Highlighted links for May 16, 2023

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

BUSINESS AND TECHNOLOGY:

Youth unemployment
China’s youth unemployment tops 20% amid signs of stalling recovery / WSJ (paywall)
“China’s youth unemployment rate rose above 20% for the first time since Beijing began tracking the data five years ago, the latest sign of uncertainty around the country’s economic recovery.”
China’s record-high youth jobless rate is set to get even worse / Bloomberg (paywall)
“China’s record high youth unemployment rate may climb further in the months to come, a warning sign that will pressure policymakers to take action.”

International students in China
Is China about to raise fees for international university students? / SCMP (paywall)
“A team of senior Chinese education experts has urged the government to massively increase university tuition fees for international students so that China can compete with the US and Britain to attract better students and offer better services.”

Auditing and U.S. delisting threats
Chinese companies switch auditors to avoid U.S. delisting risk / Nikkei Asia (paywall)
“More than a dozen U.S.-listed Chinese companies have switched from auditors in their home country to ones in the U.S. and Singapore since 2022, reducing the risk they could be thrown off American exchanges, a Nikkei Asia analysis shows.”

Economic indicators
China’s April data show economic recovery losing steam, testing policymakers / Reuters
“​​China’s April industrial output and retail sales growth undershot forecasts, suggesting the economy lost momentum at the beginning of the second quarter and intensifying pressure on policymakers to shore up a wobbly post-COVID recovery.”
China’s economic recovery worries mount as data disappoints / Caixin (paywall)
“China’s consumer spending and industrial activity grew at a slower pace than expected in April, adding to signs the recovery in the world’s second-largest economy is losing momentum.”
Why some investors are betting on China’s recovery but avoiding Chinese shares / WSJ (paywall)
“Global investors wanting to profit from China’s economic recovery are increasingly turning to companies in Paris, Las Vegas and beyond.”

Stopping capital outflows
China online brokers pull apps as trades come under scrutiny / Bloomberg (paywall)
“China’s two leading cross-border online brokerages said they will remove their trading platforms from app stores in mainland China this week as Beijing takes a harder stance on capital flows out of the country.”

Semiconductors
Chinese chip output up 3.8% in April, first monthly growth in 16 months / SCMP (paywall)
“China’s integrated circuit (IC) output in April saw its first monthly uptick in 16 months, as Beijing continues to push local industry to boost domestic chip production in the face of declining imports amid US restrictions.”

U.S. – China tech competition
To compete with China on tech, America needs to fix its immigration system / Foreign Affairs (paywall)
“According to current projections, U.S. semiconductor companies will have 300,000 unfilled vacancies for skilled engineers by 2030. Targeting, training, and recruiting hundreds of thousands of U.S. citizens will be impossible in such a compressed time frame. “

Tencent
Tencent emphasizes “social value” at annual gaming conference / Technode
“On Monday, Tencent Games held its annual gaming conference Spark 2023 online, introducing dozens of new gaming-related titles and projects.”

Alibaba
Alibaba’s future hangs on the IPOs of spawned divisions / Bloomberg (paywall)
“A six-way split of Alibaba Group Holding Ltd. means the value of China’s largest e-commerce player will be increasingly divorced from its actual operations, depending instead on equity-market assessments of the units it spins off.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Lab monkey shortage
Lab monkey prices soar in U.S. after China cuts off exports / Nikkei Asia (paywall)
“Prices of laboratory monkeys in the U.S. have jumped around 15-fold from pre-COVID levels, with China having blocked exports and a new stable source yet to be found.”

Mars simulation
Mars on Earth / Caixin (paywall)
“In the windswept desert wilderness of Northwest China’s Gansu province lies a simulation base that allows visitors to experience a slice of life on the Red Planet.”

POLITICS AND FOREIGN AFFAIRS:

Blue water naval movements
Chinese warships return to West Pacific for live-fire drills / Reuters
“Two Chinese warships have ventured into the Western Pacific for live-fire exercises, the military said on Tuesday, shortly after one of China’s two aircraft carriers returned from a patrol, in its latest projection of force into more distant waters.”

Hong Kong’s PR campaign
Hong Kong targets young talent, tech sector in post-COVID push / Caixin (paywall)
“In the wake of COVID isolation, Hong Kong is taking a targeted approach to reviving its position as a global business hub — an image that waned during the pandemic as expats left in droves amid ever tough restrictions.”

