Life in prison for the former Party boss of Hangzhou

• Zhou, 55, was given a suspended death sentence with a two-year reprieve for taking more than 182 million yuan ($25.5 million) in bribes over his two-decade-long career, according to a verdict issued by the Chuzhou Intermediate People’s Court in Anhui province yesterday. The court also deprived Zhou of his political rights for life and confiscated all his personal property.
• In April, Zhou had pleaded guilty to taking 193 million yuan ($27.9 million) in bribes. He was accused of providing favors including “construction projects, contracting, land acquisition, and other commercial favors” in exchange for illegal properties, either directly or indirectly through his family.

Zhou’s verdict concludes a highly-watched case for the most senior official in Zhejiang province to be ensnared by the Chinese government’s fight against corruption.

• In January 2022, Zhou became the first cadre to be expelled from the Party over corruption charges relating to the “disorderly expansion of capital,” a slogan that rose to prominence during Beijing’s tech crackdown in 2021.
• Prosecutors did not name any fintech company in the ruling. But Zhou had earlier been linked to Ant Group, the Alibaba-affiliated financial technology giant founded by Jack Ma (马云 Mǎ Yún). Beijing had kicked off its sweeping campaign targeting the private sector in late 2020 by forcing Ant to scupper its $34 billion IPO. Both Ant Group and Alibaba are headquartered in Hangzhou.

On the same day that the court delivered Zhou’s verdict, a draft amendment to China’s criminal law was submitted for review to the Standing Committee of the 14th National People’s Congress (NPC), China’s top legislative body. The proposed amendment is aimed at refining “the crime of offering bribes and corruption by individuals from private firms,” according to Chinese state media. Click here for all the details.

Nadya Yeh

Chinese battery maker CATL made record profits in the first-half of the year. Net profits surged more than 154% to 20.7 billion yuan ($2.9 billion) in the first six months of 2023 compared to the same period a year earlier.

The growth was driven by a 68% revenue boom to 189.3 billion yuan ($26.5 billion) from 113 billion yuan ($15.8 billion) a year ago, following a global rise in electric vehicle sales. “The global new-energy vehicle market continues to grow, leading to a rapid increase in the scale of the power-battery industry,” CATL said in a statement.

China sent 13 warplanes around Taiwan today, three of which entered the island’s southwest air defense identification zone (ADIZ), Taiwan’s Ministry of Defense reported. It is the latest in dozens of PLA aircraft and vessels that have encroached on the areas surrounding the island, after Taiwan yesterday kicked off its five days of annual war games aimed at testing the Taiwanese military’s ability to defend itself against a full-scale attack from Beijing.

Russian President Vladimir Putin plans to visit China in October to coincide with a “One Belt, One Road” forum in China, his foreign policy adviser Yuri Ushakov announced on Tuesday. Putin also plans to travel to Turkey, though the official plans have not been set in stone, Ushakov said.

Surveillance and AI firm Hikvision is still selling Uyghur identification facial recognition technology to Chinese security services, according to a new investigation by research firm IPVM.

Chinese state media: The People’s Daily print edition today reports — partly in red type for emphasis — on a Xí Jìnpíng 习近平 speech on “strengthening military governance,” ensuring close coordination of different parts of the military, and “realizing the goal of the army’s 100-year struggle.”

Xinhua News Agency’s top story is an infographic titled “General Secretary Xi Jinping talks about the great spirit of resisting U.S. aggression and aiding Korea,” which recounts various times that Xi has celebrated China’s sacrifices in the Korean War. (Korean armistice talks began in July 1951.)

• Earlier this month, the local government of Shijiazhuang announced an ambitious initiative to rebrand the city as the Chinese capital of rock.
• The main plank in its campaign is a three-month, citywide music festival called “Rock Home Town.” Scheduled to begin in July and last through October, the initiative will feature a series of nearly 20 rock music concerts performed by high-profile artists every weekend.
• Local musicians are also encouraged to play impromptu gigs in public places, including parks, shopping centers, and even subway cars.

The unusual rebranding has put Shijiazhuang in the spotlight.

• It’s not just a tourism campaign — the city actually has a storied relationship with rock music, being the home of two of China’s best-known rock magazines and several prominent bands.

