The general is under investigation

• Li rose steadily through the military ranks, but his time at the top was brief. He was selected to the seven-person Central Military Commission in October 2022, then was installed as the defense minister in March.
• Chinese Foreign Ministry spokesperson Máo Níng 毛宁 said at a press briefing on Friday that she was not aware of the situation. Li was last seen in public on August 29, when he delivered a keynote address at the China-Africa Peace and Security Forum.
• Dennis Wilder, an expert on the Chinese military, told Financial Times that the Equipment Development Department Li was in charge of from 2017 to 2022 had the “worst corruption” among the military.

Xí Jìnpíng 习近平 removed two generals from the PLA Rocket Force in July, the same month that Qín Gāng 秦刚 was ousted from his position as foreign minister. But Li’s removal may be the most significant shake-up.

• “Some of the PLA’s enduring problems may be too big for Xi to solve, and they have a real impact on the PLA’s ability to achieve what he wants them to,” a U.S. official told the Wall Street Journal. “We know that corruption in the PLA runs deep enough for this to be a factor. And we know it’s had a profound effect on what they’re able to do, and how they do it.”
• Corruption probes and purges of top officials have been a hallmark of the Xi era, but they are conducted behind the scenes, with very few details ever being revealed, leaving observers to guess at causes.

Here’s what we know about this developing story.

Anthony Tao

China is seeking to collect biological information on perpetrators of minor offenses, according to a proposed amendment to the country’s Public Security Administration Punishments Law. The new changes would allow authorities to gather biological data including photos, fingerprints, blood, and urine of “violators of [the] public security administration” — measures that currently apply only to investigations into serious crimes.

The proposal has raised concern that it may expand any abuses of power by China’s security forces. It has been submitted to China’s top legislature and is open for public comment until the end of September.

China’s top diplomat Wáng Yì 王毅 and U.S. national security adviser Jake Sullivan met for two days of what the White House called “candid, substantive, and constructive” talks in Malta over the weekend, in a bid to stabilize shaky bilateral ties. The two sides pledged to continue “additional high-level engagement and consultations” over the next few months, ahead of a planned meeting between U.S. President Joe Biden and Chinese leader Xí Jìnpíng 习近平 in November.

Wang Yi is headed to Russia today for four days of security talks, in a trip aimed at setting up a potential landmark visit by Russian President Vladimir Putin to Beijing in October. Russian state-owned news agency TASS, citing the Russian Foreign Ministry, reported that Wang Yi will meet his Russian counterpart Sergei Lavrov for talks, including ​​about the “settlement of the Ukrainian crisis” and security issues in the Asia Pacific — specifically the “risks of militarization of the region because of the NATO infiltration” and raising concern over the “spread of NATO forces.”

Meanwhile, the two countries recently announced plans to expand their energy ties: Russia’s United Oil- and Gas-Chemical Co. (ONGK) and China’s Xuanyuan Industrial Development agreed to jointly invest 5 billion yuan ($686 million) in construction of a huge energy logistics hub in Russia’s far east.

China will sanction U.S. aerospace and defense firms Northrop Grumman and Lockheed Martin for providing arms sales to Taiwan, the Chinese Foreign Ministry announced on September 15. “We call on the U.S. to earnestly abide by the one-China principle and the stipulations of the three China-U.S. joint communiqués, stop arms sales to Taiwan, stop military collusion with Taiwan, and stop arming Taiwan, otherwise it will be met with China’s resolute response,” Chinese Foreign Ministry spokesperson Máo Níng 毛宁 said.

WHO’s chief is pushing Beijing for more info on the origins of COVID, as the source of the pandemic remains unclear nearly four years after the first cases emerged in Wuhan.

The global health body’s Director-General Tedros Adhanom Ghebreyesus said that WHO had already sent a written request to Beijing for more information on the virus and is “willing to send a team” to probe the matter. He also urged Beijing to give “full access” and to “cooperate” on any investigations.

The European Union slapped a 345 million euro ($369 million) fine on TikTok, the popular short-video app owned by Chinese tech giant ByteDance, for failing to protect the personal information of minors using the platform and for not being transparent about its use of their data, according Ireland’s Data Protection Commission, which issued the penalty on behalf of the EU on September 15.

