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

BUSINESS AND TECHNOLOGY:

Security raids on foreign businesses in China
China raids offices of business consultancy Capvision / AP
“China’s chief foreign intelligence agency has raided the offices of business consulting firm Capvision in Beijing and other Chinese cities as part of an ongoing crackdown on foreign businesses that provide sensitive economic data.”
China raids Capvision’s Suzhou office in consultancy crackdown / Nikkei Asia (paywall)
China’s crackdown widens as police raid another firm with foreign ties / NYT (paywall)
“The consulting firm Capvision Partners is the latest to be raided in the name of national security, sending a chill through the foreign business community.”
China makes Capvision first public target in anti-spy push: Q&A / Bloomberg (paywall)

Gold
China’s gold buying spree stretches into sixth straight month / Caixin (paywall)
“China expanded its gold reserves in April for a sixth straight month as global central banks add to their bullion holdings as a hedge against inflation and geopolitical risks.”

Forced labor
Shein faces U.S. scrutiny over forced labor in China crackdown / Nikkei Asia (paywall)
“Shein and other e-retailers have become the latest China-linked companies to face the prospect of restrictions in the U.S., as Congress ramps up scrutiny of their labor rights and intellectual property practices.”

Automobile industry
Chinese competition poses greatest risk to Europe’s EV carmakers-Peugeot CEO / Reuters
“Chinese-made electric vehicles pose the greatest threat to Europe’s carmakers, the CEO of French brand Peugeot, part of Stellantis, said on Tuesday.”
China’s EV industry braces for a shakeout as prices plunge / Nikkei Asia (paywall)
“Automakers in China’s highly competitive market for new energy vehicles (NEVs), which include all-electric and hybrid models, have been cutting prices aggressively since late last year as demand softened and the government cut back on subsidies.”
China’s car sales rise 2.1% in April as price war effect fades / Reuters
“China’s passenger vehicle sales rose by 2.1% in April from a month earlier, industry data showed, underscoring a slower pace of growth as the stimulus effect of price cuts and incentives faded.”
China’s new emission rules pressure car dealers to clear stocks / Bloomberg (paywall)
“China will enforce tougher emissions standards for vehicles starting July 1, putting pressure on legacy carmakers and dealers to clear thousands of cars that will soon become non-compliant.”
Can Volkswagen win back China? / FT (paywall)
“The German carmaker has lost its top spot in its most important market as homegrown rivals grab EV market share.”

Economic indicators
Weak Chinese demand pushes iron ore prices to five-month low / FT (paywall)
“Chinese iron ore prices dropped to their lowest levels in five months, as weak demand adds to evidence that the country’s economic rebound from tough coronavirus lockdowns may be faltering.”
China exports up 8.5% in April despite weak global demand / AP
“Chinese exports grew 8.5% in April, customs data showed Tuesday, displaying unexpected strength despite weakening global demand.”
China trade: slowing exports to bottom out in late 2023 amid ‘increasingly clear’ weak demand / SCMP (paywall)
“China’s overseas shipments are set to struggle further, analysts said, after exports grew at a slower pace in April despite a coronavirus-induced low base last year, with the slowdown of imports further accelerating, adding to the uncertainties over the post-Covid economic recovery.”
Falling imports, slow export growth heap pressure on China economy / Nikkei Asia (paywall)
“China’s imports contracted sharply in April, while exports grew at a slower pace, reinforcing signs of feeble domestic demand despite the lifting of COVID curbs and heaping pressure on an economy already struggling in the face of cooling global growth.”

Local economies
China’s local governments look to Middle Eastern funds for investment / FT (paywall)
“Chinese local governments are wooing Middle Eastern and Asian sovereign wealth funds as they struggle to raise money at home to stimulate economic development after the pandemic.”

AI
TikTok’s Chinese sibling Douyin asks creators on the platform to label content generated by AI as Beijing moves to regulate ChatGPT-like tools / SCMP (paywall)
“ByteDance-owned short video app Douyin, the Chinese version of TikTok, has rolled out a new set of rules that require all creators on the platform to label content that was generated by artificial intelligence (AI), as Beijing initiates steps to regulate ChatGPT-like tools.”
China’s AI charge part 3: Short on chips and talent / Caixin (paywall)
“As China’s AI industry develops, companies are facing an imminent challenge — a lack of chips.”
China arrests ChatGPT user who faked deadly train crash story / Bloomberg (paywall)
“Chinese authorities have detained a man for using ChatGPT to write fake news articles, in what appears to be one of the first instances of an arrest related to misuse of artificial intelligence in the nation.”

Chinese outward-bound investment
Chinese investment in Europe drops, except for EV batteries / Caixin (paywall)
“Chinese investment in Europe plunged by more than a fifth last year to a decade low as a shift toward greenfield investments in electric-vehicle (EV) batteries only partially offset a steep decline in mergers and acquisitions, a survey showed.”

