Links for Friday, July 17, 2020

BUSINESS AND TECHNOLOGY:

• U.S. expands Huawei restrictions
  U.S. extends clampdown on Huawei with FCC list of suspect gear / Bloomberg via Caixin (paywall)
  “The U.S. Federal Communications Commission began the process of drawing up a list of telecommunications equipment deemed to pose a security risk as the agency continued efforts to limit the reach of Huawei Technologies Co. and ZTE Corp.”
  U.S. to restrict visas for employees of Huawei, other Chinese tech firms / SCMP
• TikTok mired in controversy
  TikTok fined $155,000 for mishandling user data in South Korea / Caixin (paywall)
  “Just two weeks after being removed from Indian app stores, ByteDance-owned TikTok took another hit in South Korea, where the Korea Communications Commission (KCC) fined the viral short video app 186 million won ($155,000) for mishandling user data, according to a report by Yonhap News Agency on Wednesday.”
  Some K-Pop stars’ TikTok China accounts blocked from view / Reuters
  TikTok leaving ByteDance is ‘better solution than banning,’ White House adviser says / Caixin
  “A top White House official has provided a possible option for embattled TikTok to avoid being banned in the U.S.: break away from its Chinese owner ByteDance and operate as an American company.”
  TikTok expected to operate as a U.S. company, White House adviser says / Reuters
  Trump administration likely to take action on TikTok, WeChat risks ‘in weeks,’ official says / Reuters via SCMP
  TikTok enlists army of lobbyists as suspicions over China ties grow / NYT (porous paywall)
  “The social media company, which one year ago had virtually no lobbying presence in the nation’s capital, has hired a small army of more than 35 lobbyists to work on its behalf, including one with deep ties to President Trump.”
• Econ indicators: Fiscal revenue and SOE profits
  China finance ministry says Jan-June fiscal revenues fell 10.8% year-on-year / Reuters
  China’s fiscal revenue up 3.2% in June as economy rebounds / Reuters
  Central state-owned enterprises see 37.7% drop in profits in first half of year / Caixin (paywall)
• China’s sell-off has ripple effects
  Global stocks slide after big sell-off in China / FT (paywall)
  “US and European stocks followed Asia’s bourses lower on Thursday after China’s CSI 300 index recorded its worst day since February… On Wall Street, the tech-weighted Nasdaq Composite closed 0.7 percent lower and the S&P 500 retreated 0.3 percent following two straight days of gains.”
• Where private tycoons fail, the state steps in
  China seizes billion-dollar financial firms controlled by mysterious tycoon / Caixin (paywall)
  “The Chinese government has taken over nine financial companies formerly controlled by the mysterious fallen tycoon Xiāo Jiànhuá 肖建华 for their alleged illegalities, in an unusually aggressive move to tackle risks stemming from his once free-wheeling financial empire.”
  Chinese state seizes control of 9 insurers, trusts and brokers / FT (paywall)
  “Chinese regulators have seized control of nine troubled insurers, trust companies and securities brokers, in a sign that the government is still grappling to contain hidden risks within the financial sector.”
• News aggregator Qutoutiao banned over “dubious” ads
  U.S.-listed Qutoutiao dropped from app stores after illegal ad claim / Caixin (paywall)
  “Chinese news aggregator Qutoutiao has been removed from domestic Android app stores after it was accused of allowing dubious ads on its platform in a high-profile annual consumer rights show from the national broadcaster.”
• Capital-starved small banks get replenished
  18 regions get nod to help smaller funding-starved banks replenish capital / Caixin (paywall)
  “China has allowed 18 provincial-level governments to recapitalize some small and midsize banks with money raised from the sale of special-purpose bonds (SPBs), a banking official said, in an effort to boost credit to businesses amid the COVID-19 pandemic.”
• Danone seeks growth in supplementing Chinese growth
  Danone beefs up specialized nutrition business in China / Reuters
  “French food group Danone said on Thursday it would spend 100 million euros ($114.08 million) to strengthen its Specialized Nutrition business in China, as it bets on the Chinese market as a source of growth.”
• China fulfills (some) trade deal commitments
  China buys more U.S. soybeans / Reuters
  “China booked deals to buy 522,000 tonnes of soybeans, the U.S. Agriculture Department said on Thursday, the latest in a string of purchases by the world’s top buyer of U.S. agricultural products.”
• Biopharma boost
  Biopharma firm Sunshine Guojian seeks to raise $248 million in STAR market IPO / Deal Street Asia via Caixin (paywall)
  “Biopharmaceuticals firm Sunshine Guojian Pharmaceutical (Shanghai) Co. Ltd. has kicked off the subscription exercise for its IPO, targeting to raise 1.7 billion yuan ($248 million) on the Nasdaq-style STAR Market of the Shanghai Stock Exchange (SSE), according to a company filing.”
• Swimsuit recession
  China’s swimwear capital can’t wait for you to go back to the beach / NYT (porous paywall)
  “Just as China started getting back to work, the epidemic became a pandemic, and the rest of the world began shutting down. Demand for Xingcheng’s swimsuits dried up.”
• Canada lends its trust to Chinese X-ray security machines
  Chinese government-owned firm wins $6.8M contract to supply security equipment to Canada’s embassies / National Post
  “The contract for conveyor-style X-ray machines was awarded to Beijing-based Nuctech Company, a company owned by the Chinese government and founded by the son of former General Secretary of the Chinese Communist Party, Hú Jǐntāo 胡锦涛.”
• Mass flooding hits the porcelain industry
  Misfortune piles up as floods hit China’s delicate porcelain industry / SCMP
  “The floodwaters arrived so quickly in China’s ‘porcelain capital’ Jingdezhen that Yu Ciqiong had just hours to save her business. As soon as she heard the city might be inundated, Yu dashed to the factory while her husband rushed to their shop to shore up its defenses.”

