Highlighted links for June 29, 2023

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

BUSINESS AND TECHNOLOGY:

New drone policy
China to launch drone owner registration, no-fly zones and filming limits under new rules / SCMP (paywall)
“China’s drone owners will have to register with the government from next year under new rules aimed at improving public safety and national security.”

Alibaba and global logistics
Alibaba’s Cainiao to launch five-day global delivery service / Caixin (paywall)
“Alibaba Group Holding Ltd.’s logistics arm Cainiao Network Technology Co. Ltd. said it will offer a five-day global delivery service that’s 30% faster on average compared to the industry standard by the end of the year.”

Ecommerce
Established Chinese apparel brands struggle to stay afloat, including China’s Zara / Sixth Tone
“Established apparel brands have struggled to find a foothold in a fast-changing industry dominated by e-commerce.”

Yuan weakness
Policy measures China’s central bank could use to stem yuan weakness / Reuters
“China has ramped up its effort to slow the depreciation of the yuan against the dollar this week and market participants widely believe that the People’s Bank of China (PBOC) may follow up with more policy measures if the weakness persists.”
China regulators step up yuan surveys as currency slump worsens / Bloomberg (paywall)
“China’s regulators are stepping up scrutiny of currency trading and cross-border capital flows, according to people familiar with the matter, as the yuan slides to the weakest level in seven months.”

Economy
Xi’s plan for China’s economy is doomed to fail / Foreign Affairs
“Sensible though it is, consumption-led growth in Xi’s China is doomed to fail. As Xi has done so often in the past, he will back away from the policy once the inevitable backlash from powerful constituencies, including state-owned enterprises, local governments, and the national security bureaucracy, takes hold.”

China’s modernization
China today has fewer ads, cleaner toilets, economic hurdles / Nikkei Asia (paywall)
“Beijing is now cleaner and more beautiful than ever. But it is also less vigorous and interesting than before. China’s unique character, always multicolored and multi faced, seems to have dimmed.”

Electric vehicles
The Chinese carmakers planning to shake up the European market / FT (paywall)
“BYD, Nio, Chery and others want to use their expertise in electric vehicles to take advantage of the continent’s coming ban on the sale of new petrol and diesel cars.”

Steel
China steel exports seen surging to seven-year high as home demand wilts / Reuters
“China is set to export the most steel this year since 2016, say analysts, as the weakening yuan and competitive prices help the world’s biggest producer offload surplus metal due to weak demand at home.”

Increasing flights to China
U.S., China plan to increase commercial flights between the countries / Reuters
“The United States and China agreed to consider expanding commercial flights between the two countries to improve people-to-people contact, the top U.S. diplomat for East Asia, Daniel Kritenbrink, said on Wednesday.”

Climate finance
Climate finance works best when everyone pulls together: WEF panel / Caixin (paywall)
“In China, the government, the corporate sector, and the private investment community have come together to mobilize capital to fund the energy transition, Fred Hu, founder and chairman of Beijing-based private equity firm Primavera Capital Group, told a session on climate finance which was held in collaboration with Caixin.”

Global debt
Global debt crisis requires China, U.S. put aside their differences, economist says / Caixin (paywall)

“China and the U.S. should put aside their differences and serve as “global financial anchors” to help deal with a looming global debt crisis, economist Jin Keyu said Wednesday at a World Economic Forum (WEF) event in Tianjin.”

U.S.-China tech war
Amid intensifying tech war, one U.S. chip design firm sees opportunity in China / SCMP (paywall)
“U.S. semiconductor intellectual property (IP) provider SiFive is promoting its processor cores to chip designers in Beijing, Shanghai and Shenzhen this week, tapping into China’s enthusiasm for the open-source RISC-V architecture.”
Proposed Biden curbs could starve Chinese tech of early funding, expertise / Caixin (paywall)
“The startup world is bracing for new U.S. government measures expected to expand the crackdown on American investment in Chinese tech to venture funding, as local entrepreneurs look to institutions at home and in the Middle East to get their companies off the ground.”

U.S. business leaders’ visits to China
Bill Gates, Elon Musk and more flock to China despite U.S. rift / Nikkei Asia (paywall)
“Washington and Beijing may have finally started making strides to repair their strained ties. But prominent Western business leaders have been doubling down on opportunities in China for some time, with an eye on its supersized market and manufacturing base.”

