Highlighted links for June 20, 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
Hyundai raises EV investment to $28 bln, to reduce China operations / Reuters
“Hyundai Motor will raise average annual investment in electrification by nearly two thirds to $28 billion in the next decade and further restructure its struggling China business as part of a broader strategy to boost electric vehicle (EV) sales.”
Stellantis, Foxconn form 50-50 JV on semiconductors for auto industry / Reuters
“Carmaker Stellantis and iPhone assembler Foxconn have created a 50-50 joint venture to design and sell semiconductors for the automotive industry from 2026.”

Investments
Foreigners biggest buyers of Asian bonds in two years / Reuters
“Asian bonds attracted their highest monthly foreign inflows in about two years in May, boosted by hopes of less aggressive monetary tightening measures from the U.S. Federal Reserve.”
Investors sour on Beijing’s bid to boost state-owned enterprises / FT (paywall)
“Beijing’s bid to persuade investors to value its giant state-owned enterprises according to their socialist credentials, rather than by conventional western capitalist measures, has flopped after a rally in their shares fizzled this month.”

AI
AI Is winning the AI race / Foreign Policy (paywall)
“One of the questions we get most frequently from officials in Washington is: ‘Who’s winning the U.S.-China AI race?’ The answer is simple and unsettling: Artificial intelligence is winning, and we’re nowhere near ready for what it will bring.”

U.S.-China flights
China willing to work with U.S. to increase passenger flights — ministry / Reuters
“China is willing to work with the United States to increase passenger flights between them in a ‘flexible and pragmatic manner,’ the foreign ministry said on Tuesday.”

China’s slow economic recovery
China’s pivot on stimulus spurred by fear that the slowdown could get a lot worse / WSJ (paywall)
“A few months ago, Chinese leaders were basking in signs that the world’s second-largest economy was rebounding sharply after three years of tough COVID-19 controls.”
China’s economy is on course for a “double dip” / The Economist (paywall)
“China prides itself on firm, “unswerving” leadership and stable economic growth. That should make its fortunes easy to predict. But in recent months, the world’s second-biggest economy has been full of surprises, wrong-footing seasoned China-watchers and savvy investors alike.”
China cuts borrowing rates again in bid to juice recovery / WSJ (paywall)
“Economists say that more drastic measures may be needed, with debt and uncertainty continuing to weigh on consumers’ willingness to spend.”

Alibaba
Here’s what people are saying about Alibaba’s management reshuffle / Reuters
“Alibaba Group said on Tuesday its CEO and chairman Daniel Zhang (张勇 Zhāng Yǒng) will step down from those roles to focus on its cloud division as the Chinese e-commerce giant moves ahead with a plan to split into six business units.”
Alibaba split: what are the six units of the Chinese eCommerce company? / Reuters
“Alibaba Group Holding said on Tuesday that Eddie Yongming Wu (吴泳铭 Wú Yǒngmíng), chairman of its Taobao and Tmall Group, will succeed Daniel Zhang as chief executive officer, in the company’s biggest executive reshuffle since its restructuring.”
Alibaba co-founder Joe Tsai to take over as chairman as Daniel Zhang steps aside to focus on cloud business / SCMP (paywall)
Alibaba’s Daniel Zhang to step down as group chairman and CEO / Nikkei Asia (paywall)
Jack Ma urges Alibaba’s top executives to ‘go back to Taobao’ to fend off rivals in tough e-commerce market / SCMP (paywall)
Jack Ma’s lieutenants return to oversee tough Alibaba reboot / Bloomberg (paywall)
“Alibaba Group Holding Ltd. is bringing back two of Jack Ma’s longest-serving lieutenants to try and turn around a company that’s struggled to regain its footing since Beijing’s regulatory assault against the internet sector in 2021. Yet investors remain uncertain what they can do to restore an icon of Chinese private enterprise to its former glory.”
In overhaul, Alibaba’s boss moves aside and two co-founders step up / NYT (paywall)

SCIENCE, HEALTH, AND ENVIRONMENT:

Desertification
Sands of time ticking on China’s fight to hold back the desert / Caixin (paywall)
“The spring of 2023 may be particularly memorable as the region was engulfed by the most in nearly a decade, sparking a reevaluation of how the nation fights to hold back the desert that covers a quarter of its landmass and is the source of the sand that fills the air.”

