Highlighted links for October 23, 2023

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

BUSINESS AND TECHNOLOGY:

U.S. companies are moving out of China
Global producers in U.S. hunt for China alternatives / Reuters
“Surveys now show U.S. business leaders are eager to cut back their China exposure and are shifting investment to other, friendlier countries. This is a radical shift from the days when offshoring production to China was rewarded by Wall Street and investor calls often highlighted multi-million-dollar expansions in the world’s second-largest economy.”

Stock markets
China’s stock market drops to pre-pandemic low / FT (paywall)
“Chinese shares fell to the lowest level since before the COVID-19 pandemic, as Beijing’s latest efforts to prop up the country’s stock market failed to stem a sell-off driven by slowing economic growth, a liquidity crisis in the property sector and geopolitical tensions.”

Banking
Foreign banks’ ‘adjustments’ in China only short term, national financial regulator says / Caixin (paywall)
“Certain business adjustments made by foreign banks to their China operations in recent years are short-term responses to prevailing conditions and related strategic necessities, rather than indicators of long-term trends, according to a national financial regulator official.”
Top Chinese investment bank CICC picks new boss / Caixin (paywall)
“China International Capital Corp. Ltd., one of the country’s top investment banks, on Sunday nominated finance industry veteran Chen Liang as its new chairman, the company said in a filing to the Shanghai Stock Exchange.”

Waste management
Tracing the history of Shanghai’s waste management / Sixth Tone
“As the city has developed into a global metropolis over the past 180 years, pilot programs and policies have helped refine the way it handles and recycles household garbage.”

U.S.-China tech war
U.S. considering curbing China’s cloud access, official says / Nikkei Asia (paywall)
“Washington is considering measures to restrict China’s access to cloud computing services provided by American companies as it pushes to curb Beijing’s efforts to develop artificial intelligence for military use, a senior U.S. official said in an interview.”

Graphite
Western graphite producers’ shares soar after Beijing announces export curbs / FT (paywall)
“Shares in non-Chinese graphite producers soared on Monday on expectations of stockpiling and a rush to secure alternative supplies after Beijing announced export restrictions on the material critical to electric car batteries.”

Local government debt
China’s debt crises, from developers to local governments, prompt cabinet call to curb contagion / SCMP (paywall）
“The cabinet’s finance work report to China’s top legislature over the weekend could signal that policymakers are racing to defuse widely watched risk points such as mounting debt in the world’s second-largest economy, analysts say as the woes of ailing developers and a local-level debt debacle continue to erode investor confidence.”

AI
Amid climate goals, China zones in on AI’s growing energy needs / Sixth Tone
“In a list of scientific challenges for China in 2023, climate change and energy consumption emerge among focus areas.”

Real estate and property development
China scraps price caps in bid to revive land sales, tweaks rule to allow lower-density suburban projects / SCMP (paywall)
“Beijing is scrapping price caps and changing other rules on land sales by local governments as part of an effort to revive a stagnant property market and turn the tide against a slumping economy.”

Foxconn
Taiwan’s Foxconn faces China tax probe, seen as politically motivated / Reuters
“Foxconn, a major supplier of Apple’s iPhones, is facing a tax probe in China, two sources close to Foxconn confirmed on Monday, saying they believed it was disclosed by a state-backed paper for political reasons tied to Taiwan’s upcoming elections.”
Apple supplier Foxconn subjected to tax inspections by Chinese authorities / AP
Foxconn’s China hubs targeted in tax probes / Nikkei Asia (paywall)
China launches investigation into iPhone maker Foxconn, says state media / FT (paywall)
Foxconn cooperating with probes in China, unit says / Caixin (paywall)
Apple iPhone Maker Foxconn Under Investigation by China / WSJ (paywall)
Foxconn, Apple’s manufacturer in China, is said to be under tax audit / NYT (paywall)

Country Garden
How China’s property crisis has unfolded, from Evergrande to Country Garden / FT (paywall)
“China’s biggest private sector developer, Country Garden, appears to be heading for default after failing to make a payment on an offshore bond — another critical moment in the slow reckoning taking place in the country’s vast property sector.”

TikTok
Amazon confronts a new rival: TikTok / Caixin (paywall)
“TikTok made a name for itself in the U.S. as a viral video-sharing sensation. Now it’s trying to get its 150 million U.S. users to think of it as a shopping destination.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Climate change
California Gov. Gavin Newsom is traveling to China to talk climate change / AP
“California Gov. Gavin Newsom will try to reinforce his state’s role as a global leader on climate change as he begins a weeklong visit to China on Monday, a trip that presents both political risk and opportunity for crucial international collaboration.”

