China calls for ‘two-state solution’ after Hamas attack

• “What’s really important is to prevent the further escalation of the situation, and for the casualties of civilians,” Zhāng Jūn 张军, China’s Permanent Representative to the UN, said on Sunday. “And what’s also important is really to come back to the two-state solution and the peace process.”
• U.S. Senate Majority Leader Chuck Schumer (D-NY), who was in Beijing over the weekend, said, “I say this with respect, but I was disappointed by the foreign minister’s statement that showed no sympathy or support for the Israeli people during these troubled times.”
• The Israel embassy posted to X on Sunday, in a message in Chinese, “We are grateful to all the countries that stand with Israel…we also hope that China can provide solidarity and support to Israel at this difficult moment.”

China’s relationship with Israel and Palestine is a complicated one.

• Chinese President Xí Jìnpíng 习近平 met with Palestinian President Mahmoud Abbas on June 14. Xi proposed a two-state solution and advocated for Palestine’s full membership in the UN.
• Meanwhile, China and Israel have long had a friendly working relationship, though U.S. security officials have recently been sounding alarms on Chinese-Israel cooperation in infrastructure and technology.

Click through for the full story.

Anthony Tao

U.S. Senate Majority Leader Chuck Schumer is leading a bipartisan delegation of six senators on a trip to China, Japan, and Korea. Today Schumer met Xí Jìnpíng 习近平 and called on him to support Israel after deadly attacks by Hamas. Schumer also said the main goal of the trip was to seek economic reciprocity and “provide a level playing field for American companies and workers.”

The trip may also serve as preparation for a meeting between U.S. President Joe Biden and Xi, which Biden said is a “possibility” at next month’s Asia-Pacific Economic Cooperation summit in San Francisco. However, no sit-down has yet been scheduled.

The U.S. added 42 Chinese companies to its export blacklist, along with seven other firms from Estonia, Finland, Germany, India, Turkey, the United Arab Emirates (UAE), and the United Kingdom, for “providing support to Russia’s military and defense industrial base.”

On October 6, the Commerce Department stated that the total 49 entities added to its Entity List accounted for “a significant portion” of the global trade in U.S.-origin integrated circuits to Russia from March to July this year, which are used by Moscow in the precision guidance systems in the missiles and drones fired against civilian targets in the Russia-Ukraine war.

“Today’s additions to the Entity List provide a clear message: if you supply the Russian defense sector with U.S.-origin technology, we will find out, and we will take action,” Assistant Secretary for Export Enforcement Matthew S. Axelrod said in the statement.

India accused Chinese smartphone makers Xiaomi and Vivo of helping transfer illegal funds to local news portal NewsClick, which is under investigation on charges of spreading Chinese propaganda. Critics say the investigation is an intentional attack on press freedom.

Indian police have leveled wide-ranging charges against NewsClick, raided dozens of homes, and arrested some of its prominent journalists and authors, including founder and editor-in-chief Prabir Purkayastha. The police have accused them of attempting to sabotage India’s 2019 general election, as well as to “peddle a narrative, both globally and domestically, that Kashmir and Arunachal Pradesh are disputed territories” and are “not part of India.”

Typhoon Koinu left one dead and more than 300 injured in Taiwan last week, and the remnants of the storm are now bringing heavy rainfall and floods to southern China. Ferry services connecting the southern Chinese island province of Hainan with the mainland have been suspended, while authorities in the financial hub of Hong Kong temporarily shut schools and canceled some flights, leaving hundreds stranded at the city’s airport.

China’s Golden Week saw tourism rebound to near pre-pandemic levels, but still fell short of government expectations. The longer-than-usual holiday from September 29 to October 6 saw domestic tourism revenue hit 753.43 billion yuan ($103.24 billion), up 1.5% from 2019, China’s Ministry of Culture and Tourism reported. Meanwhile, a total of 826 million domestic trips were made across China, up 71.3% year-on-year and an increase of 4.1% from 2019. Both figures were lower than earlier predictions from the ministry of 896 million trips and 782.5 billion yuan ($107.3 billion) in domestic tourism revenue.

