Links for Tuesday, April 27, 2021

WORTH THINKING ABOUT

Pieces of news or analysis that caught our eye:

Will Western vaccine manufacturers release their IP? The Financial Times reports that these companies, including J&J, Pfizer, Moderna, and Novavax, are taking a nationalistic line in lobbying to prevent any exception to their exclusive control over lifesaving medical technology:

As industry lobbying has escalated in Washington, companies have warned in private meetings with U.S. trade and White House officials that giving up the intellectual property rights could allow China and Russia to exploit platforms such as mRNA, which could be used for other vaccines or even therapeutics for conditions such as cancer and heart problems in the future…

A measure to allow countries to temporarily override patent rights for pandemic-related medical products was proposed at the World Trade Organization by India and South Africa in October, and has since been backed by almost 60 countries.

While Donald Trump’s administration firmly opposed the waiver at the WTO, along with the U.K., EU and Switzerland, U.S. president Joe Biden’s top trade official Katherine Tai has rattled U.S. pharmaceutical companies by appearing to put that position under review.

The companies reportedly “insist they are already doing everything they can to expand production, and that global manufacturing bottlenecks, not patents, are slowing the rate at which vaccines are produced.”

But a growing movement — including Democratic politicians, a “group of 175 former world leaders and Nobel laureates,” and a petition from Public Citizen’s Global Trade Watch signed by more than 2 million people — is pressuring the U.S. government to make a temporary waiver for IP rights.

Related:

• U.S. to share AstraZeneca COVID-19 vaccine doses with world / WSJ (paywall)
  “Biden and several other top officials in his administration didn’t issue public statements on the crisis [in India] until the weekend, drawing a backlash…The administration stopped short of agreeing to donate vaccine supply, saying it would instead make available sources of raw materials to help India manufacture more vaccines.”
• China vows to step in as India curbs vaccine supply to neighbors / Bloomberg (paywall)
  “China’s Foreign Minister Wang Yi said during a virtual meeting with his counterparts from Afghanistan, Bangladesh, Nepal, Pakistan and Sri Lanka on Tuesday that Beijing is willing to provide them with stable vaccine supplies through a multilateral framework.”

MORE NEWS FROM AROUND THE WORLD

BUSINESS AND TECHNOLOGY:

• More bad news for Jack Ma and Ant Group
  Ant IPO-approval process under investigation by Beijing / WSJ (paywall)
  “Beijing is investigating how Jack Ma won speedy approvals for his Ant Group Co.’s stock listing last year…The central-government investigation, which started early this year, focuses on regulators who greenlighted the initial public offering, local officials who advocated it and big state firms that stood to gain from it. Mr. Ma’s relationships with these state stalwarts are being examined as part of the scrutiny.”
  Ant valuation seen falling to $29 billion in worst-case scenario / Bloomberg (paywall)
  “Ant Group Co.’s valuation could plummet to as low as $29 billion after becoming a financial holding company that’s regulated more like a bank, according to Bloomberg Intelligence…The regulatory clampdown could push Ant’s revenue growth to the low teens compared with 30% in November, dragging down profit prospects, analyst Francis Chan wrote…Ant’s valuation could drop to a range of $29 billion to $115 billion, from $320 billion previously, he forecasts.”
• $15 million funding for online Chinese pastry shop
  蛋黄酥品牌「轩妈食品」完成超亿元B轮融资，通过数智化平台提供新鲜烘焙食品 / 36Kr
  Xuanma Foods (轩妈食品), an online Chinese-style pastry retailer founded in 2016, recently took in $15 million.
  Known for its consistently high quality and all-digital sales channels, the company sells pastries, including soufflés, mooncakes, and egg yolk crisps.
  In 2020, Xuanma sold nearly 300 million pastries, with an annual revenue of about $77 million and a customer retention rate of 40%.
• Sam’s Club shows brick-and-mortar isn’t dead
  山姆会员商店：预计到2022年底，山姆在中国将有40-45家开业及在建门店 / 36Kr
  Sam’s Club is Walmart’s answer to Costco — bulk shopping that requires membership. The brand is about to open its 32nd outlet in China in the city of Huizhou, Guangdong Province.
  Sam’s has been opening around five new stores a year in China and is on track with plans to have 45 stores by the end of 2022.
• Dodgy Huarong asset management company gets a secretive lifeline
  荣耀终端有限公司注册资本增至约118.5亿，增幅约1875.77% / 36Kr
  After weeks of speculation over whether China Huarong Asset Management — a debt-ridden state-run manager of distressed financial assets — would go bankrupt, a small injection of cash has appeared out of thin air, possibly from Beijing.
  • On a Chinese company profile sheet (in Chinese) yesterday, registered capital for Huarong shot up 1,800%, going from $92 million to $1.9 billion.
  • The distressed debt manager was expected to go bankrupt after it failed to announce its financials in mid-April, the deadline for most public companies.
  • Just a drop in the ocean: The mysterious cash injection is still a far cry from the approximately $42 billion Huarong owes bondholders at home and abroad.
• China to crack down on short videos with copyrighted content
  China to crack down on short videos of movies, TV shows, official says / Yicai Global
  The National Copyright Administration said it will crack down on user-generated videos that contain copyrighted content on platforms such as Douyin, Kuaishou, and Bilibili.
  The sector is plagued by piracy. Over 70 movie and TV companies and organizations and 500 professionals in the field launched an initiative last Friday (in Chinese) to fight IP violations caused by short videos.
• The future of Hong Kong vs. Shenzhen housing prices
  For China’s property developers, Hong Kong is becoming Shenzhen’s backyard / Reuters
  “In Shenzhen’s prime districts, such as Nanshan where tech giant Tencent is based, some house prices have already surpassed those in northern Hong Kong…‘Our long term view is Shenzhen will be the center and Hong Kong the periphery,’ said an executive at a Chinese developer…‘People who work in Shenzhen may choose to commute from Hong Kong where home prices will be cheaper.’”
• Electric cars and podcasts
  Lizhi partners with electric carmaker to create branded podcast service / Caixin
• 6G domination
  China holds 35% of global 6G patents, government report says / Protocol
• The Chinese-owned TikTok of news
  Can Chinese tech save American news? / Protocol

