Highlighted Links for Tuesday, November 22, 2022

Below are links to other noteworthy reports published in the last 24 hours from and about China.

BUSINESS AND TECHNOLOGY:

• Global investors worry about China
  ‘Frustrated and angry,’ global funds worry about Xi’s new China / Bloomberg (paywall)
  “Monday’s selloff laid bare the fallout from Xi’s strategies that sought to exert greater state control over markets and the economy while staking a COVID-zero policy at odds with the rest of the world.”
  Hong Kong stocks lead losses as China COVID cases rise; Asia markets mixed / CNBC (paywall)
  “Shares in the Asia-Pacific were mixed on Tuesday as investors weigh risks and China saw a rise in Covid cases. The government reiterated its Covid-zero policy in a late afternoon press conference.”

• China’s IPO frenzy isn’t over, but some companies will face more scrutiny
  China leads global equity IPO volumes this year / Reuters
  “Chinese companies are at the forefront of global stock offerings this year, with their issuances being facilitated by easy monetary settings at home and a lack of clarity on access to offshore capital markets.”
  Chinese regulators warn IPOs of zero-Covid winners subject to tight checks / FT (paywall)
  “Chinese regulators have warned that a wave of initial public offerings from companies claiming to be involved in China’s booming Covid-19 testing sector will be subject to added scrutiny over concerns that their high growth is unsustainable.”

• Huobi rebrands after crypto meltdown
  Crypto exchange Huobi drops ‘coin’ from its name after ownership change as industry realigns in wake of FTX collapse / SCMP (paywall)
  “Huobi Global, one of the largest cryptocurrency exchanges in the world, has rebranded itself as simply Huobi and removed the character for ‘coin’ from its Chinese name, as the company navigates an ownership change amid a global market meltdown.”
  Crypto’s latest mystery is the ownership of major exchange Huobi / Bloomberg (paywall)
  “People familiar with the matter, who asked not to not be identified discussing private information, said China-born crypto mogul Justin Sun [ 孙宇晨 Sūn Yǔchén] spent about $1 billion to acquire the roughly 60% shareholding via the Hong Kong-based asset manager About Capital.”

• Volkswagen sales drop in China
  Volkswagen sees China sales dropping on COVID zero policy return / Bloomberg (paywall)
  “Volkswagen AG has lowered its sales target in China by roughly 14% for this year as the country reinstates its COVID-zero policy that led to widespread supply-chain disruptions for the auto industry.”

• China’s crude buyers avoid Russian oil
  China pauses some purchases of Russian oil ahead of price cap / Bloomberg (paywall)
  “Several cargoes of Russian ESPO crude for December-loading remain unsold and there’s hesitation among sellers and Chinese buyers to close deals before more clarity on the exact price cap level is known, according to traders with knowledge of the matter.”

• More Zurich deals to come?
  China solar firm Longi picks CICC for $4 billion GDR sale, sources say / Bloomberg (paywall)
  “Chinese solar power equipment company Longi Green Energy Technology Co. has selected China International Capital Corp. for a sale of global depository receipts in Switzerland, according to people familiar with the matter.”

SCIENCE, HEALTH, AND ENVIRONMENT:

• Lockdowns continue in Beijing, Shanghai, Guangzhou, and around China
  Beijing shuts parks, Shanghai tightens entry as China COVID cases rise / Reuters
  “China reported 28,127 new domestically transmitted cases for Monday, nearing its daily peak from April, with infections in the southern city of Guangzhou and the southwestern municipality of Chongqing accounting for about half the total.”
  China’s financial hub Shanghai to tighten COVID rules for people entering the city / Reuters
  Beijing requires COVID test results within 48 hours to enter public places — official / Reuters
  China lockdowns reach record level as coronavirus cases soar / FT (paywall)
  China’s Guangzhou locks down millions in ‘zero-COVID’ fight / AP

• COVID restrictions in Guangzhou force factory workers to go homeless
  The workers in limbo during Guangzhou’s Covid outbreak / The World of Chinese
  “Workers in Guangzhou’s urban villages face days living on the streets as their residences restrict entry.”

