)
Evergrande to include all offshore bonds in restructuring / Bloomberg (paywall)
Trust firms with billions at risk brace for Evergrande defaults / Bloomberg (paywall)
Can China’s developers just ‘lie flat’ and not repay debt? / Bloomberg (paywall)
By Shuli Ren: “With defaults looming, some property firms can still anticipate leniency from investors.”
China tries to reassure on Evergrande as default fears rise / AP
Evergrande shares tumble as new debt payment deadline looms / FT (paywall)
Evergrande chair summoned by officials after warning on debt / FT (paywall)
Chinese developers’ distress mounts despite Beijing assurances / Nikkei Asia (paywall)

Citigroup looks to reenter China
Citi applies to re-enter China investment banking market / FT (paywall)
Citigroup applies for China securities license / WSJ (paywall)
“Wall Street bank joins JPMorgan, Goldman Sachs and others in seeking a deeper foothold in the country.”

Can SAIC compete with flashy new EV startups?
In China’s EV boom, it’s too early to write off old guard / Bloomberg (paywall)
“SAIC is working to make sure its 15-year reign atop the country’s sales charts doesn’t end anytime soon.”

Kangmei fraud puts China’s independent director system in the crosshairs
Reasons to be wary of calls for abolishing China’s independent director system / Caixin (paywall)
“An undeniable fact is that, though not ideal, the independent director system is better than nothing since there are no alternative means.”

HKEX tumbles
Rout in Chinese internet stocks rolls on in Hong Kong / WSJ (paywall)
China tech index tumbles to lowest since launch as rout deepens / Bloomberg (paywall)
Hong Kong IPOs shrink as investors favour rival markets / FT (paywall)

SenseTime shoots for HK IPO
Chinese AI giant SenseTime tries for $767 million IPO in Hong Kong / Caixin (paywall)
SenseTime seeks to raise up to $768 million in Hong Kong IPO / Bloomberg (paywall)

CATL to build a new production base
EV-battery maker CATL to build $5 billion new production base / Caixin (paywall)

HK developer New World offers a 50% discount on 300 homes
Hong Kong developer to offer 300 homes at 50% discount to market price / Reuters

SCIENCE, HEALTH, AND ENVIRONMENT:

COVID-19 update: China calls on “little inoculated warriors,” Omicron tests COVID-zero policy, China vax-makers look to boost global supply
In its war on COVID-19, China calls on ‘little inoculated warriors’ / NYT (paywall)
“The country regards children as crucial in its quest for herd immunity, but some parents, worried about the vaccines’ safety, are pushing back.”
China equipped to stop Omicron if it arrives, Beijing official says / SCMP (paywall)
The dangling sword of Omicron / Caixin (paywall)
Three Chinese firms begin producing Russian vaccine to boost global supply / Caixin (paywall)
W.H.O. appeals to Chinese pharmaceutical firms to share vaccine patents / SCMP (paywall)
“WHO is looking to China and India to share patents to help boost Covid-19 jabs in developing countries.”

China produces a record-breaking amount of grain
China’s grain output hits new high in 2021 as food security drive begins to pay off / SCMP (paywall)

A mysterious cube on the Moon
China’s lunar rover Yutu 2 is on a mission to investigate mystery object on far side of the moon / SCMP (paywall)
“The Chinese lunar rover Yutu 2 is on its way to investigate a cube-shaped object, described as a ‘mystery hut,’ on the far side of the moon.”

China builds out renewables in the desert
China starts round 2 of massive desert renewable energy build / Bloomberg (paywall)
“China is starting the second round of projects in its massive desert renewable build-out just months after President Xi Jinping unveiled the scheme.”

Hongkongers live the longest lives
Why Hong Kong has the longest life expectancy in the world / Caixin (paywall)
According to recent statistics, “the age-sex specific mortality rates for both genders and all age groups has continued to fall, demonstrating that the residents of Hong Kong tend to live longer lives with the advancement of medical services.”

