Low expectations

U.S. Commerce Secretary Gina Raimondo is in Beijing to discuss export controls and other key issues in a bid to restore relations between the world’s biggest economies.

• Today, the second day of a four-day trip, Raimondo met with Premier Lǐ Qiáng 李强 and Vice Premier Hé Lìfēng 何立峰.
• She has also held talks with Commerce Minister Wáng Wéntāo 王文涛 and Culture and Tourism Minister Hú Hépíng 胡和平.

Raimondo is the fourth Biden administration official to travel to China in recent months, including trips by Secretary of State Antony Blinken in June and Treasury Secretary Janet Yellen in July.

So far, there have been only small diplomatic gains:

• Yesterday, the two governments agreed to launch an “information exchange” on U.S. technology export controls.
• In discussions with the culture and tourism minister, the two sides reached an agreement for 14th China-U.S. Tourism Leadership Summit to take place in China next year.

Click here for details.

Barry van Wyk

Here’s what else you need to know about China today:

China launched an investigation into ex-medical reform official Sūn Zhìgāng 孙志刚 for “serious violations of discipline and law,” the Central Commission for Discipline Inspection (CCDI) announced in a brief statement yesterday.

Sun, the 69-year-old former Guizhou Party chief, was known for his record of reforming China’s notorious national healthcare system and has been credited for helping lift the province out of poverty from 2017 to 2020. He is the latest target in Beijing’s sweeping anti-graft campaign in the medical sector, which has ensnared hundreds of hospital bosses across the country.

China’s BYD reported a 204.7% surge in profit for the first half of this year of 10.95 billion yuan ($1.50 billion), compared to 3.59 billion yuan ($492.75 million) a year earlier, the new energy vehicle maker said in a stock market filing. The soaring figures were driven by a record amount of deliveries, cementing BYD’s status as China’s biggest-selling auto brand.

British Foreign Secretary James Cleverly will fly to China tomorrow to “strengthen channels of communication to further and protect British interests,” the U.K. government announced yesterday. It marks the first trip by a U.K. official in his position to the country in more than five years.

“The two sides will have in-depth communication on Sino-British relations and international and regional issues of common concern,” Chinese Foreign Ministry spokesperson Wāng Wénbīn 汪文斌 said.

The British Museum is facing mounting pressure in China to return Chinese artifacts, after reporting that around 2,000 items were “missing, stolen or damaged” two weeks ago. The museum is home to the biggest collection of Chinese antiquities in the West.

On August 27, Chinese state-run nationalist tabloid Global Times published an editorial asking for the museum to give back all Chinese cultural relics “free of charge.” Calls to return the items have since erupted on Chinese social media: Related hashtags are currently the top trending topics on Weibo, with a total of more than 50 million views as of this morning.

Chinese sextortion scammer accounts have flooded Twitter (now called X) since April after the platform introduced its pay-for-play blue-check “verification.” The scammers target Chinese-language users. Rest of the World has a new story on the trend, largely following earlier reporting by Wenhao Ma.

Chinese state media today focuses on pure propaganda: The People’s Daily’s front page story is about a new set of teaching materials, Introduction to Xí Jìnpíng’s 习近平 Thought on Socialism with Chinese Characteristics for a New Era, that will be used in classrooms from primary school to university.

Xinhua News Agency’s top story is an infographic introduced thusly: “The Communist Party of China is a party that seeks happiness for the Chinese people and rejuvenation for the Chinese nation. It is also a party that seeks progress for mankind and great harmony for the world.”

Millennials and younger Gen-Zers are having a feminist awakening in post-#MeToo China, despite a conservative backlash and a government increasingly hostile to the movement. Their unlikely hero is a 74-year-old Japanese provocateur.

• Chizuko Ueno (上野千鹤子, pronounced Shàngyěqiān Hèzi in Mandarin) is a 74-year-old sociologist and professor emeritus at the University of Tokyo.
• In Japan, she is known for being a provocateur who has been called the “four-letter scholar” (the Japanese for “vulva” can be written with four katakana characters) for her feminist writings. She has straight-up called Japan’s gender inequality a “human disaster.”

Her writings are resonating with Chinese women at a time when few are willing to speak for them.

