Highlighted links for June 27, 2023

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

BUSINESS AND TECHNOLOGY:

China’s 5% economic growth?
China’s premier says economic growth is accelerating and the country can hit its 5 percent target this year / AP
Lǐ Qiáng 李强, “China’s No. 2 leader said Tuesday that economic growth accelerated in the latest quarter and expressed confidence it can hit the ruling Communist Party’s official target of 5% for the year.”

Local debt and revenues
Local Chinese governments add billions to multi trillion-dollar hidden-debt problem / Caixin (paywall)
“Local Chinese governments were found to be inflating fiscal revenue, adding new hidden debts and carrying out poor financial management, the national auditor said in a report.”
Chinese local governments used fake property deals to boost revenues / WSJ (paywall)
“Land sales have long been a crucial source of revenue for regional governments [but] China’s local government funding problems last year were even worse than most economists thought. At least $12 billion worse.”

Semiconductors
Indictment details plan to steal Samsung secrets for Foxconn China project / Reuters
“When former Samsung executive Choi Jinseog won a contract with Taiwan’s Foxconn in 2018, he tapped his former employer’s supplier network to steal secrets to help his new client set up a chip factory in China, a sealed indictment by South Korean prosecutors alleges.”

Youth unemployment
China Zeros in on unemployed youth with six-month job skills campaign / Caixin (paywall)
“The Ministry of Human Resources and Social Security will launch a six-month campaign to help certain jobless young people, including new college graduates, find work or improve their prospects in an overcrowded job market.”

Flying cars
GAC reveals its prototype flying car for the first time / TechNode
“Chinese automaker GAC Group on Monday showcased an electric, unmanned flying car prototype, a product it says can move both on the ground and through the air, in a futuristic plan to take its urban mobility to another dimension.”
China’s GAC unveils flying car that can travel on road / Nikkei Asia (paywall)

Automobiles
Volkswagen China chief asks China’s premier Li for clarity on data transfers / Reuters
“Volkswagen’s head of its business in China said on Tuesday that the carmaker needed clarity on cross-border data transfers in a meeting with the country’s Premier Li Qiang, asking how China would cooperate with Europe amid rising political tensions.”
China’s price war favors the cars Beijing is trying to phase out / Caixin (paywall)
“A dangerous cocktail in China of intensifying competition, weak consumer spending and sluggish car sales has led to vehicle price cuts that are only extending and deepening — and electric vehicles aren’t necessarily the ones benefiting.”
China’s cutthroat EV market is squeezing out smaller players / Bloomberg (paywall)
“The explosive industry in China — supercharged by government subsidies more than a decade ago — now spans about a hundred manufacturers churning out pure-electric and plug-in hybrid models. While that’s down from roughly 500 registered EV makers in 2019, the end now looks to be in sight for scores more.”

Tourism
China’s holiday spending trails pre-pandemic levels / Caixin (paywall)
“Domestic travel and spending during the three-day Dragon Boat Festival holiday were weaker than recovery seen during the May Labor Day break.”

Generative AI
Baidu claims its Ernie Bot now beats ChatGPT on key measures / Bloomberg (paywall)
“Baidu Inc.’s ChatGPT-style service has outperformed OpenAI’s seminal product on several measures, China’s search leader said on Tuesday.”
China’s Baidu says its new AI beat ChatGPT on some metrics / Reuters
Popular Chinese AI chatbots accused of unwanted sexual advances, misogyny / Rest of World
“Glow, known for its immersive role-play experience, lacks clear moderation rules.”

U.S.-China tech war
Sequoia made a fortune investing in the U.S. and China. Then it had to pick one. / WSJ (paywall)
“Scrutiny from Washington aggravated tensions within the venture-capital firm, fueling its decision to break up.”

Development and real estate
Central China real estate suspends payments on all offshore debt / Caixin (paywall)
“Zhengzhou-based developer defaults on $300 million of dollar notes that were due May 24 as it vows to devote cash to ensuring delivery of existing projects.”
Chinese state-owned company to invest $1.4b in Greater Bay Area / Nikkei Asia (paywall)
“Guangzhou City Construction Investment Group (GZCCI Group), a Chinese state-owned company with about 370 billion yuan ($51.1 billion) in assets under management (AUM), has officially set up a 10 billion yuan ($1.4 billion) fund to invest in the cultural industry in southern China.”
Frustration grows in China as banks limit early mortgage payments / Nikkei Asia (paywall)
“Complaints against China’s banks surged in the January-March period as they tried to preserve their income by restricting early mortgage payments.”
Chinese local governments used fake property deals to boost revenues / WSJ (paywall)
“Land sales have long been a crucial source of revenue for regional governments.”

Oil market
China’s top traders set oil markets spinning in Middle East play / Caixin (paywall)
“Two giants in China’s oil and refining sector took the biggest opposing positions in Middle East crude trading in years, transforming global cargo flows and puzzling oil traders the world over.”

