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Photo : South China Morning Post

China Reader Daily Wire | 27 April 2024, Saturday | Vol.1 No. 67

China’s Q1 industrial profits fell by 3.5 per cent in March 2024, reports Reuters

China to host Palestinian unity talks between Hamas and Fatah groups in Beijing

HIGHLIGHTS
ECONOMY
China’s Q1 industrial profits fell by 3.5 per cent in March 2024, reports Reuters
On 27 April, Reuters reported a fall in China’s Q1 industrial profits by 3.5 per cent year on year in March 2024. This fall raises doubts about Chinese economic recovery. The National Bureau of Statistics (NBS) data showed that the combined profits of China's industrial firms rose 4.3 per cent to USD207.0 billion in the first quarter of the previous year, which is less than a 10.2 per cent rise in the first two months. The data showed that the fall was shown in retail sales and industrial output. JLL economist Bruce Pang said that slow profit growth will affect the country's overall output and investment. Reuters also reports a rise in profits for the Chinese automobile sector by 32 per cent in Q1 as Beijing hosts the auto show after four years of COVID lockdown. (Liangping Gao and Ryan Woo, “China Q1 industrial profits' growth pace stirs doubts about economic recovery,” Reuters, 27 April 2024)

CHINA & THE MIDDLE EAST
China to host Palestinian unity talks between Hamas and Fatah groups in Beijing
On 26 April, Chinese Foreign Ministry spokesman Wang Wenbin said that China is willing to support all Palestinian factions and is willing to host Palestinian unity talks between Hamas and Fatah groups in Beijing. Fatah is the group led by President Mahmoud Abbas of the Western-backed Palestinian Authority (PA), which controls the West Bank. The two groups failed to reconcile due to their political disagreements as Hamas expelled Fatah in a small war in 2007. The Chinese Foreign Ministry said it will promote peace through dialogue and consultation between the two sides. The Ministry also reports a meeting between Chinese diplomat Wang Kejian and Hamas chief Ismail Haniyeh in Qatar in March 2023. (“China to host Hamas, Fatah for Palestinian unity talks,” The Straits Times, 27 April 2024)

CHINA READER DAILY WIRE
INTERNAL
China plans to give USD 1,381 to replace their old cars with EVs or hybrid vehicles
On 26 April, in a joint statement, China’s Ministry of Commerce said it would offer a subsidy of USD 1,381 or CNY10,000 to replace their old vehicles with electric or hybrid cars before the end of 2024. The Ministry added that the people will be eligible for subsidies if they sell old cars with engine sizes of 2.0 litres and below, which are eligible for CNY7,000. The move comes as the EV market slows down in China. Also, the government is trying to boost domestic consumption amid an economic slowdown. According to the China Passenger Car Association data, the estimated passenger car retail sales dropped 1.5 per cent on year in April 2024, which is a 6.2 per cent decline compared to March 2024. Deutsch Bank mentions that the recent subsidy will benefit lower-priced vehicles belonging to brands such as BYD. (Jiahui Huang, “China to Pay Consumers Up to Nearly $1,400 to Replace Old Cars,” The Wall Street Journal, 26 April 2024)

CHINA & CENTRAL ASIA
Chinese Defense Minister vows to deepen military cooperation with Kazakhstan
On 24 April, Chinese Defense Minister Dong Jun vowed to deepen military cooperation with Kazakhstan. While addressing Kazakh President Kassym-Jomart Tokayev in Astana, Dong said that the region is facing severe threats in three forms - terrorism, separatism, and extremism. His remark comes after Dong visited Kazakhstan on 23 April for the annual defence chiefs’ meeting of the Shanghai Cooperation Organisation (SCO). Dong also mentions the possibility of future joint drills and personnel training to improve defence ties. Wong mentions Kazakhstan’s critical role in China’s BRI projects connecting China and Central Asia. (Hayley Wong, “China highlights extremism threat, pledges deeper military ties with Kazakhstan,” South China Morning Post, 26 April 2024)

CHINA & THE MIDDLE EAST
China’s local food delivery giant Meituan to debut in Riyadh, Saudi Arabia
On 26 April, the South China Morning Post reports China’s local food delivery giant Meituan’s plans to debut in Riyadh, Saudi Arabia. This comes as the company expands its first overseas market amid a domestic economic slowdown. It is planning to debut its KeeTa app in the Middle East. The company’s entry will compete directly against local rivals, including Jahez International Co, Delivery Hero’s Talabat and HungerStation, and Uber Technologies-backed Careem. The move also comes after Saudi Arabia plans to diversify its economy to become a tourism and commercial hub. The company has already started posting job openings for its KeeTa app via LinkedIn and website. According to SCMP, the KeeTa app launched in May 2024 only took a few months to reach the second spot in Hong Kong, ahead of Deliveroo. (“Chinese food-delivery giant Meituan to debut in Saudi Arabia’s capital Riyadh as international expansion quickens,” South China Morning Post, 26 April 2024)

