Links for Tuesday, September 15, 2020

WORTH THINKING ABOUT

Pieces of news or analysis that caught our eye:

It looks like ByteDance will keep majority ownership of TikTok and control over its algorithm, because the Trump administration’s concerns over precisely those two things were — surprise! — disingenuous. The Financial Times reports:

ByteDance will place TikTok’s global business in a new U.S.-headquartered company with Oracle investing as a minority shareholder…

The Chinese company will continue to collaborate with TikTok globally and will retain control of the powerful algorithm that keeps users engaged by predicting what sort of videos they will enjoy.

The FT says that Trump is likely to approve because Oracle says it will create 20,000 jobs, and because Oracle’s executives are Trump supporters. “Beijing has also shown support for the plan,” one person “with direct knowledge” also told the FT.

More on the TikTok saga, and the future of ByteDance:

• TikTok rejects Microsoft, proposes to make Oracle ‘trusted technology partner.’ Will Trump be satisfied? / The China Project
• Cramer says Trump administration will approve Oracle-TikTok deal Tuesday / CNBC
• How ByteDance’s CEO balked at selling TikTok’s U.S. business / Reuters
• ByteDance’s Chinese version of TikTok hits 600 million daily users / Reuters
• U.S. offers to exempt employees, contractors from TikTok executive order / Reuters
• China says TikTok ‘coercive possession’ shows U.S. ‘bullying’ / Bloomberg (paywall)

MORE NEWS FROM AROUND THE WORLD

BUSINESS AND TECHNOLOGY:

• Chipmaking in the age of techno-nationalism
  Nanya Technology to seek permit to supply chips to Huawei / Focus Taiwan
  China’s SMIC applies to renew license to supply Huawei: state media / Reuters
  Bleeding cash and deep in debt, chipmaker Tsinghua Unigroup sees bond prices plummet / Caixin
  Nvidia confident U.S.-China tech war won’t stop it from buying Arm / Caixin
  Pompeo says confident will be effective competitors to Huawei from Western vendors / Reuters
• Ant Financial — Alibaba’s outsize baby
  How Ant Group built a $200 billion financial empire / Rest of World
  “The tech company is looking to reshape how ordinary Chinese people send and save money.”
  See also on The China Project: Will Jack Ma’s Ant Group have the biggest IPO ever? Or listen to this TechBuzz China podcast: Ant Financial: The biggest IPO…ever?
• Alibaba considers large investment in Southeast Asia ride hailing
  Alibaba is in talks to invest $3 billion in grab / Bloomberg (porous paywall)
  “The deal may represent one of Alibaba’s biggest bets on Southeast Asia since its first investment in Lazada in 2016.”
• World Trade Organization criticizes Trump tariffs
  U.S. tariffs on China ruled to be illegal by world trade body / AP
  “The WTO panel ruled that the U.S. measures violated long-standing international trade rules because they only applied to products from China, and that Washington had not adequately substantiated its claim that the Chinese products hit with the extra duties had benefited from the allegedly unfair Chinese practices.”
  Defiant USTR says WTO China tariff ruling shows trade body’s inadequacy / Reuters
  China hopes U.S will respect WTO ruling, uphold multilateral trading system / Reuters
• Investment in Singapore
  Tencent becomes latest Chinese firm to invest in Singapore with new Southeast Asia hub / Reuters
  Related, on The China Project: Huawei and ByteDance look to Singapore as U.S. restrictions loom.
• JD looks to expand financial services
  JD.com’s fintech unit plans to spend $230 million to get second payment license / Caixin
• EU-China investment deal
  Four things to know about the comprehensive China-EU investment agreement / Caixin
  EU tells Xi that China must show investment deal worthwhile / Bloomberg (porous paywall)
• China wants American lubricant, whey, and fish meal
  China extends tariff exemptions for 16 U.S. products / Reuters

SCIENCE, HEALTH, AND THE ENVIRONMENT:

• Lockdown in Yunnan border city after two imported cases
  China locks down city, plans to test 200,000 after two COVID-19 cases found along Myanmar border / Caixin (paywall)
  Chinese border city steps up coronavirus tests after Myanmar cases / Reuters
  Yunnan on alert over imported coronavirus cases / Sixth Tone
• U.A.E. authorizes Sinopharm vaccine emergency use for medical workers
  In global COVID-19 vaccine race, Chinese shot receives first foreign approval / WSJ (paywall)
• Vaccine development updates
  Chinese COVID-19 vaccine candidate becomes first nasal spray to start clinical trial / Caixin
  “The vaccine has been co-developed by [the University of Hong Kong], Fujian province’s Xiamen University as well as vaccine-maker Beijing Wantai Biological Pharmacy Enterprise Co. Ltd.”
  China coronavirus vaccine may be ready for public in November: official / Reuters
  China says no need to vaccinate entire population against COVID-19 at this stage, only frontline workers / CNN
  Low tech, high speed: Inside China’s race to a COVID-19 vaccine / Sixth Tone

POLITICS AND CURRENT AFFAIRS:

• India-China border standoff
  India says it has doubled budget for roads and bridges on China border / Reuters
  India pushes tonnes of supplies to disputed China border ahead of winter / Reuters
  India accuses China of violating pacts, militarizing border / AP
  Chinese ‘optical fiber cables in Ladakh’ signal long haul / Telegraph India
  China denies reports of troops laying cables at India border / Reuters
• U.S. and U.K. warn of arbitrary detention in China
  U.S. issues sweeping new travel warning for China, Hong Kong / AP
  Britain warns its citizens of risk of arbitrary detention in China / Reuters
  Travel warning for Hong Kong could worsen U.S.-China relations / NYT (porous paywall)
• Xinjiang and Uyghur updates
  U.S. pulls back from broad import bans for cotton, tomatoes from China’s Xinjiang / Reuters
  “Two people familiar with the Trump administration’s internal deliberations said that concerns about the broad orders and their effect on supply chains were raised by officials, including Treasury Secretary Steven Mnuchin, U.S. Trade Representative Robert Lighthizer and Agriculture Secretary Sonny Perdue.”
  Activists decry ‘genocide’ of China’s Uyghur minority: letter / Reuters
  China invites EU leaders to ‘see real situation in Xinjiang’ amid claims of Uyghur detention and abuse / SCMP
  China’s system of oppression in Xinjiang: How it developed and how to curb it / Brookings Institution
  By James Millward and Dahlia Peterson.
• Vatican-China ties
  Vatican looks to extend church leadership agreement with China despite criticism / WSJ (paywall)
  China says its relationship with the Vatican has been improving / Reuters
  Taiwan says it has Vatican assurances on China accord / Reuters
• Targeting the Taiwanese bird-watchers
  Taiwan conservationists say kicked out of global bird group in China row / Reuters
  Taiwan bird conservation group removed from global partnership / Focus Taiwan
• South China Sea
  South China Sea heats up as Indonesia shadows Chinese ship near Natuna Islands / SCMP
  China says its vessel is patrolling waters under its jurisdiction after Indonesian report / Reuters
  Indonesia to beef up patrols after China coast guard raises suspicion / Reuters
• Protests in Mongolia over Inner Mongolia language policy
  Mongolians protest visit of China diplomat as language dispute simmers / Reuters
  Context on The China Project: Ethnic Mongols protest Beijing’s push for Mandarin-only classes.
• Hong Kong updates
  ‘It is not a crime to mourn June 4’: Two dozen Hong Kong activists in court after attending banned Tiananmen Massacre vigil / HKFP
  China’s crackdown on Hong Kong is purging teachers / LA Times
  Fears of ‘brainwashing’ as Hong Kong elite school St. Paul’s to give classes on national security law / HKFP
  Pro-Beijing lawmaker denies assaulting rival during chaotic Hong Kong legislative meeting in private prosecution case / SCMP

SOCIETY AND CULTURE:

• College life on enclosed campuses during COVID-19
  Separated by fence, these Chinese students still manage to have hotpot together / What’s on Weibo
• Debate on gender ratio of teachers
  Xinhua article sparks debate on male teacher shortage / Sixth Tone
• Live-action mystery role-playing games
  China youth escape reality in ‘Whodunnit?’ role-playing boom / AFP
• Perfume brand Jo Malone cuts black actor out of its Chinese ad
  Jo Malone apologizes to John Boyega for cutting him out of Chinese ad / Guardian
  John Boyega quits perfume ambassador role over Chinese ad / AP