Links for Thursday, May 28, 2020

BUSINESS AND TECHNOLOGY:

• Prada’s May China sales rose more than 10%
  Prada CEO Patrizio Bertelli: Europe sales up in May over April / Bloomberg (porous paywall)
• Hong Kong to reopen for transiting travelers
  Hong Kong, Singapore welcome back transit travelers / Caixin
  “The two cities have both announced they’ll reopen their airports to transiting travelers come June, with Hong Kong taking the step first next Monday followed by Singapore a day later.”
• Revenue growth slows for major internet firms despite lockdown demand
  Revenue growth, R&D spending slow for China internet majors / Caixin

Between January and April, the Chinese internet sector and related services generated combined revenue of 344.6 billion yuan ($48.1 billion), up 4.9% year-on-year, according to statistics [in Chinese] released Wednesday by the Ministry of Industry and Information Technology (MIIT). R&D spending rose 5.3% to 17.3 billion yuan [$2.4 billion]. All firms surveyed had annual revenue of more than 5 billion yuan in the previous year.

The revenue growth rate was 15.3 percentage points lower than the same period of last year, while the R&D investment growth was down by 16.1 percentage points.

• Bilibili to issue $650 million in convertible bonds
  Video streamer Bilibili plans to issue $650 million in convertible bonds / Caixin
• Kuaishou and JD.com sign partnership…  
  Livestreamer Kuaishou deepens ecommerce partnership with JD.com / Caixin
  “The two companies’ latest partnership agreement, signed Wednesday, will allow users to buy products from JD.com within the Kuaishou app.”
• …As Kuaishou launches TikTok rival in the U.S.  
  Chinese rival launches U.S. app to challenge TikTok / The Information (porous paywall)
  “Kuaishou, China’s second-biggest short video app, is bringing its battle with ByteDance to North America with the launch of a social video app called Zynn that pays users to watch. It’s quickly growing in popularity.”
• How will China’s new regulations affect Australian exporters?
  A hindrance or a help? What do China’s new ore regulations mean for Australian exporters? / ABC Australia

After close inspection, both the Government and the mining industry concluded the new iron ore regulations unveiled by Beijing were likely to actually help Australian exporters by streamlining the import process.

And while Beijing’s decision to cut coal imports will hurt the Australian industry, the consensus in Canberra is that the move is — probably — aimed at helping China’s coal miners rather than punishing Australia’s.

• How overreliance on Chinese tourists left Russian tourism vulnerable
  How Chinese tour operators wound up lost in Russia / Sixth Tone

[E]ven prior to the COVID-19 wipeout, many Chinese businesses in Russia were reliant on an unstable, policy-dependent, and fundamentally rotten business model. Any abrupt change in the business environment — whether tighter border controls, a suspension of group tours, or increased tax regulation — could have brought it crashing down.

SCIENCE, HEALTH, AND THE ENVIRONMENT:

• Sichuan invests in technology to improve water quality
  Modern Water wins equipment order from Sichuan province in China / Stock Market Wire
  “‘[T]he new PDV units, which measure trace metals in water, soil and food, will be used to improve the province’s emergency response to environmental emergencies and overcome a shortfall to provide comprehensive analysis on water quality,’ the company [said].”
• Snow leopard twins turn one
  Snow leopard twins mark 1st birthday / Shanghai Daily
  “China’s only existing captive-bred snow leopard twins marked their first birthday yesterday in northwest China’s Qinghai Province.”
• Invasive moth threatens crops
  Fall armyworm tests China’s determination to cut back on pesticides / Chinadialogue

The desert locust swarms that started in East Africa this February have spread to the Middle East and South Asia – and may reach East Asia. But despite Chinese concerns about a plague of locusts, the government said [in Chinese] in early March that the real threat is a reappearance of the larvae of the fall armyworm moth. First seen [in Chinese] in China in 2019, this insect breeds faster than locusts and is now well-established in the country, appearing in large numbers in the south and southwest.

POLITICS AND CURRENT AFFAIRS:

• U.S. House passes Uyghur Human Rights Bill
  House passes Uyghur Human Rights Bill, prodding Trump to punish China / NYT (porous paywall)

The House voted overwhelmingly on Wednesday to pass a measure that would punish top Chinese officials for detaining more than one million Muslims in internment camps [porous paywalls], sending President Trump a bill intended to force him to take a more aggressive stand on human rights abuses in China.

