Photo : Global Times
Photo : Global Times
China Reader Daily Wire | 29 August 2024, Thursday | Vol.1 No. 160
ECONOMY
China's MNC’s 14.2 per cent growth showcases sustained growth
On 28 August, CGTN reported on Chinese multinational companies sustaining their growth. According to a report the MNCs, the industrial structure, and regional layouts were optimized by the Chinese use of FDI in 2023. The report noted that there has been 14.2 per cent increase in the first half of 2024 related to foreign-funded enterprises. The Vice President of the Chinese Academy of International Trade and Economic Cooperation, Yu Zirong, stated that multinational companies have continued to benefit by investing in China by increasing profits, optimising cost structures and improving resource allocation, he also said: “From 2018 to 2022, the annual average growth rate of operating revenues for foreign-invested industrial enterprises in China reached 4.1 per cent, accounting for over 20 per cent of the total operating revenues of industrial enterprises above the designated size, with profit margins remaining above 7 per cent.” (“China's newly established foreign-funded enterprises grow by 14% yoy,” CGTN, 29 August 2024)
EXTERNAL
China ready to collaborate with the UN to review legislation used in Xinjiang, reports VOA
On 28 August, VOA reported on China’s readiness to engage with the Office of the High Commissioner for Human Rights, for a comprehensive review of Beijing’s laws and policies in Xinjiang. China and its policies have been at a point of tension in recent years for the international community, especially for major issues like incarcerating more than 1 million Uyghurs in Xinjiang. In the 2022 report, the then-UN High Commissioner for Human Rights Michelle Bachelet condemned the abuses in Xinjiang and stated that the report cited mass arbitrary detentions and forced labour and urged the Chinese government to address these violations and implement meaningful reforms. On 27 August, OHCHR released a report and renewed its call for a complete review of China’s laws, especially those impacting ethnic and religious minorities in Xinjiang. Foreign Ministry spokesperson Lin Jian said: “China was willing to engage and warned against the politicization of human rights and divisive confrontational actions. We believe that the OHCHR needs to fulfill its mandate in a just and objective manner, respect countries’ sovereignty, respect facts, and conduct constructive dialogue and cooperation with countries. Xinjiang today enjoys social stability and economic growth, and the people there live a happy life,” he said. It is at its best in history, where people of all ethnic groups are working together for a better life.” (“China willing to engage with UN rights body on Xinjiang,” VOA, 29 August 2024)
CHINA & TAIWAN
KMT chairperson expresses that ‘both sides of the Taiwan Straits belong to the same Chinese nation’ to China’s Taiwan affairs office, reports CGTN
On 29 August, CGTN reported on China’s effort to improve institutional mechanisms and policies to boost Cross-Straits integrated development as the Taiwan office in China meets with the chairman of KMT. The Head of the China’s Taiwan Work Office Song Tao, said: “based on the common political foundation of adhering to the 1992 Consensus and opposing Taiwan's independence, the mainland is willing to work with the KMT to oppose Taiwan's independence separatism and external interference, promote the peaceful development of cross-Straits relations, and advance national reunification and rejuvenation.” Additionally, the Vice Chairman of the Chinese Kuomintang (KMT) party, stated both sides of the Taiwan Straits belong to the same Chinese nation, based on the common political foundation of adhering to the 1992 Consensus, the KMT is willing to safeguard peace and stability across the Straits and promote positive growth. (“Mainland's Taiwan affairs official meets with KMT vice chairman,” CGTN, 29 August 2024)
CHINA & SOUTHEAST ASIA
Mekong dam did not discharge water as Thailand is ravaged by floods, says China’s embassy in Thailand
On 27 August, the South China Morning Post reported that flood water was not being discharged by a major dam on the Mekong River amid heavy floods. Extensive flooding has been caused in some areas of Thailand killing at least nine and affecting more than fifty thousand people. The flooding along the banks of the Mekong has concerns over hydropower dams along China’s stretch of the river, known as the Lancang. The National Water Resources has sent an emergency notice to the Mekong River Commission, urging Laos and China to work together and decrease water discharges from dams. The Chinese embassy in Thailand said: that the embassy added that it was highly concerned about flooding in north and northeast Thailand, but a preliminary investigation had confirmed that water levels in the Lancang River remained stable and its reservoirs do not currently need to discharge water. The six countries of the Lancang-Mekong River basin are a community with a shared future … China fully respects and considers the interests and concerns of the countries in the basin and China is willing to further enhance information sharing and cooperation on water resources, improve comprehensive river basin governance, and jointly address challenges such as climate change and flood disasters.” (“China says Mekong dam did not discharge water downstream amid heavy flooding in Thailand,” South China Morning Post, 29 August 2024)
CHINA & AFRICA
China supports Africa in modernization and poverty relief, says Chinese Foreign Ministry’s spokesperson
On 28 August, CGTN reported on China’s support for Africa's modernization and efforts in poverty relief. Chinese Foreign Ministry spokesperson Lin Jian said: “Over the years, under the principle of sincerity, real results, amity and good faith and the principle of pursuing the greater good and shared interests, we have made active effort to implement the Program for Strengthening Cooperation on Poverty Reduction between China and the African Union, and carried out poverty reduction exchanges and cooperation under the framework of Forum on China-Africa Cooperation (FOCAC), which produced remarkable results.” Lin further stated that the technology has enabled many African citizens to increase their income and China's hybrid rice has helped increase the rice yields in many African countries by increasing 7.5 tonnes per hectare and also by setting up demonstration villages of rice cultivation to help the agriculture. Additionally, China-Africa cooperation helped African countries to advance the industrialization process and self-reliance on economic growth, Furthermore, Lin said: “that Nigeria's Lekki Free Trade Zone, the China-Egypt TEDA Suez Economic and Trade Cooperation Zone and other cooperation zones, which benefit from Chinese investment, make African countries a much stronger magnet for foreign investment and formed industry clusters that took made in Africa worldwide.” (“China has always staunchly supported Africa's poverty alleviation: spokesperson,” CGTN, 29 August 2024)
Chinese Peace Ark in Africa providing medical aid to 2000 South Africans, says an editorial in BBC
On 29 August, an editorial in BBC titled “Why South Africans are flocking to a Chinese hospital ship,” focused on the financial crisis in Africa’s biggest and most developed economies leaving the public services underfunded, the call came after the government signed the controversial new health scheme, which aims to provide universal healthcare for all, along threats of legal challenges. China's Peace Ark docked in the African harbours providing medical aid for nearly 2,000 South Africans ranging from maternity check-ups and cataract surgeries to cupping therapy. The African National Congress (ANC) stated its National Health Insurance (NHI) scheme will improve all services at both public and private facilities paid out of a central fund. Health Minister Aaron Motsoaledi insisted on implementing the scheme immediately despite the party losing its parliamentary majority. Additionally, the critics fear that the initiative could prompt an exodus of health professionals to find employment abroad. Dr Manjra said: “Our history of corruption and incompetence will potentially destroy the entire health sector. There's an estimate that in some cases up to a third of the health budget is lost through corruption. Dealing with these issues within the public health sector should be the priority.” (“Why South Africans are flocking to a Chinese hospital ship,” BBC, 29 August 2024)
CHINA & THE AMERICAS
A new round of China-US strategic communication as Chinese FM meets US State Advisor, reports CGTN
On 28 August, CGTN reported on China-US strategic communication in Beijing. China’s Foreign Minister Wang Yi stated the key to the guidance of the two states is to maintain the same direction in the relationship, he further said: “calling on China and the U.S. to uphold the principles of mutual respect, peaceful coexistence and win-win cooperation and implement the consensus reached by the two heads of state to promote the stable, sound and sustainable development of bilateral relations.” According to Wang, China is committed to delivering a better life for its people and contributing to world peace and development, the US should not use its path to speculate on China. The US National Security Advisor Jake Sullivan said: “there are differences and competition between the U.S. and China, but there are also many areas where cooperation is needed and the two countries should treat each other as equals and competition should be healthy and fair. The United States has no intention of decoupling from China.” Additionally, both sides agreed to continue the important consensus by maintaining high-level exchanges and communication at all levels and continue to carry out cooperation in drug control, law enforcement, repatriation of illegal immigrants and climate change mitigation. Furthermore, Wang and Sullivan also agreed to institutional arrangements by hosting a video call between theatre leaders of the two militaries and intergovernmental dialogue on artificial intelligence at an appropriate time. (“What do we know from the new round of China-U.S. strategic communication,” CGTN, 29 August 2024)
China Reader Daily Wire | 28 August 2024, Wednesday | Vol.1 No. 159
CHINA & AFRICA
Nigerian President visits China seeking economic cooperation, reports Reuters
On 27 August, Reuters reported that Nigerian President Bola Tinubu met with Chinese leader Xi Jinping to discuss cooperation on the economy, agriculture, and satellite technology. A spokesperson of Nigeria, Ajuri Ngelale said: “This is going to be part of a broader engagement where the two heads of state will discuss matters of mutual interest across not just the economy, but also on issues of national, regional, and international security.” Additionally, Reuters reported on Tinubu's agenda in China including site visits to two major Chinese companies: Huawei Technologies and the China Rail and Construction Corporation as Nigeria is keen to complete a high-speed rail line linking Ibadan in southwest Nigeria to the capital. Furthermore, Nigeria is also seeking investment to boost its economy, battling double-digit inflation, foreign currency shortages, and issues such as crude oil theft. (“Nigeria's Tinubu to visit China seeking economic cooperation,” Reuters, 28 August 2024)
EXTERNAL
UN states China's controversial laws remain in Xinjiang, reports SCMP
On 27 August, SCMP reported that the Office of the United Nations High Commissioner for Human Rights (OHCHR) had stated that “problematic laws and policies” remain enforced across Xinjiang province in China. This comes two years after a report by the United Nations (UN) stated that policies by the Government of the People’s Republic of China in Xinjiang may constitute ‘crimes against humanity.’ The OHCHR stated that it faced difficulties in Xinjiang, in terms of accessing information and the fear of reprisals against individuals communicating with the UN. Spokesperson for the UN High Commissioner for Human Rights, Ravina Shamdasani stated that allegations of human rights violations needed to be fully investigated, and that an OHCHR team had visited China in June to engage with the authorities over the justice system and counterterrorism policies, including in Xinjiang. Shamdasani also informed that the OHCHR has continued to raise concerns with the Chinese government, over the targeting of ethnic and religious minorities in Xinjiang, as well as individual cases of concern such as detentions and disappearances. The Chinese government has denied all allegations of human rights violations in Xinjiang, although the US and European Union (EU) have taken action against Chinese officials suspected of complicity in crimes, and the import of goods made with forced labor in Xinjiang. Uyghur activists welcomed the OHCHR statement, while the Chinese government made no response. ( Finbarr Bermingham, “ China’s ‘problematic laws’ remain in Xinjiang two years after damning report: UN,” South China Morning Post, 27 August 2024)
ECONOMY
IBM shuts down its R&D operations in China, reports SCMP
On 26 August, SCMP reported on IBM reportedly shutting down its research and development (R&D) operations in China, by joining global Big Tech firms in trimming their mainland businesses amid geopolitical prevention of its progress. The call came after IBM’s employees found themselves blocked from accessing the company’s intranet system. An IBM representative said: “IBM adapts its operations as needed to best serve our clients, and these changes will not impact our ability to support clients across the Greater China region, IBM’s local strategy is focused on having the right teams with the right skills to help Chinese companies – especially privately owned firms – co-create hybrid cloud and artificial intelligence (AI) solutions by drawing on its “considerable technology and consulting expertise.” Additionally, IBM’s revenue in the country dropped 19.6 per cent compared to a 1.6 per cent rise in the Asia-Pacific region, for the year 2023. China provided a Development Lab for making important contributions to IBM for the development of the company’s AI generative platform WatsonX, Furthermore, IBM reported 2 per cent growth in global revenue for the second quarter, and 7 per cent in software sales. (“IBM China said to be laying off more than 1,000 employees as it closes research labs,” South China Morning Post, 28 August 2024)
OPINION
More negative than positive views of China globally, survey by the Pew Research Center
On 09 July, Pew Research Center released the report of its opinion survey conducted across 35 countries regarding views on China. According to the survey, the overall median of the 35 nations found that 35 per cent of respondents held a positive view of China, while 52 per cent held a negative view. However, the survey found that there were discrepancies among the countries, based on economic status. In the 18 high-income countries polled, views on China were largely negative overwhelmingly (such as 71 per cent of respondents in Canada or 82 per cent in Sweden holding an unfavourable view of China). However, among high-income countries, Chile, Singapore, and Greece were exceptions; with positive and negative views on China divided. On the other hand, the 17 middle-income countries polled held a more positive view of China; with the exception of India, Türkiye, and the Philippines. At the same, the survey found there is an age gap in terms of views over China since younger people hold a much more favourable view of Beijing than older people. Countries like Brazil and the UK had a large age gap; since people in the age group of 18-34 years were 25 points more likely to hold a positive view of China than those aged 50 and older. Hungary and South Korea were the only surveyed nations where younger people held a less favourable view of China, as compared to older ones. The survey also discovered an ideological difference vis-à-vis views on China in some nations; such as the US and Israel where left-wingers held a more positive view of China, in comparison to right-wingers. The opposite held true in nations like Bangladesh and Spain, with right-wingers viewing China more favourably than left-wingers. Another finding of the survey was the change in opinions on China in different countries over time. In countries like the Philippines, Israel, and Hungary, favourable opinions on China have declined over time. External events like China’s condemnation of Israeli actions during the war with Hamas or China’s offer for a security pact with Hungary have played a part in this. A major finding of the survey is that few of the respondents have confidence in the leadership of the President of China, Xi Jinping; with 62 per cent across the 35-country median expressing little or no confidence in his leadership. There is an economic discrepancy to be found here; with high-income nations in Europe, North America, and the Asia-Pacific expressing less confidence than middle-income countries in the Asia-Pacific and Africa. Middle-income India and high-income Singapore are exceptions to this. The survey also found that opinions on Xi have also declined across countries. (Laura Silver, Christine Huang, Laura Clancy, and Andrew Prozorovsky, “ Views of China and Xi Jinping,” Pew Research Center, 09 July 2024)
China attempts to utilize Tibet to expand influence in the Himalayan region, says an opinion in Deccan Herald
On 25 August, an op-ed published in the Deccan Herald argued that the Government of the People’s Republic of China was attempting to use Tibet as a platform through which it could expand its influence in the Himalayan region. The op-ed gives the example of the ‘China-Xizang Himalayan Forum’ as a way of encircling India; noting how the first meeting of the Forum was initiated at a Tibetan prefecture opposite the Indian state of Arunachal Pradesh which China claims. The op-ed claims that China is using the Forum as a way of encircling India, with the inclusion of South Asian countries like Pakistan, Nepal, and Bhutan in the Forum meetings given as an example of trying to put pressure on India. Another claim made in the op-ed is that the Forum is being utilized as a platform to garner support for the Chinese government’s policies on Tibet. In order to justify this, the author points out how the latest meeting of the Forum on 5 July involved countries like Sri Lanka, Chile, and South Korea which are not connected in any manner to the Himalayan region. According to the op-ed, the Chinese government aims to dominate Tibet completely; giving the example of how the Tibet Forum Meeting in 2020 attended by members of the Politburo of the Chinese Communist Party declared the goal of the “sinicization of Tibet.” The op-ed alleges that the Chinese government has been trying to fill Tibet with Han Chinese identity, pointing out how Tibetans are a minority in Tibet now due to the migration of 7.5 million Han Chinese. The op-ed also points out how China has tried to take control of the succession of the Dalai Lama, and built “well-off society” villages on Tibet’s borders, with the op-ed believing that this is intended to consolidate Chinese dominance in the region. A key argument made in the op-ed is that China’s attempts to modernize Tibet through funding infrastructure projects like railways, energy pipelines, and hydroelectric dams; are leading to the destruction of the Tibetan ecology. The op-ed states that Tibetan glaciers have melted over 15 per cent in the past decades, due to China diverting water and electricity from Tibet, and exploiting Tibetan minerals. The op-ed concludes by urging the Government of India to review its policies in the Himalayan region. It encourages the Indian government to build an international Buddhist circuit in Arunachal Pradesh, promote eco-tourism, and prepare for turbulence in the region. ( Srikanth Kondapalli, “ China-Xizang Himalayan Forum: The cynical ‘sinicisation’ of Tibet,” Deccan Herald, 25 August 2024)
INTERNAL
China issues 16,000 test licenses for autonomous vehicles, reports CGTN
On 28 August, CGTN reported that 16,000 test licenses for autonomous vehicles had been issued in China, according to the Ministry of Public Security of the People’s Republic of China. The Ministry announced at a press conference, where they also revealed that 32,000 kilometers of roads nationwide had been opened for autonomous vehicle testing. Data from the Ministry shows that 250 million digital driver’s licenses have been issued across China so far, alongside a pilot program for digital vehicle licenses in 60 cities. A senior official from the Ministry, Wang Qiang stated that these initiatives had provided strong support for the development of autonomous technology in China and that there had been collaborations with relevant authorities like the Ministry of Transport to improve management and support for the autonomous driving industry. Wang informed that the Ministry would continue working to promote and upgrade the Chinese autonomous driving industry. The press conference also informed about measures to streamline services for issuing licenses, handling traffic accidents, and other aspects of traffic management (“16,000 test licenses for autonomous vehicles issued in China,” CGTN, 28 August 2024)
Venture funding for Chinese startups declines, reports Crunchbase News
On 27 August, Crunchbase News reported that venture funding for Chinese startups had dried up. Data from Crunchbase showed that Chinese startups received only 7.4 billion USD in the last quarter, a 42 per cent decline from the first quarter of the year, and the lowest since the third quarter of 2014. China is on track to witness its weakest year of venture funding since 2014, with the decline in early-stage funding another factor. Early-stage funding in the second quarter of 2024 was 2.5 billion USD, the lowest since 2014. The fall in funding for early stage has also resulted in a small decline in the figures for large growth rounds, with a 13 per cent decline in funding for the second quarter of 2024 as compared to the first one. Tensions between the US and China, alongside Chinese regulatory policies on venture and Initial Public Offers (IPO) are believed to have played a role in the decline. The decline in the Chinese venture market has also led to fears that the same could happen to other countries in the Asia-Pacific market. Additionally, the Artificial Intelligence (AI) market has seen a drop as well, not achieving the heights it was expected to. A concern for venture capitalists and founders is whether the current decline is an aberration, or the start of a wider decline. (Chris Metinko, “ Venture Funding To China-Based Startups Dries Up,” Crunchbase News, 27 August 2024)
SCIENCE & TECHNOLOGY
China’s BYD to use Huawei advanced autonomous driving system, reports Reuters
On 27 August, Reuters reported that Chinese electric vehicle (EV) manufacturing company BYD had signed an agreement with Chinese tech conglomerate Huawei to use Huawei’s advanced autonomous driving system. Huawei stated that the Bao 8 SUV under the Fangchengbao lineup of BYD would be the first model to use the Qiankun intelligent driving system of Huawei. BYD has been dominant in the EV market due to its vertical integration strategy, wherein it manufactures the key components such as batteries on its own and has put substantial investments into developing its own advanced-driver-assistance-system (ADAS). The usage of Huawei technology reflects the company’s attempts to compete with rivals in providing smart driving features. Additionally, the Huawei partnership is also a part of BYD’s attempts to move upscale, and increase the sales of its premium brands of Denza, Fangchengbao, and Yangwang for greater profitability. Meanwhile, Huawei is growing as a key supplier of ADAS in the EV market, with Volkswagen’s Audi also scheduled to use Huawei’s ADAS. (“China’s BYD to use Huawei’s advanced autonomous driving system in off-road EVs,” Reuters, 27 August 2024)
EXTERNAL
US and Indian internet firms hacked by Chinese hackers, reports Business Standard
On 27 August, Business Standard reported that a state-sponsored Chinese hacking campaign called Volt Typhoon was hacking US and Indian internet companies. The revelations were made via a blog post by Black Lotus Labs, a unit of telecommunications company Lumen Technologies Inc. As per the assessment by Black Lotus Labs, Volt Typhoon exploited a bug in a server product of US startup Versa Networks to breach four US firms and one Indian firm. The bug has a “high” severity rating, according to the National Vulnerability Agency. Lumen stated that it had shared the findings with Versa, which has offered a patch and other mitigations to deal with the bug. Chief Marketing Officer at Versa, Dan Maier informed that the company had taken measures of its own to make its system “secure by default” to reduce the risk to its customers, even without following company guidelines on usage. The new hack is expected to add to concerns over the vulnerability of US infrastructure to cyberattacks. The US government had accused Volt Typhoon of infiltrating critical networks like the communications sector and power grids earlier this year. (“Chinese hackers breach Indian, US internet firms via startup, says Lumen, Business Standard, 27 August 2024)
CHINA & TAIWAN
Taiwan’s Foreign Ministry criticizes China’s push to ban Taiwan from Pacific forum, reports Focus Taiwan
On 27 August, Focus Taiwan reported that the Ministry of Foreign Affairs of Taiwan (MOFA) had expressed its regret over a move to ban it from the Pacific Islands Forum (PIF). Reports in The Australian newspaper claimed that the Government of the Solomon Islands planned to introduce a motion to strip Taiwan of its “development partner” status, at the 2024 PIF summit. The newspaper also claimed that the Government of the People’s Republic of China had instructed the Solomon Islands government to prevent Taiwan’s attendance at the 2025 PIF summit, to be hosted by the Solomon Islands. In response to the reports, the Ministry stated that Taiwan’s participation in the PIF had always been conducted under the principles of diversity and inclusion; and that Taiwan had contributed financial aid and scholarship programmes to the PIF members, since its participation in the organization. The Ministry also stated it was “regrettable” that “a certain country, based on selfishness” was trying to foster disunity in the Pacific region. However, it thanked Taiwan’s remaining diplomatic allies and like-minded non-member countries for their support. A Ministry source stated that any possible motion challenging Taiwan’s participation in the PIF is unlikely to pass, since decisions are made by verbal consensus rather than vote in the PIF. (“China push to ban Taiwan from Pacific Islands Forum ‘regrettable’: MOFA,” Focus Taiwan, 27 August 2024)
CHINA & EAST ASIA
China claims it had no intention of breaching Japan’s airspace, reports SCMP
On 27 August, SCMP reported that the Ministry of Foreign Affairs of the People’s Republic of China had claimed that it had no intention of breaching the airspace of any country. Spokesperson for the Foreign Affairs Ministry, Lin Jian said, “I’d like to stress that China has no intention of breaching any country’s airspace.” Lin also informed that China and Japan had “maintained communication through existing working channels.” The statements come after the Government of Japan accused China of breaching its airspace, with Japan Self-Defence Forces stating that a Chinese Y-9 reconnaissance plane had been detected circling over the Danjo Islands off the coast of the Japanese island of Kyushu. The Ministry of Foreign Affairs of Japan had summoned the acting Chinese Charge d’Affaires, Shi Yong in protest over the incident; and the Chief Cabinet Secretary of Japan, Yoshimasa Hayashi had stated the incident was a “serious violation” of Japanese sovereignty. ( Cyril Ip, China says it has ‘no intention’ of breaching any nation’s airspace after Japan claim, South China Morning Post, 27 August 2024)
CHINA & SOUTH ASIA
PLA’s General Li Qiaoming awarded with Pakistan’s Nishan-e-Imtiaz honour, reports The Indian Express
