A weekend in India without Xi

Xí Jìnpíng 习近平 did not attend, the first time he or any Chinese leader has skipped a G20 summit. But Chinese Premier Lǐ Qiáng 李强, Xi’s second-in-command, did go to represent China in his place. He met with a slew of world leaders on the sidelines.

• U.S. President Joe Biden and Li had an unexpected meeting. It was the highest level dialogue between American and Chinese leadership since Biden and Xi spoke at last year’s G20 in November 2022 in Indonesia.
• Italian Prime Minister Giorgia Meloni reportedly told Li in private that Rome does intend to withdraw from the BRI, while still looking to maintain friendly relations with Beijing.
• British Prime Minister Rishi Sunak told Li that he has “very strong concerns about any interference in our parliamentary democracy, which is obviously unacceptable,” after the Sunday Times reported the arrest of two alleged spies for China. China has rejected the spying accusations as “malicious slander” and urged the U.K. to “stop spreading fake information.”

In China, a think tank affiliated with the country’s Ministry of State Security published an article criticizing India for G20 hours before the world leaders gathered in New Delhi. It accused India of “sabotaging” the group and pushing its own agenda by hosting two prior summits in the disputed territories — one in Arunachal Pradesh, a flashpoint in its longstanding border dispute with China, and another in Kashmir, an area contested by Pakistan.

• Meanwhile, Xi was busy at home touring underdeveloped regions in northern China.

Click through for all the details.

Nadya Yeh

Two British men have been arrested for spying for China, the Sunday Times reported yesterday. The Times today reported that the researcher is Chris Cash, who worked for the China Research Group, which produced reports that were often highly critical of China for British MPs and for the press. Cash previously worked for the British Council, which promotes British culture around the world, and for the international section of a Chinese high school in Hangzhou.

Hong Kong and cities across southern China recorded the heaviest rainfall in 140 years, after a deluge left over from Typhoon Haikui swept over the region. On September 8, the Hong Kong Observatory, the city’s weather agency, reported hourly rainfall of 158.1 millimeters in the hour leading up to midnight, local time — the highest since records began in 1884.

At least two deaths have been confirmed and more than 100 people were taken to hospitals as streets turned into rivers and subway stations were submerged under water in Hong Kong. In Xiamen, in the southeastern Chinese province of Fujian, some people were seen climbing on top of cars and other elevated platforms to escape the waters. Officials raised rainstorm warnings and dispatched emergency services, while schools, offices were temporarily closed, and flights suspended.

Venezuelan President Nicolás Maduro is currently in China for a state visit from September 8–14, as he seeks to shore up ties. He expressed his desire for China to support Venezuela’s bid to join BRICS — the group of emerging market nations that includes Brazil, Russia, India, China, and South Africa, which recently announced plans to expand its membership. He also met with President of the BRICS New Development Bank (NDB) Dilma Rousseff at its headquarters in Shanghai.

Maduro’s trip comes after a similar visit paid by Venezuelan Vice President Delcy Eloina Rodriguez Gomez to Beijing and Shanghai, where she met with top Chinese officials to strengthen bilateral cooperation.

A few major Chinese cities have lifted restrictions on home buying in the past two weeks. Jinan and Qingdao, two of the biggest cities in eastern Shandong Province, announced today that homes in all areas are allowed to be put on the market, ending limits on the numbers of properties that could be bought in certain urban districts.

Last week, Dalian and Shenyang, two of the most populous cities in the northeastern Liaoning Province, announced that they will offer subsidies to buyers and also no longer cap the number of properties that people can own in large swaths of the city, while offering tax relief for sellers. Nanjing, the provincial capital of Jiangsu Province, also rolled back some of its last restrictions on home buying by letting residents purchase flats in four districts without proof of eligibility.

The moves come after China’s financial authorities and state-owned banks eased mortgage policies in the first week of September, including lowering mortgage rates for first-time homeowners, in a bid to spur consumption and investment in its ailing property sector.

One Chinese national was among at least three other people killed in an explosion at a granite quarry in the Shama district in western Ghana on September 9, local officials reported yesterday. The site is owned by Chinese company Omni Quarries.

