Highlighted links for May 22, 2023

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

BUSINESS AND TECHNOLOGY:

Micron ban
China’s Micron ban revives U.S. trade tensions, fuels Asian chip rally / Reuters
“A move by Beijing to bar U.S. firm Micron Technology Inc from selling memory chips to key domestic industries has ramped up tensions in an ongoing trade spat with Washington and lifted shares of firms that could benefit from the move.”
China fails Micron’s products in security review, bars some purchases / Reuters
China tells tech manufacturers to stop using Micron chips, stepping up feud with United States / AP
China bans Micron’s products from key infrastructure over security risk / FT (paywall)
China’s Micron ban creates chip dilemma for Samsung, SK Hynix / Nikkei Asia (paywall)
“China’s crackdown on U.S. chipmaker Micron Technology has left its South Korean peers facing a dilemma: expand their own market share in Asia’s largest economy and risk irking Washington, or refrain from doing so and potentially anger Beijing.”
Beijing bans Micron as supplier to big Chinese firms, citing national security / WSJ (paywall) China bans some sales of chips from U.S. company Micron / NYT (paywall)

Investing
Global investment banks’ profits drop in China / FT (paywall)
“Profits at Goldman Sachs, Morgan Stanley and a clutch of other western banks in China fell sharply last year, as COVID-19 lockdowns and geopolitical tensions thwarted hopes that their operations in the country might finally start to be lucrative.”

Economic recovery
Is China’s economic rebound sustainable? / FT (paywall)
“Analysts had expected a strong recovery following the unwinding of the country’s coronavirus restrictions last year. But weak Chinese economic data for April, including record youth unemployment and slower than expected industrial production and consumer spending growth, has clouded the outlook.”
‘Boomy’ talk about the Chinese economy is a charade / FT (paywall)
“Wall Street forecasts are now even more optimistic than Beijing’s unreachable growth target.”

Youth unemployment
Fixing China’s jobless youth problem hinges on restoring the economy’s vitality / Caixin (paywall)
“Youth unemployment has once again become a national concern. Data from China’s National Bureau of Statistics recently showed the nationwide surveyed urban unemployment rate dipped to 5.2% in April…The causes are multifaceted, yet the root issue lies in a deficiency in the economy’s intrinsic dynamism.”
1 in 5 young Chinese is jobless, and millions more are about to graduate / NYT (paywall)
“The youth unemployment rate, which spiked during the pandemic, reached a record high this week, showing the perils of China’s uneven economic recovery.”

Local debt
A poor province in China splurged on bridges and roads. Now it’s facing a debt reckoning. / WSJ (paywall)
China’s effort to move mountain of ‘hidden debt’ faces uphill climb / Caixin (paywall)
“As China’s economic growth gets back on track after three years of pandemic, efforts to tackle the mountain of so-called ‘hidden debt’ accumulated by local governments have re-emerged as a priority on the agendas of top policymakers.”

Automobile industry
Could price war in China’s cars sector be over after better-than-expected sales put an end to discounts? / SCMP (paywall)
“A price war in China’s automotive industry is showing signs of abating, as carmakers refrain from offering further discounts to attract budget-conscious customers.”
To invest or cut loose: western carmakers’ China conundrum / FT (paywall)
“The build quality of the Chinese brands have caught up with global nameplates, no doubt aided by the experience of running joint factories. And inside the vehicles, the technology — the key to unlocking the hearts of Chinese consumers — is now superior.”

Hainan lures brands
‘China’s Hawaii’ lures top global brands with tax-free promise / Nikkei Asia (paywall)
“Major overseas brands are establishing sales, logistics and processing strongholds in the resort island province of Hainan in southern China.”

AI
Instead of blocking China’s tech development, US and EU can learn from its AI governance / SCMP (paywall)
“The European Union and the US are reportedly looking to join forces to further block sensitive tech transfer to their strategic rivals, while also crafting a road map for the regulation of artificial intelligence.”
China plans to set up regional AI ‘highlands’ and related technology platforms as Beijing pushes to bridge hi-tech divide with U.S. / SCMP (paywall)
“China plans to establish a raft of regional artificial intelligence (AI) ‘highlands’ across the country and related tech platforms, as the world’s second-largest economy ratchets up research and development efforts in this technology amid a global rush to create more ChatGPT-like tools.”

Tech competition
Beijing unveils ‘battle plan’ to supercharge innovation hub, lure foreign talent / SCMP (paywall)
“China will step up its bid to compete with other world-class innovation centers like Silicon Valley by building an international science and technology innovation complex in Beijing, to be completed by 2025.”

