Links for Monday, May 17, 2021

BUSINESS AND TECHNOLOGY:

TikTok hops off the AliCloud
Last week, Alibaba suffered its first quarterly loss since 2012, after swallowing the $2.8 billion antitrust fine in April. Part of its losses was also due to a major unnamed customer leaving its cloud services division.
That major customer is TikTok, reports Caixin. The parent company, ByteDance, has decided that it will stop using Alibaba for international businesses, including its popular short-video app.

• The decision may have been prompted by the ceaseless pressure TikTok has received from U.S. regulators over its status as a Chinese company.
• But AliCloud still posted its second consecutive profitable quarter.

Labor concerns in Xinjiang solar supply chain
Xinjiang’s Daqo factory opens doors to counter forced labor claims / Bloomberg (paywall)
“Daqo’s chief financial officer, Ming Yang, acknowledges there’s a ‘good probability’ that Xinjiang-made polysilicon will be banned by President Joe Biden. As the only U.S.-listed polysilicon company based in Xinjiang, Daqo can’t just ignore concerns from overseas investors and regulators, he said in an interview. ‘We understand there are these perception risks, especially from the public and media, and some investors,’ Yang said.”
Last week, via CNN: Xinjiang: Supply chain of solar panels key to Biden’s energy plan may rely on Uyghur forced labor from China, report claims.

Goldman Sachs is on a hiring spree in China
Retail banking is a dead end: This year, Citigroup closed all retail operations in China. But foreign banks are going full speed ahead with other types of financial services: Goldman Sachs plans to hire 320 new staff in China, including 70 to focus on investment banking in China, per Bloomberg.

• In January, the country announced plans to open its financial markets to foreign brokerages to encourage foreign capital.
• Goldman is not alone: HSBC also plans to hire 3,000 bankers in China over the next five years to focus on wealth management products, per the BBC.

WeChat stops mini-programs that jump to other platforms
In a severe blow to third-party developers, WeChat, the neutron star of China’s networking universe, will disable mini-programs that lead to other mobile apps, per Yicai Global.

• The parent company, Tencent, claimed that the change was made in reaction to user complaints over inefficiency.
• Is Tencent looking for trouble? Alibaba was recently fined $2.8 billion for something similar: preventing merchants from selling their products on other apps.

$5 billion buyout of 51job hangs on Japanese firm
51job, a Chinese recruitment services company on the Nasdaq, was given a $5 billion offer to go private last September by DCP Services, a private equity firm.

• Now the decision hangs on a Japanese firm. Recruit Holdings, a blue-chip staffing services company that owns 34.8% of its Chinese sibling, will decide 51job’s fate based on the laws of the Cayman Islands. Per Nikkei Asia, it may decide the outcome today.
• Context: The takeover bid comes amid heightened geopolitical tensions that have seen many Chinese companies leave U.S. markets — voluntarily or not. Three state-owned Chinese telecom operators will be forcibly removed from the New York Stock Exchange this week.

Like everywhere else, high real estate prices are a problem in China
China’s April home prices soar at breakneck pace, putting onus on authorities to keep housing affordability in sight / SCMP (paywall)
“The average price of new homes across 70 major cities rose 4.8 percent in April, from a year ago.”

• Over the same period, median home prices in the U.S. rose 17.2%.

Chinese consumers like gold, Chinese companies own a lot of mines
China’s gold rush / The Wire China (paywall)

Livestreaming buzz is fading
China’s hottest livestream trend: Fraud / Sixth Tone
“Chinese influencer agencies are searching for ways to keep viewing figures high. Many are turning to a tried-and-tested method: faking it.”

More rain on Jack Ma’s parade
Jack Ma’s school for business elites drops ‘university’ from its name / SCMP (paywall)

More business and technology links:

• China says retail sales grew 17.7% in April, missing expectations / CNBC
• China’s factory output slows as bottlenecks crimp production / Reuters (paywall)
• China offers banks nearly $16 billion to maintain liquidity / Bloomberg (paywall)
• Chinese trucking startup ForU applies for Nasdaq listing / Caixin (paywall)
• $25 billion of deals signed during annual Silk Road Forum in China / China-Africa Project
• Chinese contractors win majority of mega projects in Africa / SCMP (paywall)

SCIENCE, HEALTH, AND ENVIRONMENT:

U.S. ups competition in vaccine diplomacy
Biden to send 20 million U.S.-approved vaccines abroad by end of June / NBC News
“The 20 million doses of U.S.-approved shots are in addition to Biden’s previous commitment to give 60 million doses of the AstraZeneca vaccine to other countries, meaning that 80 million doses are expected to be shared with the world within the next few weeks.”
While Biden claimed that the 80 million total doses will be “five times more” than “Russia and China, which have donated 15 million doses,” the most up-to-date number for Chinese dose donations, according to the Bridge Beijing consultancy, is 18.3 million.

