Where is China’s foreign minister?

• In recent years, Beijing has begun shifting its investment priorities from infrastructure development to industrialization and renewable energy infrastructure.
• The recent China-Central Asia Summit held in Xi’an showcased the growing collaboration between China and Central Asian countries in the renewable energy sector.

China’s investments in the clean energy sector enhance energy security for Central Asian countries while challenging Russia’s influence in the region, raising the bar for European and American renewable sector investors and companies, and making Beijing the norm-setter.

Yunis Sharifli has the details.

Yunis Sharifli

Where is China’s Foreign Minister Qín Gāng 秦刚? Qin has been notably absent from the public stage for more than three weeks, stirring up speculation as to why. China’s top diplomat Wáng Yì 王毅 had attended the ASEAN meeting in Jakarta last week in Qin’s place due to “health reasons,” according to the Chinese Foreign Ministry.

But the brief official statement hasn’t stopped a swell of rumors (many of which are coming from Hong Kong and Taiwan), particularly the popular theory that Qin has been benched for allegedly having an affair with state-backed Phoenix News TV journalist Fù Xiǎotián 傅晓田.

When asked about the rumor, Chinese Foreign Ministry spokesperson Máo Níng 毛宁 said, with clear discomfort: “I am not familiar with the situation you’re talking about” (video here). Her comment was omitted from the official daily press briefing that was later published to the foreign ministry’s website

China has enough electricity to power through peak demand over the summer even as temperatures hit record highs across the country, Jīn Xiándōng 金贤东, a spokesman for China’s top planning agency the National Development and Reform Commission (NDRC), said at a press briefing today.

The amount of coal reserves at power plants reached a “record high of 199 million tons” at the end of June, Jin said. China recorded its highest ever temperature of 52ºC (126ºF) in northwest Xinjiang’s Turpan Depression yesterday.

Climate cooperation can help reset U.S.-China ties and lead efforts to counter global warming, U.S. climate envoy John Kerry told a roomful of high-ranking Chinese officials today. Kerry is currently on a trip to China from July 16–19 aimed at restarting climate talks between the world’s two biggest carbon polluters after a year-long hiatus.

“Our hope is that this can be the beginning of a new definition of cooperation and capacity to resolve differences between us,” Kerry told Wang Yi in the meeting (readout from Washington, Beijing) at Beijing’s Great Hall of the People. “We are very hopeful that this can be the beginning not just of a conversation between you and me and us on the climate track but that we can begin to change the broader relationship.”

Meanwhile, former U.S. Secretary of State Henry Kissinger met with China’s Defense Minister Lǐ Shàngfú 李尚福 today in Beijing, the Chinese Foreign Ministry said in a statement. The surprise trip is Kissinger’s first public visit to the Chinese capital in four years.

“I am here as a friend of China…The United States and China should eliminate misunderstandings, coexist peacefully, and avoid confrontation. History and practice have continuously proved that neither the United States nor China can afford to treat the other as an adversary,” Kissinger was quoted as saying (our translation).

China’s eastern Zhejiang province will lift all household registration restrictions except for in the capital city of Hangzhou to combat income inequality, according to new plans issued by the provincial government. The plan will go into effect on July 22 and will last for five years.

China’s household registration system, known as hùkǒu (户口), restricts people from accessing government services outside their registered area of residence, and is often criticized for limiting workers’ mobility. The plan aims to “facilitate the relocation and integration of rural migrants into urban areas,” Chinese state-backed tabloid Global Times said.

Chinese state media: Xinhua News Agency top story is a one line note (in Chinese, English) about Xí Jìnpíng 习近平 meeting Algerian President Abdelmadjid Tebboune in Beijing today.

The People’s Daily’s print edition covers:

• Xi’s meeting yesterday with former Philippine President Rodrigo Duterte;
• Two stories that put a positive spin on yesterday’s release of GDP and other economic stats;
• A piece on China’s No. 3 Politburo Standing Committee member Zhào Lèjì 赵乐 meeting visiting cadres from the Russian Communist Party;
• A classic state media story headlined “Another bumper harvest of summer grain across the country.”

