To the moon

• Yesterday, the China National Space Administration (CNSA) announced an invitation (readout in Chinese, PDF in English) for international cooperation for the Chang’e-8 (CE-8), the country’s lunar exploration mission, at the 74th International Astronautical Congress in Baku, Azerbaijan.
• The CE-8 mission is scheduled to launch around 2028 to help form the basic structure of China’s International Lunar Research Station (ILRS) together with the Chang’e-7 (CE-6) mission in 2026, which aims to search for evidence of lunar water in the Moon’s south pole.
• International partners are welcome to “piggyback” on the CE-8 mission, as long as any standalone modules remain under 100 kilograms (220 pounds), and may independently deploy their own modules once the Chinese spacecraft lands, the CNSA said.

China’s efforts to become a leading space power by 2045 have picked up momentum in the last few years.

• In January 2022, the Chinese government released a white paper stating that “the space industry is a critical element of the overall national strategy,” and its development has become a proud symbol of China’s meteoric rise.
• That same year in November, the country made the landmark announcement that its Tiāngōng 天宫 (“heavenly palace”) space station had been completed.
• The addition of the third and final module wrapped up China’s decadeslong effort to build its own rival space station, which intensified after it was excluded from the U.S.’s International Space Station (ISS) in 2011 over concerns about the Chinese space programs’ ties to its military.

The global invitation to join China’s lunar mission comes at a time when a slew of world powers — including India, Russia, Europe, Japan, South Korea, Israel, the UAE, and the U.S. — are taking part in a new lunar space race.

• Currently, China is one of only four countries that have managed to make successful unmanned Moon landings.
• In June, China announced official plans to put a person on the Moon by 2030. No human has set foot on the Moon since the U.S. conducted its historic Apollo missions in the 1960s and 1970s, becoming the first and only country to do so.
• The U.S.’s National Aeronautics and Space Administration (NASA) has also announced a similar plan, known as the Artemis program, to put people back on the Moon by 2025, though it has run into delays.

Click here for all the details.

Nadya Yeh

China’s Golden Week tourism boom is off to a hot start: The national railway hit a new record of 20.98 million passengers in a single day on September 29, the first day of the holiday period that lasts until October 6. Tourism revenue hit 342.24 billion yuan ($46.9 billion) in the three days leading up to the mid-autumn festival and National Day celebrations, up 125% compared to a year earlier, while tickets to some popular tourist destinations have sold out due to increased demand.

Typhoon Koinu is expected to hit the southern and eastern parts of Taiwan today with heavy rain and winds, before heading toward Hong Kong tomorrow in a weakened state, according to local weather observatories. It comes as the latest tropical storm to hit the region after typhoons Saola and Haikui last month.

China’s Arctic ambitions are making progress thanks to an isolated Russia, which has turned to one of its few remaining allies to carry out energy projects in the far north and ship barrels of crude through its Northern Sea Route.

Apple is requiring new apps to provide proof of approval from the Chinese government before listing on its China App Store, following similar moves by rival platforms to meet the tighter regulations for operating in the country.

ByteDance, the parent company of TikTok, is buying back shares from its current and former U.S. employees at 26% less compared to a similar buyback offer a year ago, according to a deal that values the privately-held company at $223.5 billion.

Notable reads: “China’s brightest minds, including tech professionals, are emigrating, but many are not heading to America.” New York Times columnist Li Yuan spoke to some of them to ask them why. There are a number of reasons but the “complicated and unpredictable process for applying for visas and permanent residence status” in the U.S. is a major one.

Chinese state media: Editors and propagandists are having a good holiday, judging by the fluff being published this week, much of which looks like it was generated by ChatGPT. The People’s Daily leads with a piece titled “Colorful cultural activities praise the Great Era — The country is prosperous and strong, and the people are happy and healthy.”

Xinhua News Agency’s top story is a slight variation on the lead pieces yesterday and the day before: An infographic titled “General Secretary Xí Jìnpíng 习近平 captured these moments of the homeland — love for the mountains and rivers.”