But how far can Shijiazhuang go in its embrace of rock ‘n’ roll and its spirit of rebellion, and freedom?

Zhao Yuanyuan

• Wǔ Zétiān 武则天 reigned as de facto emperor of the Tang Dynasty, and for 15 years as emperor of her own Wu Zhou Dynasty, in the 7th century. She remains the only woman to have ruled in her own name. Her only surviving daughter was Princess Taiping (太平公主 Tàipíng Gōngzhǔ).

Princess Taiping staged a masterful coup in 710 AD.

• “It was a smooth operation,” writes historian Richard Guisso, “one which required both money and influence”: the hallmarks of Princess Taiping. Her rival’s head (along with that of her daughter) was set on a spike.
• “In a scene befitting Cersei Lannister, she interrupted an imperial audience, seized the teenage emperor by the collar and pulled him, quite literally, from the throne,” James Carter writes. “She then had the suddenly demoted former emperor arrested, and reinstalled her brother, Emperor Ruizong (唐睿宗 Táng Ruìzōng). Ruizong was again emperor, but there was no illusion about who held power.”

But that’s only the beginning of the story, James Carter writes in This Week in China’s History.

James Carter

As the European Union forges ahead with its “de-risking strategy” towards China, chronic internal divisions might endanger the bloc’s resolve, writes Emanuele Scimia.

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

BUSINESS AND TECHNOLOGY:

Condoms are selling like hotcakes
China’s consumer sentiment is down, but not when it comes to condoms / Reuters
“Consumer companies and economists have said sentiment in China is slower than expected, but that’s not stopping them from buying more condoms, Durex maker Reckitt said on Wednesday.”

China’s tech fund
China’s high-tech state fund grows to over $8 billion in self-sufficiency drive / SCMP (paywall)
“A Chinese state fund, which was launched in 2014 to transform research results into business ventures, has reached 62.4 billion yuan ($8.7 billion), according to state media, as Beijing leans on a top-down ‘whole-country’ approach in its bid for technological self-sufficiency.”

China’s economic recovery
What China’s economic measures mean in practice / FT (paywall)
“Chinese stocks staged their biggest one-day rally since November after a call by China’s leaders for strong ‘countercyclical’ measures to support the world’s second-largest economy, despite what economists said was a lack of detail in Beijing’s plans.”

China’s tech transfer law
China weighs easing tech transfer rules for office gear / Nikkei Asia (paywall)
“The Chinese government is considering easing proposed rules that require foreign office equipment makers operating in the country to transfer key product technology to China, Nikkei has learned.”

Electric vehicles
Probe clears local government accused of crippling China EV startup / Caixin (paywall)
“The decision by a local government to reject renewing a loan guarantee for troubled mini electric vehicle (EV) startup Levdeo was in compliance with regulations, a joint investigation team said on Tuesday as it wrapped up a probe into a claim by the automaker’s founder in January that the refusal led to a production halt and undermined its financing efforts.”
Chinese battery material supplier expands in South Korea / Caixin (paywall)
“Chinese battery material supplier Ningbo Ronbay New Energy Technology Co. Ltd. won approval to more than triple its South Korean production capacity amid a rising tide of Chinese companies seeking foothold in the neighboring country.”
BYD widens lead over Volkswagen as China’s top-selling car brand / Caixin (paywall)
“BYD Co. extended its lead over Volkswagen AG as China’s top-selling automaker as its wide range of electric vehicles proved hugely popular among local buyers.”

Youth unemployment
China jobs: Gen Z graduates turn to cleaning as Beijing looks to domestic services to mop up unemployed youth, veterans / SCMP (paywall)
“China’s youth unemployment rate rose to a record high in June, pushing Beijing to vow to put job creation at the forefront of its plans in the second half of the year.”

Cross-border trade
China issues draft rules to fuel cross-border trade and investment / Caixin (paywall)
“China’s top foreign exchange regulator is soliciting public comment on a draft notice to further overhaul regulations promoting cross-border trade and investment.”

Development and real estate
Chinese real estate stocks rally on stimulus hopes / Nikkei Asia (paywall)
“Shares in Chinese real estate companies surged on Tuesday, a day after a closely watched policy meeting raised hopes that support for the troubled sector was coming.”