Geopolitics and environmental policy
The Pacific Is becoming a testing ground for green geopolitics / Foreign Policy (paywall)
“U.S. environmental measures have China as an unspoken target…The recent security agreements between Papua New Guinea and the United States are a good deal for the planet — but a tough pill for Beijing to swallow, and one that might come with potential blowback. The new agreements accelerate coastal security strategies that also help with climate change adaptation by protecting vulnerable fisheries.”

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
Ex-China central bank deputy head arrested for suspected bribery / Reuters
“A former deputy governor of China’s central bank, Fàn Yīfēi 范一飞, has been arrested for suspected bribery, China’s top prosecutor said on Tuesday.”
How China’s leader Xi Jinping is resetting his agenda with a greater focus on ‘bread and butter’ policies / SCMP (paywall)
“A number of Chinese President Xí Jìnpíng’s 习近平 pet projects have been given a new lease on life as he seeks to reset his policy agenda.”
Xi Jinping’s dream of a Chinese military-industrial complex / FT (paywall)
“When the Chinese Communist party leadership gathered in Beijing for its quinquennial congress last October, the media spotlight was firmly on President Xí Jìnpíng 习近平securing a precedent-shattering third term as China’s unchallenged leader.”
China’s university entrance exam promotes Xi Jinping’s cult of personality / FT (paywall)
“The Chinese language essay question in China’s notoriously grueling gaokao, which lasts two days and determines students’ university placements — and often their careers — has become increasingly nationalist in recent years. But this year, examiners turned directly to ‘Xi Jinping Thought,’ as the collected sayings of China’s president are known, asking students to respond to texts with strongly implied anti-U.S. themes.”

Xinjiang
Use the law to tackle terrorism in Xinjiang, China’s security chief says / SCMP (paywall)
“Security personnel should make use of China’s legal infrastructure to counter terrorism and extremism in the country’s far western region of Xinjiang.”

Hong Kong struggles to define its role
Hong Kong on a mission: John Lee underscores ‘value-added super-connector’ role, globetrotting efforts to win business, lure talent / SCMP (paywall)
“Hong Kong’s leader has underscored the city’s role as a ‘value-added super-connector’ now on a global mission to win business deals and lure talent, revealing it is well on its way to attracting nearly double its goal of bringing in 35,000 workers every year.”
Hong Kong retains crown as world’s most expensive city for expats, while Singapore jumps to second place: survey / Hong Kong
“Hong Kong is the most expensive city for expats, while Singapore comes in second place, a survey by a global consulting firm has found.”
Hong Kong’s role as bridge between China and world ‘clearer, more essential’ amid rising geopolitical tensions, experts say at Post forum / SCMP (paywall)
“Hong Kong’s position as a bridge between mainland China and the world had only become ‘clearer and more essential’ amid rising geopolitical tensions, financial and political experts on Tuesday said, as they noted the city had the support of the ‘one country, two systems’ governing model.”
Hong Kong must embrace Middle East capital, mainland China culture, to bolster role as financial center: industry leaders / SCMP (paywall)
“Amid geopolitical tension between China and the U.S., Hong Kong needs to look beyond U.S. markets and court the Middle East as a source of capital as it seeks to burnish its position as an international finance center, according to the chairperson of the Chamber of Hong Kong Listed Companies.”

Taiwan
Mainland China resumes imports of Taiwanese sugar apples after 2-year ban despite cross-strait tensions / SCMP (paywall)
“Mainland China resumed imports of sugar apples from Taiwan from Tuesday, ending a ban that had been in place since 2021 and pushing aside political frictions.”
China’s economic slowdown makes Taiwan crisis more likely: report / Nikkei Asia (paywall)
“An increasingly sluggish Chinese economy could increase the prospect of a military crisis in the Taiwan Strait as Chinese President Xí Jìnpíng 习近平 may further embrace nationalism in his unprecedented third term, a prominent U.S. think tank has warned.”
Why Taiwan has a lock on the world’s chip market / Foreign Policy (paywall)
“Chris Miller explains why it’s so difficult to make high-end semiconductors — and how a war over Taiwan could induce a global crisis.”

U.S.-China competition and tensions
China targets sea change in global diplomacy race with West / Nikkei Asia (paywall)
“For three years, COVID kept China’s global diplomacy goals on ice. Now, with the U.S. enmeshed in a domestic election campaign and the international community preoccupied with war in Ukraine, Beijing is back, ramping up a drive to promote its own alternative to the West’s ‘rules-based international order.’”
China is ready for a world of disorder / Foreign Affairs (paywall)
“As China’s power has grown, Western policymakers and analysts have tried to determine what kind of world China wants.”