SCIENCE, HEALTH, AND THE ENVIRONMENT:

• The race to beat COVID
  China’s Sinopharm begins late stage trial of COVID-19 vaccine in UAE / Reuters
  Chinese team uses AI and CAT scans to try to detect COVID-19 earlier / SCMP
  “Chinese scientists have developed an AI tool to read CAT scans and find Covid-19 cases missed by swab tests, potentially leading to earlier detection of the disease.”
  Hong Kong third wave: Fresh care home cluster feared as Hong Kong ‘records dozens more Covid-19 cases’ / SCMP
  In coronavirus vaccine race, China strays from the official paths / NYT (porous paywall)
  “The employees at PetroChina could use one of two vaccines ‘for emergency use’ to protect themselves when working overseas as part of China’s ambitious infrastructure program… They would effectively be guinea pigs for testing the unproven vaccines outside the official clinical trials.”
• China’s rapidly expanding space program
  China launches 3 satellites on 2 rockets in 3 days / Space

“It [the satellite] can provide high-precision remote-sensing image data for several industries including surveying and mapping, natural resources, emergency management, agriculture, ecological environment, residential construction and forestry,” [China Academy of Space Technology] said in a statement. The satellite will obtain images of China’s land “and surrounding areas.”

• U.S., China, UAE sending spacecraft to Mars starting this week / LA Times (paywall)
• Dirty rivers
  Pollution in China’s rivers threatens environment and wildlife / SCMP
  Graphics depicting China’s deteriorating rivers.
• Are China’s sea cucumbers being poisoned?
  China probes sea cucumber farms on banned insecticide report / Bloomberg (porous paywall)
  “China’s agriculture ministry has called for an investigation into reports that sea cucumber farmers have been using a highly toxic insecticide that is banned in the country.”

