Links for Monday, June 8, 2020

BUSINESS AND TECHNOLOGY

• U.S. takes mask manufacturer to court
  U.S. files charges against Chinese N95 mask maker / WSJ (paywall)
  “Federal prosecutors charged a Chinese manufacturer [King Year Printing and Packaging] with exporting nearly a half million masks to the U.S. that falsely purported to be N95 respirators, saying the subpar products could have put health-care workers at risk amid the coronavirus pandemic.”
• ByteDance strips China employees of access to TikTok
  ByteDance cuts domestic engineers’ data access to TikTok, other overseas products / PingWest

According to the sources, the new internal policy means that those employees who are currently in China, working on apps and services for the home market, are now largely stripped of access to “sensitive data” of ByteDance’s slew of overseas products, including but not limited to TikTok…

This is the latest move in the direction ByteDance has been on for more than a year, erecting administrative and technical firewalls between its China and global operations, so that not only management can be streamlined, but the public’s privacy and geopolitics-based concerns could also be better addressed, and regulatory risks minimized.

• May exports contract…  
  China May exports slip back into contraction, imports worst in 4 years / Reuters via CNBC
  “Overseas shipments in May fell 3.3% from a year earlier, after a surprising 3.5% gain in April, customs data showed on Sunday. That compared with a 7% drop forecast in a Reuters poll.”
  Scholar Michael Pettis in a thread on Twitter: “China’s exports on May fell by 3.3%, a lot less than expected, while its imports fell more than expected by 16.7%, leaving it with one of its largest monthly surpluses ever, $63 billion, or 5.3% of GDP. I don’t think we should have been surprised.”
• …As economists express concern over unemployment
  China’s jobs rebound doesn’t appear as robust as the government claims / WSJ (paywall)
  “The reality on the ground appears to be worse. Many people in China have returned to work as the pathogen subsides, but anecdotal evidence and economists’ calculations suggest that China’s labor market is in worse shape than official government data show.”
  China needs GDP growth of about 3% in 2020 to meet job goals, analysts say / SCMP
  “Though China has not set an economic growth target for 2020, analysts [Zhū Mín 朱民, former deputy managing director of the International Monetary Fund] say Beijing will need to ensure a growth rate of about 3% to steady the economy and achieve its employment goals.”
• Car sales rose in May…  
  China monthly car sales rise for first time in almost a year / Bloomberg (porous paywall)
  “Retail sales of cars, SUVs and multiple-purpose vehicles increased 1.9% from a year earlier to 1.64 million units in May, the China Passenger Car Association said Monday. That’s the first gain since June 2019.”
  Tesla China sold 11,095 Model 3 vehicles in May, triple April’s volume: CPCA / Reuters
• …While Didi ride-hailing services return to pre-COVID-19 levels
  Didi Chuxing CEO says ride sharing orders recover to pre-pandemic levels / Reuters
• Cooper imports drop…
  China’s copper imports drop as overseas lockdowns tighten supply / Bloomberg (porous paywall)
• …But Brazilian soybean imports surge  
  China’s soybean imports surged in may as buyers look to Brazil / Bloomberg (porous paywall)
  “Soybean imports by China rose 27% in May from a year earlier, after crushers increased purchases from Brazil to take advantage of cheap supplies amid strong crush margins.”
• Hongkongers rush to open offshore accounts
  Hong Kong residents rush for offshore bank accounts on China law worries: sources / Reuters
  “Banks including HSBC, Standard Chartered and Citigroup have seen a spike in enquiries from Hong Kong residents about opening offshore accounts amid concerns stemming from China’s decision to impose a national security law on the city, five people said.”
  Context on The China Project: Beijing to deliver death blow to ‘one country, two systems’ with Hong Kong law.
• Battery behemoth develops long-life electric vehicle battery
  A million-mile battery from China could power your electric car / Bloomberg (porous paywall)

Contemporary Amperex Technology Co. Ltd. is ready to produce a battery that lasts 16 years and 2 million kilometers (1.24 million miles), Chairman Zēng Yùqún 曾毓群 said in an interview at company headquarters in Ningde, southeastern China. Warranties on batteries currently used in electric cars cover about 150,000 miles or eight years, according to BloombergNEF.