Police have detained some staff of Evergrande’s wealth management unit in the southern Chinese metropolis of Shenzhen, according to a post on WeChat by local authorities. No further details were given on the charges, the number of people detained, or their identities — except for the person identified only as Du.

Cambodian Prime Minister Hun Manet met with Chinese Xi Jinping in Beijing on September 15 for his first overseas trip outside of international conferences since taking office in August.

The two sides pledged to deepen ties. Xi agreed to strengthen regular law enforcement and security cooperation, and continue to crack down on cross-border crimes such as online gambling and telecom fraud in Cambodia, while Hun Manet voiced support for the “One China” principle, in which Beijing claims Taiwan as part of its territory.

Chinese state media: “General Secretary Xi Jinping’s story of caring for people with disabilities” is the top story on the People’s Daily print edition’s front page today. Xinhua News Agency’s top story covers the same theme, with a piece on the Eighth National Congress of the China Disabled Persons’ Federation in Beijing, attended by Xi and other senior officials.

The state media attention is noteworthy. China has very few protections or special provisions for its disabled population: “Most Chinese see disability as something to be overcome or pitied, not something to be accommodated through accessible infrastructure,” noted Sixth Tone in 2017.

Might this be about to change?

• Beijing is actively trying to change its image with Belt and Road Initiative (BRI) projects.

Building roads and people-to-people exchanges are key strategies.

• Beijing has more success in winning hearts and minds in Central Asia when external propaganda takes a backseat.
• Building roads and railways are important, but Beijing’s most directly impactful projects may be the vocational training and Chinese-language programs it funds.
• “Younger people see more economic opportunities with China,” says Zhanibek, who studied in China and now works as a consultant for Chinese companies in Bishkek, Kyrgyzstan. “Culturally, we are not with China, people don’t think about China like that — it’s just a country we can do business with.”

As Jacob Mardell writes though, China still has much more it can do.

Jacob Mardell

The United Nations General Assembly (UNGA) is being held this week in New York on September 18–23.

• Vice Premier Hán Zhèng 韩正 will attend the assembly itself as well as related high-level events, including the Sustainable Development Goals summit and the Climate Ambition summit. He will host a meeting on Global Development Initiative cooperation outcomes, and meet with the UN Secretary-General.

Taiwan’s Kuomintang (KMT) presidential candidate Hou You-yi (侯友宜 Hóu Yǒuyí), currently the New Taipei City Mayor, arrived in New York on Thursday, and will remain in the United States until Friday, September 22.

• He will meet with American Institute in Taiwan (AIT) Chair Laura Rosenberger and U.S. lawmakers to engage in dialogue and deepen their friendship. The AIT serves as the de facto embassy of the U.S. to Taiwan.
• His tour includes stops in Washington, D.C., New York City, Newark, and San Francisco.

Click through for the full agenda for this week.

Arran Hope

• This week on the Sinica Podcast, Pulitzer Prize-winning veteran journalist Ian Johnson, now a senior China fellow at the Council on Foreign Relations, joins host Kaiser Kuo to discuss his new book, Sparks: China’s Underground Historians and their Battle for the Future.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:

Too much money in women’s tennis in China
Women’s tennis returns to China after Peng Shuai boycott / CNN
“The Women’s Tennis Association (WTA) kicked off its first tournament in China in more than three years Monday, ending its boycott over the uncertain fate of tennis star Péng Shuài 彭帅. WTA CEO Steve Simon has previously said all matches would be suspended until there was a ‘full and transparent investigation.’”

Economic gloom or boom
Opinion: Hold the champagne on China’s economy / Bloomberg (paywall)
Daniel Moss writes: “China’s short-term economic prospects no longer look quite so foreboding, but it would be unwise to proclaim that a bottom has arrived. The country is in a long-drawn slowdown that didn’t begin yesterday and won’t be over next week.”
China’s slumping economy: What the latest numbers are signaling / NYT (paywall)
“China’s trains, planes, stores and beaches were a little fuller last month than a year earlier, and the pace of activity picked up at factories, particularly those making mobile phones and semiconductors.”

