Highlighted links for May 11, 2023

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

BUSINESS AND TECHNOLOGY:

Consumer economy
China’s slow consumer inflation, deepening factory gate deflation to test policy / Reuters
“China’s consumer prices rose at the slowest pace in more than two years in April, while factory gate deflation deepened, data showed on Thursday, suggesting more stimulus may be needed to boost a patchy post-COVID economic recovery.”

AI
Google’s ChatGPT rival Bard is still missing in Hong Kong after opening up to 180 countries and territories / SCMP (paywall)
“Google has opened its artificial intelligence (AI) chatbot Bard to ‘over 180 countries and territories around the world,’ but Hong Kong is not among them.”
Macao expo touts Chinese advances in AI and sustainability / Nikkei Asia (paywall)
“More than 600 companies including Chinese giants Alibaba Group Holding and Huawei Technologies convened here to kick off the Beyond Expo technology convention on Wednesday, exhibiting advances in artificial intelligence, sustainable development and other fields.”

Chinese investors
Hong Kong and mainland Chinese authorities plan GBA Wealth Management Connect scheme overhaul, allowing Chinese investors access to global equities / SCMP (paywall)
“Plans are being finalized for upgrading the Wealth Management Connect scheme to include benefits like allowing residents of the Greater Bay Area (GBA) to buy global equity products, said Eddie Yue [余偉文 Yú Wěiwén], chief executive of the Hong Kong Monetary Authority (HKMA) on Tuesday.”

Tourism
Asia’s pandemic recovery hits snag as Chinese tourists retain ‘risk perception’ of overseas travel / SCMP (paywall)
“Southeast Asia’s hopes for a quick rebound in travel and tourism following China’s reopening have hit a speed bump this year over an unexpected snag — fewer Chinese tourists want to venture outside the country’s borders.”

Foreign companies in China
U.S. consulting giant Bain & Company offers China staff 6 months of voluntary leave, sources say / SCMP (paywall)
“U.S. consultancy giant Bain & Company is offering some staff in China the option to take six months’ leave while earning a portion of their regular salaries, according to people familiar with the matter.”
U.S. audit watchdog finds deficiencies in first China inspection / Caixin (paywall)
“The U.S. audit watchdog found ‘unacceptable rates of deficiencies’ in its inspections last year of audits of U.S.-traded Chinese companies, the American agency said in publishing the results of its weeks-long review.”

Company raids in China
‘The full treatment’: China sends a message with raid on consultancy / FT (paywall)
“With the primetime broadcast of a phalanx of officers invading an office in Shanghai and interrogating consultants this week, Beijing sent a clear message — beware of sharing information with foreigners.”
$10,000 an hour bought inside line on China — and now risks jail / WSJ (paywall)
“Capvision’s founders brought a lucrative business model to China: matching investors and other clients with inside sources who were paid up to $10,000 an hour for industry intelligence.”

Beauty industry
Estée Lauder, L’Oréal look to local investments to grow business in China / WSJ (paywall)
“Estée Lauder for years have aimed to boost their business in one of the world’s largest consumer markets, where demand for beauty products is high.”

U.S.-China tech war
China says it will resolutely object if U.S. curbs investment in semiconductor industry / Reuters
“China will resolutely object if the U.S. restricts its firms from investing in Chinese semiconductor industry, said Shù Juétíng 束珏婷, a spokesperson at China’s commerce ministry on Thursday.”
U.S. focuses on invigorating ‘chiplets’ to stay cutting-edge in tech / NYT (paywall)
“Chiplets, a way to design chips for higher performance, has become a key prong of U.S. industrial policy. But pushing for more of this activity domestically is challenging.”
‘De-Americanize’: How China is remaking its chip business / NYT (paywall)
“Seven months after Washington unveiled tough curbs, Chinese companies are doubling down on homegrown supply chains and drawing billions in cash from Beijing and investors.”
Automation giant faces U.S. government probe over China operations / WSJ (paywall)
“The Biden administration is investigating whether Rockwell Automation, one of the world’s largest industrial technology and information companies, is exposing critical U.S. infrastructure, military and other government assets to a potentially serious cyberattack through one of its China-based facilities, according to U.S. officials and documents reviewed by The Wall Street Journal.”

Wage gap
China’s state firms pay more as public-private wage gap hits record 89% / Nikkei Asia (paywall)
“Average pay at Chinese state-owned enterprises was nearly double that of private-sector companies last year, as the government’s policies in response to COVID-19 fueled the widest gap in data going back to 2008.”

