Highlighted links for May 15, 2023

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

BUSINESS AND TECHNOLOGY:

A woman takes charge at JD.com
JD.com finance chief takes the helm as firm’s first female CEO / Sixth Tone
“Chinese e-commerce giant JD.com has appointed its finance chief Xǔ Rǎn 许冉 as its next CEO, making her one of the first women to lead a top tech firm in the country.”

Mixed economic recovery
Triangular debt troubles China’s SMEs once more as economy’s post-COVID recovery struggles to gain traction / SCMP (paywall)
“Triangular debt, a problem that first troubled China’s economy over three decades ago, has resurfaced as the country’s post-pandemic recovery is challenged by weak demand at home and abroad.”
China aims to cook up job growth with return of street-stall economy / Nikkei Asia (paywall)
“China’s major cities have once again embraced hawkers after years of trying to clear them from streets, hoping the so-called street-stall economy will boost sluggish recovery in job growth and spending since the end of zero-COVID restrictions.”
China’s economy is leaving behind its educated young people / WSJ (paywall)
“The government faces rising discontent as vast numbers of graduates find no place for their skills in the job market.”

The new city of Xiongan
Strict city planning, lack of dynamism could limit Xiongan’s growth before it’s even finished / SCMP (paywall)
“Is Xiongan a new Pudong or a Potemkin? Is it the latest Shenzhen or just a Shangri-la? President Xí Jìnpíng 习近平 took a bullish attitude during his recent inspection of the city-in-progress, describing it as ‘sophisticated’ and ‘a miracle.’”

Labor shortage
China’s migrant workers stay closer to home, causing labor crunch / Nikkei Asia (paywall)
“Official data revealed a decline in Chinese migrants working outside their home provinces last year compared to 2021, while there was an increase in rural workers entering the service sector. The shifts have sparked concerns about a long-term labor shortage in the manufacturing sector.”

Disney
Hong Kong Disneyland revenue jumps 31% as domestic visitors hit record / Reuters
“Hong Kong Disneyland Resort (HKDL) said on Monday its 2022 revenue jumped 31% as the number of domestic visitors to its attractions hit a record, helping the company shrug off the effects of pandemic-related restrictions.”
Hong Kong Disneyland Resort records net loss of HK$2.1 billion, 12% lower year on year as management voices confidence in recovery / SCMP (paywall)

Cruises
Royal Caribbean will send Anthem of the Seas to Asia for the first time / Royal Caribbean
“Spectrum of the Seas will shift to China, where she will sail from Shanghai and re-open China and Far East cruises for Royal Caribbean. Spectrum will begin sailing from Shanghai, China in April 2024.”

Electric vehicles
Chinese EV battery firms Eve Energy, Anhwa to build plants in Southeast Asia, joining big guns in expanding abroad amid domestic market slowdown / SCMP (paywall)
“​​Two of China’s smaller electric vehicle (EV) battery producers have announced plans to build plants in Southeast Asia, as they join their bigger domestic competitors in tapping markets elsewhere amid lackluster demand for electric cars in mainland China.”
Tesla to fix brake software in more than 1.1 million cars in China / WSJ (paywall)
“Drivers run a higher risk of stepping on the accelerator by mistake due to deficiencies in regenerative braking features, authorities say.”
China orders Tesla to recall 1.1 million vehicles over braking risks / NYT (paywall)

Ford lays off workers in China
Ford says it will reduce costs to boost China business​​ / Reuters
“Ford said on Monday it was working to reduce costs in China as it strives to recover from a long sales slump in the world’s largest auto market.”
Ford seen laying off 1,300 workers in China, local media reports / Bloomberg (paywall)

Foreign investors
China is scaring away foreign investors that its cities want / Bloomberg (paywall)
“China’s unpredictable policy making is deterring foreign investment that the country’s cash-strapped cities are desperate to entice.”