On 27 August, The Indian Express reported that Pakistan honoured Chinese commander of the Ground Forces of the People's Liberation Army, General Li Qiaoming with Nishan-e-Imtiaz, one of the highest honours by Pakistan. A state-run news agency Associated Press of Pakistan (APP) said: “The citation at the ceremony highlighted General Li Qiaoming's four-decade career, noting his significant contributions to the Chinese military. His intellect, administrative skills, and dedication have earned him a reputation as a courageous and capable officer, crucial in promoting peace and stability in China and beyond.” Qiaoming and Prime Minister Sharif discussed Pakistan-China friendship, particularly on the bilateral, defence and strategic partnership. Additionally, General Li stated that China, as an iron brother, strategic partner and reliable friend with Pakistan and expressed China's desire for bilateral friendship with new levels of cooperation and collaboration, by recognising the role of Pakistan's armed forces in promoting regional peace and stability and combating terrorism. (“Pakistan’s Nishan-e-Imtiaz (Military) awarded to top Chinese general,” The Indian Express, 28 August 2024)
CHINA & AFRICA
Green Partnership between China-Africa energizes sustainable future, says an editorial in CGTN
On 28 August, an editorial in CGTN reported that the China-Africa partnership in renewable energy is propelling towards sustainable development. The initiative exemplified how South Collaborations can address global challenges. China, with its extensive experience and resources, appears as an ideal partner in Africa's green transition initiative, by providing clean, reliable, and affordable energy to regions that are needed most. The editorial noted that Africa is the most vulnerable to climate change and faces the need to transition to a low-carbon economy. Despite these challenges, Africa has the potential with a young and dynamic population united with a policy shift towards green energy and sustainable growth, positions the continent for significant progress. The vice-chair of the United Nations Intergovernmental Panel on Climate Change (IPCC) Youba Sokona said: “China's experience in renewable energy development is very worthy of reference for African countries. In this field, African countries and China have huge potential for cooperation.” Additionally, the framework of the Forum on China-Africa Cooperation (FOCAC) and the Belt and Road Initiative, have developed partnerships and collaborated with African governments to develop renewable energy projects, ranging from hydro-wind power to solar and geothermal energy. (“China-Africa green partnership energizes shared sustainable future,” CGTN, 28 August 2024)
CHINA & THE MIDDLE EAST
Chinese aircraft to debut in Egypt next month, reports SCMP
On 27 August, the SCMP reported on China’s Y-20 transport aircraft debut air show alongside J-10 jets in Egypt next month as a Military expansion by Beijing, influencing the Middle East and Africa. The Y-20 will fly nearly 6,200 miles and perform at the first Egypt International Air Show from 3-5 September, the same aircraft was delivered to Tanzania in a joint counterterrorism exercise. A Chinese military specialist Wang Mingzhi said: “the long-haul deployment reflected the Chinese air force’s long-range mobility delivery capabilities and combat-oriented training level, the transfer range across many time zones, with rapid changes in temperature and security difficulties. It will test the pilots’ flight ability and their physical endurance, and showcase the People’s Liberation Army Air Force’s ability in long-range manoeuvres, delivery and combat-oriented training.” According to Xinhua, Y-20 pilot Yuan Bo stated that the crew had streamlined and optimised its cargo during the mission requirements, and had designed specific flying moves for the mission. Additionally, during the Tanzanian drill, two Y-20s were spotted deployed in Russia’s Far East. According to the Stockholm International Peace Research Institute, China was the largest arms supplier for Africa in 2019-23, with a 19 per cent share of the arms imports. (“China’s Y-20 transport plane heads to Egypt on Middle East military influence mission,” South China Morning Post, 28 August 2024)
CHINA & THE AMERICAS
China still a priority for the outgoing Biden administration, says an editorial in BBC
On 28 August, an editorial on BBC titled “Top-level meeting shows China - and Xi - still a priority for Biden,” focused on the US national security adviser Jake Sullivan visiting China. This week's talks between Sullivan and Minister of Foreign Affairs Wang Yi signal that China is still a priority for the Biden administration, both have already acknowledged the need to find common ground even after disagreements between their nations, cited the editorial. In addition, the US and Chinese diplomats acknowledged that talks between both nations are never easy. China is watching closely what the next US president might have in store for China. But Donald Trump has made it clear he will raise tariffs further on Chinese goods, unlike while Mr Biden's administration also reversed tariffs, including the EVs. Additionally, Biden strengthened alliances across Asia to combat China’s rising influence. The White House stated that Sullivan's visit is not a voice for the next president. The meeting is on another mode as two independent economic rivals battle mutual distrust probing each other’s real intentions. Sullivan said: “he and Mr Wang had increasingly gotten to the point of setting aside the talking points and having strategic conversations, and described the character of those conversations as direct, including one on the war in Ukraine. Both of us left feeling that we didn’t agree or see eye-to-eye on everything but that there was a lot of work to carry forward.” (“Top-level meeting shows China - and Xi - still a priority for Biden,” BBC, 28 August 2024)
China Reader Daily Wire | 27 August 2024, Tuesday | Vol.1 No. 158
CHINA & THE AMERICAS
Canada to impose 100 per cent tariff on Chinese electric vehicles, reports BBC News
On 27 August, BBC News reported that the Government of Canada would impose a 100 per cent tariff on Chinese-made Electric Vehicle (EV) imports. The tariffs imposition is over allegations that Chinese EVs benefit from subsidies provided by the Government of the People’s Republic of China. The Canadian tariffs also include EVs manufactured by automotive corporation Tesla; which requested the European Union (EU) for a reduction on tariffs on Chinese-made Teslas. Additionally, the Canadian Government plans to impose a 25 per cent duty on Chinese imports of steel and aluminium. The tariffs on Chinese EVs will be implemented from 1 October, while the duties on steel and aluminium will be implemented from 15 October. The Embassy of the People’s Republic of China in Canada responded to the tariffs by a statement that China’s EV industry had grown due to technological innovation and using its comparative advantages to gain competitiveness, rather than government subsidies. On the other hand, the Prime Minister of Canada, Justin Trudeau accused China of trying to give itself an unfair advantage in the global economy. Canada’s tariffs follow a similar tariff of 100 per cent on Chinese EVs being imposed by the United States, with the EU planning to impose tariffs as well. (Joao Da Silva, “ Canada hits China-made electric cars with 100% tariff,” BBC News, 27 August 2024)
CHINA & THE PACIFIC
Chinese spending on military exercises in the Pacific is estimated to be USD 15 billion, reports Reuters
On 27 August, Reuters reported that the Government of the People’s Republic of China had spent about 15 billion USD on military exercises in the Western Pacific region in 2023. This amounts to 7 per cent of the total defence budget of China. The internal research and the compilation of reports on China’s military activity were carried out by the Taiwanese Armed Forces and the Ministry of National Defence of Taiwan; to help the Government of Taiwan understand how China allocates military resources and the gap between China’s intentions and actual capabilities, according to Taiwanese government officials. As per the report, the total cost in 2023 of China’s naval and air missions in the Western Pacific and surrounding regions like the South China Sea and the Taiwan Strait amounted to 110 billion CNY or 15.3 billion USD. Calculations by Reuters estimated that the 110 billion CNY figure amounts to about 85 per cent of Taiwan’s defence budget in 2023. The Taiwanese government officials also stated that comparing the costs of the exercises to China’s economy helps assess the risk to both Taiwan and China. The publication of the report comes amidst escalating tensions in the region, with China increasing its military drills and incursions near Taiwan. ( Yimou Lee, “ Exclusive: China spent $15.3 billion on Pacific exercises in 2023,” Reuters, 27 August 2024)
CHINA & EAST ASIA
Japan accuses China of violating airspace after reconnaissance aircraft were detected, reports Al Jazeera
On 27 August, Al Jazeera reported that the Government of Japan had accused China of threatening its security through incursions into Japanese airspace. The accusations came after the Japan Self-Defence Forces stated that a Chinese Y-9 reconnaissance plane had been detected circling over the Danjo Islands off the coast of the Japanese island of Kyushu. The Ministry of Foreign Affairs of Japan informed that in response to the violations, it had summoned the acting Chinese Charge d’Affaires, Shi Yong; to protest over the incursion and demand China take preventive steps to avoid such incidents. At a news conference, the Chief Cabinet Secretary of Japan Yoshimasa Hayashi stated the incursion was “not only a serious violation of Japan’s sovereignty, but it also threatens our security.” Hayashi also informed that the Japanese government would continue to monitor Chinese military activities, and was prepared for any airspace breaches. There was no response from the Embassy of the People’s Republic of China in Japan to the incursion; although growing Chinese activity around Japanese airspace is a matter of concern for the Japanese government. (“Japan says China airspace incursion ‘serious violation of our sovereignty,” Al Jazeera, 27 August 2024)
EXTERNAL
China to require over 8000 new planes in next 20 years, reports Reuters
On 26 August, Reuters reported that the US plane manufacturing corporation Boeing had stated it expected China to need 8,830 new planes by 2043. This comes amidst the ongoing expansion and modernization of the Chinese aviation industry, to meet a growing demand for cargo and air travel. Last year, Boeing had forecast that 8,560 new commercial planes would be needed by Chinese airlines by 2042. (“Boeing says China will need 8,830 new planes over next 20 years,” Reuters, 26 August 2024)
CHINA & TAIWAN
Taiwanese government cancels Chinese rapper’s concert over insinuating Taiwan as part of China, reports AP News
On 27 August, AP News reported that the Government of Taiwan had cancelled a scheduled concert in the country by a Chinese rapper over his usage of an ‘insulting term.’ According to the Mainland Affairs Council under the Taiwanese government, the rapper, Wang Yitai had his planned concert on 14 September in Taipei cancelled for using the term ‘Taipei, China’ in promotional materials. Additionally, Wang was also banned from entering Taiwan. The term was deemed insulting for it describes the Taiwanese capital of Taipei as a Chinese city and supports the aim of the Government of the People’s Republic of China to annex Taiwan. The Chinese Government regularly bans Taiwanese artists, while the Taiwanese government regularly welcomes Chinese artists. However, the Mainland Affairs Council stated that exchanges between Chinese and Taiwanese artists should be based on mutual respect, and any publications belittling Taiwan’s status would not be tolerated. (“Taiwan bans concert by Chinese rapper over insulting ‘Taipei, China’ promotional materials,” AP News, 27 August 2024)
CHINA & SOUTHEAST ASIA
Chinese People’s Liberation Army increases patrols on Myanmar border, reports Al Jazeera
On 26 August, Al Jazeera reported that the Chinese People’s Liberation Army (PLA) was stepping up army and police patrols along its border with Myanmar. In recent months, fighting in the northern state of Shan in Myanmar between the military junta regime and ethnic rebels has increased following the collapse of a truce brokered by the Government of the People’s Republic of China. The escalating conflict has had an impact on China, with artillery shells from Myanmar injuring Chinese residents and damaging Chinese property. The PLA stated that the patrols would focus on border areas such as Rulli town, a key route for people and goods heading to and from Myanmar; and its Southern Theatre would organize army units to test the ability of troops to “quickly move, block and control, and strike together, and maintain security and stability in the border areas.” The increased PLA deployments come after the recent statement by the Chinese Minister of Foreign Affairs Wang Yi that the Chinese government would continue to seek peace and stability in Myanmar. (“China steps up armed patrols on the border as Myanmar conflict deepens,” Al Jazeera, 26 August 2024)
CHINA & AFRICA
BRI provides a platform for Africa’s economic development, an editorial in Global Times
On 27 August, an editorial in Global Times reported that the Belt and Road Initiative (BRI) was powering greater economic development in Africa. According to the article, the joint construction of the BRI between the Government of the People’s Republic of China and African countries has led to faster African integration into the global industrial chain through infrastructure projects by Chinese companies. The upcoming Forum on China-Africa Cooperation (FOCAC) summit scheduled to be held in Beijing from 4 to 6 September, is expected to see China and African nations expand their pragmatic cooperation further. Executive Director and Senior Research Fellow at the Africa-China Centre for Policy and Advisory, Paul Frimpong stated that the BRI projects had led to greater industrial development in Africa, with China building tangible infrastructure like railways and ports in several countries. This sentiment was echoed by the Executive Director of the Southern African Research and Documentation Centre, Munetsi Madakufamba; who gave the example of the integrated steel manufacturing plant set up by Chinese firm Dinson Iron and Steel Company in Zimbabwe, which provides employment and infrastructure. He also stated that China’s projects were keeping the environment in mind, and helping the sustainable development of African countries. Professor from the School of International Relations and Diplomacy at Beijing Foreign Studies University, Song Wei stated that China was training African citizens in human resources development and providing more opportunities in trade. Song also emphasized how China treated African nations with respect and followed a policy of non-interference in internal affairs. (Liu Caiyu, “BRI deeply integrated into African development; more pragmatic cooperation expected in FOCAC,” Global Times, 27 August 2024)
CHINA & EUROPE
China calls for greater support for Ukraine peace plan, reports AP News
On 27 August, AP News reported that the Government of the People’s Republic of China had called for more countries to support its prospective peace plan for Ukraine. Chinese Special Representative for Eurasian Affairs, Li Hui called on the governments of Indonesia, Brazil, and South Africa to support its plan, referring to the countries as representatives of the Global South and “important forces in promoting world peace.” Li also criticized the sending of weapons to Ukraine by Western nations, stating the West was allowing Ukraine to strike Russian territory with its weapons. Earlier this year, the Chinese government and the Government of the Federative Republic of Brazil issued a joint peace plan, with a peace conference with Ukraine and Russia as one of the provisions. The Government of Ukraine indicated support for the peace plan, although the Chinese government did not attend a separate peace summit held earlier this year. Meanwhile, the US and the North Atlantic Treaty Organization (NATO) have accused China of providing Russia with equipment to build weapons being used in the war. ( Huizhong Wu, “China calls for more support for its Ukraine peace plan created with Brazil,” AP News, 27 August 2024)
CHINA & THE AMERICAS
Chinese Foreign Ministry denies overcapacity accusation by the US, reports CGTN
On 26 August, CGTN reported that the Ministry of Foreign Affairs of the People’s Republic of China had stated that actions by the United States Government posed the biggest concern for a new trade war. The Ministry statement was in response to an article in a US media outlet; which stated that China’s growing investments in manufacturing would adversely affect businesses globally by increasing overcapacity and creating a new trade war. Spokesperson for the Chinese Foreign Ministry, Lin Jian responded by stating that China’s creation of a full-fledged industrial manufacturing chain had kept global industrial and supply chains and increased technological progress globally. The spokesperson also stated that China’s continued investments in research and development, and utilization of its comparative advantages were the reason behind the widespread popularity of Chinese products, rather than subsidized dumping or protectionist measures. According to Lin, the US poses the biggest risk of starting a trade war through protectionist measures, giving examples like the US passing the Inflation Reduction Act, imposing tariffs on imports, and preventing the appointment of new judges to the World Trade Organization’s Appellate Body. Lin accused the US of using other countries as a scapegoat; and informed that China would continue to embrace cooperation and drive global growth. (“China pushes back at U.S. ‘overcapacity’ concerns,” CGTN, 26 August 2024)
China Reader Daily Wire | 26 August 2024, Monday | Vol.1 No. 157
CHINA & SOUTH ASIA
Bangladesh Interim government head Muhammad Yunus encourages China to relocate solar plants to Dhaka, reports The Daily Star
On 25 August, The Daily Star reported that the Chief Adviser of Bangladesh Muhammad Yunus had urged China to relocate some of its solar plants to Bangladesh. On the occasion of a meeting with the Ambassador of the People’s Republic of China to Bangladesh Yao Wen, Yunus encouraged Chinese manufacturers to relocate some of their solar panel factories to Bangladesh. Yunus believed that this would help Bangladesh in diversifying its exports and transitioning towards a green economy. Yunus also encouraged greater economic cooperation between China and Bangladesh through technology transfers, greater imports of Bangladeshi goods to China, increased collaboration in disaster management, education and farming, and youth-to-youth collaboration. Meanwhile, Yao stated that China was ready to work with the Yunus government, and was committed to finding a solution for the Rohingya crisis in neighbouring Myanmar. Yao also invited Yunus for a visit to China on behalf of the Chinese government and provided a donation from the Chinese Embassy for flood victims in Bangladesh. (“ Yunus urges China to relocate solar panel plants to Bangladesh,” The Daily Star, 25 August 2024)
CHINA & SOUTHEAST ASIA
Chinese People’s Liberation Army to conduct patrols near Myanmar border, reports Reuters
On 26 August, Reuters reported that the Chinese People’s Liberation Army (PLA) would organize army units and joint air-ground police patrols near the China-Myanmar border. Fighting between the Myanmar military junta regime and rebel forces in the northern states of Kachin and Shan in Myanmar has escalated recently; with artillery shells damaging property and injuring citizens in China as well as threatening Chinese infrastructure projects. The PLA stated that the conflict was negatively affecting stability and social order on the China-Myanmar border; and informed that its Southern Theatre would organize army units to test the ability of troops to “quickly move, block and control, and strike together, and maintain security and stability in the border areas.” The PLA also stated that one of its units would organize live-fire exercises on the Chinese side of the Myanmar border. The military plans to conduct patrols and exercises in border areas of China such as Rulli city and Zhenkang country. (“ China’s military to conduct armed patrols, live-fire exercises near Myanmar border,” Reuters, 26 August 2024)
CHINA & THE AMERICAS
US blacklists 42 Chinese firms over the support for Russian military, reports Reuters
On 23 August, Reuters reported that the United States Government had added 105 firms from Russia and China to a trade restrictions list over alleged support for the Russian Armed Forces. 42 Chinese and 63 Russian firms were added to the list, alongside 18 from other nations, for reasons such as producing drones for Russia to use in Ukraine and sending US electronics to Russian military-related entities. Owing to the restrictions, suppliers from the US and overseas now require a licence to ship to the targeted companies. The new restrictions show that the US government is trying to keep pressure on companies accused of supporting the Russian war in Ukraine. (“US targets 105 Russian and Chinese firms for aiding Russian military, Reuters, 23 August 2024)
INTERNAL
China reforms marital laws to assist marriages and delay divorces, reports SCMP
On 25 August, SCMP reported that the Government of the People’s Republic of China was planning new regulations making marriage easier and divorce harder. These regulations come as the country combats a demographic crisis; with the birth rate having reached the lowest ever of 9.02 million births in 2023 as per the National Bureau of Statistics of China. At the same time, 3.43 million individuals registered for marriage in the first six months of 2024, a 12 per cent decline from a year ago. The Ministry of Civil Affairs of the People’s Republic of China released a draft amendment to the Regulation on Marriage Registration, which allows couples to be married anywhere in the country only using their ID cards; in contrast to the earlier system of household registration or hukou being required and marriages being allowed only in the hukou residence. Additionally, the amendment states that divorce applications made at registry offices will have a 30-day cooling-off period, wherein either party can withdraw their application. A spokesperson for the Civil Affairs Ministry stated the waiting period would not affect the right to divorce, but many fear that the 30-day period will affect personal freedom and extend unhappy marriages. The high cost of living, lack of jobs, pressures of work, and growing independence of women have been cited as reasons for the declining marriage rate in China. Divorce and family lawyer Zhong When believes that the slow rate of divorce applications has also convinced many people that marriage is a trap.( Phoebe Zhang, “China wants to make it easier to get married, and harder to divorce, South China Morning Post, 25 August 2024)
CHINA & SOUTH ASIA
Nepal says China not providing information on glacial lakes, reports Climate Home News
On 22 August, Climate Home News reported that a senior official from the Government of Nepal had accused the Government of the People’s Republic of China of not providing essential information about its glacial lakes. Director-General of the Department of Hydrology and Meteorology of Nepal, Jagdishwor Karmacharya stated that the Chinese government had not provided information about these lakes, despite multiple requests from Nepal; and promises to provide information by the Chinese government. According to Karmacharya, a lake burst in China could cause floods and spark disaster in Nepal; making it essential for the Nepalese government to have the information required to prepare. The escalating melting of glaciers which form lakes, has increased the chance that lake water bursts through the glacier ice leading to floods. A similar phenomenon occurred with the Para Chhumo lakes in Nepal last week, with the lake burst causing floods that severely impacted a neighbouring village. The threat of a huge lake burst remains paramount, with Nepalese tourism entrepreneur Ang Tshiring Sherpa stating that Himalayan tourism and local mountain communities are suffering the most. ( Mukesh Pokhrel, “Nepal says China withholds “essential” info on bursting Himalayan glacial lakes,” Climate Home News, 22 August 2024)
CHINA & SOUTHEAST ASIA
Philippines demands end to dangerous actions by China, reports Al Jazeera
On 24 August, Al Jazeera reported that the Philippines South China Sea Task Force had demanded the Government of the People’s Republic of China to stop all its provocative actions. The task force stated that aircraft belonging to the Philippines’ Bureau of Fisheries and Aquatic Resources (BFAR) had witnessed a Chinese jet fighter deploying flares at a “dangerously close distance” while conducting patrols over the South China Sea. The BFAR aircraft also “faced harassment” from a jet fighter while on a surveillance flight near the Scarborough Shoal Island. The task force demanded China to “cease all provocative and dangerous actions” and stated that regional peace and security were at risk over the Chinese actions. On the other hand, the Ministry of Foreign Affairs of the People’s Republic of China made no comment on the Scarborough Shoal event, stating it had conducted “countermeasures” against Philippines military aircraft which flew into its airspace over the island base of Subi Reef. The present military confrontations come amidst high tensions between China and the Philippines in recent months over the South China Sea dispute. (“Philippines demands China halt ‘dangerous actions’ in South China Sea,” Al Jazeera, 24 August 2024)
Philippines vessel restricted by China coast guard, reports Global Times
On 25 August, Global Times reported that the China Coast Guard (CCG) had undertaken restrictive measures against a Philippines vessel that had trespassed into waters off the island of Xianbin Jiao or Sabina Shoal. Spokesperson for the CCG Gan Yu stated that the Philippine Ship 3002 had illegally trespassed into waters off Xianbin Jiao, and intentionally rammed into a CCG ship ignoring Chinese warnings. Deputy Director of the Institute of Maritime Law and Policy at the National Institute for South China Sea Studies in China, Ding Duo stated that the Philippines was trying to provide daily supplies to its coast guard vessel MRRV-9701 which has been stranded in the Xianbin Jiao lagoon since April. According to Ding, the restrictive measures of the CCG show that China possesses the means and capabilities to cut off supplies to MRRV-9701 and restrict actions by the Philippines in the lagoon. Ding also encouraged the Government of the Philippines to work with China towards avoiding conflicts, rather than escalating them through provocative incidents. (Liu Xuanzun, “CCG restricts Philippine ship at Xianbin Jiao,” Global Times, 25 August 2024)
CHINA & EUROPE
European farmers suffer due to EU-China trade war, an editorial in SCMP
On 26 August, an editorial in SCMP noted that dairy farmers in Europe feared being collateral damage amidst escalating trade war between China and the European Union (EU). This comes after EU’s proposed 36.3 per cent subsidy duties on Chinese-made electric vehicles (EVs), the Chinese government in retaliation announced that it would investigate subsidies for dairy product exports from the EU. Denis Drennan, President of the Irish Creamery Milk Suppliers Association (ICMSA) stated that farmers would be collateral damage in the trade war, with the European Commissioner for Agriculture Janusz Wojciechowski also having requested China to not bring farmers into the row over EVs. Officials at the European Commission believe that China’s plans to investigate dairy subsidies alongside a proposed Chinese duty on auto imports from the EU are intended to influence an EU members vote scheduled for October on whether the EV tariffs should be adopted for five years. A majority of the 15 EU members need to vote against the tariff adoption to be blocked, and China is targeting eight countries with national-level dairy subsidy programmes in its probe. However, the European Commission is confident members will vote in favour of the tariffs, and China’s pressure will not work. On the other hand, farmers like Drennan are encouraging the tariffs to be blocked, fearing adverse consequences for the farming industry. ( Finbarr Bermingham, “European farmers caught in crossfire of EU-China trade war as Beijing targets dairy,” South China Morning Post, 26 August 2024)