POLITICS AND FOREIGN AFFAIRS:

• Chinese and U.S. defense chiefs discuss Taiwan
  Taiwan is at the core of China’s core interests — Chinese defense minister / Reuters
  “Chinese Defence Minister Wèi Fènghé 魏凤和 on Tuesday told his U.S. counterpart that Taiwan is at the core of China’s core interests and was a “red-line” that must not be crossed.”
  U.S. and Chinese defense chiefs meet amid strained relations / AP
  Pentagon chief raises concern about Beijing’s ‘dangerous’ behavior with Chinese counterpart / Reuters

• U.S.-China business back channel
  China turns to back-channel diplomacy to shore up U.S. ties / WSJ (paywall)
  “China is turning to an old friend in corporate America to bolster communications with the U.S., as President Xi Jinping tries to stabilize the bilateral relationship while gearing up for greater competition between the two powers.”

• Kamala Harris vows U.S. backing for Philippines
  VP Harris urges defense of sovereignty in South China Sea / AP
  “Vice President Kamala Harris urged countries on Tuesday to stand up for territorial integrity and freedom of navigation in the South China Sea, which has been challenged by China, and said Washington would press an international campaign against ‘irresponsible behavior’ in the disputed waters.”
  Harris says U.S. stands with Philippines against coercion in South China Sea / Reuters
  Chinese embassy denies ‘forceful’ retrieval of unidentified floating object near Pag-asa Island / CNN
  “The Chinese embassy contradicted reports about the Chinese Coast Guard ‘forcefully’ taking an unidentified floating object from the Philippine Navy, saying there was a ‘friendly consultation’ between involved parties.”

• Taiwan army officer under investigation for taking money from China
  China reportedly paid Taiwan officer to surrender if war started / Bloomberg (paywall)
  “Taiwan is investigating an infantry officer on suspicion he took monthly payments from China for years to gather intelligence and surrender if a war ever broke out, saying the case highlights the “serious threat” posed by Beijing’s espionage.”
  Taiwan charges army officer with corruption, harming state security / Reuters

• China under-delivers Pacific aid
  ‘More smoke than fire’: China’s Pacific aid falls short of pledges / FT (paywall)
  “In 2017, Papua New Guinea’s government announced a long-awaited A$4.1bn ($2.6bn) upgrade of the nation’s potholed highway network that would be funded by development loans from China. Five years on, the project, which was to be undertaken by the state-owned China Railway Group, has stalled, with none of the planned 1,600km of roads improved or replaced.”

• A deadly factory fire in Henan
  China factory fire kills 38 / NYT (paywall)
  Factory fire kills 38 people in central China, state media reports / CNN
  Video shows heavy flames and smoke devour Chinese factory / CNN
  Chinese factory fire that killed 38 caused by illegal welding – media / Reuters

• Is Beijing smiling at Seoul?
  China resumes streaming South Korean content after six-year suspension / Reuters
  “A Chinese streaming platform has resumed distributing South Korean content after suspending it for nearly six years, South Korean officials said on Tuesday, in what Seoul called a sign of Beijing’s readiness to improve ties.”

• An obituary for Bao Tong
  Bao Tong, 90, dies; Top Chinese official imprisoned after Tiananmen / NYT (paywall)
  Bào Tóng 鲍彤 “helped design China’s political reforms in the 1980s and tried to avert the bloodshed that ended the democracy protests. After prison, he became a critic of the Party.”

SOCIETY AND CULTURE:

• Gray-haired influencers in China
  China’s grandparents are done babysitting and ready to go viral / NYT (paywall)
  “Rapping grannies, crooning 70-year-olds and gamers in their 80s are challenging traditional Chinese views about aging and what it means to have a long and happy life.”

• Cemetery jobs are attractive to China’s lying-flat generation
  ‘Cushy’ cemetery job gives Chinese university graduate work-life balance, no office politics — sparking careers debate / SCMP (paywall)
  “The decision of a Chinese university graduate to take a job in a cemetery to achieve a better work-life balance and avoid office politics has shocked many and triggered an online debate on the work preferences of Generation Z in China.”

• New relics discovered
  Shipwreck remains from 150 years ago surface in China / Sixth Tone
  “Remains from a shipwreck in the Yangtze River estuary have been salvaged after more than a century, providing a peek at the ancient vessel and adding to China’s treasure of cultural relics unearthed over the years.”

• The rise of China’s first F1 driver
  Zhou Guanyu: How China’s first F1 driver proved his doubters wrong / Sixth Tone
  “The 23-year-old has had to deal with enormous pressure since becoming China’s first Formula One driver this year. But he appears to be gaining momentum heading into the final race of his debut season.”