Links for Monday, November 2, 2020

WORTH THINKING ABOUT

Pieces of news or analysis that caught our eye:

Can Huawei succeed in chipmaking? The embattled telecom giant is “working on plans for a dedicated chip plant in Shanghai that would not use American technology, enabling it to secure supplies for its core telecom infrastructure business despite U.S. sanctions,” the Financial Times reports. However, the climb up the semiconductor value chain will be steep:

The fabrication plant will initially experiment with making low-end 45nm chips, a technology global leaders in chipmaking started using 15 years ago.

But Huawei wants to make more advanced 28nm chips by the end of next year, according to chip industry engineers and executives familiar with the project. Such a plan would allow Huawei to make smart TVs and other “internet of things” devices.

Huawei then aims to produce 20nm chips by late 2022, which could be used to make most of its 5G telecoms equipment and allow that business to continue even with the U.S. sanctions.

Meanwhile, Huawei’s latest phone, the Mate 40, uses a 5nm chip and has launched with significantly limited supply.

Related The China Project coverage on semiconductor challenges: How China’s would-be silicon savior became a debt-ridden disappointment.

The race to cleanly produce hydrogen and use it to power cars, airplanes, and a variety of industrial processes “could be a $700 billion business by 2050,” according to BloombergNEF. The European Union has set the most ambitious goals to produce and use hydrogen fuel, but China could become its primary challenger:

The European Union aims to push as much as 470 billion euros ($550 billion) toward hydrogen infrastructure; China, Japan and South Korea will all likely use hydrogen to achieve recent pledges to slash emissions; and Saudi Arabia plans a $5 billion hydrogen-based ammonia plant powered by renewable energy…

China’s building a giant wind and solar farm to produce hydrogen in the Inner Mongolia region. The biggest domestic oil refiner, Sinopec, said Oct. 29 it’s investing throughout the hydrogen supply chain to become “a major player,” even though it’s already the biggest local producer.

China is also the biggest and cheapest manufacturer of electrolyzers [the technology to turn water into hydrogen], taking advantage of lower costs for labor and raw materials.

“China hasn’t cracked the European market yet,” but according to the CEO of a Norwegian hydrogen energy company, it’s “only a matter of time.”

MORE NEWS FROM AROUND THE WORLD

BUSINESS AND TECHNOLOGY:

• Ant Group IPO
  Financial regulators summon Jack Ma ahead of mega listing / Caixin (paywall)
  Jack Ma (马云 Mǎ Yún), “the controlling shareholder of Ant, and Chairman Eric Jing [井贤栋 Jǐng Xiándòng] and Chief Executive Officer Simon Hu [胡晓明 Hú Xiǎomíng] were summoned for a regulatory interview by the People’s s Bank of China, the China Banking and Insurance Regulatory Commission, the Securities Regulatory Commission and the State Administration of Foreign Exchange, the regulators said Monday in a brief statement [in Chinese], without providing further details.”
  Liu He-headed meeting advises balancing fintech’s breakneck growth with stability and security / Caixin (paywall)
  “Financial stability body’s statement follows a speech by billionaire Jack Ma criticizing financial regulations in the lead up to Ant Group IPO.”
• Manufacturing sector recovering quickly; Caixin general PMI was 53.6 in October
  China manufacturing sees fastest expansion in nearly a decade / Caixin (paywall)
  “The survey, which was carried out between Oct. 9 and Oct. 21, showed that total new orders placed with goods producers increased at the sharpest pace since November 2010 last month, marking the fifth straight month of expansion.”
• Alibaba’s Singles’ Day shopping holiday
  Alibaba to kick off China’s first post-pandemic ‘Singles Day’ early / Reuters
  “The tech giant will offer two check out periods — a new one from November 1-3 and its traditional 24-hour shopping window on November 11. It says it will introduce more than 2 million new products, double the amount last year.”
  First post-pandemic ‘Double Eleven’ starts strong — and early / Sixth Tone
  Singles’ Day sales start strong on first day as China’s domestic consumption recovers from COVID-19 impact / SCMP
• Digital yuan has been used in 4 million transactions worth almost $300 million
  China’s use of digital currency accelerates in trial program / Nikkei Asia (paywall)
• Qinghai Investment struggles to pay back debt
  Embattled state conglomerate reneges on bond buyback promise as debt woes deepen / Caixin (paywall)
• U.S. IPO of beauty brand
  Chinese beauty company Yatsen files for U.S. IPO / Caixin
  A young beauty in China could turn investors’ heads / WSJ (paywall)
• China Evergrande to sell off Xinjiang investments
  Indebted China Evergrande to raise $2.2 billion from Xinjiang Guanghui stake sale / Reuters