• Although Ueno’s books have been translated into Chinese since as early as 1991, it was in 2021 that she went mainstream in China when her Understanding Feminism was published in the country.
• Since then, 17 books authored or co-authored by Ueno have been published in simplified Chinese by more than 20 state publishers and private companies.

Click through for Jin Zhao’s essay on Chizuko Ueno’s work and why she is having a moment in China.

Jin Zhao

Zimbabwe is one of only 14 countries that China considers an “all-weather friend.”

• Over the years, Chinese interests have been the power behind the Zimbabwean throne. Former president Robert Mugabe went further, describing China in 2006 as “our second home…a part of us.”
• The late Mugabe’s economically-disastrous Zimbabwe African National Union – Patriotic Front (ZANU-PF) once again triumphed in national elections last week.

Mugabe’s “Look East” policy in 2003 spurred the Zimbabwe-China relationship. The human rights abuses of Mugabe’s regime had led the EU, U.S., and U.K. to place sanctions on Zimbabwe from 2001, meaning the government had to look elsewhere for investment.

• Chinese companies have signed all sorts of big hydroelectric and coal-fired projects to solve Zimbabwe’s substantial electricity deficit, but they have been accused of building more than is necessary.
• ZANU-PF continues to promote China as a special friend, linking the nation’s recent successes both to China and ZANU-PF’s good relations with them.

To learn more about how these countries cooperate, click through to Alex Colville’s China Ties column.

Alex Colville

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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
Opinion: Why China is reluctant to launch a massive economic bailout / SCMP (paywall)
Professor Zhang Jun writes: “While China’s leaders are certainly aware of the ongoing economic slowdown, they may be estimating that the risk of a bailout is worse than the risk of inaction. Or perhaps they have more confidence in the domestic economy’s resilience against a global recession and believe that it will recover quickly on its own.”
China’s economic outlook: Pep talks up top, gloom on the ground / NYT (paywall)
“Beijing has characterized concerns about the economic slowdown as being inflated by Western critics. Widespread anxiety and pessimism paint a different picture.”
She rose from poverty as China prospered. Then it made her poor again. / NYT (paywall)

Rate cuts
China banks to cut rates on mortgages, deposits in stimulus push / Bloomberg (paywall)
“China’s state banks are throwing nearly all they have at seeking to boost consumer spending, directed by policymakers who are digging deeper into their toolkit to shore up growth in the world’s second-largest economy.”

Raimondo in China
U.S. raises concerns by Micron, Intel with China / Reuters
“U.S. Commerce Secretary Gina Raimondo discussed concerns about restrictions on American businesses including Intel and Micron Technology with Chinese Commerce Minister Wáng Wéntāo 王文涛 on Monday in a meeting where the two countries also agreed to start exchanging information on export controls.”
U.S. and China agree to new dialogue on trade, chip export curbs / Nikkei Asia (paywall)
“U.S. Commerce Secretary Gina Raimondo and Chinese Commerce Minister Wang Wentao agreed in Beijing on Monday to create a working group covering trade and investment issues, as well as to exchange information regarding semiconductor-related export controls.”
U.S., China agree on steps to ease trade tensions / WSJ (paywall)
“The U.S. and China agreed to set up new channels of communication for economic and commercial issues, Commerce Secretary Gina Raimondo said Monday, including a new bilateral forum to discuss export control measures to reduce misunderstanding of national security policies.”

China’s bid to attract overseas talent
China extends tax breaks for foreign workers until 2027 / Nikkei Asia (paywall)
“China will extend preferential tax policies for foreign nationals working in the country through to the end of 2027, the finance ministry said on Tuesday, in a boon to foreign firms struggling to attract talent post-COVID.”

Electric vehicles
BYD’s growth slows as China’s auto price war takes a toll / Caixin (paywall)
“BYD reported its weakest revenue growth in more than a year in a potential sign of the damage discounting has done in China, the world’s biggest auto market.”

TikTok
TikTok’s U.S. future still in limbo as commerce secretary visits China / NYT (paywall)
“Commerce Secretary Gina Raimondo’s visit to China is putting a spotlight on the future of TikTok in the United States, where criticism of the app and its ties to Beijing reached a fever pitch this year.”

