Highlighted links for August 23, 2023

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

BUSINESS AND TECHNOLOGY:

Investors fleeing China
Global funds abandon China blue chips in $11 billion selloff / Bloomberg (paywall)
“Global investors have been shedding China’s blue-chip stocks during the longest stretch of outflows on record, showing even the nation’s industry leaders are falling out of favor as a rout deepens.”

Parents turn to domestic diaper brands
China’s baby diaper brands gain budget-conscious fans at home / Nikkei Asia (paywall)
“China’s market for baby diapers is undergoing a major shift as young parents leave behind Japanese and other foreign premium brands they previously favored and embrace high-performing yet affordable products from domestic companies.”

Electric vehicles
China’s Xiaomi wins state planner nod to make EVs amid glut in autos / Reuters
“Xiaomi Corp has won the approval of China’s state planner to manufacture electric vehicles (EVs), said two people with knowledge of the matter, marking a major step towards the smartphone maker’s goal of producing cars by early next year.”
China’s Geely struggles to lift profits as price war rages / Nikkei Asia (paywall)
“China’s Geely Automobile Holdings reported a virtually flat net profit for the first half of the year on Tuesday, as the automaker struggles to shift to electrified vehicles amid a sluggish economic recovery and severe price competition at home.”
China’s auto exports belie roadblocks to conquering Europe, U.S. / Caixin (paywall)
“Riding the wave of an electric-vehicle (EV) frenzy and the global shift toward electrification, Chinese automakers have performed well in their push to go global, but the road ahead is not without hurdles, especially from some governments in Europe and the U.S., which are ramping up policies to promote their own EV industries.”

Cryptocurrencies
Crypto-mining Chinese official given life in prison for scheme involving bribes and support for a cryptocurrency firm / SCMP (paywall)
“Xiāo Yì 肖毅, a former senior provincial official who was sacked in 2021 for supporting cryptocurrency mining, will spend the rest of his life in prison for accepting bribes and abusing his power, a local court ruled.”
Ex-provincial official gets life for bribery and aiding crypto mining / Caixin (paywall)

Semiconductors
Investors sound alarm over Arm’s exposure to China / FT (paywall)
“Prospective investors in Arm’s initial public offering have raised concerns over the UK chip designer’s exposure to China, after the company warned of “significant risks” in the country.”

AI
Baidu to debut next challenger to ChatGPT by end of the year / Nikkei Asia (paywall)
“Chinese search giant Baidu plans to launch Ernie 4, the next version of its generative AI large language model, by the end of this year, CEO and founder Robin Li (李彦宏 Lǐ Yànhóng) said Tuesday, ratcheting up the technology race with U.S. competitors.”

China faces a pension shortfall
China’s pension growth dwindles as population ages, workforce shrinks / Caixin (paywall)
“A pension shortfall is looming in China as the country is confronted by a rapidly aging population and slowing economic growth. The government has continued to raise the basic pension for urban retirees, as it has for nearly two decades, but is doing so by increasingly smaller increments, with the smallest ever addition made in 2023.”

Real estate and property development
China should stick to ‘houses are for living, not for speculation’ – state media / Reuters
“China should adhere to the principle that “houses are for living in, not for speculation” for the time being, the state-run Economic Daily said in an editorial on Wednesday, amid an economically damaging downturn in the property sector.”
As China’s property crisis plagues its economy and financial system, is a ‘Lehman Moment’ looming? / SCMP (paywall)
“Two years after the bond default by one of China’s biggest real estate developers created the first shock waves, Beijing’s promise that everything is under control is becoming increasingly harder to sell to investors.”
China’s property crisis is a US$261 billion credit pain for lenders, trust firms and insurers, Goldman says / SCMP (paywall)
China’s housing demand is probably delayed, not disappearing / Caixin (paywall)
“China’s property sales, prices and investments declined further last month on an already-low base for comparison. After examining recent data, we would like to raise a few curiosities.”

Nike
Nike suffers record losing streak on China, inventory woes / Caixin (paywall)
“Nike Inc. posted a record streak of losses as concern over China’s sluggish consumer recovery builds and elevated merchandise stockpiles continue to weigh on profitability across the activewear industry.”