Coal
China’s weak industrial recovery is weighing on coal consumption / Caixin (paywall)
“China’s weak property market and sluggish industrial activity are weighing on coal prices even as a spate of government safety checks curbs output.”
Chinese power plants generate better profits amid lower coal prices / Caixin (paywall)
“Chinese power plants are generating improved profitability as sliding coal prices brought down production costs in the first quarter and narrowed losses for coal-fired operations.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Infectious diseases
Why do some bats make better virus hosts than others? A Chinese team investigates / SCMP (paywall)
“A study into what makes some bat species so friendly to viruses — like the new coronavirus that causes COVID-19 — may have important implications for the development of antiviral treatments, according to one of the researchers behind the work.”

Extreme weather
Extreme rainfall is taking a toll on China’s rice crops, and it could get much worse / SCMP (paywall)
“Extreme rainfall has cut China’s rice yields by 8% over the past two decades, according to a study led by Chinese researchers.”

POLITICS AND FOREIGN AFFAIRS:

Xi’s new city of Xiong’an
Xi’s inspection tour in Xiong’an / Ginger River Review
“Few cities, other than perhaps Shanghai and Shenzhen, would receive such frequent visits from the president. This visit is significant as it is likely to dispel doubts that Xiong’an would not live up to its original plan due to the challenges of building an entirely new city on low-lying wetlands and the reluctance of Beijingers to leave their comfortable homes in the capital.”
Xi urges financial institutions to move to new flagship city / Bloomberg (paywall)
“President Xi Jinping has reaffirmed his commitment to creating a dazzling high-tech hub neighboring Beijing, calling on state-owned enterprises and financial institutions to relocate to the flagship city.”

The Economist worries about China’s economy
The fall of empires preys on Xi Jinping’s mind / The Economist (paywall)
“As economic growth slows, so will the president’s anxiety.”
Is Chinese power about to peak? / The Economist (paywall)
“The country’s historic ascent is levelling off. That need not make it more dangerous.”
How soon and at what height will China’s economy peak? / The Economist (paywall)
“Estimates vary, depending on assumptions about population, productivity and prices.”

Transnational pressure and repression
China keeps up campaign to pressure critics abroad despite Western backlash / Reuters
“China is facing a growing backlash from the United States and other Western governments over its controversial efforts to pressure dissidents and their advocates abroad, but Beijing has appeared undeterred.”

Hong Kong
Hong Kong to ban foreign lawyers from national security cases / FT (paywall)
“Hong Kong’s government will be able to bar foreign lawyers from working on national security cases under new legislation, sparking fears about the integrity of the city’s legal system just as the government seeks to restore its international reputation.”

Taiwan
China’s messaging machine tamps down Taiwan war hype / Nikkei Asia (paywall)
“A remarkable conversation is taking place on the internet in China, where the screws of censorship are tightened every year, squeezing freedom of speech. Suddenly, a ban on an all-sides debate over China unifying Taiwan by force appears to have been lifted.”
China seeks to expand Taiwan communications, says No. 4 official / Bloomberg (paywall)
“The Chinese Communist Party’s No. 4 official has pledged to expand his nation’s communications with Taiwan, a self-ruled island that President Xí Jìnpíng 习近平 considers a breakaway province and has vowed to retake by force, if necessary.”

Rights lawyer sentenced to eight years
China hands eight-year jail term to activist at trial barred to diplomats / Reuters
“China sentenced lawyer and prominent rights activist Guō Fēixióng 郭飞雄 to a prison term of eight years on Thursday, with diplomats from several countries saying they were barred from the trial in the southern city of Guangzhou.”

G7
Yellen says G7 members looking at how to counter China’s ‘economic coercion’ / Reuters
“U.S. Treasury Secretary Janet Yellen on Thursday said many members of the Group of Seven advanced economies shared U.S. concerns about China’s use of ‘economic coercion’ against other countries, and were considering how to counter such behavior.”
Yellen urges G-7 to help poorer nations counter China, Russia threats / Nikkei Asia (paywall)
The G7 struggles to find unity over China’s economic bullying / FT (paywall)
“It took a murderous invasion of a neighbor by a belligerent, nuclear-armed state and a geopolitical struggle between superpowers to find the G7 a purpose in life — but it got there in the end.”
China the target of new G-7 push against ‘economic coercion’ / Bloomberg (paywall)
“Group of Seven nations aim to send a signal to China this month by announcing a joint effort to counter ‘economic coercion,’ even as they struggle to agree on more than a broad statement of intent.”

