Highlighted links for June 13, 2023

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

BUSINESS AND TECHNOLOGY:

Electric vehicles
Chinese EV maker Human Horizons’ $5.6 billion deal among agreements worth $10 billion signed during two-day summit / SCMP (paywall)
“Human Horizons’ agreement with Saudi’s investment ministry comes amid a push by Riyadh to develop a domestic EV manufacturing industry.”
NIO ends holdout in China’s auto price war / Caixin (paywall)
“Electric-vehicle maker NIO Inc. ended its holdout in China’s car price war and slashed base prices on all of its vehicles by 30,000 yuan ($4,200) in hopes of bolstering sales amid escalating competition in China, the world’s largest auto market.”
NIO: Chinese electric-car company enters race to lower prices and cut costs / FT (paywall)
China’s EV battery industry expansion tests transport capacity / Caixin (paywall)
“May production surges 57.4% year-on-year as experts see need for more-advanced transportation technology to keep up with demand.”
BYD’s plan to vie with Tesla leaves out American EV buyers / Bloomberg (paywall)
“New climate laws could end up backfiring and leave Americans paying more for EVs than the rest of the world.”

Temu and forced labor
Temu sells products in U.S. linked to forced labor in China’s Uyghur region, analysis shows / Bloomberg (paywall)
Tel Aviv-based Ultra Information Solutions says it found at least 10 items made or sold by businesses located in Xinjiang that are also available in the U.S. on Temu.

Subsea cable decoupling
How the U.S. is pushing China out of the internet’s plumbing / FT (paywall)
“Experts say the subsea cable market is in danger of dividing into eastern and western blocs amid fears of espionage and geopolitical tensions.”

China’s economic recovery
China cuts key policy rate to support economy after weak trade and inflation data, with ‘wider easing’ to follow / SCMP (paywall)
“China’s central bank cut a key policy rate on Tuesday in a clear signal of monetary loosening to support the struggling national economy, a move which could trigger ‘wider easing, ‘analysts said.”
China’s central bank moves to shore up recovery / WSJ (paywall)
“China’s central bank unexpectedly trimmed a key lending rate, a sign of policy makers’ growing unease over a sputtering recovery that likely foreshadows further steps to nudge China’s economy back on track.”
China weighs broad stimulus with property support, rate cuts / Bloomberg (paywall)
“China is considering a broad package of stimulus measures as pressure builds on Xi Jinping’s government to boost the world’s second-largest economy, according to people familiar with the matter.”
China shifts to stimulus mode With Xi’s options dwindling / Bloomberg (paywall)

Moving plastics out of China
Distributor Bunzl shifts more sourcing out of China / FT (paywall)
“FTSE 100 distributor of everything from plastic spoons to PPE looks to ‘de-risk’ its supply chain.”

Apple supply chain
Apple’s supply chain in China evolves as Foxconn hires, Compal invests in Vietnam and MacBook production relocates to Thailand / SCMP (paywall)
“The world’s largest iPhone factory is hiring for iPhone 15 production in China, but there are signs the country’s dominance in the Apple supply chain continues to face competition from Southeast Asia.”

Investors turning away from China
Demand grows for Asian investment products that exclude China / FT (paywall)
“Global fund managers say they are rushing to meet client demand for new Asian investment products that exclude China, as investor appetite for the region’s largest economy is hit by slowing growth and mounting geopolitical risk.”

Oil
Top Chinese, European oil giants stage fierce battle in Middle Eastern crude market / Bloomberg (paywall)
“​​Some of the biggest names in the global oil market are piling in on opposite sides of a normally sedate Middle East crude-trading window, making it harder to assess the impact of deep oil production cuts in the world’s top exporting region.”

Xiongan — China’s new planned city
Top provincial officials survey state-owned enterprise HQs to help President Xi Jinping move key offices out of Beijing / SCMP (paywall)
“Top Hebei province officials have visited the headquarters of state-owned enterprises in Beijing to support President Xí Jìnpíng’s 习近平 push to relocate these key offices to Xiongan New Area, one of his signature projects, despite apparent reluctance on the ground to leave the capital.”