China’s ruling Communist Party expelled the ex-chairman of the state-owned Bank of China Liú Lián’gě 刘连舸, 62, from the Party for allegedly conducting illegal activities and taking bribes, the Central Commission for Discipline Inspection (CCDI) said in a statement on its website on October 7.

China named its new Party chief of the Ministry of Science and Technology. Yīn Héjùn 阴和俊, 60, will take the role of Party secretary, replacing 65-year-old Wáng Zhìgāng 王志刚, who will retain a position as a minister, the ministry announced (in Chinese) on October 7. Yin is the former deputy chief of the Chinese Academy of Sciences (CAS).

Chinese state media: In 2017, the 19th National Congress of the Chinese Communist Party introduced Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era (习近平新时代中国特色社会主义思想) to the world. We now have a new phrase: Xi Jinping Thought on Culture (习近平文化思想), introduced by today’s People’s Daily as the outcome of a two-day National Ideological and Cultural Work Conference held in Beijing over the weekend.

Xinhua News Agency leads with a report on the 18th National Congress of Trade Unions of China which opened in Beijing today and was attended by Xi and other senior leaders. (China’s trade unions are controlled by the Communist Party and are not able to organize independently.)

• The first time Xí Jìnpíng 习近平 mentioned a “green silk road” in a major public speech was in June 2016 in Uzbekistan, a country that is now rapidly developing its renewable energy capacity with the help of Chinese companies.
• There’s a “digital silk road” and a “health silk road,” so it shouldn’t come as a surprise that Beijing also has a “green silk road” focused on sustainable development.

The domination of Chinese companies in Uzbekistan’s green transition and an emerging Gulf-China partnership in renewables could be a potential concern for European investors, writes Jacob Mardell’s in the third installment of his four-part series on the Belt and Road.

Jacob Mardell

The key event this week is the Chuck Schumer-led delegation to China.

• U.S. Senate Majority Leader Chuck Schumer (D-NY) landed in Shanghai on Saturday with a delegation of five other senators, and departed today. Schumer met with Xí Jìnpíng 习近平, among others.
• Along with Senator Mike Crapo (R-ID), who is co-leading the visit, other senators include Bill Cassidy (R-LA), John Kennedy (R-LA), Maggie Hassan (D-NH), and Jon Ossoff (D-GA).
• The delegation will continue on to Japan and South Korea.

Other upcoming political and business events:

• The Party Central Committee is expected to hold a quinquennial plenary session this month to map out economic reforms for the years ahead.
• Taiwan is celebrating its “Double Ten” National Day on October 10. Forty-three members of the Japan-ROC Diet Members’ Consultative Council are in Taiwan until that date.
• Former Australian prime minister Scott Morrison will travel to Taiwan on October 11–12 to attend the seventh edition of the Yushan Forum organized by the Taiwanese foreign ministry and the NGO Taiwan-Asia Exchange Foundation (TAEF).

Click through for the full agenda for this week.

Arran Hope

• This week the Sinica Podcast is a recording of a lecture by Robert Daly, director of the Wilson Center’s Kissinger Institute titled “Is Our Foreign Policy Good? American Moral Absolutism and the China Challenge.” Sinica Host Kaiser Kuo follows up with a long conversation with Daly.You can wait for the general podcast release on Thursday, or you can get the ad-free, subscriber-only version of Sinica using any major podcast app on your phone by following the instructions at this link.

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
China’s flagging economy gets a temporary boost as holiday travel returns to pre-pandemic levels / AP
“Chinese tourists jammed popular sites as travel bounced back to pre-pandemic levels during a recent eight-day national holiday, giving a temporary boost to China’s flagging economy.”
China GDP: economy predicted to hit 2023 growth target, but action still needed to ensure long-term stability / SCMP (paywall)
“China is expected to achieve Beijing’s economic target for 2023, with a leading governmental think tank predicting 5.1 per cent gross domestic product (GDP) growth in the fourth quarter, but stronger countercyclical policies are still needed to ensure long-term stability.”
China’s economic gloom takes shine off its golden week / WSJ (paywall)
“Home sales were weaker than last year and consumers spent less than the government expected during the eight-day holiday.”