Chinese battery maker Gotion High-tech Co Ltd has picked Manteno, Illinois as the new site for its $2 billion electric vehicle (EV) lithium battery manufacturing plant, the state governor’s office announced on September 8. The plant, which will focus on producing lithium-ion battery cells, battery-pack production, and energy storage systems, is slated to begin production in 2024.

Chinese state media: The People’s Daily’s print edition front page leads with two photos and a story about Xí Jìnpíng 习近平 visiting the 78th Group Army, which is headquartered in the northeastern city of Harbin. Xi urged the troops to “comprehensively improve the army’s ability to prepare for and fight wars.”

Xinhua News Agency leads with another stop on Xi’s visit to Harbin: He “hosted a symposium on promoting the comprehensive revitalization of Northeast China in the new era in Harbin City, Heilongjiang Province.”

So begins a poetic and unflinchingly honest essay by Liuyu Ivy Chen, that weaves together Marxism, the American poet Sharon Olds, James Baldwin, and Chinese Communist Party lore to look back on how she, as a child in an anonymous Chinese city, viewed the 9/11 attacks. And how she, as an adult now living in New York, views her younger self.

Liuyu Ivy Chen

• This year, he marked the BRI’s anniversary by heading back out on the road to see what has changed, and reporting back in a four-part series that we’re calling the Belt and Road Dispatch.

One driving force behind most Belt and Road Initiative (BRI) projects is the pursuit of revenue for Chinese state-owned enterprises, such as the China Road and Bridge Corporation (CRBC), Huawei, and Sinohydro.

• The BRI is shaped by the developmental philosophy of the Chinese Communist Party — that infrastructure underwrites economic development, which is in turn a prerequisite for social stability.
• At a CRBC camp in Kyrgyzstan in 2019, engineers were quick to relay the aphorism that encapsulates the BRI spirit: “To get rich, first build a road.” As one project manager put it: “When the project starts, the people have nothing; when it’s completed, they set up a business by the road, and their mentality has changed.”

Jacob Mardell’s four-part series starts in Serbia.

Jacob Mardell

• This week’s China Agenda: The key events this week are tech firm ARM’s blockbuster IPO, and a hearing on China’s threat to U.S. financial stability by the House Select Committee on the CCP. Click through for the full diplomatic, political, and business agenda for the week of September 10–17.

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

BUSINESS AND TECHNOLOGY:

Alibaba’s Daniel Zhang unexpectedly steps down
Alibaba split: what are the six units of the Chinese eCommerce company? / Reuters
“Alibaba Group Holding has said that its former group CEO Daniel Zhang has decided to leave its cloud computing unit in a surprise move that has raised concerns about the business’ spinoff plans and potential discord at the top.”
Alibaba’s ex-CEO Daniel Zhang quits cloud division in surprise move / Nikkei Asia (paywall)
“Daniel Zhang (张勇 Zhāng Yǒng), former chief executive of Alibaba Group Holding, has stepped down as the head of the Chinese tech giant’s cloud division, less than nine months after taking over the unit, the company said Sunday night.”
Former Alibaba chief Daniel Zhang steps down from cloud unit / FT (paywall)
Daniel Zhang quits Alibaba’s Cloud unit in surprise exit / Caixin (paywall)

Huawei and its new chip
U.S. probes made-in-China chip as tensions flare over technology / Bloomberg (paywall)
“The US government has begun an official probe into an advanced made-in-China chip housed within Huawei Technologies Co.’s latest smartphone, as tensions flare between the two superpowers over technological prowess.”
Huawei releases 5G foldable phone ahead of Apple’s big launch event / Nikkei Asia (paywall)
“Huawei Technologies’ comeback in the smartphone market is gathering momentum with the release of its second 5G-capable device in just over a week, this time a foldable phone that went on sale days ahead of a much-anticipated launch event by rival Apple.”