Endangered animals
Three listed Chinese firms used endangered animal parts as ingredients, report says / Reuters
“Three publicly traded Chinese drugmakers which count global banks such as UBS and HSBC as investors have used parts of endangered animals as ingredients in their products, an environmental group said.”

POLITICS AND FOREIGN AFFAIRS:

Corruption
Former chief tobacco regulator targeted in graft probe / Caixin (paywall)
“Líng Chéngxìng 凌成兴, the former head of China’s State Tobacco Monopoly Administration (STMA) is being investigated for ‘serious violations of discipline and law’ by the country’s top anti-graft agencies, authorities said Monday.”
Former provincial legislature vice chairman probed for alleged corruption / Caixin (paywall)
“A former vice chairman of the standing committee of the regional people’s congress of Guangxi Zhuang autonomous region has been placed under graft probe by the country’s top anti-corruption watchdogs.”

Espionage
China says it uncovered another spying case in U.S. / Reuters
“China’s top spy agency said on Sunday a Chinese citizen who worked for a defense institute had been accused of spying for the United States and his case had been transferred to a court in the southwestern city of Chengdu for trial.”

BRI
China’s belt and road pivots to ‘small yet smart’ projects with ‘modest’ $107 billion financing pledge / SCMP (paywall)
“China has pledged 780 billion yuan ($106.6 billion) in new financing for its Belt and Road Initiative — a modest figure compared to previous years, according to observers, but with the potential to deliver more bang for the buck as Beijing pivots its signature global infrastructure strategy towards ‘small yet smart’ projects.”
Ten years of China’s Belt and Road: what has $1tn achieved? / FT (paywall)

ASEAN
China snaps up ASEAN’s green, digital investment opportunities / Nikkei Asia (paywall)
“China is making fresh investments in key business projects in ASEAN nations, leading the world’s economic powers that seek more involvement in the emerging region, Indonesian Deputy Foreign Minister Pahala Mansury told Nikkei Asia.”

Taiwan
Taiwan’s military must objectively assess PLA then ‘strengthen ourselves’, defense chief says / SCMP (paywall)
“Taiwan will not rely on the People’s Liberation Army having ‘certain shortcomings’ in preparing for a potential cross-strait conflict, the island’s defense minister said on Monday.”
U.S. tours help firm impressions of Taiwan presidential contenders / SCMP (paywall)
“Three months before Taiwan’s presidential election, the main contenders have mostly wrapped up efforts to garner support in Washington, and, analysts say, managed to convince policymakers that they do not seek to cross any red lines set by the U.S. or Chinese governments.”

California governor visit to China
Bay areas of San Francisco and China will come together in Hong Kong for landmark climate change forum in move seen as bridge-building effort / SCMP (paywall)
“The technology-driven bay areas of San Francisco and China will come together for a landmark climate change forum next year hosted by Hong Kong in a move seen as a bridge-building effort amid tense geopolitical relations.”

Japan
China wants to ‘work with Japan to relive spirit’ of 1978 peace and friendship treaty / SCMP (paywall)
“China called on Japan for joint efforts to ‘relive’ the spirit of peaceful coexistence and opposition to hegemonism enshrined in their peace and friendship treaty, as the two countries exchanged delayed greetings on its 45th anniversary amid frosty ties.”
China detains local staffer handling rare metals at Japan trader / Nikkei Asia (paywall)
“A Japanese trading company’s Chinese employee overseeing rare metals in China was taken into custody by Chinese authorities earlier this year, according to sources familiar with bilateral relations.”