CHINA & THE AMERICAS
Chinese property developer seeks debt restructuring in US, reports SCMP
On 25 August, SCMP reported that Chinese property developer Yuzhou Group Holdings had filed for Chapter 15 bankruptcy in New York. Yuzhou has an ongoing debt of 2.9 billion USD with interest and is undergoing restructuring in Hong Kong and the Cayman Islands. A Hong Kong court advised the Yuzhou company board to seek recognition by a US court for its offshore debt restructuring, in order to avoid litigation. China introduced leverage caps on highly indebted developers in 2020, aiming to curb systemic risk. However, the government measures have led to several developers defaulting, leading to an announcement last week that Chinese housing officials would seek to expand sales of completed homes rather than half-finished ones. The Chapter 15 proceedings allow the US courts to recognize the effectiveness of restructuring in foreign areas, and Yuzhou issued a statement that the offshore debt restructuring would allow it to rectify its balance sheet. Yuzhou also believed that restricting would allow it to restore the capital structure to levels required for the conduct of sustainable business. (“Chinese builder Yuzhou seeks debt restructuring recognition in US,” South China Morning Post, 25 August 2024)
China Reader Daily Wire | 24 August 2024, Saturday | Vol.1 No. 156
CHINA & EUROPE
China and Belarus promise “weather comprehensive strategic partnership”, reports CGTN
On 24 August, CGTN reported that the Premier of China, Li Qiang indicated willingness to work with the Government of the Republic of Belarus to maintain good bilateral relations. Li made the remarks during a meeting with the Prime Minister of Belarus, Roman Golovchenko; and stated that the Government of the People’s Republic of China was willing to work towards maintaining the China-Belarus all-weather comprehensive strategic partnership. Li also informed that China was ready to strengthen communication and cooperation with Belarus through forums like the United Nations (UN) and the Shanghai Cooperation Organization (SCO), align developmental strategies together, and promote cooperation on the Belt and Road Initiative. He went on to state that China was willing to improve ties in fields such as green development, digital economy, trade, and investment, increase people-to-people exchanges in domains like education, and work towards building a truly multilateral global community. After the meeting, Li and Golovchenko issued a joint communique promising greater cooperation and investments in the agricultural sector, as well as more access to the Chinese market for agricultural and food products. Additionally, the two leaders signed bilateral cooperation documents on fields like green development and Belt and Road cooperation. (“China, Belarus vow to further boost ties as true friends, good partners,” CGTN, 24 August 2024)
CHINA & EAST ASIA
South Korean chip giants see hike in Chinese demand, reports SCMP
On 23 August, SCMP reported that Samsung Electronics and SK Hynix reported significant increases in chip sales to China during the first half of 2024. Samsung’s revenue from China rose 82 per cent year-on-year to USD 24.1 billion, while SK Hynix saw a 122 per cent jump to 8.6 trillion won. This surge comes amid speculation of potential US restrictions on China’s access to advanced technologies. Analysts suggest Chinese importers are stockpiling chips, particularly those used for AI, in anticipation of new export controls. TrendForce noted that buying activity intensified in the second quarter. This boosted Korean suppliers’ DRAM sales. High-bandwidth memory (HBM) chips, crucial for AI applications, have become particularly sought after. The sales growth also reflects a recovery in DRAM and NAND prices following production cuts last year. Samsung and SK Hynix dominate the global DRAM market, with 43 per cent and 35 per cent share respectively. SK Hynix controls over 50 per cent of the HBM market, positioning both companies advantageously in the current demand landscape. (Che Pan, “China spends big on Samsung, SK Hynix chips in first half amid US sanctions fears,” South China Morning Post, 23 August 2024)
CHINA & MIDDLE EAST
Oman strengthens economic ties with China through BRI, says an editorial in CGTN
On 23 August, an editorial in CGTN reported that Oman is actively reinforcing its economic partnership with China, particularly through the Belt and Road Initiative (BRI). The governor of Dhofar Sayyid Marwan bin Turki al Said emphasised Oman’s historical role in the Silk Road and its current efforts to revive these trade routes. The collaboration aligns with Oman Vision 2040, aiming to diversify the economy beyond oil. The Dhofar governorate is developing the Salalah Free Zone and Port to attract foreign investment. Ahmed Mohammed Qattan highlighted the region’s competitive advantages, including tax exemptions and strategic location. Bilateral trade between Oman and China grew by 8 per cent in early 2024, exceeding USD 15 billion. Oman sees its geographical position as a key asset in becoming a crucial hub for the BRI. With China as its main trade partner, Oman is leveraging this relationship to enhance its logistics and trade sectors and contribute to its economic diversification goals. (“Oman eyes closer economic ties with China through Belt and Road cooperation,” CGTN, 23 August 2024)
INTERNAL
Chinese President Xi Jinping outline plan for western region development
On 23 August, Chinese President Xi Jinping outlined a comprehensive strategy for the western region’s development. The meeting emphasised a balanced approach, focusing on environmental conservation, large-scale opening up, and high-quality development. The plan aims to create a new pattern of growth that enhances regional strength and sustainability. The key aspects include deepening reforms, boosting technological innovation, and upgrading traditional industries while developing local specialities. Environmental conservation along with pollution control and green development are a priority to this. The strategy also calls for increased economic openness and the development of clean energy bases. The plan addresses urbanisation, poverty alleviation, and ethnic unity. It stresses the importance of maintaining achievements in poverty reduction and preventing large-scale relapse into poverty in rural areas. The meeting also highlighted the need to forge a strong sense of community for the Chinese nation, ensuring stability in border areas. (“Xi Jinping chairs CPC leadership meeting on boosting development of China's western region,” CGTN, 23 August 2024)
ENERGY & ENVIRONMENT
Yangtze river’s ecological recovery, reports an editorial in SCMP
On 24 August, an editorial in the SCMP reported that China’s Yangtze River, a crucial aquatic ecosystem, is displaying signs of recovery following significant conservation efforts. A recent government report highlights improvements in biodiversity and water quality. It is largely attributed to a 10-year fishing ban implemented in 2020. The river basin saw an increase in native fish species and protected wildlife in 2023 and aquatic resource density rose by 16.7 per cent in the main channel. However, the Chinese paddlefish and Yangtze sturgeon have lost their ability to breed naturally, and some river sections struggle with poor water connectivity and shoreline hardening. The Yangtze’s aquatic biological integrity index remains “poor” though improved from its previous “no fish” status. President Xi Jinping’s 2016 call for Yangtze protection led to stringent measures, including the Yangtze River Protection Law. Despite progress, ecological departments face criticism for not grasping the importance of restoration efforts. The Central Supervision Office reported ongoing damage from pollution and illegal activities. This underscores the long road ahead in preserving this vital waterway’s ecosystem. (Dannie Peng, “Biodiversity of China’s Yangtze River improves, but endangered species still under threat,” South China Morning Post, 24 August 2024)
CHINA & SOUTH ASIA
Pakistan’s new Gwadar airport opening delayed owing to security concerns, reports Nikkie Asia
On 23 August, Nikkei Asia reported that Pakistan postponed the opening of the USD 246 million New Gwadar International Airport (NGIA), funded by China, due to security concerns following mass protests in the region. The airport, part of the USD 50 billion China-Pakistan Economic Corridor (CPEC), was set to open on 14 August but faced delays amidst doubts about its commercial viability. Despite being Pakistan’s largest airport by size, capable of handling large aircraft like the Airbus A380, experts question its potential for success. An airline economics expert Afsar Malik noted: “The inauguration of NGIA is symbolic in nature because it is not commercially viable for any airline in the short term.” The project faces challenges including limited demand, security threats, and local unrest in Balochistan province. Some fear it may become another “world's emptiest international airport” like Sri Lanka’s Mattala Rajapaksa International. Resident Mariyam Suleman observed: “The airport is more to accommodate the government officials, diplomats and international delegations rather than the local population.” (Adnan Aamir, “Pakistan delays China-funded airport opening over security fears,” Nikkei Asia, 23 August 2024)
CHINA & AFRICA
China’s military donations to Africa are mutually beneficial, says an editorial in SCMP
On 24 August, SCMP reported that China has recently donated military equipment, including howitzers, to Benin’s Armed Forces, continuing its pattern of military cooperation with African nations. This gesture, aimed at combating terrorism, follows a similar donation of drones last year. Brigadier General Fructueux Gbaguidi called it “a strong symbol of the friendship” between the two countries. China’s strategy extends beyond Benin. They have provided military donations to numerous African nations including Kenya, Zimbabwe, Nigeria, and Ghana. Peace Research Institute Oslo’s Dr Ilaria Carrozza explains that China views these donations as a way to “foster mutually beneficial relations” and promote long-term economic and political exchanges. From 2000 to 2022, China provided USD 3 billion in military loans to eight African countries. George Washington University’s Professor David Shinn noted that while these donations help China build relationships, they may have a limited impact on terrorism. He said: “Only ending the root causes of terrorism will rein it in – not the provision of artillery howitzers.” (Jevans Nyabiage, “China donates military equipment to Benin in latest bid to build ties in Africa,” South China Morning Post, 24 August 2024)
Chinese President and UK Prime Minister held telephonic conversation on improving ties, reports Global Times
On 23 August, Global Times reported that the President of China, Xi Jinping, and the Prime Minister of the United Kingdom (UK), Keir Starmer had held a phone call over the potential for better relations between the two nations. During the call, Xi told Starmer that amidst a volatile international situation; China and the UK must maintain a stable and mutually beneficial relationship with strong dialogue and cooperation, taking note of their role as permanent members of the United Nations Security Council (UNSC) and major global economies. The Chinese President emphasized upon his country’s willingness to engage in equal dialogue with the UK and increase cooperation and mutual trust between the two nations. Xi also expressed his hope that the UK would view China in an objective and rational way. Professor at the Academy of Regional and Global Governance with Beijing Foreign Studies University, Cui Hongjian stated that the phone call initiated by the UK government showed its desire to improve relations with the UK. Relations between the two nations have been tense, and Cui believed that better ties with China was a way for Starmer’s government to distance itself from the previous Conservative government of the UK which had taken a more antagonistic stance towards China. (Liu Xin, “Xi speaks to Starmer on strengthening exchanges,” Global Times, 23 August 2024)
CHINA & THE AMERICAS
US National Security Advisor to visit China and discuss China’s support Iran and Russia, reports Al Jazeera
On 23 August, Al Jazeera reported that the National Security Advisor of the United States, Jake Sullivan would be making a visit to China. The White House announced that Sullivan would visit Beijing from 27 to 29 August, and would meet the Minister of Foreign Affairs of the People’s Republic of China, Wang Yi. A senior official from the US Government informed that Sullivan would raise American concerns over China’s support for Russia and Iran. According to the official, Sullivan’s visit did not mean the US government was changing its stance towards China, and they still believed US-China relations to be “an intensely competitive relationship.” The official also emphasized that the US government would try to prevent a conflict with China from erupting, but would take steps to protect its national security. Sullivan’s visit is the first by a US National Security Advisor to China since 2016 and comes in the backdrop of escalating tensions between the two nations over economic and security matters. (“Top Biden advisor Jake Sullivan to visit China next week,” Al Jazeera, 23 August 2024)
China Reader Daily Wire | 23 August 2024, Friday | Vol.1 No. 155
CHINA & SOUTH ASIA
Nepal to China: Make loan into grant, reports The Kathmandu Post
On 23 August, The Kathmandu Post reported that the Government of Nepal had requested the Government of China to convert the 1,378.74 CNY loan into a grant. The Deputy Prime Minister and Minister of Finance of Nepal, Bishnu Prasad Paudel made the request while meeting the Vice-Chairman of the China International Development Cooperation Agency (CIDCA), Yang Weiqun, according to Ministry of Finance Nepal spokesperson Mahesh Bhattarai. The loan granted by The Export-Import Bank of China had been used by the Nepal government to fund the construction of Pokhara International Airport. However, the airport has failed to generate the income required to sustain enough and service the loan. Due to this scenario, several Nepali governments have requested China to convert the loan into a grant. The former Prime Minister of Nepal, Pushpa Kamal Dahal had earlier stated that diplomatic efforts were underway to turn the loan into a grant. However, this is yet to occur. (“ Nepal asks China to turn Pokhara airport loan into grant,” The Kathmandu Post, 23 August 2024)
CHINA & THE PACIFIC
Kiribati MP supports diplomatic switch from Taiwan to China, reports RNZ
On 23 August, RNZ reported on the incumbent government's decision to re-establish bilateral relations with China. The newly elected MP Kwan Sing stated that re-establishing bilateral relations with China at Taiwan's expense so far has proved to be beneficial. Kwan Sing, who contested for a seat in Teinainano Urban Council (South Tarawa), was one of three successful candidates in the largest constituency, she stated that there was a lot of uncertainty and concern in the community when Taneti Mamau's government cut ties with Taipei in favour of Beijing, but she said: “they seem to have done so with the best interests of the country at heart, and so here we are, four years later, and I think the friendship between China and Kiribati has deepened, and it has reignited more interest in the Pacific region, which is also seems to be a positive outcome.” Additionally, the MP stated the Kiribati people have now accepted the switch and discussing how best to leverage support from China and other donor partners. She said: “In Kiribati, like most countries, we are just concerned about the things that we need and the support that we need. I find it interesting that China does come under the radar as much as it does, because we have got in country presence from a few countries, and China being one of them, having been a decision of the previous government to decide that this was an important relationship to explore. We certainly did not understand the geopolitical implications of it, but we did understand that the government of the day were doing what they thought had the best interest of the country at heart. I think [the government] protected the interests of the country while reaching out for the support that the country needs.” (“Diplomatic switch from Taiwan to China 'a positive outcome’, first-time Kiribati MP says,” RNZ, 23 August 2024)
CHINA & TAIWAN
Eight Taiwanese military officers convicted of spying for China, reports Taipei Times
On 23 August, Taipei Times reported that eight current and retired officers of the Taiwanese Armed Forces were convicted, on charges of spying for China. The defendants, who received sentences ranging from 18 months to 13 years from the Taiwan High Court; were led by two Taiwanese businessmen working in Taiwan, Chen Yu-hsin and Hsieh Ping-cheng. The Taiwan High Prosecutors’ Office which conducted the investigation discovered that Chen and Hsieh had been recruited by Chinese intelligence with the objective of forming a spy network in Taiwan among officers. The two businessmen recruited several officers and received financial rewards from Chinese intelligence for handing over classified materials. Chinese intelligence also offered a military helicopter pilot Hsieh Meng-shu 15 million USD to defect, an attempt prevented by Taiwanese authorities. The Ministry of National Defence of Taiwan urged Taiwanese national security and defence units to improve their national security education and training, in order to prevent Chinese espionage. (Yang Kuo-wen, Chen Tsai-ling, and Jason Pan, “Eight convicted in espionage case,” Taipei Times, 23 August 2024)
INTERNAL
President Xi urges maintaining Chinese form of socialism, reports CGTN
On 22 August, CGTN reported that the President of China, Xi Jinping urged China to continue advancing socialism with Chinese characteristics. Xi made the remarks at a meeting to commemorate the 120th birth anniversary of the former President of China, Deng Xiaoping. The Chinese President lauded Deng’s “outstanding contributions” stating that he had succeeded in bringing modernization to China, with a successful model of socialism adapted for the Chinese context. In remarks at the meeting, Xi said, “The best way to honour Deng is to continue advancing the cause of socialism with Chinese characteristics that he initiated.” Xi also hailed the Deng Xiaoping Theory as Deng’s most important intellectual legacy, suggesting that it should be studied and applied to address real-world problems; and encouraged China to take more steps towards achieving prosperity for all, and complete reunification. (“ Xi Jinping urges advancing socialism with Chinese characteristics on 120th birth anniversary of Deng Xiaoping,” CGTN,22 August 2024)
Calls for economic reform in China on Deng Xiaoping’s birth anniversary, reports Reuters
On 23 August, Reuters reported that some Chinese economists had called for greater reforms in the country, on the occasion of the 120th birth anniversary of the former President of China, Deng Xiaoping. Several economists published articles praising Deng for his economic reforms, while expressing disappointment with the incumbent Chinese government for the slow pace of reforms at present. An economist, Wang Zhigang stated in an online article that China was once again at a crossroads in history; and that Deng could be commemorated only through inheriting his legacy and opening up the future. An article published in 2018 by prominent liberal economist and Sinar Mas Chair Professor of Economics at the National School of Development, Peking University, Zhang Weiying; which praised Deng’s economic reforms was widely circulated on the social network WeChat and deleted twice by internet censors. China is facing a slowing economy at present, and experts believe that the present reforms announced by the government are not enough. (“ Late Chinese reformer Deng Xiaoping’s birthday stirs calls for bolder reform/,” Reuters, 23 August 2024)
ENERGY & ENVIRONMENT
State Council of the China approves 11 new nuclear reactor project, reports Bloomberg News
On 20 August, Bloomberg News reported that the State Council of the People’s Republic of China had approved 11 new nuclear reactors across five sites. The reactors across Jiangsu, Shandong, Guangdong, Zheijang and Guangxi are expected to cost about 31 billion USD across five years, according to the financial publication Jiemian Global. China has approved 10 new reactors in each of the last two years, having more nuclear reactors under construction than any other country. As per the China Nuclear Energy Association, 56 reactors which amount to about 5 per cent of the country’s total electricity demand are currently operational. According to investment bank Citic Securities Co., 10 new reactors are likely to be approved annually for the next 3 to 5 years. Among the new projects is a fourth-generation nuclear reactor at the Xuwei plant in Jiangsu, operated by the China National Nuclear Corporation (CNNC). CNNC stated that the reactor would supply both heat and electricity, alongside advanced safety features. According to research organization BloombergNEF, China is likely to surpass the US and France as the world’s leading atomic energy producer by 2030, with new projects driving its rise. (“China Makes $31 Billion Nuclear Push With Record Approvals,” Bloomberg News, 20 August 2024)
DEFENCE
China uses Jinggang Shan advanced warfare ship for combat drills, reports SCMP
On 22 August, SCMP reported that the People’s Liberation Army Navy staged combat drills using the Jinggang Shan, an advanced amphibious warfare ship. The People’s Liberation Army Southern Theatre Command informed through a social media post that the Jinggang Shan, which is a Type 071 landing ship with the ability to carry hundreds of troops and dispatch hovercraft and amphibious vehicles at the same time; had taken part in “high-intensity maritime training”. The Southern Theatre Command stated that this was intended to improve the Navy’s ability to undertake diverse missions in challenging environments, and its operational coordination. A simulation where the Jinggang Shan ship tracked and destroyed a target in the air, helicopter drills, battlefield rescues, information gathering, and offensive and defensive manoeuvres were part of the exercises. These drills come after the Jinggang Shan took part in joint training exercises in Cambodia and East Timor earlier this year; and amidst escalating tensions between China and the Philippines. ( Zhao Ziwen, “PLA sends advanced landing craft for ‘high-intensity’ drills amid South China Seas tensions,” South China Morning Post, 22 August 2024)
ECONOMY
PwC China faces suspension and fine over auditing of Evergrande, reports Reuters
On 22 August, Reuters reported that a part of the auditing unit of accounting firm PricewaterhouseCoopers’(PwC) in China was likely to be hit by a six-month ban. Anonymous sources informed that PwC Zhong Tian LLP, the registered accounting entity and main onshore arm of PwC in China would also face a fine of about 400 million CNY alongside the ban. PwC has been under scrutiny due to its role in auditing the now-liquidated Chinese property developer China Evergrande Group. Evergrande was accused of fraud worth 78 billion USD and was audited by PwC for nearly 14 years. The sources stated that PwC would be barred from signing off on key documents like Initial Public Offer(IPO) applications for clients in mainland China and other securities-related services, as a part of the ban. PwC Zhong Tian could also be barred from taking on new state-owned and domestically listed clients for the next three years. Reports of a potential ban and suspension for PwC have been circulating for the past few months, leading to cost cuts and resignations at the firm. ( Xie Yu and Julie Zhu, “PwC China faces 6-month business ban, large fine over Evergrande audit, sources say,” Reuters, 22 August 2024)
SCIENCE & TECHNOLOGY
China still the largest industrial robot market in world, says Chinese Minister for Industry and Information Technology
On 23 August, China’s Deputy Minister at the Ministry of Industry and Information Technology, Xin Guobin informed that China remained the world’s largest market for industrial robots for the 11th consecutive year. Guobin made the remarks at the World Robot Conference 2024 in Beijing, stating that China’s industrial robot production was at 430,000 sets and its newly added robot installations accounted for over half of the global market in the last three years. According to Xin, the “Robot plus Application,” integrating robots across industries has been increasing in China, with the number of robots per 10,000 workers in the Chinese manufacturing sector at 470. Xin also hailed the progress made by China’s robot industry, with breakthroughs in areas like the research and development of bionic perception. Experts also believe that China is likely to be at the forefront of the booming humanoid robot industry. Vice-President of Chinese robotics manufacturer UBTECH Robotics, Jiao Jichao stated that China’s large market and quality industrial supply chain would enable large-scale production(“China remains world’s largest industrial robot market,” CGTN, 23 August 2024)
CHINA & TAIWAN
41 PLA Chinese aircraft and vessels located near Taiwan, reports Business Standard
On 23 August, Business Standard reported that the Ministry of National Defence of Taiwan had detected 41 aircraft belonging to the People’s Liberation Army (PLA) of China and seven People’s Liberation Army Navy (PLAN) vessels around its territory. The Ministry stated that 32 aircraft had crossed the median line dividing the Chinese mainland and Taiwan, and entered Taiwan’s Eastern Air Defence Identification Zone (ADIZ) on the morning of 23 August. It added that the Taiwanese Armed Forces had monitored the situation and responded accordingly. Before this, on 22 August, the Ministry had detected eight PLA aircraft and six PLAN vessels, out of which three aircraft had entered the ADIZ. The latest incident follows a list of increasing military incursions into Taiwanese territory by China. (“ 41 Chinese aircraft, seven vessels detected around Taiwan, 32 cross border,” Business Standard, 23 August 2024)
CHINA & SOUTH ASIA
India overtakes China as top buyer of Russian oil, reports Reuters
On 22 August, Reuters reported that India had surpassed China as the leading buyer of Russian oil in July. Data from trade and industry sources showed that Russian crude oil made up 44 per cent of India’s imports in July, a 12 per cent increase from a year ago. The Indian total of 2.07 million barrels per day was more than China’s 1.76 million barrels per day. Lower profit margins from producing fuels have reduced demand for fuels in northeastern China. On the other hand, trade between India and Russia has increased since the Russian invasion of Ukraine, due to limited energy purchases by Western nations. This has contributed towards India surpassing China as a buyer of Russian oil. ( Nidhi Verma, “India surpasses China to become Russia’s top oil buyer in July,” Reuters, 22 August 2024)
CHINA & SOUTHEAST ASIA
China and Myanmar joint combat initiative against telecom fraud, reports Global Times
On 23 August, an editorial in Global Times titled “China and Myanmar’s joint combat on telecom fraud a vivid practice of GSI,” reported on successfully capturing 307 Chinese criminals suspected of cross-border telecom fraud in northern Myanmar and handing them to China. The editorial noted that recently, the public security organs in Southwest China's Yunnan Province and the law enforcement authorities in Myanmar cooperated and successfully nabbed the criminals. Since last year, China and Myanmar have deepened international police cooperation and handed over 50,000 Chinese suspects involved in fraud to China. China encouraged countries in the Global Security Initiative (GSI) to make institutional arrangements to fight transnational crimes and actively conduct law enforcement cooperation to maintain sovereignty. It also supported the promotion of cooperation in non-traditional security fields under the Lancang-Mekong Cooperation (LMC) framework, implementing relevant cooperation projects under the LMC Special Fund. The joint statement issued by China and Vietnam stated that both countries should promote cooperation in combating telecom fraud and other fields. The pieces expressed that the Chinese model of cooperation with neighbouring countries to combat telecom fraud may also be replicated in other fields, promoting the further implementation of the GSI and providing solid security for regional and global development. (“China and Myanmar’s joint combat on telecom fraud a vivid practice of GSI,” Global Times, 23 August 2024)