Debt restructuring
China debt restructuring reaches impasse, World Bank chief says / Caixin (paywall)
“China is at an impasse in terms of restructuring debts owed to it by developing nations in distress, even after the World Bank made additional efforts to provide ultra-low interest loans and grants to those countries, the anti-poverty lender’s chief said Monday.”

Development and real estate
Hong Kong’s Shui On Land focusing on mainland China’s affluent regions for new projects, prioritizing financial health and strength / SCMP (paywall)
“Shui On Land remains focused on developing projects only in prime locations of Shanghai and other affluent regions on the mainland as the Hong Kong-listed developer de-risks its portfolio.”
How China can cushion the blow from falling land sales revenue / Caixin (paywall)
Concerns are growing in China around the “sustainability of ‘land finance’ — the part of public finances related to local governments’ sale of land-use rights, which has played a huge role in fiscal operations for more than two decades.”
China property crisis has new casualty in Languang delisting / Bloomberg (paywall)
“A distressed Chinese property developer is likely to delist from the country’s stock exchange, sending a fresh reminder the nation’s weaker builders are still struggling to survive.”

LinkedIn
LinkedIn will cut over 700 jobs worldwide and shut its China app / NYT (paywall)
“Microsoft, LinkedIn’s owner, had already pulled the flagship networking site from China in 2021, leaving only a stripped-down app that catered to job seekers.”
LinkedIn cuts 716 jobs, kills app in deepening China pullout / Bloomberg (paywall)

Can Indian manufacturing catch up to China?
China finally has a rival as the world’s factory floor / WSJ (paywall)
“Only India has a labor force and an internal market comparable in size to China’s; India’s population may be the world’s largest, according to the United Nations. Western governments see democratic India as a natural partner, and the Indian government has pushed to make the business environment more friendly than in the past.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Climate change
We can’t solve the climate crisis without China, head of German environment body says / SCMP (paywall)
“China and Germany may have differing views on coal but they can still learn from each other on decarbonizing industry, according to the head of the German Environment Agency.”

Fertility
Chinese woman seeking to freeze her eggs makes final appeal in Beijing court / Reuters
A 35-year old Chinese woman “began her final appeal in a Beijing court on Tuesday, where she is suing a public hospital in the Chinese capital for violating her rights by refusing to freeze her eggs because she is unmarried.”
Chinese woman appeals in fight for right to freeze her eggs / AP

Renewable energy
China’s supercharged new-energy sector is propping up exports, but will it last? / SCMP (paywall)
“For tens of millions of workers in China’s massive export sector, the surprising 14.8 per cent year-on-year growth in shipments in March is nothing but a figure when – as they see it – empty containers have been piling up at ports for months, and small manufacturers have struggled to stay afloat. But the new-energy industry seems to be an exception.”
China’s newly installed solar capacity, module exports jump in Q1 / Nikkei Asia (paywall)
“China saw robust growth in newly installed solar power capacity and exports of photovoltaic modules in the first quarter as supply chain prices continued to fall and strong demand from home and abroad, especially Europe, bolstered shipments.”

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
What sidelined China’s once powerful Communist Youth League? / SCMP (paywall)
“For decades, the Communist Youth League, whose membership ranges in age from 14 and 28, has been regarded as a nursery for the Party’s future political stars, many of whom have ascended to top positions among the country’s political elite. But in the politics of today’s China, the once powerful youth organization appears to matter much less than it used to, as its influence and political significance recede.”

Hong Kong
Hong Kong wants more tourists, but mostly ‘good quality’ ones, please / NYT (paywall)
“The return of budget tour groups from mainland China is sparking frustrations — and a dose of snobbery — in a city starved for business.”

Taiwan
How China’s echo chamber threatens Taiwan / Foreign Policy (paywall)
“The main factor that will determine whether Washington and Beijing come to blows over Taiwan is not necessarily Xi’s strategy for unification but the idiosyncrasies of China’s political system.”

U.S.-China competition and tensions
Ron DeSantis is banning Chinese citizens from buying land in Florida, accusing China of taking up swathes of farmland: ‘We don’t want the CCP in the Sunshine State’ / Business Insider
“Florida Gov. Ron DeSantis signed a bill into law on Monday that bans most Chinese citizens from purchasing land in his state. The new bill, SB 246, prevents Chinese nationals from buying land in Florida unless they are also American citizens or permanent residents.”