• Chinese beauty brands see shares soar
  Chinese cosmetic brands see rally despite global beauty downturn / Bloomberg (porous paywall)
  “Yet low-cost, online-savvy local beauty brands in China [such as Hangzhou-based Proya Cosmetics Co., which has soared 88% this year] have seen their shares rally as investors spy an opportunity for the home-grown outfits to take market share amid the crisis.”
• Internet giant lists in Hong Kong
  NetEase prices its $2.7 billion listing in Hong Kong with shares to start trading on June 11 / CNBC
• South China Morning Post’s Q1 revenue plunges
  Alibaba-backed South China Morning Post saw revenue drop 50% in first quarter / Bloomberg (porous paywall)
• Ericsson’s China assets take a hit
  Ericsson to take $109 million hit as China assets written down / Bloomberg (porous paywall)
• Huawei launches U.K. campaign, HSBC warns against ban
  Huawei takes out several full-page ads in U.K. newspapers as government reviews its 5G role / CNBC

Huawei has bought full-page adverts in several British newspapers [including The Guardian, Daily Telegraph, Times, Mirror, Sun and Daily Mail ] in an effort to push back on fears over its role in the country’s deployment of 5G.

“For nearly 20 years, we’ve supplied the U.K.’s mobile and broadband companies with 3G and 4G,” Huawei says in the ad. “But some now question our role in helping Britain lead the way in 5G.”

• HSBC warns it could face reprisals in China if U.K. bans Huawei equipment: Telegraph / Reuters
  “HSBC Holdings Plc Chairman Mark Tucker has warned Britain against a ban on networking equipment made by Huawei Technologies Co Ltd, claiming the bank could face reprisals in China, the Telegraph reported on Saturday.”
  Context: Boris Johnson forced to reduce Huawei’s role in U.K.’s 5G networks.
• Homemade meal delivery app shuts down
  Homemade food platform Home Cook is shutting down / TechNode
  “Home Cook’s collapse highlights the downfall of a once-popular fad, China’s homemade meal delivery apps, which promised to make home cooks into entrepreneurs from their kitchens.”
• Lhasa data center pilot goes live
  Tibet to become China’s data gateway to South Asia / TechCrunch

A sprawling 645,000-square-meter data facility is going up on the top of the world to power data exchange between China and its neighboring countries in South Asia.

The cloud computing and data center, perched on the plateau city Lhasa, the capital of Tibet, and developed by private tech firm Ningsuan Technologies, has entered pilot operation as it announced the completion of the first construction phase, China’s state news agency Xinhua reported (in Chinese) on Sunday… 

The plateau is now a bridge for China to South Asia under the Belt and Road Initiative (BRI), Beijing’s ambitious global infrastructure project.

• Workforce solutions firm files for U.S. IPO
  Chinese workforce solutions provider Quhuo files for U.S. IPO / Xinhua

SCIENCE, HEALTH, AND THE ENVIRONMENT:

• WHO and FDA revise stances on masks
  Wear masks in crowded places to combat coronavirus, World Health Organisation finally advises the public / SCMP
  “After more than five months of the coronavirus pandemic, the World Health Organisation is advising the public to wear masks on public transport and in crowded areas.”
  F.D.A. says some masks made in China shouldn’t be reused / NYT (porous paywall)
  “The agency [the U.S. Food and Drug Administration] is revising its rules, saying some N95 masks mainly used by health care workers and emergency responders cannot undergo decontamination for further use.”
• Yunnan creek project put on hold
  Creek work halted at China’s Erhai Lake in win for environmentalists / SCMP

A controversial project aimed at improving the water quality of Erhai Lake in southwest China has been put on hold following an outcry from environmentalists.

The 340 million yuan (U.S.$47.7 million) project to line five creeks that flow into the lake in Dali, Yunnan province, with cement horrified local environment groups. Bulldozers went on site in April to take advantage of the dry season but work was suspended by the end of that month after criticism on Chinese social media.

• Can China keep its wildlife trade ban promises?
  China vowed to keep wildlife off the menu, a tough promise to keep / NYT (porous paywall)
  “China has been lauded for suspending the wildlife trade, but the move has left millions of workers…in the lurch. Their economic fate [porous paywall], along with major loopholes in the government’s restrictions, are threatening to undermine China’s pledge to impose a permanent ban.”
• Flooding in Guangxi Province
  Over 300,000 affected as Guangxi sees worst flooding in years / Sixth Tone
  “As of Saturday night, one person had died and over 323,000 had been affected by the extreme weather, according [in Chinese] to the Guangxi government. Road collapses, power outages, and communications blackouts have also been reported [in Chinese] in the region.”
• Emergency COVID-19 vaccine could be ready by fall
  Coronavirus vaccine could be ready for emergency use within months, says Chinese expert Zhong Nanshan / SCMP
  “Zhong [钟南山 Zhōng Nánshān] says vaccines for use in emergencies could be ready by autumn but large-scale use could be up to two years away.”