Banking
HSBC to acquire Citi’s retail wealth management business in China / Nikkei Asia (paywall)
“HSBC on Monday announced it is acquiring competitor Citi Group’s retail wealth management business in China, as the U.S. bank continues to wind down the Asian consumer franchise business that it started two years ago.”
HSBC/Citi: taking over China wealth unit is easy win / FT (paywall)
China Central Bank adds more gold amid elevated local premium / Caixin (paywall)
“China added to its gold reserves for an 11th straight month in September when a surge in local gold premiums drew market attention.”

U.S.-China tech war
China targets 50% growth in computing power in race against U.S. / Reuters
“China aims to boost the country’s aggregate computing power by more than 50% by 2025, according to a plan released by authorities on Monday, as Beijing tightens its focus on supercomputing and artificial intelligence innovations.”

Electric vehicles
Tesla’s Shanghai factory delivers fewer electric cars as upgrade ahead of new Model 3 launch disrupts production / SCMP (paywall)
“Tesla’s Gigafactory in Shanghai delivered 12 per cent fewer vehicles in September as the electric-car maker upgraded its mainland China plant ahead of the launch of a revamped Model 3.”
Europe or bust? A wary EU braces for a wave of made-in-China electric cars / SCMP (paywall)
“The home market flooded, manufacturers in China are ready to roll out their extensive offerings in the continent – the ‘last open market.’”

Cybercrime
Chinese in the crosshairs of ‘mushrooming’ transnational cybercrime / Caixin (paywall)
“Cybercrime scams and the related kidnappings have exploded since 2020, when the COVID-19 pandemic and subsequent economic downturn fueled the number of such crimes, including fake online romantic ploys, bogus investment pitches and illegal gambling schemes.”

Factories are looking for alternatives to China
China’s factory floor is moving—but not to India or Mexico / WSJ (paywall)
“In the contest to knock China off its perch as the world’s factory floor, countries such as Mexico, India and Vietnam face a formidable rival: China’s vast interior.”

Evergrande
Evergrande offshore bondholders surprised by debt restructuring regulatory hurdles / Reuters
“China Evergrande Group’s offshore bondholder group said on Monday it was surprised by the property developer’s recent announcement that its offshore debt restructuring plan failed to meet regulatory requirements.”
Creditors of China’s debt laden property giant Evergrande censure ‘botched efforts’ to get regulatory nod for fundraising / SCMP (paywall)
Evergrande EV unit resumes trading, share sale faces ‘uncertainties’ / Nikkei Asia (paywall)

Huawei
New Huawei tech-powered electric car launches with a bang / Caixin (paywall)
“A new electric car powered by Huawei’s autonomous driving technology has hit the market with a bang, attracting tens of thousands of orders in less than a month and giving the telecom-equipment giant a confidence boost as it pushes further into China’s highly competitive auto market.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Climate change
Rains revive Poyang Lake, offering hope after record dry season / Sixth Tone
“The turnaround is attributed to the heavy autumn rainfall in and around western China, signaling a bright season for migratory birds.”

Extreme weather
Typhoon Koinu turns south off China’s coast, headed for Hainan / Reuters
“Typhoon Koinu, which lashed Taiwan with rain and wind last week, on Sunday turned south over the sea off the coast of China’s Guangdong province towards the resort island of Hainan, with its intensity nearly unchanged from a day earlier.”

Taiwan weather satellite
Taiwan launches first locally made weather satellite with ‘groundbreaking’ navigation system / SCMP (paywall)
“Taiwan has launched its first locally made weather satellite, a milestone in its bid to catch up with global players in space programme development.”

Pet cloning
Pet cloning multiplies profits for Chinese startup Sinogene / Nikkei Asia (paywall)
“Two identical looking poodles frolic together and walk around a laboratory. But these are no ordinary pooches, they are clones created by Chinese startup Beijing Sinogene Biotechnology.”

POLITICS AND FOREIGN AFFAIRS:

Military
China near ‘breakthroughs’ with nuclear-armed submarines, report says / Reuters
“A submarine arms race is intensifying as China embarks on production of a new generation of nuclear-armed submarines that for the first time are expected to pose a challenge to growing U.S. and allied efforts to track them.”