Parents fight to get illegal drugs for their sick kids
Mother fighting to get prosecutors to admit her innocence after buying illegal drug for sick son / Caixin (paywall)
“Li Xia (pseudonym) was one of four Chinese mothers charged with drug smuggling after they were found to be importing a controlled narcotic to treat their children’s rare form of epilepsy.”
A sick child, a lack of drugs, and a father who made his own / Sixth Tone
“With no treatment approved in China for his severely ill son, Xu Wei saw only one way to save him.”

Hong Kong puts countries with a single COVID case on the 21-day quarantine list
A single case gets you on H.K.’s 21-day quarantine list now / Bloomberg (paywall)

POLITICS AND FOREIGN AFFAIRS:

Beijing bashes U.S. boasting about democracy
China, U.S. tussle over Biden’s ‘Summit for Democracy’ / AP
China’s communists bash U.S. democracy before Biden summit / AP
China’s FM releases report on state of democracy in U.S. / Xinhua
Cartoon: U.S. “vetocracy” / Xinhua
Cartoon: Tragedy of America / Xinhua
Opinion: Biden is right that global democracy is at risk. But the threat isn’t China. / Washington Post (paywall)

Hong Kong warns the WSJ over editorial
Hong Kong issues a threat to the WSJ / WSJ (paywall)
A letter from Erick Tsang, Hong Kong’s Secretary for Constitutional and Mainland Affairs, to the WSJ: “‘We reserve the right to take necessary action,’ writes the regime, flagging an editorial for ‘incitement.’”

China looks to rein in religion
China tightens control of religion, with focus on national security / SCMP (paywall)
“Chinese President Xi Jinping has flagged a further tightening of control on religion, in a speech at a national religious work conference held in Beijing late last week.”

Who else will stand with Peng Shuai?
What major sports are still in China amid Peng Shuai scandal? / NYT (paywall)
“For now, the WTA is the only organization that has moved to distance itself from events in China as a result of its government’s handling of Peng’s allegations against a top political figure.”
Two sports organizations take different approaches to the Peng Shuai crisis / WSJ (paywall)
“The International Olympic Committee has spoken to the Chinese tennis star since her social-media account accused a Chinese official of sexual assault. The women’s tennis tour has been unable to reach her.”
Chinese sponsor distanced itself from women’s tennis before WTA pulled events from China / WSJ (paywall)
“The WTA said that iQiyi, a Netflix-like streaming platform, asked to be removed from the WTA’s website as the organization spoke out about Peng Shuai.”
U.S. backs WTA’s halt to China tennis tournaments over Peng Shuai / Bloomberg (paywall)
German athletes’ group urges IOC to investigate Peng’s safety / Reuters
Column: Women’s tennis leads lonely fight for human rights / AP
Beijing is angry at the WTA for pulling out of China. But it can’t let Chinese people know about it / CNN
How Peng Shuai is fanning the embers of China’s #MeToo movement / SCMP (paywall)
When it comes to China, sports and entertainment often tread lightly / Washington Post (paywall)

U.S. defense chief Austin warns on China
To counter China, Austin vows to shore up alliances with others in region / NYT (paywall)
“‘America is a Pacific power,’ the defense secretary said as he laid out a strategy to block efforts by China to dominate the region.”
Austin says U.S. to counter China’s ‘disturbing’ activities / Bloomberg (paywall)
Austin: Allies, innovation key to U.S. competition with China / AP
U.S. defense chief warns of China ‘rehearsals’ for attack on Taiwan / FT (paywall)
Chinese military flights near Taiwan look like ‘rehearsals’ — Pentagon chief / Reuters
U.S. defense chief concerned about China ‘rehearsal’ incursions on Taiwan / Nikkei Asia (paywall)

