Links for Monday, December 20, 2021

BUSINESS NEWS FROM SUPCHINA A.M.:

Chinese links:

• By the end of next year, more than 400 million households will have gigabit-per-second internet via optic fiber, and 5G construction will maintain a steady pace, according to China’s Ministry of Industry and Information Technology.
• A draft amendment to China’s Seed Law was released today. It aims to strengthen the protection of intellectual property rights of new seed varieties. (This may be a step to something we predicted a year ago: that China would “legalize and begin to certify genetically modified crops.”)
• Rural ecommerce is growing, as the government has planned: In 2020, online retail sales of agricultural products accounted for 13.8% of total agricultural product sales, according to figures released today.

English links:

• China’s top livestreamer, Huang Wei, who goes by “Weiya” online, was recently fined a record 1.34 billion yuan ($210 million) for income tax evasion. In China, that crime is usually a catchall for any type of behavior that affronts the Party.
• Shares of China’s solar giants fell after Biden’s flagship $2 trillion Build Back Better Act, which set aside roughly $300 billion to expand tax credits for renewable power, biofuels, energy efficiency, and electric vehicles, was effectively struck down by Senator Joe Manchin.

Additional business and technology links:

Amazon complies with China edict on Xi’s book
Special report: Amazon partnered with China propaganda arm / Reuters
“Amazon.com Inc was marketing a collection of President Xi Jinping’s speeches and writings on its Chinese website about two years ago, when Beijing delivered an edict […]: The American e-commerce giant must stop allowing any customer ratings and reviews in China.”
“Amazon’s compliance with the Chinese government edict, which has not been reported before, is part of a deeper, decade-long effort by the company to win favor in Beijing to protect and grow its business in one of the world’s largest marketplaces.”

Big tech quietly forays into NFTs, startups look to crowdfund online
JD.com joins Alibaba, Tencent in launching ‘digital collectible platform’ amid NFT boom / SCMP (paywall)
“Major Chinese online retailer JD.com has quietly joined other tech giants such as Alibaba Group Holding and Tencent Holdings in launching a blockchain-backed platform to sell ‘digital collectibles’, despite Beijing’s heightened scrutiny of the crypto assets.”
Chinese tech startups flock to foreign crowdfunding platforms / Nikkei Asia (paywall)
“Online fundraising sites [are] used to boost name recognition, expand sales.”

Tutoring woes
China’s tutoring industry scrambles to survive after reforms close book on lucrative business model / Caixin (paywall)
Offcn education plunges on disclosure probe / Caixin (paywall)
“Vocational education operator Offcn Education Technology Co. Ltd. said it has been placed under investigation by China’s securities regulator on suspicion of violating disclosure rules.”

Are online brokers next in the crackdown?
Next in China regulatory crackdown: Online brokers – sources / Reuters
“Chinese officials are planning to ban online brokerages such as Futu Holdings Ltd and UP Fintech Holding Ltd from offering offshore trading services to mainland clients, the latest development in a broad regulatory crackdown that has roiled a wide range of sectors over the past year.”

A gloomy job market
In China, job cuts mount in sectors hit by tighter regulations / WSJ (paywall)
“Tech, education and property companies are shedding employees, dimming job prospects for college graduates.”

China strengthens bid for rare-earth dominance
China rare-earths pact spurs speculation of bigger consolidation / Bloomberg (paywall)
“A tie-up between two rare-earths companies is throwing a spotlight on China’s efforts to build industry giants to gain better pricing power in global markets.”

U.S. adds firms to blacklist for ties to Iran
U.S. blacklists 34 more Chinese entities for alleged support to Iran / Caixin (paywall)
“The U.S. government added 34 more Chinese companies and research institutes to an export blacklist for allegedly diverting U.S. goods to Iran’s military programs.”

China’s wind and solar power hit snags in U.S. and EU
Biden’s China and climate goals clash over solar panels / WSJ (paywall)
“Expiring tariffs on Chinese imports have the administration facing a trade-off between cheap renewables and solar made in the U.S.”
China’s solar giants fall after U.S. climate plan failure / Bloomberg (paywall)
Europe hits China’s wind industry with anti-dumping duties / Bloomberg (paywall)
“Europe slapped import tariffs of up to 19.2% on Chinese steel wind turbine towers as governments seek to protect industries producing clean power equipment needed for the energy transition.”

