Highlighted links for September 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:

Economic gloom or boom
Policymakers see darker days ahead in China as growth sputters / Reuters
“Policymakers expect persistently slower growth in China, perhaps even more sluggish than current consensus estimates, seeing its transition from an infrastructure- and investment-led economy to becoming consumption-driven as ‘difficult.’”
Does Beijing care that China’s economy is stagnating? / Nikkei Asia (paywall)
“China’s economic downturn reached a new milestone of sorts with the release last month of economic data for July. This showed consumer prices falling 0.3% from a year earlier, sparking worries that weak demand could begin to entrench deflationary expectations.”
The great Chinese flow reversal / FT (paywall)
“Back in the halcyon days of…a few years ago, one of the biggest global investment themes was how Chinese financial markets were becoming increasingly investible and attractive for international investors.”

Banking
China’s major banks to lower rates on existing first-home mortgages / Reuters
“Five of China’s major state banks said on Thursday they will start to lower interest rates on existing mortgages for first-home loans, part of a series of support measures announced by Beijing in recent weeks.”

Related, from last week: China takes aim at real estate crisis with new measures to boost economy / CNN

U.S.-China tech war
SK hynix opens probe into use of its chips in Huawei’s new phone / Korea Times
“SK hynix said Thursday it began an internal investigation into how its memory chips ended up in a new smartphone made by Huawei Technologies.”
Chinese breakthrough in gallium oxide semiconductor may deliver edge amid U.S. export ban / SCMP (paywall)
“Chinese scientists have achieved a breakthrough that could boost the country’s production of a new-generation semiconductor the U.S. has tried to ban from China because of its use in sectors such as defense and crucial infrastructure.”
U.S. lawmaker calls for end to all tech exports to Huawei, SMIC after chip breakthrough in new smartphone / SCMP (paywall)
“The U.S. Commerce Department should end all technology exports to Huawei Technologies and China’s top semiconductor firm following the discovery of new chips in Huawei phones that may violate trade restrictions, the chair of the House of Representatives’ committee on China said on Wednesday.”
Huawei phone is latest shot fired in the U.S.-China tech war / NYT (paywall)

China bans iPhone for state employees
China moves to widen state employee iPhone curbs -sources / Reuters
“China has in recent weeks widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple mobiles at work, two sources familiar with the matter said.”
Apple faces new challenge in China as Huawei releases high-speed phone / WSJ (paywall)
“With 5G-like speeds, the device creates buzz among Chinese fans after Beijing bans the use of iPhones at some government offices.”

Academic database fined for illegally collecting user’s data
China’s controversial academic database fined $6.8 million for illegal data collection / Sixth Tone
“A yearlong investigation by China’s internet watchdog has concluded that CNKI illegally collected users’ personal information.”

Automobile industry
China is flooding the world with cars / NYT (paywall)
“Even as China’s other exports falter, its carmakers are seeing big increases in overseas sales, mainly for gasoline-powered models.”

Rare earths
Chinese rare earth prices hit 20-month high on Myanmar supply worry / Reuters
“Chinese rare earth prices jumped to their highest in 20 months, as mining suspension in major producer Myanmar sparked stockpiling ahead of the peak consumption season, analysts said on Thursday.”

Country Garden
Default dodged, but Country Garden’s upcoming debt payments stir worries / Reuters
“Creditors of Country Garden Holdings are doubtful the Chinese developer will be in a position to service debt that will come due later this year without liquidity support, after it averted a catastrophic default this week at the last minute.”

