Highlighted links for August 1, 2023

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

BUSINESS AND TECHNOLOGY:

Private businesses
Skepticism prevails as Chinese leaders promise to back private businesses to spur slowing economy / AP
“Entrepreneurs and investors are waiting to see what tax, spending or other steps the ruling party might take — and whether it will rein in state companies that dominate banking, energy and other industries that economists say are stifling growth.”
Opinion: Measures to boost the economy show China still has love for its private sector / SCMP (paywall)
Edward Tse writes: “New measures to boost growth in the private sector announced by the Chinese government on July 14 have received a mixed reaction from privately owned firms. Some are suspicious of the policy’s intent, some are in a wait-and-see mode and others are positive.”

U.S.-China tech war
Tech cold war: South Korea pivots from China to U.S. / FT (paywall)
“Washington is courting chipmakers and battery manufacturers with large subsidies but demanding they loosen ties with their other major market.”

Private space companies in China
Race is on to become China’s SpaceX / Caixin (paywall)
“The market is eagerly seeking a Chinese answer to Elon Musk’s SpaceX. Since 2015, a group of aerospace scientists who previously worked for state-owned companies embarked on entrepreneurial ventures, aiming to catch up with SpaceX. For China’s private aerospace industry, 2023 is a turning point.”

Semiconductors
China gallium, germanium export curbs kick in; wait for permits starts / Reuters
“China’s export controls on some gallium and germanium products take effect on Tuesday, with traders braced for a drop in international supply in August and September while exporters sort out newly required permits.”
China tightens export restrictions on two chipmaking materials / Nikkei Asia (paywall)

Yuan stability
China asks some banks to reduce or delay dollar buying — sources / Reuters
“China’s currency regulators are asking some commercial banks to reduce or postpone their purchases of U.S. dollars in order to slow the yuan’s depreciation, two people with direct knowledge of the matter said.”

Development and real estate
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.”
Chinese developer’s canceled share placement fuels property sector woes / FT (paywall)
“One of China’s biggest property developers has abruptly abandoned a share placement, sending its stock down as much as 10 per cent on Tuesday and renewing concerns about the troubled real estate sector.”

Nuclear power
China adds to world leading nuclear expansion with six new reactors / Caixin (paywall)
“China’s State Council approved six new nuclear reactors as it continues to expand the world’s biggest pipeline of new atomic energy projects.”

Chinese factories are struggling
The factories on the front line of China’s economic slowdown / FT (paywall)
“From slowing global demand to rising geopolitical tensions and a tentative post-Covid recovery, China’s manufacturers are facing some of the strongest headwinds in years.”
China’s factory activity shrinks for first time in three months as recovery falters, Caixin PMI shows / Caixin (paywall)
“Activity in China’s manufacturing sector shrank in July following sluggish expansion in the previous two months as output and new orders weakened, adding to evidence the country’s economic recovery is faltering, a Caixin-sponsored survey showed Tuesday.”

U.S. firms in China
Business confidence for U.S. firms in China drops to 3-year low / Nikkei Asia (paywall)
“The confidence of U.S. companies in China fell to a three-year low despite a majority reporting a full or partial recovery of their business operations in the country, according to a report released on Tuesday.”

Beijing’s hunt for strategic minerals
China’s overseas investment in metals and mining set to hit record / FT (paywall)
“China’s metals and mining investments overseas are on track to hit a record this year, new data shows, as the country races to secure resources to defend its position as the world’s biggest producer of electric vehicles, batteries, solar panels and wind turbines.”

A revival for China’s big tech?
China’s Big Tech companies revive expansion plans after Beijing vows to give the green light on more deals, ends regulatory crackdown / SCMP (paywall)
“China’s Big Tech companies are ramping up plans for potential new acquisitions and accelerating recruitment initiatives after a wave of lay-offs last year, as Beijing’s pledge to give the green light on more technology deals and the end of a 32-month regulatory crackdown have put the industry back in expansion mode.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Solar industry and human rights
Solar supply chain grows more opaque amid human rights concerns / NYT (paywall)
“The global industry is cutting some ties to China, but its exposure to forced labor remains high and companies are less transparent, a new report found.”

Extreme weather
Beijing, northern China boost rescue efforts after worst storm in years / Reuters
“Beijing and nearby cities stepped up rescue efforts on Tuesday after rains and floods brought by remnants of Typhoon Doksuri disrupted services and food supplies and claimed 20 lives in one of the worst storms to hit northern China in over a decade.”
At least 20 dead across Beijing and nearby Hebei as Tropical Storm Doksuri brings heaviest rain in 70 years / SCMP (paywall)
Beijing area hit by deadliest flooding in a decade / WSJ (paywall)
Floods in North China claim 20 lives as torrential rain cuts power, communications / Caixin (paywall)
Extreme floods hit Beijing, 11 dead, residents cut off / Sixth Tone
Another powerful cyclone threatens Japan and China / NYT (paywall)
“Typhoon Khanun was barreling through the Pacific days after an earlier tropical cyclone, Doksuri, brought death and destruction to the region.”

