Highlighted links for August 28, 2023

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

BUSINESS AND TECHNOLOGY:

Economic gloom or boom
What China’s economic woes may mean for the U.S. / NYT (paywall)
“At the moment, the implications for the United States are probably minor, given China’s limited role as a customer for American goods and the minor connections between the countries’ financial systems.”
How China made its housing crisis worse / NYT (paywall)
“China’s consumer safety net is full of holes, even when accounting for lower costs of living than in the United States. As growth has faltered in recent years, and now as a simmering real estate crisis ripples through the economy, China is seeing the consequences of its failure to establish robust social assistance programs.”
Western companies warn of hit from China’s sluggish rebound / FT (paywall)
“China’s gloomy business outlook threatens to have global repercussions as the world’s second-largest economy recovers weakly from strict Covid-era lockdowns, western companies have warned.”
Communist Party priorities complicate plans to revive China’s economy / WSJ (paywall)
“Ideology is driving China’s economic policy to a degree not seen since the country’s opening to the West nearly half a century ago, deterring its leaders from taking steps to spur the sputtering economy.”
China’s crisis of confidence in six charts / WSJ (paywall)
“Chinese households are losing faith in the nation’s future and could drag down the entire economy.”

Local government debt
The local government debt that threatens China’s economy / FT (paywall)
“The enormous amount of borrowing accumulated by China’s provinces, much of it through opaque local government financing vehicles — investment companies that raise debt and build infrastructure on behalf of local governments — has become a huge problem for the world’s second-largest economy. Increased tension between local and central governments over the debt comes as Beijing searches for new models of regional economic growth.”

Electric vehicles
Chinese ride-hailing group Didi to sell smart vehicle unit to Xpeng / FT (paywall)
“Chinese ride-hailing group Didi has curtailed its car-making ambitions with the sale of a business unit to electric-vehicle manufacturer Xpeng, as new entrants in the EV industry find it harder to gain production licenses from Beijing.”
Can anyone challenge China’s EV battery dominance? / FT (paywall)
“Given China’s lead, particularly in the lower-cost battery type that has come to dominate the local market despite its restricted driving range, the question is whether anyone can develop cheaper or better technology to loosen China’s grip.”
China’s BYD breaks into world’s top 10 automakers with EV push / Nikkei Asia (paywall)
“China’s BYD has joined the world’s 10 biggest car companies by sales for the first time, surpassing Mercedes-Benz Group and BMW in a sign of how electric vehicles are reshaping the auto industry.”

Erasing stigmas against China’s service industry
In Shanghai, a new major helps domestic workers battle stigma / Sixth Tone
“With an average age of 45, and women representing the majority of students, the first group of home economics majors graduated last month from the Shanghai Open University, signifying a pivotal shift in the domestic service industry.”

Chinese industrial firms continue to lose profits
China’s industrial profits extend slump into seventh month / Reuters
“Profits at China’s industrial firms fell 6.7% in July from a year earlier, extending this year’s slump to a seventh month with weak demand squeezing companies as a post-pandemic recovery faltered in the world’s second-biggest economy.”

Semiconductors
Revolutionizing the semiconductor industry: Chinese scientists unveil 12-inch wafer with groundbreaking 2D materials / SCMP (paywall)
“A breakthrough in the production of a new two-dimensional (2D) material, which is the thickness of about one atom, is set to pave the way for the transition to next-generation semiconductors.”

U.S.-China trade
Trump, Biden policies shifted trade from China at a cost, study shows / Reuters
“U.S. trade has shifted away from China due to policies enacted by the Biden and Trump administrations, but U.S. reliance on China-linked supply chains has not necessarily been reduced and consumers have faced higher costs, according to new research presented on Saturday at a Federal Reserve economic symposium.”
U.S., China express support for better trade conditions / Nikkei Asia (paywall)
“U.S. Commerce Secretary Gina Raimondo and her Chinese counterpart expressed support Monday for improving trade conditions as Raimondo began a visit to Beijing as part of U.S. efforts to improve chilly relations.”

AI
Scientist from Nanjing University takes up top role at international AI organization / SCMP (paywall)
“Chinese artificial intelligence (AI) professor Zhou Zhihua has been tapped to head up one of the world’s top AI academic associations, becoming the first person teaching at a mainland Chinese institution to take the helm since its founding more than 50 years ago in California.”
AI specialist SenseTime is laying off more workers, sources say / Caixin (paywall)
“Chinese artificial intelligence (AI) software developer SenseTime Group Inc. is again laying off workers as it struggles to stem a tide of red ink, current and former employees told Caixin.”
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.”

Factory strikes
Factory strikes flare up in China as economic woes deepen / Nikkei Asia (paywall)
“A flurry of worker protest videos have surfaced on Douyin, the Chinese version of TikTok, in recent months as slowing demand and supply chain shifts heap pressure on the country’s factories.”