WeChat
WeChat’s short video ecommerce drive suffers from a lack of customers / Caixin (paywall)
“As goes China’s broader economy, so goes the nation’s ecommerce spending. It may be little surprise then that after last month’s 618 shopping festival — an annual Black Friday style event that stretches for weeks — ecommerce giants were tight-lipped about how their sales went.”

Ant Group IPO?
How Jack Ma’s Ant Group is inching toward IPO reboot / Bloomberg (paywall)
“​​Almost three years ago, Chinese regulators torpedoed what would have been a record initial public offering by financial technology giant Ant Group Co., sending shock waves across global capital markets.”

POLITICS AND FOREIGN AFFAIRS:

More government noises on the economy
Key takeaways from China’s politburo meeting on the economy / Reuters
“China pledged to step up stimulus measures as the economy faces what it described as ‘new’ difficulties and a ‘tortuous’ recovery, following a meeting of the powerful politburo of the ruling Communist Party this week.”
China’s politburo meeting leaves many economic headaches unaddressed / Reuters

Qin Gang replaced as foreign minister
‘Silver fox’ Wang Yi returns to lead China’s foreign ministry / Reuters
China replaces foreign minister Qin after mysterious absence / Reuters
A familiar face for the U.S. as China’s Wang returns as foreign minister / Reuters
China removes Qin Gang as foreign minister after month-long absence / SCMP (paywall)
China replaces missing foreign minister Qin Gang / FT (paywall)
China insists diplomacy ‘orderly’ after foreign minister’s shock removal / FT (paywall)
Did rocky China-U.S. ties doom Qin Gang as foreign minister? / Nikkei Asia (paywall)
Ouster of Xi’s handpicked foreign minister halts rising career / Bloomberg (paywall)
China’s foreign minister is removed after a month of silence / NYT (paywall)
Replaced, then erased: Mystery deepens around China’s former foreign minister / WSJ (paywall)
China removes its outspoken foreign minister during a bumpy time in relations with the U.S. / AP
China’s foreign minister replaced after unexplained absence / WSJ (paywall)
Xi’s recall of ‘wolf warrior’ Wang Yi lays ground for U.S. summit / Nikkei Asia (paywall)
“Chinese President Xí Jìnpíng’s 习近平 decision to recall senior diplomat Wáng Yì 王毅 to head the Ministry of Foreign Affairs reflects a misstep, but it could be a crucial move ahead of possible U.S.-China summit in November.”
Wang Yi replaces Qin Gang as foreign minister / Caixin (paywall)
China’s new foreign minister Wang Yi has longstanding ties with U.S. counterparts / Bloomberg (paywall)

Wuhan earthquake center hacked
China says Wuhan earthquake center attacked by overseas hackers / Reuters
“An earthquake monitoring center in central China’s Wuhan suffered a cyberattack from overseas hackers, local authorities said on Wednesday. China’s state media, including Global Times and a social media account run by CCTV, claimed the attack was ‘government-backed’ and came from the United States.”

Corruption
China’s fight against corruption to zero in on bribers with severe penalties / SCMP (paywall)
“China is moving to close a loophole blamed for allowing people in charge of companies or entities to escape heavy punishment for offering bribes.”
Head of China’s first intellectual property court expelled from party / Caixin (paywall)
“The president of China’s first intellectual property court has been expelled from the Communist Party by graft busters who found that he was involved in improper sexual behavior and broke the law as a law enforcement officer.”

Hong Kong
Hong Kong’s security law puts damper on annual book fair / Nikkei Asia (paywall)
“One of the largest book fairs in Asia came to a close on Tuesday with no reports of books suspected of violating the city’s national security law.”

Taiwan
Taiwan’s military practises repelling Chinese attack on airport / FT (paywall)
“Taiwan’s armed forces have practiced repelling an air assault on the country’s largest international airport for the first time, as Taipei seeks to strengthen its defenses against aggression from China with more realistic military drills.”

