Highlighted links for June 5, 2023

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

BUSINESS AND TECHNOLOGY:

Pharma
AstraZeneca defies geopolitics to bet on China / FT (paywall)
“Drugmaker seeks opportunities due to the aging population and burgeoning biotech industry.”

Robotic surgery
Chinese robotic assisted surgery system challenges U.S.’s da Vinci / Nikkei (paywall)
“’Made in China’ push could help national champions claw away at industry giant.”

Faltering economic recovery
China won’t save the U.S. from recession this time / WSJ (paywall)
“Beijing’s supply-side stimulus eased the 2009 contraction, but don’t expect another one.”
China’s yuan may slip further to aid economic recovery — analysts / Reuters
“China’s yuan has skidded to six-month lows against the dollar and analysts say it could weaken further as investors fret over a bumpy pandemic recovery in the world’s second-largest economy.”
Big American companies wonder: When will China bounce back? / WSJ (paywall)
“Big American companies in China were counting on a post pandemic boom to boost global revenue. For many, it isn’t happening.”
China’s consumers are flush with cash, so why does the recovery have the wobbles? / Caixin (paywall)
“Ominous signs that China’s economic recovery may be slowing from an initial surge fueled by pent-up demand among consumers has analysts and bankers alike pondering whether continued loose monetary policy can underpin the revival, as a rise in risk aversion leads people to save more and shy away from borrowing.”

Xinjiang supply chains
The industries hit hardest by a U.S. ban on imports from Xinjiang / Quartz (paywall)
“On June 21, the U.S. will begin enforcing a ban on goods from Xinjiang, a major manufacturing hub and the site of extensive alleged human rights violations against the region’s Uyghur minority.”

Yuan internationalization
Can China’s yuan stake a bigger claim for global prominence following U.S. debt ceiling crisis? / SCMP (paywall)
“As investors around the world held their breath last month pending a political compromise on the United States’ $31.4 trillion debt ceiling, International Monetary Fund (IMF) managing director Kristalina Georgieva was among those hoping for a good outcome as the clock ticked closer to the deadline.”

Shein
Shein tries to thread U.S.-China needle / Reuters
“Shein is threading the world’s trickiest geopolitical needle. The fast fashion phenomenon, now worth $66 billion, is a formidable rival to Inditex’s Zara and H&M thanks to its marketing prowess and efficient Chinese supply chains — and despite the U.S.-China trade war.”

Censorship and the economy
China’s internet watchdog will set up fast lane for businesses to report online slander as economic revival tops list / SCMP (paywall)
“China’s top internet watchdog has pledged to open a fast lane for business sector complaints related to online slander, as it steps up corporate protections amid a drive to revive the country’s ailing economy.”

Moving supply chains away from China
VW is on a hunt for resources to remove China from Its EV batteries / WSJ (paywall)
“Volkswagen is searching the world, from Canada to Indonesia, for supplies to make the batteries in electric vehicles it sells in the U.S. and Europe less dependent on Chinese components, a senior VW executive said.”
As China risks grow, manufacturers seek plan B — and C and D / WSJ (paywall)
“For much of the past decade, Western companies have sought an alternative to China to manufacture goods — a shift executives call ‘China plus one.’ Increasingly, the strategy looks more like China plus many.”

Stock market blues
Investors have soured on China’s stocks, renewing fears about economy / NYT (paywall)
“They initially reacted enthusiastically to China’s reversal of pandemic restrictions but have since taken a dimmer view of the country’s recovery.”
Sharp rally in Chinese stocks falls short of dispelling gloom / Bloomberg (paywall)
“The sharpest rally for Chinese stocks in three months is doing little to convince money managers that the market is set for a sustained turnaround.”

Indebted Evergrande
China Evergrande unit misses payments on wealth management products / Caixin (paywall)
“A subsidiary of debt-riddled property giant China Evergrande Group in May failed to repay investors in its wealth management products a previously promised amount.”

Local economies
China’s fiscal condition healthy, but local govts see high debt risks — Xinhua / Reuters
“China’s fiscal status overall is sound and safe, but some local governments are facing high debt risks and large pressure of debt repayment, state media Xinhua news agency reported on Monday, citing a finance ministry official.”