SCIENCE, HEALTH, AND THE ENVIRONMENT:

• Worst polluting sector says it is improving emissions control
  China’s steel industry argues it’s forging a low-emission future / Caixin (paywall)
  “The transition reflects government efforts to bring 60% of steel capacity in ‘key regions’ in line with so-called ‘ultra-low’ emissions standards by the end of this year and do the same across 80% of national capacity by 2025.”
• COVID on frozen-food packaging?
  China local authority warns of coronavirus on packaging of imported Brazilian pork / Reuters
  China suspends imports from Ecuadorian company after coronavirus found on seafood packaging / Reuters
• Brazil will “of course” buy Chinese vaccine, says vice president
  Brazil will buy China COVID-19 vaccine, VP Mourão says, contradicting Bolsonaro / Reuters

POLITICS AND CURRENT AFFAIRS:

• India lost control of “about 300 square kilometers (115 square miles)” of land
  China gained ground on India during bloody summer in Himalayas / Bloomberg (porous paywall)
  Ananth Krishnan on Twitter: “Bloomberg says India has lost 250 sq km in Depsang and 50 sq km in Pangong Lake this summer…also see Vijaita Singh’s earlier story, pegs total loss in Depsang higher”
  Related The China Project coverage: India signs U.S. deal to make missiles ‘deadlier,’ with eye on Chinese border troops.
• Hong Kong arrests pro-democracy politicians, then acquits
  8th Hong Kong democrat arrested following chaotic legislative meeting, as lawmakers decry ‘political oppression’ / HKFP
  Hong Kong court clears 7 of rioting in Aug 31 protest, as justice sec. mulls appeal against social worker’s dropped charge / HKFP
  Seven acquitted of “rioting” charges in Hong Kong / Blog of Jerome A. Cohen
• Journalist visa race to the bottom
  China says will safeguard Chinese journalists’ rights after U.S. visa rule / Reuters
  “China’s foreign ministry said on Monday it will take all necessary measures to protect Chinese journalists in response to the United States delaying visa renewals for Chinese reporters.”
• Tóng Dàochí 童道驰 in anti-corruption campaign crosshairs
  Securities regulator-turned Party chief falls under graft probe / Caixin (paywall)
  “The case marks the first investigation of a senior party official…following last week’s four-day closed-door plenary session of the party’s central committee.”
• Census begins, and some worry about ID theft
  China’s 7 million enumerators begin the world’s largest census / Economist (porous paywall)
  Scammer fears as China prepares for decennial national census / Caixin
• Chinese ships near Senkaku/Diaoyu Islands for 57th day in a row
  China ships spotted near Japan islands for record number of days / Nikkei Asia (paywall)
• Prominent Trump supporters in Hong Kong and elsewhere
  Trump finds unlikely backers in prominent pro-democracy Asian figures / Guardian
  Trump has made hypocrites of Chinese dissidents and human rights activists / New Bloom Magazine
  Jimmy Lai on Twitter: “I’m one of @realDonaldTrump big fans in Asia. He’s done what he promised instead of those only talk-no-walk politicians. He’ll win landslide.”
• Democrats embrace China bashing in the Montana senate race
  In Montana senate race, both parties blame China / Foreign Policy

SOCIETY AND CULTURE:

• Sexual orientation discrimination case
  Former employee sues China Southern, alleging discrimination / AP
• Shocking domestic violence case
  Footage of man beating wife to death on Chinese street sparks outrage / Reuters
  Man beats his wife to death in street in Shanxi, bystanders look on / What’s on Weibo
• Weibo comments about the U.S. election
  Trump versus Biden – The sentiments on Chinese social media / What’s on Weibo