U.K.
British ex-premier Truss to visit Taiwan next week / Reuters
“Former British prime minister Liz Truss will visit Taiwan next week and meet senior members of the government, her office said on Tuesday, as she makes a case for Western democracies to toughen their stance towards China.”
U.K. official visits Hong Kong after years of strained ties / AP
British investment minister visits Hong Kong, first official visit in 5 years / Reuters
“Britain’s Minister for Investment Dominic Johnson said he held a series of meetings with government officials and executives in Hong Kong this week, the first official visit from a senior British official to the city in five years.”
U.K. official Dominic Johnson’s visit shows Hong Kong values cooperation, John Lee says, but warns of ‘certain countries’ acting to ‘serve political interests’ / SCMP (paywall)

Canada
Canada expels China diplomat for alleged threats to lawmaker / AP
“The Canadian government is expelling a Chinese diplomat whom Canada’s spy agency alleged was involved in a plot to intimidate an opposition lawmaker and his relatives in Hong Kong.”
China to expel Canadian diplomat in Shanghai as reciprocal measure / Reuters
“China’s foreign ministry said on Tuesday that it will expel a diplomat in Canada’s Shanghai Consulate as a reciprocal countermeasure, according to a statement on its website.”
China expels Canadian diplomat in tit-for-tat response / AP
Canadian diplomat ‘persona non grata’ in China as row escalates / SCMP (paywall) China-Canada ties sour over tit-for-tat diplomatic expulsions / Nikkei Asia (paywall)
China orders Canadian diplomat to leave in tit-for-tat move / Bloomberg (paywall)

Australia and New Zealand
Australian journalist nears 1,000 days in detention in China on state secrets charge / Reuters
“Politicians, business people and friends of Australian journalist Cheng Lei, who will reach 1,000 days of detention in Beijing on Wednesday, called for a faster resolution of her case as diplomatic ties between the trade partners stabilize.”

Pakistan
Pakistan reassures China on security as terror attacks rise / Yahoo News
“Pakistan reassured China its investments and personnel in the country will be protected from increased militant attacks that hindered progress on President Xi Jinping’s flagship Belt and Road Initiative.”

Europe
EU must reduce risks in China relations without cutting ties – Scholz / Reuters
“The European Union should reduce risks in its relations with China as Beijing is becoming increasingly assertive in competing with the 27-nation bloc, German Chancellor Olaf Scholz said on Tuesday.”
EU plans to sanction China companies aiding Russia war machine / Nikkei Asia (paywall)
“Brussels has proposed sanctions on Chinese companies for supporting Russia’s war machine for the first time since the war in Ukraine began, a development that is likely to increase tensions with Beijing.”

SOCIETY AND CULTURE:

Internet cafes
Net Nostalgia: Remembering the glory days of China’s internet cafes / The World of Chinese (paywall)
“For many Chinese born in the 1980s and ‘90s…internet cafes, or wǎngbā 网吧 in Chinese, with their distinctive atmosphere and memorable sensual experience, were an important part of their youth.”

Chinese social media
Who are the 8 fastest rising beauty KOLs on Xiaohongshu? / Jing Daily
“Founded in 2013, the community-review-based lifestyle platform has become a search engine for its 200 million monthly active users. This is particularly true when it comes to beauty. According to the site, 87 percent of Xiaohongshu’s beauty users use it as their primary channel to learn about new beauty brands and products.”

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

BUSINESS AND TECHNOLOGY:

Security raids on foreign businesses in China
China raids offices of business consultancy Capvision / AP
“China’s chief foreign intelligence agency has raided the offices of business consulting firm Capvision in Beijing and other Chinese cities as part of an ongoing crackdown on foreign businesses that provide sensitive economic data.”
China raids Capvision’s Suzhou office in consultancy crackdown / Nikkei Asia (paywall)
China’s crackdown widens as police raid another firm with foreign ties / NYT (paywall)
“The consulting firm Capvision Partners is the latest to be raided in the name of national security, sending a chill through the foreign business community.”
China makes Capvision first public target in anti-spy push: Q&A / Bloomberg (paywall)

Gold
China’s gold buying spree stretches into sixth straight month / Caixin (paywall)
“China expanded its gold reserves in April for a sixth straight month as global central banks add to their bullion holdings as a hedge against inflation and geopolitical risks.”

Forced labor
Shein faces U.S. scrutiny over forced labor in China crackdown / Nikkei Asia (paywall)
“Shein and other e-retailers have become the latest China-linked companies to face the prospect of restrictions in the U.S., as Congress ramps up scrutiny of their labor rights and intellectual property practices.”

