China sends 103 warplanes to Taiwan

• Taiwan’s Ministry of Defense said it detected a “recent new high” of 103 People’s Liberation Army (PLA) aircraft, including more than 30 fighter jets, and nine vessels in the areas surrounding the island in the 24 hours up to September 18.
• Forty of the planes had crossed the median line in the Taiwan Strait — an unofficial barrier that separates the island from the mainland that the U.S. drew in 1954 — or entered Taiwan’s self-declared air defense identification zone (ADIZ).
• “The continuous military harassment by the Communist military can easily lead to a sharp increase in tensions and worsen regional security,” Taiwan’s defense ministry said in a statement. “We call on the Beijing authorities to take responsibility and immediately stop such destructive unilateral actions.”

The drills have come in the lead up to Taiwan’s presidential election in January 2024. China is using both carrots and sticks to influence the outcome:

• On September 12, Beijing issued a 21-point plan to turn parts of Fujian Province — situated on China’s southeast coast opposite Taiwan — into a demonstration zone for “integrated development” with Taiwan.
• That same week, China had sent 35 Chinese warplanes and more than 20 Chinese warships in the areas around the island, shortly after the U.S. and Canada had sailed their own warships through the Taiwan Strait.
• China has since announced that it will impose sanctions on U.S. aerospace and defense firms Northrop Grumman and Lockheed Martin for “deliberately supplying” arms to Taiwan.

Click here for all the details, including more on the role of the U.S. and a possible meeting between Xí Jìnpíng 习近平 and Joe Biden.

Nadya Yeh

China’s ex-Foreign Minister Qín Gāng 秦刚 was ousted over an extramarital affair, the Wall Street Journal reported today. Senior officials were allegedly told that he had been removed due to “lifestyle issues,” a common Communist Party euphemism for sexual misconduct, that led to the birth of a child in the U.S.

Qin, once considered one of Chinese leader Xí Jìnpíng’s 习近平 closest confidants, had mysteriously disappeared from the public eye back in July before being replaced by incumbent Wáng Yì 王毅, who held the job from 2013 until Qin replaced him in January this year.

The Chinese Foreign Ministry had initially claimed that Qin’s weeks-long absence was due to “health reasons.” But that did little to quell the flurry of rumors over his whereabouts — the most popular one being that he had been sidelined for having an extramarital affair with a TV journalist.

China and the European Union held their first High-level Digital Dialogue in three years yesterday in Beijing (readout from the EU). The talks, led by Vera Jourova, the EU Vice President for Values and Transparency, and Chinese Vice Premier Zhāng Guóqīng 张国清, focused on key issues including artificial intelligence and cross-border data flows. It comes less than a week after Beijing hit back at the EU’s probe into Chinese electric vehicle subsidies, stating that they were a “protectionist act” and warned that it would damage relations.

China’s top diplomat Wáng Yì 王毅 met with Russian counterpart Sergey Lavrov in Moscow yesterday to kick off his state visit from September 18–21. They discussed the importance of strengthening their international cooperation, including talks about BRICS, the group of emerging market countries, and Ukraine, according to the Chinese Foreign Ministry.

The meeting between the two foreign ministers is aimed at paving the way for a possible landmark visit by Russian President Vladimir Putin to China for the Belt and Road Forum for International Cooperation in October. It would be Putin’s first trip back to the country since the Winter Olympics in February 2022 — when he and his Chinese counterpart Xí Jìnpíng 习近平 vowed a “no limits” partnership less than three weeks before Russia invaded Ukraine.

Chinese Vice-President Hán Zhèng 韩正 and U.S. Secretary of State Antony Blinken had a “candid and constructive discussion” on the sidelines of the United Nations General Assembly in New York yesterday, according to the readout from Washington. The two sides spoke about the key issues such as Ukraine, North Korea, and Taiwan, while pledging to “maintain open lines of communication, including follow-on senior engagements in the coming weeks.”

Their sidelines meeting is the latest in a series of high-level talks between the two world powers ahead of a potential visit by Xi to San Francisco for an economic summit in November. Over the weekend, Wang Yi and U.S. National Security Adviser Jake Sullivan held what Washington described as “candid, substantive, and constructive” discussions in Malta.

China summoned German ambassador Patricia Flor to protest comments made by German Foreign Minister Annalena Baerbock, in which she described Chinese President Xí Jìnpíng 习近平 as a “dictator” in an interview with U.S. network Fox News on September 14. Chinese Foreign Ministry spokesperson Máo Níng 毛宁 also condemned Baerbock’s remarks as “extremely absurd, seriously infringing on China’s political dignity.”

China’s central bank and top foreign exchange regulator met with foreign firms yesterday, including representatives from JPMorgan, HSBC, Deutsche Bank, UBS, and Tesla. It’s the latest effort by Beijing to reassure overseas trade and investment and improve the business environment to support its economic recovery.

Chinese state media: The People’s Daily for the second day in a row leads with a story on the Eighth National Congress of China Disabled Persons’ Federation.

