Links for Monday, December 28, 2020

WORTH THINKING ABOUT

Pieces of news or analysis that caught our eye:

Overlooked and overhyped trends from China news in 2020 are examined in this MacroPolo piece by Damien Ma and Houze Song. Their two “overlooked” trends are:

• A surge in the number of provinces failing to meet growth targets
• The failure of U.S.-China “decoupling” to materialize

On the “overhyped” end, they think that some stories about Beijing’s renewed emphasis on self-reliance go too far, since China is becoming more enmeshed in global finance and trade, if not technology.

The Belt and Road is “down but not out,” they add, with this context on the new data showing overseas lending plummeting:

The 2019 lending collapse can be partly explained by the political upheaval at the China Development Bank (CDB), a major financier of BRI projects, when its former president was arrested on corruption charges. As a result, the CDB’s total assets only increased by 2% in 2019. But the policy bank is actively lending again, having recently committed more than $80 billion to projects under RCEP, some of which can surely be rebranded as BRI projects.

MORE NEWS FROM AROUND THE WORLD

BUSINESS AND TECHNOLOGY:

• Antitrust investigation into Alibaba and rectification for Ant Group
  Beijing launches antitrust investigation into Alibaba / FT (paywall)
  “The market regulator said it was investigating suspected monopolistic practices, including Alibaba’s tactic of forcing merchants to sell exclusively on its platform, a practice known as ‘pick one of two’ in China, among other issues.”
  China pushes Ant Group overhaul in latest crackdown on Ma / Reuters
  “China’s central bank disclosed on Sunday it had asked the country’s payments giant Ant Group Co Ltd to shake up its lending and other consumer finance operations.”
  China tells Ant to refocus on payments business / WSJ (paywall)
  The central bank “criticized Ant for its behavior toward competitors and consumers, and what regulators said was problematic corporate governance. It said the company ‘despised’ complying with regulations and engaged in regulatory arbitrage, without providing specifics.”
  Alibaba shares tumble again after Beijing tightens screws on Ant Group / WSJ (paywall)
  “Company’s Hong Kong-listed shares slumped 8% Monday, extending a Christmas Eve selloff as investors reassess regulatory risks.”
  Ant Group says it will establish working party to meet China regulator demands / Reuters
  Zhejiang banking regulator bans online deposit products / Caixin (paywall)
  China issues draft rules on bank units’ sales of wealth management products / Reuters
  Related, on The China Project: China fines three large internet companies for Anti-Monopoly Law violations.
• Two scandals in the gaming industry
  Game studio chief tied to hit sci-fi series dies after suspected poisoning by co-worker / Caixin (paywall)
  “The chairman and chief executive of Chinese game publisher Yoozoo Games Co. Ltd. died Friday after a suspected poisoning by a co-worker… Several gaming industry sources told Caixin the arrested person could be Xu Yao, a former Yoozoo director who works at the company’s motion picture subsidiary, where he was leading a project to create films based on the acclaimed ‘The Three-Body Problem’ science fiction novels.”
  Suspect detained in Chinese video game tycoon’s death, police say / Bloomberg (porous paywall)
  Founder of mobile game developer jailed for stock manipulation / Caixin (paywall)
  “Wang Yue, who started Kingnet, has been sentenced to five years in prison, though details of his crimes have not been made public.”
• New Beijing-Xiongan high-speed rail
  New high-speed rail line links Beijing and satellite city to the south / Caixin
  New railway links Beijing with “city of future” for coordinated development / Xinhua
• Boosting American imports, blocking Australian ones
  China’s soy imports to top 100 million tons as U.S. supply jumps / Bloomberg via Caixin
  “Imports from the U.S. may more than double to 36 million tons amid expectations of lower output from South America…[the] increase in purchases is also part of China’s efforts to meet its Phase One trade deal with the U.S.”
  China extends tariff exemptions for imports of some U.S. products for one year / Reuters
  China’s imports of Australian copper concentrate lowest since at least 2016 / Reuters
  Timber harvesting jobs lost in SA and Tasmania as China widens ban on Australian forest products / Australian ABC
  China-Australia relations: Lobster traders look closer to home to offset Beijing’s ban / AFP via SCMP
  Sailors stranded for months as China refuses to let ships unload Australian coal / NYT (porous paywall)
• How much will economic growth rebound?
  China GDP to grow 8.2% in 2021, the most in 10 years: Nikkei survey / Nikkei Asia (paywall)
  Chinese economy to overtake U.S. ‘by 2028’ due to COVID / BBC
• Lower drug prices
  Drugmakers agree to halve prices to secure access to China / Bloomberg (porous paywall)
  China adds 119 drugs to medicare reimbursement list / Xinhua

SCIENCE, HEALTH, AND THE ENVIRONMENT:

• Vaccine efficacy and distribution
  Brazil says Sinovac vaccine over 50% effective but delays full results / Nikkei Asia (paywall)
  “Chinese developer’s request to withhold detailed data raises questions.”
  Chinese-developed COVID-19 vaccine over 91% effective, Turkey says / Sixth Tone
  Chinese vaccines are poised to fill gap, but will they work? / AP
  Sinovac COVID shot’s efficacy uncertain despite Brazil, Turkey results / Bloomberg (porous paywall)
  With vaccines still unapproved, Chinese cities start COVID-19 inoculation drives / Sixth Tone
  Coronavirus: Sinopharm vaccine undergoing regulatory review, report says / SCMP
  Coronavirus: China plans cold-chain bridge to ship and distribute vaccines to African nations / SCMP
  Morocco acquires 65 million vaccine doses from China, UK / AP
  Philippines warns of unapproved COVID-19 shots as soldiers get jabs / Straits Times
• COVID alarm in Beijing
  Mainland China reports 21 new COVID cases vs 22 a day earlier / Reuters
  “Beijing has tightened COVID-19 curbs over concerns that China’s mass travel during the holiday period could cause a spike in cases in the capital, as it had reported locally transmitted cases for a fourth straight day on Sunday.”
  Beijing warns of potential COVID resurgence with new locally transmitted cases / Caixin (paywall)
  Coronavirus: Beijing goes into emergency mode after five new cases recorded / SCMP
  Beijing avoids draconian COVID restrictions ahead of festive season / Reuters
• COVID in Hong Kong
  Hong Kong hospital super-spreader cluster turns up 19 cases / Caixin (paywall)
  “Experts blame airborne transmission for infections among patients and staff in two wards.”
  Cracks appear in Hong Kong’s COVID-19 control measures as cases surge / Caixin (paywall)
  COVID-19: Compulsory testing after outbreak at Kowloon hospital ward, as Hong Kong sees 61 new cases & 2 deaths / HKFP

POLITICS AND CURRENT AFFAIRS:

• On the cusp of an EU-China investment deal
  EU and China poised to agree investment pact / FT (paywall)
  “During a meeting with national ambassadors in Brussels on Monday, the European Commission reported progress on talks with Beijing, including on the core remaining issue of workers’ rights in China. No objections were raised and a formal announcement by the commission that the deal has been reached is expected this week, according to EU diplomats.”
  EU-China investment deal likely this week – senior EU official / Reuters
  China will conduct talks on EU investment pact ‘at its own pace’ / Reuters
  EU governments signal support to complete China investment deal / Bloomberg
  European lobby group in China urges EU to sign Beijing deal / FT (paywall)
  Last week on The China Project: Will China and the EU clinch an investment deal soon?
• Xinjiang, Uyghurs, and Turkey extradition
  China calls U.S.-fabricated Xinjiang-related information “lie of the century” / Xinhua
  Chinese state media denies BBC reports of forced labor in Xinjiang cotton fields / SCMP
  China ratifies Turkey extradition deal in push to ‘combat terrorism,’ leading to concerns for Uyghurs who fled Xinjiang / SCMP
  Pompeo weighs genocide designation for China / Foreign Policy (paywall)
• Hong Kong
  China court hears case of activists alleged to have fled Hong Kong for Taiwan amid protests / Reuters
  UK foreign minister concerned by trial of Hong Kong fugitives in China / Reuters
  China rejects U.S. call to release Hong Kong fugitives / Reuters
  China trial of Hong Kong activists adjourned without verdict / Bloomberg (porous paywall)
  Hong Kong pro-democracy protests canceled amid huge police deployment, at least 2 arrests / HKFP
  Ex-Hong Kong lawmaker Lam Cheuk-ting arrested again over Yuen Long mob attacks / HKFP
• Taiwan
  Japan official, calling Taiwan ‘red line,’ urges Biden to ‘be strong’ / Reuters
  U.S. bolsters support for Taiwan and Tibet, angering China / Reuters
  “China expressed anger on Monday after U.S. President Donald Trump signed into law measures to further bolster support for Taiwan and Tibet, which had been included in a $2.3 trillion pandemic aid and spending package.”
  Taiwan casts net for trade deals as China blocks RCEP entry / Nikkei Asia (paywall)
• More prosecution for serious juvenile crimes
  China lowers age of criminal liability to 12 for some crimes / AP
• “Two Sessions” scheduled for next year
  China top legislature’s annual meeting to start March 5 / Caixin (paywall)
• Xi and Putin have a friendly phone call
  Xi eyes unwavering development of China-Russia partnership / Xinhua
  习近平同俄罗斯总统普京通电话 / Xinhua

SOCIETY AND CULTURE:

• More sexism in Chinese comedy
  Female comedian adds voice to sexism in comedy debate / Caixin
  “Yáng Lì 杨笠, a rising female comedian who famously said ‘Why are some men so ordinary, yet so blindly confident?’ performed a monologue on Chinese men in a comedy show on Dec. 25. She joked that men were shameless and that she would feel happier and calmer if there were no men in her life. Soon afterwards, Chí Zi 池子, a male comedian known for his vulgar jokes about women, posted on Weibo that what Yang was performing was not comedy.”
  Related:
  Famous comedian creates buzz by telling potential female partners: ‘Don’t waste our time’ / Caixin
  In China, women stand-up comedians offend their way into the mainstream / The China Project
• Christmas in Cizhong, Yunnan
  In one of China’s rare Catholic communities, Christmas is a colorful mix of customs / NPR
  Related, on The China Project: ‘Grapes of God,’ smitten: The transformation of a small Catholic village in Yunnan.
• When might Sūn Yáng 孙杨 swim again?
  Sun Yang’s eight-year doping ban is overturned / NYT (porous paywall)
  “Lawyers for Sun Yang, a three-time Olympic champion, presented evidence that one of the arbitrators who issued his eight-year suspension had made racist comments about China on social media.”
  Swimming-Sun’s doping ban referred back to CAS after appeal / Reuters