Fat China

Editor-in-Chief

• In four decades, Chinese people went from using food coupons to eating fatty meals delivered via mobile phone apps. The country’s rapid economic rise also means that the foods that Chinese people eat are changing — and most of it’s unhealthy.

The expanding waistlines are part of a significant shift in diet for a country of 1.4 billion people — and most of it is unhealthy.

• Many traditional ways of eating are being replaced with diets that “include the adoption of a more Westernized food — which includes higher consumption of fast food, sugary beverages, processed snacks, and convenience foods that are high in salt, sugar, and oil, a sedentary lifestyle, and decreased physical activity levels encouraged by urbanization and increased screen time,” Yanzhong Huang, senior fellow for global health at the Council on Foreign Relations (CFR), told The China Project yesterday.
• Obesity, high cholesterol, and type 2 diabetes are on the rise across the country, fueling concern that Chinese peoples’ food choices may weigh on the country’s already strained healthcare system.

China’s changing diet is also posing a risk to the government’s aims to become self-sufficient in its food production, and of going carbon neutral by 2060.

Nadya Yeh

China will chart its own path to cut climate emissions, Xí Jìnpíng 习近平 told dozens of officials yesterday, at the same time that U.S. climate envoy John Kerry called for more efforts to combat climate change in a high-profile visit to China.

“China’s commitments are unswerving, but the path towards the goals as well as the manner, pace and intensity of efforts to achieve them should and must be determined by the country itself, rather than swayed by others,” Xi said.

Meanwhile, Kerry met with China’s Vice President Hán Zhèng 韩正 today on his final day of talks in Beijing, in a trip aimed at restarting stalled climate talks and the latest diplomatic push by Washington to reset fraying ties between the superpowers.

China’s first reusable spacecraft will be launched as soon as 2027, Yáng Lìwěi 杨利伟, the first Chinese astronaut in space and now a deputy chief of China Manned Space Engineering, said at a forum on Monday. It will be able to carry seven astronauts and “will also play a critical role in future construction of China’s space station and moon landing mission,” according to Yang.

China named Dǒng Jīngwěi 董经纬 as the new head of Beijing’s national security office in Hong Kong, according to an official statement released yesterday. Dong, 59, is a counterespionage veteran and former top official to the Chinese Ministry of State Security (MSS).

The Hong Kong government “will continue to work and communicate closely with the Office for Safeguarding National Security of the CPG in the HKSAR and to do its utmost in implementing the Hong Kong National Security,” the city’s Chief Executive John Lee (李家超 Lǐ Jiāchāo) said upon the appointment.

Morgan Stanley is moving more than 200 technology developers out of China to Hong Kong and Singapore, Bloomberg reported today, after Beijing issued a sweeping law to guard its massive troves of data and other sensitive information from “national security threats.”

Chinese state media: Party paper the People’s Daily’s print edition is all Xi Jinping on the front page, with a piece on Xi’s speech at a conference on ecological protection, an article on Xi’s “important exposition on water control”, and a third on Xi’s meeting yesterday with Algerian President Abdelmadjid Tebboune.

There is, of course, more Xi on the website of state news agency Xinhua: The lead story is about China’s military, ​​headlined “Strive to strengthen the army under the banner of the Party — A review of the party leadership and Party building of the people’s army in the new era under the leadership of the Party Central Committee with Comrade Xi Jinping as the core.”

Xunhua’s English website has a more foreigner-friendly top story: China vows to spur growth of private economy.

• A much tougher draft of the document was leaked to the press last November, and it was expected that the final strategy would be defanged by the Chancellery before a final draft was published. That is indeed what happened: several proposed tools for curbing economic dependence were missing, and the language significantly softened.
• Chinese media was mostly sanguine in their reaction. One commentary, from an official Xinhua account, assesses that the strategy “finds it hard to conceal its anti-China tone,” but says at the end that “China and Germany have no fundamental conflict of interest.”
• As for Beijing, besides the mandatory note that “China firmly rejects any interference in its own internal affairs,” Beijing’s official message was that “China is more partner than rival for Germany.”

