Links for Friday, April 16, 2021

BUSINESS AND TECHNOLOGY:

• Q1 GDP grows 18.3% compared with locked-down economy in Q1 last year
  China’s Q1 GDP grows at record pace as recovery speeds up / Reuters
  Reuters notes that “the jump in gross domestic product (GDP) undershot the 19% forecast by economists in a Reuters poll,” and Julian Evans-Pritchard, senior China economist at Capital Economics, said, “We expect quarter-on-quarter growth to remain modest during the rest of this year as the recent boom in construction and exports unwinds, pulling activity back toward trend.”
  China’s rapid GDP growth falls short of expectations / Caixin (paywall)
  “Economic growth gained momentum in the wake of a record 6.8% contraction in the first quarter last year, but was slightly slower than the median estimate of 18.8% (link in Chinese) growth in a Caixin survey of economists.”
  Has China’s $16 trillion economy fully recovered? / Reuters
  “Major economic indicators ranging from GDP, industrial production, trade, retail sales and investment suggest China’s economy has recovered to pre-COVID levels…But Beijing has been cautious about declaring a complete recovery, saying the foundations of a recovery are still not firm.”
  China’s growth surges to 18.3% but rebound leveling off / AP
  “Growth compared with 2020’s final quarter, when a recovery was under way, slowed to 0.6%, among the weakest of the past decade.”
  China growth numbers betray waning momentum / WSJ (paywall)
  “J.P. Morgan economists, pointing to that quarter-on-quarter number, lowered their full-year growth forecast to 9.3% from 9.5%.”
• Luckin Coffee gets a lucky break with $300 million investment
  Luckin Coffee to delist from Nasdaq / Nikkei Asia
  Luckin Coffee, which once hoped to beat Starbucks in China with a slick app and executives drawn from the tech industry, was delisted from the Nasdaq last year after admitting to fabricating $300 million in sales. Now the company says it has gotten a lifeline from investors, per Caixin.
  The saviors are said to be Centurium and Joy Capital, which will invest $250 million to prop up the ailing retail chain. Centurium is already Luckin’s largest shareholder.
  The company agreed to pay $180 million in fines last December to settle fraud charges from the SEC for its fraud.
• A hip new coffee chain gets an infusion of cash
  「代数学家咖啡algebraist coffee」获数千万元A轮融资，定位精品潮流咖啡品牌 / 36Kr
  China’s café wars are heating up. Algebraist Coffee, a Suzhou-based coffee chain, just completed a Series A funding round of “tens of millions of yuan” (~$3-5 million). Founded in 2015, the boutique coffee chain is known for its flavored coffees and minimalist, tech-themed shops. It directly operates more than 100 stores in several cities.
• Cleaning robot startup gets $100 million in Series B funding
  「高仙机器人」完成B+轮系列1亿美元融资，美团、腾讯入场 / Qiming
  Chinese cleaning robot startup Gaussian Robotics raised $100 million this week from major investors, including internet giants Meituan and Tencent.
  Founded in 2013, the company offers a broad array of cleaning robots for businesses. The technology involved is complex, for they cannot use GPS indoors.
• Citi quits retail banking in China as HSBC targets the rich
  Citigroup to exit consumer banking in 13 markets / BBC News
  Citigroup is closing retail banking operations in 13 countries, including China, Taiwan, Vietnam, and Australia, because it “does not have the scale” to compete in those markets.
  On the other hand, at least one foreign bank is expanding in China with a more targeted strategy: “HSBC has a new venture to seek out wealthy customers in China and is employing 3,000 bankers over the next five years.”
• Egypt demands $1 billion in compensation for Ever Given blockage
  Losses mount for Chinese companies as Egypt seizes Suez tanker / Caixin (paywall)
  “More than 80% of goods aboard the Ever Given, which blocked the Suez Canal for almost a week, are estimated to be from Chinese companies.”
• Chips and electric cars
  China becomes world’s biggest buyer of chip equipment in 2020, says SEMI / Caixin
  Geely-controlled Swedish electric carmaker Polestar raises $550 million in first external funding / Caixin
  Xpeng looks to cut reliance on foreign made chips amid global shortage / Caixin
  Electric-car maker Nio to put battery changing points in China’s largest gas station network / Caixin

SCIENCE, HEALTH, AND THE ENVIRONMENT:

• Pfizer-BioNTech vaccine to be approved in China “within the next 10 weeks”
  China plans to approve first foreign COVID-19 vaccine by July / WSJ (paywall)
  “The timetable for approval isn’t fixed, and the decision depends in part on approvals for Chinese vaccines abroad, according to some of the people familiar with the deliberations, suggesting the timing of the approval is being driven to a certain degree by politics.”
• Why are scientists creating human-monkey hybrids?
  China-U.S. scientists grow first human-monkey embryo, but is it ethical? / SCMP (paywall)
  “It’s not in bad taste, says Chinese researcher after injecting human stem cells into macaque embryos to explore possibility of growing organs for transplants.”
  Scientists create human-monkey hybrids, a step closer to growing organs / Sixth Tone
  “A Chinese-led team managed to grow human cells within monkey embryos for 20 days before terminating the experiment for ethical reasons.”
• Sinovac shot efficacy rate discussion continues
  China’s Sinovac COVID-19 vaccine 67% effective in preventing symptomatic infection – Chile govt report / Reuters
  In clinical and real world trials, China’s Sinovac underperforms / Economist (paywall)
  Previously on The China Project: China CDC director worries about ‘not high’ vaccine efficacy, but says his remarks were taken out of context.