U.S. board “unable” to fully access audit papers for Chinese firms
The Oversight board says it can’t inspect audits of Chinese firms listed on Wall Street. / NYT (paywall)
“The Public Company Accounting Oversight Board said late Thursday that it had been unable to fully inspect the audit papers and other documents of accounting firms in mainland China and Hong Kong. The Securities and Exchange Commission [SEC] has the power to delist companies that lack fully approved overseas audits for three years.”

Hurun report: ByteDance tops as world’s largest unicorn, China lags behind the U.S.
ByteDance becomes world’s largest unicorn with $353 billion valuation: Hurun report / TechNode
“The Hurun Research Institute released on Monday its Global Unicorn Index 2021, a ranking of startups valued at more than $1 billion and not yet listed on a stock exchange.”
China trails U.S. in creating unicorns, Hurun ranking shows / Nikkei Asia (paywall)

What’s next for China’s EVs?
Chinese EVs want to shock global markets next / WSJ (paywall)
“Despite being the world’s largest auto market, China has never been a big car exporter globally. It seeks to change that in a more-electrified future.”
Electric car crystal ball gazing in China as the new year dawns / Bloomberg (paywall)
Bloomberg notes the China EV trends to keep an eye out for in 2022.
How China’s EV battery king is defending its throne / Caixin (paywall)

EV maker NIO debuts sports sedan to attract new buyers
Nio unveils second electric sedan to rival Tesla model 3 / Bloomberg (paywall)
Nio unveils new sports sedan in attempt to broaden customer base / TechNode
“Nio on Saturday revealed its second fully electric premium sedan model ET5, featuring an automated driving system, a fresh design, and a lower price point, to reach a larger customer base.”

Beijing helps SenseTime resuscitate its IPO
SenseTime’s IPO rescued by Chinese state-backed funds / FT (paywall)
“Beijing helps to relaunch [the] listing of [the] controversial artificial intelligence company after U.S. blacklisting.”
SenseTime reopens IPO, gets $512 million from cornerstones / Bloomberg (paywall)
SenseTime revives IPO days after U.S. investment blacklist forced delay / WSJ (paywall)
SenseTime relaunches $767m Hong Kong IPO after U.S. investment ban / Reuters

Chinese tycoon Xie Zhikun passes away
Chinese tycoon who built Zhongzhi Enterprise Group dies / Caixin (paywall)
“Xie Zhikun, the founder and controlling shareholder of sprawling Chinese investment conglomerate Zhongzhi Enterprise Group, died Saturday morning, Caixin learned from multiple sources.”

Rio Tinto names Canada ambassador to China as chair
Rio Tinto names Dominic Barton, Canada’s ambassador to China, as chairman / WSJ (paywall)
“Rio Tinto said Dominic Barton, Canada’s ambassador to China, would become its chairman as the mining company strives to repair damage to its reputation from the destruction of two ancient rock shelters in Australia last year.”
Rio Tinto names outgoing Canadian ambassador to China as chairman / Nikkei Asia (paywall)

Biotech firm Sirnaomics set for HK IPO
Biotech firm Sirnaomics Targets up to $70.3m in Hong Kong IPO / Bloomberg (paywall)

Alibaba’s big blueprint to save itself
Alibaba sketches out its game plan to come back from a horrific year / Bloomberg (paywall)
Alibaba unveils climate goals, seeks to reassure investors / WSJ (paywall)
Alibaba to grow Southeast Asia e-commerce arm to $100b / AP
Alibaba flexes digital muscle to cut 1.5 gigatons of carbon / Nikkei Asia (paywall)

Business at the Olympics: Delta to fly U.S. Olympians, ski brands look to cash in on China
Away we go: Delta to charter U.S. Olympians to Beijing / AP
“The U.S. Olympic team’s airline partner will charter a flight from Los Angeles to Beijing to bring about half the American athletes to the Winter Olympics.
Ski brands go for gold in China ahead of Beijing Olympics / Nikkei Asia (paywall)
“From Bogner to Goldwin, big names bet on winter sports boom in the country.”