Oil supply delays?
Ports in China’s oil hub Shandong scrutinizing old tankers — sources / Reuters
“Ports in China’s Shandong province are demanding more detailed information about oil tankers that are more than 15 years old that call at their terminals, sources with knowledge of the matter said, potentially delaying the unloading of crude shipments in the world’s biggest oil importer.”

AI
AI frenzy sweeps China as companies search for their own ChatGPT / Nikkei Asia (paywall)
“Money is no object as investors big and small rush into chatbot technology.”
The illusion of China’s AI prowess / Foreign Affairs
“The artificial intelligence revolution has reached Congress. The staggering potential of powerful AI systems, such as OpenAI’s text-based ChatGPT, has alarmed legislators, who worry about how advances in this fast-moving technology might remake economic and social life.”
Chinese quants redouble AI bets amid ChatGPT frenzy / Reuters
“Chinese quant hedge fund managers are rushing to explore ChatGPT-style tools, embracing the emerging AI technology that has sparked a global frenzy since the release of the widely popular Microsoft-backed OpenAI chatbot.”
China cracks down on surge in AI-driven fraud / WSJ (paywall)
“Artificial intelligence is making its way into daily Chinese life — including a surge of AI-driven fraud.”

U.S.-China tech war
China’s drone industry crosses $14-billion mark in annual output in 2022 amid local market expansion into low-altitude logistics / SCMP ( paywall)
“China’s drone industry crossed the 100 billion yuan ($14 billion) mark for the first time last year, as market expansion into areas such as low-altitude logistics helped drive domestic demand.”

Foreign businesses in China
China to crack down on monopolies while improving access for foreign investors in reform push / SCMP (paywall)
“Chinese authorities have launched a fresh campaign to crack down on unfair competition and monopolies while improving access for foreign investors, as Beijing strives to create an improved business environment to lift market sentiment and drive its economic recovery.”
Opinion: How exit bans are harming China’s push to welcome foreign business / SCMP (paywall)
“Beijing is rolling out the red carpet for top overseas executives to show it is open for business again. Yet it is also expanding its ability to stop people from leaving the country — sometimes just because they are on the wrong side of a business dispute or work for the wrong people.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Food security
Wheat crops face ‘unprecedented’ risks as world heats up, study finds / SCMP (paywall)
“Heatwaves will become more frequent across the globe — a trend that a new climate analysis suggests will have serious implications for countries that produce wheat, including China and the United States.”
Battling rain and time, Henan farmers race to salvage wheat crop / Sixth Tone

Tech addiction
Tech addiction is leaving China’s rural youth wired for distraction / Sixth Tone
“Studying far from home and without parental supervision, millions of ‘left-behind’ students in rural China are staring at an escalating tech addiction crisis that demands urgent attention.”

POLITICS AND FOREIGN AFFAIRS:

Anti-espionage campaign
China’s anti-espionage chief urges stronger crackdown using legal tools / SCMP (paywall)
“China’s anti-espionage chief Chén Yīxīn 陈一新 has called on senior officials to study the country’s new anti-espionage law and intensify its “legal crackdown” related to state security.”
Another China development bank ex-official comes under probe / Caixin (paywall)
“Former Communist Party chief and president of the Shanghai branch of China Development Bank, the nation’s biggest policy lender, was placed under investigation by graft busters.”

Hong Kong — suppression of protests and media
Hongkongers struggle to have voice heard on Tiananmen Square anniversary / FT (paywall)
“Hong Kong was known for holding the biggest Tiananmen remembrance event on Chinese territory, drawing tens of thousands of people to candlelight vigils. But after a crackdown on pro-democracy protests and the introduction of a sweeping national security law by Beijing in 2020, dissent has been stamped out, and while all pandemic-related restrictions are gone, this year’s June 4 anniversary will scarcely be noted.”
Hong Kong remembered June 4 Tiananmen Massacre, until it couldn’t / NYT (paywall)
Police detain 23 people in Hong Kong on Tiananmen anniversary / Reuters
China tightens access to Tiananmen Square, 32 detained in Hong Kong on anniversary of 1989 protests / AP
Hong Kong journalist wins appeal over accessing records to research attack on protesters / Reuters
“Hong Kong’s top court on Monday overturned the conviction of journalist Bao Choy, who had been accused of making false statements to access vehicle registration records for a documentary about an attack on pro-democracy protesters in 2019.”
Award-winning Hong Kong journalist wins appeal in rare court ruling upholding media freedom / AP