SCIENCE, HEALTH, AND THE ENVIRONMENT:

• Oil spill off foggy Qingdao coast
  Tanker spills oil off Chinese port after collision / AP
  “The A Symphony was anchored outside Qingdao, southeast of Beijing, the Maritime Safety Administration said…Other ships were ordered to stay at least 10 nautical miles (18.5 kilometers) away, but the agency gave no details of the damage or how much oil leaked.”
  Oil spill near China’s Qingdao port after ship collision in fog / Reuters
  “The incident was reported to local authorities and a clean up operation has begun, although it was hindered by the port’s closure because of ‘zero visibility.’”
• Further pledges to reduce the use of coal
  China says coal will play less-dominant energy role / AP
  The director general of the Department of Climate Change in China’s Environment Ministry said: “In the past, [coal] was the main source of power. In the future it will play the role of providing flexibility for the power grid…And now we still need a certain amount of coal…but we will not develop coal on a wide-scale basis, that’s very clear and that’s strictly regulated.”
  Last week, via NYT: China’s Xi promises to ‘strictly limit’ coal.
• Space mining and debris catching
  China launches space mining test spacecraft on commercial rideshare mission / SpaceNews
  China launches robot prototype capable of catching space debris with net / Reuters
• Hong Kong eases COVID restrictions
  Hong Kong to reopen bars, nightclubs from April 29 for vaccinated customers / Reuters
  COVID-19: Hong Kong social distancing measures to ease as ‘vaccination bubbles’ become effective from Thur / HKFP
• Shanghai investigating medical malpractice
  Health authority orders probe into claim of cancer treatment malpractice in Shanghai / Caixin (paywall)
  “Investigation into doctor follows whistleblower allegations of higher death rates due to ‘mass misconduct’ at hospitals in China.”

POLITICS AND CURRENT AFFAIRS:

• Germany-China relations, and how they might change after Merkel
  China and Germany agree to step up climate change cooperation / AP via SCMP (paywall)
  German contender wants tougher stance on China, Russia / AP

Annalena Baerbock, the environmentalist Greens’ candidate for chancellorship, told the weekly Frankfurter Allgemeine Sonntagszeitung that Europe should use its economic might to block Chinese goods made with forced labor and avoid communications technologies that endanger European security…

A poll published Sunday by weekly Bild am Sonntag put the Greens narrowly ahead of Merkel’s center-right Union bloc.

