Highlighted links for May 24, 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
Why China’s reopening isn’t providing enough jobs for its young / Bloomberg (paywall)
“High hopes were pinned on China’s reopening from the COVID-19 pandemic as a remedy for the country’s slowing economy. But while growth has rebounded, joblessness among young people has soared, a worrying development for a Communist Party obsessed about social stability and for the economy’s longer-term prospects.”

Stock market
Chinese stocks wipe out 2023 gains as headwinds intensify / Bloomberg (paywall)
“China’s benchmark stock index erased all its gains for the year as a weaker yuan and developers’ debt woes added to persistent worries over growth and geopolitics.”

Cross-border money movements for MNCs
China upgrades cross-border funds pilot for multinationals / Caixin (paywall)
“China is upgrading a pilot program that facilitates cross-border use of funds for multinationals, trialing greater freedom for eligible companies based in Beijing, Shenzhen and Guangdong province, according to a regulatory announcement Friday.”

U.S.-China tech war
Chip wars with China risk ‘enormous damage’ to U.S. tech, says Nvidia chief / FT (paywall)
“​​The chief executive of Nvidia, the world’s most valuable semiconductor company, has warned that the U.S. tech industry is at risk of ‘enormous damage’ from the escalating battle over chips between Washington and Beijing.”
China was reducing Micron chip purchases years before ban / Reuters
“In the years before China declared U.S. firm Micron Technology’s (MU.O) products a national security risk, authorities were already scaling back purchases of its chips, opting instead for domestic or South Korean options, documents showed.”

Lotteries
Chinese snap up lottery tickets amid economic gloom / Reuters
“April sales of Chinese lottery tickets jumped to their highest in a decade, data showed on Wednesday, with economists saying young people in particular were keener to try their luck amid greater economic uncertainty in the wake of the pandemic.”

Supermarkets hit in economic recovery
Chinese supermarket chains hit speed bumps in post-pandemic recovery / Caixin (paywall)
“China’s largest supermarket operators are struggling to recover from the pandemic as weakening demand continues dragging on sales.”

Panasonic
Panasonic puts high priority on China despite supply chain risks / Reuters
“China remains a high-priority market for Panasonic even as geopolitics have highlighted the need for robust supply chains elsewhere, the Japanese group’s chief executive said.”

Wanda Group
Wanda bonds sink amid concerns on repayment and fate of unit’s IPO / Caixin (paywall)
“The slump in onshore and offshore bonds issued by subsidiaries of troubled property-to-entertainment conglomerate Dalian Wanda Group Co. Ltd. deepened amid renewed concern by investors about its financial health and the fading prospects of a Hong Kong share sale by one of its units.”

Shein and Temu
Chinese fast fashion platforms could be next U.S. target / Caixin (paywall)
“As Chinese fast fashion platforms gain pace in North America they look set to hit a familiar snag — worsening U.S.-China relations.”

Alibaba
Alibaba’s big breakup leads to IPO hopes, staff layoffs / The China Project
“Alibaba’s cloud computing unit has decided to cut around 7% of its staff as part of an overhaul that is likely to include an eventual IPO…The move comes weeks after announcements that Alibaba Group Holdings would split up its business empire into six separate entities, each with its own leadership team and board.”
Alibaba’s cloud unit to lay off around 1,000 before planned IPO / Nikkei Asia (paywall)
“Alibaba’s cloud arm is laying off 7% of its total workforce, or around 1,000 employees, as the unit prepares for a full spinoff and eventual public listing, people familiar with the matter told Nikkei Asia.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Scientific journals
China overtakes U.S. in contributions to nature and science journals / The Guardian
“China has overtaken the US to become the biggest contributor to nature-science journals, in a sign of the country’s growing influence in the world of academic research.”

POLITICS AND FOREIGN AFFAIRS:

Hong Kong
Cathay Pacific scrambles to contain fallout from insult scandal with another apology as Hong Kong leader John Lee expresses outrage over ‘bad deeds’ of cabin crew / SCMP (paywall)
“Hong Kong’s leader has expressed anger and disappointment after three Cathay Pacific Airways employees insulted non-English speakers, saying their ‘disrespectful’ acts had hurt the feelings of Chinese people.”
‘Give me the opportunity’: have Hong Kong’s society and schools failed ethnic minority students? / SCMP (paywall)
“Critics argue that preferences by parents and schools have created a form of ‘de facto segregation,’ in which certain campuses in the city, especially those designated for NCS students two decades ago under a now-scrapped government policy, still take in a disproportionate number of such pupils.”

United Nations and G7
China’s Qin Gang calls for UN ‘objectivity’ in face of G7 nuke pressure / SCMP (paywall)
“Chinese Foreign Minister Qín Gāng 秦刚 called on the UN’s nuclear watchdog to ‘resist’ pressure from countries seeking to “undermine international cooperation”, just days after G7 leaders said Beijing’s atomic arsenal is a threat to global and regional stability.”

