Highlighted links for June 6, 2023

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

BUSINESS AND TECHNOLOGY:

The breakup of Sequoia
Venture-capital firm Sequoia to separate China business as political tensions rise / WSJ (paywall)
“The Silicon Valley company will split into three independent partnerships with different brands.”
U.S. venture capital giant Sequoia to spin off China business / FT (paywall)
“Group plans to break up into three entities by March next year.”

Struggling real estate firms in danger of delisting
Over a dozen Chinese developers face delisting from exchanges / Bloomberg (paywall)
“More than a dozen Chinese property firms face the risk of delisting from the country’s stock exchange, an event that will shut an important funding channel for the beleaguered industry.”

China’s first cruise liner
China’s first home-grown large cruise liner undocks in Shanghai in breakthrough for shipbuilding, high-end manufacturing / SCMP (paywall)
“China’s first home-grown large cruise liner, regarded as a breakthrough in the nation’s shipbuilding and high-end manufacturing, left its dock in Shanghai on Tuesday after nearly four years of construction to start sea trials.”
What is China’s first home-grown large cruise liner, and why is it a breakthrough? / SCMP (paywall)
China’s first homegrown cruise liner / Caixin (paywall)

Electric vehicles and batteries
CATL shares nosedive amid speculation on weakened Tesla tie / Caixin (paywall)
“Chinese battery giant denies report of change in strategic relationship with its biggest customer because of new U.S. EV subsidy rules.”
Tesla court case against Shanghai protester gets underway / Bloomberg (paywall)
“A Chinese court started initial hearings in a Tesla Inc. lawsuit against a protester who climbed on a Model 3 car at the 2021 Shanghai Auto Show and shouted that a brake failure had almost killed her family.”
Musk’s China visit reveals dealmaking for Tesla’s expansion / Nikkei Asia (paywall)
“Tesla CEO Elon Musk has fully launched a charm campaign to persuade Chinese authorities to greenlight plans to expand business in the world’s largest electric-vehicle market, despite concerns over excessive competition.”
Supercharged BYD overtakes LG as world’s No 2 EV battery supplier as electrification drive quickens / SCMP (paywall)
“BYD has gone past LG Energy Solution as the world’s second-largest electric vehicle battery producer, reinforcing China’s dominance of the industry as EV adoption picks up pace globally.”

Mixed economic signals
China asks big banks to cut deposit rates to boost growth / Bloomberg (paywall)
“Chinese authorities asked the nation’s biggest banks to lower their deposit rates for at least the second time in less than a year, according to people familiar with the matter, marking an escalated effort to boost the world’s second-largest economy.”
China says local debt under control, no systemic risk seen / Caixin (paywall)
“China said local government debt is manageable and authorities have enough financial resources to avoid risks from spreading, seeking to allay investor fears of possible defaults.”
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.”

Semiconductors
Chinese PC maker says new CPU was made with ‘support of Intel’ / Nikkei Asia (paywall)
“Chinese computer manufacturer Powerleader Computer System is fending off allegations that its new central processing unit (CPU) is an old Intel chip in disguise, saying it was developed with support from the U.S. chipmaking giant.”
Chipmaker TSMC defends overseas expansion plans / FT (paywall)
“Shareholders question strategy but chair says new foundries outside Taiwan can help it maintain global leadership.”

Italy reconsiders Chinese stake of iconic tire firm
Pirelli is in peril’: Pressure rises over Chinese grip on Italian tyremaker — Rome assesses whether to limit state-owned ChemChina’s voting rights or force it to sell down 37% stake.

VCs and fund managers
China’s top VCs warn dollar fundraising will only get tighter / Nikkei Asia (paywall)
“China-focused venture funds are finding it increasingly difficult to raise funds from Western investors due to rising geopolitical tensions and a lackluster recovery in Asia’s biggest economy, some of the top players in the industry are warning.”
Registrations for private fund managers nosedive after new rules take effect / Caixin (paywall)
“Only two companies were allowed to register as private fund managers (PFMs) in China in May, down from 139 the previous month.”

Can the U.S. compete with China in solar?
A U.S. startup’s 15-year struggle to survive China’s solar grip / WSJ (paywall)
“CEO says green subsidies in the U.S. mean its fourth factory attempt could be the charm.”

Tech regulation
China cracks down on online stealth marketing / Nikkei Asia (paywall)
“China has tightened restrictions on how companies market products and services to the country’s vast online population, in a move that could have effects on corporate social media campaigns.”

