Highlighted links for August 7, 2023

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

BUSINESS AND TECHNOLOGY:

Semiconductors and Taiwan
TSMC chairman Mark Liu says company will keep its roots in Taiwan / NYT (paywall)
“In an interview, the chip maker’s chairman, Mark Liu (刘德音 Liú Déyīn), explained why TSMC’s top tech would stay in Taiwan, despite growing threats from China and worries from the United States.”

Education business
International school worth close to $1 billion becomes magnet for China’s rich / Bloomberg
“The growing number of wealthy Chinese leaving their homeland has been a boon for Thailand’s only exchange-listed school operator and turned its chief executive officer into a multimillionaire.”

Slumping foreign investment
China foreign investment gauge at 25-year low amid high tensions / Bloomberg (paywall)
“One measure of new foreign investment in China fell to the lowest level in 25 years in the second quarter, fueling concerns about how much geopolitical tensions and the economy’s slowing recovery can hurt business confidence.”

Cryptocurrencies
Hong Kong approves first retail cryptocurrency exchanges / Nikkei Asia (paywall)
“HashKey Exchange and OSL have become the first cryptocurrency exchanges in Hong Kong to secure licenses for retail investors to trade on their platforms, two months after the local regulator said it would allow companies to offer such services.”

The future of 200 million gig workers
China’s vulnerable gig workers grapple with lower pay and longer hours as Beijing touts benefits of platform economy / SCMP (paywall)
“The burden of buoying China’s flagging economy is increasingly falling to the country’s 200 million gig workers, who already have little job security in an increasingly saturated market, with sweltering summer temperatures only worsening searing conditions.”

AI
AI is booming in China, but its grads are trapped in a talent gap / Sixth Tone
“Despite a talent shortfall in China’s tech industry, fresh graduates from AI programs across the country say they’re stuck in the mud amid the mismatch in skills and job requirements.”

Electric vehicles
Beijing’s tougher regulations thwart Big Tech’s electric vehicle dreams / FT (paywall)
“Red tape is frustrating the efforts of Big Tech in China to launch electric vehicles, with car rollouts from search giant Baidu, smartphone maker Xiaomi and ride-hailing group Didi all being stalled.”
EV powerhouse China leads world in auto exports, topping Japan / Nikkei Asia (paywall)
“China became the world leader in automobile exports in the first six months of 2023, surpassing Japan at the half-year mark for the first time as more Chinese electric cars sold worldwide.”
Toyota, Pony.ai plan to mass produce robotaxis in China / Nikkei Asia (paywall)
“Toyota and partner Pony.ai are planning to mass produce robotaxis in China, setting up a venture this year which will build cars that employ the startup’s autonomous driving technology and ride-hailing services.”
Chinese maker of 1,000 kilometer electric car battery plans IPO / Bloomberg via Caixin (paywall)
Beijing WeLion New Energy Technology, a“Chinese maker of long-range electric-vehicle (EV) batteries — including one capable of going 1,000 kilometers (620 miles) on a single charge — plans to go public as soon as 2025, as it banks on automakers embracing next-generation cells in the race to overcome range anxiety.”

No more cheap labor
The era of ultracheap stuff is under threat / WSJ (paywall)
“Asia, the world’s factory floor and the source of much of the stuff Americans buy, is running into a big problem: Its young people, by and large, don’t want to work in factories.”

China’s troubled economic recovery
China innovation hub Shenzhen poised to lead economic-rejuvenation drive with 55-point plan / SCMP (paywall)
“China’s southern city of Shenzhen is intensifying efforts to improve the local market environment, making it more appealing to investors and boosting the region’s prowess, which a reform expert said could help it survive Washington’s technology siege and open new doors in the country’s economic transition.”
Chinese economists told not to be negative as rebound falters / FT (paywall)
“Chinese authorities are putting pressure on prominent local economists to avoid discussing negative trends such as deflation, as concerns mount about Beijing’s ability to boost a flagging recovery in the world’s second-biggest economy.”
China again vows policy support for economy as slowdown bites / Nikkei Asia (paywall)

Development and real estate
Zhengzhou leads big cities in rolling out housing stimulus / Caixin (paywall)
“Zhengzhou, capital of central China’s Henan province, unveiled a series of measures including easing curbs on home resales and reducing down payments to prop up the ailing property market.”

Aviation industry
Boeing being edged out by Airbus in China’s aviation market, but is there a way back amid U.S. tensions? / SCMP (paywall)
“Chinese airlines’ need to renew their fleets of aircraft could offer an opportunity for Boeing, but ongoing U.S. tensions and the launch of China’s first domestically built narrowbody passenger jet may undermine its efforts to compete with European rival Airbus and pick up new orders in the critical aviation market.”