Economic gloom or boom
Franklin Templeton CEO says China pessimism is overhyped / Reuters
“The idea that investment opportunities in China have met their demise is probably overhyped, said Jenny Johnson, president and chief executive officer at global investment management firm Franklin Templeton.”
More Chinese seek bargains at Beijing market as confidence in economy wanes / Reuters
“Amy Zhang used to buy branded fashion from shopping malls, but China’s economic uncertainty has driven the 35-year-old teacher, and other middle-class Chinese like her, to shop at one of Beijing’s most famous wholesale markets.”
China’s deflation pressures ease, more steps expected to spur demand / Reuters
“China’s consumer prices returned to positive territory in August while factory-gate price declines slowed, data showed on Saturday, as deflation pressures ease amid signs of stabilization in the economy.”
Global investors lose faith in China rebound without policy ‘bazooka’ / FT (paywall)
“Fund managers flying into Hong Kong to check on the health of the Chinese economy are finding little reason to dive back into the country’s stock market, with some warning that global investors will not be tempted back unless Beijing deploys a stimulus ‘bazooka.’”
Janet Yellen says China has ‘policy space’ to boost its economy / FT (paywall)
“U.S. Treasury secretary Janet Yellen said China had the ‘policy space’ to tackle its economic slowdown as Beijing extended efforts to pull the renminbi back from 16-year lows against the dollar.”

Debt forgiveness
Death and debt in China: how a ‘half-baked’ bankruptcy law offers few individuals a fresh start / SCMP (paywall)
“China’s southern metropolis of Shenzhen is the only mainland city where individuals can apply for bankruptcy, but it’s not easy, as authorities seem to frown on debt forgiveness.”

China’s homegrown planes
China’s C919 passenger jet to come in different sizes, and AI will help optimize the design / SCMP (paywall)
“Just a few months after China’s homegrown C919 passenger jet completed its maiden commercial flight, the plane’s maker says it intends to build an expanded series of the narrow-body airliner.”

Lithium
What’s behind China’s lithium rush? / Sixth Tone
“Bidding wars erupt as manufacturers target domestic lithium resources to reduce reliance on imports.”

• Related: Lithium discovery in U.S. volcano could be biggest deposit ever found / Chemistry World

Electric vehicles
Chinese battery makers gird for price war in competition to supply EV producers / Caixin (paywall)
“China, the world’s biggest maker of electric vehicles, is poised to become a battleground for a price war between the two largest producers of the batteries that power EVs.”

Chinese battery producer finds home in U.S.
Chinese battery-maker picks Illinois for $2 billion factory / Caixin (paywall)
“Gotion High-tech Co. Ltd.’s facility will create 2,600 jobs in the U.S. state. The plant, focusing on lithium-ion battery cell, battery-pack production and energy storage systems, received state incentives valued at $536 million. The Chinese battery giant will also be eligible for $213 million in tax benefits over 30 years, as part of Illinois’s funding package.”

U.S. dollar in China
China’s central bank to scrutinize bulk dollar purchases – sources / Reuters
“China’s central bank is tightening its scrutiny of bulk dollar purchases by domestic firms, three sources with direct knowledge of the matter said on Monday, at a time when the Chinese currency faces mounting depreciation pressure.”

China’s iPhone crackdown
China workers reveal extent of iPhone curbs / FT (paywall)
“State employees across China, from nuclear power plants to far-flung hospitals, have been told in recent weeks to stop using Apple phones — part of a Beijing-led pushback against the US tech group that has knocked $200 billion off its share value this week.”
Chinese warnings on iPhones tap deep strain of security concerns / NYT (paywall)
“For years, officials in China have been told to shun foreign devices. Now reports of renewed curbs have unnerved Apple’s investors, heightening geopolitical tensions.”

Real estate and property development
More Chinese cities lift home-buying curbs to revive demand / Reuters
“Two major cities in eastern China lifted all curbs on home purchases and selling on Monday, joining several other cities in dropping restrictions to attract buyers and revive a largely frozen property market.”
China property crisis will need more than ‘simple policy’ solutions, say experts at Forbes conference in Singapore / SCMP (paywall)
“A ‘simple policy approach’ will not fix China’s ongoing property turmoil as the market is suffering from a crisis of consumer confidence which will take a longer time to rectify, business leaders told a Singapore conference on Monday.”
China’s Guangzhou scraps controversial housing price limits / Nikkei Asia (paywall)
“Guangzhou has quietly abandoned a controversial, seven-year-old policy limiting new housing prices, in a move to ease controls on the ailing property market.”
How to stabilize China’s property market to keep risks at bay / Caixin (paywall)
“Recently, China’s central and local governments have made a series of adjustments to their real estate policies, lowering mortgage requirements for some homebuyers and reducing interest rates on existing first-home loans. These measures are aimed at revitalizing real estate transactions in the short term, boosting market confidence and mitigating risks in this crucial industry. Of course, the overall effect of these new measures remains to be seen, and future policies should draw on lessons from the past.”