Real estate and property development
China new home prices growth likely flat in 2023, dragging on economy: Reuters poll / Reuters
“China’s new home prices will likely show no growth this year, according to a Reuters poll, highlighting the intense pressure in the crisis-hit property sector that has put a choke-hold on the economy and left policymakers in a scramble to restore confidence.”
Opinion: China’s property crisis: how the commercial sector is bucking the trend / SCMP (paywall)
“It is striking, however, that much of the research and commentary on Chinese real estate disregards the commercial sector. While the residential market dwarfs its commercial counterpart and is one of the biggest vulnerabilities in the global economy, the commercial market was the second-largest in the world last year, according to data from MSCI.”

Real estate: Country Garden
China’s Country Garden says $100 billion Malaysia project on track / Reuters
“Embattled Chinese developer Country Garden (2007.HK) said on Monday its $100-billion project in Malaysia was proceeding as planned and it had sufficient assets, despite concerns about its financial strength amid debt woes.”
Malaysia’s domestic banks have limited exposure to Country Garden -cbank / Reuters
Clock ticking on Country Garden’s debt bomb / Caixin (paywall)

Real estate: Evergrande
Evergrande loses $2 bln in value as trade resumes; extends creditor voting / Reuters
“China Evergrande Group lost $2.2 billion, or 79% of its market value, on Monday after its shares resumed trading in a crucial step for the world’s most indebted property firm to restructure its offshore debt.”
China Evergrande shares fall 79% on first trading day since ban lifted / Nikkei Asia (paywall)
“China Evergrande Group shares plunged 79% on Monday, their first trading day following a suspension of more than 17 months.”

McDonald’s China
Trustar plans to raise fund to manage McDonald’s China stake -sources / Reuters
“Chinese private equity firm Trustar Capital is planning to raise a so-called continuation fund that would allow it to sell down its stake in McDonald’s China, two sources with knowledge of the matter said.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Climate change
China’s summer of climate destruction / BBC
“China’s summer this year has seen both extreme heat and devastating floods. And the flooding this time around has struck areas where such weather has been unheard of, with scientists — blaming climate change — warning that the worst is yet to come.”

U.S.-China scientific cooperation
Over 1,000 scientists urge Biden to renew U.S.-China cooperation deal / Nikkei Asia (paywall)
“Two Stanford University professors are leading an effort to persuade the U.S. administration to renew a scientific and technological cooperation agreement with China that is set to expire on Sunday.”

Fish farming
China plans to tighten environmental regulation of deep-sea fish farming / SMCP (paywall)
“China plans to strengthen environmental regulation of deep-sea fish farming as it seeks to expand the industry to meet the nation’s food security needs.”

Japan’s nuclear wastewater
Chinese backlash over nuclear wastewater continues with travel to Japan / Sixth Tone
“Japan was set to benefit from the return of Chinese tour groups to the country after years of pandemic restrictions. Now, holidaymakers are choosing other destinations instead, according to several travel agencies.”

Panda conservation
The villages caught up in China’s massive panda conservation drive / Sixth Tone
“China has created a giant new national park to protect its wild pandas. There’s just one problem: Tens of thousands of people already live there.”

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
With Xi Jinping facing challenges on multiple fronts, can China’s helmsman navigate through stormy seas? / SCMP (paywall)
“China’s norm-breaking president is facing increased competition with the U.S. on the world stage, and a struggling domestic economy at home.”
How China’s economic crisis serves as unparalleled trial by fire for Premier Li Qiang / SCMP (paywall)
“In his five months as premier, Lǐ Qiáng 李强 has been on the move both domestically and abroad, touting President Xí Jìnpíng’s 习近平 agenda while trying to empower the economy. But Li’s policy toolbox appears restrained, and it has China watchers wondering if more concrete actions will be taken to restore confidence in the economy.”
China’s Wang Yi pushes for multipolar world in return as foreign minister / Nikkei Asia (paywall)
“In the month since his unusual reappointment as China’s foreign minister, Wáng Yì 王毅 has been at the forefront of President Xi Jinping push to establish a rival diplomatic sphere to the U.S. and build a multipolar order.”

Censorship
Censors quash discussion of Singapore paper’s op-ed criticizing Xi Jinping / China Digital Times
“A Singapore paper’s publication of a blistering opinion piece criticizing Xi Jinping did not escape notice on Weibo, where netizens surreptitiously praised it.”
China has fallen into a psycho-political funk / FT (paywall)
“Sly, Soviet-style jokes are enjoying a subtle revival on Chinese social media platforms. Their art resides in being too obscure for censors to understand yet clear enough for cynics to chuckle at their mockery. Some are so esoteric that their satire is confirmed only by the censors’ decision to delete them.”