China to bolster stock linkages with Swiss and German bourses
China to broaden stock connect program to incorporate Swiss, German exchanges / Caixin (paywall)

Investors bet on equity ETFs
Global investors pump money into Chinese equity ETFs / FT (paywall)

RiseSun mulls EV battery unit sale
Chinese developer RiseSun weighing $1.6 billion battery unit sale / Bloomberg (paywall)

Xiaomi’s new PE firm to bet on smart manufacturing
Xiaomi’s new private equity firm to invest in smart manufacturing / Caixin (paywall)

KE, HNA deny misconduct accusations as regulators zone in on Zhihu, Viya
Real estate services provider KE hits back at revenue fraud allegation / Caixin (paywall)
HNA units under investigation linked to embezzlement, financial misconduct, sources say / Caixin (paywall)
China summons Quora-like Zhihu for unlawful release of information / Reuters
China’s online sales queen Viya fined $210 mln for tax evasion / Reuters

Property crisis
China easing fails to calm Evergrande jitters in property sector / FT (paywall)
Chinese developer Kaisa follows Evergrande into restructuring talks / WSJ (paywall)
Chinese city takes back two plots of land from Evergrande / Reuters
China urges real estate project acquisitions to aid struggling developers – state media / Reuters
Chinese Estates plunges by record after privatization collapses / Bloomberg (paywall)
Editorial: With speculation curtailed, the people’s housing needs remain a priority / Caixin (paywall)
The recently concluded Central Economic Work Conference “reaffirmed the principle that housing is for living in and not for speculation, while also pointing out that ‘expected guidance should be strengthen[ed].’”

SCIENCE, HEALTH, AND ENVIRONMENT:

China’s endangered animals
Across China: Species on the brink / Sixth Tone
“This series of articles, published to — roughly — coincide with a United Nations meeting on biodiversity held in the southwestern city of Kunming, looks at whether efforts to save China’s endangered animals can undo enough damage before it’s too late.”

Highway bridge collapse kills four people in Hubei
Deadly bridge collapse may have been caused by overloaded trucks / Caixin (paywall)
“While the cause of a fatal highway bridge collapse in Central China over the weekend is still under investigation, some are suggesting it may have been caused by overloaded trucks, much like a similar incident two years ago.”
Four people killed in expressway bridge collapse in China’s Hubei Province / Reuters
4 dead in collapse of highway flyover in central China / AP

Two miners dead, 20 rescued in flooded mine shaft
20 Chinese miners rescued from flooded shaft, 2 found dead / AP
“Crews in northern China have safely rescued 20 of 21 coal miners trapped inside a flooded shaft, with one still missing, officials said.”

Shaanxi records a rise in hemorrhagic fever
Hemorrhagic fever cases rise in northwest China / Caixin (paywall)
“The capital of Northwest China’s Shaanxi province has since October recorded a number of cases of hemorrhagic fever with renal syndrome (HFRS), with local authorities pointing out the figure is ‘significantly’ higher than earlier this year and the same period last year.”

Corporate greenwashing is on the rise
2022 is a year to call out greenwashing in China / Bloomberg (paywall)
“[General Secretary] Xi Jinping’s drive for carbon neutrality is creating unprecedented levels of corporate hype about climate action.”

Should China put solar panels on its many roofs?
In clean energy race, China may have a lot more scope for rooftop solar than U.S. / SCMP (paywall)
“China has 75 percent more rooftop space for solar panels than the United States, but its more sparsely populated regions remain better suited to large-scale solar farms, according to a Chinese government study.”