The bipartisan vote, 413 to 1, cleared legislation that would compel Mr. Trump to impose sanctions on Chén Quánguó 陈全国, the top Communist Party official in Xinjiang, where the camps are, and mandate that the director of national intelligence produce a list of Chinese companies involved in the construction and operation of the camps.

• Beijing approves Hong Kong security plan…  
  全国人大高票通过关于建立健全香港特别行政区维护国家安全的法律制度和执行机制的决定 / Xinhua
  Emily Feng summarizes on Twitter: “Full text of proposal for HK National Security Law now out. China’s legislature has approved its standing committee to draft final law. Upon first glance, it’ll be even broader than expected, prohibiting all ‘acts and activities’ against national security.”
  Hong Kong security plan is approved, tightening China’s hold / NYT (porous paywall)
  “China officially has the broad power to quash unrest in Hong Kong, as the country’s legislature on Thursday nearly unanimously approved a plan to suppress subversion, secession, terrorism and seemingly any acts that might threaten national security in the semiautonomous city.”
  Antony Dapiran on Twitter: “Result was a foregone conclusion. (Surprising it was not unanimous.) Remember this is just the decision to authorize NPC Standing Committee to go ahead & draft the law & apply it to HK by promulgation. Process will take ~2 months. Next step is to see actual draft proposed law.”
  AFP’s Xinqi Su asks on Twitter: “Who is the one who did not press the voting button by the way?”
  Pro-democracy activist Joshua Wong 黃之鋒 (Huáng Zhīfēng) in a thread on Twitter: “1/ Despite foreign doubts and #Hongkongers’ criticism, #NPC just passed #nationalsecuritylegislation. #China unilaterally imposes the law with its legislation entirely under a black box, with no legislative scrutiny and public consultation.”
• …As the Hong Kong government responds  
  林郑月娥上街签名，支持国安立法 / Global Times
  “Carrie Lam 林鄭月娥 [Lín Zhèng Yuè’é] signs her name on the street in support of the national security legislation.”
  CNN’s Ivan Weston on Twitter: “In an exclusive CNN interview, Hong Kong’s 2nd highest ranking official Matthew Cheung [張建宗 Zhāng Jiànzōng] tries to reassure investors & foreign governments that a new national security law drafted by Beijing would only target suspected ‘terrorists and separatists’ in the former British colony.”
  Channel NewsAsia’s Wei Du 杜唯 asks on Twitter: “I have a question: if Cheung has no idea what the law will say, how does he know 99.9% of people won’t be affected?”
• Hong Kong billionaire defends security law
  Tycoon Li Ka Shing defends China’s proposed law as its sovereign right / Bloomberg via Straits Times
  “‘It is within each and every nation’s sovereign right to address its national security concerns,’ Mr Li [李嘉誠 Lǐ Jiāchéng], 91, said in a text message sent by his representatives yesterday.”
• U.S., U.K., Canada, and Australia issue a joint statement on Hong Kong…  
  Joint statement on Hong Kong / U.S. Department of State
  “China’s decision to impose a new national security law on Hong Kong lies in direct conflict with its international obligations under the principles of the legally-binding, UN-registered Sino-British Joint Declaration.”
• …As the U.K. says it could extend Hongkongers’ visa rights  
  James Landale on Twitter: “Breaking: @DominicRaab tells China that unless it suspends plans for new security laws in Hong Kong, the U.K. will give greater visa rights to 300,000+ British National (Overseas) passport holders. Current right to 6 mths in Britain without visa would be increased to 12 mths.”
  James Palmer responds on Twitter: “this is a step forward, but they should just be full citizens.”
• Hong Kong no longer a safe haven for China’s rich?
  China’s rich skirting Hong Kong to seek asset safety elsewhere / Reuters
  Reuters’ Vincent Lee in a thread on Twitter: “Reuters: He said his bank had begun receiving inquiries from Chinese high net worth individuals (HNIs) about opening accounts outside Hong Kong. ‘Chinese HNIs like the law from the perspective of their love for the Chinese flag, but not from their asset protection perspective.’”
• Trump signs executive order targeting social media
  Trump signs executive order aimed at regulating social media as U.S. death toll passes 101,000 / Guardian

Trump added that he would hold a separate press conference on China tomorrow, when he will likely again accuse Twitter of helping Beijing spread false information about coronavirus.