Blinken visit
China and U.S. move to ratchet down tensions / Caixin (paywall)
“President Xí Jìnpíng 习近平 met with U.S. Secretary of State Antony Blinken Monday in Beijing in a sign of thawing in relations as the world’s two largest economies seek to reduce tensions and the risk of miscalculations.”
China, U.S. agree to ‘effectively’ manage differences as top diplomats meet in Beijing / Caixin (paywall)
U.S. and China hold top-level talks, but their rivalry remains unchecked / AP
“The United States and China may be back to talking at a high level, but their battle for global power and influence remains unchecked and mutual suspicion still runs deep.”
Blinken and Xi pledge to stabilize deteriorated US-China ties, but China rebuffs the main U.S. request / AP
“U.S. Secretary of State Antony Blinken met on Monday with Chinese President Xí Jìnpíng 习近平 and said they agreed to ‘stabilize’ badly deteriorated U.S.-China ties, but America’s top diplomat left Beijing with his biggest ask rebuffed: better communications between their militaries.”
Blinken’s China trip yields best possible result: more talks / Bloomberg (paywall)
Xi Jinping and Antony Blinken cap China trip with vow to steady ties to ward off conflict / SCMP (paywall)
China’s Xi asks U.S. envoy Blinken to do more to stabilize ties / Nikkei Asia (paywall)
“Chinese President Xí Jìnpíng 习近平 met visiting U.S. Secretary of State Antony Blinken on Monday as the world’s two biggest economies seek to patch up ties that have frayed over geopolitical, trade and technology tensions.”
In Blinken talks, China’s Wang Yi calls for Apec summit reset to U.S. Indo-Pacific strategy / SCMP (paywall)
Antony Blinken and Qin Gang call meeting in Beijing ‘constructive’ and agree to continue talking / SCMP (paywall)
“China’s top diplomat, Wáng Yì 王毅, has urged the U.S. to recalibrate its Indo-Pacific strategy before this year’s Apec summit if Washington wants to build up healthy interactions with Beijing in the strategically important region.”
Blinken visit reveals chasm in how U.S. and China perceive rivalry / NYT (paywall)
“Xí Jìnpíng 习近平 and nationalistic Chinese see recent U.S. actions as an effort to contain another superpower rather than compete with it — and they’re pushing back.”
Blinken to seek China’s help curbing deadly Fentanyl traffic in landmark visit / WSJ (paywall)
“Beijing has linked [the] fentanyl issue to other disputes, impeding progress on matters critical to [the] U.S.”
Blinken says China spy balloon incident ‘should be closed’ / Reuters
“U.S. Secretary of State Antony Blinken said the spy balloon incident with China ‘should be closed’ in an interview with MSNBC posted online on Tuesday.”

NATO
NATO’s largest-ever aerial wargame has Russia, China in mind / WSJ (paywall)
“NATO is conducting the largest air force exercise in its history in the skies above Europe in wargames that allied commanders say are producing valuable lessons for deterring potential Russian and Chinese aggression.”

Chinese troops in Cuba?
Beijing plans a new training facility in Cuba, raising prospect of Chinese troops on America’s doorstep / WSJ (paywall)
“China and Cuba are negotiating to establish a new joint military training facility on the island, sparking alarm in Washington that it could lead to the stationing of Chinese troops and other security and intelligence operations just 100 miles off Florida’s coast, according to current and former U.S. officials.”

Australia and New Zealand
4 people wounded by man wielding axe who attacked diners at Chinese restaurants in New Zealand / AP
A Chinese national with an ax “attacked random diners at three neighboring Chinese restaurants in New Zealand, wounding four people, police and witnesses said.”
NZ frigate confronted by Chinese navy in South China Seas, investigation reveals / Stuff
“A New Zealand frigate was confronted in a sensitive part of the South China Sea by Chinese navy warships demanding details of its passage.”
Chris Hipkins to meet Xi Jinping in China next week / Stuff
New Zealand’s “Prime Minister Chris Hipkins will make a trip to China, the first for a prime minister since the COVID-19 pandemic.”
Australia remains wary of Chinese investment in vital minerals sector: ‘we’re competing with China here’ / SCMP (paywall)
“Chinese investment in Australia’s minerals sector must be considered ‘strategically’ as the countries compete directly in lithium refining, said Resources Minister Madeleine King.”