COVID-19 update: Omicron may bring tighter restrictions
As Beijing Olympics approach, Omicron heightens pressure on vaccines / WSJ (paywall)
China finds imported Omicron cases in new city as outbreak grows / Bloomberg (paywall)
Beijing city calls for less holiday travel to reduce COVID risks during Olympics / Reuters
Hong Kong adds U.K. to list of nations with highest virus risks / Bloomberg (paywall)
Beijing says student at art studio tested positive for COVID / Bloomberg (paywall)
COVID-19 booster from China’s Sinopharm is weaker against Omicron, study finds / SCMP (paywall)

POLITICS AND FOREIGN AFFAIRS:

China’s propaganda plays
Buying influence: How China manipulates Facebook and Twitter / NYT (paywall)
A set of documents — now taken offline — reviewed by the NYT “reveals in stark detail how Chinese officials tap private businesses to generate content on demand, draw followers, track critics and provide other services for information campaigns. That operation increasingly plays out on international platforms like Facebook and Twitter, which the Chinese government blocks at home.”
Putin and Xi’s evolving disinformation playbooks pose new threats / TechCrunch
“As a result, [China’s] activities in the information domain are primarily geared toward promoting China’s image as a responsible global superpower and stifling criticism that would tarnish its prestige, while denting the appeal of democracy by casting the United States and its partners as ineffective and hypocritical.”

More on the Beijing Olympics boycott
Trump calls China’s leader ‘a killer’ but rejects Olympics boycott / Politico
“‘He is a killer but I had a great relationship with him,’ the former president said.”
USOPC stays neutral on China, pushes Salt Lake City / AP
U.S. Olympic leader calls on China to investigate star’s allegations / NYT (paywall)
“Olympic leaders were critical of China’s handling of the Peng Shuai case but tried not to say anything that would jeopardize the safety of the American athletes headed to Beijing.”
China puts Moon Jae-in on the spot with Beijing Olympics invite / Nikkei Asia (paywall)

China lawmakers debate more protection for women in the workplace
China prepares new sexual harassment safeguards for women / Reuters
“China’s top lawmaking body on Monday debated legislation to give women more protection against gender discrimination and sexual harassment in the workplace, state media reported, outlining rules including a clearer definition of inappropriate behavior.”

Can Biden make inroads in China’s backyard?
U.S. counters China with new Indo-Pacific framework / Nikkei Asia (paywall)
“As the U.S. works on a new Indo-Pacific initiative to fill the economic void left by its exit from the former Trans-Pacific Partnership, countries worried about the widening rift between Washington and China are counting on Japan to help steer the effort.”
Biden needs a Southeast Asia policy to counter China’s pull / Foreign Policy
“​​Despite one year of honing an Indo-Pacific strategy, Washington is still no closer to a clear trade agenda that might counteract some of China’s massive economic pull on the region.”

Lithuania row: German firm cites “pressure” from China, diplomats aided Lithuania embassy evacuation, EU mulls WTO involvement
German business hits out at China after Lithuania trade row snares exports / FT (paywall)
“Dispute between Beijing and Vilnius affects companies with operations in Baltic state.”
China said to arm-twist Continental on Lithuania business / Nikkei Asia (paywall)
Foreign diplomats helped Lithuania evacuate staff from China / Bloomberg (paywall)
“Diplomats from [EU] member states and other countries helped their Lithuanian colleagues evacuate their embassy and leave China last week in an unexpected departure after Beijing demanded the return of their passes.”
EU may involve WTO to resolve China-Lithuania trade row, Commission says / Reuters

How is China’s reinvigorated ideology affecting global order?
New characteristics for Chinese socialism? / Foreign Affairs
“The resolution also shows how China is groping toward a new ideological synthesis, trying and struggling to combine Marxism, Confucian thought, and the legacy of modern history.”
How China’s global ambitions almost unseated an IMF chief / FT (paywall)
“Beijing has [an] unusual dual-track strategy to influence the multilateral bodies that underpin western capitalism.”
China foreign minister says global initiatives must be inclusive / Bloomberg (paywall)
“International cooperative initiatives that are exclusive will eventually become ‘obsolete,’ Chinese Foreign Minister Wang Yi said Friday.”

China plans 1,000 schools in Iraq, as Pakistan tries to soothe China port protests
Pakistan seeks to calm protesters at Chinese Belt and Road port project / FT (paywall)
“Poor fishermen complain they are seeing no benefits from multimillion-dollar investment.”
China signs deal to build 1,000 schools in Iraq as Beijing pushes for greater role in Middle East after U.S. withdrawals / SCMP (paywall)

China offers aid to Nigeria over security concerns
China offers to send security team to Nigeria / SCMP (paywall)

China’s elderly are at high risk of suicide
Nearly one-third of suicides in China are by old people / Economist (paywall)
“People there aged 70 and above kill themselves at more than four times the rate of the general population, compared with around a quarter more in America. Loneliness and inadequate health care are among the main reasons.”