POLITICS AND CURRENT AFFAIRS:

• Hong Kong security law fallout continues
  Chinese official suggests Hong Kong should behave to keep high autonomy beyond 2047 / Reuters
  “In rare comments on Hong Kong’s long-term future, Zhāng Xiǎomíng 张晓明, deputy director of China’s Hong Kong and Macau Affairs Office, indicated that how Hong Kong’s people behaved now in regard to the political situation would affect its post-2047 status.”
  Government workers have dual identities and should serve both Hong Kong and China, minister says / HKFP
  “Secretary for the Civil Service Patrick Nip [聶德權 Niè Déquán] has said that Hong Kong civil servants have ‘dual identities’ and must be loyal to both the SAR and China, adding that government workers must not consider issues from a ‘localist perspective’ only.”
  Government blasts students and labour groups for planning ‘meaningless, misleading’ poll on strike action / HKFP
  Like ‘anti-virus software’: Security law needed as Hong Kong protesters ‘have gone too far,’ says Beijing official / AFP via HKFP
  China’s national security law poses existential threat to Hong Kong’s universities and academic freedom / SCMP
  France tells China it still backs ‘one country, two systems’ for Hong Kong / Reuters
  Japan avoids signing U.K.-U.S. Statement on China, Kyodo says / Bloomberg (porous paywall)
  Context on The China Project: Beijing to deliver death blow to ‘one country, two systems’ with Hong Kong law.
• India-China border conflict updates
  China and India move to defuse tensions after clashes in the Himalayas / NYT (paywall)
  Ananth Krishnan on Twitter: “Weibo is now censoring the ‘China India border confrontation’ hashtag that was trending with 30 million views last week. Now, you receive a message saying ‘according to relevant laws and regulations, this post cannot be found’. Make of this what you will.”
  China mobilizes thousands of troops, armored vehicles near border with India / SCMP
  “China has mobilized thousands of paratroopers, armored vehicles and equipment in a military drill, saying they could be deployed “within hours” to the border with India in the Himalayas, where tensions have again flared.”
  Global Times on Twitter: “Chinese #PLA recently completed a large-scale maneuver to high-altitude northwestern region within a few hours, demonstrating China’s capability of quickly reinforcing border defense when necessary: experts”
  Context on The China Project: New India-China border standoff: Is it ‘stable and under control’?
• Taiwan ousts pro-China mayor
  Voters in Taiwan oust a pro-China mayor / NYT (paywall)
  “The mayor, Han Kuo-yu, had tried to win the presidency just months ago on a Beijing-friendly platform. His removal in a recall vote reflects a stunning reversal and a hardening of Taiwan’s attitude toward China.”
  Taiwan’s Tsai Ing-wen calls for reconciliation after mayoral recall vote, politician’s death / SCMP
  “Taiwan’s President Tsai Ing-wen has appealed for opposing factions on the self-ruled island to reconcile their differences following the removal of her former opponent Han Kuo-yu as mayor of Kaohsiung and the death of one of his allies.”
  Rupert Hammond-Chambers on Twitter: “Internationally, Han’s firing is mostly being shaped as a major rejection of China but I feel that’s misleading – this is mostly citizens ousting a political leader who they felt misled them about his intentions to govern Kaohsiung for a full 4-year term.”
  Taiwan opposition seeks distance from China after poll defeat / Reuters
  “The KMT, under youthful new leader Chiang [江啟臣 Jiāng Qǐchén], is reviewing its policies, especially its unpopular stance of seeking closer ties with Beijing, which has never renounced the use of force to bring Taiwan under its control.”
• Pompeo barks at China’s protest-based propaganda
  On the Chinese Communist Party’s obscene propaganda / U.S. Department of State
  “The Chinese Communist Party’s callous exploitation of the tragic death of George Floyd to justify its authoritarian denial of basic human dignity exposes its true colors yet again. As with dictatorships throughout history, no lie is too obscene, so long as it serves the Party’s lust for power.”
  US accuses China of using George Floyd death for propaganda / SCMP
  Context on The China Project: Beijing revels in scenes of U.S. unrest
• Murders in Zambia
  Bashed and burned, 3 Chinese are murdered in Zambia as racial tensions run high / CNN
  “The gruesome murder of 52-year-old Cao Guifang, the wife of the textile warehouse owner — who was in their home province of Jiangsu, in eastern China, when the attack happened — and her two male employees, Bao Junbin, 58, and Fan Minjie, 33, came at the end of a week when anti-Chinese sentiment in the Zambian capital was nearing boiling point.”
• Is China weaponizing globalization?
  China is weaponizing globalization / Foreign Policy (porous paywall)
  Matt Schrader writes:

Rather, as its wealth and strength have grown, the party’s exercise of power abroad has increasingly come to resemble the structure of inducements and coercion it uses to get its way at home. This is what should concern us: that as the party sheds its inhibitions on the coercive use of power abroad, it simultaneously wants to become more connected with the rest of the world through trade and finance.

• Will Latin America welcome increased Chinese investment?
  As U.S. turns inward, coronavirus gives China ‘opportunity of the century’ in Latin America / SCMP
  “Vacuum left by the United States gives China a chance to show leadership while further building its commercial presence and political influence.”
  Can China win over the locals in Latin America? / SCMP
  “While Beijing’s foothold in Latin America may increase as the continent heads for a deep economic crisis sparked by COVID-19, researchers urge Chinese companies to avoid previous mistakes, or else local resentment will grow.”
• Media instruction to delete soccer player’s speech leaks
  Delete Hao Haidong’s speech / China Digital Times
  Context: A Chinese soccer legend has called for the downfall of the Communist Party in shock videos.
• PLA donates COVID-19 supplies to Rwanda
  Chinese military donates COVID-19 supplies to the Rwandan military / China Africa Project (porous paywall)
  “A Chinese People’s Liberation Army cargo plane landed Wednesday to deliver $300,000 worth of COVID-19 PPE and other medical supplies. The PLA donated the material to their counterparts in the Rwandan Defense Force.”
• Global health leadership could end up fragmented
  Experts say Trump’s order to pull us out of WHO could weaken both / NPR

Some countries may follow the U.S. example and leave WHO “if they agree with the U.S. that WHO is messed up [in being too influenced by China] or is not serving their best interests, or there’s pressure on them from the U.S. to follow suit,” Wenham says. Such moves would weaken WHO’s global authority considerably.

• Chinese nationals punished for photographing a Florida naval base
  3 Chinese nationals sentenced to prison for taking photos at Florida naval base / CNN
  “Three Chinese nationals were sentenced to prison Thursday for entering a restricted area at a naval base in Key West, Florida, to take photos.”
• SCS conflict drives Manila closer to Washington
  Philippines’ move to keep US military pact reveals shift in South China Sea calculations / SCMP
  “Philippine President Rodrigo Duterte’s decision last week to retain, for now, a long-standing military pact with the United States reflects Manila’s shifting geopolitical calculations as Beijing’s assertiveness in the disputed South China Sea fuels anxieties in the region…”
• China’s COVID-19 censorship had global implications
  Coronavirus pandemic shows global consequences of China’s local censorship rules / SCMP
  “Censorship not only curtailed the response of Chinese people to the outbreak, but it may have meant that the global media was slower to wake up to the crisis…”
• Op-ed: U.S.-China cold war has started
  Yes, America is in a cold war with China / WSJ (paywall)
  Mike Gallagher, a Republican representative in the U.S. Congress, writes, “A new cold war is heating up between the U.S. and China, but America’s public intellectuals are more interested in fighting about whether to call this confrontation a ‘new cold war.’”
• G-20 deal brings debt relief for 77 nations
  China says debt payments paused for 77 nations after G-20 deal / Bloomberg (porous paywall)
  “The Chinese government said it has agreed to delay debt repayments for low-income countries, as part of the Group of 20 nations debt relief program.”
• Xinjiang official faces corruption charges
  Xinjiang official on corruption charges after ‘lavish wedding for son’ / SCMP
  “A former mayor of a city [Enwaer Tursun] in China’s far western region of Xinjiang has been expelled from the Communist Party and is expected to face trial over various alleged corruption offences stretching back more than a decade.”
• Sham trials “convict” Uighurs
  China’s Uighurs convicted in sham trials at Xinjiang camps / DW
  “In the Chinese government’s vast network of re-education camps in Xinjiang Province, the daily horror of internment was infused with monotony and boredom.”
• Chinese students await an uncertain visa ban
  Trump move to bar some Chinese students from U.S. stirs anger / LA Times

Universities are waiting for more details on the order from the Trump administration, including which Chinese universities will be covered by a visa ban, but a State Department official said a list would not be published “anytime soon.”