CHINA & RUSSIA
“China and Russia will boost all-round cooperation,” cites an editorial in Global Times
On 22 August, an editorial in Global Times reported on Chinese-Russian cooperation in emerging fields. A Chinese analyst said: “China and Russia will boost all-round cooperation with exploration in and bilateral ties will not be weakened by the sanctions and containment imposed by the US and its allies.” According to the Xinhua News Agency report, Chinese Premier Li Qiang voiced China's readiness to work with Russia to strengthen the cooperation and lift the bilateral partnership. Li further stated that both sides have agreed on joint efforts to optimize trade structure and economies, trade and promote the development of e-commerce. According to the text of the joint communique released by the Chinese Foreign Ministry, the two countries will boost cooperation in many fields including logical cooperation on artificial intelligence (AI) technology, cybersecurity and aerospace cooperation. A Shanghai-based scholar Cui Heng, said: “that apart from planning for pragmatic cooperation, the two countries are also looking forward to solving the problem caused by the blockade, isolation, long-arm jurisdiction and sanctions imposed by the US and some of its allies, which are attempting to contain the rightful development of China and Russia.” Furthermore, he stated that China and Russia will explore new trade routes and improve the interconnectivity in maritime. (“China, Russia to boost all-round cooperation,” Global Times, 23 August 2024)
CHINA & EUROPE
China and Belarus boost agriculture and freight train cooperation, reports CGTN
On 23 August, CGTN reported on the Chinese-Belarus cooperation to boost agriculture and Railway Express service. In a joint communique, Chinese Premier Li Qiang and Prime Minister Belarus Roman Golovchenko, said: “they are ready to give full play to the huge potential of cooperation in agriculture and strengthen investment cooperation in this sector.” Both sides are keen to expand access to the Chinese market for agricultural and food products, according to the document, they welcomed the entry of high-quality agricultural products into each of their respective markets and encouraged their enterprises to participate in exhibitions. Additionally, they also agreed to strengthen cooperation on the China-Europe Railway Express, an inter-governmental cooperation mechanism on the service to promote infrastructure connectivity and ensure the safety of the China-Europe freight corridor. (“China, Belarus pledge to boost agriculture, freight train cooperation,” CGTN, 23 August 2024)
CHINA & THE AMERICAS
Chinese democracy activist charged for spying in US, reports Aljazeera
On 22 August, Aljazeera reported on the United States prosecutors charging a New York resident for spying. The resident took part in the Chinese pro-democracy movement that resulted in the 1989 Tiananmen Square crackdown with spying for China. The Department of Justice (DoJ) stated that the resident Yuanjun Tang was charged for acting as an agent to the Chinese Ministry of State Security (MSS) from 2018 to 2023, by making materially false statements to the FBI. The DOJ said: “Yuanjun had provided the MSS, the country’s principal intelligence agency with information on individuals and groups viewed as potentially adverse to China’s interests, including prominent US-based Chinese democracy activists and dissidents.” Yuanjun used a particular email account, encrypted chats, text messages and audio and video calls to relay information to his handler, before he fled to Taiwan the US authorities repeatedly detained, questioned and harassed him. Additionally, the DOJ further stated his regular participation in events with PRC dissidents promoting the democracy of China. A spokesperson for the Chinese embassy to the US said: “China firmly opposed groundlessly slandering and smearing of the country.” (“US charges former democracy activist with spying for China,” ALJAZEERA, 23 August 2024)
China warns US against Tibetan spiritual leader Dalai Lama visit, reports SCMP
On 22 August, SCMP reported that China warned US allowing Dalai Lama to visit and engaging in separatist activities while visiting the country. Chinese foreign ministry spokeswoman Mao Ning said: “China firmly opposes any country allowing the Dalai Lama to visit under any pretext and firmly opposes any government officials of any country meeting with the Dalai Lama in any form, we have made solemn protests to the US. The appointment of a so-called special coordinator of Tibetan issues constitutes interference in [China’s] internal affairs.” China’s call came after a few senior US officials met the spiritual leader of Tibet in New York on 21 August. The officials stated that the meeting reaffirmed the US commitment to advancing the human rights of Tibetans. Additionally, China condemned US President Joe Biden for signing the Resolve Tibet Act, which urges Beijing to resume direct dialogue with the Dalai Lama to resolve differences and calls for a negotiated agreement on Tibet. Furthermore, China considers the Dalai Lama as a separatist and refrains from contact with him by foreign government officials. (“China warns US not to allow Dalai Lama’s ‘separatist activities’ or talks with officials,” South China Morning Post, 23 August 2024)
China Reader Daily Wire | 22 August 2024, Thursday | Vol.1 No. 154
CHINA & EUROPE
China launches anti-subsidy probe into EU dairy imports, reports The Guardian
On 21 August, The Guardian reported that China is beginning an anti-subsidy investigation into dairy imports from the European Union (EU). The Ministry of Commerce of the People’s Republic of China announced that it would look into 20 subsidy programmes in eight EU member states, supporting the production of milk, cream and cheese. The investigations being conducted include on Ireland for subsidies on dairy equipment, Italy for livestock insurance schemes and dairy subsidies, Austria and Belgium for loan schemes, Romania for livestock subsidies among others. The European Union Chamber of Commerce in China stated that the investigation was not a surprise, following the EU imposing tariffs on Chinese electric car imports, alleging benefits from subsidies. Meanwhile, the European Commission promised to defend the interests of the European dairy industry and the common agricultural policy, and intervene in accordance with World Trade Organization (WTO) rules. ( Jennifer Rankin and Lisa O’Connell, “China begins anti-subsidy investigation into European dairy imports,” The Guardian, 21 August 2024)
ENERGY & ENVIRONMENT
China approves 11 new nuclear reactors, reports Business Standard
On 20 August, Business Standard reported that the State Council of the People’s Republic of China had approved 11 new nuclear reactors across five sites. The reactors across Jiangsu, Shandong, Guangdong, Zheijang and Guangxi are expected to cost about 31 billion USD across five years, according to the financial publication Jiemian Global. China has approved 10 new reactors in each of the last two years, having more nuclear reactors under construction than any other country. As per the China Nuclear Energy Association, 56 reactors which amount to about 5 per cent of the country’s total electricity demand are currently operational. According to investment bank Citic Securities Co., 10 new reactors are likely to be approved annually for the next 3 to 5 years, with the new projects including a fourth-generation nuclear reactor. According to research organization BloombergNEF, China is likely to become the world’s leading atomic energy producer by 2030, with the new projects driving its rise. (“ China approves 11 nuclear reactors worth $31 billion across five sites,” Business Standard, 20 August 2024)
ENERGY & ENVIRONMENT
World’s highest Chinese solar power station kickstarts construction
On 20 August, construction began on the second phase of the Huadian Tibet Caipeng Photovoltaic Power Station. This set a new global altitude record for solar installations at 5,228 metres. This 100-megawatt expansion in Xizang Autonomous Region will feature nearly 170,000 solar panels and an advanced energy storage system. The project aims to address Shannan Prefecture’s seasonal power shortages, building on the success of its first phase, which has already generated over 40 million kilowatt-hours since late 2023. Upon completion, the entire facility will boast a 150-megawatt capacity, producing an estimated 246 million kilowatt-hours annually. This landmark project not only pushes the boundaries of high-altitude solar technology but also promises to significantly boost Tibet’s energy infrastructure, supporting the region’s ongoing development efforts. (“China expands world's highest solar power station to new height,” CGTN, 21 August 2024)
EXTERNAL
Chinese UN envoy calls for an end to unilateral sanctions
On 22 August, at a UN Security Council debate, China’s envoy Fu Cong called for an end to unilateral sanctions. He argued that they violate international law and exacerbate global instability. Fu emphasised the need for a supportive external environment to prevent conflicts, urging the UN to prioritise economic growth in its peacekeeping missions. He stressed the importance of an open international economic system and reforms in global finance to benefit developing nations. Fu criticised interference in other countries’ affairs and highlighted poverty as a major source of conflict. The envoy underscored the role of effective governance and inclusive development in maintaining stability. China’s commitment to supporting the Global South was exemplified by initiatives like the China-UN Peace and Development Trust Fund and Juncao Technology, which aids farmers in 107 countries. Fu reiterated China’s willingness to collaborate internationally to help developing countries achieve self-sufficiency and contribute to global peace. (“Chinese envoy urges immediate lifting of unilateral sanctions,” CGTN, 22 August 2024)
CHINA & EAST ASIA
Chinese amphibious assault ship spotted near Japan’s waters, reports SCMP
On 20 August, SCMP reported that China’s most advanced amphibious assault vessel was spotted in the western Pacific for the first time in a year. Joint Staff Office of Japan said: “that two Chinese naval vessels – a Type 075 Yushen-class amphibious assault ship and a Type 052D Luyang-class guided missile destroyer – were spotted about 120km (75 miles) northeast of the Miyako Islands in Okinawa.” The office further stated that the Ministry of Defence carried warning surveillance aimed at information gathering. A senior fellow Collin Koh at the S. Rajaratnam School of International Studies in Singapore said: “the deployments are intended to assert Beijing’s freedom of navigation through these waters, and symbolically to demonstrate its ability to break past the supposed US-led strategic containment within this chain.” A senior analyst at the Australian Strategic Policy Institute Malcolm Davis, said: “the Type 075 was designed to allow aviation and amphibious forces to operate from sea to shore and support those forces while ashore so in a Taiwan crisis, such a vessel could be employed to seize Taiwanese offshore territories, or support a direct invasion of the main island.” Additionally, Koh stated that, in the event of an asset like the Type 075, operating off the island’s east coast could complicate Beijing’s planning. (“China’s most advanced amphibious assault ship spotted near Japanese waters,” South China Morning Post, 22 August 2024)
CHINA & SOUTHEAST ASIA
Experts fear more China-Philippines clashes in the Sabina Shoal, says an editorial in SCMP
On 21 August, an editorial in SCMP stated that clashes between China and the Philippines over the disputed Sabina Shoal Island would increase citing maritime analyst. The island has been a source of tension since April; when the Philippine Coast Guard deployed its flagship BRP Teresa Magbanua on the shoal and China responded by sending several ships of its own to monitor. Deputy Director of the Institute of Maritime Law and Policy at the National Institute for South China Sea Studies in Hainan, Ding Duo stated that more clashes over the shoal were likely; since it was a strategic location for the Philippines from where it could resupply troops stationed on the Philippines-controlled Second Thomas Shoal. According to Ding, Sabina Shoal could also aid the Philippines in resupplying its ship BRP Sierra Madre. Moreover, China could block Philippine ships from entering Second Thomas Shoal, were Sabina Shoal to come under Chinese control, stated Ding. Senior Fellow at the S. Rajaratnam School of International Studies at Singapore, Collin Koh stated that Sabina Shoal also lies in close proximity to Recto Bank, an area with substantial reserves of oil and natural gas which could meet the Philippines’ energy needs Koh believed that the Philippines might try to assert control over Sabina Shoal through a regular maritime presence. However, both Ding and Koh urged caution from both China and the Philippines, since any provocative action by them could escalate. ( Alyssa Chen, “Why has Sabina Shoal become a China-Philippines flashpoint,” South China Morning Post, 21 August 2024)
Former Philippines mayor suspected of spying for China flees, reports BBC News
On 21 August, BBC News reported that an ex-mayor in the Philippines accused of spying for China had fled the country. The former mayor of Bamban municipality, Alice Guo left the country illegally and escaped border checks, according to the Bureau of Immigration Philippines. The Bureau also admitted that she had travelled abroad, to countries like Malaysia and Indonesia. Guo came under scrutiny in March 2024, after accusations that she had allowed scam centres and human trafficking operations to persist, through Philippine Offshore Gaming Operators or “Pogo” firms on land owned by Guo’s family. Guo has also been accused of being a spy for China, due to questions over her Chinese parentage. In his response to news of Guo’s departure, President of the Philippines, Ferdinand Marcos Jr. stated it showcased corruption and had eroded the trust of citizens. Macros promised to find the culprits who had helped Guo escape, and ordered the cancellation of her Philippine passport. (Joel Guinto, “Fury as suspected China spy flees the Philippines,” BBC News, 21 August 2024)
CHINA & SOUTH ASIA
India now allowing Chinese investments, says an editorial in The Economic Times
On 22 August, an editorial in The Economic Times reported that an inter-ministerial panel in India had cleared five to six investment proposals from Chinese companies in the electronic manufacturing sector. Investment from China in India had required prior government approval, following the border clashes of 2020. However, now the Government of India appears to have heeded the requests of the electronics manufacturing industry, who had requested the Government to allow companies with Chinese links, owing to the need to improve supply chains. According to reports by the Economic Times, the industry had told the Government that tensions with China had cost the industry 15 billion USD and 100,000 jobs in the last four years. The industry also stated that restrictions on Chinese investment had cost India about 12 billion USD worth in export opportunities. An anonymous government official stated that the inter-ministerial panel in India was meeting every six to seven weeks to grant approvals, and take stock of the situation. With Chinese companies like Luxshare entering India already to set up units, the Chinese investment is likely to grow in India. However, there are also a few conditions in place for Chinese investment. These include an assurance that the technology being utilized is needed for local manufacturing development in India, no Chinese national holding an executive position in any company or joint venture operating in India, and Chinese companies being allowed to hold only minority stakes. ( Kiran Rathee, “Forbidden no more: India begins OKing Chinese proposals,” The Economic Times, 22 August 2024)
CHINA & AFRICA
China-Africa media forum calls for greater media role in modernization, reports Xinhua
On 21 August, Xinhua reported that attendees at the 6th Forum on China-Africa Media Cooperation and China-Africa Think Tank High-Level Dialogue had called for the media in both China and Africa to make joint efforts for the modernization of developing countries. According to the attendees, media organizations and think tanks must make efforts to show the successes of China-Africa cooperation, and topics related to modernization must be high on the reporting and research agenda. The attendees also stated that the Global South nations must receive intellectual and public support in their journey towards modernization. The event was attended by over 500 representatives of media organizations, think tanks, government departments and international organizations from China and over 40 African nations; and witnessed the Head of the Publicity Department of the Central Committee of the Communist Party of China, Li Shulei delivering a speech at the opening ceremony. Additionally, six television and radio agreements were signed between organizations from China and Africa, and 20 cooperation projects were announced. ( “China-Africa media cooperation forum focuses on support for modernization,” Xinhua, 21 August 2024)
China- Egypt conduct joint naval exercises, reports Global Times
On 21 August, Global Times reported that the People’s Liberation Army(PLA) Navy of China and the Egyptian Navy had held a joint naval exercise in the Mediterranean Sea. The PLA Navy stated in a press release that its missile destroyer Jiaozuo and its replenishment ship Honghu from the 46th escort task group had held a joint maritime exercise with the Egyptian Navy’s multipurpose frigate Al-Galala, in the Mediterranean Sea to the north of the Egyptian city of Alexandria. According to the PLA Navy, training courses like communication coordination, formation manoeuvring and maritime replenishment positioning were carried out together, and held a flotilla separation ceremony after completing the training. The PLA Navy further stated that the visit promoted exchanges between the Chinese and Egyptian Navies and increased cooperation, with sailors from both sides visiting each other’s’ vessels and engaging in activities like football matches. An anonymous Chinese military expert stated that the PLA Navy’s visit to Egypt immediately after Russia shows a level of friendship and pragmatic cooperation between China and Egypt. (Liu Xuanzun, “ China, Egypt hold joint naval exercise in Mediterranean Sea,” Global Times, 21 August 2024)
CHINA & RUSSIA
“Unprecedently high level” meeting between Russian President and Chinese Premier, reports AP News
On 22 August, AP News reported that the Russian President Vladimir Putin met the Premier of China, Li Qiang. The meeting came on the occasion of Li’s visit to Russia, and amidst Russian attempts to combat the Kursk incursion by Ukraine. President Putin stated that trade relations between China and Russia were developing successfully, and the two countries were planning large-scale projects. Li also expressed his confidence in China-Russia ties, stating they were at an “unprecedently high level.” According to US intelligence, China has increased sales of weapons-based technology to Russia this year, showing China’s growing influence in Russia. ( “Putin meets China’s Premier Li as Moscow and Beijing deepen their relations,” AP News, 22 August 2024)
CHINA & EUROPE
EU foreign policy chief claims trade war with China “unavoidable,” reports SCMP
On 21 August, SCMP reported that High Representative of the European Union for Foreign Affairs and Security policy, Josep Borrell warned that a trade war with China was ‘unavoidable.’ In remarks at a press conference, Borrell said, “We mustn’t be naïve, we have no interest to get into a trade war… but maybe it’s unavoidable, it’s also in the logic of things.” Borrell also stated that cheap Chinese-made products like electric vehicles were being diverted to the European Union (EU) due to higher tariff rates in the United States, and this was creating an issue of competitiveness with industries in Europe. Fears of a trade war between the EU and China have grown in recent months, with the EU proposing a tariff on Chinese-made electric vehicle imports, and China launching an anti-subsidy probe into EU dairy imports, However, Borrell believed the EU should avoid confrontation with China, and called trying to oppose its rise impossible. Borrell was also sceptical that an investment deal between China and the EU could be revived, due to sanctions placed by both sides on each other’s officials. (Finbarr Bermingham, “China trade war ‘maybe unavoidable’, EU’s top diplomat Josep Borrell warns,” South China Morning Post, 21 August 2024)
CHINA & THE AMERICAS
Paraguay’s President expressed willingness to trade with China, reports SCMP
On 22 August, SCMP reported that the President of Paraguay, Santiago Pena stated that he was open to making trade deals with China through the South American trade bloc Mercosur. Paraguay remains the only South American nation to maintain formal ties with Taiwan, which China claims as its own territory. Paraguay’s support for Taiwan has made it difficult for Paraguayan farmers to export grains to China. However, Pena said, “Our position with China is one of total openness,” adding that the obstacle was China not accepting Paraguayan recognition of Taiwan. Pena indicated that he supported a potential trade deal between Mercosur and China. (“Paraguay open to China trade deals via Mercosur trade bloc despite Taiwan ties, Pena says,” South China Morning Post, 22 August 2024)
Legal dispute in the US between Shein and Temu over copyright infringement, reports VOA
On 21 August, VOA reported that the online fashion giant Shein filed a lawsuit against competitor Temu. The Chinese shopping platform Temu was accused of stealing designs, copying product images. The complaint was filed by Washington federal group, alleging that Temu, which grew in popularity in the US has subsidized its low prices by encouraging sellers to offer counterfeited items, stolen designs and substandard products. Temu spokesperson said: “Shein, buried under its mountain of IP lawsuits, has the nerve to fabricate accusations against others for the very misconduct they're repeatedly sued for.” Additionally, Temu, criticised Shein for forcing clothing manufacturers to submit to unfair supply chain arrangements and prevent them from working with Temu. VOA also reported about the Attorneys for Shein complaining that at least one Temu employee stole valuable secrets from Shein and falsely presented itself as Shein through impostor X accounts, directing customers to Temu's site and further alleged that Temu has engaged in similar practices through sponsored Google advertisement. (“Shein sues Temu over copyright infringements as legal feud heats up,” VOA, 22 August 2024)
China-US agree to strengthen financial stability in the Financial Working Group meeting, reports Bloomberg
On 19 August, Bloomberg reported on China’s central bank meeting in Shanghai, which produced an agreement with the US Treasury to appoint contact people to deal with financial stress events. Both sides exchanged lists of financial stability contacts in the fifth meeting of the Financial Working Group. Additionally, the People’s Bank of China and the US Treasury Department signed an exchange of notes on strengthening China-US financial stability cooperation. According to a treasury readout, it said: “two sides exchanged letters in support of coordination during times of financial stress to strengthen appropriate information sharing and reduce overall uncertainty between Treasury and the PBOC regarding crisis management and recovery and resolution frameworks. The exchange of key points of contact is to make it easier to quickly coordinate in instances of financial stress or operational resilience issues.” Furthermore, the Chinese readout stated that the agreements would enable both sides to maintain timely and smooth communication channels and reduce uncertainty when financial stress events and financial institutions operate under risk. The PBOC readout stated that financial institutions have participated for the first time in these types of meetings. (“China, US to Set Up Contact Group for Cases of Financial Stress,” Bloomberg, 22 August 2024)
China Reader Daily Wire | 21 August 2024, Wednesday | Vol.1 No. 153
CHINA & SOUTHEAST ASIA
US criticises China's “deliberate collision” with the Philippines vessel
On 20 August, US National Security Adviser Jake Sullivan criticised China’s “deliberate collision” with Philippine coastguard vessels near Sabina Shoal. This occurred during a call with Sullivan’s Filipino counterpart, Eduardo M. Año. The incident, which caused significant damage to a Philippine vessel, has heightened tensions in the disputed South China Sea. Sullivan reaffirmed the US commitment to the Mutual Defense Treaty, emphasising its extension to armed attacks on Philippine forces in the region. This show of support comes as Beijing accuses the Philippines of causing the collision and conducting drone reconnaissance.The discussion also covered the recent USD 500 million US foreign military financing for the Philippines, aimed at modernising its armed forces and coastguard. This assistance is part of broader efforts to enhance US-Philippine cooperation in upholding international maritime law in the South China Sea. Sabina Shoal, an uninhabited atoll in the Spratly Islands, has become a new flashpoint between China and the Philippines. Located within the Philippines’ claimed exclusive economic zone, it is crucial for resupplying Philippine troops stationed nearby. ( Mark Magnier, “US assures Manila of support after PLA vessel’s ‘deliberate collision’ in South China Sea,” South China Morning Post, 21 August 2024)
CHINA & SOUTH ASIA
Nepal set to lift TikTok ban, reports Kathmandu Post
On 21 August, The Kathmandu Post reported that Nepal’s government will lift restrictions from the popular Chinese app TikTok, after banning it for nearly nine months. The previous administration, led by Prime Minister Pushpa Kamal Dahal, implemented the ban in November 2023, citing concerns over social harmony. The KP Sharma Oli government plans to allow TikTok’s operation with new regulations. The app’s South Asia division recently reached out to Communication Minister Prithvi Subba Gurung, pledging compliance with local rules. A ministry official, speaking anonymously, said: “The government is positive.” The ban’s reversal will likely be decided in an upcoming Cabinet meeting. Despite the restriction, many users bypassed it using VPNs, leading to a 20 per cent increase in international bandwidth consumption. Internet service providers report that TikTok accounts for nearly 40 per cent of Nepal’s internet bandwidth usage. The ban faced criticism as an attack on free speech, with experts arguing that completely banning technology is counterproductive. Instead, they suggest implementing “RegTech” (Regulatory Technology) to enhance compliance processes. (Krishana Prasain, “Nepal plans to lift ban on popular Chinese app TikTok,” The Kathmandu Post, 21 August 2024)
CHINA & AFRICA
China-Africa economic and trade cooperation continues to grow, says an editorial in Xinhua
