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China Reader Daily Wire | 24 April 2024, Wednesday | Vol.1 No. 64

Anthony Blinken arrives in China amid deteriorating bilateral ties

Far-right European parliament member arrested for aiding Chinese espionage

HIGHLIGHTS
CHINA & THE AMERICAS
Anthony Blinken arrives in China amid deteriorating bilateral ties
On 24 April, the US Secretary of State Anthony Blinken arrived in China amid deteriorating bilateral ties between the two countries. The visit comes as the US and its allies warn China about its sale of weapon components and dual-use products to Russia, aiding Putin’s war in Ukraine. The relations normalised with the meeting between Biden and Xi in November 2023 on the sidelines of the APEC meeting. On his three-day visit, Blinken plans to visit Shanghai to meet students and attend a basketball game. In Beijing, Blinken is set to meet China’s Foreign Minister Wang Yi and President Xi Jinping to discuss various agendas, including the US sanction on Chinese companies. The US and its allies are expecting China to prevent any further weapons shipments to Russia. (Julian Borger, “Antony Blinken arrives in China with warning for Beijing over support of Russia,” The Guardian, 24 April 2024)

CHINA & EUROPE
Far-right European parliament member arrested for aiding Chinese espionage
On 23 April, German Police arrested an aide to the far-right member of the European Parliament, suspected of spying for China. German prosecutors announced Jian G’s involvement in sharing the European Parliament's sensitive information with China’s Ministry of State Security (MSS). The arrest comes before the upcoming EU elections in June. Media reports indicate that the aide was employed by Maximilian Krah, a lead candidate for the far-right Alternative for Germany (AfD) party for the upcoming European Parliament election. Germany’s interior minister Nancy Faeser said that the “spying allegations were serious and are an attack from inside on European Parliament.” The arrest comes after German Police arrested three others suspected of spying for MSS. (“Far-right German politician’s aide arrested for spying for China,” AlJazeera, 23 April 2024)

CHINA READER DAILY WIRE
INTERNAL
Curse of 35 hits white-collar professions in China, says a commentary in Financial Times
On 24 April, according to a commentary in Financial Times, China faces the curse of 35 among the white-collar jobs due to greater home responsibilities. It comes as the economic slowdown and the government’s crackdown on the tech sector led to companies firing thousands of jobs involving older workers. According to Beijing-based labour lawyer Yang Baoquan, there is a perception in China that older people can’t keep up with the latest technological developments. Yang also cited the broadness of China’s labour law, which gives scope for companies to discriminate against older people. According to the All-China Federation of Trade Unions, the average age of workers in China is 38.3. (Kai Waluszewski and Eleanor Olcott, “China’s ageing tech workers hit by ‘curse of 35’,” Financial Times, 24 April 2024)

ECONOMY
Uncertainty looms over China’s real estate sector, says a commentary in The Wall Street Journal
On 23 April, according to a commentary in The Wall Street Journal, China’s real estate sector, including the home-owners, experienced serious uncertainty. Their concern arises as the Chinese government aims to revive consumer demand by encouraging them to spend more to better focus on industrial policy and increased supply. According to data from property agency Centaline, China’s real estate sector faces a decline in overall value by one-fifth. The data also indicates that the price of existing homes in China’s most developed cities fell 7.3 per cent year-over-year in March 2024. Centaline reports that the Chinese property market is facing too many sellers and few buyers. According to Professor Tao Ran, the bleak economy and lack of job opportunities have affected China's housing supply and prices. (Cao Li, “Chinese Villagers Jumped at the Deal of a Lifetime—Then It Turned Sour,” The Wall Street Journal, 23 April 2024)

Chinese farmers place hopes on pig breeding amid lower profitability, says an editorial in SCMP
On 24 April, according to an editorial in South China Morning Post, Chinese farmers placed their hopes on pig breeding as they kept fewer in number amid lower profitability. The report mentions the reasons for the weak market indicators in which the drop in the sow head went below 40 million head. This has impacted the number of piglets, thereby witnessing a sharp rise in prices of 10 per cent in the last two months. The report also mentions the pork cycle which is critical in the country’s food basket. The deflationary pressures have led to a weakened livestock market and consumer spending, posing a severe threat to China’s economic growth targets. China’s central bank predicts a target of 3 per cent annual growth in consumer growth with a 0.1 per cent increase in the consumer price index. The report also mentions farmers holding some pig supplies in anticipation of higher prices, thereby reaping higher profits. (“Meaty economic indicator? China’s distressed pig farmers eye turnaround,” South China Morning Post,” 24 April 2024)

ENERGY & THE ENVIRONMENT
China’s coal consumption threatens climate goals by 2040, says a report by DNV
On 23 April, according to a report published by Norwegian risk assessment firm DNV in The Straits Times, China’s coal consumption will make the climate goals unrealistic to phase out coal by 2040. It also found that China’s coal consumption will reduce by one-third by 2040 and will peak by 2050. The IAEA has said that the countries must phase out coal by 2040 to keep the average global temperature rise within the 1.5-degree Celsius threshold. The report mentioned China’s additional approval of coal power plants of 114 gigawatts in 2023. The report also found that the decarbonization efforts are slowing in China. The report suggests that China could achieve its target by 2060 if it boosts its decarbonization efforts. (“China can’t quit coal by 2040, researchers say, despite global climate goals,” The Straits Times, 23 April 2024)