Automobile industry
Chinese competition poses greatest risk to Europe’s EV carmakers-Peugeot CEO / Reuters
“Chinese-made electric vehicles pose the greatest threat to Europe’s carmakers, the CEO of French brand Peugeot, part of Stellantis, said on Tuesday.”
China’s EV industry braces for a shakeout as prices plunge / Nikkei Asia (paywall)
“Automakers in China’s highly competitive market for new energy vehicles (NEVs), which include all-electric and hybrid models, have been cutting prices aggressively since late last year as demand softened and the government cut back on subsidies.”
China’s car sales rise 2.1% in April as price war effect fades / Reuters
“China’s passenger vehicle sales rose by 2.1% in April from a month earlier, industry data showed, underscoring a slower pace of growth as the stimulus effect of price cuts and incentives faded.”
China’s new emission rules pressure car dealers to clear stocks / Bloomberg (paywall)
“China will enforce tougher emissions standards for vehicles starting July 1, putting pressure on legacy carmakers and dealers to clear thousands of cars that will soon become non-compliant.”
Can Volkswagen win back China? / FT (paywall)
“The German carmaker has lost its top spot in its most important market as homegrown rivals grab EV market share.”

Economic indicators
Weak Chinese demand pushes iron ore prices to five-month low / FT (paywall)
“Chinese iron ore prices dropped to their lowest levels in five months, as weak demand adds to evidence that the country’s economic rebound from tough coronavirus lockdowns may be faltering.”
China exports up 8.5% in April despite weak global demand / AP
“Chinese exports grew 8.5% in April, customs data showed Tuesday, displaying unexpected strength despite weakening global demand.”
China trade: slowing exports to bottom out in late 2023 amid ‘increasingly clear’ weak demand / SCMP (paywall)
“China’s overseas shipments are set to struggle further, analysts said, after exports grew at a slower pace in April despite a coronavirus-induced low base last year, with the slowdown of imports further accelerating, adding to the uncertainties over the post-Covid economic recovery.”
Falling imports, slow export growth heap pressure on China economy / Nikkei Asia (paywall)
“China’s imports contracted sharply in April, while exports grew at a slower pace, reinforcing signs of feeble domestic demand despite the lifting of COVID curbs and heaping pressure on an economy already struggling in the face of cooling global growth.”

Local economies
China’s local governments look to Middle Eastern funds for investment / FT (paywall)
“Chinese local governments are wooing Middle Eastern and Asian sovereign wealth funds as they struggle to raise money at home to stimulate economic development after the pandemic.”

AI
TikTok’s Chinese sibling Douyin asks creators on the platform to label content generated by AI as Beijing moves to regulate ChatGPT-like tools / SCMP (paywall)
“ByteDance-owned short video app Douyin, the Chinese version of TikTok, has rolled out a new set of rules that require all creators on the platform to label content that was generated by artificial intelligence (AI), as Beijing initiates steps to regulate ChatGPT-like tools.”
China’s AI charge part 3: Short on chips and talent / Caixin (paywall)
“As China’s AI industry develops, companies are facing an imminent challenge — a lack of chips.”
China arrests ChatGPT user who faked deadly train crash story / Bloomberg (paywall)
“Chinese authorities have detained a man for using ChatGPT to write fake news articles, in what appears to be one of the first instances of an arrest related to misuse of artificial intelligence in the nation.”

Chinese outward-bound investment
Chinese investment in Europe drops, except for EV batteries / Caixin (paywall)
“Chinese investment in Europe plunged by more than a fifth last year to a decade low as a shift toward greenfield investments in electric-vehicle (EV) batteries only partially offset a steep decline in mergers and acquisitions, a survey showed.”

Debt restructuring
China debt restructuring reaches impasse, World Bank chief says / Caixin (paywall)
“China is at an impasse in terms of restructuring debts owed to it by developing nations in distress, even after the World Bank made additional efforts to provide ultra-low interest loans and grants to those countries, the anti-poverty lender’s chief said Monday.”

Development and real estate
Hong Kong’s Shui On Land focusing on mainland China’s affluent regions for new projects, prioritizing financial health and strength / SCMP (paywall)
“Shui On Land remains focused on developing projects only in prime locations of Shanghai and other affluent regions on the mainland as the Hong Kong-listed developer de-risks its portfolio.”
How China can cushion the blow from falling land sales revenue / Caixin (paywall)
Concerns are growing in China around the “sustainability of ‘land finance’ — the part of public finances related to local governments’ sale of land-use rights, which has played a huge role in fiscal operations for more than two decades.”
China property crisis has new casualty in Languang delisting / Bloomberg (paywall)
“A distressed Chinese property developer is likely to delist from the country’s stock exchange, sending a fresh reminder the nation’s weaker builders are still struggling to survive.”