On 20 August, and editorial in Xinhua looked into Forum on China-Africa Cooperation and the growing economic cooperation. Assistant Minister of Commerce for the People’s Republic of China Tang Wenhong, informed at a press conference that China-Africa economic and trade cooperation had been steadily growing since the Forum on China-Africa Cooperation (FOCAC) held in 2021. The press conference detailed the progress made under the nine cooperation programs announced at FOCAC 2021, which include medical and health, poverty reduction and agricultural development, and digital innovation. According to Tang, China’s direct investment stock in Africa now exceeds 40 billion USD, and Chinese firms have improved Africa’s tax revenues by creating trade and cooperation zones in sectors like manufacturing. Tang further went on to state that Chinese companies have contributed to Africa’s continuing development by implementing clean energy projects, and “small but beautiful” projects which promote local economic and social development. Deputy Head of the China International Development Cooperation Agency, Liu Junfeng further elucidated China’s aid for Africa, such as supplying 240 million COVID-19 vaccine doses, providing emergency food aid worth about 100 million USD to over 30 nations, and assistance in areas like employment promotion. Tang informed that China would increase cooperation with Africa on industrial and supply chains during the FOCAC 2024 summit, to be held in Beijing from 4 to 6 September. Director of the West Asia and Africa Department under the Chinese Ministry of Commerce, Shen Xiang was also present at the press conference and informed that a conference of Chinese and African entrepreneurs would be held during FOCAC 2024, to improve cooperation.(“ Update: China-Africa economic, trade cooperation reaches new heights,” Xinhua, 20 August 2024)
INTERNAL
Chinese President Xi Jinping commends Chinese Olympians performance in Paris 2024
On20 August, Chinese President Xi Jinping praised China’s Olympic team for their outstanding performance at the Paris 2024 Games, where they secured 40 gold, 27 silver, and 24 bronze medals. Meeting the delegation at the Great Hall of the People, Xi emphasised that their success reflects China’s growing national strength and position as a major Olympic contender. He attributed this achievement to improved technological support, training environments, and talent development. Xi urged the athletes to continue excelling while promoting national fitness and youth sports. He commended their sportsmanship and positive representation of China’s culture and modern image. Xi declared: “The motherland and the people are proud of you.” The president stressed the importance of integrating national fitness with health initiatives as China aims to become a sports powerhouse. However, Xi encouraged Olympians to remain humble while striving for further improvement in preparation for future competitions. (“President Xi Jinping hails Olympians for winning glory for country,” CGTN, 20 August 2024)
Hong Kong hosts Overseas Chinese World Conference 2024
On 20 August, Overseas Chinese World Conference 2024 on Promoting Peaceful Reunification of China was convened in Hong Kong. It drew over 1,200 representatives. A top CPC official Wang Huning sent a congratulatory letter praising overseas Chinese for their efforts in opposing “independence” and fostering cross-strait exchanges. He urged compatriots to “keep pace with the trends of history” and work towards reunification. Another senior CPC member, Shi Taifeng, attended the event, emphasising its importance in advancing the cause. The conference, themed around promoting peaceful reunification and national rejuvenation, resulted in the adoption of the 2024 Hong Kong Declaration. This gathering highlights China’s ongoing efforts to engage overseas Chinese in its reunification agenda and reinforce the one-China principle internationally. (“Conference on promoting China's peaceful reunification held in HKSAR,” CGTN, 21 August 2024)
DEFENCE
China installed laser energy weapon to its amphibious assault ship, reports Business Standard
On 20 August, Business Standard reported that China has reportedly equipped one of its Type 071 amphibious assault ships with a laser-directed energy weapon. This showcases its advancement in naval capabilities. This development, revealed in a recent photo circulating on social media, mirrors similar efforts by the United States and other nations. The laser system, concealed under a dome-like structure when not in use, is believed to be a test platform for potential wider deployment across China’s fleet. The move follows the US Navy’s successful trials of the Laser Weapon System Demonstrator (LWSD) Mk 2 Mod 0, which downed a small drone in 2020. While the specifics of China’s system remain unclear, it is expected to offer similar capabilities to the US version. This will include defence against small boat swarms and unmanned aircraft as well as the ability to dazzle optical sensors. China’s People’s Liberation Army Navy has previously employed lower-power laser dazzlers, reportedly using them in confrontations with Australian and US maritime patrol aircraft. This latest development shows that China is advancing towards more powerful laser weapons capable of addressing complex threats like cruise missiles and aircraft, potentially revolutionising naval warfare capabilities. (Bhaswar Kumar, “China deploys new laser weapon on amphibious navy ship. What we know so far,” Business Standard, 20 August 2024)
CHINA & SOUTHEAST ASIA
Indonesian market flooded with cheap Chinese products, reports AP News
On 21 August, AP News reported that Indonesia is facing a flood of low-cost Chinese products entering its market. This is severely impacting local manufacturers. The situation has become so dire that the government is considering imposing import tariffs of up to 200 per cent on various Chinese goods, including textiles, electronics, and cosmetics. Trade Minister Zulkifli Hasan announced this potential measure in July, aiming to protect domestic businesses and prevent job losses. The impact is particularly severe in the textile industry, with at least 12 factories closing and over 12,000 workers losing their jobs in the first half of 2024. In Bandung, a region known for its textile production, workers are facing reduced hours and irregular income. A manager at Asnur KonveksiNeng Wati noted: “Now they take turns. The number of workers stays the same, but the work is divided up and not all get some.” While the government seeks to protect local industries, it must balance this with maintaining good relations with China which is Indonesia’s largest trading partner. (Edna Tarigan, “Indonesia searches for ways to balance domestic industries with surging Chinese imports,” AP News, 21 August 2024)
CHINA & THE PACIFIC
Chinese President Xi Jinping vows developmental support for Fiji, reports SCMP
On 20 August, SCMP reported that the China promised to support Fiji’s development and help tackle climate change. The promise was made when Prime Minister of Fiji, Sitiveni Rabuka visited China and met Chinese President Xi Jinping. According to the national television broadcaster China Central Television (CCTV), Xi had stated that China would continue assisting Fiji’s economic and social development and was ready to help Fiji and the Pacific Island nations in combating climate change. CCTV also reported that Rabuka had shown a willingness to learn from China’s success in poverty eradication and infrastructural development. In a post on Facebook, the Government of Fiji reaffirmed Rabuka’s eagerness to work with China on issues such as poverty alleviation and infrastructure development. Rabuka’s trip also involved a meeting with Premier of China Li Qiang; wherein the two leaders agreed to improve cooperation across areas like infrastructure, agriculture, tourism, and poverty alleviation, as per the Ministry of Foreign Affairs of the People’s Republic of China. The meeting between Rabuka and Xi comes amidst tensions in the region over China’s attempts to increase its political and security influence. (Zhao Ziwen, “China promises to help Fiji tackle climate change as Beijing seeks greater Pacific role,” South China Morning Post, 20 August 2024)
CHINA & EUROPE
Lower EU tariff for China-made Tesla electric vehicles, reports Reuters
On 20 August, Reuters reported that the European Union (EU) had reduced by half the planned tariff on Tesla electric vehicles (EVs) imported from China. The EU set a new reduced rate of 9 per cent for Tesla, lower than the 20.8 per cent planned earlier. The European Commission, which is responsible for EU trade policy, has been planning to impose tariffs on Chinese EV imports; arguing that the EV manufacturers benefit from subsidies by the Government of the People’s Republic of China. Tesla had requested a recalculation of the tariff rate, based on the specific subsidies it had received. The Commission stated that it had confirmed that Tesla received less subsidies from the Chinese government, as compared to other EV manufacturers from the country. The Commission still plans to impose a tariff of up to 36.3 per cent on other Chinese EV companies; although this is lower than the 37.6 per cent tariff initially planned and Chinese firms in joint ventures might be reduced. Meanwhile, the Ministry of Commerce of the People’s Republic of China stated that it would take all measures to protect Chinese firms, and hoped the EU would take practical actions to avoid tensions. The Chinese government had also launched a formal complaint over the tariffs at the World Trade Organization (WTO) earlier. ( Philip Blenkinshop and Kate Abnett, “Tesla to get lower EU tariff on its Chinese-made EVs,” Reuters, 20 August 2024)
Chinese Premier visits Russia for the 29th Regular Meeting, reports CGTN
On 21 August, CGTN reported that the Premier of China, Li Qiang had arrived in Russia for the 29th Regular Meeting Between Chinese and Russian Heads of Government. Li was also undertaking an official visit to Russia at the invitation of the Prime Minister of Russia, Mikhail Mishustin. Li stated upon his arrival that China and Russia had set a model for a new type of international relations between neighbouring countries under the guidance of the President of China, Xi Jinping, and the President of Russia, Vladimir Putin. According to Li, China-Russia ties in recent years have shown mutual cooperation, friendship, and trust; and his visit is aimed at carrying forward the friendship from generation to generation, as well as improving cooperation. Li also noted how the heads of state of both China and Russia have met twice already this year, laying out a strategic plan for a new era of China-Russia relations, on the 75th anniversary of bilateral diplomatic ties between the two nations. Li’s visit comes close on the heels of Russian President Putin’s visit to China in May, where Chinese President Xi Jinping hailed the growing bilateral cooperation between the two nations. ( “Chinese premier arrives in Moscow to promote ties,” CGTN, 21 August 2024)
CHINA & THE AMERICAS
US President Biden approves nuclear strategy to tackle China, Russia and North Korea, reports The Guardian
On 21 August, The Guardian reported that President of the United States, Joe Biden had approved a US nuclear strategy to deal with adversaries like China, according to a report by the New York Times. Spokesperson for the National Security Council(NSC), The White House, Sean Savett, stated that the plan approved earlier this year was not a response to any specific country or threat. However, the New York Times reported that the new US policy took into account the rapid expansion of China’s nuclear arsenal, with estimates that China may possess 1000 warheads by 2030. In June, Senior Director for Arms Control, Disarmament, and Non-proliferation at the NSC, Pranay Vaddi indicated that the US government was prepared to expand its nuclear arsenal, in order to combat the threat from China, Russia, and North Korea. According to the Times, the former Acting Assistant Secretary of Defence for Space Policy, Vipin Narang informed that Biden had “issued updated nuclear weapons employment guidance to account for multiple nuclear-armed adversaries,” as well as the increase in China’s nuclear arsenal. The reports of increased American nuclear usage come amidst increasing alignment between China and Russia, with Chinese and Russian long-range bombers patrolling near Alaska for the first time last month. ( Edward Helmore, “ Biden approves nuclear strategy refocusing on China threat-report,” The Guardian, 21 August 2024)
US clinical trials in China scrutinised for IP theft and forced involvement of Uyghurs, reports SCMP
On 21 August, SCMP reported that US politicians across party lines had called on the US government to look into US clinical trials conducted in China. The risk of intellectual property (IP) theft and possible forced participation of the Uyghur community in the trials were given as reasons for scrutinizing the trials more. John Moolenaar, a Member of the US House of Representatives and Chair of the House Committee on the Chinese Communist Party and fellow Member of the House Raja Krishnamoorthi wrote a letter to Commissioner of the Food and Drug Administration (FDA) Robert Califf, stating that there were ethical concerns over conducting clinical trials in the Xinjiang province, due to the historical suppression and medical discrimination carried out against communities like the Uyghurs. According to Moolenaar and Krishnamoorthi, US drug companies have collaborated with Chinese military-run hospitals in conducting hundreds of clinical trials in Xinjiang, over the past decade. The letter also expressed concern that China could seize control of critical IP due to the collaborative research activities and asked the FDA for a response regarding the trials by 1 October. The Embassy of the People’s Republic of China in the United States of America dismissed the allegations, calling them ‘groundless.’ (“US clinical trials in China draw questions on IP theft, forced Uyghur involvement,” South China Morning Post, 21 August 2024)
China Reader Daily Wire | 20 August 2024, Tuesday | Vol.1 No. 152
CHINA & THE AMERICAS
China-US 5th financial working group meeting in Shanghai
On 19 August, CGTN reported on the fifth meeting in Shanghai between the China-U.S. financial working group, debating a range of issues related to the financial policies of both countries. The Chinese central bank said: “the two sides had professional, pragmatic, candid and constructive communication on a range of financial policy topics of mutual interest, including the broader strategy of further deepening comprehensive reforms as discussed at the third plenary session of the 20th Central Committee of the Communist Party of China.” Additionally, the meeting covered economic and financial situation, monetary policies, financial stability, anti-money laundering and counter-terrorism financing. The central bank stated that both sides agreed to maintain communication and signed an exchange of letters to enhance cooperation on financial stability. In addition, they also exchanged lists of financial stability ensuring timely communication between the financial regulatory authorities during operational risks of financial institutions. (“China, U.S. hold 5th meeting of economic and financial working groups,” CGTN, 20 August 2024)
CHINA & SOUTH ASIA
BYD to station NEV assembly plant in Pakistan
On 17 August, Chinese electric vehicle leader BYD is set to make an impact in Pakistan’s automotive sector. The company has announced plans to establish the country’s first NEV assembly plant, scheduled to begin operations in 2026. This move, described as a “landmark investment” by Hubco CEO Kamran Kamal, will introduce three BYD models to the Pakistani market through a partnership with Mega Motors. Recognising the current lack of charging infrastructure, Hubco will develop fast-charging stations across major cities and highways. BYD’s General Manager for Asia Pacific, Liu Xueliang, emphasised that this venture goes beyond merely introducing advanced vehicles, signalling a comprehensive approach to establishing a foothold in Pakistan’s emerging electric vehicle market. (“China's BYD plans car plant in Karachi as part of Pakistan entry,” Reuters, 17 August 2024)
INTERNAL
China bolsters social security fund to address ageing population crisis
On 20 August, China took decisive action to strengthen its 2.88 trillion yuan (USD 406 billion) social security fund in response to its rapidly ageing population. The fund’s party secretary Ding Xuedong, emphasised the need to make the fund “bigger and stronger” to support the elderly as the workforce shrinks. With an estimated 300 million Chinese set to retire in the next decade, the fund faces unprecedented challenges. Ding stressed the urgency of expanding the strategic reserve fund, calling it the “ballast” of China’s social security system. The fund plans to increase investments in the domestic capital market, focusing on areas crucial to the national economy and people’s livelihoods. It will also prioritise investments in scientific and technological innovation. To address public concerns, the fund aims to improve transparency by disclosing important financial information. According to the Chinese Academy of Sciences, these measures come as China grapples with projections that its pension system could be depleted by 2035. (“China plans 'bigger, stronger' social security fund to aid ageing society,” Reuters, 20 August 2024)
China’s foreign tourists surge boosts economy, reports CGTN
On 19 August, CGTN reported that China has witnessed a remarkable increase in foreign visitors, with numbers soaring 129.9 per cent year-on-year to 17.25 million in the first seven months of 2023. This influx has significantly impacted the economy, generating an estimated 100 billion yuan in consumption. The National Immigration Administration (NIA) attributes this surge to streamlined entry procedures for foreigners. The issuance of port visas jumped 183 per cent to 846,000, catering to urgent entry needs. Overall cross-border trips reached 341 million, marking a 62.34 per cent increase from the previous year. The NIA’s deputy head, Liu Haitao, highlighted the success of the 72/144-hour visa-free transit policy in facilitating international exchanges. This policy, along with other measures, reflects China’s commitment to high-level opening up and improved global connectivity. The NIA has pledged to optimise these policies, welcoming foreign visitors with increasing openness. (“China reports 129.9-percent growth of foreign visitors this year,” CGTN, 19 August 2024)
EXTERNAL
China’s 2+2 dialogues a strategic shift towards regional diplomacy, says an editorial in SCMP
On 19 August, an editorial in the South China Morning Post reported that China’s recent “2+2” dialogues with Indonesia and South Korea signal a potential evolution in its diplomatic strategy. These talks, involving senior foreign and defence officials, reflect Beijing’s efforts to strengthen ties with key regional players. While not a novel approach, China’s use of this format indicates a more comprehensive engagement strategy. A professor at Hopkins-Nanjing Centre, David Arase, suggested these dialogues allow China to “better leverage its rising military power” and align neighbours with a “China-centred regional order.” The timing is significant, as smaller Asian nations increasingly engage with Quad powers. However, experts like Nanyang Technological University’s Dylan Loh caution against overstating the shift, viewing it as an evolution recognising the intertwined nature of defence and foreign policy. The dialogues serve multiple purposes of enhancing strategic mutual trust, addressing regional issues like the South China Sea, and potentially countering the growing influence of Quad nations. (Dewey Sim, “China is using 2+2 talks with South Korea and Indonesia to ‘get its plans back on track’,” South China Morning Post, 19 August 2024)
SCIENCE & TECHNOLOGY
China the new Silicon Valley of the east as it dominates GenAI, says an opinion in Financial Express
On 20 August, an opinion piece in Financial Express stated that China has emerged as a powerhouse in generative AI (GenAI). The World Intellectual Property Organization’s 2024 report reveals China’s commanding lead, with 38,210 GenAI inventions compared to the US’s 6,276. Chinese companies dominate the top 10 patent applicants, with Tencent leading with 2,074 inventions. This success stems from proactive government planning, strategic investments, and a well-crafted regulatory environment. China’s approach balances innovation and control, creating a fertile ground for AI growth. The country has developed a robust AI infrastructure, supported by tech giants like Alibaba and Huawei. A thriving ecosystem of startups, established firms, and academic institutions fuels progress, backed by substantial venture capital and government funding. China’s emphasis on STEM education has produced a large, skilled AI workforce, further bolstered by international collaboration. Advancements in AI-specific hardware, supported by state initiatives like “Made in China 2025,” have cemented China’s position. This multifaceted strategy offers valuable lessons for countries like India in building their own AI ecosystems. ( Aditya Sinha & Aasheerwad Dwivedi, “China clout in GenAI patents,” Financial Express, 20 August 2024)
CHINA & SOUTH ASIA
China-Maldives FTA will be catalyst to regional economic development, says an opinion in Global Times
On 19 August, an opinion piece in the Global Times stated that the upcoming implementation of the China-Maldives Free Trade Agreement (FTA) in September marks a significant milestone in regional economic cooperation. Despite Western media raising concerns about the Maldives’ potential economic dependence on China, this partnership promises mutual benefits. The FTA will grant the Maldives greater access to the Chinese market for its aquatic products, while Chinese exports to the Maldives will enjoy reduced tariffs. As China’s 16th FTA and the Maldives’ first bilateral trade agreement, this collaboration could serve as a model for economic integration in South Asia. The agreement underscores China’s commitment to supporting small island developing states and may inspire similar partnerships in the region. While Western media often prioritise geopolitical concerns over regional economic growth, the pursuit of this FTA demonstrates the unwavering desire of Asian countries for development. As Maldivian President Mohamed Muizzu stated, the agreement will proceed after completing necessary legal procedures, signalling a commitment to mutual prosperity despite geopolitical pressures. (“GT Voice: China-Maldives FTA to serve regional economy, defy hype,” Global Times, 19 August 2024)
India needs to expand its ports to compete with China, says an opinion in The New York Times
On 20 August, an opinion piece in The New York Times stated that India is embarking on an ambitious port expansion program to support its aspirations of becoming a manufacturing and export powerhouse countering China. The Jawaharlal Nehru Port, handling about 25 per cent of India’s container traffic, has seen a tripling of container flow in two decades. However, it remains small compared to major Chinese ports. To address this, India is planning new ports and expanding existing ones. The proposed USD 9 billion Vadhvan port, set to be completed by 2035, aims to accommodate the world’s largest container ships, potentially reducing shipping costs and delivery times. The chairman of the Jawaharlal Nehru Port Authority Unmesh Sharad Wagh noted: “The world doesn't want total dependence on China. The best alternative is India.” This shift is driven by global businesses seeking alternatives to China amid trade tensions and supply chain disruptions. However, challenges remain, including infrastructure limitations and potential labour unrest. The success of India’s manufacturing ambitions may hinder its ability to rapidly modernise its ports and related infrastructure to meet growing demand and compete effectively on the global stage. (Peter S. Goodman and Hari Kumar, “Global Trade Needs a China Alternative. India Needs Better Ports,” The New York Times, 20 August 2024)
CHINA & SOUTHEAST ASIA
US missile deployment in the Philippines alarms China, reports Defence News
On 18 August, Defence News reported on China warned against the deployment of US missile system in Philippines, stating that it would destabilize the region. Philippine’s Foreign Secretary Enrique Manalo said: “Chinese counterpart, Wang Yi, expressed China’s concern over the U.S. mid-range missile deployment to the Philippines during their talks last month in Laos on the sidelines of the Association of Southeast Asian Nations meetings with Asian and Western countries.” Additionally, the US Army stated that it provided the Philippine troops with a mid-range missile system, a land-based weapon that can fire the Standard Missile-6 and the Tomahawk Land Attack Missile, as part of combat exercises. The Defence News reported Chinese criticism of the US military deployments in the territory and warned that the actions could be a threat to regional stability. The US and the Philippines condemned China’s increasingly forceful actions to strengthen its territorial claims in the South China Sea. (“China ‘dramatically’ alarmed by US missile deployment: Philippines,” Defence News, 20 August 2024)
CHINA & EUROPE
Chinese Premier to visit Russia to foster new depth in bilateral relationship, reports Global Times
On 20 August, Global Times reported on Chinese Premier Li Qiang's plans to travel to Russia on the occasion of the 29th regular meeting between Chinese and Russian heads of government. Chinese Foreign Ministry spokesperson Mao Ning said: “the regular meeting between Chinese and Russian heads of government is an important mechanism for delivering the common understanding between the two presidents and coordinating practical cooperation in areas such as people-to-people and cultural exchanges.” In addition, Premier Li and Russian Prime Minister Mishustin will co-chair the 29th regular meeting and exchange views on bilateral relations, practical cooperation and important issues of mutual interest. An expert at the Center for Russian Studies at East China Normal University Wan Qingsong said: “The latest round of interactions between China and Russia is a concrete action to implement a series of consensus reached by the two countries heads of state during Russian President Vladimir Putin's visit to China in May.” A scholar from Shanghai, Cui Heng, stated that Li’s visit is expected to cover a variety of topics and agendas fostering a new depth in the bilateral relationship. (“Li to visit Russia, Belarus to ‘boost exchange, cooperation,” Global Times, 20 August 2024)
CHINA & THE AMERICAS
Chinese students sceptical of US universities, says an opinion in SCMP
On 20 August, an opinion in SCMP titled “As Chinese students forgo US university degrees, the impact on brainpower transcends borders,” reported that Chinese Universities are being placed on a US sanctions list. Rafael Wang, a master’s programme student in the United States realised, as a surprise that his college was on the sanction list for 2022. Wang said: “pointing to its prowess in science and technology. But the problem was that even if a university admitted me, it was impossible to get a study visa. So, I decided to study in Europe.” Additionally, Wang’s case demonstrates how some Chinese students have been avoiding degree programmes in the US, fearing for getting caught in the geopolitical tensions between the two countries, while others are concerned about being denied a visa. The decline of enrolment among Chinese at US universities has subsequently taken count on foreign talent in the country, apparently strengthening great minds in China to support when it faces a shortage of employees in important industries. According to the 2023 Open Doors report on Chinese students in the United States, it marked a year-on-year decline of 0.2 per cent of students dropping out in admission. An assistant professor with Princeton University’s Department of Politics Rory Truex said: “We know that Chinese students, especially PhD students, are increasingly feeling unwelcome in the United States, this population is incredibly talented and important to the American scientific and research enterprise, but unfortunately, they have been branded as potential threats. In my view, the current strategic competition between the United States and China is about human capital more than anything.” (“As Chinese students forgo US university degrees, the impact on brainpower transcends borders,” South China Morning Post, 20 August 2024)
China Reader Daily Wire | 19 August 2024, Monday | Vol.1 No. 151
CHINA & SOUTHEAST ASIA
Chinese and Philippine coastguards collide in Sabin Shoal of South China Sea