CHINA & THE EUROPE
Maintaining close ties with Russia was of “particular importance,” says China’s Defence Minister Dong Jun
On 26 April, China’s Defence Minister said on Friday that maintaining close ties with Russia was of “particular importance.” This comes as the US calls China to end its support of Russia’s war in Ukraine. Dong made the statement on the sidelines of a defence ministers’ meeting of the Shanghai Cooperation Organisation (SCO). He added that ties with Russia are critical for strategic stability worldwide. Russian Defense Minister Sergey Shoigu said both sides carry out complex war exercises in all domains. The Astana meeting coincided with the meeting of US Secretary of State Antony Blinken’s trip to Beijing. (Liu Zhen, “Chinese and Russian defence ministers reaffirm close bilateral ties,” South China Morning Post, 26 April 2024)

China summons German ambassador over Berlin’s arrest of four people on espionage charges
On 24 April, Germany’s ambassador to China, Patricia Flor, said on X that China’s Ministry of Foreign Affairs summoned her for the four German citizens arrested for espionage charges. She said Germany did not tolerate spying “regardless of which country it comes from.” She added the arrest was by constitutional means. The Chinese Foreign Ministry blamed Germany for its wrong accusations. The issue arose after Germany arrested an aide to Maximilian Krah, a member of the European Parliament for the far-right Alternative for Germany (AfD), on suspicion of spying for Chinese intelligence agencies. The arrests were made after German Chancellor Olaf Scholz's trip to China last week. (Yuanyue Dang, “Chinese spy claims: Beijing summons German ambassador to protest after 4 arrested on espionage charges,” South China Morning Post, 26 April 2024)

CHINA & THE AMERICAS
China is fuelling biggest threat to European Security, says US Secretary of State Blinken
On 26 April, in an interview with BBC, the US Secretary of State Antony Blinken told his counterparts that China is helping to fuel the biggest threat to European Security. He praised China’s efforts to stop the fentanyl supplies to the US. He also stressed that China should play a constructive role in resolving tensions in the Middle East. His statement comes after his recent visit to China. He mentions that the only way to improve ties between the West and China is for Beijing to stop war aid to Russia. (Laura Bicker, China correspondent, and Flora Drury, “Blinken says China helping fuel Russian threat to Ukraine,” BBC, 26 April 2024)

THE PACIFIC
Five teenagers were charged amid anti-terror raids across Sydney, Australia
On 25 April, five teenagers were charged during the anti-terror raids across Sydney, Australia. The arrests come as the local police conduct an investigation on a teenage boy who killed an Assyrian bishop during a church sermon in Sydney. The police said they had arrested three teenagers, and the other two were charged with violent extremist acts. More than 400 officers were involved in the investigation across Sydney. The police said that the teenagers were religiously motivated as part of a larger network of associates. On April 24, New South Wales police deputy commissioner Dave Hudson said there was a need for an intensive surveillance system to take immediate action. (“Five Australian teens charged following anti-terror raids,” The Straits Times, 25 April 2024)

EAST ASIA & THE PACIFIC READER
EAST ASIA
The US and Taiwan plan to hold new trade negotiations on 29 April
On 26 April, the US Trade Representative’s (USTR) office said the US and Taiwan will hold another round of trade negotiations for the planned trade agreement on 29 April in Taipei. The Straits Times mentions that USTR and the Taiwan Economic and Cultural Representative Office lead the talks from both sides. They intend to discuss complex issues such as agriculture, labour, digital trade, environment, and state-owned enterprises. The Straits Times notes a solid US-Taiwan economic relationship, with the US benefiting from increased exports and Taiwan benefiting from an alternative trading source to resist China’s economic coercion. The trade talks are expected to occur before the inaugural ceremony of Lai Ching-te as the new President of Taiwan on 20 May. The negotiations come as both sides signed an agreement on the first part of the “US-Taiwan Initiative on 21st Century Trade” in June 2023. (“US, Taiwan to resume trade talks in Taipei on April 29,” The Straits Times, 27 April 2024)

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