U.S.-China competition and tensions
Lawmakers press for more scrutiny over China’s ‘malign influence’ at development bank / AP
“Lawmakers intent on reducing China ‘s influence on the U.S. economy are pushing the Treasury Department to help curb the outsized role of Beijing at the Inter-American Development Bank, which supports economic and social development in Latin America and Caribbean.”
Blinken criticizes China’s ‘problematic behavior’ during visit to Tonga / Reuters
“ U.S. Secretary of State Antony Blinken warned of China’s ‘problematic behavior’ during a visit to the Pacific island nation of Tonga on Wednesday, citing Beijing’s militarisation of the South China Sea and what he called economic coercion.”
Senate targets China, voting to restrict farmland purchases and U.S. investment / NYT (paywall)
“Senators voted overwhelmingly to block Chinese businesses from buying farmland and mandate that American investment in the country’s national security industries be tracked.”

Fiji
Fiji’s leader declines invitation to China, saying he tripped and fell / NYT (paywall)
“The prime minister, wearing a bloodstained shirt, said he struck his head on a door. One analyst called it ‘very convenient.’”

Italy
Meloni to tell Biden privately that Italy plans break with China / Bloomberg (paywall)
“Italian Prime Minister Giorgia Meloni is looking to build up a relationship with Joe Biden by pledging to break with China and plans to brief the US president in person Thursday on the delicate choreography of that split.”

Japan
Japan says it hopes to communicate closely with China including with Wang Yi / Reuters
“Japan hopes to communicate closely with China, including with its newly named foreign minister and veteran diplomat Wang Yi, the top government spokesperson said on Wednesday.”

Australia and New Zealand
Australia and New Zealand concerned about China and Solomon Islands policing agreement / Reuters
“Australia and New Zealand on Wednesday expressed concern about a new policing agreement between China and the Solomon Islands that they said would undermine the Pacific’s agreed regional security norms.”
Australia can be a ‘reasonable’ moderator to ease U.S.-China tensions: ex-foreign minister Julie Bishop / SCMP (paywall)
“Former Australian foreign minister Julie Bishop has said the country, respected as a “reasonable” nation on the world stage, can serve as moderator to the tensions between the United States and China.”

BRICS
China’s Wang Yi calls on Global South to make voice heard in changing world order / SCMP (paywall)
China’s top diplomat and newly reappointed Foreign Minister Wang Yi has called on the Global South to ‘expand their voice’ in a changing world order, and ‘support each other on issues of mutual core interests and major concerns.’”

North Korea
North Korea to welcome China and Russia with military display after pandemic isolation / Reuters
“After years of pandemic isolation, North Korea has invited its friends back this week, hosting senior Chinese and Russian delegations for 70th anniversary commemorations of the Korean War and the struggle against the United States and its allies.”
Russian military delegation to join Chinese on North Korea visit / Nikkei Asia (paywall)

Russia
Russian President Vladimir Putin plans to visit China in October, Kremlin says / AP
“Russian President Vladimir Putin plans to visit China in October, a top Kremlin official announced Tuesday.”

Argentina
Argentina to open consulate in Chengdu, southwest China to meet ‘growing demands’ / SCMP (paywall)
“Argentina will open a consulate in Chengdu, the capital of Sichuan province, as part of efforts to boost bilateral ties and meet the ‘growing demands’ of its citizens in that part of China.”

India
China urges India to stabilize ties for mutual benefit after BYD’s failed $1 billion EV factory bid / SCP (paywall)
“Just days after India rejected Chinese carmaker BYD’s $1 billion bid to set up an electric vehicle factory in the country citing security concerns, Beijing’s top diplomat urged New Delhi to stabilize bilateral ties for the benefit of both sides.”
India ‘open’ to Chinese investment despite tensions with Beijing, official says / FT (paywall)
“India is ‘open’ to investments from China, a senior government official has said, despite New Delhi’s crackdown on Chinese companies and recent reports that some investment proposals have stalled.”

SOCIETY AND CULTURE:

Pandas
French-born panda lands in China / Caixin (paywall)
“The first giant panda born in France, Yuan Meng, meaning ‘Dream Fulfillment,’ arrived in Chengdu on Wednesday after a 12-hour flight from a French zoo.”
First panda born in France says goodbye and heads to China / AP

Sports
China’s youth are hooked on a new outdoor sport: lure fishing / Sixth Tone
“Also known as water golf, this fishing technique is drawing in youngsters with its hands-on approach, with anglers having to mimic movements to entice aggressive fish.”