CHINA & THE MIDDLE EAST
Saudi Arabia looks to China for foreign investments in its Neom project
On 22 April, Business Insider India reported that Saudi Arabia sending its delegation to China to seek investments for its Neom project. The officials visited Beijing, Shanghai, and Hong Kong to gather more attention and funds for the project through road shows. The press release mentioned a private showcase to provide the experience of the 105-mile-long futuristic city in the latter part of 2024. Bloomberg reports that Saudi Arabia significantly reduced the estimated number of people living in the city from 1.5 million to less than 300,000. The Wall Street Journal reported that Saudi Arabia is looking for more funds for its Neom project and other projects of Vision 2030 amid escalating price rise. (Beatrice Nolan, “Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited,” Business Insider India, 22 April 2024)

CHINA & EUROPE
EU targets Chinese surveillance equipment manufacturers under its foreign subsidies regulation
On 23 April, the South China Morning Post mentions the European Union’s latest action against a Chinese company under its foreign subsidies regulation. The investigation was carried out against the Dutch and Polish subsidiaries of the Chinese company involved in manufacturing surveillance equipment. The European Commission (EC) said it was “carrying out unannounced inspections at the premises of a company active in the production and sale of security equipment in the EU.” It also mentioned that the company received foreign subsidies to disturb the internal market. The China Chamber of Commerce to the EU said that the EU authorities acted unjustly against the company. This comes as the Chinese government and its lobbyists aim to go against the EU’s foreign subsidies regulation. (Finbarr Bermingham, “EU ‘dawn raids’ target Chinese surveillance kit maker in latest use of foreign subsidies regulation,” South China Morning Post, 23 April 2024)

CHINA & THE AMERICAS
US exports to China declined by 4.3 per cent, says UCBC report
On 23 April, according to a report released by the US-China Business Council (UCBC) in South China Morning Post, the US exports to China were USD 144.9 billion in 2023, which is a 4.3 per cent decline compared to the 2022 data. The decline was witnessed in the export of agricultural goods and semiconductors due to rising tensions between the two countries. According to UCBC President Craig Allen, the US states are free to maintain their own economic and trade relationship with China. In 2023, China became the third largest trading partner for the US after Mexico overtook it after 17 years. The report warns of major challenges to the US agriculture sector if the trade relations with China worsen. This comes as the US President imposes a Section 301 investigation into China’s maritime, logistics, and shipbuilding sectors and threatens to triple tariffs on Chinese exports. The report mentions China’s weak economy and expanding US export controls as the reasons for reduced demand and weak exports. (Ji Siqi, “US exports to China declined 4.3% year on year in 2023 amid trade tensions: report,” South China Morning Post, 24 April 2024)

PLA Navy displays its JL-2 submarine-launched ballistic missiles before Blinken visit
On 22 April, the People’s Liberation Army (PLA) Navy released the footage of a JL-2 ballistic missile launch from a nuclear submarine just before US Secretary of State Antony Blinken visited Beijing and Shanghai on 24 April. The video was part of the country’s simulated exercise involving the Shandong aircraft carrier and four submarines. The missile has a hit range of 7,400km and was China’s first credible sea-based nuclear deterrent deployed on Type 094A nuclear submarines in 2015. According to an annual Pentagon report published in 2023, the deployment of JL-2 in the Pacific Ocean could threaten targets in the western half of the continental US, Hawaii, and Alaska. The video was released to commemorate the 75th anniversary of the PLA Navy. (Amber Wang, “China shows off nuclear might ahead of top US diplomat Antony Blinken’s visit,” South China Morning Post, 23 April 2024)

EAST ASIA & THE PACIFIC READER
EAST ASIA
North Korean delegation visits Iran
On 24 April, KCNA reported that a North Korean delegation led by the cabinet minister visited Iran. The delegation was led by the Minister for External Economic Relations, Yun Jong Ho. The Straits Times reports that North Korea and Iran are cooperating on ballistic missile programmes involving technology transfer and components export. This comes as Reuters reports suspicion that both North Korea and Iran are supplying ballistic missiles, drones, and artillery shells to Russia’s war in Ukraine. The visit is aimed at breaking the diplomatic isolation of North Korea due to global sanctions. (“North Korea officials visit Iran in a rare public trip,” The Straits Times, 24 April 2024)

Former Japanese Prime Minister Aso meets Trump
On 23 April, former Japanese Prime Minister Taro Aso met Trump in Manhattan, US. Aso currently serves as the vice president of Japan’s ruling Liberal Democratic Party. The Straits Times mentions the close bond between PM Abe and Aso and has experience shaping US-Japan ties. Japan has been trying to forge close ties with Trump as Tokyo is concerned about his win in the upcoming US presidential elections and his potential steps hurting Japanese economic and defence ties with the US. In a press conference, Japanese Foreign Minister Yoko Kamikawa said that Aso’s visit was personal and had no government involvement. The meeting comes after US President Biden held a bilateral meeting with PM Kishida to strengthen the US-Japan alliance. (“Trump meets Japan’s former prime minister Aso,” The Straits Times, 24 April 2024)

THE PACIFIC
“AI is HOT: equal parts Hype, Opportunity, and Threat,” says Australia’s Security Intelligence Organization Director-General Mike Burgess
On 24 April, in a speech to the National Press Club, Director General of Australia’s Security Intelligence Organization Mike Burgess said that he sees it as “AI is HOT: equal parts Hype, Opportunity and Threat.” He warns of AI’s ability to improve the capabilities of Australia’s enemies, which results in increased espionage, disinformation, and radicalization. Burgess also mentions the role of internet facilitating as an incubator for extremism. He also highlights the vast opportunities associated with AI. He also calls for cooperation between the companies and the agencies to ensure privacy via end-to-end encryption. The speech comes after Australia witnessed two knife attacks in the last two weeks, which Police had described as “terrorist incidents.” (“Australia’s spy chief warns AI set to inflame radicalisation,” The Straits Times, 24 April 2024)

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