Development and real estate
Chinese investigators blame building collapse that killed 54 on shoddy, illegal construction / AP
“The collapse of a nine-story building in central China that killed 54 people last year was caused by shoddy, illegal construction and local officials’ failure to enforce standards, according to an official report released Sunday.”
China punishes 66 public servants for deadly Changsha building collapse / Caixin (paywall)
Has China changed tune on big discounts on new homes, after local authorities no longer view lower ‘market-led’ prices as ‘bad behavior’? / SCMP (paywall)
“Local authorities in China appear to have changed their tune on big discounts by property developers following weak homes sales in April, calling lowered prices normal and ‘market-led’ rather than ‘bad behavior.’”
China’s port power / Foreign Policy (paywall)
“Over the past several years, U.S. national security officials have been intensely focused on China’s growing military power. Having not faced such a powerful challenger since the collapse of the Soviet Union, Washington now describes Beijing, as the U.S. Annual Threat Assessment put it in February, as a ‘near-peer competitor.’”

Adidas
Adidas seeks redemption in China / WSJ (paywall)
“Sportswear brand backs government sports and cultural projects in bid to reverse decline in increasingly competitive market.”

Meituan
Meituan debuts in Hong Kong with food delivery app KeeTa / Caixin (paywall)
“Meituan on Monday launched a food delivery app in Hong Kong, pushing into a market dominated by foreign rivals Deliveroo Plc and Foodpanda GmbH as it faces heightened competition on the mainland from new entrants including TikTok sibling Douyin.”

Tencent
Tencent launches palm payments in Beijing, allowing metro passengers to pay with the wave of a hand / SCMP (paywall)
“Chinese social media giant Tencent Holdings is allowing Beijing metro passengers to pay for rides using only their palms in a new service launched in China’s capital city through its WeChat Pay service, referred to as Weixin Pay domestically.”

Tech recovery
China’s tech giants signal the first steps in a bumpy recovery / NYT (paywall)
“The economy is open again, helping Alibaba, Baidu and Tencent claw back in the first quarter from a miserable 2022, though they are likely to face continuing skepticism from investors.”

SCIENCE, HEALTH, AND ENVIRONMENT:

COVID-19
Coronavirus: new Chinese vaccines on the way, but so are more waves of Covid, experts say / SCMP (paywall)
“Health authorities are preparing to roll out a new line-up of home-grown vaccines to battle Omicron subvariants. China urged to brace for a possible second wave of COVID infections next winter, disease expert says.”
China’s post-reopening second COVID wave could peak in late June, expert says / Caixin (paywall)
“A prominent infectious disease expert said China’s post-reopening second Covid wave that’s currently sweeping through the country could peak in June, with around 65 million cases detected every week by the end of next month, official media reported.”

Science fund
Chinese billionaire He Xiangjian, founder of home appliances giant Midea, creates US$428 million science fund focused on AI and climate research / SCMP (paywall)
“Chinese billionaire entrepreneur Hé Xiǎngjiàn 何享健, founder and largest shareholder of home appliances giant Midea Group, on Sunday unveiled an eponymous 3 billion yuan (US$428 million) science fund to boost artificial intelligence (AI) and climate research in the country.”

Space race
China and the U.S. are reaching for same region of the moon. Could they work together? / SCMP (paywall)
“Both countries aim to land probes near the same Shackleton crater close to the lunar south pole, with the U.S. aspiring to do so this year and China in 2026.”
China seeks to counter Musk’s Starlink with own satellite network / WSJ (paywall)
“China is ramping up efforts to develop a satellite-powered internet network that can compete with Elon Musk’s Starlink, which has quickly expanded around the world and whose military applications have been on display in Ukraine’s defense against Russia.”

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
China’s Xi mimics Mao’s crisis response in sweeping indoctrination drive / WSJ (paywall)
“Chinese leader Xí Jìnpíng 习近平 is taking a page out of Máo Zédōng’s 毛泽东 crisis playbook to contain the damage caused by the tumultuous final months of his zero-tolerance Covid controls.”

Macao
Macao further restricts political freedoms with revisions to national security law / AP
“Echoing the crackdown on freedoms in neighboring Hong Kong, the former Portuguese colony of Macao has revised its legal system to face ‘new adverse challenges in terms of national security.’”
As Macao bets on diversification, what role will neighboring Hengqin island play in the Greater Bay Area dream? / SCMP (paywall)
“Beijing’s blueprint for the Greater Bay Area development zone, which encompasses nine cities in southern China’s Guangdong province plus Hong Kong and Macau, aims to create an economic powerhouse by 2035 able to compete with similar regions around Tokyo and San Francisco.”
Macao casinos’ reopening boost blunted by junket crackdown / Nikkei Asia (paywall)
“Macao casinos logged a strong first quarter following China’s COVID reopening, but a crackdown on junkets is keeping high rollers away, sowing doubts over how quickly the gambling hub can return to pre-pandemic revenue levels.”

