Highlighted links for August 24, 2023

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

BUSINESS AND TECHNOLOGY:

Yuan internationalization and de-dollarization
China capitalizes on US sanctions in fight to dethrone dollar / FT (paywall)

With “the expansion of U.S. economic sanctions and the explosion of new technologies for international payments, cracks are starting to appear in the dollar’s once-impregnable position. And China, with its embrace of the digital renminbi, or e-yuan, and its drive to develop an alternative global payments system, is hoping to take advantage.”
China central bank boosts offshore bill sales to stabilize yuan, says ex-official / Reuters
“Increased yuan bill sales by China’s central bank in Hong Kong this week helped tighten liquidity in the offshore market to help stabilize the yuan by making it expensive for speculators to short the currency, according to a former central banker.”

Economic gloom or boom
Stimulus or bust: Investors staying out of China until the spending starts / Reuters
“Global investors fleeing China have one simple message for the country’s leadership: put prudence aside for a short while, and start spending big.”
Foreign investors’ China share sales hit record amid property woes / Nikkei Asia (paywall)
Opinion: Cost of falling prices in China greatly outweighs any benefits for rest of the world / SCMP (paywall)
Nicholas Spiro writes, “At the beginning of this year, many global policymakers worried that the abrupt reopening of China’s economy would boost demand to such an extent that it would pour fuel on the inflationary fire raging across the world.”
Opinion: China’s slowdown isn’t Xi’s biggest problem / Bloomberg (paywall)
“As concerning as the slowdown may be, however, its political repercussions should be manageable. The real threat to Xi’s hold on power is the other potential disaster looming in front of him and China: a financial meltdown.”

Local debt
Beijing warned opportunity costs are rising as it seeks comprehensive solution to local government crisis / SCMP (paywall)
“China is considering stronger measures to address risks from its local-government debt crisis, but opportunity costs are rising when it comes to curbing systemic risks in the state-dominated financial system, according to analysts.”
The local government debt that threatens China’s economy / FT (paywall)
China’s LGFV insiders say $9 trillion debt problem is worsening / Bloomberg (paywall)

Weak banks, corrupt banks
Opinion: Who has the weakest banks — the U.S. or China? / Bloomberg (paywall)
Shuli Ren writes: “The two governments are both addicted to debt. Lenders are just collateral damage.”
Former chief of Bank of Beijing out of touch as regulators probe dealings / Caixin (paywall)
“Yán Bīngzhú 闫冰竹, the powerful former chairman of Bank of Beijing Co. Ltd., has been out of contact amid swirling speculation that the veteran executive fell under investigation.”

China’s accounting rules
China’s new accounting rules on enterprise data resources to have ‘greater impact’ on Big Tech firms, telecoms network operators / SCMP (paywall)
“China’s efforts to promote the development of its digital economy are expected to receive a big boost next year, when an updated set of accounting rules allow companies to include data resources as either “intangible assets” or ‘inventories’ in their financial statements.”

China’s auto exports
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.”

AI
U.K. weighs inviting China to AI summit, but Japan favors G7 leadership / Nikkei Asia (paywall)
“The U.K. government is considering inviting China to an upcoming global summit on artificial intelligence, a proposal that has drawn opposition from Japan, sources said.”
Chinese investors needn’t fret over the AI ‘race’ / Caixin (paywall)
“Is China falling behind on AI? Doomsayers think so, claiming U.S. tech export restrictions and global chip competition hamper China’s Artificial Intelligence (AI) progress.”

Semiconductors
U.S. to extend China chip export waivers for Taiwan, Korea chipmakers / Nikkei Asia (paywall)
“The U.S. has decided to extend its one-year exemption allowing South Korean and Taiwanese chipmakers to continue bringing advanced semiconductor technology and related equipment into China, multiple industry sources told Nikkei.”

Real estate and property development
How China made its housing crisis worse / NYT (paywall)
“Years of inattention to building an adequate safety net for seniors, the jobless and others in financial stress have left Chinese consumers afraid to spend.”

Hong Kong’s falling exports
Hong Kong economic woes continue as exports fall 15th month in a row with a 9% decline / SCMP (paywall)
“Hong Kong exports stayed on a downward trend for the 15th month in a row with a fall of more than 9 per cent year on year in July as the contraction in trade with mainland China, the United States and Europe continued.”

Hong Kongers turn to the mainland to stretch their dollar
Penny-wise Hongkongers ditch city to shop, dine and play in Shenzhen, leaving local businesses high and dry / SCMP (paywall)
“Hong Kong has reopened fully to visitors, but the tourism industry is unhappy that city residents are flocking across the border for short breaks. In the first of a two-part series, the Post finds out what Hongkongers spend on when they visit Shenzhen.”