POLITICS AND CURRENT AFFAIRS:

• Hungary blocks EU joint measures over Hong Kong
  EU drops plans to punish China over Hong Kong electoral reform / SCMP (paywall)
  “Hungary believed to have opposed measures, which included the suspension of extradition treaties between 10 EU member states and China.”
  Hungary blocks EU statement criticizing China over Hong Kong, diplomats say / Reuters
• Biden-Suga meeting
  Biden-Suga meetings at White House set to focus on China / NPR
  “To that end, he and Suga are set to announce a $2 billion commitment to support alternative 5G networks that are beyond or outside of the network of China telecommunications giant Huawei, a senior Biden administration official told reporters ahead of the meeting.”
  Biden, Suga poised to present united front on Taiwan as China steps up pressure / Reuters
  Biden says Japan and U.S. committed to working together to meet China challenge / Reuters
  Biden: “We committed to working together to take on the challenges from China and on issues like the East China Sea, the South China Sea, as well as North Korea, to ensure a future of a free and open Indo-Pacific.”
  Beijing warns U.S., Japan against collusion vs China / AP
• U.S.-China relations
  Beijing says U.S. ‘too negative’ toward China / AP
  “The U.S. appears to be highlighting confrontation and playing down cooperation, Vice Foreign Minister Lè Yùchéng 乐玉成 said in a wide-ranging interview with The Associated Press.”
  On climate change, Le offered, “Some countries are asking China to do more on climate change. I am afraid this is not very realistic.”
  Biden close to picking career diplomat Nick Burns as China ambassador / Axios
  “Burns is a Harvard University professor and former State Department spokesman who capped his Foreign Service career by serving as undersecretary of state for political affairs for President George W. Bush.”
• Implications for China of U.S. withdrawal in Afghanistan
  Biden’s Afghanistan withdrawal is a blow for China / Bloomberg (paywall)
  Bobby Ghosh writes that “most of China’s interests in Afghanistan are predicated on political stability and the absence of violence. The prospect of both have been greatly diminished by Biden’s withdrawal announcement.”
  China may send peacekeeping force to Afghanistan after U.S. troops leave, observers say / SCMP (paywall)
  “‘The security forces of the Afghan government are not capable of ensuring Afghan security,’ said Sun Qi, an international relations specialist at the Shanghai Academy of Social Sciences…‘The situation in Afghanistan might go further into chaos in the future. Cross-border crime, drug trafficking and smuggling of firearms may proliferate,’ he said.”
• Fukushima waste plan blowback continues
  China, South Korea slam Japan’s plan to dump radioactive water into Pacific / Caixin (paywall)
  “In a coordinated response, two nations call controversial measure ‘extremely selfish,’ saying it endangers neighboring countries and the international community.”
  Previously on The China Project: Beijing slams Japanese plan to dump Fukushima wastewater into Pacific.
• D.C. think tank website blocked in China
  China blocks U.S. think tank Centre for Strategic and International Studies website following critique on sanctions / SCMP (paywall)
• Canada’s parliament upsets Beijing with nonbinding motion praising Taiwan president
  China scolds Canada over Parliament’s support of Halifax Security Forum award to Taiwan / Politico

SOCIETY AND CULTURE:

• Art and photography
  Major contemporary art exhibition opens in Shanghai / Sixth Tone
  “One of the most influential art events in Asia, the Shanghai Biennale, will begin welcoming visitors on Saturday at the city’s Power Station of Art museum…The exhibition comprises 76 pieces or sets of artwork — ranging from oil paintings and photographs to videos and large installations — by 64 artists hailing from 18 countries including China.”
  Beautiful ambiguity / Neocha
  “Xiangyue is an independent platform dedicated to building a community around art photography. In support of this effort, online, it publishes WeChat articles and Bilibili vlogs, its content running the gamut from artist interviews to explorations of how to analyze a photograph; offline, it hosts workshops and photography exhibitions.”
• The success of stand-up comedy in China
  Stand-up comedians cheer up Chinese audiences / Caixin (paywall)
  “The skyrocketing popularity of [Lǐ Xuěqín 李雪琴], along with comedians like her, spotlights how stand-up, a Western import, is booming in China. Introduced in China more than a decade ago, the format became popular only in recent years thanks to several sensational internet television shows.”
• Is it ethical to go to Haidilao and only spend $3?
  How to hot pot on a shoestring budget is trending in China / Sixth Tone
  “Some are stirring up anger by boasting of spending less than $3 on meals while gorging themselves on free snacks at famously generous hot pot chain Haidilao.”