Despite the changes, the German strategy document still retains much of the original. Even where the language has been softened, most of the key points remain. And while it is only a position paper, there is reason to believe that it marks an important milestone and irreversible shift in wider European relations with China.

• It’s possible that the document will help secure a European consensus that China is more “competitor” and “systemic rival” than partner. It may also pave the way for other EU states to publish their own “China strategies.”
• As for Germany, government officials now have solid terms of reference for how to deal with China. Making the paper public, and presenting it on stage with coalition partners, conveys a sense of legitimacy.

Jacob Mardell has the details.

Jacob Mardell

• The more radical organization was the Workers’ General Headquarters, which had arisen out of the influx of Red Guards into the city. This group — allied with workers — made a failed attempt to overthrow the local municipal government in Wuhan in early 1967.
• The military established its own popular organization, the Million Heroes. The two sides waged a propaganda war for the hearts and minds of Wuhan’s people, which soon spilled over into physical violence.

We often want history to make sense when we look back at it with the benefit of hindsight, for there to be clear-cut good and bad guys, for us to know which decisions were right and which could have been different. But This Week in China’s History reminds us this isn’t always the case.

• Máo Zédōng 毛泽东 decided to back the more radical Workers’ Headquarters, and declared that the Million Heroes — and by extension the People’s Liberation Army — would have to confess its errors. Rumors soon flowed out that the leadership had turned on the army.
• Riots broke out in Wuhan. As many as 1,000 people were killed, the PLA-backed Million Heroes took control of the city, and Mao fled.

As was often the case during the Cultural Revolution, every action had a reaction. In Wuhan, there would be even more deadly repercussions, writes James Carter.

James Carter

• A much tougher draft of the document was leaked to the press last November, and it was expected that the final strategy would be defanged by the Chancellery before a final draft was published. That is indeed what happened: several proposed tools for curbing economic dependence were missing, and the language significantly softened.
• Chinese media was mostly sanguine in their reaction. One commentary, from an official Xinhua account, assesses that the strategy “finds it hard to conceal its anti-China tone,” but says at the end that “China and Germany have no fundamental conflict of interest.”
• As for Beijing, besides the mandatory note that “China firmly rejects any interference in its own internal affairs,” Beijing’s official message was that “China is more partner than rival for Germany.”

Despite the changes, the German strategy document still retains much of the original. Even where the language has been softened, most of the key points remain. And while it is only a position paper, there is reason to believe that it marks an important milestone and irreversible shift in wider European relations with China.

• It’s possible that the document will help secure a European consensus that China is more “competitor” and “systemic rival” than partner. It may also pave the way for other EU states to publish their own “China strategies.”
• As for Germany, government officials now have solid terms of reference for how to deal with China. Making the paper public, and presenting it on stage with coalition partners, conveys a sense of legitimacy.

Jacob Mardell has the details.

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

BUSINESS AND TECHNOLOGY:

Investors anticipate stimulus
China’s bad first half gets investors hopeful and interested / Reuters
“​​China’s disappointing first half has the economy ripe for some help, and investors are preparing to ride an expected short-term wave of stimulus, even if structural problems look to hold back a sustainable rally.”

Digital yuan
China’s digital yuan transactions seeing strong momentum, says cbank gov Yi / Reuters
“Transactions using China’s digital yuan hit 1.8 trillion yuan ($249.33 billion) at end-June, the country’s central bank governor Yì Gāng 易纲 said on Wednesday, marking a jump from over 100 billion yuan as of August last year.”

Flying cars
Shenzhen partners with flying-car makers in drive to create urban air mobility hub / Caixin (paywall)
“Two Chinese manufacturers of electric vertical takeoff and landing (eVTOL) aircraft are partnering with a Shenzhen district government to trial their flying vehicles, as the southern Chinese city strives to become a ‘low-altitude economic hub.’”