LinkedIn
LinkedIn will cut over 700 jobs worldwide and shut its China app / NYT (paywall)
“Microsoft, LinkedIn’s owner, had already pulled the flagship networking site from China in 2021, leaving only a stripped-down app that catered to job seekers.”
LinkedIn cuts 716 jobs, kills app in deepening China pullout / Bloomberg (paywall)

Can Indian manufacturing catch up to China?
China finally has a rival as the world’s factory floor / WSJ (paywall)
“Only India has a labor force and an internal market comparable in size to China’s; India’s population may be the world’s largest, according to the United Nations. Western governments see democratic India as a natural partner, and the Indian government has pushed to make the business environment more friendly than in the past.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Climate change
We can’t solve the climate crisis without China, head of German environment body says / SCMP (paywall)
“China and Germany may have differing views on coal but they can still learn from each other on decarbonizing industry, according to the head of the German Environment Agency.”

Fertility
Chinese woman seeking to freeze her eggs makes final appeal in Beijing court / Reuters
A 35-year old Chinese woman “began her final appeal in a Beijing court on Tuesday, where she is suing a public hospital in the Chinese capital for violating her rights by refusing to freeze her eggs because she is unmarried.”
Chinese woman appeals in fight for right to freeze her eggs / AP

Renewable energy
China’s supercharged new-energy sector is propping up exports, but will it last? / SCMP (paywall)
“For tens of millions of workers in China’s massive export sector, the surprising 14.8 per cent year-on-year growth in shipments in March is nothing but a figure when – as they see it – empty containers have been piling up at ports for months, and small manufacturers have struggled to stay afloat. But the new-energy industry seems to be an exception.”
China’s newly installed solar capacity, module exports jump in Q1 / Nikkei Asia (paywall)
“China saw robust growth in newly installed solar power capacity and exports of photovoltaic modules in the first quarter as supply chain prices continued to fall and strong demand from home and abroad, especially Europe, bolstered shipments.”

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
What sidelined China’s once powerful Communist Youth League? / SCMP (paywall)
“For decades, the Communist Youth League, whose membership ranges in age from 14 and 28, has been regarded as a nursery for the Party’s future political stars, many of whom have ascended to top positions among the country’s political elite. But in the politics of today’s China, the once powerful youth organization appears to matter much less than it used to, as its influence and political significance recede.”

Hong Kong
Hong Kong wants more tourists, but mostly ‘good quality’ ones, please / NYT (paywall)
“The return of budget tour groups from mainland China is sparking frustrations — and a dose of snobbery — in a city starved for business.”

Taiwan
How China’s echo chamber threatens Taiwan / Foreign Policy (paywall)
“The main factor that will determine whether Washington and Beijing come to blows over Taiwan is not necessarily Xi’s strategy for unification but the idiosyncrasies of China’s political system.”

U.S.-China competition and tensions
Ron DeSantis is banning Chinese citizens from buying land in Florida, accusing China of taking up swathes of farmland: ‘We don’t want the CCP in the Sunshine State’ / Business Insider
“Florida Gov. Ron DeSantis signed a bill into law on Monday that bans most Chinese citizens from purchasing land in his state. The new bill, SB 246, prevents Chinese nationals from buying land in Florida unless they are also American citizens or permanent residents.”

U.K.
British ex-premier Truss to visit Taiwan next week / Reuters
“Former British prime minister Liz Truss will visit Taiwan next week and meet senior members of the government, her office said on Tuesday, as she makes a case for Western democracies to toughen their stance towards China.”
U.K. official visits Hong Kong after years of strained ties / AP
British investment minister visits Hong Kong, first official visit in 5 years / Reuters
“Britain’s Minister for Investment Dominic Johnson said he held a series of meetings with government officials and executives in Hong Kong this week, the first official visit from a senior British official to the city in five years.”
U.K. official Dominic Johnson’s visit shows Hong Kong values cooperation, John Lee says, but warns of ‘certain countries’ acting to ‘serve political interests’ / SCMP (paywall)

Canada
Canada expels China diplomat for alleged threats to lawmaker / AP
“The Canadian government is expelling a Chinese diplomat whom Canada’s spy agency alleged was involved in a plot to intimidate an opposition lawmaker and his relatives in Hong Kong.”
China to expel Canadian diplomat in Shanghai as reciprocal measure / Reuters
“China’s foreign ministry said on Tuesday that it will expel a diplomat in Canada’s Shanghai Consulate as a reciprocal countermeasure, according to a statement on its website.”
China expels Canadian diplomat in tit-for-tat response / AP
Canadian diplomat ‘persona non grata’ in China as row escalates / SCMP (paywall) China-Canada ties sour over tit-for-tat diplomatic expulsions / Nikkei Asia (paywall)
China orders Canadian diplomat to leave in tit-for-tat move / Bloomberg (paywall)

Australia and New Zealand
Australian journalist nears 1,000 days in detention in China on state secrets charge / Reuters
“Politicians, business people and friends of Australian journalist Cheng Lei, who will reach 1,000 days of detention in Beijing on Wednesday, called for a faster resolution of her case as diplomatic ties between the trade partners stabilize.”