Xinhua News Agency’s top story is a propaganda infographic that is entirely free of news about three congratulatory letters sent by General Secretary Xi Jinping over the course of 10 years to the China Disabled Persons’ Federation, that repeatedly emphasized eight Chinese characters. The characters call for China to devote extra care and attention to disabled people: 格外关心，格外关注 géwài guānxīn, géwài guānzhù.

Jonathan Landreth has this interview.

Jonathan Landreth

• In videos that have made the rounds on Chinese social media, groups of teengers in cities like Ganzhou and Wuxi can be seen gulping down meals outside the school gate around lunchtime.
• Parents are complaining that the school meals are neither tasty nor nutritious, and, in some cases, have caused sickness in students.

Ready meals — characterized by their long shelf life and minimum effort to prepare — are not a novel concept in China.

• Fueled by a fresh burst of interest during the COVID-19 pandemic, pre-cooked food, or 预制菜 yùzhìcài, has enjoyed a surge in popularity among Chinese consumers in recent years.

But Chinese parents worry about a lack of transparency in schools’ choices of vendors and suppliers.

Zhao Yuanyuan

• The many business projects between China and Trinidad and Tobago. Seeing its oil draining away, Trinidad is seeking to become a logistics hub for international trade, capitalizing on its position between Latin America and the Panama Canal. So, naturally, China was one of its go-tos. Alex Colville has the latest China Ties column.

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
Middle class in China, U.S. fear losing status as key economic segment walk the tightrope / SCMP (paywall)
“On one side, the American middle class is shrinking as wages stagnate, and on the other, China’s key segment of society is suffering weak expansion amid an uneven economic recovery. Either way, post-pandemic problems are hurting the rank and file.”
Opinion: We shouldn’t call ‘peak China’ just yet / FT (paywall)
Martin Wolf writes: “What is the economic future of China? Will it become a high-income economy and so, inevitably, the largest in the world for an extended period, or will it be stuck in the ‘middle income’ trap, with growth comparable to that of the U.S.? This is a vital question for the future of the world economy. It is also no less vital for the future of global politics.”
China lifts temporary curbs on gold imports as renminbi recovers / FT (paywall)
“China’s central bank has lifted temporary curbs on gold imports that were imposed on some lenders in a bid to defend the renminbi but caused the price of the precious metal to rise in the country.”

EU-China EV war
German carmakers in the line of fire of possible EU-China trade war / FT (paywall)
“Prior to last week’s announcement of an anti-subsidy probe into Chinese electric vehicles from Brussels, German car industry executives had been hearing that a move was afoot.”

Investors
Investors temper pessimism on China, but bullish tilt remains distant prospect / Reuters
“Investor negativity on China is showing signs of shifting as money managers stop or slow cuts to their exposure, even if they see a durable bullish tilt in the market or sentiment as distant.”
China reassures assembled multinationals such as Tesla, HSBC as FDI and stocks dip / SCMP (paywall)
“In the aftermath of a massive sell-off in the A-share market and a spike in investor worries, China’s central bank brought in foreign banks and multinational firms for a meeting in which it pledged to ‘optimize’ its policy support.”

Chinese battery maker teams up with African fund
Chinese battery-parts maker, African fund plan $2 billion venture in Morocco / Bloomberg (paywall)
“CNGR Advanced Material Co., a Chinese maker of battery components, is joining forces with African private investment fund Al Mada to build an industrial base in Morocco.”

Foreign companies in China
Foreign firms in China say vague rules and tensions with Washington hurting business, surveys show / AP
“Foreign companies operating in China say tensions with Washington over technology, trade and other issues and uncertainty over Chinese policies are damaging the business environment and causing some to reassess their plans for investing in the giant market.”
U.S. business optimism about China outlook falls to record low / Reuters
“Political tensions and a slowing economy are sapping the confidence of U.S. businesses operating in China, with the number of companies optimistic about their five-year outlook falling to a record low, a survey published on Tuesday showed.”
Burner laptops and smaller profits: Firms portray their China challenges / NYT (paywall)
“Business groups chronicle the difficult environment inside China for U.S. and European companies navigating confusing regulations and an intensified security focus.”
China ‘mixed messages’ dent foreign business confidence: chambers / Nikkei Asia (paywall)
“Foreign businesses in China are urging authorities to improve the regulatory environment and ensure access to legitimate economic data as fresh survey results highlight deteriorating confidence.”

Data laws in China
EU says lack of clarity in China’s data laws is concerning / Reuters
“European Union businesses are concerned about China’s data laws, including their ‘lack of clarity’ and the ‘long processes’ that companies have to undergo, European Commission Vice President Vera Jourova said on Tuesday.”

Real estate and property development
Sunac, Country Garden debt deals bring respite for China’s property sector / Reuters
“Chinese developers Sunac and Country Garden brought some relief to the crisis-hit property sector by forging debt deals with creditors, but the outlook remained clouded by uncertainty about a recovery in home sales.”