Huawei
Huawei is building secret network for chips, trade group warns / Reuters
“Huawei Technologies Co is building a collection of secret semiconductor-fabrication facilities across China to let the company skirt U.S. sanctions, a Washington-based semiconductor association has warned.”
Huawei mobile OS Harmony falls out of tune with growth / Nikkei Asia (paywall)
“Huawei Technologies has rolled out a new operating system for mobile devices, but the OS faces a slowdown in growth as market share remains mired in the single digits.”

Foxconn
Foxconn’s Gou: Taiwan businesses want peace with Beijing / Bloomberg (paywall)
“Terry Gou (郭台銘 Guō Táimíng), the founder of Apple Inc.’s key Taiwan-based supplier Foxconn Technology Group, is on the island of Kinmen to commemorate the 65th anniversary of the second Taiwan Strait crisis. Gou has been toying with an independent bid to become Taiwan’s next president but has yet to formally enter the race. He spoke to Bloomberg’s Stephen Engle.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Healthcare
China launches inspection of illegal uses of national medical fund – state media / Reuters
“China launched inspection of illegal and irregular uses of national medical funds in all its provinces and regions from August this year to safeguard the “life-saving” funds, Chinese state broadcaster CCTV said on Wednesday.”

Earthquake
Earthquake of magnitude 4.6 strikes China’s northeastern Liaoning – CENC / Reuters
“A magnitude 4.6 earthquake struck Dalian city in China’s northeastern Liaoning province at 6:19 p.m. on Wednesday, the China Earthquake Networks Center (CENC) said.”

POLITICS AND FOREIGN AFFAIRS:

Dissident seeking exile
‘Chinese activist’ makes 300-km jet ski ride to South Korea / Reuters
“A Chinese man who rode a jet ski more than 300 km (186 miles) across the sea to South Korea from China was jailed in his homeland several years ago for making fun of its leader, Xí Jìnpíng 习近平, a South Korean activist said on Wednesday.”
Man flees China on water scooter, crossing 200 miles of sea to S. Korea / Washington Post (paywall)

BRICS
China’s Xi Jinping calls for accelerated BRICS expansion / Nikkei Asia (paywall)
“China’s President Xí Jìnpíng 习近平 called for the acceleration of the expansion of the BRICS group on Wednesday, a goal the world’s second largest economy has long harbored.”
Xi’s missed speech at BRICS event sparks speculation / Nikkei Asia (paywall)
“Chinese President Xí Jìnpíng’s 习近平 mysterious absence from a business event at the BRICS summit in South Africa has sparked a flurry of speculation, as he had been scheduled to deliver a speech.”
Xi Jinping hails ‘golden era’ in China-South Africa relations amid BRICS summit / SCMP (paywall)
“Relations between China and South Africa have entered a ‘golden era’ and are set to deepen, Chinese President Xí Jìnpíng 习近平 told his South African counterpart Cyril Ramaphosa in talks in Pretoria on Tuesday.”
China’s Xi says BRICS should accelerate plan to expand members / Bloomberg (paywall)
“President Xí Jìnpíng 习近平 called on the BRICS bloc of emerging markets to fasttrack a plan to expand its members at a summit in South Africa, as China leads a push to give the group more clout on the world stage.”
China, Russia deliver broadsides against the West at BRICS summit / WSJ (paywall)
“Putin accuses the West of provoking the war in Ukraine; Xi rejects criticism of China’s political model.”
China tries to increase its clout in Africa amid rivalry with the U.S. / NYT (paywall)
“China’s leader, Xí Jìnpíng 习近平, pitches his country as a leader of the developing world, rallying support for an alternative to the U.S.-dominated global order.”

Hong Kong protest song
Hong Kong court gives go-ahead for government’s appeal bid against rejected ban on protest song often mistaken for national anthem / SCMP (paywall)
“A Hong Kong court has given the go-ahead for the government to appeal against a rejected ban on a 2019 protest song often mistaken overseas for the national anthem.”

