Highlighted links for May 25, 2023

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

BUSINESS AND TECHNOLOGY:

Semiconductors, AI, and U.S.-China tech war
Nvidia races towards $1 trillion club as AI frenzy drives chip stocks higher FT (paywall)
“Nvidia’s blowout earnings have set the Silicon Valley company on course to become the first chipmaker to be valued at more than $1 trillion, as booming demand for its artificial intelligence processors drove semiconductor stocks higher on Thursday.”
Tech war: Nvidia founder calls China a ‘very important’ market as AI frenzy fuels huge demand for its chips / SCMP (paywall)
“Nvidia’s founder and CEO Jensen Huang (黃仁勳 Huáng Rénxūn) called China a ‘very important’ market for the technology industry, as demand for the U.S. company’s specialized chips explodes amid a frenzy over artificial intelligence (AI).”

• Earlier this week: Chip wars with China risk ‘enormous damage’ to U.S. tech, says Nvidia chief / FT (paywall)
  “Speaking to the Financial Times, Jensen Huang said U.S. export controls introduced by the Biden administration to slow Chinese semiconductor manufacturing had left the Silicon Valley group with ‘our hands tied behind our back’ and unable to sell advanced chips in one of the company’s biggest markets.

AI
How censorship in China could hold back its quest for AI supremacy / SCMP (paywall)
“A few years ago, China appeared well placed to threaten the US’ technological lead, but the advent of large language models is a game-changer.”
AI frenzy helps Asia tech exporters’ stocks beat U.S. growth woes / Caixin (paywall)
“Investors are snapping up shares of Asia’s technology hardware exporters, bolstered by interest in artificial intelligence and signs that the chip industry is turning a corner.”

Swarovski
Crystal clear: Swarovski CEO Alexis Nasard on luxury branding, cultural relevance and its future in China / Jing Daily
“Chinese consumers’ perceptions of Swarovski center on sparkling crystal creations, charming and elegant jewelry and watches. However, the crystal powerhouse is envisioning dynamic possibilities beyond these elements – its new LUXignite strategy reveals the company’s ambitions.”

Trust firms
Five things to know about Chinese trust firms’ scramble to offload risky assets / Caixin (paywall)
“It was a tough year for China’s trust firms in 2022, as many reported shrinking revenue or profits due to losses on their immense real estate investments, while regulators tightened scrutiny over the 22 trillion yuan ($3.2 trillion) trust industry.”

Electric vehicles
Great Wall Motor says rival BYD failing on hybrid emissions / Reuters
“Great Wall Motor has filed a report with China’s regulators against BYD, it said on Thursday, claiming its rival’s two top-selling hybrid models did not meet emissions standards and triggering a rare public spat.”
China’s flying car developers get ready for takeoff in 2025 / Nikkei Asia (paywall)
“In China, flying car makers are fast preparing to take their business into the mainstream in line with the government’s agenda to support the emerging industry.”

Economic indicators and punditry
China needs new growth model, former IMF official Zhu Min says / Nikkei Asia (paywall)
“China should seek more consistent economic growth by expanding domestic consumption, advancing manufacturing and becoming environmentally sustainable, Zhū Mín 朱民, a former deputy managing director of the International Monetary Fund, said on Thursday.”
China warnings flash across global markets as growth disappoints / Bloomberg (paywall)
“China’s muted economic rebound and Beijing’s reluctance to deploy large-scale stimulus are reverberating around the globe, crushing commodity prices and weakening equity markets.”
Opinion: China can’t afford Xi’s quest for security / Bloomberg (paywall)
Scholar Minxin Pei argues: “The Chinese leader is betting his nation can absorb a hit to economic growth and still close the gap with the U.S. He’s wrong.”
The other economic security threat from China / FT (paywall)
“Governments on both sides of the Atlantic have resolved that they will not let their economic relations with China become — or remain — a geopolitical dependency that Beijing could use for its own strategic purposes.”