U.S.-China competition and tensions
Why the U.S. delayed China sanctions after shooting down a spy balloon / Reuters
“When an alleged Chinese spy balloon traversed the United States in February, some U.S. officials were confident the incursion would galvanize the U.S. bureaucracy to push forward a slate of actions to counter China.”
China says willing to work with U.S. on audit deal as challenges loom / Reuters
“China’s securities watchdog on Thursday said that it was willing to work with its counterparts in the United States to promote audit regulatory cooperation and safeguard the rights and interests of global investors.”
Judicial scrutiny could sink new Florida law banning Chinese property ownership / SCMP (paywall)
“A new Florida law that restricts property ownership by Chinese citizens might not hold up in court if challenged, legal academics say.”
China pours cold water on bilateral meeting with U.S. defense secretary / FT (paywall)
“China has told the US there is little chance of a meeting between the countries’ defense ministers at a security forum in Singapore due to a dispute over sanctions, the latest obstacle to top-level dialogue between the two powers.”
How the U.S. is trying to block China’s control of ports around the globe / WSJ (paywall)
“U.S. diplomats have been working to counter Beijing’s influence in ports that increase its economic power and could potentially be used for spying and military purposes. This video looks at China’s global network of ports and how the U.S. is working to stop their expansion in key areas. “

France
China, France agree to strengthen economic ties / Reuters
“French Foreign Minister Catherine Colonna and her Chinese counterpart Qín Gāng 秦刚 agreed on the need to ‘develop an economic relationship that is both stronger and more balanced,’ the foreign ministry in Paris said after they met on Wednesday.”
Qin Gang calls for China, France to work together to ‘tackle global challenges’ / SCMP (paywall)

Pakistan
China completes warship deliveries to Pakistan as military alliance grows / Reuters
“China has delivered two frigates to Pakistan’s navy, completing a four-warship deal inked in 2018, Chinese media reported, amid deepening military cooperation between the two nations in one of the world’s most complex geopolitical regions.”

Netherlands
Chinese vice president visits Netherlands, continuing diplomatic push in Europe / AP
“China continues its diplomatic push in Europe on Thursday with a high-level visit to the Netherlands where Vice President Hán Zhèng 韩正 will be meeting the king and the prime minister — and facing questions about its relations with Russia and the European Union.”

Ecuador
China, Ecuador sign free trade agreement, says Chinese commerce ministry / Reuters
“China and Ecuador signed a free trade agreement on May 11, China’s commerce ministry said on Thursday.”
China deepens ties in Latin America with Ecuador free trade agreement / FT (paywall)

Italy
Italy to hold talks with China about exiting Belt and Road Initiative / FT (paywall)
“Italy plans to hold talks with China about a potential exit from Beijing’s flagship infrastructure investment programme, while seeking to maintain friendly relations and robust commercial ties.”

Canada
Canada to compete, collaborate with China: Indo-Pacific envoy / Nikkei Asia (paywall)
“Canada’s newly appointed special envoy for the Indo-Pacific said Wednesday that his country’s strategy is to seek more robust engagement with the ‘fastest growing group of economies in the world’ in order to compete with China on global trade.”

Afghanistan
Reluctant critic China urges Afghan changes on women’s roles / AP
“China on Wednesday called on Afghanistan to reform its radical policies excluding women from education and public life and ‘adopt a more resolute attitude in combating terrorism.’”

Japan
Japan lodges diplomatic protest over Chinese envoy’s ‘pit of fire’ warning on Taiwan / SCMP (paywall)
“Japan has lodged a diplomatic protest with China over the Chinese ambassador to Japan’s warning about Tokyo’s policy towards Taiwan, Kyodo News reported on Wednesday.”

India
India-backed port opens in Myanmar in answer to China corridor project / Caixin (paywall)
“A new port in Myanmar, built with assistance from New Delhi, has begun to receive container ships as both India and China seek closer economic ties with the Southeast Asian country.”
Indian tech’s promise of rivaling China is falling apart / WSJ (paywall)
“The Indian edtech company Byju’s was the poster child of the Asian country’s startup boom, attracting a lofty valuation while meeting the needs of millions of students across the country as the pandemic hurt their access to schools and education.”

Europe
EU needs to watch how China manages its influence, Borrell says / Bloomberg (paywall)
“The European Union shouldn’t prevent China from becoming a world power and should focus instead on managing how Beijing uses its new might, the bloc’s foreign policy chief said.”
China seeks to pry Europe away from Washington / WSJ (paywall)
“China’s foreign minister is crisscrossing Europe this week in a bid to peel the continent away from the growing confrontation between Beijing and Washington, warning that European interests would be harmed by toeing the U.S.’s approach.”

SOCIETY AND CULTURE:

Stolen cultural relics
U.S. returns two stolen relics worth $3.5 million to China / Sixth Tone
“The two stone carvings are believed to have been ripped from a tomb by looters in the 1990s, before being smuggled to the United States where they ended up at the renowned Metropolitan Museum of Art.”