AI
China mulls revoking degrees of students caught using AI / Sixth Tone
“Authorities in China are proposing to revoke students’ diplomas if they use artificial intelligence tools to help write their dissertations, in response to growing concerns over academic fraud as AI becomes more popular in the country.”

Real estate: Country Garden
Country Garden asks for more time to repay renminbi bond / FT (paywall)
“Country Garden has requested a 40-day grace period for a renminbi bond maturing next week, in the latest sign of distress at one of China’s largest private property developers.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Aftermath of Fukushima wastewater release
Japan asks China to urge citizens to halt harassment after start of Fukushima wastewater release / AP
“Japanese Prime Minister Fumio Kishida asked China on Monday to urge its citizens to halt acts of harassment, including crank calls and stone throwing at Japanese diplomatic facilities and schools, in response to Japan’s release of treated radioactive wastewater from the damaged Fukushima nuclear power plant.”
Japan warns China of WTO action as Fukushima spat worsens / Bloomberg (paywall)
“Japan may take World Trade Organization action against China, which banned all Japanese seafood imports in response to Tokyo’s release of treated wastewater from the wrecked Fukushima nuclear plant into the ocean.”

Regulating sugary drinks
Shanghai trials sugary beverage alert system in stores / Sixth Tone
“Shanghai has started piloting a beverage health alert system as part of a countrywide initiative to combat health problems related to excessive sugar intake.”

Renewable energy
China’s offshore wind sector gears up for life after subsidies / Caixin (paywall)
“A controversial decision to cease granting national-level subsidies for offshore wind power projects is unlikely to arrest the industry’s rapid growth, with experts expecting the domestic sector to continue its upward trend.”

Pandas
The panda party’s almost over / Foreign Policy (paywall)
“Three of Washington’s most beloved residents are heading back home, ending an era amid frostiness in U.S.-China relations.”

POLITICS AND FOREIGN AFFAIRS:

Corruption
China investigates former medical reform official Sun Zhigang for corruption as Xi’s anti-graft campaign targets hospitals / SCMP (paywall)
“Sūn Zhìgāng 孙志刚, a senior official once in charge of China’s medical reform and a former provincial party chief of the southwestern province of Guizhou, has been placed under a corruption probe.”

China’s legal system
China axes reform efforts aimed at lawsuits filed against state / Nikkei Aaia (paywall)
“China’s top legislative body has terminated the review of a draft amendment to the Administrative Procedure Law, state media reported, ending revision efforts that some said may have made it more difficult for citizens to sue the government.”

Taiwan
Taipei mayor leads delegation to Shanghai as Beijing ramps up pressure on Taiwan / SCMP (paywall)
“Taipei Mayor Wayne Chiang Wan-an (蔣萬安 Jiǎng Wàn’ān) called for peace and dialogue between Taiwan and the Chinese mainland as he led a delegation to Shanghai on Tuesday for a three-day visit aimed at easing cross-strait hostilities.”
Foxconn founder’s independent leadership bid complicates Taiwan opposition efforts / Caixin (paywall)
“Terry Gou (郭台銘 Guō Táimíng), founder of electronics manufacturer Foxconn, also known as Hon Hai Precision Industry Co. Ltd., officially announced his bid to run in the next Taiwanese leadership election scheduled for January 2024. The move adds Gou as a fourth contender in the already tense political race, challenging Democratic Progressive Party’s (DPP) Lai Ching-te (賴清德 Lài Qīngdé), the Kuomintang’s (KMT) Hóu Yǒuyí 侯友宜, and Taiwan People’s Party’s (TPP) Ko Wen-je (柯文哲 Kē Wénzhé).”

BRICS
Opinion: BRICS expansion is no triumph for China / Foreign Policy (paywall)
“But it is a warning shot for the West to end its strategic slumber in the global south,” argues C. Raja Mohan.

U.S.-China competition and tensions
State Dept picks veteran diplomat Lambert as top China policy official — sources / Reuters
“The U.S. State Department has picked veteran diplomat Mark Lambert as its top China policy official, five sources familiar with the matter said, bringing in new leadership for a part of the department that has faced staffing problems and criticism over its handling of China-focused initiatives.”