Tencent
China’s Tencent debuts large language AI model, says open for enterprise use / Reuters
“Tencent Holdings said on Thursday companies could now use its large language artificial intelligence (AI) model ‘Hunyuan’ as it premiered the much-awaited product amid a race by tech firms race to become China’s AI champion.”
Tencent declares AI ‘war’ on Chinese rivals / FT (paywall)
“There are more than 130 large language models in China,” Tencent vice-president Jiǎng Jié 蒋杰 told a launch event in the southern city of Shenzhen. “A war of a hundred models has begun.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Extreme weather
Southern China drenched, many flights canceled as rain storms pound region / Reuters
“The remnants of Typhoon Haikui drenched southern China for a third day since making landfall, and airports in Guangdong province canceled hundreds of flights due to stormy weather on Thursday though winds had weakened.”
Floods from Tropical Storm Haikui kill 2 and displace thousands in China’s Fujian province / AP
“At least two people have been killed and thousands forced to evacuate by floods brought by Tropical Storm Haikui in China’s southeastern coastal Fujian province, local authorities reported Wednesday.”

Renewable energy
China’s largest green hydrogen mega project hints at vast potential / Caixin (paywall)
“A mega solar-to-hydrogen factory has been commissioned in China, marking a milestone for the country’s — and potentially the world’s — effort to produce more green hydrogen, a fuel seen as key for slashing global greenhouse gas emissions.”

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
China names veteran economic planner Yang Yinkai to Communist Party’s top financial policy body / SCMP (paywall)
Yáng Yinkǎi 杨荫凯, a “veteran state economic planner has been named to a key position in China’s ruling Communist Party’s top policy coordination body for finance and economic affairs in another career move that appears to mirror the trajectory of his boss Vice-Premier Hé Lìfēng 何立峰.”

Reactions against new repressive laws
Backlash in China against draft law banning items that harm ‘national spirit’ / Reuters
“Proposed changes to a Chinese public security law to criminalize comments, clothing or symbols that ‘undermine the spirit’ or ‘harm the feelings’ of the country have triggered the concern of legal experts, who say the amendments could be used arbitrarily.”
Public security penalty expansion risks ‘abuse of power,’ legal experts say / Caixin (paywall)
“China’s top legislature is seeking public comment on draft public security law revisions that expand the scope of punishment for a wide range of behaviors, including cheating on exams, organizing pyramid schemes and unauthorized drone flights.”

ASEAN
China Premier Li met Vietnam PM at ASEAN summit / Reuters
“China’s Premier Lǐ Qiáng 李强 met with Vietnamese Prime Minister Pham Minh Chinh on the sidelines of the ASEAN summit in Indonesia, the Chinese foreign ministry said on Thursday.”
South Korea’s Yoon meets China Premier Li at ASEAN summit / Reuters
“South Korean President Yoon Suk Yeol met with China’s Premier Li Qiang on the sidelines of an ASEAN summit in the Indonesian capital of Jakarta on Thursday, just hours after Yoon called for a rules-based maritime order in the South China Sea.”
China’s premier is on a charm offensive as ASEAN summit protests Beijing’s aggression at sea / AP
“In talks with Southeast Asian leaders Wednesday in the Indonesian capital, Chinese Premier Li Qiang underscored his country’s importance as the world’s second-biggest economy and as the top trading partner of the region.”
China wants an East Asia supply chain ‘matchmaking conference’ next year / Caixin (paywall)
“Premier Li Qiang has proposed a conference next year for East Asian economies to discuss further integrating regional supply chains to make them more efficient and resilient while leveraging their comparative advantages.”

Belt and Road Initiative
China says 90 countries have confirmed attendance for Belt and Road Initiative / Reuters
“China said on Thursday that 90 countries have confirmed attendance for its Belt and Road Initiative conference being held in October.”
China’s Belt and Road at crossroads as more loans turn sour / Nikkei Asia (paywall)
“A decade since China first proposed the Belt and Road Initiative, China’s aggressive investments around the world have helped expand both trade and its international influence.”

South China Sea
South China Sea row affects Philippine interests and is not solely a U.S.-China issue, Marcos Jnr says / SCMP (paywall)
“The Philippines, facing a new peak in tensions with Beijing over the South China Sea dispute, this week sought to emphasize to Asean counterparts that it viewed the row as a matter of core national interest, but observers say it was unlikely that the rest of the region would echo such rhetoric.”