Wú Guóguāng 吴国光, a Communist Party insider turned American academic lays out how we should think about this information vacuum, in an essay translated and introduced by the eminent Sinologist Geremie R. Barmé.

Geremie R. Barmé

• Assad and his wife Asma Fawaz al-Assad flew into Hangzhou on an Air China plane. In that city, he watched Asian Games events and met Xí Jìnpíng 习近平, before flying on to Beijing for more high-level meetings.

Xi pledged to assist in rebuilding Syria’s war torn infrastructure and economy, and called on the West to lift sanctions on Syria while Assad defended Beijing’s policies in Xinjiang.

Here are the details of recent relations between the two countries and their latest deals and rhetoric in the latest installment of China Ties by Alex Coville.

Alex Colville

• All the cigarettes in China: This week on the Sinica Podcast, host Kaiser Kuo is joined by journalists Jason McLure and Jude Chan, both of whom recently wrote a fascinating exposé of China’s State Tobacco Monopoly Administration, and how it has managed to be both the biggest seller of tobacco in the world — and also the effective regulator of tobacco laws in China.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:

Push for self-driving cars
China moves to strengthen innovation in smart driving / Reuters
“China will back firms in the smart vehicle supply chain to form groups dedicated to spreading innovation, state media said on Monday, as it races to hammer out standards for assisted and autonomous driving functions by 2025.”

Lithium
Slumping lithium prices signal angst over China’s demand outlook / Bloomberg (paywall)
“Lithium prices are spiraling down toward the lowest level in two years on concerns over the strength of Chinese demand for the material, a key ingredient in electric vehicle batteries.”

Electric vehicles
Chinese high-end EV brand Zeekr expands into Middle East / FT (paywall)
“Zeekr, the premium electric vehicle brand of Chinese automaker Geely, is launching in four Middle East countries next year as it intensifies its global push ahead of a planned U.S. listing.”
Silicon carbide chips could give Chinese EV firms an edge, with Beijing’s help / Caixin (paywall)
“Electric vehicles need more sophisticated infrastructure. Though some have cells that can be swapped quickly at battery stations, most require a plug-in charging pile, as well as time, to replenish them.”

Foreign businesses in China
China promises to make business, life in Shanghai easier for foreign companies / SCMP (paywall)
“Shanghai has vowed to make setting up mobile payments easier for expats on short visits, part of the city’s efforts to make itself more alluring to foreign businesses and reassure investors.”

Can Golden Week bring a bright spot to China’s economic woes?
China hopes Golden Week holiday will deliver economic boost / FT (paywall)
“China has started its longest holiday break of the year with officials predicting record tourist travel that they hope will help to lift an economy struggling to emerge from its post-pandemic doldrums.”
Golden Week: Chinese tourists flock to destinations near and far / Sixth Tone

China’s factory activity is on the rise
In a good sign for China’s struggling economy, factory activity grows for the first time in 6 months / AP
“China’s factory activity in September recorded its first expansion in six months, an official survey said Saturday, providing another sign that the world’s second-largest economy is gradually improving after its post-pandemic malaise.”

EU tech derisking
EU’s China ‘de-risking’ plan puts AI, semiconductors, quantum tech and biotech in cross hairs / SCMP (paywall)
“The EU has revealed the first four critical technologies in its cross hairs as it looks to de-risk relations with China.”

Local debt
Opinion: How to fix China’s local government debt crisis / Caixin (paywall)
Ling Huawei writes: “China’s local government debt has been seen as a looming crisis. Following the central government’s recent pledge to comprehensively resolve local government debt issues, the anxious markets experienced a temporary reprieve.”

Real estate and property development
China’s real estate market gets some relief in September on policy changes / Caixin (paywall)
“Real estate sales in China increased in September from the previous month following efforts by some of the country’s biggest cities to spur homebuying.”
China comes under growing pressure to fix the country’s housing market / WSJ (paywall)
“Pressure is building on Beijing to intervene more forcefully to restore confidence in its reeling property market.”