China trade war
This China trade war isn’t about semiconductors / NYT (paywall)
“Cosmetics sales in China are soaring, but a group of exporting nations led by France are pushing Beijing to lift restrictions they say are blocking them unfairly.”

Electric vehicles
EU warns of ‘possible’ Chinese retaliation over electric car probe / FT (paywall)
“The EU’s anti-subsidy investigation into China’s electric-car industry could provoke retaliatory measures from Beijing, senior EU officials have warned, even as the bloc’s ministers said the probe was crucial for safeguarding trade rules.”
XPeng’s $31 billion gap shows hazy China EV outlook / Caixin (paywall)
“The biggest debate for sell-side analysts covering Chinese equities these days centers around a $31 billion question: What is the outlook for XPeng Inc.? The divide is sending shares on quite a roller-coaster ride.”

Oil
Opinion: China may get caught in an oil-price crossfire / Bloomberg (paywall)
David Fickling writes: “In the new Cold War building between authoritarian states and democracies, petroleum appears to be the most potent weapon.”

Imports
China vows to boost Southeast Asia imports as growth slows / Nikkei Asia (paywall)
“China has pledged to increase purchases from Southeast Asian neighbors as overall trade growth slows due to weakened demand globally and domestically.”

Investors
Chinese state firms’ help to troubled shadow bank does little to address investor concerns / Reuters
“The involvement of two Chinese state-owned financial firms in Zhongrong International Trust Co’s operations and management may diffuse risk at the troubled shadow bank but does little to ease concerns about missed payments, analysts and investors said.”

AI
AI content rising, China’s Bilibili rolls out new labeling system / Sixth Tone
“Bilibili’s new system also includes tags for dangerous behavior, excessive consumption, and potential discomfort, but prioritizes AI-generated content when multiple labels are applicable.”

Real estate and property development
China’s property revival plan threatened by stand-off over old neighborhoods / FT (paywall)
“Beijing turns to [its] past playbook of redeveloping poorer areas in hopes of revitalizing [its] troubled sector.”
Chinese shadow bank exposed to troubled property developers / FT (paywall)
“The Chinese shadow bank at the heart of concerns over missed payments to customers has lent money to several of the country’s struggling property developers, according to a Financial Times analysis of legal and company filings.”
Chinese stocks in Hong Kong drop as property woes sour sentiment / Caixin (paywall)
“Chinese stocks listed in Hong Kong began the week with losses as persistent concerns about the health of the property sector offset optimism spurred by signs of stabilization in some other parts of the economy.”
An even bigger housing crisis threatens China’s economy / WSJ (paywall)
“China’s giant housing industry is lurching into a new crisis that threatens to be the country’s worst yet.”

Country Garden
China’s cash-squeezed Country Garden faces another dollar coupon deadline / Reuters
“Embattled Chinese property developer Country Garden faces yet another liquidity test with Monday’s deadline to pay $15 million in interest linked to an offshore bond, after having dodged default at the last minute twice this month.”

Evergrande
China Evergrande shares tumble 25% after wealth management staff detained / Reuters
“Shares of embattled developer China Evergrande Group plunged 25% on Monday after police detained some staff at its wealth management unit, suggesting a new investigation that could add to the property company’s woes.”
China police detain some Evergrande wealth management staff / Reuters
“Police in southern China have detained some staff at China Evergrande Group’s wealth management unit, suggesting a new investigation that could add to the property giant’s woes.”
Chinese police detain wealth management staff at the heavily indebted developer Evergrande / AP
Evergrande plunges after police detain some staff of wealth unit / Caixin (paywall)

Alibaba
Alibaba tells Erdogan it plans to invest $2 billion in Turkey / Reuters
“Chinese ecommerce giant Alibaba Group Holding Ltd has told Turkish President Tayyip Erdogan it plans to invest $2 billion in Turkey.”

Foxconn
IPhone maker Foxconn aims to double India investment, employment / Bloomberg (paywall)
“Apple Inc. partner Foxconn Technology Group plans to double its investment and employment in India, highlighting an accelerating manufacturing shift away from China as Washington-Beijing tensions grow.”

TikTok
TikTok fined $370 million for mishandling child data / NYT (paywall)
“The data-collection practices of TikTok that were cited by the European Union are becoming a common target for global regulators.”

