Highlighted links for January 4, 2023

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

BUSINESS AND TECHNOLOGY:

COVID halts China’s chip investment but Shenzhen wants in on the action
Battered by COVID, China hits pause on giant chip spending / Bloomberg (paywall)
“China is pausing massive investments aimed at building a chip industry to compete with the U.S., as a nationwide COVID resurgence strains the world’s No. 2 economy and Beijing’s finances.”

Shenzhen set to become international sourcing hub for semiconductors, electronics with new trading exchange / SCMP (paywall)
“Shenzhen has doubled down on efforts to advance China’s hi-tech self-sufficiency drive by establishing an international sourcing platform for semiconductors and other electronics components amid US trade restrictions.”

Inequality in China on the rise after pandemic
China’s COVID generation: the surging inequality behind Xi’s U-turn / FT (paywall)
“Lockdowns have often been more relentless in rural areas, upending the education of millions and blocking social mobility.”

Hong Kong retail struggles despite autumn uptick
Hong Kong retail sales fall in November, outlook challenging / Reuters
“Hong Kong’s retail sales fell in November, snapping two straight months of growth, and tightened financial conditions would continue to weigh on consumption, the government said on Wednesday.”

China Resources Beer turns to hard stuff
China’s top beer maker bets on strong ‘baijiu’ market / Nikkei Asia (paywall)
“China’s top brewer is diversifying as beer sales shrink in China. It is homing in on the baijiu white liquor market, which it sees as having huge growth potential.”

Chinese battery makers continue to lead the industry
China’s CATL Extends Lead as World’s Top EV Battery Maker / Bloomberg (paywall)
“Contemporary Amperex Technology Co. Ltd.’s share of the electric-vehicle battery market continues to grow, according to the latest data from Seoul-based SNE Research, which show the Chinese company accounted for 37.1% of global sales in the first 11 months of 2022.”
Chinese battery makers strengthen grip on global supply / FT (paywall)

Real estate developers still in trouble
Top 100 Chinese developers saw sales plunge 40 percent in 2022 as property crisis deepened / SCMP (paywall)
“The 100 largest property developers in China ended 2022 with 7.6 trillion yuan (US$1.1 trillion) in sales, down 41.3 percent from a year before, according to a report by the China Index Academy (CIA).”

Investors are shifting from China to Vietnam amidst U.S.-China trade war
How China’s zero-COVID policy triggered a new wave of investor interest in Vietnam / SCMP (paywall)
“Vietnam emerged as an alternative manufacturing base to China during the trade war between the world’s two biggest economies”

Genshin Impact brings China’s video game industry into the spotlight
Genshin Impact bags US$4 billion in sign of rising power of China’s video gaming industry / SCMP (paywall)
“Genshin Impact, the video game launched by Shanghai studio miHoYo in September 2020, bagged US$4 billion in global revenue by the end of 2022 to make it one of the most successful mobile titles of all time and marking the rise of China-developed games.”

• Last year on The China Project: Are video games China’s next cultural export? and Genshin Impact is China’s most popular global video game, and Chinese food brands can’t get enough of it.

Hong Kong hopes to see more global companies on its stock market
Hong Kong Stock Exchange woos global companies after expanding China link / WSJ (paywall)
“Hong Kong is making a pitch to multinational companies to list on its stock market, despite heightened tensions between China and the West.”

SCIENCE, HEALTH, AND ENVIRONMENT:

EU set to establish COVID restrictions on travelers from China
EU set to demand pre-departure COVID testing for travellers from China / FT (paywall)
“The EU is expected to impose pre-departure COVID-19 tests on travelers from China within days to try to prevent a surge in infections in that country spreading to Europe.”
China rails against COVID restrictions on its citizens / WSJ (paywall)
“Beijing warns of unspecified countermeasures, as stalling domestic consumption points to a sluggish economic rebound.”
Most EU countries back COVID pre-departure testing for flights from China / Reuters
New Zealand won’t require Chinese arrivals to show COVID test / Reuters

China’s government says it will distribute drugs to COVID-struck countryside
China promises more medicines in rural areas amid COVID surge / Reuters
“China’s cabinet said it will step up medicine distribution and meet the demand from medical institutions, nursing homes and rural areas, state media reported on Wednesday, amid a surge in COVID-19 infections.”

