Highlighted links for July 10, 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
What’s behind China’s failed ‘truce’ in EV price war? / Reuters
“The group representing China’s auto manufacturers has retracted a pledge to avoid ‘abnormal pricing’ that it had brokered between 16 automakers, including Tesla, breaking off a truce in a brutal price war over electric vehicles.”
China’s auto group retracts pledge to avoid ‘abnormal pricing’ / Reuters
“The China Association of Auto Manufacturers, citing antitrust law, on Saturday retracted a pledge to avoid ‘abnormal pricing’ made two days earlier by 16 automakers, including Tesla.”

Private funds
New rules for China’s $3 trillion private fund industry have more teeth, experts say / Caixin (paywall)
“China is adding more teeth to regulations governing private funds, as the government aims to encourage healthy development of the 21 trillion yuan ($3 trillion) industry operating in a murkier part of the financial system than its publicly traded peers.”

China’s economic recovery
China needs process, time to heal economic scars left by coronavirus, ex-finance minister Lou Jiwei says / SCMP (paywall)
“Beijing should not bail out its indebted local governments, and instead an increase in its fiscal deficit is needed to speed up China’s economic recovery, according to former finance minister Lóu Jìwěi 楼继伟, who said a ‘process’ is needed to heal the ‘scars’ left by the coronavirus pandemic.”
China on brink of consumer deflation / FT (paywall)
“China’s economy teetered on the brink of deflation in June, adding to calls for Beijing to launch a stronger stimulus package to sustain the country’s sputtering post-Covid recovery.”
Zero inflation shows demand remains weak in China’s economy, analysts say / Caixin (paywall)
“China’s consumer prices were flat year-on-year in June as producer prices fell more sharply, indicating the economy was suffering from weak demand and rising deflationary pressure, analysts said.”
Deflation looms in China as rebound loses steam / WSJ (paywall)

AI
Chinese AI-powered robot developer CloudMinds raises $138m / Nikkei Asia (paywall)
“Chinese artificial intelligence-powered robot developer CloudMinds has raised over 1 billion yuan ($138.1 million) in a Series C round of financing, as the firm is said to be weighing an initial public offering in Hong Kong.”
Tech giants race to incorporate AI in China’s offices / Sixth Tone
“AI integration is fueling fierce competition among tech giants like Kingsoft Office, Baidu, and Alibaba, who are developing their own ChatGPT-like models.”

Foreign businesses in China
U.S. exporters snub de-risking to give China another shot – but they’re finding a new obstacle / SCMP (paywall)
“The trade war, Washington’s curbs on technology transfers, coronavirus lockdowns and calls for decoupling supply chains have all disrupted U.S.-China relations.”

U.S.-China tech war
One reason the U.S. can’t quit China? Chips. / NYT (paywall)
“Chipmakers are finding it increasingly hard to operate in China but say doing business in the country is still key to their survival.”
There’s no substitute for Chinese drones (and that’s a problem) / Foreign Policy (paywall)

Development and real estate
Hong Kong’s easing of mortgage rules boosts home visitors, but not deals / Reuters
“Hong Kong’s move to raise the maximum mortgages available to some homebuyers, its first relaxation in curbs on home purchases adopted in 2009, boosted shopping interest over the weekend but did little for transaction volumes, property agents said.”
China property developer Kaisa faces Hong Kong lawsuit seeking to wind it up / Reuters
“Chinese property developer Kaisa Group said on Monday a winding-up petition has been filed against it in a Hong Kong court in relation to 170 million yuan ($23.50 million) non-payments on onshore bonds.”

Youth unemployment
China’s youth left behind as jobs crisis mounts / FT (paywall)
“Crackdown on tech and slow post-COVID growth have left a generation of graduates with fewer options.”

Baidu
China’s state planner holds meeting with private firms, including Baidu / Reuters
“China’s state planner said on Monday it held a meeting with private firms including Baidu and LONGi Green Energy Technology.”