Cryptocurrencies
Crypto firm Circle eyeing Hong Kong policies with focus on Asia / Caixin (paywall)
“U.S.-based Circle Internet Financial Ltd. is closely watching regulatory developments in Hong Kong after the territory’s new crypto rules went into effect, according to Jeremy Allaire, the company’s co-founder and chief executive officer.”
Hong Kong’s crypto push puts HSBC and StanChart in a bind / FT (paywall)
“Regulators keen for banks to take on exchanges as clients but that might expose lenders to money-laundering risks.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Polar exploration
China starts building third icebreaker, which scientists say could send researchers to polar seabeds by 2025 / SCMP (paywall)
“China began construction on its third icebreaker on Sunday, which scientists said could send researchers to deep polar seabeds for scientific exploration as early as 2025.”

COVID-19
China seeks to shape memory of COVID-19 pandemic / WSJ (paywall)
“Beijing is withholding data and censoring debate as it tries to promote a narrative of triumph on how it handled the virus.”
An acrimonious debate about COVID’s origins will rumble on / The Economist (paywall)
“An American intelligence report says it could have come from a market — or a lab.”

Extreme weather
Cattle, farmland short of water in northern China, Xinhua reports / Reuters
“About 3 million hectares of farmland in China are suffering from drought, state media reported on Sunday, after record high temperatures hit a large part of the country’s north since last week.”
Four dead, 900 evacuated after landslides triggered by flash floods in southwest China / AP
“Four people died and three others were missing after landslides hit a county in China’s southwestern Sichuan province on Tuesday, leading authorities to evacuate more than 900 people.”

University research
How did China’s Sun Yat-sen University beat Oxford, Cambridge and Yale on natural science research? / SCMP (paywall)
“According to the latest Nature Index, which measures research output, Sun Yat-sen University was ranked tenth in the world — above universities such as Oxford, Cambridge and Yale.”

Food security
China food security: with new law, can Beijing reverse loss of arable land, or will policies go to seed at grass-roots level? / SCMP (paywall)
“Chinese lawmakers are deliberating a food-security law to improve the nation’s ability to avert risks in a critical area that leadership has been attaching increasing importance to amid global uncertainties.”

POLITICS AND FOREIGN AFFAIRS:

Premier Li Qiang at ‘Summer Davos’
As it happened: China’s economy growing faster, premier tells ‘Summer Davos’ / SCMP (paywall)
“Premier Lǐ Qiáng 李强, who just returned from his first overseas trip to Germany and France, is expected to continue the campaign to lure foreign businesses and private investment, and to cement their confidence in China amid rising concerns that the recovery is losing momentum.”
China’s premier criticizes west’s de-risking drive at ‘Summer Davos’ / FT (paywall)
China’s economy is set to grow faster in the second quarter, Premier Li Qiang says / CNBC
China Premier warns economic barriers will lead to confrontation / Bloomberg (paywall)
Chi­na’s Li backs clos­er com­mu­ni­ca­tion, glob­al co­op­er­a­tion / Al Jazeera

Censorship
China censors financial blogger as economic recovery falters / FT (paywall)
“China is ramping up a crackdown on financial sector commentators, a move that erodes the space for independent analysis and data and challenges Beijing’s official narrative of the health of the world’s second-biggest economy.”
China’s banned online communities have found a new home on Reddit / Rest of World
“They are drawn to the platform’s community-moderated, discussion-based format, which allows for more fringe voices to thrive.”

Spying
Suspected Cuba spy outpost sparks alarm over China global base goals / Nikkei Asia (paywall)
“Suspicions that China is operating intelligence collection outposts in Cuba have renewed concerns over its efforts to establish a global network for power projection amid growing mistrust between Washington and Beijing.”
New images show Chinese spy balloons over Asia / BBC
“New evidence of China’s spy balloon programme — including flights over Japan and Taiwan — has been uncovered by BBC Panorama.”
Switzer­land says coun­try a hotbed for Russ­ian, Chi­nese spies / Al Jazeera
“While China is also believed to have dozens of spies at its diplomatic missions in Switzerland, their number is significantly less than Russia’s,” Switzerland’s main intelligence agency, the Federal Intelligence Service (FIS), said.

Evaluating Hong Kong’s new leader
Hong Kong leader John Lee has taken only 2½ days of leave since last July. So what has he achieved in his first year in office? / SCMP (paywall)
“If a single event marked the highlight of John Lee Ka-chiu’s (李家超 Lǐ Jiāchāo) first year as Hong Kong’s leader, it was the reopening of the city’s border with mainland China in January.”

Taiwan
Support for Taiwanese President Tsai Ing-wen at 4-year low as #MeToo scandals rock ruling party / SCMP (paywall)
“Public support for Taiwanese President Tsai Ing-wen (蔡英文 Cài Yīngwén) has dropped to its lowest level in four years as her party becomes caught up in a wave of #MeToo allegations.”
Taiwan to ‘shoot down and destroy’ mainland Chinese balloons if they pose a risk / SCMP (paywall)
“Taiwan will shoot down mainland Chinese balloons if they are seen to present a threat, the island’s military has said.”

