Highlighted links for July 5, 2023

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

BUSINESS AND TECHNOLOGY:

Value of the yuan
What’s behind the firmer-than-expected yuan fixings? / Reuters
“The yuan has lost nearly 5% of its value against the dollar this year and in recent weeks China’s central bank has begun pushing back on the slide, fixing the currency’s daily trading band at stronger-than-expected levels.”

Airplane industry
Airbus presses Chinese airlines to order planes as widebody slots fill up / Caixin (paywall)
“Airbus SE is urging Chinese airlines to place orders for its biggest planes because huge purchases by other carriers and supply-chain disruptions are extending wait times in the post-COVID travel boom.”

Generative AI
Opinion: China Inc. shows how generative AI can be serious business / Nikkei Asia (paywall)
Benjamin Speyer writes: “As global competition in AI inevitably intensifies, Western companies should be taking lessons from China. While it is undeniable that the U.S. still dominates globally in AI, how long it can retain leadership with China snapping at its heels is debatable, given China’s high technology adoption rates, mass digitization, government support that amounts to over $150 billion for AI research and development, the world’s largest AI model, and over 4.5 million science, technology, engineering and math graduates a year.”

U.S.-China tech war
China’s chipmaking export curbs ‘just a start’, Beijing adviser warns before Yellen visit / Reuters
“China’s export controls on metals used in semiconductors are ‘just a start,’ an influential Chinese trade policy adviser said on Wednesday, as Beijing ramps up a tech fight with Washington days before a visit from U.S. Treasury Secretary Janet Yellen.”
What people are saying about China’s chipmaking export controls / Reuters
“China will control exports of some metals used in the semiconductor industry, ramping up a technology war with the United States and potentially causing more disruption to global supply chains.”
China’s curb on metal exports reverberates across chip sector / FT (paywall)
“Trade officials were assessing the fallout from the latest escalation in the U.S.-China technology battle after Beijing said it would impose curbs on exports of metals used in chipmaking.”
China’s chip material export curbs: 4 things to know / Nikkei Asia (paywall)
“China on Monday announced new regulations to restrict exports of several key materials that are vital for electric vehicles, renewable energy, semiconductors and military tech.”

China’s central bank
China gets a new central bank chief as economy struggles for lift-off / FT (paywall)
“Pān Gōngshèng 潘功勝, the new head of the People’s Bank of China, is set to take the helm at an uncertain moment for the world’s second-largest economy — and for the central bank itself.”

Rare earths
The U.S.-China rare earths battle / Nikkei Asia (paywall)
“ In the high desert of Southern California, a vast open pit has become a battleground in the global struggle for industrial supremacy.”

Chinese equity
What equity markets got wrong about China / FT (paywall)
“Chinese stocks have fallen more than 20 percent from their peak in late January — pushing the world’s second-largest economy into a bear market at a time when global and regional peers have outstripped downbeat predictions.”

BYD
China automaker BYD to invest $620 million in Brazil industrial complex / Reuters
“Chinese automaker BYD on Tuesday said it will invest 3 billion reais ($620.17 million) in a new industrial complex in northeastern Brazil, as it aims to boost local production to offer more competitive prices.”
BYD picks Brazil for its first electric-vehicle hub outside Asia / Caixin (paywall)

Shein
Shein in talks with banks and exchanges about U.S. IPO-sources / Reuters
“China-founded online retailer Shein is working with at least three investment banks about a potential U.S. initial public offering, and has been in talks with the New York Stock Exchange and Nasdaq, people familiar with the matter said.”

Meta
Beijing state media blasts Mark Zuckerberg for past criticisms of China, casting doubt over Meta’s plan to sell VR gear in the country / SCMP (paywall)
“An influential social media account run by the official Beijing Daily on Wednesday published an opinion piece blasting Mark Zuckerberg for being critical of China, casting a shadow over Meta Platforms’ plans to sell its virtual reality (VR) gear to Chinese consumers.”