Cathay Pacific scandal
Cathay Pacific discrimination scandal: boss of carrier warns staff incident reinforces ‘long-held perception’ of airline by some / SCMP (paywall)
“The boss of Hong Kong flag carrier Cathay Pacific Airways on Thursday told employees a recent discrimination scandal in which cabin crew were accused of insulting mainland Chinese passengers had reinforced a ‘long-held perception’ of the airline and underscored ‘something much deeper which we need to address.’”
Cathay Pacific discrimination scandal: is it the tip of an iceberg of low morale, simmering Hong Kong-mainland tensions or just inexcusable bad behavior? / SCMP (paywall)

• Yesterday on The China Project: Cathay Pacific sacks flight attendants accused of ridiculing non-English-speaking passengers

Gig drivers face restrictions
As China’s unemployed flock to gig driving, cities impose limits / Nikkei Asia (paywall)
“Chinese municipalities are combating a rush of gig drivers signing up for ride-hailing platforms, as the glut leaves many of these workers idle and creates risks for the financial system.”

Bank of America retreats from China
Bank of America redeploys 40 Asia bankers as China dealmaking stalls / Reuters
“Bank of America Corp has told around 40 bankers in Asia to look for new roles within the organization, a person familiar with the matter said, as it moves to control costs globally and cut back amid slowing Chinese dealmaking.”

Real estate and development
Once a symbol of China’s growth, now a sign of a housing crisis / NYT (paywall)
“Nanchang’s skyscrapers represented urban transformation, but the city added apartments faster than its population grew. The result: vacant homes and offices.”

ADR Auditors
Chinese companies switch auditors to avoid U.S. delisting risk / FT (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.”

Alibaba
Alibaba’s restructuring is a chance for a fresh start / Nikkei Asia (paywall)
“While Alibaba’s restructuring marks one of the most significant reorganizations in the company’s history, it is not an entirely surprising development given how frequently Chinese companies mutate to adapt to the country’s dynamic consumer market, cutthroat competition, policy ambiguity and shareholder demands.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Space travel
Chinese space start-up launches the world’s first rocket powered by ‘coal’ / SCMP (paywall)
“The maiden voyage for an emerging Chinese company’s Tianlong-2 rocket in April was the first time a rocket from any country was powered by aviation kerosene made from coal.”

Everest
Chinese climbers scale Everest, tragedy and daring rescue ensue / Sixth Tone
“At least 11 international climbers have perished in their attempt to the top of the world so far in 2023.”

Extinction
China report on animal extinctions withdrawn / Reuters
“Animals are at much greater risk of extinction in China than in other countries, with habitats threatened by urbanization and human encroachment, according to a Chinese government assessment published this week.”

Chinese scientists in the U.S.
Opinion: Like it or not, America needs Chinese scientists / NYT (paywall)
Dan Murphy writes: “​​The Chinese Communist Party has accomplished something rare in U.S. politics these days: uniting Democrats and Republicans around a common enemy. Unfortunately, frenzied concern about Chinese influence threatens America’s ability to attract the top talent it needs to maintain global leadership in science and higher education.”

POLITICS AND FOREIGN AFFAIRS:

Hong Kong
Hong Kong man sentenced to almost 6 years in prison in alleged plot to bomb court buildings / AP
“A Hong Kong man was sentenced Thursday to almost six years in prison for alleged involvement in a foiled plot by high school students to bomb court buildings following 2019 anti-government protests. Three other defendants younger than 21 were sentenced to rehabilitation, while the sentencing of two others was postponed.”
Hong Kong parents to be allowed to enroll their children in any ESF school of their choice regardless of where they live / SCMP (paywall)
“Hong Kong parents who want to enrol their children in English Schools Foundation will be allowed to choose any of its 22 institutions from August after the group announced plans to drop the current residence-based place allocation policy.”

Financial regulation in Sichuan
Sichuan and Chongqing collaborate on financial regulatory and justice / iChongqing
“The Chongqing Office of China Banking and Insurance Regulatory Commission announced its cooperation with Sichuan Office and Chengdu-Chongqing Financial Court, exploring a new collaboration mode between financial regulation and justice on May 22.”