Philippines
China, Philippines trade accusations over South China Sea clash / Reuters
“China and the Philippines traded accusations over a collision in disputed waters of the South China Sea as Chinese vessels blocked Philippine boats supplying forces there on Sunday in the latest of a series of maritime confrontations.”
China says U.S. statement on collision with Philippine boat disregards facts / Reuters
“China’s foreign ministry on Monday said a U.S. statement in which Washington sided with the Philippines regarding a collision between vessels in the South China Sea ‘disregarded the facts.’”
U.S. renews warning it will defend Philippines after incidents with Chinese vessels in South China Sea / AP
Philippines decries Beijing’s acts after South China Sea collision / Nikkei Asia (paywall)
China and Philippines trade accusations after collisions in South China Sea / FT (paywall)

Australia
Australia PM to visit China, with progress on wine, wind tower disputes / Reuters
“Australian Prime Minister Anthony Albanese said on Sunday he will travel to China from Nov. 4 to 7 to meet with President Xí Jìnpíng 习近平 and Premier Lǐ Qiáng 李强 in a bid to stabilize relations with the country’s biggest trading partner.”
Australian prime minister announces China visit hours before leaving for U.S. to meet Biden / AP
Australia PM says deal reached with China to resolve WTO wine spat / Nikkei Asia (paywall)
Australia says China is poised to lift punishing wine tariffs / NYT (paywall)

Israel-Hamas war
China will ‘do anything’ to restore peace, but ‘prospects are worrying’, envoy Gsays / SCMP (paywall)
“China is ready to ‘do anything’ to promote dialogue and restore peace as the fighting in Israel and Gaza intensifies, its Middle East special envoy said, as he outlined plans to visit the United Arab Emirates, Saudi Arabia and Jordan on the next leg of his mediation trip.”

Pakistan
Pakistan puts ‘blind trust’ in China as Belt and Road enters new phase / Nikkei Asia (paywall)
“A visit to China’s Belt and Road Forum last week by Pakistan’s caretaker prime minister, Anwaar-ul-Haq Kakar, netted a slew of agreements as he lavished praise on the hosts, but experts warn that financial constraints and security threats could still hinder the projects.”

Serbia
Serbia highlights importance of Chinese defense equipment / Reuters
“Chinese military equipment has strengthened the Serbian armed forces significantly, its deputy prime minister told Chinese state media, in particular an air-defense system and drones.”

Estonia
Estonia asks China for cooperation over severed Baltic Sea telecom cables / Reuters
“Estonia has contacted Chinese authorities in the investigation into the cause of how two Baltic Sea telecom cables were severed, the Estonian foreign ministry said on Monday.”

Russia
In northeast China, Russian and Chinese firms ink deals from manufacturing to agriculture / Reuters
“Chinese and Russian companies attending a regional conference in northeastern China signed a raft of cooperation deals on Monday in sectors ranging from manufacturing and logistics to ecommerce and agriculture, Chinese state media reported.”

Finland
China calls for ‘fair’ gas pipeline damage probe by Finland / Reuters
“China called on Monday for an ‘objective, fair and professional’ investigation into damage to a subsea gas pipeline between Finland and Estonia, saying a Chinese vessel in the area at the time was sailing normally.”

Cyberscams in Southeast Asia
China crackdown on cyber scams in Southeast Asia nets thousands but leaves networks intact / AP
“Regional and Chinese authorities have netted thousands of people in a crackdown, but experts say they are failing to root out the local elites and criminal networks that are bound to keep running the schemes.”

SOCIETY AND CULTURE:

Anti-consumerism attitudes spread in China
Anti-consumerism advocate encourages rethinking life’s pleasures in China / Sixth Tone
“Through talks, workshops, and a magazine, a group of like-minded friends in Shanghai are encouraging people to reject consumerist culture and make better use of their cities’ public spaces. Their message is falling on receptive ears.”

Film
In China, chest-thumping nationalistic films lose momentum / WSJ (paywall)
“Disappointing performance of ‘The Volunteers: To the War’ offers hint of moviegoer fatigue regarding patriotic themes.”

Books
Book critical of Ming emperor recalled after prompting online comparisons with Xi / Reuters
“A reprint of a book attributing the end of the Ming dynasty 400 years ago to the ineptitude of a Chinese emperor was pulled from shelves last week, in an apparent purge of a title that had drawn now censored online comparisons with President Xí Jìnpíng 习近平.”
Tale of emperor whose ineptitude ended his dynasty unnerves Chinese censors / FT (paywall)
The books I helped rescue from China’s repression / WSJ (paywall)
“When a Hong Kong publisher’s politically sensitive books were threatened with pulping, journalist Ian Johnson agreed to find them new homes in the West.”

Senior living
China’s sporty seniors / Caixin (paywall)
“In recent years, governments across China have promoted fitness programs, and encouraged communities and organizations running parks and other public spaces to provide facilities for the elderly.”

Sports
Can China rediscover its love of baseball? / Sixth Tone
“The country used to be crazy for baseball. Can a shocking upset rekindle that passion?”