China’s high-speed railway
A safety row hits a Chinese high-speed railway. How serious is the problem? / SCMP (paywall)
“State-owned outlet says foundation pillars for a rail bridge in Shandong were shorter than the design length and accuses a construction firm of cutting corners.”

Chinese ecommerce in the U.S.
TikTok vs. Temu vs. Shein: The Chinese ecommerce battle lands in the U.S. / Jing Daily
“TikTok is reportedly planning to launch an online retail store in the U.S., connecting Chinese sellers to American buyers. But can it compete with the likes of Shein and Temu?”

Medical exports
China’s medical exports tumble as world moves on from COVID / Nikkei Asia (paywall)
“China’s medical exports fell 26.1% year-on-year in the first half of 2023, dragged down by weaker demand amid a sluggish global economic recovery and a high base for comparison.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Chinese scientists leaving the U.S.
Scientists of Chinese descent leaving the U.S. at an accelerating pace / Chemistry World
“Even before the U.S. government announced plans to crack down on perceived espionage by China in 2018, scientists of Chinese descent were leaving the U.S. Since then the numbers leaving have only accelerated as both junior and experienced faculty depart, according to a new analysis.”

Climate change
Why climate change is missing from China’s sci-fi boom / SCMP
The novella City of Choice “is excellent cli-fi, but it’s also something more: a work of science fiction with the potential to push the genre in a new direction in China.”
Opinion: The right way for America and China to cooperate on climate / Foreign Affairs (paywall)
Kelly Sims Gallagher writes: “After the U.S. climate envoy John Kerry traveled to Beijing last month for three days of talks with Chinese leaders, he expressed cautious optimism. The trip yielded no new agreements, but the mere fact that it took place, Kerry argued, was a step forward. His verdict underscored just how much the space for cooperation between the United States and China has shrunk, even on a matter as urgent as climate change.”

Floods and their aftermath
As floodwaters recede, Chinese city faces ‘bitter’ days ahead / Reuters
“As floodwaters began to drop over the weekend, residents of the Chinese city of Zhuozhou, southwest of Beijing, say their challenges have only just begun.”
What can Beijing learn from the worst flooding in 140 years? / SCMP (paywall)
“In the wake of Beijing’s heaviest rainfall in 140 years, experts have warned that China needs to strengthen its weather and hydrological monitoring system, with the number of extreme weather events expected to increase due to climate change.”
How a 140-year flood caught Beijing and nearby cities off guard / Caixin (paywall)

Ancient panda burial
Chinese archaeologists find first complete panda burial in 2,000-year-old Han dynasty tomb / SCMP (paywall)
“Chinese archaeologists have found what they claim is the first complete skeleton of a giant panda in a Han dynasty emperor’s tomb dating back more than 2,000 years.”

POLITICS AND FOREIGN AFFAIRS:

Spying
2 U.S. Navy sailors charged with providing sensitive military information to China / AP
“Two U.S. Navy sailors were charged Thursday with providing sensitive military information to China — including details on wartime exercises, naval operations and critical technical material.”

Propaganda and foreign influence agents in the U.S.
A global web of Chinese propaganda leads to a U.S. tech mogul / NY Times (paywall)
At the center of a “lavishly funded influence campaign that defends China and pushes its propaganda…is a charismatic American millionaire, Neville Roy Singham, who is known as a socialist benefactor of far-left causes.”

Propaganda aimed at Taiwan
China releases TV documentary showcasing army’s ability to attack Taiwan / AP
“China has released a new documentary about the army’s preparation to attack Taiwan and showcasing soldiers pledging to give up their lives if needed as Beijing continues to ramp up its rhetoric against the self-ruled island.”
Mainland China airs documentary signaling military preparation for Taiwan attack and willingness to sacrifice / SCMP

Ukraine peace talks
China says Jeddah talks on Ukraine helped to ‘consolidate international consensus’ / Reuters
“China’s foreign ministry said on Monday that international talks in Saudi Arabia at the weekend on finding a peaceful resolution to the Ukraine crisis had helped ‘to consolidate international consensus.’”
Analysis: China’s Ukraine peace-talks gambit shows shift in approach / Reuters
With China attending, Ukraine peace discussions inch forward / WSJ (paywall)

The de-risking and decoupling debate
Opinion: The West’s de-risking strategy towards China will fail / The Economist (paywall)
Chris Miller, author of Chip War, “reckons Beijing has many cards left to play in the conflict.”
French finance minister pushes back against ‘decoupling’ / Caixin (paywall)
“Bruno Le Maire, France’s minister for the economy and finance, visited China last month, joining Chinese Vice Premier Hé Lìfēng 何立峰 to co-chair the ninth China-France High-Level Economic and Financial Dialogue from July 29 to 31.”