Vietnam
China offers closer military cooperation with Vietnam / Reuters
“China is willing to work with Vietnam to strengthen high-level communication and cooperation between their militaries, Chinese Defence Minister Lǐ Shàngfú 李尚福 said on Tuesday as he met his Vietnamese counterpart.”
Chinese Premier Li Qiang meets Vietnamese counterpart to promote cooperation / SCMP (paywall)

New Zealand
New Zealand foreign minister confirms ‘very robust’ meeting with Beijing / Reuters
“New Zealand’s Foreign Minister Nanaia Mahuta said on Tuesday she had a ‘very robust’ discussion during an earlier meeting with her Chinese counterpart, as the leaders of the two countries prepare to meet.”

South China Sea
Calls grow in Philippines for UN to intervene in South China Sea dispute / SCMP (paywall)
“More of the Southeast Asian nation’s senators have thrown their weight behind a proposal to pursue UN intervention amid Beijing’s continued refusal to accept a 2016 arbitral ruling on the disputed waterway.”

U.S.-China competition and tensions
Yellen plans July China trip while U.S. preps investment curbs / SCMP (paywall)
“U.S. Treasury Secretary Janet Yellen plans to visit Beijing in early July for the first high-level economic talks with her new Chinese counterpart, people familiar with the scheduling said.”
Explainer: The China-U.S. military chill: do they talk at all? / Reuters
“Amid intensifying military deployments across East Asia, high-level defense dialogue between China and the United States remains frozen. U.S. Secretary of State Antony Blinken did not secure any progress on the issue during his visit to Beijing last week.”
Anti-China rhetoric distracts Washington—and boosts Beijing / Foreign Policy (paywall)
“Last week, U.S. Secretary of State Antony Blinken returned from China as the senior-most official to visit the country in five years. In response, Republicans—whose foreign-policy platform has been defined almost entirely by anti-China rhetoric and policy—have been predictably unconstructive, hypocritical, and even dangerous, asserting that any engagement with China undermines U.S. national security.”
If Biden wanted to ease U.S.-China tensions, would Americans let him? / NYT (paywall)
“In polls, Americans’ views of China are starting to resemble their views of the Soviet Union decades ago. That could make it harder to mend ties.”
Opinion: My plan to confront the Chinese threat / WSJ (paywall)
U.S. presidential candidate Nikki Haley says she will “root out Chinese influence in the U.S.,” end high-tech exports to China to “protect the U.S. economy,” and “transform the U.S. military.”

Russia
Russia set to overtake Saudi Arabia in battle for China’s oil market / WSJ (paywall)
“As Riyadh’s push to boost prices falls flat, Moscow keeps gaining ground with [the] world’s biggest buyer.”
Recent Russia turmoil challenging Vladimir Putin ‘unsettling’ for China leaders: senior U.S. official / SCMP (paywall)
“Beijing has been rattled by the power play in Russia over the weekend, a senior U.S. official said on Monday. His observation without elaboration came during a panel discussion about AUKUS, the trilateral security pact announced by Australia, the U.S. and Britain in 2021 aimed at checking China’s growing footprint in the Indo-Pacific.”
Xi weighs up support for Putin after rebellion / Guardian
China fears Russia chaos after Wagner uprising / Nikkei Asia (paywall)
China’s Li Qiang underscores ‘stability’ after Russia rebellion / Nikkei Asia (paywall)
What is Putin worth to China? / The Atlantic
“In standing by Russia’s embattled strongman, Chinese leader Xí Jìnpíng 习近平 signals just how high a priority he has made of undermining the power of the West.”

Israel
Netanyahu says he’s invited to China, emphasizes U.S. as Israel’s key ally / Reuters
“Israeli Prime Minister Benjamin Netanyahu said he had been invited to China in an announcement on Tuesday in which he also emphasized that the United States remained Israel’s key ally.”

Hungary
Hungarian minister warns China de-risking is ‘brutal suicide’ / Bloomberg (paywall)
“A European ‘de-risking’ of supply chains from China would be devastating for the bloc’s economy, a senior Hungarian minister warned, in comments highlighting the divisive nature of the policy.”

SOCIETY AND CULTURE:

Animal rights
Can China’s cat cafés build awareness for animal rights? / Sixth Tone
“There are signs that cafés are opening patrons’ eyes to the plight of cats and building sympathy for animal rights movements.”

Education
How China’s education system trapped a generation / Foreign Policy (paywall)
“Young people have been trained into competition and hopelessness.”

Art
What Chinese calligraphy taught me about myself / NYT (paywall)
Jerrine Tan writes: “Write your name — over and over. You’ll be surprised what you learn.”
Asia Society names new leader / NYT (paywall)
“Yasufumi Nakamori, a curator at the Tate, will be director of the New York museum showcasing Asian art, artifacts and culture.”