U.S.-China competition and tensions
U.S.-China tensions intensify over tech to Taiwan flashpoints / Reuters
“A U.S. lawmaker’s demand for trade curbs on a Chinese memory chipmaker in response to China calling products from Micron Technology (MU.O) a national security risk is the latest escalation of tension between the big powers.”
China may be withholding military dialogue as ‘bartering chip’, says U.S. Pacific commander / SCMP (paywall)
“Calls by the United States military for dialogue with Chinese counterparts have gone unanswered, with communication opportunities possibly withheld as a ‘bartering chip,’ the commander of U.S. military forces in the Pacific said in New York on Wednesday.”
New Chinese ambassador to U.S. acknowledges challenges in relations / Nikkei Asia (paywall)
“China’s new ambassador to Washington Xiè Fēng 谢锋 said on Tuesday that he will seek to enhance China-U.S. cooperation, but that relations face serious challenges.”
U.S. and China see fragile opportunity to repair ties / WSJ (paywall)
“A first test is a meeting between Commerce Secretary Gina Raimondo and her Chinese counterpart” Wáng Wéntāo 王文涛.
The U.S.-Chinese economic relationship is changing—but not vanishing / Foreign Affairs (paywall)
“In an April speech on economic policy, U.S. National Security Adviser Jake Sullivan made clear that the United States is ‘for de-risking, not for decoupling,’ a formulation first articulated by European Commission President Ursula von der Leyen. Sullivan explained that U.S. export controls would remain ‘narrowly focused on technology that could tilt the military balance,” adding that “we are not cutting off trade.’”

Czech Republic
Czech foreign minister calls for more united EU-US approach to China / SCMP (paywall)
“Europe should work more closely with the United States in forging a common policy towards China, according to the Czech Republic’s foreign minister.”

Netherlands
China raises supply chain concerns as the Netherlands plans curbs on chip technology / SCMP (paywall)
“China pressed the Netherlands on Tuesday to avoid ‘bloc confrontation’ amid a looming chip technology ban during a visit to Beijing by the Dutch foreign minister.”

NATO and Japan
China says NATO’s plan for Japan office not welcomed in Asia-Pacific / Reuters
“The Asia-Pacific region does not welcome NATO’s plan to open a liaison office in Japan, Chinese foreign ministry spokesperson Máo Níng 毛宁 said at a press briefing on Wednesday, after Japan acknowledged NATO’s plan.”

South China Sea
China deploys three ‘navigation’ beacons in the South China Sea / Reuters
“China deployed three navigation beacons around the contested Spratly islands of the South China Sea, following similar marker placements by the Philippines earlier this month, as both sides try to fortify their claims to the area.”

Russia
Russian hypersonic scientist accused of betraying secrets to China / Reuters
“The director of a top Russian science institute, arrested on suspicion of treason along with two other hypersonic missile technology experts, stands accused of betraying secrets to China, two people familiar with the case told Reuters.”
China prioritizing Turkmenistan over Russia in next big pipeline project / Reuters
“​​China is accelerating the building of a long-delayed Central Asian pipeline to source gas from Turkmenistan even as Russia pushes its own new Siberian connection, as Beijing juggles its energy security needs with diplomatic priorities.”
China-Russia trade likely to have ‘plateaued’ even as leaders hail ‘unprecedented high level’ relations / SCMP (paywall)
“While Russia is likely to increase its use of the yuan and also sell more oil to China, bilateral trade may have reached a ‘plateau,’ according to analysts.”
On Beijing visit, Russian prime minister says pressure from West is strengthening ties with China / AP
“Pressure from the West is strengthening Russia’s ties with China, Russian Prime Minister Mikhail Mishustin said in a meeting with his Chinese counterpart in Beijing Wednesday.”
Xi hails close Russia ties after G7 ramps up Ukraine sanctions / Nikkei Asia (paywall)
Russia PM visits China with U.S.-sanctioned delegation / Nikkei Asia (paywall)
China and Russia, targets at G7 summit, draw closer to fend off West / NYT (paywall)

Chinese company builds new energy facilities in Iran and Russia
Jilin Jinguan electric to build road between Iran and Russia for new energy facilities / Reuters
“Shenzhen-listed Jilin Jinguan Electric Co Ltd signed a memorandum of understanding (MoU) to build a road between Iran and Russia for the constructions of new energy facilities, it said on Wednesday.”

Kenya
Chinese hackers attacked Kenyan government as debt strains grew / Reuters
“Chinese hackers targeted Kenya’s government in a widespread, years-long series of digital intrusions against key ministries and state institutions, according to three sources, cybersecurity research reports and Reuters’ own analysis of technical data related to the hackings.”

Latin America
U.S. reluctance on trade deals sends Latin America towards China / FT (paywall)
“Ecuador’s president Guillermo Lasso is a U.S.-educated, pro-business conservative. But his government has just signed a trade deal with China, and when he secured $1.4bn of debt relief last year, it was from Xí Jìnpíng 习近平.”

SOCIETY AND CULTURE:

Education
Majority of parents stressed over children’s education: new survey / Sixth Tone
“The survey showed that a staggering 92% of the 535 parents said they had experienced emotional breakdowns due to their children’s education.”

Religious freedom
Pope calls for freedom of worship for Catholics in China / Reuters
“Pope Francis called on Wednesday for freedom of worship for Catholics in China, a religious minority that has faced historic harassment and persecution in the communist country, causing friction between the Vatican and Beijing.”

eSports
Chengdu AG Chaowanhui rallies to clinch gold at eSports tournament / Shine
“Chengdu AG Chaowanhui won the first gold medal of the ‘Exciting Hangzhou’ eSports National Tournament in the popular Chinese mobile game Honor of Kings on Sunday.”

Feminism
China’s appropriation of comfort women activism / East Asia Forum
“The comfort women controversy has dogged Tokyo–Seoul relations since the early 1990s, but Japan’s wartime network of ‘comfort stations’ or military brothels was located mainly in China. Though the ‘Patriotic War of Resistance Against Japanese Aggression’ has long been central to the Chinese Communist Party’s (CCP) patriotic education campaign, Beijing has proven comparatively hesitant and ambivalent on this issue.”