U.S. Secretary of Commerce in China
Gina Raimondo’s trip shifts tone and cools tensions, but is it a litmus test for U.S.-China relations as talks resume? / SCMP (paywall)
“Washington and Beijing have moved a step closer to managing bilateral tensions by setting up a joint working group for the first time in nearly three years, but analysts remain skeptical if commercial, trade and investment problems can be substantially alleviated and mutual trust be rebuilt.”
U.S. ‘does not seek to decouple’ from China, says Gina Raimondo / FT (paywall)
Raimondo stresses optimism on economic ties with China’s premier / Bloomberg (paywall)
Gina Raimondo says China visit aimed at protecting U.S. economic interests / WSJ (paywall)
Raimondo pushes de-risking in talks with Beijing / Foreign Policy

India
Manufacturers leaving China find a home with Indian startups / Caixin (paywall)
“In early 2020, as the pandemic was shutting down global commerce, a Pennsylvania company was having trouble getting its usual steel parts out of China. It stumbled on another possible option — in India.”

U.K.
Britain’s foreign secretary will visit China in an attempt to shore up ties and reduce tensions / AP
“Britain’s top diplomat, James Cleverly, is set to visit China on Wednesday, as the two countries attempt to shore up frayed ties.”
China urges Britain to build relationship based on mutual respect ahead of Foreign Secretary James Cleverly’s visit / SCMP (paywall)
“China has urged Britain to work with Beijing to promote world peace and develop a relationship based on mutual respect ahead of Wednesday’s visit to Beijing by Foreign Secretary James Cleverly.”
UK seizes on U.S.-China thaw as moment to reset ties with Beijing / Bloomberg (paywall)
How British businesses view China’s latest 24-point guidelines to attract foreign investment / Caixin (paywall)
“On August 14, China’s State Council released Opinions on Further Optimizing the Foreign Investment Environment and Increasing Efforts to Attract Foreign Investment (“24 Point Guidelines”). The announcement has been both welcomed and met with cautious optimism by British businesses.”

Saudi Arabia mandates Mandarin classes
Saudi Education Ministry directive for 2 weekly Chinese language classes / Saudi Gazette
“Saudi Arabia’s Ministry of Education has instructed all public and private secondary schools in the Kingdom to implement the program of teaching Mandarin Chinese language at the rate of two classes per week.”

China-Pacific relations
Vanuatu’s PM struggles for political survival amid U.S.-China tumult / Foreign Policy (paywall)
“Across the Pacific, local politics are being shaken by the echoing footsteps of distant giants. The United States and China are competing over small islands that could play an outsize role as logistical nodes in any future conflict — including the archipelago of Vanuatu and its roughly 320,000 citizens.”

SOCIETY AND CULTURE:

Soccer
Chinese soccer official taken away for investigation – state media / Reuters
“Senior Chinese soccer official and chairman of the Chinese Super League Liú Jūn 刘军 has been taken away by authorities for investigation, state-backed Beijing Youth Daily reported on Tuesday.”

Marriage
Chinese county offers ‘cash reward’ for couples if bride is aged 25 or younger / Reuters
“A county in eastern China is offering couples a ‘reward’ of 1,000 yuan ($137) if the bride is aged 25 or younger, the latest measure to incentivise young people to get married amid rising concern over a declining birth rate.”

Culture of Zhejiang Province
Heritage and history in Hangzhou / Caixin (paywall)
“The capital of East China’s Zhejiang province unveiled the Zhejiang Cultural Center on Tuesday. The site houses the Zhejiang Literature Center, the Zhejiang Intangible Cultural Heritage Museum, and expanded sections for the provincial museum and library. The comprehensive setup offers visitors an immersive experience to explore the region’s culture and history.”

Chinese influence online
Meta’s ‘biggest single takedown’ removes Chinese influence campaign / NYT (paywall)
“The campaign began at least four years ago and spanned thousands of accounts on Facebook, Instagram, TikTok, X, Substack, and Chinese websites, Meta said.”
China wants to run your internet / Foreign Policy (paywall)
“​​For the last two centuries, great powers — both nations and their associated firms — have fiercely competed to set the technical standards for leading technologies. By imposing their preferred standards, nations not only solve technical problems to their advantage but they also project power globally.”