The comrade from Kathmandu

• During his visit, Nepal reiterated its “firm commitment to the one-China principle” regarding Taiwan, as well as stating that “Tibet affairs are China’s internal affairs.”
• China meanwhile “firmly supports Nepal in upholding its independence, sovereignty and territorial integrity, and respects and supports Nepal’s independent choice of social system and development path that suits its national conditions.”

The visit comes at a complicated time for China-Nepal relations:

• China wants to develop a positive relationship with the Himalayan nation as its testy relations with India continue to simmer over territorial disputes.
• But Nepalese officials themselves have in the last month spoken out against a new official Chinese map that showed territories Nepal claims as part of India, and there are disagreements between Kathmandu and Beijing on Belt and Road projects.

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Eduardo Jaramillo

A Chinese TV host dropped his defamation lawsuit against his #MeToo accuser. Zhū Jūn 朱军, a high-profile figure on Chinese state television, has “voluntarily withdrawn” his case against Zhōu Xiǎoxuán 周晓璇, the feminist advocate who grew to prominence in 2018 after she posted a 3,000-word essay on social media in which she accused him of sexual harassment.

No settlement and no negotiation had taken place between the two sides, according to Zhou. Her initial case against him had been thrown out by a Beijing court back in September 2021, which dismissed it because Zhou didn’t meet the burden of proof necessary to establish her sexual harassment claims against Zhu. The two have since been embroiled in tit-for-tat lawsuits.

The U.S. added 28 entities, 11 of which were Chinese, to its trade blacklist, the Department of Commerce announced yesterday. China-based Asia Pacific Links was among several companies from Finland, Germany, and Russia, accused of supplying a Russian firm with parts to make drones for Moscow’s war effort in Ukraine. Another 10 Chinese companies, along with firms from Russia, Pakistan, Oman, and the United Arab Emirates (U.A.E.) were also sanctioned for their involvement in “activities contrary to the national security or foreign policy of the United States.”

China urged the EU to “exercise restraint” during talks between Chinese Vice Premier Hé Lìfēng 何立峰 and European Union’s chief trade negotiator Valdis Dombrovskis yesterday, over what Beijing called the bloc’s “protectionist” new anti-subsidy investigation into Chinese electric vehicles. The two sides are considering a “mechanism” to improve transparency on supply chains for raw materials, according to the EU statement.

“We stand at a crossroads,” Dombrovskis said in a speech at Tsinghua University yesterday. “We can choose a path towards mutually beneficial relations. One which is based on open, fair trade and investment…Or we can choose a path that slowly moves us apart.”

Chinese authorities have detained Evergrande’s ex-CEO and CFO, Xià Hǎijūn 夏海钧 and Pān Dàróng 潘大荣, Caixin reports. The two former bosses of the real estate behemoth had resigned last year over their alleged involvement in a plan to funnel $2 billion into Evergrande’s coffers from one of its subsidiaries.

It is the latest in a series of setbacks faced by the embattled property developer. Yesterday, Evergrande’s stocks plummeted as much as 25% after announcing that it would no longer be able to issue new notes, casting further doubt over the future of its debt restructuring plan.

Alibaba plans to take its logistics arm public in the world’s second-largest IPO this year, spinning off Cainiao for its first-time share sale aimed to raise at least $1 billion, according to a Hong Kong exchange filing today. Alibaba will continue to hold over 50% of Cainiao as a subsidiary, down from the 69.54% it owned as of Tuesday.

Chinese state media: The whole front page of the People’s Daily is old news about the visit last week of Xí Jìnpíng 习近平 to Zhejiang Province.

Xinhua News Agency leads with a piece on Xi Jinping issuing “important instructions on further promoting the construction of free trade pilot zones.”

There are no specific instructions mentioned, but the article does say that “comrades from relevant departments of the central and state agencies and the provinces, autonomous regions and municipalities where [China’s] 21 pilot free trade zones are located attended the symposium,” including those from the Ministry of Finance, the People’s Bank of China, the General Administration of Customs, and Shanghai, Tianjin, Fujian, Liaoning, Sichuan, and Guangxi.

• Hou aimed to show he’s a stable and pragmatic leader with well-defined policy guidelines designed to help navigate thorny relations between the U.S., China, and Taiwan.
• Hou spoke of his “3D Strategy”: the first “D” stands for “deterrence.”