Germans will elect a new parliament September 26 that will then choose who should become the country’s next chancellor. Merkel is not running for a fifth term.

• U.S. half-heartedly competes with Chinese influence in Africa
  Africa should beware China’s growing role, top U.S. diplomat Antony Blinken warns during ‘trip’ to Nigeria and Kenya / SCMP (paywall)
  The U.S. tries to repackage what’s effectively a Zoom call into Secretary Antony Blinken’s “virtual travel to Africa” / China-Africa Project (paywall)
  Eric Olander comments, “One’s got to imagine that Chinese Foreign Minister Wang Yi’s team at the Foreign Ministry in Beijing is getting a chuckle out of this one, given that he actually went to Africa this year…in person.”
  Previously on The China Project: Chinese Foreign Minister Wang Yi begins five-nation Africa tour.
• Xi visits Guangxi, urges “ethnic unity”
  Xi stresses high-quality development in ethnic border regions / Xinhua (Chinese report here)
  Xi “made the remarks during his inspection trip to south China’s Guangxi Zhuang Autonomous Region from Sunday to Tuesday…Xi called on these regions to better serve and integrate into the country’s new development pattern, make new progress in advancing green development, and be more committed to consolidating and developing ethnic unity, social stability and border security.”
  Last month on The China Project: Xi emphasizes ‘ethnic unity,’ environmental protection, rural development, and military readiness at Two Sessions.
• Australia-China relations still in gutter
  Australia ‘is sick’, needs to take medicine: China’s Foreign Ministry / Global Times
  Beijing tells Australian Defense Minister Peter Dutton to abide by one-China principle after Taiwan warning / SCMP (paywall)
• Tensions rising in Japan-China relations
  China reasserts Diaoyus claim with island survey as tensions rise with Japan / SCMP (paywall)
  Japan highlights ‘strong concerns’ over China’s military expansion in annual foreign policy report / SCMP (paywall)
  Fukushima water: China’s spokesman draws flak for using Hokusai ‘Great Wave’ parody in jab at Japan / SCMP (paywall)
  Chinese experts to join Atomic Agency’s probe into Fukushima wastewater release / Caixin (paywall)
• U.S. Congress considers amendments to technology competition bill
  U.S. legislation on China to be delayed, lawmakers say / Reuters
  “The bipartisan ‘Endless Frontier’ measure [which would “allocate $112 billion for basic and advanced technology research and science in the face of rising competitive pressure from China”] was scheduled to be debated by the Senate Commerce Committee on Wednesday, having been formally introduced on April 21. But with more than 230 amendments filed for consideration, Senate Republicans said the markup would not go forward until after a one-week Senate recess than ends May 10.”
• New warships and pier for Chinese navy
  China adds carrier pier to Djibouti base, extending Indian Ocean reach / Nikkei Asia (paywall)
  “China has completed a pier large enough to accommodate an aircraft carrier at a naval base in the eastern African nation of Djibouti, which could potentially allow the country’s navy to project power outside the traditional operating areas of the East and South China seas.”
  China simultaneously commissions three warships on Navy anniversary / Defense News
• India-China border standoff continues
  China border row: Indian Army issues notice seeking to procure 350 light tanks / Live Mint
  Army chief visits eastern Ladakh, Siachen to review operational readiness / Times of India
• Kiwi foreign minister tries to walk China tightrope
  New Zealand must be ‘respectful’ of China, even if there are disagreements — Nanaia Mahuta / Newshub

SOCIETY AND CULTURE:

• The making of the Shanghai aesthetic
  The Shanghai Academy of Art: The school that gave the city its early 20th-century aesthetic / SCMP (paywall)
  Paul French writes, “Established in 1912 by a 16-year-old art prodigy, the Shanghai Academy of Art and its graduates came to define the east-west look of the city.”
• “Produce Camp 2021” contestant “should have read [labor contract] a bit more carefully”
  Russian man overjoyed to finally lose Chinese talent show / Sixth Tone
  “When aspiring fashion designer Vladislav Sidorov, aka Lelush, reluctantly agreed to be on a Chinese reality show, he expected to be voted off immediately. Instead, he survived until the final vote.”
• Tiger loose in Heilongjiang
  Siberian tiger roams around Chinese village / BBC
  China: Siberian tiger caught after attacking villager / DW