• Launched in early June, the institution has already emerged as the ultimate dream school for many students in China, with some showing off their acceptance letters on social media and envisioning a fulfilling college experience at the institution.
• Shanhe University boasts an ultra-modern campus, an accomplished faculty, and a roster of well-designed programs, according to its website.

It’s the perfect college in every way…except that it’s not real.

Zhao Yuanyuan

• Throughout the 1990s and 2000s, Chile ambitiously expanded its trade links abroad, while pursuing a policy of non-interference in the domestic affairs of their trading partners, which suited China just fine. Chile has now signed the most cooperative agreements of any South American country with China.
• China has invested heavily in Chile, which is the largest supplier of copper, shipping $9.3 billion worth of the metal to China in 2022.

But prosperous partnerships aren’t always trusting ones.

• Chilean elites secretly view China with “mistrust and fear” of Beijing’s leverage, writes Pamela Aróstica Fernández, Director of the China and Latin America Network, in a recent MERICS report.
• In 2018, when Chinese company Tianqi Lithium wanted a 32% stake in the chemicals company Sociedad Química y Minera (SQM), Chilean authorities delayed the deal: They were concerned Chinese business could go behind their backs and start buying SQM’s goods below the market price.

In the end though, writes Alex Colville in this week’s China Ties column, the two countries have always maintained a mutually beneficial, win-win relationship, which isn’t expected to change anytime soon.

Alex Colville

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:

Electric vehicles
How China beat everyone to be world leader in electric vehicles / Bloomberg (paywall)
“In the race to reduce carbon emissions, countries from the U.S. to New Zealand are doling out incentives to spur electric-vehicle sales — tactics China used for years as it turned into the biggest EV market on Earth.”

Economic growth, economic woes
Will China ever get rich? A new era of much slower growth dawns / Reuters
“China is entering an era of much slower economic growth, raising a daunting prospect: it may never get rich.”
Real estate and job worries slow China’s economy / Nikkei Asia (paywall)
Opinion: Unlike U.S. and Europe, China can keep its economy steady without rushing into lower interest rates / SCMP (paywall)
David Brown writes, “Flat CPI inflation is a mark of the Chinese government’s success in navigating the energy crisis, keeping core inflation pressures contained.”
The man charged with steering the yuan through China’s economic turmoil / WSJ (paywall)
“The Chinese currency’s value has been sliding this year, as the world’s second-largest economy stagnates. Economists and some Beijing officials worry the decline could turn into a rout, destabilizing China’s financial system.”
Can EVs and solar panels save China’s economy? / WSJ (paywall)
“China’s bet on hard tech such as chips isn’t going well. But the story could be different a few years down the line.”
China vows to roll out consumption support policies without delay / Nikkei Asia (paywall)
“China’s top economic planner pledged on Tuesday that it would roll out policies to ‘restore and expand’ consumption without delay as consumers’ purchasing power remained weak, suggesting an urgency to revive domestic demand.”
China’s new consumption plan may do little to boost growth / Bloomberg (paywall)

AI
Opinion: AI risks require China and U.S. to work together / Nikkei Asia (paywall)
Brian Wong and George Chen write: “In an age of intensifying strategic competition between Beijing and Washington and heightened geopolitical risk around the world, the stakes are only compounded. As the two leading national powers, the U.S. and China should step up to their due responsibility to keep the peace and engage in constructive collaboration and candid conversation about controlling AI-induced existential risk.”

Jobs and education
China jobs: trash inspector with a master’s degree shows how ‘education reform is imminent’ / SCMP (paywall)
“China’s unemployment rate among its urban youth keeps touching new highs, including an all-time record of 21.3% in June, according to official figures. It had been 20.8% in May, and 20.4% in April, compounding fears as graduations approached.”

Steel industry
Chinese steel companies continue facing sluggish demand as new construction falls / Caixin (paywall)
“China’s steel output grew a mere 1.3% in the first half with most of the growth achieved in the first three months, showing a sluggish demand amid an ailing property sector.”