Starbucks
Starbucks promotes Molly Liu to co-CEO of Starbucks China / Reuters
“Starbucks has promoted Molly Liu to executive vice president and co-chief executive officer of Starbucks China, the company said on Monday.”

SCIENCE, HEALTH, AND ENVIRONMENT:

COVID-19
WHO chief pushes China for ‘full access’ to solve COVID’s origins / FT (paywall)
“The chief of the World Health Organization has urged Beijing to offer more information on the origins of COVID-19 and is ready to send a second team to probe the matter, as the genesis of the pandemic remains unclear nearly four years after the first cases emerged in the Chinese city of Wuhan.”

POLITICS AND FOREIGN AFFAIRS:

PLA under the spotlight
China’s military rocket force uncovers ‘shortcomings,’ PLA Daily reports / Reuters
“A unit of China’s Rocket Force uncovered ‘shortcomings’ during a field assessment of an exercise, the PLA Daily reported on Friday in a rare critique, suggesting gaps in combat readiness at the armed force overseeing conventional and nuclear missiles.”
China’s military hierarchy under spotlight after defense minister disappears / Reuters
“The disappearance of Chinese Defence Minister Lǐ Shàngfú 李尚福 highlights the opaque and complex nature of the People’s Liberation Army (PLA), diplomats and analysts say.”
The public face of China’s military under corruption probe / Reuters
“General Li Shangfu, a veteran of China’s military modernization drive, rose through the ranks to become defense minister this year. Within six months, he disappeared under the cloud of a corruption probe.”
China is investigating its defense minister, U.S. officials say / NYT (paywall)
PLA holds drills in Yellow Sea days after U.S. and allies flex muscles near northeast China coast / SCMP (paywall)
“The Chinese navy is carrying out military drills in the Yellow Sea and Bohai Strait, according to the country’s maritime agency, just days after the U.S. Navy held joint exercises with South Korean and Canadian vessels in the waters off northern China.”
Then there were two: disappearance of second Chinese minister sparks speculation / FT (paywall)
Xi’s missing defense chief opens door for U.S. military talks / Bloomberg (paywall)

Chinese diplomacy
Upheavals in Xi’s world spread concern about China’s diplomacy / Reuters
“The disappearance of China’s defense minister, the latest in a string of upheavals in the country’s top ranks, is stoking uncertainty about President Xí Jìnpíng’s 习近平 rule as an internal security clampdown trumps international engagement.”

China’s legal system
China’s coming lawfare offensive / FT (paywall)
“China has accelerated the implementation of an integrated program, founded on Xi Jinping Thought, to weaponize law, with both territorial and extraterritorial effect. Expressly termed ‘lawfare,’ this program seeks to reshape economic relations with the rest of the world, creating a capital market ‘with Chinese characteristics.’”
Personal freedom vies with deterrence in public security law revamp / Caixin (paywall)
“Different from Western legal systems that classify violations of laws as felonies and misdemeanors or minor crimes, China’s legal code implements a dual track model divided into ‘administrative violations’ and ‘criminal acts.’”

China seeks to expand police power
China seeks to expand police power to collect biological information of suspects in minor offenses / SCMP (paywall)
“China is seeking to create a legal basis for police to collect biological information in cases involving minor offenses, which would vastly expand a controversial practice currently used only in investigations related to terrorism, drugs and other serious crimes.”

The fall of Henan’s teflon graft buster
What it took to topple Wang Wenhai / Caixin (paywall)
“No accusation ever seemed to stick against Wáng Wénhǎi 王文海. Over a decades-long career in the judicial and graft-busting departments of his home province of Henan, complaints against Wang never stopped, according to people in the central province’s legal and political circles”

G77+China
Cuba seeks to deepen ties with Beijing at G77+China summit / Nikkei Asia (paywall)
“Leaders from the Group of 77 developing countries and China are meeting in Havana on Friday and Saturday, as Cuba seeks to deepen ties with Beijing and other emerging nations amid U.S. economic sanctions.”
G77+China: Latin America’s leftists pursue solidarity with Beijing / Nikkei Asia (paywall)
“Leftist governments in Latin America are strengthening ties with China, as the Group of 77 nations plus China on Saturday adopted a joint statement listing complaints and demands for developed countries at a summit held in Cuba.”