China’s Universal Resort
Beijing plans to kick off second phase of Universal Resort within 3 years, Beijing Daily reports / Reuters
“Beijing plans to kick off building the second phase of Universal Resort within three years, Beijing Daily reported Thursday, citing an action plan to push for high-quality development of China’s capital from 2023 to 2025.”

ByteDance
TikTok shop on track to lose more than $500 million in U.S. this year / The Information (paywall)
“TikTok Shop, the app’s nascent shopping service, is expected to lose more than $500 million in the U.S. this year, according to a person with direct knowledge of the matter.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Climate change
China, Australia raise climate change, security at Pacific leaders summit / Reuters
“Australia and China pledged more support for the Pacific Islands in their fight against climate change, as the leaders of four nations debate declaring the strategic region ‘neutral’ as China and the United States jostle for influence.”

China-U.S. scientific collaboration
China-based neutrino experiment recognised with prestigious European award for paving the way in particle physics / SCMP (paywall)
“The Daya Bay collaboration, the biggest joint effort between China and the United States in basic research, received the 2023 High Energy and Particle Physics Prize from the European Physical Society during its annual conference in Hamburg, Germany, on Monday.”
U.S. wants 6-month extension to science agreement with China / Nikkei Asia (paywall)
“The United States is seeking a six-month extension to a science and technology agreement with China so that it can undergo negotiations with Beijing to “amend and strengthen” the landmark deal, the State Department said on Wednesday.”

Research development
Opinion: China’s quest for self-reliance risks choking innovation / FT (paywall)
Yu Jie writes, “China’s ability to make a major scientific breakthrough has proved equally dependent on whether researchers have the space to think critically and creatively.”

Fukushima water released
China condemns release of Fukushima water into the Pacific Ocean / Reuters
“China again voiced strong opposition and condemned Japan’s decision to start releasing treated radioactive water from the Fukushima nuclear plant into the Pacific Ocean, the Chinese foreign ministry said on Thursday.”
China bans seafood from Japan after the Fukushima nuclear plant begins its wastewater release / AP
Chinese seafood traders angry, anxious as Japan begins Fukushima wastewater release / Reuters
China bans Japanese seafood over Fukushima nuclear waste water release / SCMP (paywall)
China retaliates after Japan starts release of Fukushima water / FT (paywall)
China suspends all seafood imports from Japan on Fukushima discharge / Nikkei Asia (paywall)
Xi’s green push fuels China’s opposition to Fukushima water release / Nikkei Asia (paywall)
“Behind China’s staunch opposition to the release of treated wastewater from the Fukushima Daiichi nuclear power plant are increasingly vocal pro-environment leaders who have gained prominence under President Xí Jìnpíng 习近平.”
China bans Japanese seafood as nuclear wastewater released / Bloomberg (paywall)
China suspends imports of all Japanese aquatic products / Caixin (paywall)
Chinese consumer backlash beckons as Japan releases nuclear wastewater / Sixth Tone

China’s moon rover
China and India’s moon rovers take different paths on historic missions / Bloomberg (paywall)

Food security
China to expand GM corn, soybeans trials amid rising food-security focus as Beijing seeks to dispel public safety concerns / SCMP (paywall)
“China will expand a trial of genetically modified (GM) corn and soybeans to 20 counties across five provinces, with food security increasingly becoming a top priority for Beijing.”

Coal
Another deadly coal accident in China threatens output growth / Caixin (paywall)
“Fatal accidents continue to undermine China’s coal industry, with the latest incident in the northwestern province of Shaanxi set to impede plans to raise production if authorities once again ramp up scrutiny of mine safety.”

Renewable energy
China to set up solar and wind recycling system, key green technologies to get more support / Caixin (paywall)
“China — the world’s largest manufacturer and user of renewable energy equipment — plans to set up a recycling system for wind turbines and solar panels to prepare for their upcoming ‘mass retirement.’”

POLITICS AND FOREIGN AFFAIRS:

Chinese dissident takes jet ski to South Korea
Escape China by jet ski? A dissident is said to have planned it for years / NYT (paywall)
“Officials in South Korea aren’t saying who crossed 200 miles of ocean to reach its shores. But people who know Kwon Pyong say it wasn’t his first audacious move.”

China’s legal system
Why fewer criminal appeals cases are getting heard in China / Caixin (paywall)
“There are several reasons for this decline. Ambiguity in the law, which grants judges wide discretionary power, along with personnel reforms in the judiciary that left a limited number of judges handling a growing number of cases, have contributed to the drop in appeals hearings, experts said.”

U.S. arms sale to Taiwan approved
US approves new $500M arms sale to Taiwan as tension from China intensifies / AP
“The Biden administration has approved a $500 million arms sale to Taiwan as it ramps up military assistance to the island despite fervent objections from China.”
US agrees to sell military aircraft tracking system to Taiwan / FT (paywall)
U.S. eyes sale of F-16 search and track systems to Taiwan / Nikkei Asia (paywall)

Taiwan opens doors to Chinese travelers
Taiwan to allow Chinese tourists, business people to visit again / Reuters
“Taiwan’s government on Thursday said it will from this month allow Chinese tourists and business people to visit again as it seeks to resume exchanges halted by the COVID-19 pandemic and extend an olive branch to Beijing.”