• On The China Project : China’s techno-natural utopia: A deep dive into Xiong’an

The exodus of Chinese millionaires
China millionaire exodus to continue this year: report / Nikkei Asia (paywall)
“​​An exodus of Chinese millionaires is expected to continue this year, according to a new report by investment migration consultancy Henley & Partners, as the economy slows and the government tightens political controls.”
China is biggest loser of millionaires globally, report says / Bloomberg (paywall)
Huawei wins lion’s share of China Mobile’s 5G base station contracts, in much needed boost to revenue / SCMP (paywall)
“Chinese telecoms giant Huawei will supply over half of the base stations for China Mobile’s 5G network between 2023 and 2024, in a deal that will bring in more than US$570 million of much needed revenue.”

Real estate woes
Chinese billionaire Wang fights to save Wanda empire after $40 billion loss / Bloomberg (paywall)
“Just last year, billionaire Wáng Jiànlín 王健林 had appeared to cement his reputation as one of the few remaining Chinese property tycoons to sidestep a wave of debt defaults sweeping the industry.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Climate change
As climate change hits, China weighs new water megaprojects / SCMP (paywall)
“As droughts loom, China is planning ambitious new water infrastructure projects in hope that moving more of the precious liquid across the country will mitigate the impact of climate change — but experts warn more river diversions may be costly.”
The scarcity of water is emerging as a global economic threat. With China and India looking the most at risk / CNBC

Environmental conflict
Scientists hold U.S. nuclear tests responsible for South China Sea radioactivity / SCMP (paywall)
“Nuclear weapons testing by the U.S. in the 1940s and 1950s has been blamed for higher than average levels of radioactivity thousands of kilometers away in the South China Sea.”

Shanghai International Carbon Neutrality Expo
Global brands showcase commitment to sustainability at carbon neutrality expo / Sixth Tone
“From low-carbon hydrogen production to environmental impact indicators, global brands are innovating in pursuit of a greener future.”

Power grid
China’s southern cities call for power saving as grid stress increases / Reuters
“Industrial and oil refining cities in southern China are urging firms and citizens to curb electricity, while Hainan province called for less power usage at peak times, as grids become more stressed due to persistent searing hot weather.”

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
What does the West really know about Xi’s China? / Foreign Affairs (paywall)
“Insights into decision-making in Beijing are harder to get than they have been for 50 years. The main reason for this is that the Chinese Communist Party (CCP) is more authoritarian and less open than it has been at any point since Máo Zédōng 毛泽东 was in charge.”

Hong Kong
Judge delays decision on Hong Kong’s request to ban protest song online / SCMP (paywall)
“The government, seeking a broad order to stop the internet distribution of ‘Glory to Hong Kong,’ will return to court next month to address a judge’s questions.”

Taiwan
Taiwan civil defence handbook includes tips on identifying Chinese soldiers / Reuters
“Taiwan’s military released an updated civil defense handbook on Tuesday that for the first time includes a section on how to tell the difference between Chinese and Taiwanese soldiers based on their uniforms, camouflage and insignia.”
China holds live-fire drills in East China Sea north of Taiwan / Reuters
“China began military exercises in the East China sea to the north of Taiwan on Tuesday, including live-fire exercises from warships, as the U.S and its allies conduct their drills in the Western Pacific.”
Sunk costs: The difficulty of using sanctions to deter China in a Taiwan crisis / CSIS
“Increasingly, policymakers are looking at expanding the deterrent toolkit to include nonmilitary tools, including the threat and use of sanctions.”