If the list is narrowly drawn to include only institutions directly tied to the military — analogous to West Point in the United States — the impact would be relatively small…

But Susan Shirk, a leading China expert with UC San Diego’s School of Global Policy and Strategy, said she and others fear that federal officials could include all universities that receive any funding from the Chinese military, which would potentially sweep in far more students.

• China threatens to pull funding from U.K. nuclear program
  China threatens to pull plug on new British nuclear plants / Sunday Times
  “China’s ambassador to the UK, Liu Xiaoming [刘晓明 Liú Xiǎomíng], has privately fired a warning shot at the government, telling business leaders that abandoning Huawei could undermine plans for Chinese companies to build nuclear power plants and the HS2 high-speed rail network.”
  Martin Thorley on Twitter: “1/5 Following China’s threat to pull plug on new British nuclear, I wanted to add a little detail. Hinkley Point C plant will be 1of3 case studies in my forthcoming PhD thesis. After a number of freedom of information requests & reviews I was able to access internal documents.”
• New U.S. flight protocols
  U.S. will allow Chinese passenger carriers to fly two flights per week / Reuters
  “The United States will permit Chinese passenger air carriers to operate two flights per week after Beijing said it would ease coronavirus-related restrictions to allow in more foreign carriers, the U.S. Transportation Department said on Friday.”

SOCIETY AND CULTURE:

• New law aims to protect doctors from assault
  Can new regulations stop doctors being assaulted? / Caixin
  “Starting from July 1, hospitals in the city will do mandatory security checks on everyone who enters. All main hospital corridors and sections will be under surveillance, and security personnel will put patients with a history of disorderly conduct in hospitals under watch.”
• China’s eldercare problem is only getting worse
  China’s elderly caught in clash between culture and care / SCMP
  “It is becoming increasingly challenging for family members… … because of the changes in population structure, population migration, and increased employment of women in China,” [Professor Wu Bei, from the New York University Rory Meyers College of Nursing] said.
• Henan students protest data leak at private college
  20,000 students demand answers after personal data leaked / Sixth Tone
  “…The exposed data — including the students’ names, ages, national ID numbers, majors, campus addresses, and college entrance exam registration numbers — was contained in documents labeled ‘list of returning students’ that were widely shared on social platforms WeChat and QQ without the students’ consent.”
• Emotional support animals
  China goes barking mad for therapy dogs / Sixth Tone
  “One by one, the pooches scamper into the room and perform a series of tricks: shaking hands, jumping through rings, and pretending to pray. Before long, they’ve won over the small group of children sitting in a huddle on the floor.”
• No criminal charges for juveniles after sexual assault  
  Child’s sexual assault reignites China’s criminal responsibility debate / Sixth Tone
  “Four boys who sexually assaulted a 13-year-old girl in northwestern China will not face criminal charges, and have instead been sent to a school for juvenile delinquents…”
• Teen goes viral with one-armed basketball skills
  Steph Curry gives props to one-armed Chinese teen with inspirational basketball skills / Shanghaiist
  “A 14-year-old basketball player from Guangdong province has become an overnight sensation after showing off his insane handles despite having only one arm, earning praise even from a two-time NBA MVP.”
• Toll gates in the Gobi Desert
  I collected toll in the Gobi Desert / Gushi
  “In August 2014, after Xinjiang completed construction on and inaugurated its five major expressways, the highway administration of the regional government recruited from the public for non-civil service toll collector positions for the first time.”
• An essay on cooking Chinese food at home
  Scallion Dutch baby / ChinaFile
  Shen Lu writes, “Cooking has been my daily ritual in the time of COVID-19. I skim through terrible news while thinking about my next meal. I discuss censorship on a work call while mapping out my next grocery run.”