POLITICS AND CURRENT AFFAIRS:

• The Trump administration’s China offensive
  Barr urges U.S. companies to resist serving as ‘pawns’ for China / NYT (porous paywall)

Accusing American firms of engaging in “corporate appeasement” of the Chinese Communist Party, Attorney General William P. Barr called on the private sector on Thursday to get tougher in resisting what he portrayed as corrupting efforts by China to cheat and bully its way into taking over the global economy.

• See also, on The China Project last October: Pence says NBA censorship is ‘un-American,’ but denies decoupling with China
  As Trump attacks, China sees a worrying trend for its future / ABC
  U.S. imposes visa restrictions on certain employees of Chinese technology companies that abuse human rights / U.S. Department of State
  FBI director unleashes on China in speech / CNN
• Hong Kong government targets Taiwan officials
  Hong Kong demands Taiwan officials sign ‘one China’ document for visa renewal, source says / Reuters
  “Taiwanese officials in Hong Kong have been told their visas will not be renewed unless they sign a document supporting Beijing’s claim to Taiwan under its ‘one China’ policy…”
  Taiwan official leaves Hong Kong after refusing to sign ‘One China’ statement – report / HKFP
  “According to an exclusive report (in Chinese) by Taiwan-based online news outlet Up Media, local authorities asked [Taiwan’s top acting representative in Hong Kong, Kao Ming-tsun Gāo Míngcūn 高銘村], to sign an affidavit expressing support for the ‘One China’ policy for his recent visa extension application.”
  Head of Taiwan’s Hong Kong office, two colleagues forced to leave after refusing to sign document supporting ‘one-China’ principle / SCMP
• Chief Executive Carrie Lam warns of “deceitful thoughts” on social media
  Hong Kong’s Carrie Lam says social media ‘harmful’ to students, expresses concern over arrest of 3,000 youngsters / HKFP
  “Chief Executive Carrie Lam [林鄭月娥 Lín Zhèng Yuè’é] told Hong Kong Open TV…that social media had an impact: ‘Students spend hours every day receiving information through online social media. If someone makes use of social media to promote their deceitful thoughts, it will be very influential.’”
• Mounting tensions in the South China Sea
  U.S. aircraft carriers return to South China Sea amid rising tensions / Reuters
  “For the second time in two weeks, the United States has deployed two aircraft carriers to the South China Sea, the U.S. Navy said on Friday, as China and the United States accuse each other of stoking tensions in the region.”
  Australia to continue to support freedom of navigation in South China sea, PM says / Reuters
  US Air Force surveillance plane spotted off south coast of China, think tank says / SCMP
• China’s embrace of “wolf warrior” foreign policy
  The end of China’s foreign policy restraint? / Foreign Affairs

In the months since the pandemic first engulfed the world, China’s government has engaged in an unprecedented diplomatic offensive on virtually every foreign policy front. It has tightened its grip over Hong Kong, ratcheted up tensions in the South China Sea, unleashed a diplomatic pressure campaign against Australia, used fatal force in a border dispute with India, and grown more vocal in its criticism of Western liberal democracies.

• Op-ed: Beijing’s aggressive nationalism is a strategic blunder
  Beijing’s self-defeating nationalism / Foreign Affairs
  Jessica Chen Weiss, associate professor of government at Cornell University, writes of China’s “wolf warrior” diplomacy:

Over the long term, nationalism will prove even more of a hindrance to Beijing’s ambitions, since it undermines Chinese efforts to attract international support and show global leadership.