U.S.-China competition and tensions
Flight training for Chinese military pilots targeted in latest U.S. export crackdown / Reuters
“The Biden administration on Monday added 43 entities to an export control list, including Frontier Services Group Ltd, a security and aviation company previously run by Erik Prince, for training Chinese military pilots and other activities that threaten U.S. national security.”
U.S. officials call spy program key to big cases, but give few details / Reuters
“Senior U.S. government officials warned on Tuesday of serious national security risks if a key surveillance program set to expire this year isn’t renewed, but declined to share specifics of cases in which it had been useful.”
Promoting more China-U.S. interdependence is the best way to guarantee peace, Summers says / Caixin (paywall)
“The U.S. and China can build a stronger relationship through collaborating on areas such as the climate, structuring of multilateral development banks, and the strengthening of global capital markets, said former U.S. Treasury Secretary Lawrence Summers at a Caixin-hosted business forum on Monday.”
Asia is key to easing Sino-U.S. tensions, says Asia Society co-chair / Caixin (paywall)
“As more of the world’s wealth becomes concentrated in the U.S. and China, the two largest economies need to stop fighting and start rebuilding their relationship, and Asia could play a key role, said Asia Society Co-Chair John Thornton at the first Asia New Vision Forum in Singapore.”
Xi prepares China for ‘extreme’ scenarios, including conflict with the West / WSJ (paywall)
“As Beijing and Washington move gingerly toward restoring high-level exchanges, Xí Jìnpíng 习近平 is stepping up his effort to gird China for conflict.”
Cuba base would help China identify strike targets in U.S. / WSJ (paywall)
“Beijing’s military has long had suspected outposts in Asia to monitor satellite transmissions, phone calls and internet traffic.”
U.S. diplomacy has slowed China’s expansion of spying: Blinken / Nikkei Asia (paywall)
“The Biden administration has taken diplomatic steps that have slowed down a Chinese effort to project military power around the world, Secretary of State Antony Blinken said on Monday ahead of a visit to Beijing later this week.”
China says U.S. eagerness to engage is an ‘illusion’ / Reuters
Opinion: Russia, China and Iran in America’s backyard / WSJ (paywall)
Walter Russell Mead says these countries “threaten the U.S. with their moves into Latin America.”

Southeast Asia
China’s influence in South-East Asia has grown. America’s has waned / The Economist
“As the rivalry between America and China heats up, they have found themselves in a tricky position. Many have become suspicious of China’s supposed economic beneficence. Some are also riled at the way China uses its economic heft to bully its neighbors. But, despite pressure from America, few are keen to disentangle economically from Asia’s great power.”

Netherlands
Dutch government to screen Chinese tech students on security risks / FT (paywall)
“The Dutch government plans to vet international students after universities barred some Chinese postgraduates from top technology degrees over fears they could be a risk to national security.”

South Korea
South Korean leader criticizes China envoy over ‘inappropriate’ remarks / Reuters
“South Korea’s president stepped up criticism of China’s ambassador on Tuesday, saying the envoy had been disrespectful in suggesting South Korea had made the wrong choice by siding with the United States against China.”
South Korea pivots to ‘hard-line stance’ on China as Yoon questions envoy’s comments / SCMP (paywall)
China’s pressure on ‘weakest link’ South Korea falls flat amid tensions with U.S. / FT (paywall)

Saudi Arabia
Saudi Arabia and China flaunt growing ties at investment forum / NYT (paywall)
“The kingdom hosted a lavish Arab-China business conference days after a visit from the American secretary of state, inviting companies blacklisted by the United States.”

Palestine
China hosts Palestinian leader after mediating Saudi-Iran deal / Bloomberg (paywall)
“China is hosting Palestinian Authority leader Mahmoud Abbas as it seeks to strengthen its diplomatic influence in the Middle East.”

SOCIETY AND CULTURE:

LGBTQ
Opinion: China’s LGBT community doesn’t need Western ‘gay pride’ / SCMP (paywall)
“For LGBT people in China, sexuality is part, not all, of who they are as their familial role and national identity take precedence. What they want most is love and acceptance, not pride parades.”

Literature
He wrote the book on rural China. but first, he wrote a novel. / Sixth Tone
“Shortly before publishing his groundbreaking 1939 study of rural China, sociologist Fèi Xiàotōng 费孝通 wrote a novel about life in his hometown. What can it tell us about his later work?”

Feminism
My gender doesn’t define how well I do my job / World of Chinese
“Meet the women succeeding in male-dominated industries in China.”