Highlighted links for September 20, 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
Chinese officials voice faith in economy and keep interest rates steady as forecasts darken / AP
“Leading Chinese planners voiced confidence on Wednesday in the outlook for the world’s second-largest economy, holding key interest rates steady amid signs of improvement in some areas such as services.”
China should step up policy support for economy- ex-PBOC head / Reuters
“China should step up policy support for the economy while promoting reforms to help achieve the annual growth target of around 5%, Yì Gāng 易纲, former governor of the People’s Bank of China (PBOC), said in remarks published on Wednesday.”
China keeps benchmark rates unchanged as economy finds footing / Reuters
“China kept benchmark lending rates unchanged at a monthly fixing on Wednesday, in line with expectations, as fresh signs of economic stabilization and a weakening yuan reduced the need for immediate monetary easing.”
Opinion: Is China heading for a Japan-like period of economic stagnation? / Caixin (paywall)
Vincent Chan writes: “Since last year, Chinese people have been socking more of their savings away in banks, but their spending has remained weak. That, along with a sharp decline in property sales, has investors questioning whether China has entered a prolonged period of economic stagnation similar to what Japan suffered in the 1990s.”
China may dodge deflation, after all / WSJ (paywall)
“But it will probably be a near miss, and economic data still hints at a bottom rather than a strong rebound.”

Local debt
China’s trillion-dollar local government ‘hidden debt’ dilemma / Caixin (paywall)
“China’s financial system remains plagued by trillions of dollars in local governments’ hidden debt, as they have long turned to off-the-books borrowing to plug funding shortfalls, which have grown significantly due to the pandemic and property crisis.”

Foreign companies in China
Foreign firms in China say vague rules and tensions with Washington hurting business, surveys show / AP
“Foreign companies operating in China say tensions with Washington over technology, trade and other issues and uncertainty over Chinese policies are damaging the business environment and causing some to reassess their plans for investing in the giant market.”

Semiconductor production
China exported no germanium, gallium in Aug after export curbs / Reuters
“China’s exports of germanium and gallium products in August plunged, customs data showed on Wednesday, after Beijing implemented new export controls on the two chipmaking metals.”
Huawei unit ships Chinese-made surveillance chips in fresh comeback sign / Reuters
“A Huawei Technologies unit is shipping new Chinese-made chips for surveillance cameras in a fresh sign the Chinese tech giant is finding ways around four years of U.S. export controls, two sources briefed on the unit’s efforts said.”

Foreign ports used as intelligence-gathering outposts
How China uses shipping for surveillance and control / Foreign Policy (paywall)
“While maritime embargoes during wartime have been a staple of conflicts since the days of the Spanish Armada, today’s warfare won’t require a flotilla to keep essential goods from reaching their destination. Instead, adversaries can paralyze shipping by weaponizing information.”

Electric vehicles
Opinion: BYD: China’s cheap EVs charge up Japanese market / FT (paywall)
“In Japan, loyalty to local automakers keeps sales ticking up. Over 80 per cent of the market is dominated by domestic companies. But that stronghold is about to be undone by the electric revolution.”
China’s BYD takes on Toyota, Nissan in Japan’s small-car market / Nikkei Asia (paywall)
BYD launches hatchback in Japan to crack tricky EV market / Caixin (paywall)

Regulations for power post markets
China’s new electricity spot market rules lay groundwork for unified standard / Caixin (paywall)
“China has published its first national rules for electricity spot markets as the country continues its drive toward the use of renewable energy and building a national power market.”

More flights between mainland and Hong Kong
Hong Kong’s Cathay Pacific to add flights to mainland China as airline carries more than 11 million passengers to hit 46% of pre-pandemic levels / SCMP (paywall)
“Hong Kong’s Cathay Pacific Airways said it would add extra flights to mainland China as it announced on Wednesday that it had carried more than 11 million passengers in the first eight months of the year and reached 46 per cent of pre-pandemic levels.”

Huawei
Huawei heir-apparent Meng Wanzhou sets AI as the Chinese giant’s business focus in the next decade despite US sanctions / SCMP (paywall)
“Mèng Wǎnzhōu 孟晚舟, rotating chairwoman of U.S.-sanctioned Huawei Technologies, said the telecoms giant would embrace a new ‘all intelligence’ strategy to transform itself into a key provider of computing power to support China’s artificial intelligence (AI) development.”

Huawei makes processor breakthrough in flagship smartphone / FT (paywall)
“Huawei is emulating Apple in developing the processors that power its latest smartphone, a breakthrough that will help the Chinese company to reduce its reliance on foreign technology as it confronts US sanctions.”

SCIENCE, HEALTH, AND ENVIRONMENT:

COVID-19 and lab leak theory
Opinion: The CIA politicizes intelligence on China and COVID / WSJ (paywall)
“A whistleblower says that analysts who favored the lab-leak theory were paid to change positions.”

Extreme weather
China braces for more harsh weather after tornado kills 10 / Reuters
“Chinese weather officials stepped up warnings about heavy rain and strong winds in several regions, state media said on Wednesday, a day after a violent tornado wreaked havoc in the eastern province of Jiangsu, killing 10 people.”
Tornadoes kill 10 in coastal Chinese province / Caixin (paywall)
“Ten people have died after two tornadoes ripped through East China’s Jiangsu province, state media reported Wednesday.”

Star systems
Inspired by writer Liu Cixin, Chinese scientists spot signals from real-world ‘three-body’ star system / SCMP (paywall)
“Scientists in China have revealed unprecedented details of a young triple-star system, shedding light on how such complex and chaotic – yet common – systems behave in the universe.”

