Highlighted links for October 19, 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
A financial crisis in China is no longer unthinkable / WSJ (paywall)
“The world’s second-largest economy has a deflating property bubble, local governments struggling to pay their debts and a banking system heavily exposed to both.”
China’s economy faces deepening troubles in years ahead / WSJ (paywall)

Country Garden
China’s Country Garden bondholders seek talks after missed payment -sources / Reuters
“Country Garden bondholders are seeking urgent talks with the troubled property developer after it missed a $15 million coupon repayment, putting it at risk of default, according to three sources with direct knowledge of the matter.”
Country Garden sells down a barely started Australia project / Reuters
“Four years after Chinese property giant Country Garden launched a A$2 billion ($1.27 billion) development of 3,600 homes an hour’s drive southwest of Sydney, the outer suburban site remains a sparse field with fewer than 50 houses under construction.”
Country Garden, facing debt deadline, says executives have not left China / NYT (paywall)
“The company, one of China’s biggest property developers, took the unusual step of stating that the company’s founder and its chairwoman were ‘working normally.’”

State-owned businesses
China state-owned companies buy back shares / Nikkei Asia (paywall)
“About 50 Chinese state-owned companies are trying to bolster investor confidence by rolling out share buybacks or plans by big stockholders to expand their holdings after a series of other measures to prop up the stock market fell short.”

Local government debt and the banks holding it
China’s regional banks facing $300 billion shortfall, local government debt ‘pain could be too much to bear’ / SCMP (paywall)
“China’s regional banks could suffer a capital shortfall of 2.2 trillion yuan ($301 billion) from a deepening local government debt crisis, according to S&P Global Ratings, highlighting the fallout from the turmoil in the property sector on the country’s financial system.”

Automobiles
Italy’s DR Automobiles faces antitrust probe over Chinese origins of its cars / Reuters
“Italian carmaker DR Automobiles is facing an antitrust investigation for allegedly misleading consumers over where its DR and EVO-branded vehicles are made, the Italian competition authority (AGCM) said on Thursday.”

Semiconductors
Beijing weighs delaying approval of $69 billion Broadcom-VMware deal / FT (paywall)
“Beijing is weighing holding up U.S. chipmaker Broadcom’s $69 billion acquisition of cloud software company VMware — a move that would come soon after Washington toughened rules to block Chinese access to high-performance semiconductors.”

Phillips
Philips CEO: China business, supply chain undergoing major changes / Reuters
“Making more products for China locally and buying chips from several suppliers are just two of the supply chain changes Dutch healthcare technology firm Philips is making due to rising trade tensions, its CEO Roy Jakobs told Reuters.”

Tencent
Beijing takes ‘golden share’ in Tencent subsidiary, records show / Nikkei Asia (paywall)
“The Chinese government has taken a ‘golden share’ in a domestic subsidiary of tech giant Tencent Holdings, a company registration database showed, the latest sign of China stepping up its control over its tech sector.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Infectious diseases
Chinese scientists are hunting for the next viral disease threat to humans before it emerges / SCMP (paywall)
“It is just a matter of time before another pathogen capable of jumping from animals to humans poses the next large-scale threat to humanity, according to scientists who study such viruses. The challenge has been identifying what virus is most at risk of making that leap.”

Agriculture
Appetite for soya hinders China’s self-sufficiency drive / FT (paywall)
“China’s drive for self-sufficiency, as trade links fray with the U.S., is not confined to the cutting-edge likes of semiconductors and missile technology. The humble soyabean, too, is weighing on the minds of the nation’s leaders, and has become the unlikely subject of a national campaign to boost output.”

Mental health
How a ‘brain pacemaker’ can help treat depression / Sixth Tone
“After 16 years of battling ‘demons,’ one patient says he has been given a second chance at life by a brain-computer interface developed in Shanghai.”

Renewable energy
Solar leads Belt and Road’s green growth, heavy industries required to report emissions / Caixin (paywall)
“Solar power is leading the growth of renewable energy collaborations between China and its Belt and Road Initiative (BRI) partners, according to a report published on October 15 by the People of Asia for Climate Solutions, a nonprofit based in Manila.”

POLITICS AND FOREIGN AFFAIRS:

Military
Opinion: Xi could strike a real blow to military corruption if he wanted to / Nikkei Asia (paywall)
James Char writes: “The continued absence from public view of Chinese Minister of National Defense Lǐ Shàngfú 李尚福 and other leading generals suggests a major purge of the People’s Liberation Army is underway.”
Pentagon unveils 2023 China military and security report / Mirage
“The Department of Defense today released its annual report on ‘Military and Security Developments Involving the People’s Republic of China.’ The congressionally mandated report serves as an authoritative assessment on military and security developments involving the PRC.”