Beijing tries to bridge urban-rural divide over personal injury payouts
Supreme court takes aim at urban-rural discrimination in personal injury payouts / Caixin (paywall)
“China’s top court is amending a judicial interpretation of civil cases concerning compensation for personal injury, in a bid to close a gap between rural and urban areas in terms of judicial equality.”

SOCIETY AND CULTURE:

Influencer Viya received penalty for dodging tax
Livestreamer slapped with record $210 million fine for dodging tax / Caixin (paywall)
“China’s top livestreamer Huang Wei, nicknamed ‘Weiya’ online, has been fined a record 1.34 billion yuan ($210 million) for income tax evasion, following the first pair of such penalties last month in the flourishing but underregulated industry.”
China hits top influencer with $210 million fine over taxes / Bloomberg (paywall)
“Huang Wei — also known as Viya — was ordered to pay 1.34 billion yuan in back taxes, late fees and fines, the State Taxation Administration said Monday in a statement on its website. She avoided taxes totaling 643 million yuan by concealing personal income and making false declarations in 2019 and 2020, the statement added.”
China tech crackdown: Hangzhou fines top influencer Viya a record US$210 million for tax evasion / SCMP (paywall)
“Huang Wei, known as Viya online, avoided more than 700 million yuan in total taxes from 2019 to 2020 through a slew of tax evasion methods, including hiding commission fees, declaring personal wages as corporate income, and omitting reports of taxable income, according to a statement published on Monday by the Zhejiang Provincial Tax Service, under the State Taxation Administration.”
China’s livestreaming queen Viya goes viral for fraud and fines, ordered to pay $210 million / What’s on Weibo
“With news about Viya’s tax fraud practices and enormous fines going viral on Chinese social media, many are attacking the top influencer, as her tax fraud case seems to be even bigger than that of Chinese actress Fan Bingbing (范冰冰).”

Taiwanese American pop star Wang Leehom accused of infidelity and other wrongdoings
Trending in China: Chinese American pop star mired in public row amid divorce / Caixin (paywall)
“Chinese American singer-songwriter Wang Leehom (王力宏) has been accused of having extramarital affairs, soliciting sex workers, being an absent parent, and shielding assets obtained during the eight-year marriage, according to his wife of eight years Lee Jinglei (李靓蕾).”
Divorce drama: Wang Leehom and Lee Jinglei’s wild Weibo week / What’s on Weibo
“On December 15, Wang announced that after eight years of marriage, he was divorcing his wife Lee Jinglei (1986) after the couple had decided to each go their separate ways. On Friday, December 17, Lee published a lengthy post in which she accused Wang of wrongdoings during their marriage.”
U.S.-born China pop star Wang Leehom apologizes in scandal / AP
“An Asian American who is one of the biggest pop stars in China apologized to his family and fans on Monday and said he will take a break from performing after a public dispute on social media with his ex-wife, who accused him of infidelity and hiring prostitutes.”

Home for feminism conversation, Douban is de-listed with several groups shut down
Online feminist groups seek new home as Douban chills / Sixth Tone
“Over the past two weeks, thousands of group members have been wandering all over the net, looking for each other on different social media platforms. Some Douban groups set up temporary public discussion groups on the microblogging platform Weibo and online forum Baidu Tieba. However, conversations were more muted in these open forums. Other groups continued conversations in cloud documents created by office software.”

A woman suspected of abducting an infant is pardoned
Prosecutors free woman who abducted and raised a child 33 years ago / Sixth Tone
“Local prosecutors in the southern Guangxi Zhuang Autonomous Region dismissed the arrest of a woman suspected of abducting an infant over three decades ago, saying it had ‘exceeded the prosecution period.’”

Hesitancy on smart cities
China is making its cities ‘smarter.’ Can it make them wiser? / Sixth Tone
“Since 2012, China has embraced the concept of ‘smart cities’ in a bid to improve governance and urban officials’ decision-making, but more tech isn’t always the answer.”