China’s brazen diplomacy puts U.S. ties at an inflection point
Beijing’s strategic blueprint is changing as tensions grow / Foreign Policy
“China is trying to free itself from dependence on imported technology.”
China is already exporting authoritarianism to the developing world / Nikkei Asia (paywall)
By Benjamin R. Young: “Beijing’s Party-state model offers [a] quick path to growth and stability.”
The U.S.-China relationship has entered a new phase / Foreign Policy
“Diplomacy post-Biden-Xi summit is a test of intentions.”
China loses path to ‘undisputed primacy’ in Asia as U.S. rebounds / Nikkei Asia (paywall)
“​​The U.S. has seen a reversal of fortunes since last year, when China closed the gap on American influence in Asia, according to a new report by the Lowy Institute.”
U.S. hope for Iran nuclear talks now rests on China, Russia / WSJ (paywall)
“Beijing has greater economic clout and more aggressive foreign policy than during original talks for 2015 deal.”
China’s new moon landing schedule escalates race with U.S. / Bloomberg (paywall)
“The space rivalry between the U.S. and China is suddenly heating up after a top Chinese scientist said his nation may be able to send astronauts to the moon for the first time by 2030.”
Containment can work against China, too / WSJ (paywall)
By Hal Brands: “There are important differences between Xi Jinping’s China and the Soviet Union, but the Cold War still offers clear strategic guidance for the U.S.”

U.S. eyes China over currency manipulation
No currency manipulator labels from U.S., China on watch / AP
“The Biden administration will not designate any country as a currency manipulator, but it did name China, Vietnam and Taiwan among the nations that have failed to live up to global agreements not to use their currencies to gain unfair trade advantages.”

Defense bill curbed by fights over Russia and China
Defense bill slowed by fights over Uyghur, Nord Stream 2 policy amendments / WSJ (paywall)
Uyghur bill held up as White House, industry concerns align / Politico

Comparing an imperial German atrocity with today’s Xinjiang
Opinion: Germany’s first genocide looked a lot like China’s / Foreign Policy
“The killing of the Herero [between 1904 and 1908] has disturbing parallels with the treatment of Uyghurs,” argues Konstantin McKenna.

Honduras, Slovakia, Lithuania, Solomon Islands are all caught in diplomatic rows over Taiwan
Honduras becomes new front in U.S.-China struggle over Taiwan / FT (paywall)
Taiwan, Slovakia hold talks as island firms ties with Europe / AP
Lithuania complains of trade ‘sanctions’ by China after Taiwan dispute / FT (paywall)
Keeping big brothers at bay: Why Lithuania is taking on China / SCMP (paywall)
Solomon Islands leader wins no-confidence vote after riots / AP
Solomon Islands politician wants diplomatic ties with Taiwan / AP
‘Hundreds of Chinese left homeless’ in Solomon Islands riots / SCMP (paywall)

Chinese firms seek metals and minerals in Afghanistan
Chinese mining groups scour Afghanistan for opportunities / FT (paywall)

China’s Africa policy is challenging the West’s
Chinese diplomats push back on claim Beijing is cutting back on financial support for Africa / China-Africa Project (paywall)
The French media’s view of FOCAC was decidedly negative / China-Africa Project (paywall)
China’s Africa policy is evolving. Can the West follow? / Bloomberg (paywall)
By Clara Ferreira Marques: “The West’s excessive focus on African debt has blinded it to China’s widening engagement in a region of 1.4 billion consumers.”

Dominic Barton to step down as Canada’s ambassador in Beijing
Canada’s ambassador to China steps down after Huawei crisis ends / Bloomberg (paywall)

SOCIETY AND CULTURE:

Will banning pirated films whittle down Hollywood’s fan base in China?
China’s ‘fansub’ crackdown spells trouble for Hollywood / Bloomberg (paywall)
By Adam Minter: “Sites that subtitled pirated films were clearly infringing on copyright. They were also building huge audiences for American products.”

Men are being blackmailed by naked chat scams on gay dating apps
Scammers are using dating apps to extort China’s gay men / Sixth Tone
“Experts say the lack of legal protection and stigma faced by the LGBT community have emboldened the fraudsters who exploit them.”

Chinese player Zhao Xintong, “the next big thing in Snooker”
Zhao Xintong secures another big snooker title for China / AP
“Zhao Xintong became the second Chinese player this year to capture one of snooker’s three major titles when he won the UK Championship on Sunday.”

Silver-haired gamers
China’s elderly have a new obsession: Video games / Sixth Tone
“During the pandemic, seniors have emerged as China’s fastest-growing demographic of new gamers — and gaming influencers.”