Shenzhen wants Hong Kong tourists
Shenzhen looks to attract more Hong Kong, Macao visitors — and their cash / Caixin (paywall)
“Shenzhen has launched a bid to attract more residents from neighboring Hong Kong and Macao by making it easier for them to venture north and spend their hard-earned cash on not just tourism and leisure, but a broader range of sectors including health care and even car maintenance.”

POLITICS AND FOREIGN AFFAIRS:

China’s plan to assimilate Tibetans

Opinion: The one million Tibetan children in China’s boarding schools / NYT (paywall)
“My young relatives, who were 4 and 5 years old at the time, had just enrolled in a boarding preschool that the Chinese government had established in my hometown, Kanlho, a semi nomadic region in the northeast corner of the Tibetan plateau. Their new school was one of many — I have personally tracked about 160 in three Tibetan prefectures alone — and part of Beijing’s growing network of preschools in which Tibetan children are separated from their families and communities and assimilated into Chinese culture.”

Xi’s common prosperity
In Xi’s China, ‘common prosperity’ now means lowering expectations / World Politics Review
“China’s economic troubles have been all over the news these past few months, as its long-awaited post-pandemic recovery hasn’t materialized.”

Public security
China’s police chief calls for global cooperation on public security at forum / SCMP (paywall)
“China’s top police chief has called on world powers to strengthen cooperation on public security, as Beijing seeks to expand its influence in global governance.”

BRI
Does the BRI increase China’s influence? / Foreign Policy (paywall)
“Beijing’s extensive infrastructure projects don’t seem to be translating into political clout.”

Hong Kong
China says Britain’s plans to disrupt Hong Kong ‘doomed to fail’ / Reuters
“China’s foreign ministry in Hong Kong slammed a six month report on the financial hub by Britain, saying it ignored ‘good’ societal conditions, a more stable business environment and instead supported ‘anti China’ chaos.”

U.S.-China competition and tensions
Blinken meets Chinese VP as US-China contacts increase ahead of possible summit / AP
“Secretary of State Antony Blinken met Monday with China’s vice president on the sidelines of the UN General Assembly as the Biden administration and Beijing step up high-level contacts ahead of what could be a leader-level summit this fall.”
China says opposes discriminatory U.S. practices against firms / Reuters
“China opposes discriminatory practices by the United States against Chinese companies, the foreign ministry said on Wednesday, after the U.S. commerce department said an advanced phone chip made by Huawei may violate trade restrictions.”

Huawei hacked

U.S. spy bureau NSA ‘hacked Huawei HQ’: China confirms Snowden leak / SCMP (paywall)
“Nearly a decade after documents leaked by Edward Snowden revealed that the US National Security Agency (NSA) hacked the servers of Chinese telecoms giant Huawei, Beijing has officially acknowledged the attack.”
China accuses U.S. of hacking Huawei servers since 2009 / Nikkei Asia (paywall)
“China has accused the U.S. of continuously hacking Huawei’s servers and conducting cyberattacks to steal other critical data since 2009, the latest salvo between Beijing and Washington as tensions further escalate.”

Japan
Japan’s China-bound exports dropped 11% in August / Nikkei Asia (paywall)
“Japan’s exports to China dropped 11% in August from a year earlier, marking the ninth straight month of decline, according to preliminary data released on Wednesday by Japan’s Ministry of Finance, highlighting weak demand from one of its key trade partners.”

Germany
German investment in China eases in H1 after record high / Reuters
“German direct investment in China eased in the first half of the year albeit remaining close to its record high in 2022 and increasing as a share of the country’s overall investment abroad, according to official data analyzed by the IW institute.”

Russia
China ready to continue business cooperation with Russia, top diplomat tells Putin / Reuters
“China is ready to continue business cooperation with Russia, Chinese Foreign Minister Wáng Yì 王毅 told Russian President Vladimir Putin during their meeting in Russia.”
EU to ask China at UN to push Russia towards ‘just peace’ in Ukraine / Reuters
“European Council President Charles Michel will ask China directly at the United Nations Security Council to do more to push Russia towards a ‘just peace’ in Ukraine, according to his draft speech seen by Reuters at the UNGA.”
China and Russia strengthen cooperation as G7 pushes Beijing to rein in Moscow on Ukraine / SCMP (paywall)
“Senior Chinese and Russian officials called for close policy coordination on bilateral and international affairs during security talks as foreign ministers of the Group of Seven (G7) nations pressed Beijing to help rein in Moscow in Ukraine.”
Isolated by West over Ukraine war, China has no choice but to be closer to Russia, says Chinese expert / SCMP (paywall)
“Western isolation over the Ukraine war has left China with no option but to strengthen its strategic ties with Russia, a leading Chinese expert on Sino-Russian relations said in an article that has been taken down online.”

Syria
Syrian leader expected to seek China’s support in rebuilding economy in meeting with Xi Jinping, analysts say / SCMP (paywall)
“Syrian President Bashar al-Assad will begin a visit to China on Thursday, and experts said his meeting with Chinese counterpart Xi Jinping would focus on the Middle Eastern country’s economic reconstruction.”

SOCIETY AND CULTURE:

Asian Games
Asian Games 2023: from rookies to veterans, 10 Hong Kong athletes worth watching as they chase success in Hangzhou / SCMP (paywall)
“Hong Kong is sending its largest contingent ever to the Asian Games, with Olympic champions, world-record holders and promising youngsters among their number.”
Huge demand for Esports tickets at Hangzhou Asian Games / Sixth Tone
“A lottery system was used to allocate tickets for esports, which is making its debut as a medaled event at the Asian Games in Hangzhou.”

Moutai’s boozy new venture
Moutai’s liquor-filled chocolates spark buying frenzy in China / Sixth Tone
“With prices surging on second-hand trading platforms, the company has said it is boosting production and advised consumers to only buy chocolates from official stores.”