Development and real estate
China’s property market enters troubling new phase / WSJ (paywall)
“China’s long-running battle to stabilize its shaky real-estate market appears to be entering a troubling new phase, with data showing waning demand as a wave of home listings hits the market.”
Chinese are becoming more pessimistic about incomes and housing / Bloomberg (paywall)
“More Chinese are seeing their incomes dropping now and expect housing prices to fall in the coming three months, a worrying sign for the struggling economy as it will likely undermine housing demand and hurt construction activity.”
How to escape China’s property crisis / The Economist

Oil
Oil and gas exports are complicating the US-China relationship / Quartz
“This week, the Texas-headquartered liquefied natural gas (LNG) producer Cheniere Energy inked a 20-year deal to supply China’s ENN Natural Gas with the chilled fuel.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Renewable energy
China’s renewable ‘mega’ bases face hurdles even as sector charges ahead / Reuters
“China, already the global leader in renewable energy generation capacity, is racing ahead in building new wind and solar farms, but progress is slower on its showcase wind and solar ‘mega’ bases, a think tank said on Thursday.”
China on track to blow past Xi’s clean power goal early / Caixin (paywall)
“China is on track to almost double its wind and solar capacity by 2025 and blow past the country’s clean power target five years early, according to Global Energy Monitor.”

Artificial light
Night skies illuminate Southeast Asian economic shift towards China / SCMP (paywall)
“The gravitational pull of the massive Chinese economy is on vivid display under the night skies, with artificial light spots getting brighter and closer to China, according to a new study.”

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
Former Guangdong police chief expelled from Party for bribery / Caixin (paywall)
“Lǐ Chūnshēng 李春生, former police chief and ex-vice governor of South China’s Guangdong province, has been removed from public office and expelled from the Communist Party for serious violations of duty and alleged bribery, the country’s top graft buster said.”

China’s soft soft power
China can’t catch a break in Asian public opinion / Foreign Policy (paywall)
“China has a soft-power problem—especially among its neighbors in Asia. New data collected by my organization, the Eurasia Group Foundation, demonstrates that many people in Singapore, the Philippines, and South Korea have unfavorable views of China’s soft power.”

Belt and Road
How the U.S. and Europe can beat China’s Belt and Road / FT (paywall)
“Washington and Brussels need to emphasize open and fair dealing in their developing-world rivalry with Beijing.”

Why the PLA won’t have a Wagner problem
China’s military set-up is designed to foil any would-be Prigozhin / FT (paywall)
“The People’s Liberation Army is an explicitly political force — and the ultimate guarantor of the party’s hold on power.”

China’s new foreign relations and anti-espionage laws
China frames new Foreign Relations Law as essential to national sovereignty / SCMP (paywall)
“China’s new Foreign Relations Law will act as a ‘deterrent’ to sanctions and is needed urgently to safeguard national sovereignty and security, according to Chinese President Xí Jìnpíng’s 习近平 most senior diplomacy adviser.”
China’s new law extends Xi’s combative foreign policy stance / Bloomberg (paywall)
China’s anti-espionage law set to ‘politicize’ business / Nikkei Asia (paywall)
“Foreign companies are in a bind as China’s new anti-espionage law comes into effect on Saturday.”
China passes foreign relations law to strengthen Xi Jinping’s response to sanctions / FT (paywall)
“China has passed a new foreign relations law that deepens President Xi Jinping’s control over the country’s external relations and strengthens the government’s legal basis for ‘countermeasures’ against western threats to national and economic security.”

Taiwan politics
Top Taiwan government spokeswoman quits after report of affair / Bloomberg (paywall)
““A high-profile government spokeswoman in Taiwan has resigned after a media outlet reported that she had an affair with a government-appointed bodyguard…Kolas Yotaka tendered her resignation on Wednesday to avoid any negative impact on its work…Kolas, a member of Taiwan’s Amis minority group, is known for becoming the first indigenous person to serve as spokesperson for the office of Taiwan’s leader or the Cabinet.”