Xinjiang
In Xinjiang, China’s top political adviser Wang Huning calls for ‘correct historical view’ of Chinese nation / SCMP (paywall)
Wáng Hùníng 王沪宁, “China’s top political adviser called for ‘planting the seeds of patriotism’ deep in the hearts of youth as he paid his first visit to Xinjiang since assuming his new post.”
China is turning a crushed Xinjiang into a tourist trap / Foreign Policy (paywall)
“In a county in China’s northwest Xinjiang region where authorities ran multiple internment camps for local ethnic minorities, the local government has commissioned a new set of buildings for a very different demographic: tourists.”

U.S.-China competition and tensions
China, U.S. commerce and trade chiefs confirmed to meet in U.S. / Reuters
“China’s Minister of Commerce Wáng Wéntāo 王文涛 will meet U.S. Commerce Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai while visiting the United States, his ministry confirmed on Thursday.”
U.S. State Department’s top China policy official to step down / Reuters
“The U.S. State Department’s top China policy official Rick Waters is set to step down at a time of fraught relations between Washington and Beijing.”
U.S. State Department’s top China official Is stepping down / Caixin (paywall)
U.S. House China panel recommends Congress take action over Taiwan, Uyghurs / Reuters
“A new U.S. congressional committee on China approved reports on Wednesday pushing back on Beijing over its treatment of Uyghurs and other ethnic minorities and seeking to deter the initiation of a conflict with Taiwan, hoping some of its recommendations become law this year.”
U.S. and China have ‘irreconcilable differences’ but there’s hope they can coexist: Singapore’s Lawrence Wong / SCMP (paywall)
“Some aspects of the ideological and strategic differences between the United States and China appear to be ‘insurmountable and may well be irreconcilable,’ but there is still hope that both sides can find common ground and rebuild trust to coexist with each other, Singapore’s No 2 leader Lawrence Wong has said.”
Top trade officials from China and U.S. to meet at APEC / Caixin (paywall)
“The top trade officials from China and the U.S. will meet on the sidelines of the Asia-Pacific Economic Cooperation (APEC) ministerial meetings taking place Thursday and Friday in the U.S., the Chinese commerce ministry confirmed.”
Special House panel takes aim at China in proposed laws / WSJ (paywall)
“A special House committee focused on China passed proposals Wednesday for legislation to address Beijing’s ill-treatment of ethnic minorities and bolster U.S. support for Taiwan.”

China’s new ambassador to the U.S.
China appoints Vice Foreign Minister as ambassador to U.S. / Caixin (paywall)
“China’s newly appointed ambassador to Washington Xiè Fēng 谢锋 arrived in the U.S. Tuesday afternoon, with an aim to boost communication amid heightened tensions between the world’s two largest economies.”
Six decades of Chinese envoys to the U.S. / Caixin (paywall)
“From Huáng Zhèn 黄镇, the first director of the People’s Republic of China Liaison Office, to Qín Gāng 秦刚, who in January completed his tenure as ambassador to the U.S., each of Beijing’s envoys has helped shape relations between the two countries.”

Chinese hackers target U.S. infrastructure
Microsoft: State-sponsored Chinese hackers could be laying groundwork for disruption / AP
“State-backed Chinese hackers have been targeting U.S. critical infrastructure and could be laying the technical groundwork for the potential disruption of critical communications between the U.S. and Asia during future crises, Microsoft said Wednesday.”
Chinese hackers spying on US critical infrastructure, Western intelligence says / Reuters
“A state-sponsored Chinese hacking group has been spying on a wide range of U.S. critical infrastructure organizations, from telecommunications to transportation hubs, Western intelligence agencies and Microsoft said on Wednesday.”
Who are Volt Typhoon and other Chinese groups accused of hacking US firms and others? / Reuters
China rejects claim it is spying on Western critical infrastructure / Reuters
China-backed hacker targets infrastructure in U.S., Guam: Microsoft / Nikkei Asia (paywall)
China hits back after Microsoft says state-sponsored group hacked critical US infrastructure / FT (paywall)

Belt and Road
Xi Jinping calls on Eurasian nations to boost ties with belt and road as Beijing seeks to expand influence / SCMP (paywall)
“Chinese President Xí Jìnpíng 习近平 has called on members of the Eurasian Economic Union to strengthen their ties with Beijing’s Belt and Road Initiative, as China seeks to expand its influence in the traditionally Russia-influenced region.”