Hong Kong
Hong Kong court dismisses pro-democracy publisher Jimmy Lai’s legal bid to fight for U.K. lawyer / AP
“A Hong Kong court rejected an activist publisher’s latest effort Friday to use a British lawyer to defend him against national security charges as Beijing tries to crush a pro-democracy movement.”
Hong Kong’s top REIT to look outside China with new fund / Nikkei Asia (paywall)
“Hong Kong’s biggest real estate investment trust says it will focus on opportunities outside of China with a planned new fund due to tensions between Beijing and Washington chilling investor sentiment.”

Taiwan
Taiwan excluded from WHO annual assembly following Chinese opposition / Reuters
“Taiwan failed on Monday in its efforts to gain an invitation to the World Health Organization’s annual assembly despite the island’s assertion that support was growing for its participation.”
‘War is not an option’, Taiwan president says amid China tensions / Reuters
“Taiwan’s President Tsai Ing-wen (蔡英文 Cài Yīngwén) vowed on Saturday to maintain the status quo of peace and stability across the Taiwan Strait amid high tensions with China, which has stepped up military pressure on the democratically governed island.”
As Taiwan export orders fall for eighth straight month, chips for GPT-type AI seen as long-term fix / SCMP (paywall)
“Orders for Taiwanese goods, guided by global interest in hi-tech hardware such as semiconductor chips, fell for an eighth straight month in April on weak demand, the island’s government said on Monday.”
Under PLA pressure, Taiwan’s F-16V fighter jets get new US missiles / SCMP (paywall)
“Taiwan has armed its most advanced fighter jets with new air-to-air missiles, as People’s Liberation Army warplanes make regular sorties near the self-ruled island.”

U.S.-China competition and tensions
China urges U.S. to meet it halfway, bring ties back on track / Reuters
“China’s foreign ministry on Monday urged the United States to have the right understanding of China, meet it halfway and bring bilateral relations back on track.”
U.S. considers screening outbound investment amid China competition, leading experts to urge caution / SCMP (paywall)
“With the White House planning to regulate US outbound investment into ‘countries of concern’ amid a raging rivalry with China, experts urged the Biden administration on Thursday to approach the issue with ‘humility’ and avoid hurting US interests.”
Bans on Chinese land purchases in U.S. crop up in Republican-held states / Nikkei Asia (paywall)
“Legal efforts to block Chinese purchases of land have advanced in several U.S. states, with proponents saying the measures guard against hostile foreign influence while Asian American groups see them as overreach.”
Biden sees potential thaw with China after tough G-7 statement / WSJ (paywall)
“President Biden said Sunday he expected a thaw in relations with China, a day after he and other Group of Seven leaders took steps to tackle what they see as Beijing’s economic intimidation.”
The China hawk in Washington rattling corporate boardrooms / WSJ (paywall)
“To counter Beijing, one of Washington’s most vocal China hawks is taking aim at American business, looking to halt the investment and trade he says is enabling Beijing’s superpower ambitions.”

Papua New Guinea
U.S. signs new security pact with Papua New Guinea amid competition with China / AP
“The United States signed a new security pact with Papua New Guinea on Monday as it competes with China for influence in the Pacific.”

G7
Beijing rebukes Japan, Britain over ‘anti-China’ G7 summit / Reuters
“State-backed Chinese mouthpiece Global Times called the G7 an ‘anti-China workshop’ on Monday, a day after Beijing summoned Japan’s envoy and berated Britain in a fiery response to statements issued at the group’s summit in Hiroshima.”
German government: G7 wasn’t too soft on China / Reuters
“China’s harsh reaction to the Group of Seven (G7) nations’ summit in Japan shows that language used by the leaders was not too soft, a spokesperson for the German government said on Monday.”
G7 aligns on shared ‘de-risk, not decouple’ approach to China / Reuters
“The Group of Seven (G7) rich nations, concerned by tensions with Beijing, on Saturday outlined a shared approach towards China, looking to ‘de-risk, not decouple’ economic engagement with a country regarded as the factory of the world.”
China complains to G7 host Japan over joint statement / Reuters
“China firmly opposes the G7 joint statement out of Hiroshima and has complained to summit organizer Japan, the Chinese foreign ministry said on Saturday.”
G7 urges China to press Russia to end war in Ukraine, respect Taiwan’s status, fair trade rules / AP
China hits out at Japan over G7 summit in Hiroshima, accuses US-led bloc of ‘camp confrontation and Cold War mentality’ / SCMP (paywall)
Flaring tensions over G7 and Micron show limits to US-China reset / FT (paywall)
China protests G-7 communique, saying it interferes in domestic affairs / Caixin (paywall)

