Highlighted links for July 31, 2023

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

BUSINESS AND TECHNOLOGY:

WeChat
Why does Elon Musk want X to emulate China’s everything-app? / BBC
“Mr. Musk has long said that he wants to transform his social media firm, which he bought last year for $44 billion, into a much larger platform. He has previously praised WeChat — a so-called ‘everything app’ that combines chat, dating, payments and social media — and has said creating something ‘even close to that with Twitter… would be an immense success.’”
WeChat user numbers plummet nearly 30% in Australia amid concerns of Chinese interference / The Guardian
“WeChat has said its user numbers in Australia have declined almost 30% in the past three years, amid questions being raised about foreign interference on the app.”

Auto
Volkswagen seeks to regain edge in China as it cuts delivery forecast / NYT (paywall)
“Volkswagen, Europe’s largest automaker, is scaling back its forecast for deliveries in 2023 as it grapples with lagging sales of its electric vehicles, but the company said on Thursday that it hoped to bolster its position in China through increased collaboration with local technology companies.”

U.S.-China tech war
China curbs exports of drone equipment amid U.S. tech tension / Reuters
“China on Monday announced export controls on some drones and drone-related equipment, saying it wanted to safeguard ‘national security and interests’ amid escalating tension with the United States over access to technology.”
China imposes curbs on drone exports, citing Ukraine and concern about military use / AP
China curbs exports of drone-related equipment amid U.S. tech tensions / Nikkei Asia (paywall)
China’s tech distress grows as U.S. chip sanctions bite / WSJ (paywall)
“China’s tech sector is showing the strain from last year’s sweeping U.S. export restrictions, which seek to stall Beijing’s ambitions in cutting-edge industries such as artificial intelligence and supercomputing.”

Stimulating consumerism
China’s State Council issues measures to expand consumption / Reuters
“China’s State Council on Monday issued measures to restore and expand consumption in the automobile, real estate and services sector, aiming to give full play to the ‘fundamental role’ of consumption in economic development.”
China is trying to make its gloomy consumers spend more / NYT (paywall)
“The central government listed measures aimed at prodding people to open up their wallets, but absent was how much it will spend to support the stimulus plan.”

China’s economic woes
While everyone else fights inflation, China’s deflation fears deepen / WSJ (paywall)
“Signs of deflation are becoming more prevalent across China, heaping extra pressure on Beijing to reignite growth or risk falling into an economic trap it could find hard to escape.”
Beijing is still too confident about China’s economy / WSJ (paywall)
“China’s economy is either slogging through a normal post-pandemic soft patch or on the brink of something much worse: a damaging bout of deflation and a double-dip downturn.”
China’s economic recovery weakens as growth concerns linger / WSJ (paywall)
“Growth momentum in China’s economy showed continued signs of weakness in July, raising calls for Beijing to intervene more aggressively to prevent negative sentiment from taking root.”
As China’s economy wobbles, its Rust Belt is having a moment / Sixth Tone
“Ever since the northeast China-set drama ‘The Long Season’ became one of the biggest TV shows of 2023, critics and audiences have once again found themselves debating whether China is in the midst of a ‘Dongbei Renaissance.’”

Retail investors
Small investors are a big problem in China / WSJ (paywall)
“China’s small investors have a huge influence on stock prices. Unlike in the U.S., where large institutions dominate trading, China’s stock market is still driven by its 219 million individual investors.”

Development and real estate
Words only go so far: Investors want property fixed before buying China / Reuters
“For all the excitement whipped up in China’s markets by the Politburo last week, foreign investors say policymakers’ words will have to be matched by substantive action to clean up an ailing property sector before confidence recovers.”
China’s biggest cities vow to introduce steps to boost property sector / Reuters
“China’s biggest cities including Beijing and Shenzhen said over the weekend they would implement measures to better meet the needs of homebuyers, without giving details, aiming to prop up a property sector that is seeing few signs of recovery.”
China’s property problems appear poised to improve, but can ‘much more risky’ real estate still drive economic growth? / SCMP (paywall)
“Beijing vows restrictive property policies will be further relaxed, but investors do not seem to have the same speculative mentality they used to.”
China aims to spur property purchases by current homeowners / Nikkei Asia (paywall)
“China is moving to revitalize its slumping property market, easing regulations that stipulated higher mortgage rates and down payments when current apartment owners seek to buy and move into a new one.”
China’s property crisis contagion spreads to state-backed developers / Caixin (paywall)
“Despite China’s government throwing just about everything in its policy basket at the real estate crisis, the sector continues to deteriorate, with sluggish sales, a growing list of unfinished projects, and mounting debt repayments. Consequently, more developers than ever are on the edge of defaulting on their maturing bonds estimated to be worth over 2 trillion yuan ($357 billion).”
China’s personal mortgages post first decline in a decade / Caixin (paywall)
“China’s personal mortgages registered the first year-on-year decline on record at the end of the second quarter, putting further pressure on policymakers to prop up a recovery in the housing market that has been losing steam after a brief rebound at the start of this year.”