Development and real estate
As China property crisis deepens, price falls spark delisting fear / Nikkei Asia (paywall)
“A number of property developers listed on the Chinese mainland are scrambling to conduct share buybacks or issue more equity through private placements after a plunge in their stock prices put them at risk of being kicked off the country’s bourses. For some, it’s already too late.”
China’s existing-home prices back in free fall as sellers rush in / Nikkei Asia (paywall)
“Prices for existing homes in China are tumbling even in major cities as an influx of sellers and a dearth of buyers undermine the once-unquestioned assumption that the market would only keep growing.”
China property recovery proves short-lived as industry contracts / Caixin (paywall)
Chinese pre-owned housing prices slide again in June / Caixin (paywall)

Evergrande
Evergrande’s liabilities, depleted coffers raise business viability concerns / Reuters
“China Evergrande Group’s huge liabilities and diminishing cash disclosed in its long-overdue reports for the past two years raises questions about the viability of its restructuring plan and operations, creditors and analysts said.”
Evergrande’s overdue results show steep losses, liabilities / Nikkei Asia (paywall)
Chinese developer Evergrande reveals $81 billion loss from property crisis / FT (paywall)
Evergrande finally reveals $14.8 billion loss / Caixin (paywall)

Shein and Temu
Temu accuses fast fashion leader Shein of bullying suppliers / Caixin (paywall)
“Chinese-owned online retailer Temu sued rival Shein in the U.S., alleging it violated antitrust laws by using threats and intimidation to block clothing manufacturers from working with the fast-rising upstart.”

Foxconn
Foxconn buys equipment from Apple for expansion in India / Bloomberg (paywall)
“Foxconn Technology Group has bought $33 million worth of equipment from an Apple Inc. unit for its operations in India over the past year, signaling the key iPhone assembler’s accelerating expansion in the country.”

SCIENCE, HEALTH, AND ENVIRONMENT:

COVID-19
Chinese province saw cremations jump during COVID surge / Reuters
“Cremations in the Chinese province of Zhejiang rose more than 70% year-on-year in the first quarter, government data showed, an unexplained jump that occurred as a COVID outbreak swept the country.”
China deletes COVID-19 death data / FT (paywall)
“One of China’s most populous provinces has deleted mortality data that offered an indication of the heavy death toll from Beijing’s relaxation of COVID-19 controls at the end of last year.”

Extreme weather
Hong Kong grinds to halt as Typhoon Talim lashes city, forcing school closures, disruption of flights / SCMP (paywall)
“Most of Hong Kong ground to a halt on Monday as Typhoon Talim brought strong winds and heavy rain, forcing many workers to stay at home, the cancellation of school classes and the disruption of flights as the No. 8 warning signal remained in effect for nearly 16 hours.”
China sets heat record as John Kerry arrives to discuss climate / WSJ (paywall)
“Temperatures in a Chinese village hit a searing 126ºF [52ºC], the highest ever recorded in the country, on the same day that U.S. climate envoy John Kerry arrived in Beijing to try to revive stalled cooperation on climate change between the world’s two largest emitters of carbon dioxide.”
As China bakes in record heat, Kerry presses Beijing on climate change / NYT (paywall)
Heatwave sweeps across China, claiming lives and rewriting records / Sixth Tone
“In the past 10 days, multiple cities issued over 200 heat alerts amid scorching conditions, and this season also recorded the highest number of days exceeding 35ºC since 1961.”

Agriculture
China food security: critical grain harvest sees first summer drop in five years, autumn dip may follow / SCMP (paywall)
“China’s grain output for the year is not looking good, as the summer yield is down and more extreme weather looms, analysts warn.”

Space travel
China may launch next-generation crewed spacecraft as early as 2027 / Reuters
“China’s next-generation crewed spacecraft, which can transport up to seven astronauts, may fly for the first time between 2027 and 2028, a veteran Chinese astronaut said.”