Luxury industry
Why China could become the luxury industry’s next sore spot / Reuters
“The luxury goods industry has relied heavily on China and North America for growth in recent years, but latest Chinese economic figures and a disappointing sales update from Cartier-owner Richemont suggest both markets may be starting to slow.”

AI
Huawei launches AI for commercial use in mining sector / Caixin (paywall)
“Huawei Technologies Co. Ltd. on Tuesday launched the first commercial use of its artificial intelligence (AI) large language model (LLM) Pangu for the mining industry, as it seeks to make use of the next-generation technology to improve the sector’s safety and productivity.”

Energy storage
Five things powering China’s energy storage boom / Caixin (paywall)
“China’s energy storage sector is growing rapidly, with planned capacity based on newly published tenders of projects topping 19 gigawatts (GW) for the first five months of this year, up 93.5% from the same period last year, according to a report released late last month by Haitong Securities Co. Ltd.”

U.S.-China tech war
China hits out at ‘a certain country’ it says is hindering the tech development of others / SCMP (paywall)
“China accused ‘a certain developed country’ of trying to create ‘exclusive clubs’ and barriers for others advancing their technologies, at a United Nations Security Council meeting on artificial intelligence.”

Fast fashion
Opinion: Shein/Temu: ultra-fast fashion lacks durability for investors too / FT (paywall)
“Temu and Shein have rattled the garment industry with their $2 swimsuits and $10 shoes. Now the rivalry between the two Chinese online platforms has come to the fore. Temu is suing Shein in the U.S.”

China’s slow economic recovery
China should not hesitate on needed economic stimulus / Nikkei Asia (paywall)
“Weak demand is increasing the risk of the Chinese economy falling into deflation, and there is little reason to be optimistic. The administration of President Xí Jìnpíng 习近平 should act quickly to take the necessary measures to prevent the economy from stalling.”

Cryptocurrency
China’s crypto crimes expose capital-control loopholes, as millions in virtual currency seized / SCMP (paywall)
“Chinese police appear to have stepped up their crackdown on cryptocurrency-related crimes in recent months – and their big seizures in a few prominent cases show how people are using virtual currency to bypass Beijing’s strict controls over the yuan.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Climate change
Xi Jinping underlines China is on its own carbon reduction path during US climate envoy John Kerry’s Beijing visit / SCMP (paywall)
“China’s path to reducing carbon emissions should be determined by China and not controlled by anyone else, President Xí Jìnpíng 习近平 told dozens of officials, at the same time as US climate envoy John Kerry is in Beijing seeking consensus on global warming.”
Xi says China will act on climate goals at its own pace / NYT (paywall)

Disappearing COVID-19 data
Official data hinted at China’s hidden COVID toll. Then it vanished. / NYT (paywall)
“Epidemiologists say a rise in cremations in an eastern province was the latest indication that the country’s official death toll from COVID is a vast undercount.”

POLITICS AND FOREIGN AFFAIRS:

Corruption
Former top provincial lawmaker gets life for taking 1 billion yuan in bribes / Caixin (paywall)
“Sūn Guóxiāng 孙国相, a former top provincial lawmaker in Northeast China’s Liaoning province, has been sentenced to life in prison for taking nearly 1 billion yuan ($139 million) in bribes, according to a court ruling.”

Hong Kong
Hong Kong’s security appointee signals resolve for tight control / Reuters
“China’s appointment of a top intelligence official to run Hong Kong’s national security regime underscores its determination to tighten its grip on the financial hub, according to diplomats and analysts.”
Tricked into trafficking? Hong Kong drug mules face uphill fight to prove innocence, with most spending years in prison before release / SCMP (paywall)
“International syndicates are using more couriers to smuggle drugs into Hong Kong, authorities say.”