Taiwan
Taiwan urges China to stop ‘destructive’ military activities / Reuters
“Taiwan’s defense ministry on Monday urged China to stop ‘destructive, unilateral action’ after reporting a sharp rise in Chinese military activities near the island, warning such behavior could lead to a sharp increase in tensions.”
China flies 103 military planes toward Taiwan in a new high in activity the island calls harassment / AP
“China’s military sent 103 warplanes toward Taiwan in a 24-hour period in what the island’s defense ministry called a recent new high.”
PLA warplanes set new 24-hour record, destabilizing security: Taiwan defense ministry / SCMP (paywall)
China sends fighter jets in show of force off Taiwan / Nikkei Asia (paywall)
China sends record 103 warplanes near Taiwan amid U.S. visits / Bloomberg (paywall)
China sends record number of military planes near Taiwan / NYT (paywall)

U.S.-China competition and tensions
Biden aide held hours of ‘constructive’ talks with Chinese diplomat / Reuters
“White House national security adviser Jake Sullivan met with Chinese Foreign Minister Wáng Yì 王毅 in Malta for hours this weekend, Beijing and Washington said on Sunday, as the world’s two largest economies seek to stabilize troubled relations.”
Biden’s national security adviser holds two days of talks in Malta with China’s foreign minister / AP
“President Joe Biden’s national security adviser met with China’s foreign minister over the past two days on the Mediterranean island nation of Malta in an effort that the White House said Sunday was intended to ‘responsibly maintain the relationship’ at a time of strained ties and mutual suspicion between the rival powers.”
China’s top diplomat meets Biden advisor to boost communication / Caixin (paywall)
U.S. and China officials meet in Malta ahead of possible Biden-Xi summit / FT (paywall)
U.S. and Chinese officials meet in Malta to discuss Ukraine and other flashpoints / NYT (paywall)

U.S.-China espionage efforts
In risky hunt for secrets, U.S. and China expand global spy operations / NYT (paywall)
“The nations are taking bold steps in the espionage shadow war to try to collect intelligence on leadership thinking and military capabilities.”

Singapore
Singapore’s $1.3 billion money laundering probe exposes Chinese criminals’ paid-for passports / SCMP (paywall)
“Chinese criminals have a new must-have in their villains’ tool kits to cross borders, evade jail and wash the billions of dollars sucked up from phone scams, online gambling and pyramid schemes across Asia: passports from Cambodia, Cyprus, and even the tiny South Pacific island of Vanuatu.”

Laos
Laos deports human rights lawyer who was fleeing state pressure back to China / AP
“A human rights lawyer who was arrested in neighboring Laos has been deported back to China, his attorney said, despite pleas from rights groups and United Nations experts for his release.”
In Laos, a new railway signals a future in China’s orbit / Sixth Tone
“In Laos, a new $6 billion rail line is driving rapid social and economic changes — and bringing China ever closer.”

Indonesia
Indonesia urged to study feasibility of extending China-backed rail line as Japan mulls exit / SCMP (paywall)
“Indonesia has been urged to launch an open bid and independent feasibility study for an extension of a mega rail project that could involve China, after Tokyo raised fears it might pull out to protect ‘the Japan brand.’”

Afghanistan
Afghanistan’s $6.5bn mine deals with China, others dig up questions / Nikkei Asia (paywall)
“An Afghan Taliban drive to stabilize the economy and improve sentiment toward the regime through new mining deals with Chinese and other companies is drawing skepticism.”

Cambodia
​​Cambodian PM Hun Manet pledges stronger China ties in Beijing visit / Nikkei Asia (paywall)
“Cambodia wants to make its relationship with China even stronger, the country’s new prime minister, Hun Manet, said at a meeting with Chinese President Xi Jinping in Beijing on Friday.”

Japan
China seafood imports from Japan dive 68% over Fukushima water / Nikkei Asia (paywall)
“China’s seafood imports from Japan dived 67.6% from a year earlier in August, Chinese customs data showed Monday, as Beijing introduced a total ban on marine products shipped from the neighboring country late that month.”

