The China Agenda for July 31–August 6 — APEC
This is what’s on the diplomatic, political, and business agenda for the week of July 31–August 6.
This week is a relatively quiet one, at least from the perspective of officialdom: Congress is in recess, with officials working in their respective states until after Labor Day; meanwhile, the Chinese CCP elite is expected to decamp to Beidaihe for two weeks.
Upcoming diplomatic visits and international political events
French Economy Minister Bruno Le Maire finishes up his three-day visit to Beijing on Monday, which included “constructive” trade talks with Vice Premier Hé Lìfēng 何立峰.
He Lifeng is now in Pakistan until August 1, to celebrate the 10th anniversary of the China-Pakistan Economic Corridor (CPEC). He will also meet Pakistan’s president and prime minister.
The Asia-Pacific Economic Conference (APEC) has a number of meetings over the course of the coming week in Seattle as part of the third Senior Officials’ and Ministerial Meetings.
China’s export controls on germanium and gallium, two minerals critical to the manufacturing of semiconductors, come into force on Tuesday, August 1.
- China is by far the main source of these elements, and the restrictions are seen as retaliatory for export controls imposed by the U.S. and the Netherlands in recent months.
PLA Day (or Army Day) will fall on Tuesday, August 1. This is an annual holiday for the Chinese military, commemorating the PLA’s founding in 1927.
The Australia- and U.S.-led international naval military exercise, Exercise Talisman Sabre, is running July 22–August 4.
- More than 30,000 military personnel from 13 nations will directly participate, and China is expected to deploy PLAN ships to monitor the exercises, as it has in the last three of the biannual exercises.
At the United Nations, several relevant meetings will be held this week:
- The Human Rights Council’s Working Group on the use of mercenaries as a means of violating human rights and impeding the exercise of the right of peoples to self-determination will hold its 49th session July 31–August 4.
- The UN Pledging Conference for Development Activities will take place on July 31.
- The 13th session of the Committee of Experts on Global Geospatial Information Management will take place August 2–4.
Important speeches, policy announcements, or domestic political events
The National People’s Congress will review several bills in August that were still pending at the end of the 13th NPC’s term. These are:
- Draft revision to the Company Law
- Draft Value-Added Tax Law
- Draft amendment to the Civil Procedure Law
- Draft amendment to the Administrative Litigation Law
The NPC standing committee is also seeking public comment on an amendment to the Draft Criminal Law bill until August 24.
Earnings reports, IPOs, and other market events
Data releases:
- On July 30, at 9:30 p.m. ET, China’s Manufacturing PMI data is released by the National Bureau of Statistics. This index measures the performance of the manufacturing sector for the preceding month.
- On July 30, at 9:30 p.m. ET, China’s Non-Manufacturing PMI data is released by the National Bureau of Statistics. This index measures the performance of the non-manufacturing sector for the preceding month.
- On July 31, at 4:30 a.m. ET, the advance estimates for Hong Kong’s second-quarter GDP growth is released.
- On August 2, at 9:45 p.m. ET, China’s Services PMI and Composite PMI data is released. This index tracks variables such as sales, employment, inventories, and prices, based on survey data.
- On August 4, at 4:00 a.m. ET, China’s Current Account preliminary figures are released for the second quarter of 2023. The current account is the sum of the balance of trade, net factor income, and net transfer payments.
Earnings:
Apple will hold a conference call to discuss its third fiscal quarter results and business updates on August 3, at 5:00 p.m. ET.
Toyota will release its financial results for the first quarter of its 2024 financial year on August 1.
- This comes after the company recently dismissed around 1,000 factory workers in China.
HSBC will announce its interim results on August 1, at midnight. This will be followed by a webcast and conference call with investors and analysts at 2:30 a.m. ET.
Yum China will hold its second-quarter earnings conference call on July 31, at 8:00 p.m. ET. Yum China is a Shanghai-based fast-food restaurant chain listed on the New York Stock Exchange.
Hutchmed (China) will announce its earnings for the first half of 2023 on July 31 before markets open. Hutchmed, a biopharmaceutical company, is listed on Nasdaq.
Daqo New Energy, a leading silicon manufacturer for the solar power industry, is expected to report its earnings on August 3.
Events
Academic and think-tank events this week include:
Asia Society: Elevating Southeast Asia in American China Policy, August 1, 10:00 a.m. ET.
CSIS: Book Launch: Beijing Rules: How China Weaponized Its Economy to Confront the World, August 1, 2:00 p.m. ET.
Asia Society: China and the Rise of Electric Vehicles, August 3, 10:00 a.m. ET.
US-China Business Council: Geopolitical Risk Series: Unpacking Trends and Risks in the US-China Relationship, August 3, 11:00 a.m. ET.
Cambridge University’s Centre for Geopolitics: Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Panel Event, August 3, 3:00 p.m. ET.
CSIS: Looking South: A Conversation with GEN Laura Richardson on Security Challenges in Latin America, August 4, 10:00 a.m. ET.