Corruption
Disgraced ex-bank of China chairman expelled from party / Caixin (paywall)
Liú Lián’gě 刘连舸, “the disgraced former chairman of state-owned Bank of China…has been expelled from the Communist Party after being charged with using his position for a range of private perks, an official announcement shows.”

Taiwan
Taiwan opposition to discuss teaming up ahead of January election / Reuters
“Taiwan’s main opposition party the Kuomintang (KMT) said on Monday that it was discussing ways to team up with another opposition group, the Taiwan People’s Party (TPP), ahead of January’s presidential and parliamentary elections.”
China extends Taiwan trade probe, Taipei cries election interference / Reuters
“China on Monday extended an investigation into what it calls Taiwan’s trade barriers against it by three months to the eve of the island’s presidential election, prompting Taipei to accuse Beijing of attempting to interfere in the vote.”
Mainland China could delay complex trade probe to eve of Taiwan election / SCMP (paywall)
“Mainland China’s Ministry of Commerce has extended its timeline for a ruling on a Taiwan trade barrier investigation to as late as one day before the island’s presidential election next year – setting up a potential new hurdle in cross-strait relations.”
Taiwan blockade’s cost would be felt wider than COVID: U.S. official / Nikkei Asia (paywall)
“If China were to impose a blockade on Taiwan, the global economic impact would far outweigh the shutdowns caused by COVID-19, a senior U.S. official has warned.”

U.S.-China competition and tensions
U.S. senators meet with China’s top diplomat Wang Yi / Reuters
Biden says a meeting with Xi on sidelines of November APEC summit in San Francisco is a possibility / AP
“President Joe Biden said Friday that he could potentially meet with Chinese President Xí Jìnpíng 习近平 on the sidelines of next month’s Asia-Pacific Economic Cooperation summit in San Francisco.”
Chinese President Xi Jinping meeting US Senate majority leader Chuck Schumer in sign Xi may head to Apec summit in San Francisco / SCMP (paywall)
“Chinese President Xi Jinping is meeting with the visiting delegation led by US Senate Majority Leader Chuck Schumer, in the strongest sign that he may go to the Apec summit in San Francisco next month.”
China’s Xi meets U.S. lawmakers as November summit looms / Nikkei Asia (paywall)
Biden says meeting with Xi in November ‘a possibility’ / Nikkei Asia (paywall)
U.S., China both try to gain upper hand ahead of Biden-Xi summit / WSJ (paywall)
“Even as the U.S. and China are trying to repair ties ahead of an expected summit between President Biden and Chinese leader Xi Jinping, Washington and Beijing are jockeying for the upper hand.”
Xi-Schumer meeting raises hopes of smoother U.S.-China relations / NYT (paywall)

South Korea
South Korean firms get indefinite waiver on U.S. chip gear supplies to China / Reuters
“Samsung Electronics and SK Hynix will be allowed to supply U.S. chip equipment to their China factories indefinitely without separate U.S. approvals, South Korea’s presidential office and the companies said on Monday.”
South Korean firms get waiver on U.S. chip gear supplies to China / Nikkei Asia (paywall)
“Samsung Electronics and SK Hynix will be allowed to supply U.S. chip equipment to their China factories indefinitely without separate U.S. approvals, South Korea’s presidential office and the companies said on Monday.”