Semiconductors
Chinese smartphone maker Oppo abruptly closes chip design unit Zeku, another casualty in semiconductor sufficiency drive / SCMP (paywall)
“Chinese smartphone maker Oppo has abruptly closed down its chip design subsidiary, Zeku, to the shock of employees, according to the company and former workers, in a new cautionary tale for Chinese businesses pursuing the government’s drive for semiconductor self-sufficiency.”
China’s Oppo to cease chip development amid smartphone gloom / Nikkei Asia (paywall) China’s SMIC foresees better Q2 on rush of domestic chip orders / Nikkei Asia (paywall)
“China’s biggest chipmaker says a rush of urgent orders from new domestic clients will give its earnings a boost in the second quarter but warns that the outlook for the chip industry this year remains murky.”

Patent law
China’s top 7 typical patent civil cases heard by the intellectual property court of the Supreme People’s Court in 2022 / Lexology
“On March 30, 2023, the Supreme People’s Court on its official website issued the ‘Typical Cases Heard by the Intellectual Property Court of the Supreme People’s Court (or SPC-IPC) (in 2022),’ which include 20 cases selected from 3,468 technology-related IP lawsuits and monopoly disputes closed in 2022.”

Exports
Chinese exporters turn toward emerging markets / Caixin (paywall)
“Qingdao port in eastern China opened 38 new routes in the past year, mostly to emerging countries along the route of China’s Belt and Road initiative. The new routes have helped to propel Qingdao to become China’s third largest container port after Shanghai and Zhoushan, handling nearly 7 million 20-foot equivalent units (TEUs) in the first quarter, an increase of 16.6% from a year earlier.”

Cosco in Germany
Cosco cleared for stake in Hamburg terminal / Caixin (paywall)
“The German government cleared the way for state-owned China Cosco Shipping Corp. Ltd.’s acquisition of a minority stake in a Hamburg container terminal, Hamburg port logistics company Hamburger Hafen und Logistik said Wednesday.”

Consultancy firms in China
Consultancy firms in China tested limits before Beijing’s crackdown / Reuters
“China’s clampdown on its consultancy and due diligence sector has driven companies to review their operations after some tested the limits of the laws and Beijing’s patience to meet surging demand as China emerged from its COVID-lockdowns.”

U.S.-China tech war
Chinese apps catch up with U.S. peers despite headwinds / Nikkei Asia (paywall)
“Smartphone applications developed by Chinese companies are spreading around the world, despite the growing trend of governments viewing them as possible security threats.”

Alibaba
Alibaba transfers autonomous driving team at DAMO Academy to logistics arm in latest restructuring move / SCMP (paywall)
“Chinese e-commerce giant Alibaba Group Holding has transferred its autonomous driving research and development (R&D) team under DAMO Academy to the firm’s Cainiao logistics arm, the latest move in a corporate restructuring announced earlier this year.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Environment
In China, an unseen and dangerous foe takes root: Lethal fungi / Sixth Tone
“The fungal apocalypse portrayed in The Last of Us may be fiction. But between climate change and habitat loss, the threat from adapting fungi is real.”

Renewable energy
China shouldn’t fret over overseas protectionism for solar firms / Caixin (paywall)
“Beijing shouldn’t be afraid to offer support to Chinese solar companies that set up factories overseas, industry executives and analysts said, even as other countries roll out protectionist policies that some worry could erode China’s dominance over the supply chain.”

POLITICS AND FOREIGN AFFAIRS:

Europe and U.S. align on China
EU and U.S. to pledge joint action over China / Reuters
“Washington and the EU will pledge joint action to tackle concerns focused on China about non-market practices and coordinate their export controls on semiconductors and other goods at a meeting this month, a draft statement showed.”
EU considers impact of sanctions crackdown on China relations / FT (paywall)
EU says China will take advantage of Russian defeat in Ukraine / FT (paywall)
“The EU’s chief diplomat has warned that China will “take geopolitical advantage” of a Russian defeat in Ukraine and that Brussels needs to respond to Beijing’s global ambitions.”