China raises tuition
Chinese universities raise tuition fees by as much as 54% / Reuters
“Chinese universities are drastically increasing tuition fees this year, with some making their first rises in two decades, hurt by a reduced national budget for tertiary education and tight local government finances.”

Why did police raid a debt collector?
Chinese debt collector suspends business after police raids / Caixin (paywall)
“Chinese debt collection giant Hunan Yongxiong Asset Management Group Co. Ltd. has suspended its business after a swathe of its employees were taken away by police…the news of Yongxiong’s situation has rattled China’s debt collection industry and banks’ retail loan divisions, as Yongxiong’s major clients are licensed financial institutions and the disposal of nonperforming personal loans usually involves debt collection…Some people in the debt collection industry speculate that Yongxiong may have excessively amassed personal data, which is why it got into trouble. An insider at Yongxiong denied this speculation.”

Mainland investors in Hong Kong
Mainland investors snap up most Hong Kong shares in two years / Caixin (paywall)
“Chinese mainland investors bought the most Hong Kong shares in over two years through trading links with the city on Monday.”

Crypto crimes
U.S. securities regulator sues Binance and CEO for breaking securities rules / Caixin (paywall)
“The U.S. Securities and Exchange Commission accused Binance Holdings Ltd. and its Chief Executive Officer Zhào Chángpéng 赵长鹏 of mishandling customer funds, misleading investors and regulators, and breaking securities rules.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Robotic surgery
Chinese robotic assisted surgery system challenges U.S.’s da Vinci / Nikkei Asia (paywall)
“Chinese companies are developing homegrown surgical robots in an attempt to challenge the dominance of U.S.-based Intuitive Surgical’s da Vinci systems, as the government pushes to domesticize the medical industry.”

Biodiesel
China biodiesel exporters pledge fraud crackdown after criticism from EU / Caixin (paywall)
“Chinese biodiesel producers pledged to improve compliance and export standards, days after European rivals called for action to stem “potentially fraudulent” shipments.”

POLITICS AND FOREIGN AFFAIRS:

Censorship in Hong Kong
‘Glory to Hong Kong’ protest song to be banned? Government files court injunction against promoting tune / SCMP (paywall)
“Hong Kong is seeking a court order to permanently bar anyone from advocating a popular protest song from the 2019 anti-government unrest.”
Hong Kong government seeks court injunction to ban ‘Glory to Hong Kong’ protest song / AP
Hong Kong government seeks court injunction to ban protest anthem / Reuters
Hong Kong cracks down on protest song at center of anthem row / Bloomberg (paywall)

Hong Kong banking
Hong Kong to allow lenders from Qatar, UAE to advise on local banking sector in a boost to financial ties with Middle East / SCMP (paywall)
“Hong Kong is set to allow banks from Qatar, the United Arab Emirates (UAE) and Liechtenstein to advise on industry issues in the city, a step that will enhance collaboration especially between Hong Kong and the Middle East.”

Japan’s chip curbs
U.S. will be ‘sole winner’ if Japan copies chip curbs on China, Beijing’s envoy to Tokyo warns / SCMP (paywall)
“Japan will be the loser alongside China if it continues to follow Washington’s lead in curbing semiconductor exports, leaving the U.S. as the ‘sole winner,’ Beijing’s top envoy to Tokyo has warned.”

Taiwan
Beijing voices support for Taiwan’s pro-unification forces in latest exchange / SCMP (paywall)
“Beijing’s top official on Taiwan affairs voiced support for pro-unification forces on the self-ruled island and opposition to any external interference during talks with the visiting leader of its New Party.”

U.S.-China competition and tensions
Senior U.S., Chinese diplomats hold ‘candid’ talks to avoid escalation of tensions / AP
“Senior U.S. and Chinese diplomats held ‘candid and productive’ talks in Beijing and agreed to keep open lines of communication to avoid tensions from spiraling into conflict, officials said Tuesday.”
Senior China, U.S. officials meet in Beijing to discuss mending frayed relations / Caixin (paywall)
Why dangerous encounters by U.S. and Chinese militaries look set to continue / Reuters
“When a Chinese warship came within 150 yards of a U.S. destroyer in the Taiwan Strait on Saturday and forced it to slow down, it was the second time in a matter of days in which Chinese and U.S. military personnel came close to a major incident.”
China, U.S. talks in Beijing strike upbeat tone but risks remain / Reuters
“Meetings between senior U.S. and Chinese officials in China this week struck an upbeat chord, with both sides agreeing to maintain communication lines, even as Beijing remains leery of more ‘provocative’ U.S. moves and open clashes are still a risk.”
After dangerous encounters, U.S. accuses China of military ‘aggressiveness’ / Reuters
“The White House said on Monday recent dangerous encounters between U.S. and Chinese forces in the Taiwan Strait and South China Sea reflect a growing aggressiveness by Beijing’s military that raises the risk of an error in which ‘somebody gets hurt.’”
China’s military provocations / WSJ (paywall)
“The risk of conflict in the Western Pacific is growing as China raises the military stakes with a goal of dominating the region. The Biden Administration will have to keep its nerve, while preparing for a more aggressive response if the Chinese Communist Party keeps pushing.”