China’s local debt
How China’s hidden debt risk ‘comes from its system’, and why local governments are beholden to Beijing / SCMP (paywall)
“China’s zero-COVID policies and post-pandemic push for self-sufficiency have strained finances at local levels, pushing debt sky high this year, with little help from the central government.”

Huawei
Huawei bucks trend of plunging China smartphone sales / Caixin (paywall)
“In the second quarter of 2023, Huawei Technologies Co. Ltd. was the only company among the top smartphone vendors in China to record double-digit shipment growth in the domestic market, where consumer demand for handsets remained weak following the pandemic.”

Tencent
Tencent video-sharing service hits 800m users, overtakes rivals / Nikkei Asia (paywall)
“Tencent Holdings’ video-sharing service has racked up over 800 million users in just two years since its debut in 2020, quickly overtaking rival Chinese platforms such as Douyin and Kuaishou in the race to dominate the sector in the world’s No. 2 economy.”
Tencent, Douyin press play on esports ahead of Asian Games / Nikkei Asia (paywall)
“From backing teams to subsidizing new venues, China’s public and private sectors are ramping up efforts to promote esports ahead of its medal sport debut in the upcoming Asian Games.”

Shein vs Temu
China-founded rivals Shein and Temu ramp up war for American shoppers / WSJ (paywall)
“Shein and Temu, two of the fastest-growing shopping platforms in the U.S., have taken the gloves off in a globe-spanning fight that accentuates a strong reliance on China that both companies are trying to play down.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Agriculture
Chinese scientists crack sterility code in hybrid rice, raising hopes for healthier, high-yield crops / SCMP (paywall)
“Researchers unlock secrets of how ‘killer’ and ‘guardian’ genes cause infertility in rice plants.”

POLITICS AND FOREIGN AFFAIRS:

Xi Jinping
Xi Jinping’s three balancing acts / ChinaFile
“Xi has tough tasks ahead in his third term: balancing growth with security in economic policy, balancing ambition with restraint in foreign policy, and balancing competing sub-factions in elite politics,” writes Neil Thomas, who concludes that stagnation is more likely than rejuvenation.

China’s new foreign minister
China’s Wang Yi makes first statement after reappointment as foreign minister / Reuters
“China’s Wáng Yì 王毅 has made his first comments on Friday since his reappointment as foreign minister, promising to deepen partnerships and safeguard sovereignty in a statement posted on his ministry’s website.”
China’s Wang Yi sets out goals as foreign minister again, as Qin Gang’s name reappears on ministry website / SCMP (paywall)
Opinion: Stony silence over Qin Gang saga does China’s reputation no favors / SCMP (paywall)
Wang Xiangwei writes: “If Beijing had come clean about the reasons for Qin’s dismissal and been willing to address media questions, it might have incurred nothing more than embarrassment.”

PLA corruption scandal
China names General Wang Houbin as new PLA Rocket Force chief after former commanders snared in corruption scandal / SCMP (paywall)
“Beijing has appointed a new leadership for the force responsible for its nuclear arsenal after its former commanders were snared in an anti-corruption campaign. Wáng Hòubīn 王厚斌, the navy’s former deputy commander, will become the new head of the People’s Liberation Army Rocket Force, while Xú Xīshèng 徐西盛 will move from Southern Theatre Command to become its new political commissar.”
Chinese anti-corruption investigators target top PLA Rocket Force generals, sources say / SCMP (paywall)

Mining company hides deaths
Mining company in Shanxi concealed 43 deaths, says probe report / Sixth Tone
“A month after an exposé revealed that the Jingchen Mining Company in northern China’s Shanxi province had concealed the deaths of 17 workers over 15 years, a subsequent government investigation has now brought to light more distressing revelations.”

Uyghur repression
Opinion: Let the tragedy in my homeland be a lesson / NYT (paywall)
An essay adapted from a forthcoming book, Waiting to Be Arrested at Night: A Uyghur Poet’s Memoir of China’s Genocide by Tahir Hamut Izgil.

Migration and urbanization
China eases residential registration rules to boost growth / Nikkei Asia (paywall)
“Cities hope that making it easier for migrants to settle will spur consumption.”

