Highlighted links for April 24, 2023

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

BUSINESS AND TECHNOLOGY:

Ultra-high-speed trains
China completes superconducting test run for 1,000km/h ultra high-speed maglev train / SCMP (paywall)
“China has completed a superconducting test run for its ultra high-speed train that aims for speeds of up to 1,000km/h (621mph) in a low-vacuum tube.”

Moving supply chains away from China
China trade data points to accelerated supply chain relocation despite rebound in March exports / SCMP (paywall)
“Despite a surprising surge in overall exports in March, a supply chain relocation away from China might still be accelerating as shipments from foreign-invested companies dwindled in the first quarter, according to detailed customs data.”

Electric vehicles
Electric vehicles: why the West needs China’s battery prowess as it moves to build supply-chain capacity / SCMP (paywall)
“​​The process of deglobalization for Western battery producers is likely to be lengthy and turbulent, with challenges at each stage of the supply chain, says analyst.”
Shanghai Auto Show: China’s underachieving EV start-ups skip premier event as they fade into oblivion / SCMP (paywall)
“Some promising Chinese electric vehicle (EV) start-ups, once seen capable of shaking up the market, are absent from this year’s Shanghai Auto Show as new technologies and tougher competition reshape the industry landscape.”
Car makers compete for China’s EV market at Shanghai Auto Show / WSJ (paywall)
“At this year’s auto show in Shanghai, auto makers are in a race to compete with Chinese EV manufacturers. WSJ’s Yoko Kubota takes a look at what’s driving the latest trends.”

Bonds
China moves step closer to unifying corporate bond market oversight / Caixin (paywall)
“China has laid out a blueprint for its top securities regulator to take over the part of the country’s corporate bond market currently overseen by the economic planning agency, as it strives to unify regulation of its $21 trillion bond market.”

Imports and exports
China loses more of its share of U.S. imports to ‘low-cost’ Asian rivals / Caixin (paywall)
“China lost more of its share of U.S. imports from 14 low-cost countries and regions (LCCs) in Asia last year, a recent report showed, as companies continued to move manufacturing out of the world’s second-largest economy.”

Batteries
BYD to build $290 million battery components plant in Chile / Caixin (paywall)
“Chinese electric car giant BYD Co. Ltd. plans to build a positive electrode material factory in Chile to secure battery-making materials at a discount from local suppliers.”

AI
China says chatbots must toe the party line / NYT (paywall)
“The Communist Party outlined draft rules that would set guardrails on the rapidly growing industry of services like ChatGPT.”

Luxury goods
Why China’s luxury market is stronger than ever after COVID-19 pandemic / SCMP (paywall)
“China’s luxury sector shrank last year amid citywide lockdowns, but years of self-imposed isolation have given rise to a more sophisticated domestic market.”

Banking
China guides banks to further cut deposit rates / Reuters
“China nudged banks this month to cut deposit interest rates further, seven people with knowledge of the matter said, in the latest effort to channel the country’s vast savings pool into spending and more productive investments.”
HSBC activist investor lobbies shareholders ahead of meeting / Bloomberg (paywall)
“An HSBC Holdings Plc shareholder in Hong Kong is lobbying institutional shareholders to vote in favor of a proposal to restructure the lender’s business at its annual general meeting on May 5.”

Tech self-reliance
Xi’s tech self-reliance push leaves Europeans wary of China R&D / Bloomberg (paywall)
“China’s push to become self-reliant in the technology sphere is driving more European companies operating there to rethink their research and development plans, according to a report published Friday by the European Union Chamber of Commerce in China.”

Provincial economies
China province steps up its plead for state aid on debt woes / Bloomberg (paywall)
“One of China’s poorest and most indebted provinces is making a stronger push for state help to diffuse its financial risk, after local authorities recently sought to draw Beijing’s attention to the severity of its debt burden.”

ESG investing in China
China’s $1.4 trillion wealth fund backs ESG as U.S. divisions grow / Bloomberg (paywall)
“In the US, ESG has become a political wedge issue. In China, it’s a national rallying cry.”

Alibaba’s breakup
Alibaba logistics arm Cainiao gears up for Hong Kong IPO / Caixin (paywall)
“Cainiao Network Technology, the logistics arm of Alibaba Group Holding Ltd., started preparations to become the first of the tech giant’s six units to go public, Caixin learned from multiple market participants.”

SCIENCE, HEALTH, AND ENVIRONMENT:

COVID origins
Chinese censorship is quietly rewriting the COVID-19 story / NYT (paywall)
“Under government pressure, Chinese scientists have retracted studies and withheld or deleted data. The censorship has stymied efforts to understand the virus.”