Authoritarianism and invasions
Opinion: The unpredictable dictators / Foreign Affairs (paywall)
Keren Yarhi-Milo and Laura Resnick Samotin on “Why it’s so hard to forecast authoritarian aggression.”

The PLA Rocket Force purge
Xi remade China’s military to his liking. Now a purge threatens its image / NYT (paywall)
“Xí Jìnpíng 习近平, China’s leader, set out to clean up the military a decade ago. But now his crown jewel, the missile force, is under a shadow.”

Italy and the Belt and Road
China-Italy ties: as Rome looks for belt and road exit it’s expected to be ‘punished twice’ without reaping benefits / SCMP (paywall)
“Italy’s participation in Chinese President Xi Jinping’s flagship foreign policy tool, the Belt and Road Initiative, is drawing to a close, with Rome expected to pull the plug on the four-year saga by the end of the year.”
Italy turns its back on China’s Belt and Road / Foreign Policy (paywall)

Censorship
The art of telling forbidden stories in China / NYT (paywall)
“Many writers are looking for ways to capture the everyday realities that the government keeps hidden — sometimes at their own peril.”

Corruption
Official at top China engineering school falls under graft probe / Caixin (paywall)
“Zhāng Guǎng 张广, vice president of one of China’s top engineering universities, which specializes in aeronautics and astronautics, is being investigated by the country’s top graft busters.”

U.S.-China relations
Chinese deal activity in U.S. slumps to lowest level in 17 years / FT (paywall)
“Chinese deal activity in the US has fallen to its lowest level in almost two decades, in a sign of geopolitical tensions between the two countries weighing on cross-border financial activity.”
U.S. and China to open communication lines after diplomatic push bears fruit / FT (paywall)
“The US and China are opening new lines of communication to tackle contentious issues, in one of the first signs of progress towards stabilizing relations since secretary of state Antony Blinken visited Beijing in June.”
U.S. needs a team to counter China’s political warfare: CSIS / Nikkei Asia (paywall)
Opinion: U.S. re-engagement with China reflects confusion of priorities / Nikkei Asia (paywall)
Masahiro Matsumura writes: “It may be that Washington felt taking a low-key diplomatic approach would help in pressing China not to cooperate with Russia’s war effort in Ukraine. But given growing signs that the war still has a long way to run, and that it will continue to require significant fiscal and military resources, it seems the U.S. has decided now to seek to secure at least China’s benevolent neutrality in relation to the confrontation with Moscow.”
Biden order restricting China-bound U.S. investment expected next week / Nikkei Asia (paywall)
Opinion: Here’s how scared of China you should be / Foreign Policy

Hong Kong censorship and repression
Hong Kong police plan to arrest Danish artist, hold trial in mainland China: report / Radio Free Asia
“The Danish sculptor whose ‘Pillar of Shame’ statue commemorating the 1989 Tiananmen massacre was seized by Hong Kong authorities said he is saddened by a report that he faces arrest if he tries to return to the city to retrieve his work. Hong Kong police have declined to comment on a report in a pro-China newspaper Wednesday that they are taking steps to arrest sculptor Jens Galschiøt.”
Justice department files appeal against judge’s refusal to ban protest song ‘Glory to Hong Kong’ / SCMP (paywall)
“Hong Kong’s justice department has filed an appeal against a judge’s refusal to ban the promotion of a protest song from the 2019 anti-government unrest which keeps getting mistaken for China’s national anthem.”
A family is divided by Hong Kong’s pursuit of U.S.-based activist / WSJ (paywall)
“Elmer Yuen’s (袁弓 Yuán Gōng) relatives, including a pro-Beijing lawmaker, were held and questioned in Chinese city as authorities step up pressure on exiled dissidents.”

Taiwan
Former Japanese prime minister Taro Aso arrives in Taiwan to give keynote speech at regional security forum / SCMP (paywall)
“Former Japanese prime minister Taro Aso has arrived in Taiwan for a three-day visit in a trip certain to rile Beijing.”

Australia
Australia eyes backdown on wine after China agrees to scrap barley tariffs / The Guardian
“The Australian government had agreed to suspend a World Trade Organization barley challenge in exchange for China’s review.”
China reopens trade in Australian barley in a new sign of improved relations / AP
China to lift tariffs on Australian barley as trade ties improve / Nikkei Asia (paywall)

China’s economic policies and a Japanese economist
A Japanese economist’s lasting impact on China / Caixin (paywall)
“Professor Komiya was a leading figure in modern Japanese economics. He had a keen interest in researching China’s economic issues and fostering academic exchanges between Chinese and Japanese economists. His research and observations have had a lasting impact on China’s economic reforms.”