• India seeks verification of Chinese disengagement
  India says needs to verify troop disengagement with China / Reuters
• A lifeboat for unemployed Yangtze River fishers
  China promises help for 300,000 people hit by Yangtze River fishing ban / SCMP
  “The Chinese government has promised to help 300,000 people in the fishing industry find new jobs after banning fishing in the Yangtze River at the start of the year in a bid to protect its biodiversity and dwindling stocks.”
• Anti-corruption official could see a politburo promotion
  Chinese official leading security purge ‘may be on fast track to promotion,’ analysts say / SCMP
  “The security official [Chén Yīxīn 陈一新] leading a campaign to purge ‘corrupt elements’ from China’s law enforcement agencies may be in line for a fast rise up the political ladder, according to observers.”
• Backlash to China’s ASEAN encroachment
  Chinese-backed copper exploration plans in Myanmar rekindle fears / Radio Free Asia
  “The recent approval of plans by a Chinese-backed mining firm to explore a vast swathe of northwestern Myanmar for copper has alarmed residents who fear losing their farms in a repeat of earlier bitter clashes over land rights, pollution, and compensation that gripped the region.”
  Indonesian students continue protests against Chinese workers / SCMP
  “Indonesian students on the country’s eastern island of Sulawesi have kept up their protests against mainland Chinese workers, demonstrating late into Tuesday night against what they see as jobs being stolen from locals.”
• Op-ed: The personal costs of power politics
  Kicked out of China, and other real-life costs of a geopolitical meltdown / NYT (porous paywall)
  Ian Johnson, a Pulitzer Prize–winning journalist recently expelled from China over geopolitical tensions, reflects on the loss of human connection that comes with decoupling:

Taken individually, stories of severed friendships and strained family ties seem insignificant… Yet cumulatively these small wounds change how all of us experience the world, forming a collective trauma over the loss of an optimistic era dating back several decades, when the world seemed to be opening up, however imperfectly.

• Murder in the Mojave
  Two men charged in $2-million kidnapping of luxury car dealer whose body was found in the Mojave desert / LA Times (paywall)
  The victim was Ruochen “Tony” Liao, a “Chinese national who sold high-end cars in Southern California.”
• A new Foreign Ministry spokesperson
  Former ambassador tapped as spokesperson for China’s foreign ministry / Caixin (paywall)
  “[New FM spokesperson Wáng Wénbīn 王文彬], 49, served as China’s top diplomat in [Tunisia] for two years. Prior to his ambassadorship, he worked at the ministry’s policy planning department for eight years, including five years as a deputy director from 2013 to 2018. He also worked at China’s cabinet, the State Council, for three years.”

SOCIETY AND CULTURE:

• For India’s TikTok stars, the sky is falling
  ‘TikTok changed my life’: India’s ban on Chinese app leaves video makers stunned / NPR
  “In India, TikTok isn’t just a teen craze. It’s a livelihood for some people. It has given birth to new social media celebrities, many of them working-class folks…”
  Life in India after TikTok / TechNode
• New TikTok trend gives Chinese influencers a boost
  TikToks of Chinese models and influencers street fashion / Buzzfeed
  A new TikTok trend of filming candid Chinese street fashion is more coordinated than you think.
• Promoting sex ed in the conservative countryside
  In rural China, schools tackle a new subject: Sex ed / Sixth Tone
  “Sex education has long been neglected by schools across China, but the problem is far worse in rural areas. Lower local living standards, traditional social attitudes, demographic dislocation, and a lack of educational resources have made it difficult for teachers to introduce a more comprehensive curriculum.”
• How surrogacy advances LGBT rights
  How grandkids are changing China’s LGBT family dynamics / Sixth Tone
  “Conservative cultural expectations and patriarchal norms dictating children to carry on the family line have long been the main source of pressure on China’s gay community, including those living outside China’s borders.”
• China’s government and netizens take issue with BLM
  “Fake” and “hypocritical” – Western anti-racism movements criticized on Weibo / What’s on Weibo
  “The way the news is reported and discussed in China by state media and web users is often part of larger narratives about China and its current relations within the international community. But it’s not just politics; cultural context also greatly matters when it comes to how the anti-racism movement in the Floyd aftermath is perceived in the PRC.”
• Han Qin’s views from above
  The color of distance / NeoCha
  “Sapphires, ocean tides, twilight skies, and the murky depths of a jumbled dream — these were the visuals that came to mind when I first saw the cyanotype prints of Chinese artist Hán Qìn 韩沁.”