Close observers of Taiwanese politics noticed a shift that emerged from Hou’s visit.

• The leader of the Kuomintang (KMT) party, historically the Taiwanese political party most willing to engage with Beijing, signaled clearly during his visit an openness to tougher cross-strait policies in the wake of changing domestic and international views on China.
• Hou’s rhetoric is a departure from KMT candidates who ran in 2020 and 2016.

The shift could mark a more permanent transformation in Taiwanese politics, with implications for the triangular relationship between China, the U.S., and Taiwan, reports Ray Wang.

Ray Wang

• The lawsuit was filed by the grandparents of Liú Xuézhōu 刘学州, who took his own life in 2022 while studying at a Chinese university.
• The then 17-year-old was thrust into the spotlight in 2021 after a social media search reunited him with his biological parents, who then abandoned him again.
• The suit accused two internet users with sizable followings on Weibo of having a particularly harmful influence on the public opinion about Liu by spreading misinformation about him.

China has been taking steps to rein in online abuse in recent years, as a string of deaths have led to passionate calls for legal changes to tackle cyberbullying.

• On the same day that the first court hearing of Liu’s case was held, China’s top three legal bodies released a new set of guidelines on cyberbullying.
• The guidelines suggest that law enforcement bodies should consider criminal charges when online insults and defamation are considered to be “seriously endangering the social order,” such as in cases where the victim suffers mental distress or commits suicide.

Click here for more details.

Zhao Yuanyuan

• Deploying sovereign wealth on behalf of state power has been one of the keys to China’s global rise. In the latest installment of China Book Chats, Zongyuan Zoe Liu talks to Christopher Marquis about her new book, and how China has doubled down on financial statecraft and become a global financier of surprising ambition.

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

BUSINESS AND TECHNOLOGY:

China’s plans to revive northern industries
Slowing, graying and in debt, can China’s industrial heartland be revived? / NYT (paywall)
“China, facing an economic slump, wants to make its industrial northeast more productive, turning to policies that some economists say have outlived their time.”

U.S.-China tech war
Tech remains central in ‘hot peace’ between China and U.S. / FT (paywall)
“Read the headlines and the picture is clear: geopolitical tensions between the U.S. and China have risen alarmingly and the world’s two biggest economies are decoupling fast. U.S. investors have been hearing that message and knocked $200 billion off the stock market value of Apple this month following reports that Beijing had banned the use of the U.S. company’s phones by state officials.”

Europe’s electric vehicle war with China
China’s commerce chief unhappy at EU’s anti-subsidy probe / Reuters
“China’s commerce minister expressed strong dissatisfaction in a weekend meeting with the European Union’s trade chief that the bloc will launch an anti-subsidy investigation over China’s electric vehicles, his ministry said on Tuesday.”
Tesla to face EU anti-subsidy probe over China exports / Reuters
“Tesla and European carmakers that export from China to the EU will be part of the bloc’s probe into whether the country’s electric vehicles industry is receiving unfair subsidies, the Financial Times reported on Tuesday, citing Brussels’ most senior trade official.”
Tesla’s China exports in crosshairs of EU anti-subsidy probe / Bloomberg (paywall)
“One automaker is looming larger than any other in the investigation of electric vehicles flowing into the European Union from China: Tesla Inc.”

Other electric vehicle news
Southwest province has big EV battery dreams, Qualcomm mulls China layoffs / Caixin (paywall)
“Southwest China’s Sichuan Province has unveiled a plan to become a ‘world-class lithium battery production base’ within the next five years, capitalizing on its bountiful lithium reserves and hydropower resources.”
Ford tried to sell the electric Mustang to China the Tesla way — it didn’t work / WSJ (paywall)
“Detroit automaker changes its China strategy after EV sales in the country suffer from marketing, sales missteps.”

Stock market restrictions
Big shareholder in China? Don’t try selling / WSJ (paywall)
“Chinese regulators have taken a novel approach to prop up the country’s faltering stock market by banning many companies’ biggest shareholders from selling.”