Alibaba
Alibaba exploring options for video platforms Youku, Tudou / Reuters
“Alibaba Group Holding is exploring options for its video streaming platforms Youku and Tudou, Bloomberg News reported on Tuesday, citing people familiar with the matter.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Research ethics
How China is sharpening ethics rules for scientific research / Caixin (paywall)
“The country’s top state and party decision-making bodies jointly announced establishing a National Science and Technology Ethics Commission, which has since set up three subcommittees covering life sciences, medicine and artificial intelligence (AI) sectors.”

Mental health
Suicide rate jumps among China’s 5- to 14-year-olds / Caixin (paywall)
“The suicide rate among 5- to 14-year-olds in China quadrupled between 2010 and 2021, according to a new study that calls on policymakers to tailor prevention strategies for the age group.”

Food security and fishing
Can China’s deep-sea fishing feed the people, or will it just bring back expensive fish? / SCMP (paywall)
“Looking to reduce its reliance on foreign suppliers for critical foodstuffs, China is growing more bold and innovative.”

Vaccines
U.S. vaccine maker Moderna set to sign U.S.$1 billion Shanghai deal in major inroad into China’s healthcare market / SCMP (paywall)
“U.S. vaccine maker Moderna is expected to sign an agreement with the Shanghai government as early as Wednesday to invest about U.S.$1 billion in the commercial hub of China as it promotes mRNA (messenger ribonucleic acid)-based products in the world’s second-largest economy.”

Extreme weather
How is extreme weather testing China’s climate resilience? / Reuters
“Dramatic swings between extreme heat and intense rainfall are testing China’s ability to cope with increasingly wild weather, as high temperatures challenge power grids and water security while floods ruin crops and threaten urban populations.”
Rain kills 15 in southwest China as Xi urges better defenses / Reuters
Fatal floods hit Chinese city of Chongqing as President Xi Jinping warns all country’s main rivers are at risk / SCMP (paywall)
Railway bridge partly collapses in China’s Chongqing as rain drenches region / Reuters
China’s record hot spell piles pressure on power supply / Caixin (paywall)
A drone and a crane save the day as China reels from extreme weather / NYT (paywall)

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
China dismisses criticism of top diplomat’s comments appearing to push for race-based alliance / AP
“China on Wednesday dismissed criticism of racially tinged comments by its top diplomat, who said Westerners are incapable of distinguishing among Chinese, Koreans and Japanese.”
Ding Xuedong named Deputy Chairman of $360 billion social security fund manager / Caixin (paywall)

Censorship
China suspends 2 online media outlets as censors tighten grip / SCMP (paywall)
“China’s censors have blocked two online media outlets this week – one that exposed COVID-related scandals during the pandemic, the other focused on trends in the news industry.”

Hong Kong repressing of dissent
‘Dozens of Hong Kong residents’ on police national security ‘wanted’ list, including for crowdfunding drives / SCMP (paywall)
“Dozens of Hongkongers have been placed on a police wanted list for alleged violations of the national security law, including people who were involved in crowdfunding drives, the Post has learned.”
Hong Kong police arrest 4 ex-members of defunct opposition group Demosisto for allegedly violating national security law / SCMP (paywall)
“Hong Kong national security police on Wednesday arrested four former members of the now-defunct opposition group Demosisto on suspicion of conspiracy to collude with foreign forces and commit acts with seditious intent, the Post learned.”
Hong Kong police arrest 16 women in crackdown on sex ring importing workers from Mongolia, mainland China to operate at Tsim Sha Tsui hotel / SCMP (paywall)
“Hong Kong police have arrested 16 women in a crackdown on a prostitution ring that brought sex workers from Mongolia and mainland China into the city to provide services at a hotel in Tsim Sha Tsui.”
Hong Kong court convicts first person tried under national anthem law for adding protest song to Olympic athlete clip / SCMP (paywall)
“The first person to stand trial under Hong Kong’s national anthem law has been convicted for using a soundtrack of protest music in a video that showed a local athlete celebrating his victory at the Tokyo Olympics.”
U.S. and UK condemn Hong Kong bounties for exiled political dissidents / FT (paywall)
“China has accused the UK and U.S. of ‘harboring criminals’ after both governments condemned Hong Kong authorities for issuing bounties totalling $1mn this week for eight exiled political activists.”