North Korea
Chinese delegation led by vice premier to visit North Korea, state media says / Reuters
“A Chinese Communist Party and government delegation headed by Vice Premier Liú Guózhōng 刘国中 will visit North Korea to take part in the celebration of the country’s founding day later this week, state media KCNA reported on Thursday.”
Chinese Vice-Premier Liu Guozhong’s visit to North Korea this week is second Beijing delegation to Pyongyang in months / SCMP (paywall)

Japan
U.S.’s McCarthy says China’s stance on Fukushima discharge ‘unfair, ‘false’ / Reuters
“U.S. House of Representatives Speaker Kevin McCarthy called China’s position on the release of treated radioactive water from the Fukushima nuclear power plant ‘unfair’ and ‘false’ during a visit to Tokyo on Thursday.”

Australia
China, Australia hold first high-level dialogue in three years in Beijing / Reuters
“China poses no threat to Australia, and will not do so in future, Lǐ Zhàoxīng 李肇星, a former foreign minister, said on Thursday, as the two nations resumed a high-level dialogue track after a break of three years.”
Australia and China open their first high-level dialogue in 3 years in a sign of a slight thaw / AP
Australian PM to visit China soon as both sides hail progress / Reuters
“Australia and China have made progress in returning to ‘unimpeded trade’ and more is needed, Australian Prime Minister Anthony Albanese said on Thursday as he met Chinese Premier Li Qiang at a regional summit in Indonesia.”
Australian PM to visit China this year after ‘progress’ on ties / Nikkei Asia (paywall)

Italy
China keen to work with Italy on trade despite Belt and Road misgivings / Reuters
“China remains willing to work with Italy to improve trade and investment ties, the commerce ministry said on Thursday, even as the only Group of Seven power to join the Belt and Road Initiative (BRI) considers quitting the Beijing-led scheme.”

Africa
China, U.S. pledge millions in extra help for Africa at climate summit / SCMP (paywall)
“China will connect 50,000 poor African families using solar energy and provide satellites for early warnings of floods and drought, while the U.S. has promised another US$30 million to accelerate food security efforts across the continent.”

Laos
In a post-COVID Laos, China’s influence grows ever larger / Sixth Tone
“A new $5.5 billion railway is bringing a flood of Chinese investment to the Lao capital of Vientiane. After COVID-19, it’s desperately needed.”

SOCIETY AND CULTURE:

Feminism
China’s demure “good for marriage” trend sparks feminist furore / Reuters
“A fashion trend in China dubbed ‘good for marriage’ has generated a social media storm, with scores of women saying the demure, feminine style plays to gender stereotypes and discourages financial independence.”

How a Tiananmen survivor made billions
No other investor has a life story quite as unbelievable as Li Lu / FT (paywall)

Lǐ Lù’s 李录 “background made him a unique figure in U.S. investment circles — the Chinese dissident who was making a fortune by adopting western capitalist values. The pivot from ‘freedom fighter to Manhattan yuppie’ as one newspaper put it, was bound to raise eyebrows.”

Hong Kong’s aging infrastructure
Hong Kong’s crumbling old flat tenants left in the lurch as developers and authorities go slow during property downturn / SCMP (paywall)
“Some of the old and decaying blocks in Hong Kong’s To Kwa Wan district are so run-down that residents find it tough to find tradesmen to do repairs.”

Elderly thrill seekers
Tianjin’s ‘diving grandpas’ / Caixin (paywall)
“The group of internet-famous aging divers, who made Tianjin’s Shizilin Bridge their stage for the sport, have called it quits due to growing concerns about public safety.”

Music
Famous Taiwan rapper admits plagiarizing comic about depression / Sixth Tone
“The 2004 comic ‘Jumping Off a Building’ depicts a suicidal woman witnessing the sad lives of her neighbors as she falls to her death. MC HotDog, a famous Taiwanese rapper, has just admitted using the storyline in his new song without authorization.”