American corporations in China
China is full of risks. So why can’t corporate America leave? / NYT (paywall)
“Doing business in China, once seen as a can’t-miss opportunity, poses a troubling quandary: Reasons to stay can be as compelling as the reasons to retreat.”

Hong Kong’s government investment arm
Hong Kong’s investment arm to start funding projects by year-end / Nikkei Asia (paywall)
“The Hong Kong Investment Corp. (HKIC), a government-owned investment operation created last October, is actively selecting potential projects and is expected to begin pouring money into them by year-end, said King Leung [梁瀚璟 Liáng Hànjǐng], head of financial technology at InvestHK.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Can delivery apps cut down disposable cutlery waste?
Delivery app tweak could save 22 billion sets of plastic cutlery a year, study shows / WSJ (paywall)
“Research in China finds gentle nudges are a painless way to persuade users to cut down on consumption of single-use items.”

Extreme weather
Hong Kong rainstorm aftermath: downpours flood 8 locations with 1-meter-deep water in places, but all roads reopen in afternoon / SCMP (paywall)
“Drainage Services Department sent 15 teams to deal with flooding in Tseung Kwan O and Sai Kung, acting director says.”

China’s groundbreaking telescope
China’s trailblazing $31 million Mozi telescope ready to train giant eye on night sky / SCMP (paywall)
“China’s wide field survey telescope – tipped to be the most powerful astronomical tool in the northern hemisphere – could be fully operational as early as this week, 4,200 meters (13,800 feet) above sea level on the remote Tibetan Plateau.”

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
Xi’s tight control hampers stronger response to China’s slowdown / WSJ (paywall)
“​​Xí Jìnpíng 习近平 has placed the Communist Party—and himself—in greater command of China’s economy over the past decade. Now his centralization of power is delaying the country’s response to its worst economic slowdown in years.”

China’s criminal code
China criminal code amendments part of five-year legislative plan / Caixin (paywall)
“China’s top legislature has released a 130-item legislative plan for the next five years, state-owned Xinhua News Agency reported, including revisions to the criminal code, as the government seeks to enshrine more tools of national governance into law.”

Common prosperity
China misses ‘common prosperity’ goal as income gap now widest / Nikkei Asia (paywall)
“China’s income gap has grown to the widest it has ever been since records began, as the average household income of the top 20% in urban areas reaches 6.3 times of the lowest 20%.”

G20
Lula wants Putin and Xi back in fold at Brazil’s G20 next year / Nikkei Asia (paywall)
“Brazilian President Luiz Inacio Lula da Silva on Monday said he hopes Chinese President Xi Jinping and Russian President Vladimir Putin will return to Group of 20 participation next year as he prepares to take over the grouping’s presidency from India.”
Biden talked with China’s Li Qiang about ‘stability’ at G20 / Nikkei Asia (paywall)
“U.S. President Joe Biden revealed Sunday that he had talked with Chinese Premier Lǐ Qiáng 李强 on the sidelines of the Group of 20 summit in India.”
Chinese premier meets Biden at G20 / Caixin (paywall)
With China in mind, G20 agrees to boost lending at India summit / Nikkei Asia (paywall)
“The Group of 20 countries have agreed to work on expanding the lending capacity of multilateral development banks (MDBs), particularly the World Bank, in a move that could balance China’s growing financial influence over developing economies — many of which are reeling from debt.”
China opposed plans for U.S. to host G20 in 2026 / Nikkei Asia (paywall)
“China challenged the planned U.S. presidency of the Group of 20 in 2026, according to officials briefed on the discussions, in a move that underscores the deep sense of mistrust between Beijing and Washington.”
Xi’s absence at G-20 points to growing rift over global leadership / WSJ (paywall)
“In the early years of his decade in power, Chinese leader Xi Jinping was one of the world’s most traveled leaders, regularly meeting with friends and rivals, visiting economic powers and developing nations alike as he sought to expand China’s global influence.”