Evergrande
Detention of China Evergrande founder Hui Ka-yan ‘a signal Beijing won’t let super-rich off the hook’ / SCMP (paywall)
“The downfall of Hui Ka-yan (许家印 Xǔ Jiāyìn), the billionaire founder of troubled property developer China Evergrande Group, indicates deep-seated concern in Beijing over the impact of the country’s super-rich on China’s financial and social stability, Chinese analysts said.”
‘Crimes’ probe into Evergrande founder adds to pressure over $300 billion debt woes / FT (paywall)
China Evergrande shares soar as trade resumes amid police probe / Caixin (paywall)
“China Evergrande Group soared as it returned from a trading halt, driven by what appears to be bets on a penny stock even as the developer’s fate hangs in the balance amid an official probe into its billionaire founder.”

Apple
Apple enforces new check on apps in China as Beijing tightens oversight / Reuters
“Apple has started requiring new apps to show proof of a Chinese government license before their release on its China App Store, joining local rivals that had adopted the policy years earlier to meet tightening state regulations.”
Apple changes China app store rules and is expected to restrict access to foreign apps as regulatory scrutiny mounts / SCMP (paywall)

SCIENCE, HEALTH, AND ENVIRONMENT:

Can the U.S. attract China’s greatest minds?
China is suffering a brain drain. The U.S. isn’t exploiting it. / NYT (paywall)
“China’s brightest minds, including tech professionals, are emigrating, but many are not heading to America. We spoke to them to ask why.”

China’s lunar missions
China offers to collaborate on lunar mission as deadlines loom / Reuters
“China, which aims to become a major space power by 2030, has opened up a key lunar mission to international cooperation as mission deadlines loom for setting up a permanent habitat on the south pole of the Moon.”
China’s Chang’e 5 lunar mission wins International Academy of Astronautics award for team after ‘outstanding contributions’ / SCMP (paywall)
“The team behind China’s Chang’e 5 lunar mission was recognized on Sunday, receiving the International Academy of Astronautics’ highest group award at its annual meeting, which this year took place in Baku, Azerbaijan.”

POLITICS AND FOREIGN AFFAIRS:

Xi’s power and data
Xi’s ideology-driven policies risk derailing China’s future: report / Nikkei Asia
“Chinese President Xí Jìnpíng’s 习近平 ideology-driven economic policies risk derailing the country’s future as they fundamentally change incentives driving the behavior of local officials, entrepreneurs and young Chinese, the Asia Society Policy Institute says.”
The end of experimentation and aspiration in Xi Jinping’s China / The Asia Society
“This paper is the first in a two-part series exploring how the leadership of Chinese President Xi Jinping has changed the fundamental incentives driving the behavior of key groups in China and beyond. The second paper will focus on international responses to Xi’s ‘new era.’”
Opinion: Data could let Xi loosen grip on China’s economy but keep control / Nikkei Asia (paywall)
Diana Choyleva writes: “In the eyes of Beijing, data will be the critical factor of production in the 21st century economy and will enable it to inject fresh vim into China’s development without relinquishing the control that the Chinese Communist Party craves. Data is also central to China’s strategy for outcompeting the U.S. in their increasingly fierce contest for technological supremacy.”

• Previously on The China Project: China’s push for RMB internationalization and Xi’s great pivot and risks in the Chinese market in 2023

The Communist Party, elite politics, and government
China lines up leaders for new agencies in wake of major personnel reshuffle / Caixin (paywall)
“China has unveiled the leadership lineups of several new central agencies, including those tasked with overseeing the country’s sprawling financial sector and dealing with public complaints, following a major restructuring of government and Communist Party institutions.”

Corruption
Estimating Chinese corruption / FT (paywall)
“How much graft is there in China’s vast bureaucracy? Quite a lot, and it rises with seniority, even though Xi Jinping’s corruption crackdown seems to have moderated things.”