Pakistan
Pakistan reassures China on security as terror attacks rise / Yahoo News
“Pakistan reassured China its investments and personnel in the country will be protected from increased militant attacks that hindered progress on President Xi Jinping’s flagship Belt and Road Initiative.”

Europe
EU must reduce risks in China relations without cutting ties – Scholz / Reuters
“The European Union should reduce risks in its relations with China as Beijing is becoming increasingly assertive in competing with the 27-nation bloc, German Chancellor Olaf Scholz said on Tuesday.”
EU plans to sanction China companies aiding Russia war machine / Nikkei Asia (paywall)
“Brussels has proposed sanctions on Chinese companies for supporting Russia’s war machine for the first time since the war in Ukraine began, a development that is likely to increase tensions with Beijing.”

SOCIETY AND CULTURE:

Internet cafes
Net Nostalgia: Remembering the glory days of China’s internet cafes / The World of Chinese (paywall)
“For many Chinese born in the 1980s and ‘90s…internet cafes, or wǎngbā 网吧 in Chinese, with their distinctive atmosphere and memorable sensual experience, were an important part of their youth.”

Chinese social media
Who are the 8 fastest rising beauty KOLs on Xiaohongshu? / Jing Daily
“Founded in 2013, the community-review-based lifestyle platform has become a search engine for its 200 million monthly active users. This is particularly true when it comes to beauty. According to the site, 87 percent of Xiaohongshu’s beauty users use it as their primary channel to learn about new beauty brands and products.”

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

BUSINESS AND TECHNOLOGY:

Security raids on foreign businesses in China
China raids offices of business consultancy Capvision / AP
“China’s chief foreign intelligence agency has raided the offices of business consulting firm Capvision in Beijing and other Chinese cities as part of an ongoing crackdown on foreign businesses that provide sensitive economic data.”
China raids Capvision’s Suzhou office in consultancy crackdown / Nikkei Asia (paywall)
China’s crackdown widens as police raid another firm with foreign ties / NYT (paywall)
“The consulting firm Capvision Partners is the latest to be raided in the name of national security, sending a chill through the foreign business community.”
China makes Capvision first public target in anti-spy push: Q&A / Bloomberg (paywall)

Gold
China’s gold buying spree stretches into sixth straight month / Caixin (paywall)
“China expanded its gold reserves in April for a sixth straight month as global central banks add to their bullion holdings as a hedge against inflation and geopolitical risks.”

Forced labor
Shein faces U.S. scrutiny over forced labor in China crackdown / Nikkei Asia (paywall)
“Shein and other e-retailers have become the latest China-linked companies to face the prospect of restrictions in the U.S., as Congress ramps up scrutiny of their labor rights and intellectual property practices.”

Automobile industry
Chinese competition poses greatest risk to Europe’s EV carmakers-Peugeot CEO / Reuters
“Chinese-made electric vehicles pose the greatest threat to Europe’s carmakers, the CEO of French brand Peugeot, part of Stellantis, said on Tuesday.”
China’s EV industry braces for a shakeout as prices plunge / Nikkei Asia (paywall)
“Automakers in China’s highly competitive market for new energy vehicles (NEVs), which include all-electric and hybrid models, have been cutting prices aggressively since late last year as demand softened and the government cut back on subsidies.”
China’s car sales rise 2.1% in April as price war effect fades / Reuters
“China’s passenger vehicle sales rose by 2.1% in April from a month earlier, industry data showed, underscoring a slower pace of growth as the stimulus effect of price cuts and incentives faded.”
China’s new emission rules pressure car dealers to clear stocks / Bloomberg (paywall)
“China will enforce tougher emissions standards for vehicles starting July 1, putting pressure on legacy carmakers and dealers to clear thousands of cars that will soon become non-compliant.”
Can Volkswagen win back China? / FT (paywall)
“The German carmaker has lost its top spot in its most important market as homegrown rivals grab EV market share.”

Economic indicators
Weak Chinese demand pushes iron ore prices to five-month low / FT (paywall)
“Chinese iron ore prices dropped to their lowest levels in five months, as weak demand adds to evidence that the country’s economic rebound from tough coronavirus lockdowns may be faltering.”
China exports up 8.5% in April despite weak global demand / AP
“Chinese exports grew 8.5% in April, customs data showed Tuesday, displaying unexpected strength despite weakening global demand.”
China trade: slowing exports to bottom out in late 2023 amid ‘increasingly clear’ weak demand / SCMP (paywall)
“China’s overseas shipments are set to struggle further, analysts said, after exports grew at a slower pace in April despite a coronavirus-induced low base last year, with the slowdown of imports further accelerating, adding to the uncertainties over the post-Covid economic recovery.”
Falling imports, slow export growth heap pressure on China economy / Nikkei Asia (paywall)
“China’s imports contracted sharply in April, while exports grew at a slower pace, reinforcing signs of feeble domestic demand despite the lifting of COVID curbs and heaping pressure on an economy already struggling in the face of cooling global growth.”