Local debt
Why China has a giant pile of debt / NYT (paywall)
“A major lender abroad, China is facing a debt bomb at home: trillions of dollars owed by local governments, their financial affiliates, and real estate developers.”

China’s tech crackdown
Alibaba and Tencent buoyed by hope of end to tech crackdown / Reuters
“Alibaba Group and Tencent shares rose in Hong Kong on Monday as China’s $984 million fine for Ant Group was viewed as signaling the end of a regulatory crackdown on the country’s technology sector.”

Alibaba
What’s next for Ant after its nearly $1 bln fine? / Reuters
“​​The announcement of a nearly $1 billion fine by Chinese regulators on Ant Group has drawn a line under the fintech giant’s woes and given hope to investors that a regulatory crackdown on China’s broader technology sector is over.”
What people are saying about Ant Group’s $984 mln fine and share buyback / Reuters
“China’s Ant Group has announced a surprise share buyback that values the fintech giant at $78.5 billion, well below the $315 billion touted in an abandoned IPO in 2020, in a move that may let some investors exit.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Renewable energy
Salt + light + tech = record-setting Chinese solar power station / SCMP (paywall)
“The world’s biggest combined solar power station and salt farm has been plugged into the grid in China, with a capacity to meet the electricity needs of 1½ million households, according to its operator.”

Natural disasters
Deadly landslide hits central China / Caixin (paywall)
“A landslide struck a highway construction site in Yichang, Hubei province on Saturday, trapping 14 people.”

Extreme weather
Chinese cities open air raid shelters for heat relief as extreme temperatures lead to deaths / AP
“Cities across China opened their air raid shelters to offer residents relief from the heat Friday as unusually high temperatures across parts of the country started claiming lives.”
Tokyo, Beijing battle dangerous early summer heat waves / Nikkei Asia (paywall)

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
China’s foreign relations law signals new red lines, but doesn’t say what crosses them / SCMP (paywall)
“With the declaration of sweeping legislation to govern external relations, China appears determined to ramp up a legal struggle to counter sanctions and what it views as other foreign provocations, while seeking to extend the reach of domestic law beyond its borders, according to observers.”
China central bankers lose status in party as Xi loyalist gains power / Nikkei Asia (paywall)
“The status of the leaders of the People’s Bank of China is declining within the Communist Party, with neither current Gov. Yì Gāng 易纲 nor Pān Gōngshèng 潘功勝, the newly appointed party chief at the central bank, included among the 376 high-ranking members or alternates of the party’s Central Committee.”
Former provincial finance chief falls under graft probe / Caixin (paywall)
Chén Jìxìng 陈继兴, “once the finance chief of China’s richest province of Guangdong, is being investigated by the country’s top graft buster amid an ongoing crackdown to root out corruption in the $60 trillion financial system.”

China’s Asian Infrastructure Investment Bank under fire for CCP influence
China-led infrastructure bank finds no evidence of Communist Party influence / WSJ (paywall)
“The Beijing-backed Asian Infrastructure Investment Bank found no evidence of undue influence by China’s Communist Party in its decision-making, according to an internal review released Friday.”
‘What’s the name of the plane? The People’s Republic of China’ / Foreign Policy (paywall)
“The first high-profile departure from China’s Asian Infrastructure Investment Bank says it is dominated by CCP operatives and Beijing’s foreign-policy objectives.”

Media
China issues notice to strengthen management of ‘self media’ / Reuters
“China’s cyberspace regulator on Monday mulled new rules to strengthen the management of ‘self media,’ which refers to accounts that publish news and information but are not government-run or state-approved.”

Hong Kong
Hong Kong talent drive: more than 100,000 applications received so far and over 60 percent approved / SCMP (paywall)
“Hong Kong has received more than 100,000 applications to various talent schemes so far this year and approved over 60 per cent of them, nearly double the number targeted, authorities have revealed.”