Space exploration
China plans to send probe to near-Earth asteroid around 2025 / Reuters
“​​China plans to launch an uncrewed probe around 2025 to collect samples from a near-Earth asteroid and explore a comet, the official Xinhua news agency reported on Monday, citing a senior space expert.”
China’s lunar sample gifts to France, Russia have scientists over the moon / SCMP (paywall)
“China’s space agency has revealed that the country recently gifted France and Russia with small samples of lunar soil, which are expected to help scientists in the two countries make giant leaps in their understanding of the evolution of the moon.”

Energy deals
China strikes energy deals as its clout grows in Middle East / WSJ (paywall)
“For years, China has bought oil and gas from the Middle East. Now, Chinese companies are making big investments in parts of the energy infrastructure.”

POLITICS AND FOREIGN AFFAIRS:

Who is in charge of Buddhist reincarnation?
China’s reincarnation monopoly has a Mongolia problem / Foreign Policy
“Bizarrely, for an atheist communist party-state, the People’s Republic of China (PRC) claims that only it can decide on reincarnations of Tibetan Buddhist lamas—a privilege the PRC says it inherited from the Manchu rulers of the Qing Empire, which included both Mongolia and Tibet. But the PRC controls only a portion of historical Mongolia.”

Censorship
How a triple whammy of censorship, COVID and big tech cuts left China’s media on its knees / SCMP (paywall)
“At the peak of the country’s tech boom, the biggest tech firms began to aggressively build up media portfolios but they are now beating a hasty retreat.”

China accuses a liberal columnist of espionage / NYT (paywall)
Dǒng Yùyù 董郁玉 “was a longtime writer and editor at a top Chinese Communist Party newspaper who had frequently met with foreign diplomats and journalists.”

Weapons development
China urged to step up laser weapons development to keep pace with US / SCMP (paywall)
“China should speed up the development of laser weapons to keep pace with the swift progress made by the United States, Chinese military analysts have said.”

Guo Wengui
Guo Wengui denied bail while awaiting trial in New York / WSJ (paywall)
“A New York federal judge on Thursday ordered wealthy Chinese businessman Guō Wénguì 郭文贵 jailed while he awaits trial on fraud and money-laundering charges, calling him a flight risk and saying the Justice Department’s evidence against him was strong.”

Food security
China food security: focus on increased domestic soybean production amid self-sufficiency drive / SCMP (paywall)
“China is aiming to increase soybean production this year as part of efforts to achieve greater food self-sufficiency amid escalating geopolitical tensions.”

Hong Kong
Hong Kong faces teacher flight as China pushes ‘patriotism’ / Nikkei Asia (paywall)
“Teachers at Hong Kong schools are resigning at an accelerating turnover rate amid an embrace of mainland-style “patriotic education” by the government that is seen as chilling a once-open atmosphere.”
How business-friendly Hong Kong became a hub of Russian chip trade / Nikkei Asia (paywall)
“In Hong Kong, setting up a shell company can be done in a matter of days and for less than the cost of an iPhone.”
Jack Ma appointed honorary professor at the University of Hong Kong / Caixin (paywall)
“Alibaba Group Holding Ltd. co-founder Jack Ma [马云 Mǎ Yún] has been appointed an honorary professor at the University of Hong Kong (HKU), the latest development for the English teacher-turned entrepreneur who has vowed to devote himself to education, agriculture and other causes since his 2019 retirement as chairman from the e-commerce giant he co-founded in 1999.”

Taiwan
Taiwan says tracking Chinese carrier off its southeast coast / Reuters
“Taiwan’s defense ministry said on Monday that a Chinese carrier group led by the Shandong was about 120 nautical miles off the southeast of the island’s coast, the same ship that took part in China’s war games around the island earlier this month.”
Taiwan in talks with Washington about potential weapons stockpiles on or near island, premier confirms / SCMP (paywall)
“Taipei is in talks with Washington about potentially building weapons stockpiles in the region to give the island access to weapons needed to fight Beijing in the event of a cross-strait conflict, Taiwan confirmed on Monday.”

U.S.-China competition and tensions
Biden aims to unveil China investment curbs with G-7 backing / Bloomberg (paywall)
“President Joe Biden aims to sign an executive order in the coming weeks that will limit investment in key parts of China’s economy by American businesses, people familiar with the internal deliberations said.”
Pair of potential U.S. presidential candidates start Asia trips / Bloomberg
“Two possible US presidential candidates are visiting Asia this week, trips that come as the US steps up efforts to counter Chinese influence.”

Macau gambling
Macau junket boss gets 14 years’ jail after HK$1.5 billion raked in through illegal gambling in VIP rooms / SCMP (paywall)
“The former boss of Macau’s second biggest casino VIP room operator has been jailed for 14 years in the gambling hub after he was convicted of 34 charges of fraud, illegal gambling and criminal association related to HK$1.5 billion (US$191 million) in off-the-books junket operations.”