Hungary
Hungary is becoming more important to China / The Economist (paywall)
“As China surveys the grim landscape of its foreign policy in Europe, battered by differences over matters ranging from the war in Ukraine to human rights abuses in Xinjiang and China’s muscle-flexing around Taiwan, Hungary’s dogged friendliness towards China — and Russia — stands out.”

Israel
China urges Israel to stop ‘provocations’ and ‘encroachment’ as Palestinian tensions flare / SCMP (paywall)
“China urged Israel to stop ‘provocations’ and ‘encroachment’ on Palestinian land and resources in a strong rebuke of illegal West Bank settlements and a recent holy site visit by an extremist Israeli official.”

North Korea
From wigs to seafood, North Korea scrambles for China trade / Nikkei Asia (paywall)
“North Korea’s trade with China has recovered to 90% of pre-pandemic levels this year by staying under the radar of United Nations sanctions, as a walk through this border city shows.”

G7
China calls on G7 to not abuse trade restrictions – commerce ministry / Reuters
“China hopes the Group of Seven will not abuse trade and investment restrictions while saying that they will not seek decoupling from the country, Chinese commerce ministry spokesperson Shu Jueting said on Thursday at a news briefing.”

Japan WWII war crimes unearthed
Chinese archaeologists uncover World War II ‘horror bunker’ where Japanese scientists conducted lethal human experiments and shared data with U.S. / SCMP (paywall)
“Archaeologists have located an underground research facility where Japanese military scientists conducted ‘horrific biological weapon experiments’ on human subjects during World War II in northeast China.”

Pakistan
Pakistan pins hopes on Chinese help in debt crunch / FT (paywall)
“Pakistan expects China to roll over more than $2bn in debt due next month, but is still bracing itself for other repayment deadlines that risk tipping the country into default.”

Cayman Islands
Cayman Islands fights attempts by Singapore and Hong Kong to lure Asia’s wealthy / FT (paywall)
“The Cayman Islands has launched a fightback against attempts by Singapore and Hong Kong to rival it as a favorite destination for Asia’s hedge funds and super-rich to park assets.”

Russia
Power of Siberia: China keeps Putin waiting on gas pipeline / FT (paywall)
“Russia’s prime minister left China this week without a reward Moscow has long prized: a clear commitment from Beijing on Power of Siberia 2, a grand gas pipeline project to transform energy flows across Asia.”
China draws Russia closer while pushing Ukraine peace plan / WSJ (paywall)
“China and Russia moved to solidify their partnership with high-level meetings this week, in a departure from recent efforts by Beijing to play down its alignment with Moscow as it seeks to play the role of peacemaker in Ukraine.”

Ukraine
Analysis: How Zelenskyy sparked speculation he was on his way to meet Xi / Nikkei Asia (paywall)
“When Ukrainian President Volodymyr Zelenskyy stepped off a plane at Hiroshima airport on Saturday afternoon, his G-7 summit appearance was already a global hot topic. But among assembled diplomats and journalists, another speculation was being whispered, triggered by his choice of transportation. Was Zelenskyy flying on to Beijing for talks with Chinese President Xí Jìnpíng 习近平? Such a summit would shake the world.”

SOCIETY AND CULTURE:

Parking scandal
Nanning slams brakes on parking fee storm, mayor offers apology / Sixth Tone
“City severs ties with parking company after multiple complaints alleging overcharging. Some commuters owe thousands of yuan in parking fees.”

Mental health
China is getting seriously worried about student anxiety / Sixth Tone
“In 2021, China made reducing the academic pressure on students a top policy priority. But anxiety disorders in schools are still a severe problem — and appear to be affecting more children at younger ages.”