U.S.-China competition and tensions
Top U.S.-China exchanges since Biden took office / Reuters
“U.S. Treasury Secretary Janet Yellen said on Sunday she believes China and the U.S. have made some progress and can have a healthy relationship, following 10 hours of bilateral meetings with senior Chinese officials in Beijing.”
Biden and Trump both exaggerate pain from trade with China / Nikkei Asia (paywall)
A shared understanding of ‘competition’ and ‘cooperation’ will better serve China-U.S. relations / Caixin (paywall)
China and the U.S., still adversaries, are talking. That’s a start. / NYT (paywall)

Yellen’s visit to China
Yellen’s China trip yields long meetings, ‘cordial’ tone, but no consensus / Reuters
“U.S. Treasury Secretary Janet Yellen went to Beijing with no expectations that meetings with China’s new top economic officials would immediately ease tensions between the world’s two largest economies.”
China urges ‘practical’ U.S. action on sanctions after Yellen talks / Reuters
“China on Monday called on the U.S. to take ‘practical action’ in response to its ‘major concerns’ about sanctions on Chinese firms, after U.S. Treasury Secretary Janet Yellen wrapped up more than 10 hours of meetings with senior officials in Beijing.”
Yellen swaps stories of being ‘the only woman in the room’ / Reuters
“U.S. Treasury Secretary Janet Yellen, a trailblazer in the field of economics, met with six female economists in Beijing on Saturday, an effort to spotlight gender diversity following meetings with China’s largely male government leaders.”
Chinese women economists called ‘traitors’ online for meeting with Yellen / Reuters
Yellen urges U.S.-China cooperation on economy, climate / Reuters
“U.S. Treasury Secretary Janet Yellen on Saturday urged closer communication between China and the United States to improve economic decision-making, and challenged China to join global initiatives to help poorer nations address climate change.”
Yellen urges China to fight climate change / Reuters
U.S. Treasury chief Yellen appeals to China for cooperation on climate and other global challenges / AP
Yellen says Washington might ‘respond to unintended consequences’ for China due to tech export curbs / AP
After Yellen’s China trip saw these demands made and missteps avoided, Beijing calls to ‘beef up’ U.S. cooperation / SCMP (paywall)
U.S. controls on investment will not harm China, Yellen tells Beijing / FT (paywall)
In talks with Yellen, China demands removal of U.S. economic sanctions / Caixin (paywall)
Yellen says the U.S. and China will aim for more communication / NYT (paywall)
3 Takeaways From Janet Yellen’s Trip to Beijing / NYT (paywall)
Yellen trip aids fragile effort by U.S., China to keep talking / WSJ (paywall)
Janet Yellen ​hails progress in stabilizing rocky U.S.-China ties / WSJ (paywall)
Yellen presses China for better communication to avoid economic risks / WSJ (paywall)

Solomon Islands
China, Solomon Islands sign policing pact in upgrade of ties / Reuters
“China and the Solomon Islands on Monday signed a deal on police cooperation as part of upgrading their relations to a comprehensive strategic partnership, four years after the Pacific nation switched ties from Taiwan to China.”
China, Solomon Islands set up comprehensive strategic partnership / Nikkei Asia (paywall)

Russia
Russian federation council speaker to visit China, Xinhua reports / R​​euters
“Russian Federation Council Speaker Valentina Matviyenko will lead a delegation to China from Sunday through Wednesday, state-run Xinhua news agency said on Sunday.”

Saudi Arabia
China Looks to Saudi Arabia Amid Shifting Sands in U.S. Economic Ties / Caixin (paywall)
“As tensions between China and the U.S. show no signs of abating, ensnaring businesses from both countries in a seemingly endless spiral of restrictions and trade curbs, Beijing is looking elsewhere to find opportunities to bolster economic growth and expand its influence in key regions with geopolitical significance.”

East Asia
China’s ‘anxiety’ seen driving efforts to improve ties with South Korea, Japan / SCMP (paywall)
“China is expected to focus on economic cooperation to improve strained ties with South Korea and Japan, but it is unlikely to stop its two neighbors from tilting further towards the United States, observers say.”