Shangri-La Dialogue and U.S.-China tensions
China defense chief’s hard line on Taiwan ‘a message for the region’ / SCMP (paywall)
“China’s defense chief General Lǐ Shàngfú 李尚福 has told his Singaporean counterpart the PLA will ‘absolutely not’ renounce the use of force on Taiwan, in what experts said was a warning not only to Washington but also to regional powers.”
Chinese state media dismiss U.S. diplomat’s Beijing visit / Reuters
“A Chinese state-backed newspaper criticized the visit of a senior U.S. State Department official to China, saying his visit was motivated more by Washington’s own goal to portray itself as the side seeking communication and not Beijing.”
U.S. defense secretary says Washington won’t stand for ‘coercion and bullying’ from China / AP
“U.S. Secretary of Defense Lloyd Austin vowed Saturday that Washington would not stand for any “coercion and bullying” of its allies and partners by China, while assuring Beijing that the United States remains committed to maintaining the status quo on Taiwan and would prefer dialogue over conflict.”
How the U.S. is deepening military alliances in China’s backyard / FT (paywall)
“The Biden administration is stepping up security initiatives to boost deterrence and better prepare for potential conflict over Taiwan.”
U.S.’ Taiwan envoy urges Beijing to keep communication lines open to avert conflict / SCMP (paywall)
“Washington and Beijing must maintain a smooth channel of communication to avoid conflict, the U.S.’ de facto envoy to Taiwan said on Monday at the start of a six-day visit to the island.”
Military leaders warn U.S.-China divide threatens to bring down ‘iron curtain’ in Asia / WSJ (paywall)
“With the U.S. and China trading accusations over strained ties, Asia-Pacific defense officials found a common voice urging the two powers to talk more and warning of the heightened risks of the strained relationship spiraling into a direct conflict.”
China accuses U.S. of ‘bullying’ and upsetting peace in the region / Caixin (paywall)
CIA chief made secret trip to China in bid to thaw relations / FT (paywall)
China wants U.S. to feel risk when operating in its backyard / WSJ (paywall)
“Beijing’s rejection of a meeting between defense ministers reflects refusal to accept U.S. presence in the region.”
U.S. defense chief warns China against risky behavior in Indo-Pacific / FT (paywall)
“U.S. defense secretary Lloyd Austin on Saturday criticized China for conducting dangerous aerial intercepts over the South China Sea and warned that Washington would not be deterred by threatening behavior in the Indo-Pacific region.”

Near misses between U.S. and Chinese warships and aircraft
U.S. Navy shows Chinese warship’s ‘unsafe interaction’ near Taiwan / Reuters
“The U.S. Navy has released a video of what it called an ‘unsafe interaction’ in the Taiwan Strait, in which a Chinese warship crossed in front of a U.S. destroyer in the sensitive waterway, a risky incident amid deteriorating Sino-U.S. ties.”
China defends buzzing American warship in Taiwan Strait, accuses U.S. of provoking Beijing / AP
“China’s defense minister defended sailing a warship across the path of an American destroyer and Canadian frigate transiting the Taiwan Strait, telling a gathering of some of the world’s top defense officials in Singapore on Sunday that such so-called ‘freedom of navigation’ patrols are a provocation to China.”
U.S. and China trade barbs as warships have close encounter in Taiwan Strait / WSJ (paywall)

Diplomacy to address risks?
‘External risks’: the focus of the next stage in China’s diplomacy, foreign ministry says / SCMP (paywall)
“China should focus on improving its capacity to address ‘external risks’ in its next stage of diplomacy, and will allocate resources to ‘key challenges,’ according to an article by China’s foreign ministry on Friday.”

The end of engagement
Opinion: What engagement with China has meant for me / WSJ (paywall)
Lingling Wei writes about “the mutual openness that began in the 1990s [that] made it possible to envision a better future.”

Artic
Arctic chill: western nations fear China and Russia will exploit regional tension / FT (paywall)
“Western countries are worried that China and Russia could try to exploit growing geopolitical tensions in the Arctic to increase their influence over the region and its abundant natural resources.”