Malaysia
Malaysia to double palm oil exports to China, dodge EU restrictions / Nikkei Asia (paywall)
“Malaysia says it will double palm oil exports to China to half a million tonnes annually as the Southeast Asian nation moves against European restrictions on a commodity used in everything from cookies to cosmetics.”

Germany
China complains to Germany after foreign minister calls Xi a ‘dictator’ / Reuters
“China has complained to Germany after its foreign minister labeled President Xi Jinping a ‘dictator,’ the Chinese Foreign Ministry said on Monday, calling the title ‘absurd’ and an ‘open political provocation.’”

Russia
Russia and China to build oil transshipment complex for $686 mln / Reuters
“Russia’s United Oil- and Gas-Chemical Co. (ONGK) and China’s Xuan Yuan Industrial Development have agreed to jointly invest 5 billion yuan ($686 million) in construction of a transshipment oil complex in Russia’s far east, the Roscongress fund said on Monday.”
China’s Wang Yi visits Russia ahead of possible Xi-Putin meeting / Reuters
“China’s top diplomat, Wang Yi, begins on Monday a four-day trip to Russia during which both nations are expected to pledge deeper mutual political trust, readying for a possible landmark visit by President Vladimir Putin to Beijing in October.”
China’s top diplomat due in Moscow after surprise U.S. talks / WSJ (paywall)
China’s foreign minister heads to Russia after meeting with US national security adviser / AP
“China’s top diplomat is heading to Russia for security talks after two days of meetings with U.S. President Joe Biden’s national security adviser over the weekend in Malta.”
Chinese Foreign Minister Wang Yi begins 4-day Russia visit for security talks / SCMP (paywall)
“Beijing and Moscow were expected to step up their strategic coordination as China’s top diplomat Wang Yi kicked off a four-day visit to Russia for security talks ahead of a possible visit by Russian President Vladimir Putin next month.”
Putin and Kim’s embrace may place Xi in a bind / NYT (paywall)
“Closer ties between Russia and North Korea could weaken Beijing’s leverage over both countries and set back China’s efforts to stabilize its ties with the West.”

EU
China, EU should maintain open attitude, reject protectionism, Chinese foreign minister says: state media / Reuters
“China and the European Union (EU) should continue to maintain an “open attitude” and ‘reject protectionism,’ Chinese state media said on Monday, citing Chinese Foreign Minister Wang Yi.”

UN
China is sending Vice President Han Zheng to represent the country at UN General Assembly session / AP
“China is sending Vice President Hán Zhèng 韩正 to the U.N. General Assembly’s annual high-level debate, the Ministry of Foreign Affairs said Friday, suggesting that the country’s most senior diplomat, Wang Yi, will not attend.”
China-U.S. ties: Vice-President Han Zheng to meet Secretary of State Antony Blinken on sidelines of UN General Assembly on Monday / SCMP (paywall)

SOCIETY AND CULTURE:

Public welfare
Government budget problems shouldn’t disrupt basic public welfare / Caixin (paywall)
“Recently, some employees of the Tianjin Bus Group reported that their employer owes them back wages and has stopped making social security contributions on their behalf.”

Easing the pressure on China’s students
Policies to take pressure off students in compulsory education backfire, study shows / Caixin (paywall)
“Policies meant to relieve academic pressure on students in primary and middle school have actually exacerbated inequality in the Chinese school system, a recent research study found, revealing that various government measures have made it harder for children from low-income families to get into high school.”

Train etiquette
Are kids to blame for China’s noisy trains? / Sixth Tone
“As disputes on high-speed rail journeys over crying babies and unruly children become more common, parents and train attendants are feeling the pressure.”

Elderly care
How the rise and fall of an unlikely online influencer triggered a debate about the plight of older Chinese / SCMP (paywall)
“The case became a talking point nationwide as it brought to light the emotional needs of the vast number of elderly in China’s rapidly aging society and their vulnerability to financial exploitation online.”

A dying language finds a surprising community in China
China’s last Esperanto students / Sixth Tone
“China used to have one of the world’s largest communities of Esperanto speakers. But the language is now in danger of disappearing from the country completely.”