Taiwan’s tensions with China
China squeezes Taiwan with military drills, trade threats, mango ban / Nikkei Asia (paywall)
“China is making full use of its economic and military playbook to scare the Taiwanese electorate ahead of January’s presidential election on the democratic island, with analysts pointing to drills and trade sanctions as an attempt to influence the race.”
Taiwan president requests another jump in military spending to deter China / WSJ (paywall)
“​​One year after pushing through the biggest increase in Taiwan’s military budget in recent memory, the island democracy’s outgoing president ordered another substantial jump in defense spending this week as she tries to step up deterrence against China before leaving office.”

Taiwan replaced with China in Central American Parliament
Taiwan withdraws from Central American Parliament after vote in favor of Beijing / SCMP (paywall)
“Taiwan has withdrawn from the Central American Parliament after the six-member body voted to oust Taipei so that Beijing can take its place as a permanent observer.”

BRICS
Expansion will bring new vitality to BRICS – China’s Xi / Reuters
“The expansion of BRICS will inject new vitality into the group’s cooperation mechanism, Chinese President Xí Jìnpíng 习近平 said on Thursday before also announcing an upcoming launch of a $10-billion special fund aimed at bolstering global development.”
BRICS to add Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and UAE as new members / SCMP (paywall)
“Brics members have agreed to admit six more countries – Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates – to the bloc, strengthening the group as it faces a world order dominated by the United States and its Western allies.”
BRICS leaders invite 6 nations including Saudi Arabia to join bloc / FT (paywall)
BRICS invites 6 countries including Saudi Arabia, Iran into group / Nikkei Asia (paywall)
Xi Jinping in whirlwind of meetings with Global South leaders on BRICS sidelines / SMCP (paywall)

U.S.-China competition and tensions
China looks forward to discussions with US commerce chief as trade flows slow / Reuters
“China is looking forward to in-depth discussions with the United States on resolving economic and trade issues when its commerce secretary, Gina Raimondo, visits next week, China’s commerce ministry spokesperson said on Thursday.”
Gina Raimondo’s ‘reality check’ in China seen paving way for Xi-Biden meeting as tensions persist / SCMP (paywall)
“Unlike three other high-level US officials to visit China this summer, the commerce secretary will stop in Shanghai as she conducts an economic assessment and tries to shore up business relations.”
Republican candidates talk ‘tough on China’ as Trump skips first debate / SCMP (paywall)
“Candidates for the 2024 Republican US presidential nomination invoked China in the context of energy, fentanyl, Ukraine, and technological competition in their first debate on Wednesday evening, but offered little clarity on how they would tackle the tricky questions regarding Washington’s engagement with Beijing.”
China capitalizes on US sanctions in fight to dethrone dollar / FT (paywall)
“Beijing uses developing world chagrin over Washington’s weaponisation of greenback to push global renminbi.”
China casts CIA as villain in new anti-spying push / WSJ (paywall)
“State-security ministry accuses two Chinese citizens of spying for U.S. as espionage fears grip both countries.”

Chinese dissidents under risk in Southeast Asia
China critics chased in Mekong as Beijing’s security clout grows / Nikkei Asia (paywall)
“Chinese dissidents face growing risk in Laos and throughout Southeast Asia as Beijing increases its security posture beyond its borders to silence critics.”

SOCIETY AND CULTURE:

Livestreaming
In China, AI clones are putting human livestreamers out of work / Sixth Tone
“In recent years, China has seen the rise of artificial intelligence-generated pop stars, fashion models, and even romantic partners. Now, AI is disrupting yet another field: the country’s massive livestream industry.”

Chinese youth are celebrating quitting their jobs
Young people in China throw celebratory ‘job-quitting’ parties as long hours, low pay and bullying take toll / SCMP (paywall)
“Young workers in China have begun treating job resignations like wedding celebrations as generational culture wars over work-life balance continue in the country.”

Tourism
Chinese tourists are back — just not in the U.S. / Nikkei Asia (paywall)
“Roughly 3 million travelers from China visited the U.S. in 2019, with about a third of them visiting Los Angeles, their top destination in the country.”

Comedy
What’s so funny about China’s Rust Belt? / Sixth Tone
“A short history of the country’s unlikely comedy capital.”

Family relations
To stop teen from moving out, Chongqing mom flees with school papers / Sixth Tone
“The woman was opposed to her daughter studying in Beijing. She returned 11 days later after fortunetellers assured her that the move would prove auspicious for her daughter.”