Highlighted links for July 12, 2023

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

BUSINESS AND TECHNOLOGY:

Digital currency
Major Chinese banks launch digital currency payments that don’t need the internet / Caixin (paywall)
“Two major Chinese commercial banks have allowed their customers to start making payments in e-CNY without being connected to the internet, in another push to get more people to use the central bank-created digital currency.”

Automobile industry
Chinese automakers ride overseas demand as global expansion pays off / Caixin (paywall)
“Chinese auto exports again shot up in the first six months of this year, largely fueled by rising demand for new-energy vehicles (NEVs) and surging deliveries to a sanction-hit Russia, as local carmakers sought to invigorate sales with a push overseas.”

Savings
Chinese mainland savers rush to Hong Kong to capitalize on higher returns, less risk / Caixin (paywall)
“Hong Kong has become a hot destination for Chinese mainlanders to park their money as a turbulent onshore capital market has led many to hunt for lower-risk investments overseas.”

Semiconductors
Xiaomi to stay the course on chip design after rival bails / Caixin (paywall)
“Weeks after the collapse of a rival smartphone maker’s semiconductor unit, Xiaomi Corp. told investors it was still all-in on designing its own chips.”

Tech crackdown
Global investors relieved by China tech rebound, but not convinced yet / Reuters
“Rather than spur a relief rally in China’s battered tech sector, the past week’s developments at Jack Ma-founded Ant Group have merely reminded global investors of the fickle nature of the country’s regulatory policies and the fragility of the sector.”
Beijing’s regulatory crackdown wipes $1.1 trillion off Chinese Big Tech / Reuters
“China’s major tech companies have shed more than $1 trillion in value — equivalent to the entire Dutch economy — since the government’s regulatory crackdown on the sector began more than two years ago, according to Refinitiv data.”

U.S.-China tech war
U.S. big tech won’t shake its China addiction / Nikkei Asia (paywall)
“The leaders of America’s most powerful tech companies have been parading through Beijing since early spring, following the end of COVID-19 controls and the gradual reopening of China. Even chilly U.S.-China tensions have not stood in the way of a resumption of pre-pandemic business dialogue.”
China’s ban on Micron roils domestic memory chip market / Caixin (paywall)
“China’s memory-chip industry is in turmoil as U.S. giant Micron Technology Inc., one of the world’s largest suppliers of dynamic random access memory (DRAM) chips, faces a series of setbacks in China.”
‘An act of war’: Inside America’s silicon blockade against China / NYT (paywall)
“The Biden administration thinks it can slow China’s economic growth by cutting it off from advanced computer chips. Could the plan backfire?”

Hacking
China-based hackers have breached government and individual email accounts, Microsoft says / AP
“China called a Microsoft report that a China-based hacking group breached government-linked email accounts ‘disinformation,’ saying Wednesday that the accusation was meant to divert attention from U.S. cyber activities.”
Chinese hackers breached government email accounts, Microsoft says / NYT (paywall)

Development and real estate
Will the ‘fourth arrow’ save Chinese real estate? / Caixin (paywall)
“A long-awaited real estate market stabilization policy was unveiled in China this week.”

IT operations
EY China locked in dispute with global bosses over IT costs / FT (paywall)
“EY’s Chinese business has been refusing to pay fees owed to the Big Four firm’s global headquarters for more than a year in a dispute over IT services that it says cannot be fully used in China, according to people familiar with the matter.”

DHL
DHL invests €500mn in Latin America as clients expand supply chains beyond China / FT (paywall)
“The logistics group is building out new warehouses across alternative manufacturing hubs such as Mexico, Malaysia and Vietnam as businesses try to diversify their sourcing.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Methane-powered rocket
China beats SpaceX with world’s first methane-powered rocket launch / SCMP (paywall)
“A private Chinese aerospace company has won the race to launch a giant rocket powered by methane and liquid oxygen.”
China beats rivals with first methane-liquid rocket launch / Nikkei Asia (paywall)

Extreme weather
The world swelters / Caixin (paywall)
“Temperatures in China and Europe have soared to new levels as the World Meteorological Organization announced that the first week of July was the hottest on record.”

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
China needs to ‘proactively defend’ against spies, state security minister says / SCMP (paywall)
“China must ‘proactively defend’ against spies to strengthen national security and the Communist Party’s leadership, its state security minister said, nearly two weeks after an expanded anti-espionage law took effect.”

Hong Kong
Wanted Hong Kong activist fears for safety, hopes for U.S. asylum / Reuters
“For Anna Kwok (郭鳳儀 Guō Fèngyí), a Washington-based Hong Kong activist, the imposition of a Hong Kong police bounty for her arrest has underscored the urgency of her bid for political asylum at a time of growing tensions between the United States and China.”
Chinese foreign ministry’s arm in Hong Kong slams United States for renewing city’s ‘emergency status’ / SCMP (paywall)
“Beijing’s foreign affairs arm in Hong Kong has hit out at the United States for extending the city’s ‘emergency status,’ calling it a ‘self-defeating’ and ‘hegemonic’ act.”
Beijing’s top office overseeing Hong Kong affairs holds first meeting after upgrade, with provincial security chief named as No. 2 official / SCMP (paywall)
“Beijing’s top office overseeing Hong Kong affairs has convened its first meeting after completing its upgrade to a higher-level outfit reporting directly to the Communist Party, with Henan province’s security chief appointed as its No. 2 official.”