New 5G Huawei phone
China’s Huawei set to re-enter mid-range 5G phone market -report / Reuters
“Huawei may launch a mid-range 5G phone as soon as October, China’s IT Times reported on Tuesday, in what would be another sign the technology giant has overcome U.S. sanctions.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Nuclear fusion
China launches ‘Kuafu’ nuclear fusion research facility, named after mythical giant, in quest to build ‘artificial sun’ / SCMP (paywall)
“China has launched its largest nuclear fusion research facility — nicknamed after a mythical giant — as it continues its quest to build an ‘artificial sun.’”

Human history
A new human species? Mystery surrounds 300,000-year-old fossil / Nature
“A chinless jawbone from eastern China that displays both modern and archaic features could represent a new branch of the human family tree.”

POLITICS AND FOREIGN AFFAIRS:

Qin Gang
China’s ex-foreign minister ousted after alleged affair, senior officials told / WSJ (paywall)
“Senior Chinese officials were told that an internal Communist Party investigation found former Foreign Minister Qín Gāng 秦刚 to have engaged in an extramarital affair that lasted throughout his tenure as Beijing’s top envoy to Washington, according to people familiar with the matter.”

Hong Kong
Beijing to require consulates in Hong Kong to hand over personal data of city-based staff by October 18 / SCMP (paywall)
“Beijing will require consulates in Hong Kong to hand over the personal data of all locally employed staff by next month, a move that will bring the city in line with how the central government treats diplomatic offices.”

Taiwan
Taiwan election: KMT’s Hou Yu-ih pledges strong military and talks to keep Beijing at bay / SCMP (paywall)
“With four months to go until Taiwan’s presidential election, opposition KMT candidate Hou Yu-ih (侯友宜 Hóu Yǒuyí) has promised a combination of deterrence and dialogue to reduce tension in the Taiwan Strait.”

U.S.-China competition and tensions
Xi says China, U.S. ‘should and must’ achieve peaceful coexistence / Reuters
“Chinese President Xí Jìnpíng 习近平 told two U.S. Flying Tigers veterans who fought for China during World War II that China and the U.S. ‘should and must’ achieve peaceful coexistence, offering further cues for both sides to lower persistent tensions.”

Germany
German companies must cut exposure to China, warns Bundesbank / FT (paywall)
“Germany’s central bank says an excessive dependence on trade with China is one of the main reasons why the country’s ‘business model is in danger,’ adding that high energy prices and labor shortages are also weakening Europe’s largest economy.”

Thailand
Thailand launches probe into Chinese rolled steel imports / Reuters
“Thailand has launched an investigation into imports of Chinese rolled steel for evading anti-dumping measures, the commerce ministry said in a statement.”

Russia
G7 ministers call on China to press Russia to stop aggression in Ukraine / Reuters
“The Group of Seven (G7) on Tuesday called on China to press Russia to stop its aggression in Ukraine after foreign ministers of the bloc met on the sidelines of the United Nations General Assembly and released a joint statement.”
Putin and Xi to meet in Beijing in October, Russia says / Reuters
“President Vladimir Putin will meet China’s Xi Jinping for talks in Beijing in October, Russia said on Tuesday, Putin’s first known trip abroad since an arrest warrant was issued against him over the deportation of children from Ukraine.”
Opinion: Why Xi’s words to Putin could be a moment for the history books / SCMP (paywall)
“‘Let’s drive the changes together,’ Xi said in a show of support for his ‘dear friend’ Vladimir Putin — days after the International Criminal Court issued an arrest warrant for the Russian leader over his alleged war crimes in Ukraine.”
China, Russia find common ground against U.S. ‘hegemony’ as top diplomats compare notes in Moscow / SCMP (paywall)
“China and Russia should continue to coordinate policies to tackle challenges from re-emerging unilateralism and hegemony, China’s top diplomat Wáng Yì 王毅 told his Russian counterpart Sergey Lavrov in Moscow on Monday.”

SOCIETY AND CULTURE:

China’s wedding industry
Fewer ‘I dos’ ruin the party for China’s $500 billion wedding industry / Reuters
“COVID wasn’t kind to wedding planners in China, where marriages are traditionally elaborate, expensive affairs, but the industry estimated at almost $500 billion is now facing a bigger threat: a plunge in the number of couples willing to tie the knot.”

Travel
Chinese travel demand back, Europe set to gain / Reuters
“Demand for foreign travel in China has reached its highest level in two years, the organizers of the ITB travel conference said on Tuesday citing a survey in which some 80% of respondents said they planned to travel abroad in the next 12 months.”

China’s pet industry
Clinical nutrition heats up in China’s pet health industry / Sixth Tone
“With an increasing number of elderly pet cats and dogs in China, veterinary experts are calling for better treatment of pets based on science about nutrition.”

History
The historian rewriting China’s understanding of the world / Sixth Tone
“Qián Chéngdàn 钱乘旦 is one of China’s best-known historians. In a new book, he and his team attempt to produce a comprehensive Marxist history of the world.”