POLITICS AND FOREIGN AFFAIRS:

Counter-espionage campaign
China wants to mobilize entire nation in counter-espionage / Reuters
“China should encourage its citizens to join counter-espionage work, including creating channels for individuals to report suspicious activity as well as commending and rewarding them, the state security ministry said on Tuesday.”
China urges public to join ‘grim and complex’ anti-espionage fight as new law takes effect / SCMP (paywall)
“China’s top state security body has called on the public to join the fight against spying and support implementation of the country’s new anti-espionage law.”

Party sets stricter criteria when recruiting new members
Why China’s students now face a longer long march to join the Communist Party / SCMP (paywall)
“As Xí Jìnpíng 习近平 puts his hopes for the future of the party on the younger generation, the focus for party membership has been on quality rather than quantity.”

Corruption
Shanghai lawmaker booted from top legislature following graft probe / Caixin (paywall)
“Shanghai lawmaker Dǒng Yúnhǔ 董云虎 has been removed from his position as a deputy to the National People’s Congress (NPC), the country’s top legislature, after becoming the target of a graft probe.”

China’s internet censor cracks down on “misinformation”
China blocks more than 8,000 social media accounts in latest ‘clean up’ campaign / SCMP (paywall)
“China’s internet censor has blocked more than 8,000 social media accounts it says violated the rights of businesses, including ‘smearing’ the country’s first domestically produced passenger jet.”

Qin Gang and Wang Yi
Wang Yi, the return of China’s tough foreign minister / FT (paywall)
Wáng Yì 王毅 “was reappointed foreign minister after the once high-flying Xi favorite Qin Gang was suddenly removed from his post this week without explanation.”
‘Not found’: China’s ex-foreign minister is gone but wait for explanation goes on / Reuters
“Hours after China’s top legislature convened a special meeting last week to remove foreign minister Qín Gāng 秦刚, photos and mentions of the 57-year-old started disappearing from his former ministry’s website.”

Corruption and modernization of the military
China’s Xi calls for combat readiness as PLA marks founding anniversary / Reuters
“After months of intensified and increasingly ambitious drills to project power, Chinese President Xi Jinping, speaking ahead of Tuesday’s 96th anniversary of the People’s Liberation Army (PLA), told China’s armed forces to speed up modernisation.”
China ousts top generals from nuclear Rocket Force / FT (paywall)
“China’s leader Xi Jinping has replaced the two missing generals who had been in command of the country’s missile forces, in effect confirming the largest purge at the top levels of the military in a decade.”
Xi appoints new chief of China’s nuclear arsenal / Nikkei Asia (paywall)
China appoints new leadership for missile force / Caixin (paywall)
China replaces missile commander days after removing foreign minister / NYT (paywall)
Xi leans on old friends to enforce Party discipline in China’s military / Nikkei Asia (paywall)
“With the centennial of the People’s Liberation Army approaching in 2027, Chinese President Xi Jinping is counting on two allies to help tighten the Communist Party’s control over the military and build up its strength with an eye on a potential unification with Taiwan.”

Taiwan
China complains to U.S. about ‘dangerous’ weapons aid to Taiwan / Reuters
“​​China said on Tuesday it has complained to the United States about a weapons aid package to Taiwan, urging Washington to refrain from going further down a ‘wrong and dangerous’ path.”
Paraguay courts Taiwanese investors, warns against China reliance – finance minister / Reuters
“Paraguay is seeking more Taiwanese investment to diversify its farm-driven economy focused on exporting raw materials to China, incoming Finance Minister Carlos Fernandez Valdovinos said in an interview.”
Taiwan to test less robust eastern defenses with month-long missile drills / SCMP (paywall)
“Taiwan’s military will stage a series of missile drills this month in waters off its eastern coastline to test combat readiness amid growing concerns that Beijing could send forces to attack the island from its less fortified east.”
China’s military speeds preparations to blockade Taiwan / Nikkei Asia (paywall)
“China has greatly increased its conducting of military drills simulating the containment of Taiwan since then-U.S. House Speaker Nancy Pelosi visited the island a year ago. Nikkei analyzed the possibility of China’s invasion of Taiwan, using drone-taken images and views by experts.”

Pakistan
Beijing has invested $25.4B in Pakistan over the last decade, Chinese vice premier says / AP
“China has invested $25.4 billion in Pakistan over the past decade for projects ranging from roads to power plants, China’s vice premier said Monday, as the two countries celebrated the 10th anniversary of the so-called Belt and Road Initiative.”

EU
EU leader cites Russia’s invasion of Ukraine to warn against China’s aggression in Asia / AP
“The leader of the European Union’s executive commission cited Russia’s invasion of Ukraine to warn against China’s increasingly assertive actions in disputed Indo-Pacific waters and against Taiwan and said Monday that the EU would not tolerate aggression in either region.”

SOCIETY AND CULTURE:

Food
Good news for cold noodle lovers: Authorities relax license requirements / Sixth Tone
“Cold food license requirements are being relaxed for restaurants and food establishments, making it easier for them to serve up popular dishes such as liangpi and salads.”
Dip in spending kicks off price war in China’s fast-food industry / Sixth Tone
“Discounted menus targeting the price-conscious are emerging across the country, leaving small eateries at risk in an increasingly price-sensitive market.”