South Korea
China, South Korea push for deep-sea mining as global talks begin / Nikkei Asia (paywall)
“China and South Korea are among the countries pushing for deep-sea mining as a United Nations body convenes a meeting in Jamaica on Monday to discuss setting guidelines for such activities, while critics warn of environmental risks.”

Vietnam
Blackpink, Barbie and Beijing’s South China Sea claims collide in Vietnam / SCMP (paywall)
“First it was a scribbled map in the Warner Bros’ Barbie film, now Blackpink are facing the ire of Vietnamese nationalists calling for a boycott of the K-pop supergroup’s coming tour dates in Hanoi, as pop culture increasingly takes collateral damage from geopolitics.”

Southeast Asia
China and Thailand launch air combat drills as Beijing shores up military ties in Southeast Asia / SCMP (paywall)
“An annual joint air combat exercise between China and Thailand started on Sunday to ‘strengthen military cooperation between the two countries and maintain regional peace and stability,’ state news agency Xinhua reported.”

SOCIETY AND CULTURE:

Kindergarten attack
China kindergarten attack kills six, sparks safety worries / Reuters
“A 25-year-old man was suspected of attacking a kindergarten in China’s Guangdong province on Monday, killing six people and injuring one, triggering an outpouring of concern about violence against children at school.”
6 dead in attack at kindergarten in China’s Guangdong province / SCMP (paywall)
Six killed in south China kindergarten attack / Caixin (paywall)
Six dead after stabbing at a preschool in China / NYT (paywall)
Six killed in knife attack at China kindergarten / WSJ (paywall)
6 killed in Guangdong kindergarten attack, including 3 children / Sixth Tone

Housing
For Hong Kong’s youth, government-backed hostels offer a smidgen of housing hope / Reuters
“The hostel programme, ramped up last year under pressure from Chinese President Xí Jìnpíng 习近平, is aimed at tackling youth frustration with housing — a factor Beijing believes contributed to the anti-government pro-democracy protests that rocked the city in 2019.”

Marriage
Why China’s young people are not getting married / NYT (paywall)
“Marriages in China are at a record low. Recent political and economic turmoil have added another reason to postpone tying the knot.”
The ‘old dough sticks’: Life among Beijing’s least eligible bachelors / Sixth Tone
“They’re greasy, over thirty, and looking for love in all the wrong places.”

Population
Shenzhen, China’s ‘city of young migrants,’ at point of inflection / Nikkei Asia (paywall)
“China’s city of Shenzhen, home to the country’s first special economic zone, may have begun to lose its luster. Its population decreased for the first time in 2022, in part because of the COVID-19 pandemic, but also as a result of changes in local government policies.”

Migrant workers
China’s most desperate migrant workers jostle for temporary jobs – losing means they sleep outside and stop eating / SCMP (paywall)
“Faced with dwindling opportunities, from rural hometowns to major cities, some migrant workers roll the dice on where China’s sluggish economic recovery will create the most jobs.”

Movies
Can China’s indie film-makers find a way around the censors? / FT (paywall)
“A censorship process has been in place in Chinese film since the 1930s, under the Nationalist government. With film creation in the hands of a few studios, it was easy for the government to monitor output, until the commercial boom of the 1980s and 1990s made recording equipment more affordable to aspiring directors.”

Translator of top Chinese leaders dies
In memory of the beloved translator of China’s top leaders / Caixin (paywall)
“Yán Míngfù 阎明复, who began his career as the official Russian translator for Chinese leaders including Máo Zédōng 毛泽东, and later senior party and government officials in the 1980s and 1990s , died Monday in Beijing at the age of 92.”

Mental health
Death of Coco Lee triggers public discussion on depression in China / Sixth Tone
“Legendary Chinese American singer Coco Lee’s (李玟 Lǐ Wén) death on Wednesday has sparked widespread discussions about depression and mental health among Chinese netizens.”