Evergrande
Former Evergrande CEO and CFO face probe, sources say / Caixin (paywall)
“Multiple current and former executives of China Evergrande Group and its subsidiaries have been swept up by investigations, as authorities look into whether the embattled conglomerate has violated rules over how funds can be used.”
China Evergrande has ‘no bullets’ left as crisis lights up mainland social media about end-game for fallen billionaire Hui Ka-yan / SCMP (paywall)
“The debacle at China Evergrande Group is heating up some of the nation’s social media platforms with discussions about its fate. Some argued the penny stock is worth a punt before another bid to beat the drop. Others said bankruptcy may be inevitable.”
Chinese government probe casts new doubt over Evergrande restructuring / FT (paywall)
“Evergrande, the struggling Chinese property developer, has cast serious doubts over the future of its debt restructuring plan, saying an ongoing official investigation will prevent it from issuing new notes.”

Alibaba
China’s Alibaba kicks off restructuring with plan to list logistics arm in Hong Kong / Reuters
“Alibaba Group on Tuesday kicked off its restructuring with a plan to list its logistics arm Cainiao in Hong Kong that would make the unit the first to be separated since the Chinese ecommerce giant announced its break-up six months ago.”
Alibaba’s Cainiao files for $1 billion IPO, helping Hong Kong to land the world’s second-biggest listing of 2023 / SCMP (paywall)
Alibaba’s logistics arm files for $1 billion-plus IPO / Bloomberg (paywall)

Hong Kong economic indicators
Law firm layoffs rise in Hong Kong as China business slows / Nikkei Asia (paywall)
“Foreign law firms in China and Hong Kong are shedding staff at a rapid pace, with one company laying off at least 20 lawyers this year as China’s economic downturn and geopolitical tensions continue to squeeze business.”

SCIENCE, HEALTH, AND ENVIRONMENT:

Agriculture
China produces world record peanut test crop amid national food security push / SCMP (paywall)
“In a coup for China’s push for food security, a research field in the eastern province of Shandong has hosted a world record-breaking peanut yield, state media reported on Saturday.”

POLITICS AND FOREIGN AFFAIRS:

Pushback against public security excesses
Beijing should be cautious about going too far on China’s public security, academic tells forum / SCMP (paywall)
“Beijing should beware of blind spots as it pursues its security objectives and be more mindful of the impact of its policies on society’s most vulnerable, an academic with an official think tank said.”

China’s Global South diplomacy
China seeks tighter developing-nation ties as decoupling hedge / Nikkei Asia (paywall)
“China unveiled a new diplomatic approach on Tuesday aimed at strengthening relations with developing countries as a bulwark against ‘drawbacks’ stemming from foreign companies decoupling from Asia’s biggest economy.”

Corruption
Former chairman of Chinese Football Association charged with bribery-state TV / Reuters
“Chinese authorities have charged the former chairman of the national football association with bribery as part of an anti-corruption investigation into the soccer federation, state broadcaster CCTV reported on Tuesday.”
Investigator at China’s top graft buster turns himself in / Caixin (paywall)
“A senior official of China’s anti graft watchdog overseeing investigations of corruption among financial regulators and state-owned enterprise executives turned himself in to authorities over suspected serious disciplinary violations.”

APEC
China says it’s talking to the U.S. about Xi attending APEC summit / Bloomberg (paywall)
Wáng Yì 王毅 “says his nation will make an announcement in due time.”
China’s top diplomat calls on US to host an APEC summit that is cooperative, not confrontational / AP
“China’s foreign minister called on the U.S. on Tuesday to do what it can to host a cooperative meeting of Asia-Pacific leaders in November, criticizing those who seek to play up a confrontation between democracy and authoritarianism.”

Hong Kong media repression
China urges countries to boycott Hong Kong media freedom event — document / Reuters
“China is pressing countries to boycott a British-organized event at the United Nations in Geneva on media freedom in Hong Kong with the son of a jailed media tycoon [Jimmy Lai (黎智英 Lí Zhìyīng)], a letter showed and four diplomats confirmed on Tuesday.”

U.S.-China competition and tensions
One view: Behind China-U.S. tensions are misunderstandings, author says / NYT (paywall)
“In an interview, the economist Keyu Jin says much of the world is asking the wrong questions — and so is drawing outdated conclusions.”
Cultural decoupling from China is not the answer / Foreign Policy (paywall)
“‘De-risking’ — minimizing the danger of national security threats, economic shocks, and diplomatic setbacks — has become the watchword of U.S. relations with China. Officials including National Security Advisor Jake Sullivan insist that to de-risk is not to ‘decouple.’ They acknowledge that China and the United States, while locked in economic, political, and ideological rivalry, are also interdependent and must continue to collaborate on trade, climate change, public health, nuclear security, and more.”