POLITICS AND FOREIGN AFFAIRS:

Sharp increase in Chinese warplane activity around Taiwan
China warplane flights near Taiwan surged in 2022 amid tensions / Bloomberg (paywall)
“The number of incursions China’s warplanes made into a sensitive area around Taiwan nearly doubled in 2022 compared to a year earlier, a sign of increased tensions over the democratically run island.”

Brazil’s new president ❤️ China
Brazil’s Lula puts ‘biggest trading partner’ China among first official visits / SCMP (paywall)
“Brazil’s President Luiz Inacio Lula da Silva will make his first official trip to Argentina at the end of January, before visiting the United States, Portugal and China, an official said on Tuesday.”

UAE and China ask UN Security Council to meet on conflict over mosque in Jerusalem
UAE, China ask UN Security Council to meet over Al Aqsa mosque — diplomats / Reuters
“The United Arab Emirates and China have asked the U.N. Security Council to meet publicly, likely on Thursday, over recent developments at Al Aqsa mosque compound in Jerusalem, diplomats said on Tuesday.”

New Yorker sentenced for conspiring to steal secrets for China
New York man sentenced to 2 yrs for conspiring to steal GE secrets for China / Reuters
Xiaoqing Zheng, 59, of Niskayuna, New York “was sentenced on Tuesday to two years in prison for conspiring to steal General Electric Co’s trade secrets to benefit China, the U.S. Justice Department said.”

Xi Jinping labeled one of the top global risks in 2023 by fashionable consultancy
‘Rogue Russia’ and ‘Maximum Xi’ top Eurasia list of 2023 risks / Nikkei Asia (paywall)
“The top two risks for the world in 2023 are Russia turning into the “world’s most dangerous rogue state” and President Xí Jìnpíng’s 习近平 “virtually unfettered” grip on power in China, according to a new Eurasia Group report.”

As Australia-China ties warm, so will the planet

China discussing easing of ban on Australia coal imports / Bloomberg (paywall)
“Chinese bureaucrats are discussing plans to resume some imports of Australian coal after a more than two-year ban as relations between the nations improve.”

General Li Qiaoming promoted to commander of PLA ground force
China promotes General Li Qiaoming to commander of PLA ground force /SCMP (paywall)
“General Lǐ Qiáomíng 李桥铭, who previously led a key command bordering North Korea and Russia, has been named the new commander of the People’s Liberation Army (PLA) ground force.”

China handled repairs for part of Taiwan’s most advanced anti-ship missile
Part of Taiwan’s most advanced anti-ship missile sent to mainland China for repairs / SCMP (paywall)
“Taiwan’s top military research unit on Wednesday denied there had been any data leaks after it confirmed that a key component of its most advanced locally developed missile has been sent to mainland China for repairs.”

How much influence does Beijing have over Hong Kong’s courts?
Can Beijing influence court disputes after decision leaving key power in Hong Kong’s hands? / SCMP (paywall)
“Beijing can still exert its influence in disputes involving national security cases in Hong Kong despite last week’s ruling that left power to decide whether foreign lawyers can represent defendants in the hands of city authorities, legal experts have warned.”

South Korea tracking down Chinese national missing from quarantine
South Korea seeks Chinese national missing from COVID quarantine / Reuters
“South Korean authorities said on Wednesday they were trying to track down a Chinese national who tested positive for COVID-19 on arrival but went missing while waiting at a quarantine facility.”

SOCIETY AND CULTURE:

China’s box office still dismal after end of COVID-zero
China’s box office bombs despite end of ‘zero-COVID’ / Caixin (paywall)
“China has recorded its lowest box office takings for a New Year holiday since 2016 — despite abandoning its harsh “zero-Covid” policy — as a limited number of premieres left moviegoers with few options.”

Chinese woman criticized for seeking donations to pay family of murdered friend
Online donation for court compensation sparks outcry in China / Sixth Tone
“The Chinese woman held liable for the death of her friend in a high-profile murder case in Japan is at the center of a social media storm after seeking donations to pay money to the victim’s family following a court order in December.”

Tarot cards become popular new trend amongst Chinese youth
Love Is in the cards: Young Chinese turn to tarot for guidance / Sixth Tone
There are a growing number of tarot practitioners amongst young people in China and some have even found online fame.

Famous people are dying, making it difficult for the government to lie about COVID
Chinese celebrities’ COVID deaths subvert propaganda push to minimize outbreak / FT (paywall)
The deaths of prominent academics, singers and business people during China’s COVID wave have made it difficult for the country to maintain its narrative.