Hong Kong’s legal system
Hong Kong Bar Association chief warns any U.S. sanctions on judges pose ‘real threat’ to judiciary’s hunt for top talent / SCMP (paywall)
“The chairman of the Hong Kong Bar Association has warned that any U.S. sanctions against local judges could pose a ‘real threat’ to the city’s legal system and prevent the judiciary from recruiting top talent to combat a manpower shortage.”

Guns, butter, and culture in and around Taiwan
PLA aircraft carrier Shandong makes Taiwan ‘show of force’ days after U.S., Canadian warships cross strait / SCMP (paywall)
“The People’s Liberation Army aircraft carrier Shandong sailed just 60 nautical miles (111km) off Taiwan’s southernmost tip in what is being viewed as a fresh show of force as tensions escalate in the region.”
Taiwan cultural rise on world stage threatened by China: minister / Nikkei Asia (paywall)
“Taiwan’s rapid cultural rise on the world stage is under threat from China’s authoritarian influence as it sparks a ‘chilling effect’ across creative sectors, says the minister driving its soft power policies.”
Chinese aircraft carrier Shandong spotted off southeast Taiwan / Nikkei Asia (paywall)
“Taiwan’s Ministry of National Defense said Monday that it had detected China’s Shandong aircraft carrier sailing off the island’s southeast coast in the Western Pacific.”
U.S. House panel plans Taiwan war game with Wall Street executives / FT (paywall)
“The U.S. House of Representatives China committee plans to hold a Taiwan war game with financial and business executives in New York on Monday, in an effort to raise awareness about the risks attached to Americans investing in China.”

U.S.-China competition and tensions
What would Singapore’s Lee Kuan Yew say about ‘old friend’ China’s current ties with U.S.? / SCMP (paywall)
“The world has changed a fair bit since Lee Kuan Yew’s passing eight years ago. He did not live to see U.S.-China relations plummet to its lowest level since the two sides established diplomatic relations in 1979. The Ukraine war then was as improbable as Brexit, artificial intelligence was a footnote in scientific journals and the climate change Paris Agreement had yet to be signed.”
China’s top diplomat to skip U.N. assembly, raising doubts about possible Xi visit to U.S. / WSJ (paywall)
“Beijing’s surprise decision to dispatch its ceremonial vice president to the U.N. sends mixed signals over efforts to stabilize U.S.-China ties.”

U.K.
U.K. man, accused of spying for China in parliament, says he’s innocent / Reuters
“Western sanctions against Russia are boosting demand for China-made cars, and this surge could continue as long as these sanctions remain in place, an executive with China’s auto association said on Monday.”
China accused of interfering in UK ‘parliamentary democracy’ / FT (paywall)
U.K. arrests parliamentary researcher in China sa-caam-2023-09-11/py probe / WSJ (paywall)
U.K. welcomes China investment in ‘key areas,’ trade minister says / Caixin (paywall)
“The U.K.’s investment minister said the country welcomes Chinese investment and expertise, especially in the renewable energy and infrastructure sectors, following high-level meetings between officials of the two countries that have resulted in improved ties.”

Japan
Japanese medical lab device production goes upmarket in China / Nikkei Asia (paywall)
“Japan’s Shimadzu will start manufacturing high-end testing equipment for hospitals in China as early as 2024, as government rules push health care providers to buy Chinese-made products.”

Australia
Security raid on Chinese academic fuels concern over Australia-China exchanges / Reuters
“A Chinese university scholar had equipment seized and was questioned by Australia’s security agency and police in Western Australia last month in an incident that has prompted some Australian academics to reconsider their travel plans to China for fear of reprisals.”
Australia’s property price surge stems from domestic issues, not Chinese buyers / SCMP (paywall)
“Among the world’s vulnerable property markets, Australia is perceived as being most at risk from the steep rise in interest rates. This is mainly because of a combination of a worryingly high level of household debt and a high proportion of floating rate mortgages.”