Pakistan nuclear power deal
Pakistan and China sign $4.8 bln nuclear power plant deal / Reuters
“Pakistan and China signed a $4.8 billion deal on Tuesday to build a 1,200-megawatt nuclear power plant, Prime Minister Shehbaz Sharif said, hailing the investment by a country that Pakistan views as its most dependable ally.”

Indian rivalry
India and China are locked in a cycle of mutual spite / Foreign Policy (paywall)
“The world’s two most populous countries don’t have space for each other’s journalists—at least for now.”

Qatar gas deal
Qatar set to strike second big LNG supply deal with China / FT (paywall)
“Qatar is set to secure a second huge gas supply deal with a Chinese state-controlled company in less than a year, in a sign of the energy-hungry Asia power rushing to secure long-term agreements with one of the world’s top exporters of liquefied natural gas.”

Europe
New Chinese premier makes first foreign trip to Europe as part of Beijing’s outreach / AP
“Chinese Premier Lǐ Qiáng 李强 has started a visit to Germany and France that comes as Europe seeks to balance concerns over economic dependence on China and about its stance toward Ukraine and Taiwan with a desire to engage Beijing on issues such as climate change.”
China calls European Parliament’s Hong Kong resolutions ‘publicity stunt’ / Reuters
European Parliament in a landslide vote adopted a resolution on the city’s “alarmingly deteriorating” situation since the Beijing-imposed national security law came into force.
Europe aims to cut China risks, not China ties / WSJ (paywall)
“Europe says it wants to push back against China’s economic might. Its resolve faces an early test.”
EU looks to ban companies from making sensitive tech in China / Politico
“The EU on Tuesday revealed plans to prevent European companies from making sensitive technologies such as supercomputers, artificial intelligence and advanced microchips in countries like China.”

Germany
Germany, China hold high-level meeting amid tensions over trade, Ukraine / AP
“Trade, climate change and the war in Ukraine are on the agenda Tuesday as German Chancellor Olaf Scholz meets Chinese Premier Lǐ Qiáng 李强, who is on his first foreign trip since taking office.”
China’s premier tells German CEOs biggest risk is lack of cooperation / Reuters
Germany and China try to reset relations for a changed world / NYT (paywall)

Poland
Beijing’s ties with Moscow behind hardening Polish views on China / SCMP (paywall)
“Last summer, with Russia’s grueling war in Ukraine shifting the geopolitical sands in Europe, Beijing dispatched a veteran envoy to tour the bloc’s eastern front.”

SOCIETY AND CULTURE:

Lottery
Young Chinese have a new plan to escape tough times: win the lottery / Sixth Tone
“China’s millennials are seeking cheap thrills and get-rich-quick solutions amid a tough economy. That’s leading many to embrace an institution long considered hopelessly uncool: the country’s state-run lotteries.”

Sports
Pitch-invading teen hugs Messi, captures public imagination, now detained / Sixth Tone
“Soccer superstar Lionel Messi will leave China having come face-to-face with at least one passionate Chinese fan — a teenager surnamed Di, whose pitch invasion and embrace of his idol have made him a legend online while also landing him in legal trouble.”
China detains teenager who hugged soccer star Messi / WSJ (paywall)
Does Chinese soccer have a hooliganism problem? / Sixth Tone
“Chinese soccer fans are flocking back to stadiums following the resumption of live matches. But an uptick in fan violence is raising concerns about whether hooliganism might also be on the rise.”

Live streaming
On Douyin, Chinese companies sell coal at rock-bottom prices / Sixth Tone
“With coal prices hitting their lowest in over two years, coal companies are turning to live streaming platforms to find new customers.”
Kuaishou, Taobao tap Messi mania to give livestream E-commerce a leg up / Caixin (paywall)
“Where soccer superstar Lionel Messi goes, brands hungry to leverage his fame follow, and Chinese companies are no exception.”

Chinese man spreads fake news on Ukraine
Fake news on the front line / China Media Project
“The story of ‘Paul Kotzatie,’ the bogus Russian soldier from Henan, is a reminder that in China the right to speak, and the right to be heard, is ultimately in the hands of those in power.”

Local police abuses
Woman’s death in custody prompts investigation into police in central China / SCMP (paywall)
“A local government task force in the central Chinese province of Hunan has been formed to investigate the death of a woman at a police station who had turned herself in for questioning.”