Russia
China not expected to push Russian return to Black Sea grain deal / Nikkei Asia (paywall)
“China is likely hurting economically from the collapse of the Black Sea Grain Initiative, but experts say Beijing appears content not to pressure Russia to return to the deal, which allowed both Russia and Ukraine to ship agricultural products worldwide despite the war.”
China deepens military ties with Russia for ‘non-Western’ front / Nikkei Asia (paywall)
“Even as Russia has been shunned by much of the world after its invasion of Ukraine, China has kept its relationship with Moscow in focus, seeing military cooperation as crucial to counter the common threat they face from the U.S.”

The Philippines
Philippines says China blocked, water-cannoned boat in South China Sea / Reuters
“The Philippines on Sunday accused China’s coast guard of blocking and water-cannoning a Philippine military supply boat in the South China Sea, condemning the “excessive and offensive actions” against its vessels.”

China’s aggression against Philippines’ resupply mission was calculated / SeaLight
“The China Coast Guard’s 5 August water-cannon assault on the Philippines’ resupply mission didn’t just happen. Things didn’t just get out of hand. No, China has clearly been planning for this calculated aggression.”
Philippines tells China it will not abandon post in disputed reef / Reuters
Beijing tells Philippines to remove grounded warship from disputed reef after latest clash in long-running territorial dispute / SCMP (paywall)
Philippines and US accuse China of illegally targeting supply ships / FT (paywall)
China asks Philippines to remove grounded ship in South China Sea / Nikkei Asia (paywall)
Philippine military condemns China’s use of water cannon in disputed sea / Nikkei Asia (paywall)
Philippine Coast Guard meets Chinese blockade / NYT (paywall)

Israel
Israel flirts with China to establish Saudi Arabia ties, but can ‘new kid on the block’ Beijing broker deal? / SCMP (paywall)
“Israel’s Benjamin Netanyahu may look to Beijing to help his country normalize relations with Saudi Arabia amid tensions with the United States, but challenges lie ahead for Beijing’s role as a mediator because of its lack of leverage over the parties, analysts said.”

European Union
EU’s Borrell says he wants to strengthen EU-China relations after call with China’s Wang Yi / Reuters
“The European Union’s foreign policy chief Josep Borrell said both he and China’s Wáng Yì 王毅 want to strengthen EU-China relations, after a call with the Chinese foreign minister.”
EU trade chief to push China on barriers to exports / FT (paywall)
“Brussels will press Beijing to reduce barriers to European exports at a high-level meeting in September after the EU’s trade deficit with China hit almost €400bn last year.”

SOCIETY AND CULTURE:

Shrinking space for LGBTQ community
China fans barred from wearing rainbows at gay-friendly show / Bloomberg (paywall)
“Fans attending a concert by Taiwanese singer Chang Hui-mei [張惠妹 Zhāng Huìmèi] — better known by her stage name A-Mei — say they were prevented from wearing shirts with rainbows on them inside the Cadillac Arena in Beijing, according to participants who posted about the incident on social media.”

Books destroyed in Typhoon Doksuri floods
The many books lost in the China floods: Catastrophic flooding hits Zhuozhou’s publishing industry / What’s on Weibo
“Dozens of prominent Chinese publishing companies and book warehouses based in Hebei’s Zhuozhou, a major hub for the publishing industry, have witnessed their book depots destroyed as water levels surged as high as the second floor.”

Child care
Opinion: Child care subsidies can help address China’s population crisis / Nikkei Asia (paywall)
James Liang writes: “One of the primary reasons for the decline in fertility has been the rising cost of raising a child…Child care subsidies can significantly help reduce the cost of raising a kid. Some European countries have successfully encouraged fertility by allocating 2% to 3% of their GDP to the effort. In recent years, France and Sweden have spent 3% to 4% of their GDP on family benefits. Their total fertility rates are now among the highest in Europe.”
Why some kids in China can’t play during recess / Caixin (paywall)
“In many elementary schools across China, playgrounds and hallways are becoming increasingly quiet during recess. These breaks for children to relax between classes are disappearing as schools restrict students’ movement as they fear being held liable for any accidents.”

China limits children’s screen time
China pleases parents with plan to limit kids’ smartphone use / WSJ (paywall)
“Beijing is preparing to roll out new restrictions on the amount of time that young people spend on mobile devices, putting China further ahead of other countries in controlling how, and how much time, its youth engage in the online world.”

Movies
In China, ‘Barbie’ moves women to tears, ‘triggers’ men to walk out / Nikkei Asia (paywall)
“For women in China, the Hollywood blockbuster ‘Barbie’ has provided a rare viewing experience that can reveal what their boyfriends really think about gender equality.”
Why ‘Barbie’ became a sleeper hit in China / NY Times (paywall)

• On The China Project: In China, ‘Barbie’ triggers heated discussions on patriarchy and feminism