The joke, quoted in the China Digital Times link above:

“While out and about on vacation, I stubbed my toe on something. Upon closer inspection, I saw it was a bronze lamp. It was smudged, so I picked it up and gave it a good wipe — and out popped a genie! The genie said it could grant me any wish. ‘Is that so?’ I said. ‘Well then, could you make you-know-who you-know-what?’ No sooner had the words escaped my lips than the genie rushed over, clamped my mouth shut, and asked: ‘Are we even allowed to say that?’”

Corruption
Senior Beijing Winter Olympics official caught in anti-graft dragnet / Caixin (paywall)
“The head of China’s Winter Sports Management Center is being investigated for suspected corruption, the third official linked to the Beijing 2022 Winter Olympics caught by the country’s anti-graft crackdown on sports this year.”

China’s pursuit of dissidents
He fled China’s repression. But China’s long arm got him in another country. / NYT (paywall)
“Beijing has become more aggressive in its pursuit of dissidents overseas, as highlighted by the arrest of a Chinese rights lawyer in Laos.”

China’s legal system
The challenges of mounting a legal defense in China / Caixin (paywall)
“In recent years, Chinese public security and judicial organs infringing upon lawyers’ rights to defend their clients has become alarmingly frequent.”

Sexual abuse in Hong Kong
Police investigate whether 20 pupils sexually abused at Hong Kong tutorial centre after owner charged with indecently assaulting 2 brothers / SCMP (paywall)
“Hong Kong police have launched an investigation into whether 20 pupils at a private tutorial center were the victims of indecent assaults after the owner was charged with sex offenses against two young brothers.”

Terry Gou announces Taiwan presidential bid and other election news
Foxconn founder Terry Gou announces run for Taiwan presidency / Reuters
“Terry Gou (郭台銘 Guō Táimíng), the billionaire founder of major Apple supplier Foxconn, announced on Monday a bid to be Taiwan’s president in January elections, saying he wanted to unite the opposition and ensure the island did not become ‘the next Ukraine.’”
Foxconn’s Terry Gou will seek Taiwan presidency as an independent, but he’ll need signatures to run / AP
Foxconn founder Terry Gou launches bid for Taiwan presidency / FT (paywall)
Taiwan’s vice president accuses China of attempting to influence upcoming elections / AP
“Taiwan’s vice president and front-runner in upcoming presidential elections accused China on Friday of employing unfair trade practices that could be used to influence the voting.”

Taiwan and Chinese military activities
Japan scrambles jet to monitor Chinese military drone near Taiwan / Reuters
“Japan’s defense ministry said on Monday it scrambled a fighter jet to monitor a Chinese BZK-005 military drone spotted flying between Japan’s westernmost Yonaguni island and Taiwan in the morning.”
Taiwan reports combat drone as China military activities continue / Reuters
“Taiwan’s defense ministry said on Saturday morning that over the past 24 hours it had detected 20 Chinese air force planes entering the island’s air defense zone, including a combat drone that flew along Taiwan’s Pacific east coast.”
Taiwan reports combat drone as China military activities continue / Nikkei Asia (paywall)
“Taiwan’s Defense Ministry said on Saturday morning that over the past 24 hours it had detected 20 Chinese air force planes entering the island’s air defense zone, including a combat drone the flew along Taiwan’s Pacific east coast.”

Taiwan-China trade and travel
Taiwan resumes mainland China business travel in first step toward reopening, but ‘reciprocity’ still needed from Beijing / SCMP (paywall)
“Taiwan resumed accepting entry permit applications from mainland Chinese business people on Monday, but say ‘reciprocity’ is needed from Beijing to expand tourism measures, which are seen by some as too weak to bolster the sector on the island.”

South China Sea
China’s ‘aggressive behavior’ in South China Sea must be challenged, U.S. Navy official says / Reuters
“China’s ‘aggressive behavior’ in the South China Sea, including the use of water cannons by its coast guard against a Philippine vessel, must be challenged and checked, the commander of the U.S. Navy’s Seventh Fleet said on Sunday.”

U.S.-China competition and tensions
U.S. and China agree to export control information dialogue / Reuters
“The United States and China have agreed to launch an export control enforcement information dialogue and a new formal working group on commercial issues, the U.S. Commerce Department said on Monday, giving Beijing a potential forum to express concerns.”
Raimondo: crucial U.S., China have stable economic relationship / Reuters
“U.S. Commerce Secretary Gina Raimondo opened talks with Chinese government officials on Monday, saying it is ‘profoundly important’ for the world’s two largest economies to have a stable economic relationship.”
U.S.-China talks: Gina Raimondo says economic stability in relations is ‘what the world expects from us’ / SCMP (paywall)
U.S. will not compromise with China on national security, says commerce secretary / FT (paywall)
U.S. commerce chief begins China trip with focus on chips, AI / Nikkei Asia (paywall)
U.S. commerce secretary faces a wide range of issues in China / NYT (paywall)
Raimondo heads to China to both promote trade, and restrict it / NYT (paywall)
Gina Raimondo says China visit aimed at protecting U.S. economic interests / WSJ (paywall)

Japan
Japan’s fishing industry reels under China’s Fukushima embargo / Caixin (paywall)
“Japan’s fishing industry is getting hit with falling prices and growing uncertainty after the Chinese government imposed a ban on the country’s marine products in response to Japan’s decision to release wastewater from the Fukushima nuclear site into the Pacific Ocean.”