On 19 August, a maritime incident near the disputed Sabina Shoal heightened tensions between China and the Philippines. The Chinese coastguard accused its Philippine counterpart of “unprofessional and dangerous” behaviour, claiming a deliberate collision occurred early Monday morning. Chinese spokesman Gan Yu warned the Philippines to “cease its infringement and provocation” or face consequences. The clash reportedly involved Philippine vessel No 4410 ramming Chinese vessel 21551 after ignoring warnings. This incident follows ongoing disputes over the Second Thomas Shoal and recent stand-offs at Sabina Shoal, which serves as a meeting point for Philippine resupply missions. Philippine Coast Guard spokesman Jay Tarriela asserted their right to operate in the area, stating, “Our Philippine Coast Guard vessels have the right to operate within the lagoon of Escoda Shoal for as long as necessary, without requiring permission from any other country.” (Laura Zhou, “Philippines coastguard accused of ‘ramming’ in South China Sea Sabina Shoal collision,” South China Morning Post, 19 August 2024)
INTERNAL
China’s youth unemployment reached 17.1 per cent, reports VOA
On 17 August, VOA reported that the youth unemployment rate in China reached 17.1 per cent in July this year. This is the highest this year and reflects the increasing economic downturns. This increment comes as a result of various problems, such as a faltering property market and strained relations with Western states due to trade disputes. Premier Li Qiang reaffirmed that there was a need to tackle issues related to distressed companies The unemployment bump is especially big for those aged between 16-24, rising from June’s figure of 13.2 per cent. This surge can probably be attributed to nearly 12 million college graduates who recently completed their studies and are now looking for jobs. Youth unemployment has been termed a “top priority” by President Xi Jinping. There is still an overall national unemployment rate standing at 5.2 per cent. Other indicators have shown signs of economic stress too. Industrial production growth fell to 5.1 per cent during July while property values continued sliding downwards even in major cities. For the first time since nearly two decades ago, the demand for bank loans has diminished significantly. The challenge posed by such domestic issues together with increasing international trade barriers from EU and US towards China according to the perception of unfair competition seem to be paying off for them. (“Youth unemployment in China jumps to 17.1% in July,” VOA, 17 August 2024)
ECONOMY
China renews gold import quotas
On 16 August, China’s central bank issued new gold import quotas to several banks, signalling potential renewed interest in the precious metal despite record-high prices. This move comes following a two-month hiatus occasioned by a fall in physical demand. Today gold goes for as much as 21 per cent higher than it did at the beginning of the year and peaked at USD 2,500.99 an ounce. However, one insider said: “There is no guarantee that the quotas will be made use of until things improve,” pointing out local premiums that are low. There exists good investment demand but poor jewellery needs. According to MKS PAMP’s Bernard Sin, China has more than enough physical gold in the market at present. For three months in a row, the People’s Bank of China did not buy any gold, maintaining its holdings at 72.8 million fine troy ounces by July. Furthermore, traders in China have urged lower prices than international spot ones showing reduced interest from buyers. Meanwhile, on the Shanghai Gold Exchange, trade volumes remain low but Hugo Pascal from InProved forecasts increased market activity between late August and September. He further said: “Given how resiliently gold has performed in America, I don't see why Chinese shoppers should shy away from it.” (Ashitha Shivaprasad and Polina Devitt, “Exclusive: China issues new gold import quotas after pause,” Reuters, 16 August 2024)
ENERGY & ENVIRONMENT
Climate change has reshaped China’s Qinghai-Xizang plateau, reports Chinese Academy of Sciences
On 18 August, findings from the second Qinghai-Xizang Plateau scientific expedition reveal significant environmental changes in the region. An academician with the Chinese Academy of Sciences Tandong reported that the plateau is becoming “warmer, wetter and greener,” with decreasing glaciers and snow cover but increasing vegetation. These shifts could alter Asian monsoon patterns, potentially leading to more extreme weather events in China. The plateau, crucial for regional and global water cycles, now holds over 10 trillion cubic meters of surface water. Climate models predict substantial glacier mass loss and rising lake levels by the century’s end, increasing the risk of glacier collapses and glacial lake outburst floods. Yao emphasises the need for improved early warning systems and sustainable water management strategies. (“Qinghai-Xizang Plateau turning warmer, wetter, and greener, new scientific research shows,” CGTN, 18 August 2024)
CHINA & SOUTHEAST ASIA
China backs Myanmar junta’s plans to hold elections, reports SCMP
On 17 August, SCMP reported that China has expressed support for Myanmar’s military junta’s proposal to hold elections next year, viewing it as a potential solution to the ongoing crisis in the Southeast Asian nation. Chinese Foreign Minister Wang Yi spoke at a regional meeting in Chiang Mai, Thailand and said: “We support Myanmar in achieving domestic political reconciliation within the framework of its constitution... and restarting the process of democratic transition through elections.” The announcement came amid escalating conflicts between the junta and opposition groups, particularly along the China-Myanmar border. Wang emphasised that neighbouring countries are most concerned about Myanmar’s stability and urged regional cooperation to promote “peaceful reconciliation.” However, China’s stance contrasts sharply with the United States’ approach. While Chinese officials met with Myanmar’s junta leadership, US officials held talks with opposition members and rebel groups, pledging support for a transition to civilian government. Wang also addressed regional concerns about cross-border crime, calling for a ministerial-level meeting to tackle non-traditional security threats in the area. (Josephine Ma, “China backs Myanmar junta’s census-plus-election plan to end turmoil,” South China Morning Post, 17 August 2024)
Cambodia’s deepening ties with China Phnom Penh road renamed ‘Xi Jinping Boulevard,’ says an opinion in East Asia Forum
On 17 August, an opinion piece in the East Asia Forum stated that Cambodia’s recent renaming of a major Phnom Penh road to ‘Xi Jinping Boulevard’ underscores the nation’s growing alliance with China. This relationship has brought significant economic benefits, with China funding numerous infrastructure projects like the Phnom Penh-Sihanoukville Expressway and the Sihanoukville Special Economic Zone. However, this partnership raises concerns. Cambodia’s external debt, 40 per cent of which is owed to China, has sparked fears of a potential debt trap. Prime Minister Hun Manet dismisses these worries, citing clear debt limits in annual budget laws. The influx of Chinese investment, particularly in Sihanoukville, has led to soaring real estate prices and demographic shifts, with an estimated 90 per cent of local businesses now Chinese-owned. Geopolitically, Cambodia’s alignment with China on issues like the South China Sea has strained ASEAN unity. Projects like the Funan Techo Canal have raised concerns in neighbouring countries, particularly Vietnam. The author stated that as Cambodia benefits from China’s support in various sectors, including healthcare and landmine clearance, it must balance these gains against potential risks. A diversified approach to partnerships and investments could help ensure sustainable development and regional stability. (Sokleap Sreng and Sovinda Po, “Chinese cash paves the way for complicated Cambodian development,” East Asia Forum, 17 August 2024)
Vietnam’s new Communist Party General Secretary visits China
On 18 August, Vietnam’s newly appointed Communist Party General Secretary to Lam started their three-day visit to China. This signalled the importance of Sino-Vietnamese relations. Lam’s first state visit since taking office includes meetings with President Xi Jinping and Premier Li Qiang. The visit builds upon the momentum created by Xi’s December trip to Vietnam, where over a dozen agreements were signed, covering areas such as railway cooperation and South China Sea incident management. China views this as “a good start” towards building a “China-Vietnam community of shared future that carries strategic significance.” Despite occasional tensions over South China Sea boundaries, the two communist-run nations have maintained strong economic and trade ties since establishing diplomatic relations in 1950. Their comprehensive strategic partnership, formed in 2008 and strengthened in 2013, addresses shared regional and international concerns. Lam’s visit to Guangzhou, where he will explore sites of revolutionary significance to Ho Chi Minh, underscores the historical depth of this relationship. (“Vietnam top leader To Lam arrives in China, set to meet Xi Jinping,” Reuters, 18 August 2024)
CHINA & SOUTH ASIA
India’s electronics sector still dependent on Chinese imports, says an editorial in The Indian Express
On 18 August, an editorial in The Indian Express reported that despite India’s growing electronics manufacturing sector, the country’s reliance on Chinese electronic components remains substantial. In the 2023-24 financial year, India imported electronic components worth over USD 18 billion from China and Hong Kong combined, accounting for more than half of its total imports in this category. Over the past five years, imports from China and Hong Kong have consistently outpaced those from other major manufacturing hubs like South Korea, Japan, Taiwan, and ASEAN countries combined. This dependence persists even as India has emerged as a significant electronics assembly hub, particularly for smartphones. While India has made strides in assembling finished products, with companies like Apple now exporting phones from India, the country lacks a substantial manufacturing base for crucial components such as printed circuit boards and integrated circuits. A senior government official noted: “China has built its manufacturing base over the last three-four decades. It is very difficult to rapidly decouple from them.” To address this issue, the Indian government is reportedly working on an incentive scheme for electronic components. However, the Economic Survey 2023-24 suggests a nuanced approach to reducing Chinese product imports while maintaining investments from Beijing. (Soumyarendra Barik, “China dominates supply of electronic components for ‘made in India’ products,” The Indian Express, 18 August 2024)
CHINA & MIDDLE EAST
Iran’s new Foreign Minister prioritizes alliance with China and Russia, reports CGTN
On 19 August, CGTN reported that the nominee for Iran’s foreign minister Abbas Araghchi, has unveiled a foreign policy agenda that signals a significant shift in the country’s diplomatic focus. Speaking before parliament, the 61-year-old former deputy foreign minister emphasised strengthening ties with China, Russia, and nations that have supported Iran through sanctions. He also highlighted the importance of emerging powers in Africa, Latin America, and East Asia. Araghchi stressed the need for regional integration, proposing closer infrastructure connections with neighbouring countries. Regarding Western relations, he suggested that improved ties with Europe would hinge on a change in their “incorrect and hostile” stance towards Iran. On US relations, Araghchi advocated for a strategy of managing hostility while working to alleviate sanctions. The nominee reaffirmed Iran’s commitment to Palestinian causes and regional resistance movements, including Hezbollah, against what he termed Israel’s “cruel and criminal” policies. (“Iranian president's FM pick says China, Russia among foreign policy priorities,” CGTN, 19 August 2024)
CHINA & EUROPE
Chinese envoy asks US and EU to buckle up their EV production, reports SCMP
On 17 August, SCMP reported on Chinese envoy asking the US and European Union to step-up their production for affordable electric vehicles if they want to justify their tariff imposition. At a climate change event, a Chinese ambassador Wu Peng said: “a leader in EV technology, solar energy and other new energy products – had played a big role in cutting harmful carbon emissions.” Wu further challenged the EU and the US, for imposing high tariffs on Chinese EVs, the Chinese diplomat also stated that in 2023, over half of the world’s newly installed renewable energy was from China accounting for about 38 per cent of total global investment. Additionally, on 12 June the European Commission announced it would impose additional tariffs of up to 38 per cent on imported Chinese electric vehicles from July 4, followed by a similar announcement made by the US to increase duties for Chinese EVs from 25 per cent to 100 per cent. (“Chinese envoy dares EU and US to ‘catch up’ in electric vehicles to justify tariffs,” South China Morning Post, 19 August 2024)
CHINA & THE AMERICAS
Exclusion of Chinese immigrants in 1800s American society ; Editorial in The World of Chinese
On 19 August, an editorial in The World of Chinese titled: “The Rocky History of Chinese Immigration in the American West,” noted the 31 October 1880 riots where 500 Chinese immigrants were cleared from their business and homes. This marked the end of Chinatown, but nearly a century and a half later, a project called Reimagining Denver’s Historic Chinatown was started by local Asian American associations, hoping to document the experiences of those who once called this part of the Rocky Mountains home. The California Gold Rush and the construction of the Transcontinental Railroad promised economic opportunities attracting Chinese immigrants who began arriving on US shores around 1849. Colorado was considered untouched land having the potential to bring untold wealth. Central City, a major gold mining area, proved a potent lure known as the richest place on Earth, eventually yielding almost 1 million ounces of gold extracted from its mines. Despite the local government recruiting Chinese labour, anti-Chinese agitation started. In addition, the Government stated California was already ruined by Chinese labour, and now Colorado was threatened with the same disaster. Denver’s Bloody Riot attracted nationwide attention, especially since it occurred two days before the 1880 presidential election, the lively Chinatown was decimated, and many Chinese residents in Denver were forced to rebuild their homes and businesses. Subsequently, after two years the Chinese Exclusion Act was passed in Washington, preventing Chinese immigrants from establishing their lives in America until 1943. (“The Rocky History of Chinese Immigration in the American West.,” The World of Chinese, 19 August 2024)
China Reader Daily Wire | 17 August 2024, Friday | Vol.1 No. 150
INTERNAL
Premier Li Qiang's comprehensive reform strategy for China's economic growth
On 16 August, Chinese Premier Li Qiang outlined a multi-pronged strategy to make the country’s economy strong so that the development goals fixed for this year can be realised at a State Council meeting. He added that there is an urgent need for structural reforms in the fiscal and taxation systems, market integration, and urbanisation. He also emphasised the necessity of a boost in domestic demand by increasing the scope and quality of service consumption. Li called for more use of government funding to spur investment in support of private sector initiatives and to increase local government special bonds. He called on the smooth communication of the government with enterprises to timely iron out difficulties. Li also called for the establishment of “new quality productive forces” adapted to local conditions and asked for support for newly developing technologies. The Premier called for high-standard opening up to the outside world, soliciting foreign investment, improving living standards and boosting the income of residents. Li put a particular emphasis on law-based governance that can hold its weight for the maintenance of market order and spur innovation in all fields. (“Chinese premier stresses solid work to meet annual development goals,” CGTN, 16 August 2024)
INTERNAL
China’s visa-free policies to promote international tourism, reports Global Times
On 15 August, Global Times reported that China’s newest visa-free policies have been associated with a notable inflow of foreign visitors, as officially released data shows promising growth in international travel. According to the country’s border inspection agencies, it has recorded big inflows of traveller numbers at many points of entry. For instance, Shanghai’s airports handled more than 4.75 million travelers since 01 July. Mohan in Yunnan Province also recorded a 153.71 per cent increase year on year in the number of foreign visitors. According to the National Immigration Administration, the country saw 14.64 million foreign visitors in the first half of 2024, a surge of 152.7 per cent compared with the same period in the previous year. Of these, 8.54 million came via visa-exemption programs, up by 190.1 per cent year on year. To still further push for tourism, it has also extended its 144-hour visa-free transit policy to more entry points, now totalling 37. Streamlining policies for entry at borders and improving the consumption environment for tourists are also changes that will make a difference. According to a recent survey, 86 per cent of foreign tourists considered the payment experience in China more convenient, and most of these tourists used mobile payment methods. (“China’s expanding visa-free ‘circle of friends’ draws more global travelers,” Global Times, 15 August 2024)
EXTERNAL
China warns against disruptive defence cooperation in South China Sea
On 16 August, China’s Ministry of National Defense expressed concern over recent military activities in the South China Sea involving the United States, Japan, and the Philippines. According to spokesman Zhang Xiaogang, these countries are “stirring up troubles” in the region. He particularly singled out the case of the US’s half a billion military aid to the Philippines and the combined drills between Japan and the Philippines. In this regard, Zhang accused the Philippines of “inviting wolves into the house” with these powers, which, according to him, other regional countries view negatively. The spokesperson said that China has “indisputable sovereignty” over the Nanhai Zhudao and adjacent waters and will take “legitimate countermeasures” against provocations that will threaten its integral territory. The ministry stressed that defence cooperation between nations shall not be aimed at third parties or jeopardise regional peace, a statement that signalled Beijing’s stance in maintaining stability in the contested waters. (“China's defense ministry: Third party should not be targeted in defense cooperation,” CGTN, 16 August 2024)
China’s youth face grim job market amid economic slowdown, says an editorial in Business Standard
On 16 August, an editorial in Business Standard reported that young job seekers in China are in a dreadful time in the hunt for employment. Newly released figures from the country’s statistics bureau indicate that the jobless rate for 16- to 24-year-olds, excluding students, surged to 17.1 per cent last month from 13.2 per cent in June. It is at its highest since December 2023, when the methodology changed. Slow growth in the USD 19 trillion economy has made employers cautious about hiring, even as the market was flooded with around 12 million new graduates this summer. Careers as far-flung as county-level positions in remote rural areas have drawn candidates from elite universities, a sign of how desperate things have become. Little better are other age groups, such as the 6.5 per cent unemployment rate for 25- to 29-year-olds and the 3.9 per cent for those aged between 30-59. The manufacturing sector, a traditionally solid source of employment, portends little progress in that respect. Its employment sub-index has not grown since February 2023. (“China's youth jobless rate climbed to 17.1% in July as hiring held off,” Business Standard, 16 August 2024)
ENERGY & ENVIRONMENT
China accelerates hydrogen energy development, reports CGTN
On 16 August, CGTN reported that China is pushing forward efforts to promote hydrogen energy as a major part of its sustainable and low-carbon economy. Several provinces, such as Shaanxi, Shandong, Sichuan, and Inner Mongolia, have rolled out policies to be exempt from expressway tolls with hydrogen-powered vehicles, reducing operational expenses to help push the industry forward. However, North China Electric Power University’s Liu Jianguo said: “active government guidance and nurturing are essential for the rapid development of this industry.” Exemptions from tolls would reduce the operating cost of fuel-cell trucks by 25 per cent, making them more competitive with diesel alternatives. Ambitious plans by China include putting 50,000 hydrogen fuel-cell vehicles on the road by 2025. Some projections of hydrogen energy consumption might reach as high as 86 million tonnes in 2060, equivalent to an industry worth 4.6 trillion yuan. The Chongqing Institute of New Energy Storage Materials and Equipment's Wang Jingfeng said: “The potential for hydrogen energy is vast, yet we face the challenge of developing safe and cost-effective methods for hydrogen storage and transportation.” These are exactly the challenges ongoing research into magnesium-based battery materials and hydrogen storage technologies hopes to overcome. (“Hydrogen sector gets policy catalysts for China's low-carbon shift,” CGTN, 16 August 2024)
China’s clean energy surge, says an editorial in The Guardian
On 16 August, an editorial in The Guardian reported that an unprecedented expansion of clean energy in China is altering its power sector and offers the prospect of global implications for climate change mitigation. This year, just in the first half of 2024, China added as much new clean energy generation as the total UK production in the same period last year. This spurt in renewable energy has meant that overall, in July, coal and gas electricity generation was cut by 5 per cent compared with the previous year. the director of the China Climate Hub Li Shuo said: “China is leading against all its competitors when it comes to green technology.” Projections indicate solar power could overtake coal as China's primary source of energy by 2026 after a record 293GW of wind and solar power was installed by the country in 2023. At the same time, concrete data have given space for speculation that China's greenhouse gas emissions may have already peaked. An analyst at CREA Qi Qin said: “If renewable energy continues to displace coal power generation, 2024 emissions could continue to decrease, potentially making 2023 the peak year for China's emissions.” However, coal still provided 60 per cent of China’s power in 2023, and new coal-fired plants keep getting switched on. (Fiona Harvey, “China adds new clean power equivalent to UK’s entire electricity output,” The Guardian, 16 August 2024)
OUTERSPACE
China launches new cluster of remote sensing satellites
On 16 August, a new cluster of remote sensing satellites was successfully launched by China into orbit, taking another step-in space technology. The Yaogan-43 01 Group was launched into the orbit of space using a Long March-4B rocket from the Xichang Satellite Launch Center in Sichuan province. The mission, at 1535 hours Beijing time, was the 531st launch of the Long March rocket series. These satellites will primarily be placed to test new technologies for developing innovative low-orbit constellations. The launch symbolises continued advancement by China into space, where it continues to enhance its satellite network for a myriad of applications, including Earth observation and communication systems. (“China launches new remote sensing satellite group,” Xinhua, 16 August 2024)
CHINA & TAIWAN
China warns Japan to not interfere in Taiwan issue, says an editorial in VOA
On 16 August, an editorial in the VOA reported that China issued a strong warning to Japan, declaring it may “pay a heavy price” if it interferes in Beijing’s plans for Taiwan. It comes after a recent visit to Taiwan by a group of Japanese lawmakers, including former Defence Minister Shigeru Ishiba. During the visit, Ishiba stated that more deterrence against Chinese aggression was necessary to keep peace in the Taiwan Strait. Taiwan’s President Lai Ching-te said essentially the same thing, emphasising the desire to both bolster national defence and solidify economic defences. The diplomatic tension is taking place under changed Japanese defences. The government of Prime Minister Fumio Kichida is set to nearly double defence spending by 2027 as regional threats increase from China, Russia, and North Korea. Interestingly, Ishiba currently leads public approval polls of potential LDP leadership and is considered a possible candidate for Japan’s next prime minister. His stance on Taiwan and regional security could create something of a sea change in Japan’s future foreign policy. The warning is not the first of its kind from China. It issued similar statements earlier this year after reports that Japan’s military exercises had named China as a hypothetical enemy. (Yang An, “China warns of ‘heavy price’ for Japan after lawmakers visit Taiwan,” VOA, 16 August 2024)
Taiwanese hotel chain faces boycott over refusal to hoist Chinese flag
On 16 August, SCMP reported a Taiwanese hotel chain faced boycott calls from mainland China after an alleged incident in which its Paris location is said to have refused to fly the Chinese national flag during the Olympics. Blogged videos of the incident have gone viral and spurred outrage on Chinese social media sites. Media from the mainland, like Beijing Daily’s social account, had started demanding boycotts of Evergreen Laurel and its mother company. The case has tapped into the heated relations involving Taiwan and China, where the latter views the former to be part of its territory. A Taiwan official, Liang Wen-chieh denounced the resort of using nationalism to disrupt business. A Taiwanese businessman working in China expresses his worries over the incident’s influence on cross-strait relations. An apology was later sent by the Shanghai branch of Evergreen Laurel for peaceful development between the two sides. This incident comes amidst consumer boycotts in China against firms that are perceived to offend nationalist sentiments. The hotel’s website afterwards was changed to list locations by city and not by country, amid accusations of not recognizing Taiwan as part of China. (Yuanyue Dang, “Mainland Chinese urged to boycott Taiwanese hotel chain that refused to fly flag in Paris,” South China Morning Post, 16 August 2024)
CHINA & SOUTHEAST ASIA
9th Lancang-Mekong cooperation meeting to strengthens regional ties
On 16 August, the Ninth Lancang-Mekong Cooperation Foreign Ministers’ Meeting in Chiang Mai, Thailand, hosted foreign ministers of China, Cambodia, Laos, Myanmar, Thailand, and Vietnam. Chinese Foreign Minister Wang Yi stressed that the mechanism played a big role in safeguarding regional stability and promoting common prosperity. He put forward a four-point plan, with peace, innovation, interconnected development, and cultural exchanges at the forefront. The participants appreciated the rapid developments exhibited by LMC and support from China through the Special Fund in prompting efforts to shorten the development gaps and support the ASEAN process. The joint statements made covered water resources, clean air, and cross-border crime. There was another report on implementing the action plan published after five years. Wang Yi said that deepened reform and modernisation in China were willing to bring new opportunities for global development. The ministers promised to expand cooperation in connectivity, innovation, and food security. (“LMC foreign ministers meet in Thailand, agree on closer connectivity, cooperation,” CGTN, 17 August 2024)
China agrees to combat cross-border crimes with neighbours, reports CGTN