Australia and New Zealand
Australia plans major overhaul of defenses as China rises / AP
“Australia needs to spend more money on defense, make its own munitions and develop the ability to strike longer-range targets as China’s military buildup challenges regional security, according to a government-commissioned report released Monday.”
Australia races to reform defense amid shift of power in region from US to China / SCMP (paywall)
Australia plans major changes to military amid China’s build-up / Bloomberg (paywall)
China-Australia relations: business leaders try to rekindle economic spark at first dialogue in Beijing since 2018 / SCMP (paywall)
“Business delegates from Australia and China have held their first in-person strategic dialogue in Beijing since 2018, with both sides seeking to deepen economic ties.”
Australia seeks to rebalance ties with China after three-year freeze / Nikkei Asia (paywall)
“Buried in China’s diplomatic deep freezer for nearly three years, Australia has faced an uphill battle trying to repair its rift with its biggest trading partner. But several recent breakthroughs show that Beijing and Canberra may be able to rise above their differences.”

South Korea
South Korea hits back at China’s ‘rude’ retort in war of words over Taiwan / SCMP (paywall)
“South Korea’s foreign ministry summoned the Chinese ambassador to Seoul in protest on Thursday night as the two countries descended into a war of words over Taiwan.”

Russia, Ukraine, and Eastern Europe
Lu Shaye: Chinese envoy who questioned Ukraine’s sovereignty no stranger to controversy / Reuters
“Outrage over China’s ambassador to France questioning the sovereignty of former Soviet countries like Ukraine reverberated across Europe on Monday as Beijing distanced itself from the envoy’s remarks by reaffirming its respect for their status.”
Baltics condemn China envoy’s stance on ex-Soviet nations / AP
“The three Baltic states have strongly condemned comments by China’s envoy to France, who appeared to suggest in a recent French television interview that former Soviet republics aren’t sovereign nations.”
EU ministers say China envoy’s remarks on Ukraine sovereignty unacceptable / Nikkei Asia (paywall)
“Recent remarks by China’s ambassador to France questioning the sovereignty of former Soviet states such as Ukraine are totally unacceptable, several EU foreign ministers said before a meeting on Monday.”
China says it respects sovereignty of ex-Soviet states after EU uproar / Reuters
“China respects the status of former Soviet member states as sovereign nations, its foreign ministry said on Monday, after comments by its envoy to Paris triggered an uproar among European capitals.”
China respects ex-Soviet states as sovereign nations – foreign ministry / Reuters
China affirms ex-Soviet nations’ sovereignty after uproar / AP
China now says it respects sovereignty of ex-Soviet states / Nikkei Asia (paywall)

Latin America
Taiwan or China? Paraguay’s dilemma puts election race in the spotlight / Reuters
“From Paraguayan capital Asuncion to Taipei and Washington, diplomats, officials — and farmers — are closely watching a tight election race that could determine Paraguay’s future ties with Taiwan.”
Guatemala not asking Taiwan for ‘free money’, does not owe debt like Honduras / Reuters
“Guatemala is not asking for ‘free money’ from Taiwan and does not owe debt in the same way Honduras does, but is looking for long-term investment and trade, senior Guatemalan financial officials said on Monday.”

Indo-Pacific
U.S. to strike economic deal with Pacific islands to counter China / Nikkei Asia (paywall)
“From small Pacific island nations to the territory of Guam, the U.S. is increasing its military footprint across the Indo-Pacific to bolster a line of defense against an increasingly assertive China.”

Europe
EU leaders will discuss China relation during June summit / Reuters
“EU leaders will discuss the bloc’s stance towards China and its future relations with the country during their next summit in June, EU Council President Charles Michel said on Monday.”
EU-China ties shouldn’t be viewed through ‘prism of Ukraine crisis’, says top envoy / SCMP (paywall)
“China’s relations with the European Union should not be tied to the war in Ukraine, said China’s top envoy to Brussels.”

Singapore
China, Singapore plan military drills as Beijing forges defense ties / Reuters
“China and Singapore will hold a joint military exercise as soon as this week, their first combined drills since 2021, as Beijing deepens its defense and security ties with Southeast Asia, a region with strong existing U.S. alliances.”

SOCIETY AND CULTURE:

Beijing fire
Hubris and heartache: Behind the tragedy of Beijing’s deadly hospital fire / Caixin (paywall)
“As night fell on April 18th, darkness engulfed the Beijing Changfeng Hospital. Charred beds and blackened walls lined the wards, a terrible reminder of the horror that had befallen the dozens of dead and injured in one of China’s worst hospital fires in recent years.”

• On The China Project: Fire in Beijing hospital leaves at least 29 dead.

Video games
ByteDance, Alibaba and Bilibili titles among 86 new game licenses approved by China regulator in April / SCMP (paywall)
“Beijing approved 86 new games in April, including titles by internet giants ByteDance, Alibaba Group Holding and Bilibili, as the world’s largest video gaming market continues to recover from a long winter.”