Taiwan
China says it resolutely opposes U.S. military sales to Taiwan / Reuters
“China resolutely opposes U.S. arms sales to Taiwan and has lodged stern representations to Washington, China’s defense ministry said on Wednesday.”
China accuses U.S. of turning Taiwan into a powder keg with its latest sales to self-governing island / AP
“China’s Defense Ministry accused the United States of turning Taiwan into a powder keg Wednesday with its latest sales of military equipment to the self-governing island democracy worth a total of $440.2 million.”
Taiwan’s deal to buy U.S. Volcano landmine systems sparks controversy over safety risk and international drive for ban / SCMP (paywall)
Taiwan presidential front-runner says he can keep peace with China / Reuters
“Leading Taiwan presidential candidate William Lai (賴清德 Loā Chheng-tek) wrote in the Wall Street Journal on Wednesday that he could keep the peace with China if elected, reiterating his willingness for talks without preconditions and a pledge to boost defenses.”
Taiwan opposition presidential candidate vows to shorten military service / Reuters
“Taiwan’s main opposition presidential candidate has promised to reverse an extension of compulsory military service due to take effect in January, saying he will ease tensions with China making the longer service unnecessary.”
Taiwan’s impossible choice: Be Ukraine or Hong Kong / WSJ (paywall)
“People in Taiwan have been following every twist of the war in Ukraine. But, while their sympathy for the Ukrainian cause is near-universal, the conclusions for the island’s own future widely diverge.”

U.S.-China competition and tensions
Yellen’s China visit aims at ‘new normal’ with Beijing / Reuters
“Janet Yellen’s first trip to China as U.S. Treasury Secretary will focus on recalibrating ties between the world’s two largest economies as military communications remain frozen and Beijing’s new restrictions on exports of some metals spark fresh tensions.”
Yellen, China’s ambassador held ‘frank and productive’ discussion / Reuters
“U.S. Secretary of Treasury Janet Yellen and Xiè Fēng 谢锋, China’s ambassador to the United States, met on Monday ahead of Yellen’s scheduled visit to Beijing this week, according to a statement from the U.S. Department of Treasury.”
Yellen’s job in Beijing: Explain Biden’s shifting China policy / Nikkei Asia (paywall)
Treasury Secretary Janet Yellen is making a long-awaited trip to China this week / AP
U.S. under pressure from businesses, EU to avoid ‘unnecessary conflict’ with China, but ‘much could still go wrong’ / SCMP (paywall)
“Washington is under pressure from American businesses to adjust its approach to China as the U.S. seeks to resume economic engagement with Beijing, although uncertainties still remain and may even worsen ahead of a possible leaders’ summit later this year, according to sources and analysts.”
China, U.S. should prioritize setting up guiding principles for peaceful bilateral relationship, former Chinese ambassador says / Caixin (paywall)
“China and the U.S. should prioritize making progression on the guiding principles of their relations to help both sides move forward on the right track, former Chinese Ambassador to the U.S. Cuī Tiānkǎi 崔天凯 said at a security forum Monday.”
Yellen’s China visit aims to ease tensions amid deep divisions / NYT (paywall)

France
Chinese military holds strategy talks with UK, France in first since Ukraine war to boost ‘understanding and trust’ / SCMP (paywall)
“A Chinese military delegation’s recent visit to Britain and France for ‘strategy consultation’ shows Beijing is making an effort to keep communication lines open with Europe in contrast to its lack of interest in talking with Washington, Chinese analysts said.”

China, Russia, and India
Putin, Xi and Modi meet on camera, but with no signs of greater unity / NYT (paywall)
“At a virtual summit meeting of the Shanghai Cooperation Organization, the leaders of Russia, China and India each focused on their own driving issues.”