Taiwan
Bulgari apologizes to China for listing Taiwan as a country after online backlash / AP
“Bulgari has become the latest international brand to apologize to China after listing Taiwan as a country on its website.”
China sends large group of warplanes, navy ships towards Taiwan in forceful display / AP
“China sent navy ships and a large group of warplanes, including fighter jets and bombers, toward Taiwan over two days, the island’s defense ministry said on Wednesday, before its annual military exercises aimed at defending itself against a possible invasion.”
Mainland China to send academic group to Taiwan after three-year pause / SCMP (paywall)
“Mainland China will send its first academic group to Taiwan in three years — at the invitation of an organization founded by the island’s former president Ma Ying-jeou (馬英九 Mǎ Yīngjiǔ) — in the hopes of resuming cross-strait exchanges.”
Taiwan People’s Party takes early role of spoiler ahead of vote / Nikkei Asia (paywall)
“With Taiwan’s presidential and legislative elections about six months away, it remains unclear whether the two main parties will be able to win a majority of seats.”

U.S.-China competition and tensions
Kerry to visit Beijing for climate talks amid efforts to revive relations between U.S. and China / AP
“U.S. Special Presidential Envoy for Climate John Kerry will travel to Beijing next week to discuss strategies for limiting global warming, amid a push by the world’s two largest economies to reengage on multiple issues following a sharp decline in contacts.”
U.S. climate envoy set to visit China next week / Caixin (paywall)
U.S., China should continue talks to avoid tit-for-tat measures / Nikkei Asia (paywall)
“U.S. Treasury Secretary Janet Yellen recently completed her first visit to China since taking office. There are no signs of improvement in the frosty bilateral relationship, however, as Beijing is moving ahead with new export restrictions on rare metals used in semiconductors. The two sides should continue dialogue and refrain from using economic measures to trade blows.”
With two meals, Janet Yellen’s outreach in China yields mixed results / WSJ (paywall)
“U.S. Treasury Secretary Janet Yellen had two highly publicized meals during her recent visit to Beijing. Starkly opposing reactions to them give a taste of the challenge the U.S. faces as it tries to repair its fractured relationship with China.”

South China Sea
U.S. urges China to stop harassing vessels in South China Sea / Reuters
“The United States has called on China to ‘cease its routine harassment’ of vessels of other countries with claims in the South China Sea, reaffirming its support for a 2016 arbitration ruling, which China said on Wednesday it does not recognise.”
Philippines launches website on South China Sea arbitration win / Nikkei Asia (paywall)
“The Philippines on Wednesday launched a website containing “official information” about Manila’s arbitration victory against Beijing in their South China Sea territorial dispute.”

U.K.
Dispute over China’s embassy in London strains ties with Britain / Reuters
“It started as a local dispute over China’s plans to build a new embassy next to the Tower of London — pitting the world’s second biggest superpower against an inner-city borough that blocked the project. Just over seven months later, it is escalating into a diplomatic standoff that, officials from both countries told Reuters, is undermining efforts to repair their badly damaged relations.”
U.K. ministers intervene in 8 deals involving China-linked investment / FT (paywall)
“U.K. ministers used national security powers to intervene in eight transactions involving Chinese-linked investment in British companies in the past year, underlining their concern over the potential for Beijing to gain influence over vital industries.”
China opposes U.K.’s ‘discriminatory actions’ against China-linked deals / Reuters
“China firmly opposes what it called the British government’s ‘discriminatory actions’ against Chinese firms, the country’s embassy in the U.K. said after London intervened in Chinese-linked takeovers eight times in the last year.”

Germany
German cabinet to pass China strategy on Thursday – government sources / Reuters
“The German cabinet is to pass its long-promised China strategy on Thursday, two government sources told Reuters, after Chancellor Olaf Scholz’s government last year ordered a review of how Germany interacts with its biggest trade partner.”

South Pacific
Solomon Islands may lead way as China eyes greater South Pacific role / SCMP (paywall)
“The South Pacific could provide a ‘new focus’ for China’s Belt and Road Initiative after this week’s visit by the Solomon Islands’ Prime Minister Manasseh Sogavare, according to diplomatic observers.”
China woos Papua New Guinea with free trade push / Nikkei Asia (paywall)
“China is bolstering economic ties with Papua New Guinea as the Pacific nation seeks to expand trade with the world’s second-largest economy even while deepening military cooperation with the U.S.”

Russia
Kremlin says Putin trip to China is ‘on the agenda’ / Reuters
“The Kremlin said on Wednesday that a visit by President Vladimir Putin to China was on the agenda, adding that now was a good time to build on the already strong relationship between the two countries.”

SOCIETY AND CULTURE:

Aftermath of Kris Wu case
Kris Wu’s accuser asked for public support. Now she’s suing them. / Sixth Tone
“In an unexpected turn of events, the woman whose rape accusations helped land Chinese Canadian pop star Kris Wu (吴亦凡 Wú Yìfán) in jail is now suing her supporters for using her image.”

Music
AI-generated hits of Hong Kong stars surprise fans, bring dead singers back to life and raise questions about copyright / SCMP (paywall)
“AI has figured in the music industry for some years, but more recently, it has been turning out apparently new work by known artists, including some who are long dead.”

Parenting
In China, ‘reverse parenting’ is turning the tables on unruly kids / Sixth Tone
“The post-’90s new generation of Chinese parents is shunning traditional parenting methods. Instead, they are turning to a more radical, and untested, approach to discipline, where parents mirror their children’s behavior.”

Boomerang kids
In China, the ‘full-time kid’ life isn’t all it’s cracked up to be / Sixth Tone
“Young Chinese are moving back in with their parents. Can the two sides coexist?”

• On The China Project: Boomerang kids: Why China’s young professionals are moving back with mom and pop