U.K.
Chinese embassy in Britain asks London to stop slandering China to avoid damage / Reuters
“The Chinese embassy in Britain in a statement on Sunday asked London to stop slandering and smearing China to avoid further damage to China-UK relations.”
UK’s Sunak says China poses world’s biggest security challenge / Reuters
“China represents the world’s greatest challenge to security and prosperity, but other leading economies should not seek to fully decouple from it, British Prime Minister Rishi Sunak said on Sunday after a summit of the Group of Seven (G7) nations.”

Australia and New Zealand
Australia cozies up to India to balance China, but is the relationship overrated? / SCMP (paywall)
“As India’s regional security role grows against a backdrop of heightened US-China rivalry, it’s moving closer to fellow Quad member Australia – bound by a common desire to counter Beijing’s influence.”

North Korea
China’s exports to North Korea surge in April / Reuters
“China’s exports to North Korea soared in April from a year earlier, with wigs and fertilizer among major shipments, Chinese customs data showed on Saturday.”

Japan
Japan, China arranging defense ministers’ meeting in June -Kyodo / Reuters
“Japan and China are making arrangements to hold a meeting between their defense ministers on the sidelines of an international conference in Singapore next month, Kyodo news agency said on Monday, citing unnamed sources.”

Russia
Russian PM to visit Beijing as China renews criticism of Western arms sales to Ukraine / AP
“Russian Prime Minister Mikhail Mishustin will visit Beijing next week for talks, China’s Foreign Ministry said Friday, marking the latest exchange in a relationship in which Russia is becoming increasingly reliant on China for economic and diplomatic support.”

Ukraine
India, China, Brazil should be engaged in possible Ukraine peace summit -Danish foreign min / Reuters
“Denmark would like to host a summit in July about how to find peace between Ukraine and Russia, but such a meeting would require engagement from India, China and Brazil, Danish Foreign Minister Lars Lokke Rasmussen said Monday.”

Democratic Republic of the Congo
DR Congo leader to visit China this week, minerals trade deal signing expected / Reuters
“​​The president of minerals-rich Democratic Republic of Congo, Felix Tshisekedi, will visit China from May 24 to 29 and is expected to meet President Xi Jinping to review and sign several key trade deals.”

SOCIETY AND CULTURE:

Badminton
China smashes home a badminton record / Caixin (paywall)
“The Chinese national team clinched their third consecutive Sudirman Cup on Sunday with a 3-0 victory against South Korea in Suzhou, East China’s Jiangsu province.”

Comedy crackdown
No joke: China’s backlash against stand-up stirs fear of comedy clampdown / Reuters
“One joke by a Chinese comedian about the nation’s military has spurred online uproar, a $2 million fine, a police probe, a sweep of canceled shows and fears for the survival of Chinese stand-up comedy, a rare refuge for somewhat free speech.”
A Chinese comedian walks into a political storm after army joke falls flat / FT (paywall)
China makes clear its military isn’t funny anymore / WSJ (paywall)
Comedian Uncle Roger silenced on Chinese social media after jokes about China / AP
“A Malaysian comedian better known for mocking attempts by Western chefs at Asian cooking has had his Chinese social media account suspended after making jokes about China.”

And other cancellations…
China suddenly shuts down concerts, events without explanation / Bloomberg (paywall)
“Saturday’s ‘What the Folkstival’ outdoor concert was meant to kick off in the early afternoon in a Beijing suburb near the airport, with 10 live acts, including foreign performers, playing ‘acoustic music to soothe your soul.’ It never began.”

Elderly care
China issues guidance for basic elderly care system by 2025 / Reuters
“China has issued guidance to all provinces to build a basic elderly care system by 2025, state-run Xinhua news agency said on Sunday, in the latest step to prevent a demographic crisis.”

Marriage
Chinese university streamlines student marriages, sparks debate / Sixth Tone
“The university offered students priority access for marriage registrations on May 20, a date known for its phonetic resemblance to ‘I love you’ in Chinese.”

Dating
China’s online daters look for love, marriage, and sometimes both / Sixth Tone
“The country’s online dating scene is a complex mix of old values and new needs.”

Tourism
Inside the barbecue city that Is China’s hottest tourist destination / NYT (paywall)
“Zibo has become a social media star for its distinctive barbecue style. Now the city is overrun with visitors.”