Vietnam
Vietnam and US upgrade relations in move to counter China / FT (paywall)
“Vietnam has boosted ties with the US during a visit by President Joe Biden, bringing the former foes closer in the face of Beijing’s growing assertiveness.”
Vietnam and U.S. forge deeper ties as worries rise about China / NYT (paywall)
China boosts ‘political trust’ with Vietnam ahead of Biden visit / Reuters

Italy
More to Italy-China partnership than Belt and Road, Meloni says / Nikkei Asia (paywall)
“Prime Minister Giorgia Meloni said on Sunday there was more to Italy’s relationship with China than the Belt and Road Initiative (BRI), adding that a final decision on whether to leave the BRI was still to be taken.”
Meloni calls for ‘mutually beneficial’ China trade as Belt & Road decision looms / FT (paywall)
“Italy’s prime minister Giorgia Meloni has said Rome wants to forge stronger ties with China, even as it considers pulling out of Beijing’s controversial Belt & Road Initiative in the coming months.”

Germany
Does Berlin have a Chinatown? No — it has something better: this is Kantstrasse / SCMP (paywall)
“West Berlin’s affluent Kantstrasse, long a home to Chinese students, has evolved into the German capital’s hotspot for East Asian food and cultural artifacts.”

Myanmar
In Myanmar, Chinese and Thai companies fill economic vacuum / Nikkei Asia (paywall)
“From infrastructure to consumer goods, Chinese and Thai companies have expanded in Myanmar as their countries maintain relations with the Western-sanctioned military-led government.”

India
India spends big on what it needs most to catch up to China / Caixin (paywall)
“The financial capital of India has become a colossal construction site. The barriers that try to keep daily life on track in the metropolis on the country’s west coast proclaim: ‘Mumbai is upgrading.’”

Morocco
China to give $200,000 to earthquake-stricken Morocco / Reuters
“The Red Cross Society of China will give the Moroccan Red Crescent $200,000 for emergency humanitarian assistance, Chinese state media reported on Monday, after a deadly earthquake struck the North African country late on Friday.”

Ukraine
Chinese singer denounced over video at bombed-out Ukrainian theater / NYT (paywall)
“The singer Wáng Fāng 王芳 drew criticism after she performed ‘Katyusha,’ a Soviet-era patriotic song, at the ruins of a theater in Mariupol.”
China digs In on Ukraine, climate even in Xi’s G-20 absence / Bloomberg (paywall)
“China is emerging as a block on negotiations in the run-up to a meeting of Group of 20 leaders, with the UK accusing Beijing of obstructing measures to tackle climate change and refusing to back language condemning Russia’s war on Ukraine.”

SOCIETY AND CULTURE:

Hong Kong culture in exile
Hong Kong migrants revel in Cantopop concerts, films from home as tears flow, emotions high in ‘collective healing’ at venues in Canada, UK / SCMP (paywall)
“Emotional scenes as migrants who left in recent years flock to see RubberBand concerts and other Cantopop groups.”

Teacher’s Day
In China, pricey Teachers’ Day presents spark debate on gift-giving / Sixth Tone
“Despite regulations explicitly banning gifts being given to teachers, the practice continues. On social media, many argued that simple gestures resonate deeper.”

Golf
China’s Yin a ‘big step’ closer to emulating inspirational Feng / Reuters
“Yīn Ruòníng 殷若宁 iis set to become world number one after recording her third straight top-three LPGA finish on Sunday and the Chinese 20-year-old said the top ranking would mark another milestone in her bid to emulate compatriot Feng Shanshan.”

Fashion
China may ban clothes that hurt people’s feelings. People are outraged. / NYT (paywall)
“A proposal evokes memories of 1980s China, when opening up to the world set off a debate over flared pants and men with long hair, what the party called ‘weird attire.’”

Influencers in China
Popular influencer’s disappearance sheds light on elderly fans / Sixth Tone
Xiùcái 秀才 “had millions of adoring fans watching his Douyin videos, many of whom were middle-aged and elderly. Then, he disappeared.”