The Communist Party, elite politics, and government
China’s securities regulator, central bank cut staff pay budgets / Reuters
“China’s securities regulator and central bank cut the budget allocation for employee salaries in 2023, following reforms ordered as part of a broader drive to reduce income disparity.”
China’s securities regulator cuts total staff pay after revamp / Bloomberg (paywall)
Former top Chinese court judge Shen Deyong pleads guilty to taking $9 million in bribes / SCMP (paywall)
“A former senior judge from China’s Supreme People’s Court pleaded guilty on Thursday to taking more than 64.56 million yuan (US$9.3 million) in bribes.”
Senior agricultural bank official expelled from Communist Party / Caixin (paywall)
Yáng Guāng 杨光, a “senior executive of China Agricultural Bank, one of the country’s biggest state-owned lenders, was expelled from the Communist Party and dismissed from public office as a corruption crackdown continues to sweep through the financial sector.”

Censorship and repression of free speech
Chinese dissident sentenced to 8 years after he tried to fly to his dying wife / NYT (paywall)
“A court in southern China has sentenced [Yáng Màodōng 杨茂东] one of the country’s most unyielding human rights activists to eight years in prison for essays he wrote and a website he created, in the ruling Communist Party’s latest warning blow against political dissent.”
Hong Kong ‘firefighter’ cartoonist bids farewell to newspaper strip after 40 years / Reuters
Wong Kei-kwan (黃紀鈞 Huáng Jìjūn), better known by his pen name Zūnzi 尊子, “one of Hong Kong’s most prominent political cartoonists, whose newspaper cartoon strip was axed on Sunday after four decades, defended freedom of expression in the face of political pressures while urging others to keep speaking out.”

An invasion of Taiwan
Opinion: Xi Jinping’s Taiwan ambitions threaten China’s rise / FT (paywall)
Gideon Rachman writes: “Chinese officials and scholars often argue in private that the U.S. is trying to thwart their country’s rise by luring China into a war over Taiwan. But even if such a trap was being laid in Washington (it isn’t), there would be an easy way to avoid it. Xi simply has to refrain from attacking or blockading Taiwan.”

Hong Kong
Hong Kong unsafe for business, warns son of jailed media boss / Nikkei Asia (paywall)
“The son of imprisoned Hong Kong media tycoon Jimmy Lai [黎智英 Lí Zhìyīng] has warned multinational corporations that it is unsafe to conduct business in the Asian financial center amid China’s relentless crackdown on political and civil rights.”

U.S.-China competition and tensions
U.S., China look to move beyond balloon incident to stabilize ties / Reuters
“President Joe Biden’s national security adviser met China’s top diplomat this week and both sides recognized the need to move beyond an alleged spy balloon incident that caused a pause in relations between the superpowers, a senior U.S. official said on Thursday.”
Former NBA star Howard stirs Chinese anger by calling Taiwan a country / Reuters
“Former National Basketball Association (NBA) star Dwight Howard has triggered a wave of criticism on Chinese social media for calling Taiwan a country in a promotional video with Taiwan’s vice president.”
PLA reveals U.S.-China military encounter off Hong Kong day before January 6 Capitol riot / SCMP (paywall)
“China and the US became locked in an intense military confrontation as close as 150km from Hong Kong in early 2021, prompting the US to destroy its own floating sonars to prevent them from falling into Beijing’s hands, it is revealed for the first time.”
For U.S. to counter China in Indo-Pacific, it must prioritize Indian Ocean island nations: analysts / SCMP (paywall)
“China’s military and economic ascent has spurred the US to plot new alliances to blunt growing Chinese clout and establish new security footholds. The efforts have prompted calls from the U.S. and its allies for a ‘free and open Indo-Pacific.’”
U.S. sanctions on China defense chief loom over chance for talks / Nikkei Asia (paywall)
“American sanctions against Chinese Defense Minister Lǐ Shàngfú 李尚福 have emerged as a sticking point ahead of an opportunity for the two sides to resume defense dialogue amid simmering tensions.”
The U.S. and China are finally talking again, but mistrust clouds next steps / WSJ (paywall)
“An unexpected burst of diplomacy between the U.S. and China this week points to a growing desire in both capitals to begin stabilizing relations after months of free fall.”
U.S., China senior officials meet in tentative effort to restart ties / WSJ (paywall)