Local economies
China’s local governments look to Middle Eastern funds for investment / FT (paywall)
“Chinese local governments are wooing Middle Eastern and Asian sovereign wealth funds as they struggle to raise money at home to stimulate economic development after the pandemic.”

AI
TikTok’s Chinese sibling Douyin asks creators on the platform to label content generated by AI as Beijing moves to regulate ChatGPT-like tools / SCMP (paywall)
“ByteDance-owned short video app Douyin, the Chinese version of TikTok, has rolled out a new set of rules that require all creators on the platform to label content that was generated by artificial intelligence (AI), as Beijing initiates steps to regulate ChatGPT-like tools.”
China’s AI charge part 3: Short on chips and talent / Caixin (paywall)
“As China’s AI industry develops, companies are facing an imminent challenge — a lack of chips.”
China arrests ChatGPT user who faked deadly train crash story / Bloomberg (paywall)
“Chinese authorities have detained a man for using ChatGPT to write fake news articles, in what appears to be one of the first instances of an arrest related to misuse of artificial intelligence in the nation.”

Chinese outward-bound investment
Chinese investment in Europe drops, except for EV batteries / Caixin (paywall)
“Chinese investment in Europe plunged by more than a fifth last year to a decade low as a shift toward greenfield investments in electric-vehicle (EV) batteries only partially offset a steep decline in mergers and acquisitions, a survey showed.”

Debt restructuring
China debt restructuring reaches impasse, World Bank chief says / Caixin (paywall)
“China is at an impasse in terms of restructuring debts owed to it by developing nations in distress, even after the World Bank made additional efforts to provide ultra-low interest loans and grants to those countries, the anti-poverty lender’s chief said Monday.”

Development and real estate
Hong Kong’s Shui On Land focusing on mainland China’s affluent regions for new projects, prioritizing financial health and strength / SCMP (paywall)
“Shui On Land remains focused on developing projects only in prime locations of Shanghai and other affluent regions on the mainland as the Hong Kong-listed developer de-risks its portfolio.”
How China can cushion the blow from falling land sales revenue / Caixin (paywall)
Concerns are growing in China around the “sustainability of ‘land finance’ — the part of public finances related to local governments’ sale of land-use rights, which has played a huge role in fiscal operations for more than two decades.”
China property crisis has new casualty in Languang delisting / Bloomberg (paywall)
“A distressed Chinese property developer is likely to delist from the country’s stock exchange, sending a fresh reminder the nation’s weaker builders are still struggling to survive.”

LinkedIn
LinkedIn will cut over 700 jobs worldwide and shut its China app / NYT (paywall)
“Microsoft, LinkedIn’s owner, had already pulled the flagship networking site from China in 2021, leaving only a stripped-down app that catered to job seekers.”
LinkedIn cuts 716 jobs, kills app in deepening China pullout / Bloomberg (paywall)

Can Indian manufacturing catch up to China?
China finally has a rival as the world’s factory floor / WSJ (paywall)
“Only India has a labor force and an internal market comparable in size to China’s; India’s population may be the world’s largest, according to the United Nations. Western governments see democratic India as a natural partner, and the Indian government has pushed to make the business environment more friendly than in the past.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Climate change
We can’t solve the climate crisis without China, head of German environment body says / SCMP (paywall)
“China and Germany may have differing views on coal but they can still learn from each other on decarbonizing industry, according to the head of the German Environment Agency.”

Fertility
Chinese woman seeking to freeze her eggs makes final appeal in Beijing court / Reuters
A 35-year old Chinese woman “began her final appeal in a Beijing court on Tuesday, where she is suing a public hospital in the Chinese capital for violating her rights by refusing to freeze her eggs because she is unmarried.”
Chinese woman appeals in fight for right to freeze her eggs / AP

Renewable energy
China’s supercharged new-energy sector is propping up exports, but will it last? / SCMP (paywall)
“For tens of millions of workers in China’s massive export sector, the surprising 14.8 per cent year-on-year growth in shipments in March is nothing but a figure when – as they see it – empty containers have been piling up at ports for months, and small manufacturers have struggled to stay afloat. But the new-energy industry seems to be an exception.”
China’s newly installed solar capacity, module exports jump in Q1 / Nikkei Asia (paywall)
“China saw robust growth in newly installed solar power capacity and exports of photovoltaic modules in the first quarter as supply chain prices continued to fall and strong demand from home and abroad, especially Europe, bolstered shipments.”