France
‘Big deal out of nothing’: China’s France envoy slams ‘attack’ after post-Soviet states uproar / SCMP (paywall)
“China’s ambassador to France has broken his silence over a diplomatic uproar he triggered by questioning the sovereignty of post-Soviet republics, saying the furious reaction ‘stirred up’ by a French broadcaster was ‘very unfair.’”

U.K.
Sunak tries to fix China ties without upsetting U.K. hawks / Bloomberg (paywall)
“British Prime Minister Rishi Sunak is trying to repair the U.K.’s relationship with China without being seen doing it.”

Malaysia
South China Sea: Chinese boat scavenging scrap metal from WWII wrecks shows Malaysia’s vulnerability to maritime actions / SCMP (paywall)
“For several years, Malaysian diver Hazz Zain has watched with dismay as the sunken wrecks of two British World War II battleships — the designated war graves of 842 men — were stripped of their precious steel by illegal salvage crews looting historic sites buried beneath the waves.”

Indonesia
Indonesia hosts great-power rivals China, U.S. in rare joint naval exercises / SCMP (paywall)
“American, Chinese and Russian navy ships are due to join exercises in Indonesian waters on Monday to drill responses to humanitarian disasters, in a rare moment of cooperation during a rancorous period of diplomacy and heightened defense competition across the Asia-Pacific.”

India
U.S. defense secretary discusses upgrading ties with India to counter China / AP
“U.S. Defense Secretary Lloyd Austin on Monday discussed upgrading partnership with India, a major arms buyer, and set a roadmap for cooperation for the next five years as both countries grapple with China’s economic rise and increased belligerence, officials said.”
Shangri-La Dialogue: India no threat to China’s military, PLA delegation says / SCMP (paywall)
“India will not pose a security threat to China because it is still incapable of challenging Beijing in defense manufacturing and modernisation of its military, said Chinese military delegates to Asia’s premier security forum.”

Russia, Ukraine, and Eastern Europe
Chinese Envoy Says Russia, Ukraine Talks Difficult Right Now / Bloomberg (paywall)
“China’s ambassador Lǐ Huī 李辉 said it would be difficult for Russia and Ukraine to currently hold meaningful talks to end their conflict, a sign of the complexity of the situation as Beijing tries to broker a peace deal.”
China weighs next Ukraine peace mission after first yields little progress / Reuters
“The Chinese envoy who toured European capitals last month seeking to promote Ukraine peace talks said on Friday that Beijing is considering another mission, after acknowledging that his trip may not produce immediate results.”
Russia, Ukraine open to peace talks but obstacles remain, China’s peace envoy says / Caixin (paywall)
Newly approved U.S. flights by Chinese airlines avoid Russian airspace / Reuters
“Chinese airlines are avoiding flying over Russian airspace in newly approved flights to and from the United States, according to flight tracking website FlightAware and industry officials.”

Oceania
America is winning against China in Oceania / Foreign Policy
“There is less to Beijing’s security gains in the Pacific than meets the eye.”
Fiji minister says terminating police pact with China ‘possible’ / Nikkei (paywall)
“New government still reviewing deal, wants to talk to Beijing about future ties.”

SOCIETY AND CULTURE:

Landslide kills workers
19 killed in southwest China landslide covering mine worker dormitory / AP
“A landslide tore through a mining company’s worker dormitory early Sunday morning in southwestern China, killing 19 people, authorities said.”

Social media
Can rural vloggers make China’s countryside cool? / Sixth Tone
“Rural vloggers are breaking out of the highly curated Lǐ Zǐqī 李子柒 mold to show the countryside as it really looks. Audiences are responding.”

Increasing child birth rates
China faces uphill battle as it tries to instill ‘pro-birth’ culture / WSJ (paywall)
“Using coercion and fines, China was adept at preventing couples from having children during the decades of its one-child policy. It has been less successful in fostering a ‘birth-friendly society.’”

Hong Kong — crime
Hong Kong police arrest woman accused of killing 3 young daughters / AP
“Hong Kong police arrested a woman accused of killing her three young daughters on Monday in a case that has shocked many in the city, where violent crime is rare.”
Hong Kong mother suspected of suffocating 3 daughters aged 2 to 5; police say marital problems with estranged husband may have led to tragedy / SCMP (paywall)