Italy and the Belt and Road
Xi seeks stable ties even as Italy plans to exit investment pact / Bloomberg (paywall)
“Chinese President Xí Jìnpíng 习近平 pledged to promote ‘healthy and stable’ relations with Italy even as the European nation plans to exit his signature Belt and Road Initiative.”

Nepal
Nepal, China sign 12 agreements to enhance bilateral cooperation / NDTV
“Nepal PM Pushpa Kamal Dahal and Chinese Premier Lǐ Qiáng 李强 comprehensively reviewed the bilateral relations and expressed satisfaction over the close and cordial ties subsisting between the two countries”

Philippines and South China Sea tensions
What is Scarborough Shoal in the South China Sea and why are China and the Philippines disputing it? / Reuters
“The Philippines on Tuesday vowed not to back down against a Chinese move to block its fishermen from a hotly contested area of the South China Sea, as Beijing warned against provocations after Manila severed its floating barrier.”
Philippines aims to ‘take control again’ of shoal from China amid rising tensions / SCMP (paywall)
“The Philippines is exploring multi-law enforcement efforts to enter a fish-rich shoal in the contested South China Sea after it removed a ‘floating barrier’ placed by Beijing’s coastguard there as maritime tensions between the two sides remain elevated.”
China tells Philippines not to ’cause trouble’ in South China Sea / Nikkei Asia (paywall)
Philippines removes Chinese floating barrier in South China Sea / WSJ (paywall)
Tensions with China cross a new line in the South China Sea / NYT (paywall)

EU
EU commissioner calls for more balanced trade with China and warns that Ukraine could divide them / AP
“The European Union’s trade commissioner called for a more balanced economic relationship with China on Monday, noting an EU trade deficit of nearly 400 billion euros ($425 billion), while also warning that China’s position on the war in Ukraine could endanger its relationship with Europe.”

China schmoozes East Asia
China, Japan, South Korea agree to revive summit at ‘earliest convenient time’ / SCMP (paywall)
“The foreign ministers of China, Japan and South Korea will soon meet and a long-stalled summit will resume at the ‘earliest convenient time,’ the Chinese foreign ministry said on Tuesday.”
China, Japan, South Korea agree to hold trilateral summit / Nikkei Asia (paywall)
“China, Japan and South Korea will soon hold their first trilateral summit since 2019, signaling a restart of diplomacy among the East Asian countries, South Korea’s Foreign Ministry said.”

SOCIETY AND CULTURE:

Urban planning
How residents are rebuilding Shanghai’s urban communities / Sixth Tone
“In 2016, Shanghai became the first Chinese city to commit to the 15-minute city approach to urban planning. Increasingly popular around the world, the 15-minute city model seeks to ensure all residents can meet their everyday needs — groceries, work, and play — within a 15-minute walk of their homes.”

LGBTQ
Uncertainties abound after landmark Hong Kong court ruling on same-sex partnerships. What exactly will change for couples, and when? / SCMP (paywall)
“LGBTQ community [is] not cheering yet, concerned that changes will not be comprehensive and may be delayed.”

Groundbreaking copyright use case
Actor sues after gangster’s classic TV lines used in video game / Sixth Tone
“Is it legal to take classic lines from a TV show and use them in a video game without authorization? That is the question being debated in China’s first copyright dispute over lines spoken in a film or TV series.”

The demand for on-demand chefs
The young Chinese working as on-demand private chefs / Sixth Tone
“From making ends meet to relieving stress, the young Chinese working as on-demand private chefs are doing so for different reasons.”

Film
Hit new film offers a striking portrait of Beijing’s migrant villages / Sixth Tone
“Liang Junjian’s award-winning new documentary ‘Bitter Sweet Ballad’ has shocked viewers with its portrayal of the lives of migrant children in Beijing.”

Religion
‘A jealous god’: China remakes religions in its own image / Al Jazeera
“Authorities are violating religious freedoms across China as the leadership seeks to assert control.”