Guo Wengui and Republican Party corruption
Lawmakers spoke up for an indicted Chinese mogul. Campaign cash followed / Mother Jones
U.S. congressman, “fabulist and alleged fraudster George Santos…Arizona Rep. Paul Gosar — a 2020 election truther censured by the House in 2021 after he spoke at a white supremacist event and…Rep. Andy Ogles, a hard-right freshman from Tennessee, who like Santos was found after his election to have fibbed about his resume” took money from exiled Chinese conman Guō Wénguì 郭文贵, and have offered public support for him as recently as June.

Duan Weihong
Detained Red Roulette billionaire Duan Weihong resurfaces in China / SCMP (paywall)
Duàn Wěihóng 段伟红, the businesswoman and former wife of Red Roulette author Desmond Shum — and who was “previously under investigation for her ties to disgraced Politburo member Sūn Zhèngcái 孙政才” — has made public appearances.

Transnational repression
A rights lawyer who was fleeing China has been arrested in neighboring Laos / AP
“Lú Sīwèi 卢思位 was seized by Laotian police Friday morning while boarding a train for Thailand. He was on his way to Bangkok to catch a flight to the United States to join his wife and daughter.”

Hong Kong
U.S. will not invite sanctioned Hong Kong leader to APEC / Reuters
“The United States will not invite Hong Kong’s chief executive, who faces U.S. sanctions, to visit San Francisco during November’s Asia-Pacific Economic Cooperation summit, two congressional aides said on Friday.”
U.S. bars Hong Kong leader from APEC summit / Nikkei Asia (paywall)
China demands U.S. invite Hong Kong leader to economic meeting, adding to strains over crackdown / AP
Hong Kong court rejects government bid to ban protest song / Reuters
“Hong Kong’s High Court on Friday rejected a government bid to ban the protest song ‘Glory to Hong Kong,’ saying it could undermine freedom of expression and cause potential ‘chilling effects.’”
Hong Kong loses court bid to ban protest song appearing on Google / WSJ (paywall)

Taiwan
China says U.S. military aid to Taiwan will not deter its will to unify the island / AP
“China accused the United States of turning Taiwan into an ‘ammunition depot’ after the White House announced a $345 million military aid package for Taipei, and the self-ruled island said Sunday it tracked six Chinese navy ships in waters off its shores.”
Taiwan toughens penalties for sexual harassment after wave of #MeToo allegations / SCMP (paywall)
“Taiwan has toughened penalties for sexual harassment after a wave of allegations were made against political and other high-profile figures in recent months.”
U.S. announces $345m military aid package for Taiwan / Nikkei Asia (paywall)
“The U.S. on Friday announced $345 million in military aid for Taiwan, in what is the Biden administration’s first major package drawing on America’s own stockpiles to help Taiwan counter China.”

South China Sea
China to conduct military training in disputed part of South China Sea / Reuters
“China will conduct military training in the South China Sea from July 29 to Aug. 2 covering a large area including the Paracel Islands and Macclesfield Bank, its Maritime Safety Administration said on Friday.”
Foreign ships, aircraft in East and South China Seas escalating tensions, China’s defense ministry says / Reuters
“The frequent dispatch of ships and aircraft by certain unnamed countries to ‘show off their military force for self-interest’ has raised tensions in the East and South China Seas, China’s defense ministry said on Saturday.”

U.S.-China competition and tensions
U.S. hunts Chinese malware that could disrupt American military operations / NYT (paywall)
“American intelligence officials believe the malware could give China the power to disrupt or slow American deployments or resupply operations, including during a Chinese move against Taiwan.”

Comprehensive Progressive Trans-Pacific Partnership
Biggest hurdles to China entry into trans-Pacific trade pact are political / Reuters
“China should be able to meet standards set out in a major trans-Pacific trade pact, trade experts say, forcing members to make a politically uncomfortable decision on whether to let Beijing join a deal created to counter its growing influence.”

The race for the Arctic
America’s military trails Russia and China in race for the melting Arctic / WSJ (paywall)
“U.S. is competing with a partnership between the two countries but has fewer icebreakers and ports, and less experience.”

Indonesia
‘Like-minded’: China reaffirms strategic ties with Indonesia / SCMP (paywall)
“China and Indonesia should advance their strategic partnership, offering each other opportunities for development, Chinese President Xí Jìnpíng 习近平 told his Indonesian counterpart Joko Widodo on Thursday.”
Jokowi bags $13bn in investment pledges after meeting with Xi / Nikkei Asia (paywall)

UAE
China, UAE set for joint air force training in military first, as Beijing forges closer Middle East ties / SCMP (paywall)
“The air forces of China and the United Arab Emirates will train together for the first time next month, according to the Chinese defense ministry.”