Iran
Iran becomes full member of Shanghai Cooperation Organization / Caixin (paywall)
“Iran has officially joined the Shanghai Cooperation Organization, becoming the group’s ninth permanent member, as the regional economic and security bloc continues promoting the assent of new members.”

South Korea
China touts South Korean diplomatic exchanges amid anxieties over growing regional U.S. engagement / SCMP (paywall)
“China and South Korea agreed to step up political and diplomatic communication to improve fraught bilateral relations strained by disputes over Taiwan and Seoul’s warming ties with Washington and Tokyo.”

Philippines
Philippines accuses China of more ‘harassment’ near disputed reef / Reuters
“The Philippines on Wednesday accused China’s coast guard of harassment, obstruction and ‘dangerous maneuvers’ against its vessels, after another incident near a strategic feature of the South China Sea that has become a flashpoint between them.”

Russia
Xi Jinping warned Vladimir Putin against nuclear attack in Ukraine / FT (paywall)
“Xí Jìnpíng 习近平 personally warned Vladimir Putin against using nuclear weapons in Ukraine, indicating Beijing harbors concerns about Russia’s war even as it offers tacit backing to Moscow, according to western and Chinese officials.”

Germany
German industry urges reduced dependency after China export controls / Reuters
“German industry on Tuesday warned that Europe must become more self-reliant in the hunt for raw materials needed for cleaner, more digital economies, after China caused alarm by announcing restrictions on some metals used for semiconductors.”

Honduras
China, Honduras launch negotiations over free trade agreement / Reuters
“China and Honduras started talks over a free trade pact on Monday, the Central American country’s government announced in a post on social media, in the latest advance between the two nations and their recent diplomatic and economic opening.”

European Union
EU climate chief urges ‘decisive’ joint action with China on climate crisis / Reuters
“The European Union’s climate chief Frans Timmermans on Tuesday called for faster and more decisive joint action with China to tackle the ‘accelerating’ climate crisis, as China gears up to ensure power supplies amid extreme heat this summer.”
China cancels planned trip by Europe’s top diplomat Borrell / Reuters
“China has canceled a trip by European Union foreign policy chief Josep Borrell scheduled for next week, an EU spokesperson said on Tuesday.”
EU climate chief is concerned over the expansion of the coal industry in China / AP
“The European Union’s climate chief on Monday expressed concern over the expansion of China’s coal industry, with the building of new coal-fired plants.”

SOCIETY AND CULTURE:

Sports
Asian champions China staying grounded ahead of World Cup / Reuters
“China were riding high after a dramatic Asian Cup final triumph last year but a string of mediocre recent results and being drawn in a tough group has tempered expectations ahead of the Women’s World Cup.”

Social media
Amid Twitter chaos, Japanese illustrators flock to Weibo – and welcomed with open arms / Sixth Tone
“With Twitter in crisis, more than a dozen popular Japanese illustrators have opened Weibo accounts in recent days. In just a few days, many of them have already seen their number of followers exceed their Twitter following.”
To boost revenue, Bilibili shifts focus from views to watch time / Sixth Tone
“The platform’s new viewership display is aimed at boosting commercialization and enhancing revenue for long-video content creators.”
Tencent faces backlash over WeChat Pay fees at colleges / Nikkei Asia (paywall)
“The barrage of criticism taken by Tencent Holdings for its plan to charge fees on WeChat Pay transactions at Chinese universities illustrates the difficulty of raising more revenue from what has become a massive service used by 1.3 billion people.”

Fashion
How a Hani designer is bringing ethnic fusion to Chinese fashion / Sixth Tone
“Long marginalized and objectified by the fashion industry, a new generation of minority designers is experimenting with modern materials and techniques. But mainstream acceptance remains elusive.”

Movies
China mounts cultural offensive to win ‘war of narratives’ against U.S.. Will other countries be swayed? / SCMP (paywall)
“Analysts said that while Beijing could succeed at boosting cultural pride within China, it might struggle to convince the rest of the world of its alternative to the Western-dominated global order.”