Taiwan military preparedness
On frontline island with China, Taiwan president says peace comes through strength / Reuters
“Maintaining peace needs a powerful defense, Taiwan President Tsai Ing-wen (蔡英文 Cài Yīngwén) said on Wednesday, as she made a rare visit to a frontline island located right next to China, to mark the anniversary of a key military clash with Chinese forces.”
Tsai renews her pledge to strengthen Taiwan’s self-defense during her visit to war memorial / AP

Tibet
U.S. to sanction Chinese officials for forcible assimilation of Tibetans / WSJ (paywall)
“The U.S. State Department on Tuesday said it was taking action to punish Chinese officials in response to what it called the forcible assimilation of young Tibetans, broadening its assault on Beijing’s treatment of ethnic minorities.”
China urges US to revoke visa curbs on officials over Tibetan ‘assimilation’ issue / Reuters
“China’s foreign ministry said on Wednesday the ‘wrong decision’ made by the United States to impose visa restrictions on Chinese officials over ‘forcible assimilation’ of Tibetan children at boarding schools should be revoked immediately.”

U.S.-China competition and tensions
‘We are in the same boat’: Chinese envoy Xie Feng meets US commerce chief Gina Raimondo to set tone for official visit / SCMP (paywall)
“Chinese ambassador to the United States Xiè Fēng 谢锋 on Tuesday highlighted the need to ‘overcome difficulties together in the same boat’ as he set the tone and agenda for US Commerce Secretary Gina Raimondo’s official visit to China.”
The rise of the middle powers / FT (paywall)
“This series looks at how the stand-off between America and China has ushered in a new era of opportunity for countries across the world.”
US tells China to be more transparent with economic data amid slowdown / FT (paywall)

Argentina
China-Argentina currency swap poses risks and opportunities, economist says / Caixin (paywall)
“The currency swap deal between China and Argentina that the Latin American country recently tapped to repay a portion of an international debt in yuan poses risks that need to be examined, prominent economist Yú Yǒngdìng 余永定 told Caixin.”

Japan
China group tours return to Japan but ‘explosive spending’ unlikely / Reuters
“Chinese group tours are back in Japan but anyone banking on them arriving in droves and splashing around cash like they did before the pandemic is likely to be disappointed.”
Hong Kong ban on Japanese seafood from 10 areas to come into effect at midnight – but residents can bring back a ‘small amount’ of goods from trips / SCMP (paywall)
“A Hong Kong ban on Japanese seafood imports covering live, chilled, dried and preserved goods, seaweed products, and sea salt from 10 prefectures takes effect in hours, but residents returning from the country will still be allowed to bring back a ‘small amount’ of such items as souvenirs, authorities have said.”
China tells Japan it will take ‘necessary measures’ if nuclear wastewater discharge plan proceeds / Caixin (paywall)
Hong Kong details import ban on some Japanese seafood due to Fukushima release / Reuters
“Hong Kong has set up a special government team to monitor and review an import ban on some Japanese seafood due to the country’s imminent release of treated radioactive water from the crippled Fukushima nuclear plant into the sea.”

SOCIETY AND CULTURE:

Music
As live music booms in China, disabled fans call for more inclusion / Sixth Tone
“The return of large-scale pop concerts has sparked huge excitement in China over recent months. But fans with disabilities still face serious barriers to accessing the events — and they’re calling for change.”

Northeast China’s culture revival
The missing link in Northeast China’s cultural revival / Sixth Tone
“Men and their stories have dominated northeastern China’s ongoing cultural revival. But what about the region’s women?”

Streaming
As viewers fret, China vows to streamline fees for OTT content / Sixth Tone
“In recent months, netizens have voiced frustration about subscribing to multiple video streaming platforms with overlapping content and additional fees for mobile subscriptions.”

Taobao’s “love counselors”
On Taobao, someone will yell at your hopeless romantic friend for a fee / Sixth Tone
“Apart from giving love advice, other services include simple chitchats and morning wake-up calls.”

Attempting to increase China’s birth rate
China’s Xi’an sends ‘sweet love’ messages to encourage babymaking / Reuters
“Family planning authorities in the historic Chinese city of Xi’an texted residents this week wishing them ‘sweet love, marriage and childbirth,’ and to create ‘good fertility,’ in a new move to boost the country’s flagging birth rate.”