Taiwan
Taiwanese presidential contender William Lai’s planned visit to US leads Beijing to lodge formal protest / SCMP (paywall)
“Beijing has lodged a formal protest with Washington over a planned visit to the United States next month by Taiwanese presidential hopeful and vice-president William Lai Ching-te (賴清德 Lài Qīngdé), vowing ‘strong and resolute’ action in response.”
Beijing says Taiwan presidential hopeful William Lai will sell out the island to the U.S. / SCMP (paywall)

U.S.-China competition and tensions
U.S. needs ‘Kissinger-style wisdom’ in its China policies – Wang Yi / Reuters
“The United States needs ‘Kissinger-style diplomatic wisdom’ in its policies towards China, top Chinese diplomat Wáng Yì 王毅 told the former U.S. state secretary in Beijing on Wednesday, as bilateral ties languished at historic lows.”
China looks to Kissinger meeting to improve strained relations with U.S. / AP
Kissinger, Chinese defense minister discuss Sino-U.S. relations / Nikkei Asia (paywall)
U.S. hopes China won’t take ‘provocative’ action over transit stops by Taiwan VP / Reuters
“There is no reason for China to take ‘provocative’ action in response to brief visits to the United States next month by Taiwan Vice President William Lai, the top U.S. diplomat in Taipei said on Wednesday.”
Florida ban on property purchases by citizens of China and some other countries is challenged / AP
“A new law that bans citizens of China and some other countries from purchasing property in large swaths of Florida violates federal housing discrimination laws, a lawyer representing Chinese nationals living and working in the state told a federal judge Tuesday.”

• Also on The China Project: Texas wants to repeat history with a bill to ban Chinese immigrants from owning property

Opinion: China and the revenge of geopolitics / FT (paywall)
Edward Luce writes: “The world is moving into a new type of great power rivalry. But comparisons with its 19th century precursor are at best misleading. That long period of so-called Pax Britannica ended in the tragedy of the first world war. Today’s world cannot afford a direct conflict between the US and China, its two competing giants.”
China tries to reassure U.S. amid speculation around missing foreign minister / WSJ (paywall)

Mexico
Chemicals for Mexican fentanyl not from China, embassy in Mexico says / Reuters
“Precursor chemicals used by Mexican cartels to make the deadly opioid fentanyl do not come from China, its embassy in Mexico said on Tuesday, rejecting U.S. officials’ accusations.”

Laos
China’s grand vision for a vast rail network transforms a neighboring country / WSJ (paywall)
“A few years ago, this small town on the border with China was a few dusty lanes surrounded by tropical forests. Now, a nearly $6 billion Chinese-built railroad cuts through it—and a city is rising.”

Maldives
Maldives’ nascent presidential race keeps India and China on edge / Nikkei Asia (paywall)
“The looming contest highlights the rise of geopolitics as an increasingly critical factor in Maldivian elections, alongside domestic issues, as India and China vie for influence in a country best known for its idyllic island resorts.”

SOCIETY AND CULTURE:

Fashion
Chinese state media slams ‘hot kids style’ in children’s fashion / Sixth Tone
“The trend, which promotes microskirts, backless shirts, and crop tops among young children, has sparked concerns about the sexualization of minors.”

Tourism
Journalists not welcome: Yunnan travel agencies bar ‘sensitive occupations’ / Sixth Tone
“Criticized for their high-pressure tactics to get clients to make purchases, travel agencies in Yunnan province are barring journalists from taking their tours to suppress negative coverage.”

Education
Major setbacks: Students struggle with scrapped majors / Sixth Tone
“Arriving on campus believing they were the next hotshots, students who see their majors being discontinued are instead feeling the chill for their job prospects.”

Pop culture
How Korea quietly reshaped Chinese pop culture / Sixth Tone
“Even in the face of geopolitical tensions, the Korean culture wave shows no signs of receding.”