Australia
Defense secretary Austin says the U.S. stands with countries against China’s ‘bullying behavior’ / AP
“U.S. Defense Secretary Lloyd Austin said Friday the United States stands with countries fighting Chinese ‘bullying behavior’ as he launched bilateral talks in Australia aimed at countering Beijing’s growing influence in the Indo-Pacific region.”

North Korea
North Korea’s Kim vows to boost cooperation with China to ‘new high’ / Reuters
“North Korean leader Kim Jong Un met the Chinese delegation which visited Pyongyang to celebrate the 70th anniversary of the end of the Korean War and vowed to develop the two countries’ relations to a ‘new high,’ the North’s state media said on Saturday.”
North Korea turns to Russia, China as Asia enters ‘Cold War 2.0’ / Nikkei Asia (paywall)
“For the first time since the coronavirus pandemic started, North Korea has invited foreign visitors to the country. The occasion was the 70th anniversary of the armistice agreement that ended combat in the Korean War, and the visitors were representatives of North Korea’s wartime allies.”

Pakistan
Pakistan hails Belt and Road wins ‘prematurely’ as polls loom / Nikkei Asia (paywall)
“When China and Pakistan teamed up on infrastructure projects under Beijing’s Belt and Road Initiative, Karachi businessman Saeed (not his real name) expected to sell plenty of spare parts used in power plants.”

SOCIETY AND CULTURE:

The population crisis
The last generation: Why China’s youth are deciding against having children / Asia Society
“‘The last generation’ is a much more subtle and resigned form of protest. Rather than take to the streets to rail against the state of affairs and risk losing their precarious social position, many young Chinese are instead marking their unease by refusing to participate in the nation’s future.”

Youth unemployment
China’s graduates unconvinced by calls to toil in countryside / The Guardian
“This year the ministry of education hopes to recruit 52,300 people to a programme that ships teachers to poverty-stricken areas with ‘special difficulties.’ But working in remote, undeveloped parts of China is challenging for even the most experienced educators.”

Elderly care
Asian innovators are finding ways to keep elderly connected / Nikkei Asia (paywall)
“People have never been more isolated and disconnected, whether we are talking about the broader population of the U.S. or China’s 260 million seniors.”

“Fake bears”
Our bears are real, a Chinese zoo says, denying they are ‘humans in disguise’ / AP
“A zoo in eastern China is denying suggestions some of its bears might be people in costumes after photos of the animals standing like humans circulated online.”

Soccer
For this rural county, internet fame is about more than just money / Sixth Tone
“One of the last counties in China to be lifted from poverty, Rongjiang County in Guizhou province has been viral all summer because of its village soccer league. Though the huge tourism influx has boosted the local economy, for locals, it is not just money that drives their fervor for the sport.”
A league of their own: On the Ground at China’s village soccer sensation / Sixth Tone
“With its festival-like atmosphere and ethnic minority performances, a rural soccer league in Rongjiang County, southwest China’s Guizhou province, has been a social media sensation all summer.”

Swimming
Qin Haiyang of China sets a world record in the men’s 200-meter breaststroke at world championships / AP
Qín Hǎiyáng 覃海洋 “set a world record in the men’s 200-meter breaststroke at the swimming world championships on Friday, winning the gold medal in 2 minutes, 05.48 seconds.”

Myers-Briggs trends amongst Chinese youth
Young Chinese obsess over Myers–Briggs type indicator, the 60s American personality test / Sixth Tone
“Newly graduated from university in May, Bai Shu had her sights set high on a job at a leading domestic bank. Confident in her ability to get the job, she was shocked when she found that she was rejected. The reason the bank gave her was that she is an ENTJ, also known as a ‘Commander,’ one of 16 personality types described by the Myers-Briggs Type Indicator, or MBTI.”

China’s young global nomads
Young Chinese opt out of the rat race and pressures at home to pursue global nomad lifestyle / AP
“A growing number of young Chinese [are] moving overseas not necessarily because of ideological reasons but to escape the country’s ultra-competitive work culture, family pressures and limited opportunities after living in the country under the strict pandemic policies for three years.”

Tutoring
China plugs in national platform for after-school tutoring / Nikkei Asia (paywall)
“China launched a national platform for qualified after-school tutoring services, putting the sector under closer scrutiny after a two-year crackdown that wiped off billions of dollars from the industry.”