Taiwan
Louder and clearer: how Xiamen on the Taiwan Strait front line is heeding the call for civil defense / SCMP (paywall)
“Authorities in the coastal city of Xiamen renewed their annual citywide air defense exercises this year, with more than 600,000 people involved in a drill amid heightened tensions in the Taiwan Strait.”
Taiwan evaluating proposal for Asia’s first 4-day work week, but manufacturers ‘won’t approve’ / SCMP (paywall)
“Taiwanese officials are evaluating a proposal to implement Asia’s first three-day weekend, but the plan is set to face opposition from producers that form the bulk of the export-driven economy.”

U.S.-China competition and tensions
Hong Kong leader says China’s sentencing of US citizen exposes national security threats / AP
“The life sentence imposed by China on a 78-year-old U.S. citizen, who was also a Hong Kong permanent resident, on spying charges shows the city should ‘stay vigilant’ to security risks, its leader said Tuesday.”
US Senate hearing on China to draw rare Biden cabinet trio / Reuters
“Three of President Joe Biden’s cabinet members will testify on China policy at a U.S. Senate hearing on Tuesday, a rare joint appearance underscoring Washington’s focus on competing with the rising Asian power.”
Countering China’s economic coercion / WSJ (paywall)
“China knows economic pressure can undermine domestic political support for the government it seeks to coerce.”

Singapore and Shanghai
Singapore, Shanghai cooperation can be ‘vanguard’ of new upgraded ties with China, deputy PM says / Caixin (paywall)
“Singapore and Shanghai’s relationship can be a vanguard of the new partnership between the island state and China, Deputy Prime Minister Lawrence Wong told Shanghai party chief Chén Jíníng 陈吉宁 on Monday.”

Europe
China sees the Netherlands as priority partner in EU, Chinese Premier Li says / Reuters
“China sees the Netherlands as a priority partner in the European Union, and is willing to promote cooperation in various fields, Chinese premier Lǐ Qiáng 李强 told the Dutch prime minister on Tuesday, the state CCTV channel reported.”
Europe can’t decide how to unplug from China / The Economist (paywall)
“How should Europe handle China? The continent is trying to decide. After decades of pursuing trade with the country its economy is exposed to a decoupling.”

Central Asia
Summit a ‘major diplomatic event’ to boost China’s ties with Central Asian nations amid Ukraine, Afghanistan concerns / SCMP (paywall)
“China is expected to further boost ties with Central Asia when President Xí Jìnpíng 习近平 hosts his counterparts from the region amid uncertainties stemming from Russia’s war in Ukraine and increasing hostility from the West.”

Censorship and free speech
China probes comedian for mocking Xi Jinping military slogan / Bloomberg (paywall)
“A Chinese comedian who joked about two dogs embodying the work ethic of a Xí Jìnpíng 习近平 military slogan has been suspended, after attracting the ire of strident online nationalists.”
China’s comedy powerhouse in hot water after comic’s military joke / Sixth Tone
Taiwanese who buy ‘If China Invades’ book called up over ‘sensitive reading material’ / Telegraph
“Once they purchase the book purchase, buyers receive a phone call from ‘pollsters’ who insisted ‘military union is inevitable.’”
Hong Kong leader says public libraries must ensure books don’t violate laws / Reuters
“Hong Kong’s leader said on Tuesday public libraries needed to ensure books don’t violate local laws, amid criticism that many books and videos related to China’s Tiananmen Square crackdown have now been removed from library shelves.”

SOCIETY AND CULTURE:

LGBTQ
Beijing LGBT Center closes its doors, a blow for diversity in China / Washington Post
“A well-known LGBTQ+ advocacy group in Beijing has closed its doors, sending a shiver through China’s embattled movement to support and protect sexual minorities.”
Chinese LGBTQ center closes down abruptly amid Xi clampdown / Time

• On The China Project: Beijing LGBT Center shutters after 15 years, citing uncontrollable factors

International soccer corruption
South Korea soccer international Son Jun-ho detained in China on suspicion of taking bribe / AP
“South Korea midfielder Son Jun-ho has been detained in the northeastern Chinese province of Liaoning on suspicion of accepting a bribe, China’s Foreign Ministry said Tuesday.”
China says South Korean soccer player detained for suspected bribery / Nikkei Asia (paywall)

Surrogacy debate
China’s surrogacy debate extends to women’s toilets / Sixth Tone
“From universities to hospital toilets, women are finding themselves surrounded by small ads recruiting surrogacy candidates as well as customers. They, and some companies, are hitting back.”

Education
Families are abandoning China’s rural schools. Here’s why that matters. / Sixth Tone
“School closures and consolidations are pushing rural families into towns and exacerbating the rural-urban divide.”