BRI
Taliban says plans to formally join China’s Belt and Road Initiative / Reuters
“The Taliban administration wants to formally join Chinese President Xí Jìnpíng’s 习近平 huge ‘Belt and Road’ infrastructure initiative and will send a technical team to China for talks, Afghanistan’s acting commerce minister said on Thursday.”
China ramps up yuan internationalization under Belt and Road Initiative / Reuters
“China is using loans agreed through its Belt and Road Initiative (BRI) to promote the yuan internationally, having already boosted the yuan’s share of global payments to record levels.”
Hong Kong, Beijing pledge 15 billion yuan for investment platform focusing on renewable energy, infrastructure projects / SCMP (paywall)
“Hong Kong and Beijing have pledged 15 billion yuan ($2.05 billion) to create an investment platform targeting projects under the belt and road plan, including those focused on developing infrastructure and transitioning to renewable energy sources.”
Belt and Road Forum shows China recalibrating after 10 years / Nikkei Asia (paywall)

U.S.-China competition and tensions
Nebraska governor faces backlash for comments on investigative reporter’s Chinese nationality / AP
“Nebraska Gov. Jim Pillen is facing backlash after comments he made about the Chinese nationality of a reporter whose story cited environmental concerns at farms owned by the governor.”
China expanding ways to target continental U.S., Pentagon report says / Nikkei Asia (paywall)
“China is expanding the ways it can hit the continental U.S., the Pentagon’s annual report to Congress has revealed, including what would be the world’s first conventionally armed intercontinental missile and submarine-launched weapons that can be fired from the safety of its littoral waters.”
Pentagon accuses China of accelerating nuclear build-up / FT (paywall)
China’s military is making risky moves and adding nuclear warheads, U.S. says / NYT (paywall)
Four things to know about tightened U.S. rules over chip exports to China / Caixin (paywall)
“The U.S. on Tuesday announced an updated set of export controls over more cutting-edge artificial intelligence (AI) semiconductor and chip manufacturing equipment, a move aimed at closing loopholes in existing rules and further blocking China’s access to American technology.”

Israel-Hamas conflict
China seeking quick end to Israel-Hamas conflict – Xi / Reuters
“China supports Egypt’s efforts to let in humanitarian aid to Gaza, state media quoted Xi as telling Madbouly. The Chinese president’s remarks are among the first he has made about the conflict which erupted after Hamas launched an assault on Israel on October 7, triggering a major military assault on Gaza.”
China condemns ‘heinous attack’ on hospital and urges ceasefire as priority at UN Security Council / SCMP (paywall)
“Beijing has condemned what it called a ‘heinous attack’ on a Gaza hospital that brought the Palestinian death toll to nearly 3,500, and it warned that the region will be “engulfed” without a complete ceasefire.”

Singapore
Singapore stresses supply chain resilience at Beijing forum / Caixin (paywall)
“Singapore politicians reiterated the Republic’s support for China’s Belt and Road Initiative (BRI) at a high-level forum in Beijing, while also stressing the need to strengthen global supply chains and bolster international cooperation on green financing.”

Japan
China’s foreign minister seeks fair, open cooperation with Japan / Reuters
“Cooperation between China and Japan should be fair and open, and both sides should not ‘artificially’ set restrictions and engage in ‘decoupling,’ Chinese Foreign Minister Wáng Yì 王毅 said on Thursday.”
China formally arrests Astellas employee suspected of spying, Japan urges release / Reuters
“China has formally arrested a Japanese businessman who was detained in March on suspicion of espionage, the Japanese government said on Thursday, calling on Beijing to release its national to avoid the issue becoming another thorn in relations.”
China formally arrests Japanese man for alleged espionage / Nikkei Asia (paywall)

Middle East
Up to 6 Chinese warships present in Middle East over past week / SCMP (paywall)
“The arrival of a replacement escort group in the Gulf region meant two advanced 052D destroyers have been stationed there at a time of heightened tensions.”

Thailand
China’s Xi calls for efforts to fight cross-border crimes with Thailand / Reuters
“China and Thailand should step up efforts to crack down on cross-border crimes such as telecommunications fraud and online gambling, President Xi Jinping told Thai Prime Minister Srettha Thavisin in Beijing on Thursday.”

SOCIETY AND CULTURE:

Pet safety
After dog mauls child, Chinese cities push to tighten pet laws / Sixth Tone
“Earlier this week, footage surfaced online showing a black rottweiler assaulting a young child and her mother.”

Fast-food
The Chinese burger startups vying to take a bite out of KFC / Sixth Tone
“Armed with beefy venture capital investments, Chinese fast-food brands are winning over consumers with a combination of aggressive price cuts and patriotic marketing tactics.”