After Twitter added a fact-checking label to two of Trump’s tweets about vote by mail, the platform similarly labeled tweets from a senior Chinese official who claimed the virus may have originated in the United States.

• Emily Birnbaum on Twitter: “it is fascinating that the draft executive order explicitly calls out each platform’s ties to China as justification for taking on Section 230.”
• Fake social media accounts praise China’s COVID-19 response
  Inside the pro-China network targeting the U.S. / BBC

Hundreds of fake or hijacked social media accounts have been pushing pro-Chinese government messages about the coronavirus pandemic on Facebook, Twitter and YouTube, a BBC investigation has found.

The network of more than 1,200 accounts has been amplifying negative messages about those critical of China’s handling of the outbreak, while praising Beijing’s response.

Although there is no definitive evidence that this network is linked to the Chinese government, it does display features similar to a state-backed information operation originating in China that Facebook and Twitter removed last year.

• Global Times hits out at U.S. sanctions
  美国挺着病身吹“制裁中国”冲锋号 / Global Times
  “The U.S. is trumpeting ‘sanctions against China’ despite its own illness.”
• National People’s Congress holds its closing meeting
  China’s top legislature holds closing meeting of annual session / Xinhua
  Two Sessions offer clues on next 5-year plan / Xinhua via Shanghai Daily
  从人民中汲取磅礴力量——习近平总书记同出席2020年全国两会人大代表、政协委员共商国是纪实 / Xinhua
  “Drawing strength from the people — General Secretary Xí Jìnpíng 习近平 discussed state affairs with National People’s Congress deputies and members of the Political Consultative Conference.”
  Young lawmakers introduce first-hand two sessions information via short video platforms / Global Times
• India responds to Trump’s offer to mediate China-India border tensions
  Brookings Institute’s Tanvi Madan in a thread on Twitter: “@MEAIndia response to questions on President Trump’s offer to mediate between India and China: ‘See, as I have told you, we are engaged with the Chinese side to peacefully resolve this issue. You can move to the next set of questions.’ 5/”
  Context: New India-China border standoff: Is it ‘stable and under control’?
• Australian “dossier” linking COVID-19 to Wuhan lab debunked
  Coronavirus ‘dossier’ was a basic timeline of facts handed out by U.S. State Department with no new evidence / ABC Australia
  The Washington Post’s Beijing bureau chief Anna Fifield on Twitter: “Remember that ‘big scoop’ from Australia’s Daily Telegraph about how the coronavirus came from the Wuhan lab? Well it came from a State Department background document known as a ‘non-paper’ and contained no actual evidence, @abcnews reports.”
• Canadian Huawei ruling threatens canola feud resolution
  Huawei ruling crushes hope China may end canola feud with Canada / Bloomberg (porous paywall)
  “Optimism that China may end its yearlong trade spat with Canada over canola imports is fading after a court ruling against a Huawei Technologies Co. executive [Mèng Wǎnzhōu 孟晚舟] in Vancouver.”
  Context: Meng Wanzhou: Huawei executive suffers U.S. extradition blow.
• China’s security presence in Central Asia is growing — new report
  In Russia’s shadow: China’s rising security presence in Central Asia / Wilson Center

SOCIETY AND CULTURE:

• The architect helping combat climate change
  Meet the architect whose revolutionary “sponge cities” are helping combat climate change / Radii

In an era of unpredictable weather and increasing flooding around the globe, urgent solutions are needed. Landscape architect Dr. Yú Kǒngjiān 俞孔坚 thinks cities can do a better job of being less at odds with nature and their surrounding environments. In response, he advocates the creation of “sponge cities”…designed to retain, clean, and reuse stormwater.

• Divorce law change stirs debate
  Izzy 穆戈 on Twitter: “China just passed its first civic code in history. One change in the marriage and family section is getting a ton of attention on Weibo: a mandatory 30-day cool-off period for a mutual divorce. Meanwhile, no one seems to bat an eye that one/two-child policy-related stuff is gone.”