POLITICS AND FOREIGN AFFAIRS:

The Communist Party, elite politics, and government
China Unicom boss Liu Liehong tipped to be named head of new data bureau / SCMP (paywall)
“Beijing is expected to name [Liú Lièhóng 刘烈宏] the chief of state-owned telecoms firm China Unicom as head of its new National Data Bureau, according to people familiar with the situation.”
Former top city prosecutor booted from Communist Party on graft charges / Caixin (paywall)
“Zhào Jiànwěi 赵建伟, former chief prosecutor of Dalian, Northeast China’s Liaoning province, has been expelled from the Communist Party for serious violations of duty and alleged bribery, as the country ramps up its efforts to wipe out corruption in the judiciary.”

China’s missing foreign minister
Chinese foreign minister’s absence sparks speculation / FT (paywall)
“China’s outspoken foreign minister Qín Gāng 秦刚 has not been seen in public for more than three weeks, missing important diplomatic engagements and prompting growing speculation about his whereabouts.”
China foreign minister’s mystery absence fuels black box concern / Bloomberg (paywall)
Where is China’s foreign minister? Beijing won’t clear up the mystery. / NYT (paywall)

Household registration
Chinese province scrapping household registration rules to promote common prosperity / Caixin (paywall)
“China’s eastern province of Zhejiang will remove restrictions on household registrations in most areas except for the capital city of Hangzhou in a move to foster income equality and spur economic growth.”

Taiwan
Taiwan says looking to buy NASAMS air defense system from U.S. / Reuters
“Taiwan is looking to buy National Advanced Surface-to-Air Missile Systems, or NASAMS, from the United States to upgrade its air defense capabilities having seen how well they work in Ukraine, the island’s defense minister said on Tuesday.”

U.S.-China competition and tensions
China’s defense minister, Kissinger hold talks on Sino-U.S. relations / Reuters
“The United States should exercise sound strategic judgment in dealing with China, China’s defense minister Lǐ Shàngfú 李尚福 said while meeting veteran U.S. diplomat Henry Kissinger in Beijing on Tuesday.”
Kissinger meets China defense chief in pursuing closer ties / Bloomberg (paywall)
U.S. envoy Kerry says climate cooperation could redefine U.S.-China ties / Reuters
“China and the United States could use climate cooperation to redefine their troubled relationship and lead the way in tackling global warming, U.S. climate envoy John Kerry told senior Chinese officials on Tuesday.”
Climate envoy John Kerry told US should be ‘pragmatic and positive’ towards China as he meets Beijing’s top diplomat Wang Yi / SCMP (paywall)
Yellen says U.S. investment curbs won’t ‘fundamentally’ hurt China / Bloomberg (paywall)
“U.S. Treasury Secretary Janet Yellen said restrictions the Biden administration is crafting on outbound investments to China wouldn’t significantly damage the nation’s ability to attract U.S. investment.”

Japan
Japanese, Chinese defense officers revive exchanges after 4 years / Nikkei Asia (paywall)
“Officers from the Japan Self-Defense Forces and the Chinese military met in Beijing on Monday, resuming an in-person exchange program for the first time since before the COVID-19 pandemic.”

Philippines
South China Sea: Xi Jinping calls on ex-Philippine president Rodrigo Duterte to continue boosting ties / SCMP (paywall)
“Chinese President Xí Jìnpíng 习近平 has called on a former Philippine president to ‘play an important role’ in promoting ties between their countries amid territorial disputes in the South China Sea and Manila’s growing defense ties with the U.S.”

Russia
China and Russia step up military co-operation on Japan’s doorstep / FT (paywall)
“The ‘Northern/Interaction-2023’ exercise, which kicked off in the Sea of Japan on Monday, is technically part of the Chinese military’s regular annual training programme, a sequence of drills that rotate through its military districts. It is unclear how long the exercises will last.”

SOCIETY AND CULTURE:

Taoism
Checking in on Taoism abroad / Sixth Tone
“Where do Taoists around the world look for leadership?”

Movies
Tang Dynasty poetry comes alive in animated film ‘Chang An’ / Sixth Tone
“Blending modern animation with traditional poetry, ‘Chang An’ has been a surprise hit at the box office and won praise for its celebration of traditional Chinese culture.”