Espionage
US citizen sentenced to life in prison for espionage – Chinese court ​​/ Reuters
“A 78-year-old U.S. citizen and Hong Kong resident was on Monday convicted of espionage and sentenced to life imprisonment by a court in eastern China, a court statement said.”
China sentences 78-year-old US citizen to life in prison on spying charges / AP
Hong Kong resident with American passport John Shing-wan Leung given life sentence for spying in China / SCMP (paywall)
China sentences 78-year-old U.S. citizen to life on spy charges / Nikkei Asia (paywall)

Crime in Myanmar
More Chinese victims plucked from cross-border cyberscams in Myanmar / SCMP (paywall)
“China’s embassy in Myanmar said more Chinese nationals who were lured to Myanmar by cross-border cyber scams had been rescued, days after the foreign minister urged Naypyidaw to crack down on telecoms fraud.”

Australia
China’s foreign minister Qin Gang to visit Australia in July for ‘reciprocal visit’ as Beijing-Canberra ties ease / SCMP (paywall)
“China’s foreign minister Qín Gāng 秦刚 will visit Australia in July, according to a source close to the Chinese government and an Australian academic, with ‘the reciprocal visit’ the latest in a series of high-profile political and trade-related moves.”
Australia trade minister ‘pleased’ with talks in China / Nikkei Asia (paywall)
“Australia’s Minister for Trade and Tourism Don Farrell said on Friday he was ‘pleased’ with his talks with his Chinese counterpart in Beijing on removing trade barriers, but added that his visit was ‘just another step’ in stabilizing ties.”
China and Australia resume trade talks in sign of stabilizing ties / Caixin (paywall)
“China and Australia’s top trade officials agreed to resume high-level economic dialogue channels in a sign of steadily improving relations between Beijing and Canberra under the Albanese government.”

Japan
China slams Japan for plans to host NATO office / Nikkei Asia (paywall)
“China criticized Japan for plans to host a NATO liaison office in Tokyo, saying the U.S.-led military alliance is interfering in regional affairs and inciting confrontation.”

G7
Guest nations at the G-7 reflect outreach to developing countries, worries over China, Russia / AP
“This week’s summit of the Group of Seven wealthy democracies in Hiroshima will include eight other guest nations, part of a complicated, high-stakes diplomatic gambit meant to settle the world’s most serious crises.”

Russia, Ukraine, and Eastern Europe
China’s Ukraine envoy due to start Europe trip / AP
“A Chinese envoy was preparing Monday to visit Ukraine and Russia, but there appeared to be little chance of a breakthrough to end the 15-month-long invasion.”
China will send an envoy to Russia and Ukraine in a quest for peace talks. / NYT (paywall)

D.R. Congo and Central African Republic
African exports to China fall amid weakened demand for minerals despite attempts to rebalance trade / SCMP (paywall)
“China’s imports from Africa fell by 11.8 percent to $35.5 billion in the first four months of this year compared to the same period last year because of weakened demand for minerals and lower commodity prices — a trend analysts attributed in part to a subdued economic recovery in China and a Congolese mine dispute.”
Mysterious killing of Chinese gold miners puts new pressure on Beijing / NYT (paywall)
“The massacre of nine workers in the Central African Republic and other recent attacks raise questions about China’s ability to protect its citizens overseas.”

SOCIETY AND CULTURE:

Another campaign to boost birth rate
China launches projects to build ‘new-era’ marriage, childbearing culture​​ / Reuters
“China will launch pilot projects in more than 20 cities to create a ‘new-era’ marriage and childbearing culture to foster a friendly child bearing environment, the latest move by authorities to boost the country’s falling birth rate.”

Civil service exam
Tycoons lose $20 billion by refunding China exam that 99% fail / Bloomberg (paywall)
“Becoming a police officer, a tax official or a customs agent in China is tough: Candidates need to have a post high-school degree and go through a national exam that takes place once a year with a pass rate of less than 1.5%.”