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
What sidelined China’s once powerful Communist Youth League? / SCMP (paywall)
“For decades, the Communist Youth League, whose membership ranges in age from 14 and 28, has been regarded as a nursery for the Party’s future political stars, many of whom have ascended to top positions among the country’s political elite. But in the politics of today’s China, the once powerful youth organization appears to matter much less than it used to, as its influence and political significance recede.”

Hong Kong
Hong Kong wants more tourists, but mostly ‘good quality’ ones, please / NYT (paywall)
“The return of budget tour groups from mainland China is sparking frustrations — and a dose of snobbery — in a city starved for business.”

Taiwan
How China’s echo chamber threatens Taiwan / Foreign Policy (paywall)
“The main factor that will determine whether Washington and Beijing come to blows over Taiwan is not necessarily Xi’s strategy for unification but the idiosyncrasies of China’s political system.”

U.S.-China competition and tensions
Ron DeSantis is banning Chinese citizens from buying land in Florida, accusing China of taking up swathes of farmland: ‘We don’t want the CCP in the Sunshine State’ / Business Insider
“Florida Gov. Ron DeSantis signed a bill into law on Monday that bans most Chinese citizens from purchasing land in his state. The new bill, SB 246, prevents Chinese nationals from buying land in Florida unless they are also American citizens or permanent residents.”

U.K.
British ex-premier Truss to visit Taiwan next week / Reuters
“Former British prime minister Liz Truss will visit Taiwan next week and meet senior members of the government, her office said on Tuesday, as she makes a case for Western democracies to toughen their stance towards China.”
U.K. official visits Hong Kong after years of strained ties / AP
British investment minister visits Hong Kong, first official visit in 5 years / Reuters
“Britain’s Minister for Investment Dominic Johnson said he held a series of meetings with government officials and executives in Hong Kong this week, the first official visit from a senior British official to the city in five years.”
U.K. official Dominic Johnson’s visit shows Hong Kong values cooperation, John Lee says, but warns of ‘certain countries’ acting to ‘serve political interests’ / SCMP (paywall)

Canada
Canada expels China diplomat for alleged threats to lawmaker / AP
“The Canadian government is expelling a Chinese diplomat whom Canada’s spy agency alleged was involved in a plot to intimidate an opposition lawmaker and his relatives in Hong Kong.”
China to expel Canadian diplomat in Shanghai as reciprocal measure / Reuters
“China’s foreign ministry said on Tuesday that it will expel a diplomat in Canada’s Shanghai Consulate as a reciprocal countermeasure, according to a statement on its website.”
China expels Canadian diplomat in tit-for-tat response / AP
Canadian diplomat ‘persona non grata’ in China as row escalates / SCMP (paywall) China-Canada ties sour over tit-for-tat diplomatic expulsions / Nikkei Asia (paywall)
China orders Canadian diplomat to leave in tit-for-tat move / Bloomberg (paywall)

Australia and New Zealand
Australian journalist nears 1,000 days in detention in China on state secrets charge / Reuters
“Politicians, business people and friends of Australian journalist Cheng Lei, who will reach 1,000 days of detention in Beijing on Wednesday, called for a faster resolution of her case as diplomatic ties between the trade partners stabilize.”

Pakistan
Pakistan reassures China on security as terror attacks rise / Yahoo News
“Pakistan reassured China its investments and personnel in the country will be protected from increased militant attacks that hindered progress on President Xi Jinping’s flagship Belt and Road Initiative.”

Europe
EU must reduce risks in China relations without cutting ties – Scholz / Reuters
“The European Union should reduce risks in its relations with China as Beijing is becoming increasingly assertive in competing with the 27-nation bloc, German Chancellor Olaf Scholz said on Tuesday.”
EU plans to sanction China companies aiding Russia war machine / Nikkei Asia (paywall)
“Brussels has proposed sanctions on Chinese companies for supporting Russia’s war machine for the first time since the war in Ukraine began, a development that is likely to increase tensions with Beijing.”

SOCIETY AND CULTURE:

Internet cafes
Net Nostalgia: Remembering the glory days of China’s internet cafes / The World of Chinese (paywall)
“For many Chinese born in the 1980s and ‘90s…internet cafes, or wǎngbā 网吧 in Chinese, with their distinctive atmosphere and memorable sensual experience, were an important part of their youth.”

Chinese social media
Who are the 8 fastest rising beauty KOLs on Xiaohongshu? / Jing Daily
“Founded in 2013, the community-review-based lifestyle platform has become a search engine for its 200 million monthly active users. This is particularly true when it comes to beauty. According to the site, 87 percent of Xiaohongshu’s beauty users use it as their primary channel to learn about new beauty brands and products.”