U.S.-China competition and tensions
Yellen hopes to travel to China to ‘reestablish contact’ / Reuters
“U.S. Treasury Secretary Janet Yellen said she hopes to travel to China to reestablish contact with Beijing, acknowledging there were disagreements between the two countries, MSNBC on Wednesday reported her saying during an interview.”
Republican lawmakers request postal service data on retailers’ shipments from China / Reuters
“Republican leaders of two House committees are requesting United States Postal Service data on retailers’ goods shipped from China under an exemption in U.S. trade law that excludes some packages worth $800 or less from tariffs.”
U.S. deputy secretary of state, Chinese ambassador hold ‘substantive’ call after Antony Blinken’s trip / SCMP (paywall)
“U.S. Deputy Secretary of State Wendy Sherman spoke with China’s newly appointed ambassador to the United States on Tuesday to follow up on issues discussed during US Secretary of State Antony Blinken’s visit to Beijing last week, the State Department said.”
China’s public can be a moderating influence on U.S. relations / Nikkei Asia (paywall)
“The aggressive “wolf warrior” stance taken by many of China’s diplomats and Foreign Ministry spokespersons in recent years is often said to reflect a hardening of public attitudes toward the U.S. and its allies as reflected in belligerent social media posts. China’s reality, however, is more nuanced.”
Chinese balloon used American tech to spy on Americans / WSJ (paywall)
“The Chinese spy balloon that floated over the U.S. early this year was loaded with American-made equipment that helped it collect photos, videos and other information, U.S. officials said, citing preliminary findings from a closely held investigation.”
Justice Department says new Florida law restricting Chinese land ownership is unconstitutional / Politico
“The legal action by the department is just the latest skirmish between the Biden administration and Ron DeSantis in recent years.”

Australia
Corruption inquiry in Australia uncovers China links to state lawmaker / Reuters
“The former premier of Australia’s most populous state engaged in corrupt conduct involving another lawmaker with whom she was in a secret romantic relationship, a years-long corruption inquiry that examined business dealings with China said on Thursday.”

India
India’s crackdown on Chinese phone makers is just the first step in its economic development strategy / SCMP (paywall)
“In recent years, the Indian government has intensified its crackdown on Chinese companies in the country, most prominently in the smartphone sector. The latest target is Xiaomi, once the top smartphone brand in India but now facing an uncertain fate with funds frozen amid an official probe.”

Sri Lanka
Sri Lanka will stay neutral in China-India rivalry / SCMP (paywall)
“Sri Lanka will not take sides between China and India, nor will it do anything to harm either country, the island’s top diplomat said, amid concerns that countries in the region could get caught in the crossfire of intensifying tensions between the Asian powers.”

Philippines
Philippines could become ‘graveyard’ if U.S.-China rivalry gets out of hand / SCMP (paywall)
“Philippine ex-president Rodrigo Duterte has warned the country could become a ‘graveyard’ if the US-China rivalry comes to a head, as Manila tightens defense ties with Washington, its long-time security ally.”

Russia
Barring war in Russia, Chinese exporters to keep seizing opportunity / SCMP (paywall)
“As Western countries have intensified sanctions against Russia for its invasion of Ukraine since February last year…Chinese manufacturers [are] looking to capitalize on what…industry insiders see as their ‘best chance’ to expand and secure a lucrative foothold in their northern neighbor by filling the void left by Western brands.”
China unlikely to be worried by ‘weaker Putin’ post Wagner revolt / Al Jazeera
“‘New era’ ties are expected to continue given China and Russia’s shared concerns, with Beijing enjoying an even stronger position.”

Kenya
Video: Kenyan traders say Chinese-owned business are illegally undercutting their prices / VOA
“More than 100 Kenyan traders are suing the government, saying that Chinese-owned businesses are illegally undercutting their prices. Meanwhile, many Kenyan consumers are welcoming the competitive prices.”

SOCIETY AND CULTURE:

Livestreaming
Brands focus on stories in refining China livestreaming to boost profits / Reuters
“When tech giant Apple joined China’s livestreaming frenzy, a major driving force of the e-commerce boom in the world’s second biggest economy, it launched without deep discounts or a celebrity host to pull millions of viewers.”

LGBTQ
Activist detained in Hong Kong begins final appeal for recognition of his overseas same-sex marriage / AP
“An activist detained in Hong Kong began his final appeal Wednesday seeking recognition for his same-sex marriage registered overseas, in a landmark case for the city’s LGBTQ+ community.”

Chinese payment platforms to support foreign bank cards
As travel resumes, WeChat, Alipay to support foreign bank cards / Sixth Tone
“To register on such apps and use mobile payments in China, foreign travelers previously had to set up a Chinese bank account or have a local phone number.”

Sports
China’s rural ‘Super League’ reignites soccer fans’ passion / Nikkei Asia (paywall)
“Despite the financial woes and disappointing performance of top-level soccer in China, the sport is thriving at the grassroots as thousands of spectators gathered in this rural southwestern county for a local competition can attest.”
China’s village sports craze / Caixin (paywall)

Child boot camps
In China, military boot camps for kids are wildly popular — and unsafe / Sixth Tone
“In China, there is a growing trend for parents to send their kids to “character-building” summer camps in the wilderness. But in this unregulated new industry, the danger is often very real.”