Operation Fox Hunt
Chinese ex-official’s wife says alleged repatriation pressure turned her life in US ‘upside-down’ / AP
“A former Chinese official and his wife had left their homeland and kept their U.S. address private. Yet eight years later, two strangers were banging on their New Jersey front door and twisting the handle, the wife testified in a U.S. court Monday.”

High hopes in China for relationship with Germany
China-Germany relationship to hit new heights, says Chinese Premier Li Qiang after meeting SDP delegation in Beijing / SCMP (paywall)
“Beijing stands ready to propel its strategic partnership with Berlin to new heights, Chinese Premier Lǐ Qiáng 李强 said during a meeting with a delegation from the ruling German Social Democratic Party two weeks before his visit to Germany.”

Honduras
Honduran president headed to China in first trip after ties established / Reuters
“Honduran President Xiomara Castro is set to travel this week to China, her foreign minister said on Monday, the leftist leader’s first visit to the Asian giant after establishing formal diplomatic relations with it in March.”

Italy
Giorgia Meloni seeks to cement power by remaking corporate Italy / Bloomberg (paywall)
“The right-wing leader must decide whether to opt out of China deal as she looks to drive change in the economy through state-owned companies.”

Russia
China, Russia launch joint air patrol, alarms South Korea / Reuters
“China and Russia conducted a joint air patrol on Tuesday over the Sea of Japan and East China Sea for a sixth time since 2019, prompting neighboring South Korea to scramble fighter jets.”

Ukraine war
Ukraine war: China and France agree to keep pushing for political settlement in top diplomats’ phone call / SCMP (paywall)
“Top Chinese and French diplomats have signaled they are continuing to try for a political settlement in the Ukraine war as a Chinese peacemaking trip to Europe wrapped up having achieved little.”
China says it’ll work on political Ukraine solution with France / Bloomberg (paywall)
Russia, Ukraine open to peace talks but obstacles remain, China’s peace envoy says / Caixin (paywall)
“China’s peace envoy said both Russian and Ukrainian officials are open to peace negotiations though obstacles remain before all parties of the 15-month war in Europe can sit down and talk.”

Morocco
When will Africa get its first gigantic battery factory? / Caixin (paywall)
“That could change following an agreement announced last week between Chinese battery manufacturer Gotion High-Tech Co. and the Kingdom of Morocco.”

Middle East
The Middle East: Goodbye America, hello China? / Al Jazeera
“In an attempt to salvage his country’s waning influence in the Middle East, U.S. Secretary of State Antony Blinken is embarking on a three-day visit to Saudi Arabia this week. But advancing ‘strategic cooperation’ with his Saudi and Gulf counterparts may well prove an uphill battle.”

SOCIETY AND CULTURE:

LGBTQ
China’s mysterious entertainment crackdown hits gay pride events / Bloomberg (paywall)
“A wave of last-minute cancellations of concerts, conferences and other gatherings across China is now hitting LGBTQ-related events, including several related to this month’s Pride celebrations.”

Transportation
Shanghai metro 3.0 / Sixth Tone
“From a single line in 1993 to becoming one of the largest transport systems in the world, the Shanghai Metro has helped shape the urban landscape for 30 years.”

Urban planning
How scooters caught China’s urban planners off guard / Sixth Tone
“The country’s cities were planned with cars in mind. Can they be made safe for scooters?’

Social media
‘Tears of the times’: The demise of China’s first major online community / Sixth Tone
“A group of Tianya’s former employees and loyal fans are trying to revive the once high-flying discussion forum, but raising funds and attention is proving difficult to do.”

Cyberbullying
In Wuhan, mother takes own life days after son’s fatal accident / Sixth Tone
“​​Her tragic death has triggered outrage after reports surfaced online that she had been subjected to cyberbullying.”