China increases pace of vaccinations as Liaoning, Anhui see new COVID-19 outbreaks
China is vaccinating almost 14 million people a day amid flareup / Bloomberg (paywall)
“The ramp up in shots is being helped by a flareup of cases in the eastern province of Anhui and northeastern region of Liaoning. Videos on social media showed citizens rushing to get their vaccines, with long queues at inoculation sites despite heavy rain. Hefei, Anhui’s capital city, administered 360,000 doses on Friday, the most in a single day for the hub of 10 million people, Xinhua News agency reported.”
China removes at least five officials from posts amid resurgence of COVID-19 cases / Global Times

More science, health, and environment links:

• Taiwan to bar entry of non-residents for a month / Focus Taiwan
  “The entry ban on all travelers except for citizens and residency holders also applies to transit travelers, the CECC said, after it reported 333 new domestic cases of COVID-19 Monday, a number that broke Taiwan’s daily record of local cases for the fourth consecutive day.”
• ‘Catastrophic’: Sierra Leone sells rainforest for Chinese harbor / Guardian
  “A $55 million deal struck by the government of Sierra Leone with China to build an industrial fishing harbor on 100 hectares (250 acres) of beach and protected rainforest has been criticised as ‘a catastrophic human and ecological disaster’ by conservationists, landowners and rights groups.”
• China cancels Everest climbs over fears of virus from Nepal / AP

POLITICS AND FOREIGN AFFAIRS:

China issues daily statements on Israel-Palestine conflict, again offers to mediate
China offers to host Israeli-Palestinian peace talks / SCMP (paywall)
“During a virtual meeting of the 15-member UN Security Council on Sunday, Chinese Foreign Minister Wang Yi again called for an immediate ceasefire between the two sides and for Israel to lift its blockade and siege of Gaza as soon as possible.”
U.S. on opposite side of international justice over Palestinian-Israeli conflict: Chinese FM / Global Times
“Chinese State Councilor and Foreign Minister Wang Yi on Saturday expounded on China’s position on the current Palestinian-Israeli conflict during a phone talk with Pakistani Foreign Minister Shah Mahmood Qureshi.”
China slams U.S. for blocking U.N. statement on Israel-Palestine conflict / Caixin
China puts forward four-point proposal regarding Palestine-Israel conflict / Xinhua via People’s Daily
“First, ceasefire and cessation of violence is the top priority…
Second, humanitarian assistance is an urgent need…
Third, international support is an obligation…
Fourth, a ‘two-state solution’ is the fundamental way out.”
China urges U.S. to play constructive role in Gaza diplomacy / AP
“China on Monday renewed calls for the U.S. to play a constructive role in ending the conflict in Gaza and stop blocking efforts at the United Nations to demand an end to the bloodshed.”
Foreign Ministry spokesperson Zhao Lijian’s regular press conference on May 17, 2021 / Ministry of Foreign Affairs (in Chinese here)
“China strongly condemns violence against civilians and once again urge parties to the conflict to immediately cease military activities and hostilities and stop such moves as air strikes, ground offensives and rocket launches that aggravate the situation. In particular, Israel should exercise restraint, earnestly observe relevant UN resolutions, stop demolition of Palestinian homes and the eviction of Palestinian people, discontinue its settlement expansion, put an end to violence, threats and provocations against Muslims, and maintain and respect the historical status quo of the holy sites in Jerusalem.”
Context on The China Project: China schmoozes with Saudi Arabia and other Middle Eastern powers.

Bus and building diplomacy in Africa
China just gave Kenya two luxury buses and a new foreign ministry HQ / China-Africa Project

Hong Kong politics
Hong Kong media mogul Jimmy Lai and 9 other democrats plead guilty over 2019 National Day protest / HKFP
10,250 arrests and 2,500 prosecutions linked to 2019 Hong Kong protests, as security chief hails dip in crime rate / HKFP
Hong Kong rights group leaders say they are prepared for jail / Radio Free Asia
Pope taps fellow Jesuit to lead sensitive Hong Kong church / AP

Guō Wénguì 郭文贵 continues his grift
Chinese businessman with links to Steve Bannon is driving force for a sprawling disinformation network, researchers say / Washington Post (paywall)
“In a video posted in April on GNews, a media website Guo has publicly suggested he helped establish, Guo calls vaccines against the coronavirus ‘fake’ and ‘poison.’”

More politics and foreign affairs links:

• China bars foreign curricula, ownership in some private schools / Reuters
• China to relax birth policy but wary of social risks, sources say / Reuters
• Japan, U.S., France hold military drill eyeing China presence / AP
• China’s rise pushes Senate toward action on competitiveness bill / Bloomberg (paywall)

SOCIETY AND CULTURE:

Divorce rates cool off after new policy
‘Cool-off period’ greatly lowers divorce rate, China says / Sixth Tone
Divorce registrations plunge 70% in Q1 since cooling-off period introduced / Global Times
Context on The China Project: Chinese divorce-seeking couples are choosing reconciliation after enduring 30-day “cooling-off” period.

The diminishing Chinese population in Prato, Italy
Going home: COVID sparks Chinese exodus from Italian textile town / Reuters
“The Chinese began to settle in Prato, 11 miles (17 km) north of Florence, around the end of the 1980s, attracted by plentiful work in factories serving Italy’s clothing industry…Then, in spring last year, the coronavirus hit. About 2,500 people, or 10% of the community, have since left…Now many are giving up, worn down by the COVID-induced recession and lured back to China by its greater success in combating the pandemic and brighter economic prospects.”

Discovering Chinese ancestors
Startup helps ethnic Chinese connect with ancestors / Nikkei Asia (paywall)
“My China Roots will offer free basic searches and creation of family trees but let subscribers save historical documents and get notified when others enter the same ancestor, plus offer premium custom packages like travel, in-depth research and translation.”
Previously featured on the Sinica Podcast: Searching for roots in China.

More society and culture links:

• China’s latest census shows foreigners flocking to the sleepy southwest / Caixin Global
  “Overseas residents declined in Beijing and Shanghai while they rose in Guangdong and Yunnan, which straddles border with Myanmar, Laos and Vietnam.”
• Back-to-back tornadoes kill 12 in China; over 300 injured / AP
  “Eight people died in the inland city of Wuhan on Friday night and four others in the town of Shengze, about 400 kilometers (250 miles) east in Jiangsu province, local governments said.”
• Top 10 overview of China’s most popular TV dramas May 2021 / What’s on Weibo