Palestine-Israel conflict
China opposes violence, attacks in Middle East crisis / Reuters
“China is very concerned about the recent escalation of the Palestinian-Israeli conflict and is opposed to violence and attacks, a Chinese foreign ministry spokesperson said on Monday.”
In Beijing, Schumer calls on Xi to support Israel after Hamas attacks / Reuters
“U.S. Senate Majority Leader Chuck Schumer on Monday called on Chinese President Xi Jinping to support Israel after deadly attacks by Hamas, adding he was ‘disappointed’ that Beijing showed ‘no sympathy’ for the country over the weekend.”
Israel expected ‘stronger condemnation’ of Hamas from China, Beijing embassy official says / Reuters
“Israel expected to see a ‘stronger condemnation’ of Hamas from China, a country it views as its friend, Yuval Waks, a senior official at the Israeli embassy in Beijing, said on Sunday.”
US Senate Majority Leader Schumer criticizes China for not supporting Israel after Hamas attack / AP
“U.S. Senate Majority Leader Chuck Schumer told Chinese President Xi Jinping in a rare meeting Monday that he was “very disappointed” by China’s failure to strongly condemn the recent Hamas attack on Israel and show sympathy for the country and its people.”
Some in Congress want to cut Ukraine aid and boost Taiwan’s. But Taiwan sees its fate tied to Kyiv’s / AP
“To Rep. Mike Collins, China is a bigger threat to the United States than Russia. So the Georgia Republican has voted against providing military aid to Ukraine as he advocates for doing more to arm Taiwan, the self-governed island that’s at risk of military aggression from Beijing.”
China-born Israeli woman Noa Argamani among those ‘kidnapped by Hamas terrorists’, embassy in Beijing says / SCMP (paywall)
“A Beijing-born Chinese-Israeli woman named Noa Argamani was among people abducted by Hamas as the militant group raided a music festival near the border with Gaza, the Israeli embassy in China has confirmed.”
China calls for ceasefire as casualties mount in Israel-Gaza conflict / Caixin (paywall)
“China has called for an immediate ceasefire between Palestinian and Israeli armed groups, after a surprise attack from Hamas on Israel and fierce clashes around the Gaza Strip left at least 1,100 people dead and thousands more wounded.”
Schumer criticizes China’s response to Israel in meeting with Xi / WSJ (paywall)
“Chinese leader Xi Jinping told Senate Majority Leader Chuck Schumer that he has every reason to pursue stable relations with the U.S. and no reason to make them worse, in dovish comments that help pave the way for a potential summit meeting with President Biden next month.”

Philippines
Philippine fishermen netted by South China Sea geopolitics over Scarborough Shoal: ‘we’re always being harassed’ / SCMP (paywall)
“The tussle between China and the Philippines has strangled Filipino fishermen’s access to the fishing grounds which have sustained their community for generations.”

Russia
US restricts trade with 42 Chinese entities over Russia support / Reuters
“The U.S. Commerce Department on Friday added 42 Chinese companies to a government export control list over their support for Moscow’s military and defense industrial base – support that includes the supply of U.S.-origin integrated circuits.”

SOCIETY AND CULTURE:

Feminism
Buzz-cut and brave: The Chinese women who defy ‘beauty duty’ / NYT (paywall)
“Some in China are rejecting high heels, makeup, diets and other norms centered on appearance that they see as costly and unfair to women.”

Lifestyle
Children? No thanks – it’s too expensive in China. Pets and partying are the future, say millennials and beyond / SCMP (paywall)
“As China’s birth rate drops amid soaring childcare costs, more millennials are choosing careers, pets and partying over marriage and children.”

Migrant workers
They made China’s economic dream a reality. Now, they struggle to survive / SCMP (paywall)
“Millions of migrants helped transform China from an agrarian economy into a manufacturing giant, but have yet to see major changes in their own living conditions.”

Asian Games
The Asian Games close in China as the hosts dominate the medal count. Nagoya, Japan, coming next / AP
“The Asian Games closed their 16-day run on Sunday at the 80,000-seat Olympic Sports Center Stadium with host nation China again in command as Premier Li Qiang ended a show aimed partly at winning the hearts of Asian neighbors.”
China keeps raking in the golds as it dominates Asian Games on home soil in Hangzhou / AP

Movies
China’s box office fizzles as consumers spend more on travel / Caixin (paywall)
“China’s film market unexpectedly cooled in early October, typically one of its most important seasons, as a dearth of blockbuster releases amid booming holiday travel demand kept people away from cinemas.”

Online shopping
Young Chinese turn to Taobao for psychological support / Sixth Tone
“On Taobao, young Chinese can find plenty of people willing to help them talk through their mental health struggles for a fee. However, it is unclear where companionship ends and counseling begins.”

Haidilao’s latest venture
Haidilao opens first campus store to students’ delight / Sixth Tone
“Haidilao, China’s most popular hot pot brand, has opened its first-ever store in a university canteen in the northwestern city of Xi’an.”