Taiwan
Taiwan urges U.S. to speed up weapons systems deliveries, boost defense supply chain / SCMP (paywall)
“Taiwan’s vice-minister for defense, Hsu Yen-pu (徐衍璞, Xú Yǎnpú), has urged the United States to speed up weapons deliveries to meet a growing military threat from the People’s Liberation Army (PLA).”

U.S.-China competition and tensions
U.S. senators hope to meet with Xi during China trip next week / Reuters
“A group of U.S. senators, including Majority Leader Chuck Schumer, plans to visit China next week and hopes to meet with Chinese President Xi Jinping, a spokesperson for Republican Senator Mike Crapo confirmed on Monday.”
How China-West tensions will shape global markets / Reuters
A rural Michigan town is the latest battleground in the U.S.-China fight / NYT (paywall)
“Firestorms over Chinese investments, like a battery factory in Green Charter Township, are erupting as officials weigh the risks of taking money from an adversary.”

Sri Lanka
China keeps Sri Lanka in debt grip, stalling IMF relief / Nikkei Asia (paywall)
“Sri Lanka’s diplomatic failure to secure a concrete debt relief framework from China, its largest bilateral lender, is blocking access to desperately needed cash under a $3 billion bailout from the International Monetary Fund.”

Singapore
Singapore focuses on money laundering laws, denies China pressure / Nikkei Asia (paywall)
“Singapore on Tuesday said it will be reviewing its legal framework over financial crimes, amid an ongoing probe into one of the biggest money laundering cases in the Asian financial hub.”

Indonesia
Indonesia’s first high-speed rail opens: Five things to know / Nikkei Asia (paywall)
“Indonesia officially launched operations of the first bullet train in the country — and Southeast Asia — on Monday, one day later than the previously anticipated Oct. 1.”
Southeast Asia’s first high-speed railway, funded by China, launches in Indonesia / Time
Indonesia launches China-backed ‘Whoosh’ high-speed railway / Reuters

Thailand
Thailand sees $4 billion from China tourism after visa waivers / Caixin (paywall)
“Thailand expects to attract 2.9 million arrivals and billions of dollars in revenue from a Chinese tourism boom as a result of a new five-month holiday period visa exemption program, part of a bid to help strengthen the nation’s wobbly economic recovery.”

Peru
U.S. raises concern with Peru over Chinese control of infrastructure / FT (paywall)
“The U.S. has expressed concern to Peru that China is gaining control over critical parts of the South American nation’s infrastructure, including electricity supply to the capital Lima and a new megaport on the Pacific coast.”

China in the Arctic
China is gaining long-coveted role in Arctic, as Russia yields / WSJ (paywall)
“China’s goal of becoming a major player in the Arctic has long been frustrated by its neighbor Russia, which has closely protected its dominant role in the region.”

SOCIETY AND CULTURE:

The end of panda diplomacy
Pandas could be gone from America’s zoos by the end of next year / AP
“The National Zoo’s three giant pandas — [Měi Xiāng 美香, Tiān Tiān 添添] and their cub [Xiǎo Qíjì 小奇迹] — are set to return to China in early December with no public signs that the 50-year-old exchange agreement struck by President Richard Nixon will continue.”

Asia Games
China is relentless in its domination of the medals at the Asian Games / AP
“At the games five years ago in Jakarta, Indonesia, the country won 132 gold medals and 287 medals overall. This time, into Day 9 with five full days remaining, China has already broken its mark for gold medals and is very close to matching the overall total from five years ago.”

The return of wet markets
Old markets, new appeal: Young Chinese rediscover wet markets / Sixth Tone
“Amid renewed interest, wet markets in China are evolving too, merging modern amenities with traditional charm to cater to younger, experience-driven tourists.”

Entertainment
Chinese reality show explores ‘strong woman, weak man’ marriages, sparks debate / Sixth Tone
“‘See You Again’ is one of several Chinese reality shows about relationships that focus on the less glamorous side of love and romance.”