On 17 August, CGTN reported that the Ministers of Foreign Affairs of China, Laos, Thailand and Myanmar had jointly discussed cross-border crime. The discussion took place on the occasion of the Informal Discussion between the Permanent Secretary for Foreign Affairs of Thailand and the Minister of Foreign Affairs for China, Laos and Myanmar; at Chiang Mai in Thailand. At the meeting, the agenda agreed upon included strengthening cooperation between the four nations, and increasing efforts to combat cross-border crimes like online gambling and drug trafficking; in order to maintain the peace and stability of the region, Chinese Minister of Foreign Affairs Wang Yi stated that cross border crimes such as online gambling and telecom fraud remained prevalent in the region, posing a risk to peoples’ lives as well as societal stability and national image. Wang believed only joint efforts by countries could reduce these crimes, citing the China-proposed Global Security Initiative which had received positive responses from Laos, Thailand and Myanmar as an example. Wang informed that the four nations had jointly arrested over 50,000 people involved in gambling and fraud last year, and called for greater border controls to tackle the issue. Other key measures called for by Wang include the smooth exchange of information and intelligence, continued repatriation of lawless people and enhancing governance capacity. Wang also encouraged holding a ministerial meeting on law enforcement and security cooperation in the Lancang-Mekong region. ( “China, Laos, Myanmar, Thailand agree to step up joint efforts to combat cross-border crime,” CGTN, 17 August 2024)
China promises resolute action against Philippines, reports SCMP
On 16 August, SCMP reported that the Ministry of Foreign Affairs of the People’s Republic of China had promised ‘resolute and strong measures’ against the Philippines in the Sabrina Shoal dispute. In the past few months, tensions over Sabina Shoal, an island controlled by the Philippines but claimed by China have escalated. The Philippine Coast Guard has deployed its flagship BNP Teresa Magbanua on the shoal since April and China has sent its own ships to keep watch. Spokesperson for the Chinese Ministry of Foreign Affairs, Lin Jian accused the Philippine ship deployed of infringing upon China’s sovereignty. Lin also alleged the Philippines was violating the DOC or Declaration on the Conduct of Parties in the South China Sea, a non-binding principle signed between China and the Association of SouthEast Asian Nations (ASEAN) in 2002 to maintain peace in the South China Sea. Lin further stated that China had raised its objections with the Philippines through diplomatic means, and would take resolute and strong measures to protect its territorial sovereignty and maritime rights. The Ministry of National Defence of the People’s Republic of China also reaffirmed China’s sovereignty over the islands in a statement, promising countermeasures against infringements. (Liu Zhen, “China vows ‘strong measures’ against Philippines over encroaching ships in South China Sea ,” South China Morning Post, 16 August 2024)
CHINA & EUROPE
Germany’s sales to China fell by 2.7 per cent, reports Reuters
On 16 August, Reuters reported that German exporting companies had sold more goods to Poland than China in the first half of 2024. The Committee on Eastern European Economic Relations (OEA), a business lobby group promoting trade between Germany and Eastern Europe, revealed data showing that German goods exports to Poland grew by 4.6 per cent to 48.6 billion EUR in the first six months of 2024. At the same time, exports to China fell by 2.7 per cent to 48.2 billion EUR. Poland is now the fourth most important market for German exporters, while China stands at fifth. The increase in exports is a success for German companies who have been attempting to reduce their dependence on the Chinese market, amidst tensions between the West and China. Chairperson of the OEA, Cathrina-Claas Muehlhaeuser hailed it as success for the diversification of the German economy. According to her, Eastern European nations now account for almost 19 per cent of the export-oriented German economy. ( Rene Wagner, “Poland overtakes China as sales market for German products,” Reuters, 16 August 2024)
China Reader Daily Wire | 16 August 2024, Friday | Vol.1 No. 149
SCIENCE & TECHNOLOGY
Chinese EV maker Zeekr claims to have the fastest battery charger
On 14 August, Zeekr, a Chinese electric vehicle manufacturer, announced a ground-breaking advancement in EV battery technology. The company claimed its latest battery technology can charge from 10 per cent to 80 per cent capacity in 10.5 minutes when used with ultra-fast charging stations, outperforming top brands like Tesla and BYD. This technology will debut in Zeekr’s 2025 007 sedan next week. These experts viewed these claims as credible, stating they underscore how intensely EV market competition is taking off in China. Sino Auto Insights’ Tu Le said: “Tesla’s charging technology is not industry-leading anymore, and it hasn't been for some time.” The new batteries also work well at lower temperatures, allowing rapid charging at temperatures as low as -10 degrees Celsius. Zeekr’s breakthrough comes amid growing international alarm over the rise of Chinese EVs. The Biden administration just announced a 100 per cent border tax on Chinese EVs, citing unfair policies and job protection. It reflects broader concerns in big car markets about the very rapid global expansion of China’s EV companies. Despite these challenges, Zeekr’s technological leap shows the dynamic nature of the EV industry and China's significant role in driving innovation. (João da Silva, “China firm claims world's fastest-charging EV battery,” BBC, 14 August 2024)
CHINA & THE MIDDLE EAST
China’s UN representative call Houthis to respect maritime international law
On 15 August, China’s Deputy UN representative, Geng Shuang, addressed the Security Council on Yemen, emphasising the need for Houthis to respect international maritime law in the Red Sea. He welcomed recent progress between Yemen’s government and the Houthis but warned that further dialogue was required to secure a political solution. Geng supported UN mediation efforts in the row and demanded international aid to help alleviate Yemen’s humanitarian crisis. He emphasised the connection between Yemen's situation with the Gaza conflict, advocating the implementation of recent UN resolutions to achieve a ceasefire and de-escalation across the region. Geng said: “China, once again, calls on the Houthis to respect the rights of navigation of all merchant ships in the Red Sea in accordance with international law.” He also pressed for the release of detained UN staff in Yemen. China vowed to pursue a political solution to the Yemen crisis and greater Middle East stability. (“Chinese envoy reiterates call for Houthis to respect rights of navigation in the Red Sea,” CGTN, 16 August 2024)
INTERNAL
Xi Jinping outlines comprehensive reform strategy for Chinese modernisation, reports CGTN
On 15 August, CGTN reported on the Chinese President Xi Jinping’s explanation of the CPC Central Committee’s resolution on deepening reform that will be published in Qiushi Journal. The explanation identifies four key issues; deepening reform to advance Chinese modernisation which is gathering mighty strength for the Party’s work at the centre, perfecting the socialist system with Chinese characteristics, fostering high-quality development, and protecting against major risks and challenges. Xi outlined five principles in the draft resolution on the fifth plenum, which relate to upholding tested experience, problem-oriented, prioritising institutional and strategic readjustments, a people-centered approach, and integrated planning of all sectors. It has the salient features of strengthening the emphasis on economic structural reform, innovation mechanisms, comprehensive promotion of reform and development, balancing security, and strengthening Party leadership over the reform process. This is for the holistic modernisation of the governance system and capacity of China, to meet the requirements laid down by society while facing its challenges. (“Xi Jinping's explanation of key reform resolution to be published by Qiushi Journal,” CGTN, 15 August 2024)
China to screen foreign arrivals with mpox symptoms, reports SCMP
On 16 August, SCMP reported that China would begin screening overseas arrivals who exhibit symptoms of mpox. The General Administration of Customs of the People’s Republic of China issued a statement that people in contact with mpox cases or showing symptoms of the disease should make a declaration upon entering China. All aircraft and vessels arriving from mpox-affected regions must comply with the health processing measures. This marks the fourth time the customs office has issued a mpox screening policy and the first time in 2024. The screening measures will last for six months, and the list of affected countries will be updated in line with information from the World Health Organization (WHO). Mpox, which is usually spread through contact with wild animals; is classified as a Class B infectious disease by the National Health Commission. ( Jun Mai and Zhao Ziwen, “ China to screen arrivals showing mpox symptoms as cases spread outside Africa,” South China Morning Post, 16 August 2024)
China’s AI-powered electronic warfare capabilities raise strategic concerns in the Pacific, says an editorial in SCMP
On 16 August, an editorial in the South China Morning Post reported that a high-performance AI system developed by Chinese researchers can now detect coordinated military radar signals across the Pacific, from the South China Sea to Alaska. This is a significant advancement in Chinese electronic warfare intelligence gathering, headed by Zhou Changlin’s team. The AI sifts through complex signal data, which is collected by numerous platforms, recognising patterns indicative of tactical coordination among foreign radars. It effectively extends China’s reach deep into areas of strategic concern to the US, such as Guam and the Marshall Islands. The ability to process massive amounts of data far surpasses that of more traditional means, offering invaluable insights to combat units. Zhou and his team added that the AI can also predict future naval deployments and detect unknown forms of radar. The breakthrough comes as both China and Russia have increased military activities near US territories, with recent reports of warships approaching Alaska and Guam. (Stephen Chen, “China’s military AI detects secret radar links between South China Sea, Alaska, and Guam,” South China Morning Post, 16 August 2024)
ENERGY & ENVIRONMENT
China to impose limits on critical mineral export citing antimony, reports Reuters
On 15 August, Reuters they are reported that China has announced export limits on critical mineral over antimony as it cites national security concerns. As the world’s leading supplier, at 48 per cent of global mined output in 2023, the implications are huge for international markets and military uses. A mining strategist Christopher Ecclestone said: “This will put a real squeeze on the US and European militaries.” The curbs, which take effect from 15 September, cover six antimony-related products and ban the export of some technologies without permission. It comes after the previous Chinese bans on exports of rare earth magnets, graphite, gallium, and germanium. Markets are already feeling the move, with antimony prices at record highs and the share price of Chinese producers surging. In response, countries like the US are accelerating initiatives to break dependence on Chinese supplies. Pentagon-backed Perpetua Resources is working on a plan to fast-track the production of antimony in the US. Although China dominates the refined market in antimony, it relies on concentrates from nations including Thailand, Myanmar, and Russia. Project Blues’s Jack Bedder stated that the global antimony market is tightening, with “a lack of concentrate feedstock” at the heart of the problem. (“China to limit antimony exports in latest critical mineral curbs,” Reuters, 15 August 2024)
CHINA & TAIWAN
Beijing’s hardening stance on Taiwan creates unease, says an opinion in BBC
On 16 August, an opinion in BBC looked into China’s latest legal moves against “die-hard” Taiwanese independence activists have sent ripples of shock through the Taiwanese community, both in China and at home. The Supreme Court’s decision to allow life imprisonment and even the death penalty for those backing Taiwanese independence has engendered fear and uncertainty. The op-ed cited Taiwan’s Academia Sinica’s Professor Chen Yu-Jie said: “The line is now very unclear,” referring to the vagueness of these new regulations. Chinese authorities assure everyone that these measures are aimed at only a small group, but many Taiwanese are not taking any chances. The visible effects of this are that the Taiwanese population in China has dropped from over 400,000 in 2009 to 177,000 in 2022. The reasons for this include a slowing economy and COVID-19 lockdowns but rising political tension is also a big factor. However, a tech billionaire and independence supporter, Robert Tsao, believes these measures might backfire: “This new ruling is helping people like me,” suggesting it could strengthen Taiwanese resolve against China’s claims. (Rupert Wingfield-Hayes, “China's rhetoric turns dangerously real for Taiwanese,” BBC, 16 August 2024)
CHINA & SOUTHEAST ASIA
China and Cambodia affirm “iron-clad friendship” at the 9th Lancang-Mekong Cooperation meeting
On 15 August, Chinese Foreign Minister Wang Yi and Cambodian Deputy Prime Minister Sok Chenda Sophea met in Thailand to deepen bilateral relations and discuss regional cooperation. Wang stated that China would work with Cambodia through frequent high-level interactions and practical cooperation, stressing that their relationship is an “iron-clad friendship” and that Cambodia is one of the priorities of China’s diplomacy with its neighbours. Ministers also commended joint efforts against transnational crime and vowed to further enhance joint efforts on gambling and fraud fights. According to Wang, since 2016, the Lancang-Mekong Cooperation (LMC) mechanism has also greatly contributed to improving regional development and well-being. Chenda Sophea acknowledged China’s role in maintaining regional stability and its potential to benefit neighbouring countries. Wang voiced that China was prepared to cooperate with Cambodia and all other countries in pushing forward the development of the Indo-China Peninsula through the LMC, covering such areas as connectivity, production capacity, economic cooperation, water management, and poverty reduction. (“Wang Yi calls for high-quality China-Cambodia cooperation,” CGTN, 15 August 2024)
China and Laos agree to strengthen ties at the Lancang-Mekong Cooperation
On 15 August, at the Lancang-Mekong Cooperation (LMC) the Chinese Foreign Minister Wang Yi and his Lao counterpart, Deputy Prime Minister Saleumxay Kommasith, reaffirmed the strong bilateral relationship their countries have shared. Wang pointed to increasingly extending trade, increasing railway capacity, and closer international cooperation between China and Laos. He pledged support for Laos’ development path and its role in chairing ASEAN. Wang noted that China was ready to deepen cooperation, particularly in maximising the gains from the China-Laos Railway. According to Saleumxay, the cooperation of China played a significant role in Laos’ socio-economic development. He also stated that it was ready to implement the consensus reached by both nations’ leaders to further deepen bilateral cooperation in various fields. At the meeting, the situation in Myanmar was also discussed, with Wang stating China’s support for ASEAN’s engagement with Myanmar and efforts in lining up ASEAN’s Five-Point Consensus with Myanmar’s new roadmap. Saleumxay highly valued China’s positive role in promoting Myanmar’s peace talks and national reconciliation and expressed Laos’ readiness to work with China in support of the process for the stabilisation and development of Myanmar. (“Wang Yi meets Lao Foreign Minister Saleumxay Kommasith in Chiang Mai,” CGTN, 15 August 2024)
CHINA & EUROPE
China and Vatican discuss peace plan for Ukraine, reports SCMP
On 15 August, SCMP reported that the governments of the People’s Republic of China and the Vatican City State held talks for a peace plan for Ukraine. The talks occurred through a call between Pope Francis’ Special Envoy to Ukraine Cardinal Matteo Zuppi and Special Representative of the Chinese Government on Eurasian Affairs Li Hui. According to the Ministry of Foreign Affairs of the People’s Republic of China, the call took place at Zuppi’s invitation, and he had taken the Chinese government for its efforts towards peace and its plan for Ukraine. The discussion comes in the background of a Ukrainian incursion into the Kursk region of Russia. China which has taken an officially neutral stance in the war; has projected itself as an intermediary for talks between Russia and Ukraine. Li has been trying to gain global support for its six-point plan to end the Ukraine war, which includes a ceasefire and a negotiated settlement. According to China, 26 countries have supported the plan and over 100 have received it favourably. Nevertheless, suspicion over China’s intentions has lingered, due to its close ties with Russia. Zuppi has carried out his own peace missions, meeting the President of Ukraine, Volodymyr Zelenskyy, and top advisors to the President of Russia, Vladimir Putin. ( Kawala Xie, “China and Vatican discuss Ukraine peace plan as Russia continues to lose ground,” South China Morning Post, 15 August 2024)
CHINA & THE AMERICAS
China-Brazil ties showcase South-South cooperation, says an editorial in Global Times
On 15 August, Global Times published an editorial on the significance and prospects of relations between the People’s Republic of China and the Federative Republic of Brazil. The editorial was written on the occasion of 50 years of diplomatic ties between the two nations. The editorial notes how cooperation between China and Brazil goes beyond diplomatic matters, owing to their position as developing countries and significant emerging markets. The author stated that China and Brazil have moved towards being a community with a shared future and cooperation in different sectors, with China being Brazil’s largest trading partner for the past 15 years. The editorial cites examples like Brazil’s exports to China in 2023 being worth 104 billion USD, Brazilian exports of soybean, corn, meat entering the Chinese market, China aiding Brazil’s agricultural modernization through sending machinery such as harvesters and drones for pesticide spying. Both Brazil and China are natural allies seeking a multipolar world order, according to the editorial. It is further noted that there is scope for more improvement in bilateral ties. The editorial provides China’s Belt and Road Initiative (BRI) as an initiative that can be mutually beneficial for both nations. It states that in an era of global unilateralism, the “Global South” must take the initiative towards fostering global cooperation and development. The editorial concludes with the belief that China-Brazil relations will continue to provide more benefits for its citizens and bring peace and stability to the world. (“ China-Brazil ties show the broad prospects of South-South cooperation,” Global Times, 15 August 2024)
China Reader Daily Wire | 14 August 2024, Wednesday | Vol.1 No. 148
CHINA & SOUTHEAST ASIA
Chinese Foreign Minister’s to visit Myanmar and Thailand, reports Global Times
On 13 August, Global Times reported that Chinese Foreign Minister Wang Yi is set to visit Myanmar and Thailand. The visit will focus on the strengthening of regional ties under the Lancang-Mekong Cooperation framework. The LMC was established in 2016, and since then, it has been assisting in the promotion of economic and social progress among its six member countries. Wang will co-chair the Ninth LMC Foreign Ministers’ Meeting and hold bilateral talks with the foreign ministers from Laos, Myanmar, and Thailand. China aims to turn the Lancang-Mekong region into “an exemplar for high-quality Belt and Road cooperation” and advance multiple global initiatives. Wang said he will seek to further enhance relations with Myanmar while standing by China’s foreign policy of non-interference in other countries’ internal affairs. (“Wang Yi to visit Myanmar, Thailand amid tensions in South China Sea,” Global Times, 13 August 2024)
EXTERNAL
OPEC adjusts oil demand forecast over decreased Chinese consumption, says an opinion in Forbes
On 12 August, an opinion piece in Forbes stated that OPEC has slightly lowered its 2024 global crude oil demand forecast in its latest monthly report, citing China’s slowing economic growth. This matches the actual statistics of early 2024 and the softening expectations for Chinese oil demand. The cartel has now revised down its forecast to 1.78 million bpd of growth in 2025. Even with these downward revisions, OPEC's current forecasts remain well above those of the IEA and EIA. The organisations optimism is based on expectations of stronger global economic growth later in 2024. However, recent stock market volatility may signal slower growth, potentially leading to further forecast adjustments. All these events placed the OPEC+ alliance in a difficult situation after it agreed to extend production cuts. The non-OPEC+ countries led by the US continued to boost their output, with American production hitting another record of 13.4 million bpd. This scenario could pressure OPEC+ to reconsider its strategy if global demand doesn't meet expectations. (David Blackmon, “Slowing Chinese Growth Has OPEC Spooked, But Only A Little,” Forbes, 12 August 2024)
INTERNAL
Chinese State Council and Central Military Commission announced military subsidies, reports CGTN
On 14 August, CGTN reported that China introduced a new scope of military subsidies and benefits that will take effect starting 01 October. The State Council and Central Military Commission jointly issued these revisions to ensure service members receive their entitled support. This will match benefits with contribution levels and adjust standards with socio-economic progress. They specify the scope of subsidies, management duties, and financial responsibilities at the respective government levels. The simplified procedures for the delivery of benefits are equally clear. This is the third amendment since 2004, which reflects that Beijing is committed to its armed forces. By improving these mechanisms, China aims to stimulate its military personnel and enhance defence capabilities in pace with comprehensive national development. (“China revises regulations on military personnel's subsidies, benefits,” CGTN, 14 August 2024)
SCIENCE & TECHNOLOGY
Huawei set to launch AI chips comparable to banned Nvidia H100, reports Wall Street Journal
On 13 August, Wall Street Journal reported that Huawei Technologies is reportedly on the verge of launching a new AI chip, the Ascend 910C, to rival American Nvidia's H100 in China. This move has come when US sanctions are restricting Nvidia from selling its advanced chips to Chinese customers. Major Chinese tech giants including ByteDance and Baidu, as well as China Mobile, are among those testing the 910C. Huawei says its performance should be comparable to that of the H100. It is most likely to begin shipment as early as October to fill the gap left by the US restrictions. Based on the preliminary negotiations there is a possibility orders could amount to more than 70,000 chips at a value of approximately USD 2 billion. While Nvidia has introduced China-specific chips with reduced capabilities, Huawei’s new offering could reshape the AI chip landscape in the Chinese market. (“Huawei readies new AI chip to challenge Nvidia in China, WSJ reports,” Reuters, 13 August 2024)
CHINA & TAIWAN
Chinese authorities freed Taiwan fishers seized last July, reports SCMP
On 13 August, the South China Morning Post reported that recent developments show an improvement of tensions regarding fishing issues between China and Taiwan. Mainland authorities freed four crew members from a Taiwan fishing boat that was seized in July. The captain of the boat is in mainland custody and is under investigation. The detained boat, Da Jin Man 88, was detained at Quemoy for allegedly breaking the fishing regulations. This incident is part of the string of disputes since February when two fishermen from the Chinese mainland died in a chase by Taiwan’s coastguard. The impasse, which had lasted for months, recently saw both sides sign an agreement that includes compensation from the February incident, the return of bodies, and vessels. The latest rare direct communication between Beijing and Taipei since 2016 has also freed a former Taiwanese military officer who was detained on the mainland for five months. (Seong Hyeon Choi, “Mainland China returns Taiwanese fishing boat and 4 crew; captain held for investigation,” South China Morning Post, 13 August 2024)
Chinese religious tourists in Taiwan heavily surveilled, reports SCMP
On 13 August, an editorial in the South China Morning Post reported that a recent visit by mainland Chinese religious devotees to Taiwan has raised controversy about how the island handles its dealings with cross-strait relations. A group of them were reportedly studying the remnants left by 17th-century commander Koxinga but received unprecedented surveillance by Taiwanese security agents during their tour. The visit raised concerns on obstruction of people-to-people exchanges and religious freedom. Opposition legislator Lai Shyh-bao criticised government actions as “hamper individual and religious exchanges” and not benefiting cross-strait relations. Contrastingly, earlier spokesperson of Taiwan's Mainland Affairs Council Liang Wen-chieh had warned that the Chinese Communist Party is weaponising folk religion as part of “united front tactics.” This has its religious leaders like Lin Chun-lin on the offensive already upset with the statement and calling it “distressing” and “infuriating.” (Lawrence Chung, “Taiwanese security forces accused of trailing mainland Chinese religious group,” South China Morning Post, 13 August 2024)
Former Chinese naval captain indicted in Taiwan for illegally entering Taiwan
On 14 August, A 60-year-old former Chinese navy captain surnamed Ruan is set to be indicted in Taiwan for illegally entering the island by boat. Prosecutors said there was “no military or national security involvement” in his case. Ruan is one of 18 recent Chinese defectors who reportedly admired Taiwan’s “democratic way of life.” However, the authorities are still wary, as these could be testing Taiwan’s defences. The case has emerged amid growing tensions between Beijing and Taipei. In recent months, several fishing boat cases have exacerbated tensions as in July, Chinese authorities seized one Taiwanese vessel. While the four crew members in the vessel were repatriated, the captain of that fishing boat is still in detention. The Mainland Affairs Council of Taiwan has requested Beijing to release the captain and the vessel. (“Chinese Ex-naval Captain Charged With Illegally Entering Taiwan,” Barron’s, 14 August 2024)
CHINA & SOUTH ASIA
China-built hydropower project successfully connects to grid, reports Global Times
On 13 August, Global Times reported that the first unit of the Chinese-built Suki Kinari hydropower project in North Western Pakistan was connected to the power grid. The project was initiated as a part of the China Pakistan Economic Corridor (CPEC), and aims to provide clean and affordable electricity to over a million households in Pakistan. Construction began in January 2017, and has seen investments of about 1.962 billion USD. Chinese experts believe that this is a milestone in China-Pakistan cooperation, and shows how China has helped in Pakistan’s sustainable development. Director of the Centre for South Asia Studies at the Shanghai Institutes for International Studies Liu Zongyi said, “Helping Pakistan deal with its energy shortage has been an important task under the development of the CPEC since the beginning. The hydropower station offers an alternative choice to resolve many of these problems due to its ecologically friendly, affordable and sustainable nature.” Director of the Research Department at the National Strategy Institute at Tsinghua University Qian Feng believes the launch will ease Pakistan’s electricity crisis, and boost living standards and economic developments. (“China-built landmark hydropower project connects to grid, another milestone for China-Pakistan Economic Corridor, despite Western media’s smears,” Global Times, 13 August 2024)