Australian citizen in detention in China
Friends fear for health of Australian writer detained in China / Reuters
“Friends of detained Australian writer Yáng Héngjūn 杨恒均, put on trial in Beijing two years ago on undisclosed national security charges, say they fear for his health amid delays in a verdict in his case.”
Chinese Australian writer fears dying in Beijing detention after being diagnosed with a kidney cyst / AP

Australia and China’s economy
Australia concerned about China economy, monitoring ‘very closely’ / Reuters
“Australian Treasurer Jim Chalmers said on Sunday the government was closely watching China amid ‘concerning’ signs of economic weakness that could weigh on Australia’s economy.”

Canada and climate change talks
Canadian minister makes rare China trip for talks on climate, biodiversity / Reuters
“Canada’s Environment Minister Steven Guilbeault on Saturday leaves for Beijing to join talks on fighting climate change and preserving biodiversity, the first Canadian minister to go to China in four years.”
As China hosts Canada’s climate minister, hopes of lowering diplomatic temperatures remain dim / SCMP (paywall)
“The first visit to China in four years by a Canadian cabinet minister could be the latest bid for improved ties, but chances of a major rapprochement are slim, while the risk of confrontation remains high, Chinese observers said.”

Pacific islands
Chinese police experts arrive in Vanuatu amid political crisis / Reuters
“China has sent police experts and equipment to the Pacific nation of Vanuatu in the midst of a political crisis that saw the Supreme Court rule the prime minister lost a no-confidence vote in parliament.”

Singapore
China says will conduct joint military training with Singapore in coming weeks / Reuters
“China will conduct joint military training with Singapore from end-August to mid-September based on their annual plans, the Chinese defense ministry said in a statement on Monday.”

India
Chinese minister says India free to join RCEP trade bloc / Reuters
“India is free to join the Regional Comprehensive Economic Partnership (RCEP), China’s Vice Commerce Minister Wang Shouwen said on Friday in New Delhi, adding that it would boost trade between India and China which is growing ‘very fast.’”
India’s Modi and Chinese President Xi Jinping agree on efforts to de-escalate border tensions / AP
“India’s prime minister and China’s leader agreed Thursday to intensify efforts to de-escalate tensions at the disputed border between them and bring home thousands of their troops deployed there, according to an official from India’s foreign ministry.”

Russia
Russian ships return from joint Pacific patrolling with Chinese ships / Reuters
“A detachment of Russia’s navy warships returned from more than three weeks of joint-patrolling of the Pacific Ocean with Chinese navy ships, the Russian Interfax news agency reported on Sunday.”
Russia hopes to raise fish, seafood exports to China after Japan ban / Reuters
“Russia hopes to increase its marine product exports to China in the wake of China’s ban on Japanese seafood imports after the release of treated radioactive water from the wrecked Fukushima nuclear power plant into the sea.”

SOCIETY AND CULTURE:

Isabel Crook
Isabel Crook, 107, dies; her life in China spanned a century of change / NY Times (paywall)
“Isabel Crook, a China-born daughter of Canadian missionaries who became one of her adopted country’s most celebrated foreign residents, beloved as an educator, anthropologist and articulate advocate for the Communist state, died on Sunday in Beijing. She was 107.”
Isabel Crook, anthropologist and chronicler of China’s communist revolution, 1915-2023 / FT (paywall)

Mandarin
Why fewer university students are studying Mandarin / The Economist (paywall)
“Learning the difficult language does not seem as worthwhile as it once did.”

Movies
As Nolan arrives, Chinese fans react to ‘Oppenheimer’ release / Sixth Tone
“For devoted Chinese fans of Christopher Nolan, his latest film about the invention of the atomic bomb is another masterpiece. But can the film overcome its controversial subject matter and reach a broad audience in China?”

Games
U.S.-Sino tensions help spawn China card game craze / Reuters
“China’s bankers and business executives have become increasingly reliant on domestic capital in recent years as foreign funding has dried up, but a popular way to unlock that cash may very well involve ‘throwing eggs.’”

China’s marginalized communities
Witches and ‘poisonous cats’: A scholar’s search for society’s scapegoats / Sixth Tone
“Wang Mingke has spent his life studying marginalized communities in China’s far west. That work has helped him better understand everything from anti-Asian hate to social media polarization.”