CHINA & THE PACIFIC
China offered opportunity to rebuild trust with Fiji, says an editorial in SCMP
On 14 August, an editorial in SCMP on China’s desire to improve security ties and restore trust with Fiji. Looked into the ten-day visit by Prime Minister of Fiji Sitiveni Rabuka the opportunity offers a chance to rebuild ties; which were damaged after a controversial policing agreement which allowed Chinese police officers to be stationed in Fiji. The agreement had been reviewed by the Fiji Government last year, with Rabuka saying: “If our systems and values differ, what cooperation can we get from them?” While the agreement was upheld, Chinese officers were no longer allowed to be deployed inside Fiji. Ministry of Foreign Affairs of the People’s Republic of China spokesperson Mao Ning stated that China hoped the visit would bring the partnership with Fiji to “a new level”, and “build an ever-closer community.” Researcher at the Australia-China Relations Institute, University of Technology Sydney, Corey Bell stated that China might push for greater security cooperation over the course of Rabuka’s visit. Bell said: “Beijing belatedly realized they were a bit insensitive and heavy-handed in prosecuting their policing agreements in Fiji.” According to Bell, Fiji represented China’s “biggest failure” in the Pacific, and Rabuka’s visit offered an opportunity to win back that trust. Additionally, Bell felt that China might convey its desire that Fiji be more sensitive to China’s security issues such as Tibet and Taiwan, hoping that other Pacific Island nations would follow its lead. Associate Professor in Security Studies at Massey University, Anna Powles stated that despite problems in China-Fiji relations since Rabuka took office, agreements on areas like climate and health could be reached during the visit. Bell suggested China’s new outreach towards the Pacific Island nations was an attempt to change its previous aid and development model, which had proved to be unsustainable. He felt that China was working on a new plan towards the region. (Dewey Sim,” Fiji leader’s visit gives China chance to restore trust after ‘biggest failure’ in Pacific,” South China Morning Post, 14 August 2024)
CHINA & EAST ASIA
Radioactive water leak detected in Fukushima, reports CGTN
On 14 August, CGTN reported that a leak of 25 tonnes of radioactive water was detected at the Fukushima nuclear power plant. The leak was found within the spent nuclear fuel cooling pool of Reactor 2 at the Fukushima Daiichi Nuclear Power Plant belonging to Tokyo Electric Power Company Holding Inc. (TEPCO). TEPCO stated that the cooling system for the nuclear fuel remains operational and the nuclear-contaminated water has not breached the plant’s containment. The company also plans to utilize robotic equipment to discover the precise location of the leak, as well as the reason why it occurred. The leak comes after a TEPCO announcement on 09 August that equipment related to the spent fuel pool of Reactor Unit 2 had malfunctioned, which resulted in the cooling system for the spent fuel pool being stopped as a precautionary measure. Subsequently, investigations were opened into the cause of malfunction. ( “Fukushima nuclear-plant detects 25 tonnes of radioactive water leak,” CGTN, 14 August 2024)
CHINA & EUROPE
Estonian Defence Minister sceptical of China’s claims of accidently damaging the pipeline, reports SCMP
On 14 August, SCMP reported that Estonian Minister of Defence Hanno Pevkur doubted the Chinese claim that a Chinese ship accidentally wrecked a Baltic pipeline last year. Pevkur’s assertion comes after a SCMP report on 12 August, stating that Chinese authorities had admitted the “Balticonnector” pipeline between Estonia and Finland was accidentally damaged by a Chinese ship. Pevkur said: “Personally, I find it very difficult to understand how a ship’s captain could fail to notice for such a long time that its anchor had been dragging along the seabed, but it is up to the prosecutor’s office to complete the investigation.” Pevkur also believed that China would not pay for the repairs which cost EUR 35 million. Both the governments of Estonia and Finland have initiated a joint criminal inquiry centred on the “NewNew Polar Bear” container ship, owned by Chinese shipping firm, NewNew Shipping Line. Both Finland’s National Prosecution Authority and the Office of the Prosecutor General in Estonia have requested China to comply with the joint inquiry, and submitted a legal aid request to China to gather evidence from the vessel and its crew. A spokesperson for the Office of the Prosecutor General from Estonia, Kairi Kungas said: “In order to execute the legal aid request, the Chinese authorities can carry out the investigative operations by themselves or involve Estonian investigators.” ( Finbarr Bermingham, “Estonian defence minister doubts China’s claim pipeline damage was accidental,” South China Morning Post, 14 August 2024)
CHINA & THE AMERICAS
American soldier admits to leaking military secrets to China, reports SCMP
On 14 August, SCMP reported that a US Army intelligence analyst pleaded guilty to conspiring to sell military secrets to China. The charges against Korbein Schultz include conspiracy to disclose national defence information, exporting defence articles and technical data without a licence, and bribery of a public official. According to the charging documents, Schultz conspired with an individual in Hong Kong to collect classified national defence information and technical data about US weapons systems, in exchange for money. Schultz had also succeeded in sending dozens of sensitive but unclassified military documents before his arrest, as per the US Department of Justice. Assistant Director for the Counterterrorism Division of the Federal Bureau of Investigation (FBI) Robert Wells stated that governments like China were targeting American military personnel and classified military information, and promised to safeguard that information. Commanding General of the Army Counterintelligence Command, Brigadier General Rhett R. Cox said,” Let this case serve as a warning: if any member of the Army, past or present, is asked for classified or sensitive information, they should report it to the appropriate authorities within 24 hours or be held fully accountable for their inaction.” Meanwhile, Schultz faces the prospect of decades in prison. (“ US soldier Korbein Schultz pleads guilty to selling military secrets to China,” South China Morning Post, 14 August 2024)
Venezuelan leader accuses TikTok of fomenting unrest, reports SCMP
On 14 August, SCMP reported that the President of Venezuela, Nicolas Maduro accused TikTok of seeking to start civil war in Venezuela. Maduro claimed that the Chinese-owned company had suspended his access to the platform until 19 August for ‘promoting violence.’ In remarks to the National Defence Council, Maduro said: “Look how immoral TikTok is. I accuse the directors and owners of TikTok of wanting a civil war in Venezuela, of supporting fascism in Latin America and the world.” Maduro also claimed that TikTok was encouraging ‘violent protests’ by live-streaming rallies held against his government. Venezuela has been in turmoil since disputed presidential elections on 28 July, which Maduro claims to have won. He has since accused foreign apps of promoting allegations of fraud, asking the Venezuelan public to uninstall WhatsApp and temporarily blocking X in the country. Maduro’s election opponent Edmundo Gonzalez has been recognized as the legitimate election winner by much of the international community. Only eight nations including China have recognized the embattled Maduro as the election winner. ( Igor Patrick, “Venezuelan leader slams TikTok for ‘wanting civil war’ in his country,” South China Morning Post, 14 August 2024)
China Reader Daily Wire | 13 August 2024, Tuesday | Vol.1 No. 147
CHINA & SOUTHEAST ASIA
Chinese Foreign Minister calls for China and ASEAN to work together
On 13 August, Chinese Minister of Foreign Affairs Wang Yi called on China and the Association of Southeast Asian Nations (ASEAN) to collaborate for coordinated development. Wang Yi made the remarks in a congratulatory letter to the ASEAN-China Week 2024 and stated progress made in establishing a China-ASEAN community. He also celebrated the growth of mutual respect and understanding between the region’s people and called on both sides to find new areas to further ties. The need for joint efforts to leverage complementary advantages and accelerate synergistic development which would lead to greater stability and prosperity, was also emphasized by the minister. ( “Wang Yi calls for coordinated development between China and ASEAN,” CGTN, 13 August 2024)
CHINA & SOUTHEAST ASIA
China and Indonesia to hold “Joint Foreign and Defence Ministerial Dialogue”, reports Global Times
On 13 August, Global Times reported that the governments of the People’s Republic of China and the Republic of Indonesia would hold their first Senior Officials Meeting of the Joint Foreign and Defence Ministerial Dialogue. A spokesperson from the Ministry of Foreign Affairs of the People’s Republic of China stated that Vice Minister of Foreign Affairs Sun Weidong and Deputy Director of the Office for International Military Cooperation of the Central Military Commission Zhang Baoqun led a delegation to the Indonesian capital of Jakarta to attend the meeting. The spokesperson went on to say that the meeting would involve discussions on issues of mutual interest for both countries. According to the Director of the World Navy Center at the National Institute for South China Sea Studies Chen Xiangmiao, issues like the Code of Conduct on the South China Sea, greater economic and trade cooperation, the Belt and Road Initiative, China and ASEAN, clean energy could be discussed at the meeting. Chen also informed the Global Times that military cooperation between China and Indonesia could be agreed upon. (“China, Indonesia hold first 2+2 senior officials’ meeting amid South China Sea tensions,” Global Times, 13 August 2024)
INTERNAL
Hong Kong court rejects media baron Jimmy Lai’s appeal for bail, reports Reuters
On 12 August, Reuters reported that the Court of Final Appeals of the Hong Kong Special Administrative Region unanimously rejected an appeal to overturn the convictions of businessman and politician Jimmy Lai alongside six others. Lai, the founder of pro-democracy tabloid “Apple Daily,” and his compatriots had been found guilty on charges of organizing and participating in an unauthorised assembly during the 2019 protests in the city against the extradition bill and China’s growing control of the local system. While a lower court had acquitted the defendants from the charges of organizing, they were still deemed guilty of participating in it. The new appeal brought to light the question of whether the conviction was proportionate to fundamental human rights protections( the doctrine of operational proportionality set forth by the UK Supreme Court which says that punishments should be given depending on the gravity of the crime) Chief Justice of the Court of Final Appeals, Andrew Cheung and Permanent Judge of the Court of Final Appeals, Robert Ribeiro wrote in their judgment, that the examples of cases in the UK could not be used as a precedent for judgments in Hong Kong. Meanwhile, Lai continues to remain in solitary confinement, serving a sentence of five years and nine months for violating a lease contract. He also faces the prospect of a separate national security trial. ( Jessie Pang, “Hong Kong court dismisses bid by media tycoon Jimmy Lai to overturn the conviction,” Reuters, 12 August 2024)
SCIENCE AND TECHNOLOGY
190 Generative AI services registered with the CAC, reports Xinhua
On 12 August, Director of Cyberspace Administration of China (CAC), Zhuang Rongwen, informed that over 190 generative Artificial Intelligence (AI) service models have been registered in China with the national internal regulator. Zhuang stated that the number of registered users of these models has crossed 600 million, and promised that the government would actively promote high-quality development and security in this field. He also laid out plans for independent research and developing computing chips and algorithm frameworks. Zhuang further went on to state that the government would encourage applying generative AI in industries such as manufacturing and agriculture, to empower the real economy. On security, he noted that the government would support service providers in providing high-quality and safe services. The coordinated governance of AI security, alongside supervision from the public and international cooperation, would be carried out, Zhuang promised. Other governmental priorities listed by Zhuang include building a cyberspace ecosystem based on comprehensive governance, improving the laws and regulations, cracking down on online criminals, and protecting the security of internet users. Xinhua noted that the steps are in line with China’s emphasis on generative AI, with the country being the first globally to have a set of provisional management rules for generative AI ( “China Focus: China sees dynamic generative AI services with 190 models in use,” Xinhua, 12 August 2024)
EXTERNAL
World Youth Development Forum 2024 begins in Beijing, reports Xinhua
On 12 August, World Youth Development Forum 2024 began in Beijing, with over 2000 youth from over 130 countries and 20 international organizations participating both in-person and online. The opening of the event coincided with International Youth Day, with more than 500 young leaders and youth representatives attending the opening ceremony and plenary meeting. Deputy Secretary-General of the United Nations, Amina Mohammed, in her video message, asked for the voice of the youth to be heard, and for them to be empowered with skills. The Forum has been themed “Together for a Better Future and could help utilize the youth for implementing the 2030 UN Agenda for Sustainable Development and the Global Development Initiative. A youth proposal for the upcoming UN Summit of the Future and an international cooperation program on youth skills and entrepreneurship training was also launched. Additionally, the participants will tour Chinese cities such as Hangzhou, learning about youth development-oriented cities. (“World Youth Development Forum opens in Beijing,” Xinhua, 12 August 2024)
CHINA & TAIWAN
Taiwan and China engage in shows of military firepower, reports SCMP
On 12 August, SCMP reported that Taiwan would engage in a series of missile drills later this month, to test its military preparedness. The drills come in the face of growing military belligerence by the People’s Liberation Army (PLA), the armed forces of the People’s Republic of China, which has sent more warplanes and ships near Taiwan. The Taiwanese Air Force will conduct live-fire exercises in a restricted zone off the coast of Taitung from August 27-29, as per the Fisheries Agency of Taiwan. This would be followed by annual air-to-air firing drills, and sea-launched missile drills by the Republic of China Navy. An anonymous military source informed that these drills were intended to test the precision of Taiwan’s main combat aircraft; namely the Indigenous Defence Fighters, French Mirage 2000s, and upgraded F-16Vs. These aircraft have been equipped with several upgraded technologies, such as the AIM-9X Sidewinder short-range air-to-air missiles bought from the United States. The navy would also utilize warships equipped with medium-range Hsiung Feng-2 and 3 supersonic missiles during the drills to test their readiness against PLA attacks, according to the source. ( Lawrence Chung, “Taiwan to mount missile drills off the east coast as PLA flexes more military muscle nearby,” South China Morning Post, 12 August 2024)
CHINA & EAST ASIA
Cheaper Chinese Kimchi imports are preferred by Korean consumers, reports The Korean Times
On 12 August, an article in The Korea Times observed that Koreans were choosing to buy cheaper, Chinese-made kimchi over the costlier, domestically-made kimchi. The Korea Customs Service revealed that the Korean kimchi trade had a deficit of 549,000 USD, with kimchi exports worth 83.8 million USD and imports worth 84.35 million USD. This is in line with a continuing trend of kimchi imports exceeding exports. Since 2004, South Korea has imported more kimchi than it has exported, with the annual deficit growing from 37,777 tons in 2004 to 242, 505 tons in 2023. Chinese kimchi costs less in comparison to Korean-made kimchi, meaning that restaurants and businesses choose the cheaper option. In the first half of 2024, the price of exported Korean kimchi was 3513 USD per ton, in contrast to just 569 USD for Chinese kimchi. By choosing the cheaper imports, restaurants and businesses hope to reduce costs and keep their customers. Additionally, a decrease in cabbage harvests due to extreme temperatures means that the price of Korean kimchi is expected to rise. The Korea Rural Economic Institute predicts a 19.3 per cent increase from 2023 in cabbage prices. This will further increase the prominence of Chinese kimchi as a preference for the population. ( Ko-Dong Hwan, “Korea’s kimchi export growth lags behind the surge in cheaper Chinese imports,” The Korea Times, 12 August 2024)
Japanese World War II veteran apologizes for crimes committed against Chinese citizens, reports CGTN
On 13 August, CGTN reports a former member of the Japanese Unit 731 apologized for the crimes committed by their unit to the Chinese citizen during World War II. The former member Hideo Shimizu was sent by Japan to Harbin in 1945, where he spent over four months witnessing the activities of Unit 731, the biological and chemical warfare research and development unit of the Imperial Japanese Army during World War II. The unit conducted brutal atrocities such as live human experiments and dissections. Shimizu wrote that he expressed his apologies to the Chinese people, and hoped to avoid new wars, with the hard-won peace cherished. ( “Ex-member of Japanese germ warfare unit comes to China for repentance,” CGTN, 13 August 2024)
CHINA & THE MIDDLE EAST
Chinese Mega Oil and Gas platform construction for the Gulf completed, reports SCMP
On 13 August, SCMP reported on China’s completion of the construction of a giant offshore oil and gas platform. According to Chinese state broadcaster CCTV, it took three years to build 24 storeys, weighing more than 17,000 tonnes and a deck size of 15 basketball courts. It has one of the world’s biggest transmissions capable of delivering 24 million tonnes of crudeoil and 7.4 billion cubic metres of gas every year. In addition, SCMP stated that the platform was built in the eastern port of Qingdao by China’s Offshore Oil Engineering Company and will be transported to the Marjan oil field in the Gulf. The CCTV reported that: “the completion of the Marjan oil and gas platform marks a breakthrough in China’s technology in large-scale offshore oil and gas equipment construction.” According to a London-based Industry, Offshore Technology the platform is part of the USD 12 billion Marjan crude increment programme to expand the field’s capacity by Three hundred thousand barrels of crude oil a day. (“China finishes work on mega oil and gas platform destined for the Gulf,” South China Morning Post, 13 August 2024)
CHINA & EUROPE
China admits that it destroyed the Baltic gas pipeline, says it was an accident, reports SCMP
On 12 August, SCMP reported that Beijing accepted that a Chinese ship had damaged the Baltic Sea gas pipeline between Estonia and Finland. The Chinese authorities conducted an investigation and communicated the result to governments in the European countries, and said it was an accident due to a strong storm. Both countries are conducting a joint criminal inquiry on a container ship the “New New Polar Bear,” that was flying the Hong Kong flag on its voyage. A spokeswoman for the Estonian prosecutor said: “document had not been sent to that office and that it can’t be used as evidence in an Estonian criminal investigation in any case.” Similarly, a spokeswoman for the Finnish National Bureau of Investigation (NBI) Anna Zareff said: “During the investigation, co-operation with the Chinese authorities has been done and among others NBI has submitted a request for legal assistance to the competent Chinese authorities.” In addition, Chinese sources stated that the investigation was conducted in line with International Maritime Organization rules, the Chinese Ministry of Justice is yet to respond to the queries of Estonia and Finland. (“Beijing admits Hong Kong-flagged ship destroyed key Baltic gas pipeline ‘by accident’,” South China Morning Post, 13 August 2024)
China attempts to forge new ties in Eastern Europe, says an opinion in SCMP
On 12 August, SCMP published an opinion talking about the Chinese government’s attempts to build new relations with countries in Central and Eastern Europe. Chinese ambassadors and representatives have been visiting countries in the region regularly. According to Professor of International Relations at Renmin University, Wang Yiwei, China is trying to “break the ice” in a region where it is looked on with suspicion, due to its neutral stance in the Ukraine war. The China and Central and Eastern European Countries (China-CEE) cooperation mechanism established in 2012 looks to build closer cooperation between China and those countries in the fields of trade, infrastructure, and development. China’s investments in the electrical vehicle sector could allow Eastern and Central European countries to become bases of Chinese production facilities, and bring in new technologies and greenfield investments to the region, according to Wang. However, he also cautions China to be pragmatic in building closer ties, especially since its close ties with Russia could damage its image. ( Laura Zhou, “Can China’s charm offensive breathe new life into ties with central and eastern Europe?,” South China Morning Post, 12 August 2024)
CHINA & THE AMERICAS
China shaped the US Vice President candidate Tim Walz, says an opinion in The Guardian
On 13 August, an opinion in the Guardian titled “Always remember’: how Tim Walz’s time in China shaped him,” focused on how Tim Walz’s time in China shaped him. The op-ed goes back to November 2016, Donald Trump had just been declared the winner of the US presidential election. It was a hard time to organise an event about Hong Kong, a Chinese city in which only a few people showed interest after the Umbrella Movement of 2014. Nobody from Congress turned up to meet Joshua Wong, a student leader who was flying to Washington for a briefing organised by the Congressional-Executive Commission on China (CECC), shortly before the event, a congressperson agreed to come (Tim Walz). During his speech. Unlike other people, he spoke from his heart about the importance of human rights and democracy and stated what Ngo said. “I just remember thinking that he really knew his stuff.” Tim Walz, announced Kamala Harris as his running mate for the US election in November, who has a long history with China. The Republican Party has accused the Governor of Minnesota of being pro-Beijing. But Walz’s admirers, including critics of the Chinese government, have welcomed the sudden prominence of an American politician who is seen to have a people-centric approach to America’s major geopolitical rival. A Minnesota lawyer Jillian Walker, said: “I can read about China in a book, but if I go there, think how impactful that could be.” In 2009, Xinjiang was abused of human rights as a mainstream issue in Washington, During that time Walz spoke of cultural genocide taking place there and in Tibet, subsequently, he met the Dalai Lama in 2016, an experience he described as “life-changing.”(“Always remember’: how Tim Walz’s time in China shaped him,” The Guardian, 12 August 2024)
China Reader Daily Wire | 12 August 2024, Monday | Vol.1 No. 146
MARITIME
China launches international deep-sea expedition in Western Pacific Ocean
On August 11, China’s research vessel Shenhai Yihao set off on a 45-day scientific mission to the Western Pacific Ocean with the manned submersible Jiaolong onboard. This expedition forms part of the 2024 Western Pacific International Voyage where 18 dives are planned to explore seamount ecosystems. Scientists are expected to collect organisms from the deep-sea environment as well as seawater and sediments to gain more knowledge about these unique places. Ministry of Natural Resources Tang Dongmei stated that this mission is China’s first international voyage under its Digital Deep-sea Typical Habitats Program which has received support from 39 countries. The expedition team consists of researchers from different countries like Canada, Spain and Colombia. (“China's Deep Sea No. 1 vessel embarks on expedition to Western Pacific,” CGTN, 12 August 2024)
CHINA & SOUTHEAST ASIA
Philippines calls for de-escalation as China’s ‘dangerous’ actions persist in South China Sea
On 12 August, tensions in the South China Sea flared again as the Philippines confronts China over recent aerial incidents. Philippine Defence Secretary Gilberto Teodoro has urged Beijing to “temper” its actions and adhere to international law following what Manila describes as “very dangerous” manoeuvres by Chinese aircraft near Scarborough Shoal. The Philippine military reported Chinese planes dropping flares in the path of their routine patrol, a claim Beijing disputes. Teodoro views these actions as part of a “continuous pattern” by China to assert its territorial claims. Despite recent agreements to manage maritime disputes, the situation remains volatile. Philippine President Ferdinand Marcos Jr condemned China’s behaviour, with plans to file a diplomatic protest. Military chief Romeo Brawner emphasised that such incidents will not deter Philippine patrols within its exclusive economic zone. (“Philippines urges China to de-escalate tensions after air incident over Scarborough Shoal,” Reuters, 12 August 2024)
INTERNAL
China-US ties for most gold medal in the 2024 Olympics, reports NBC News
On 11 August, NBC News reported on the US and China winning the most Gold Medals. The US and China each won 40 gold medals in Olympic history, with the Americans pulling into a tiebreak on Sunday with victory in the last event of women’s basketball. The US equalled China in its heart-stopping 67-66 victory over France in an astonishingly close game for the women’s gold. The Women's National Basketball Association Breanna Stewart said: “I wasn’t aware until someone told me after the game, but I’m happy that we won for ourselves and USA basketball, but also for the entire Team USA delegation so we can be tied.” In addition, NBC News reported on the athletic rivalry between the US and China, stating that they did not match up in many events except in the aquatic games. The US Swimmer Caeleb Dressel said: “The goal when we come to the Olympics and the world championships is to win gold medals. Other countries are getting very dominant — Australia and U.S. are the two most recognized. But from these Games, I saw a lot from Italy, China, France. So the wealth has just been spread around. I don’t think we’re getting any worse, per se.” (“U.S. and China fight to 40-40 draw for most Olympic gold medals,” NBC News, 12 August 2024)
China’s youth military education: Patriotism or Preparation, asks an editorial in The Guardian
On 11 August, an editorial in The Guardian reported that China has intensified its national defence education program by targeting younger children. This trend can be noted in Beijing Jiaotong University’s elementary school called “Model School for National Defence Education,” where kids as young as six participate in military activities. The government plans to expand this scheme by nearly doubling the number of model schools and amending the National Defence Education law to make military training compulsory for high schools or even younger students. Experts believe that such a thrust is part of Xi Jinping’s larger strategy. According to Bethany Allen from the Australian Strategic Policy Institute, it “normalizes China’s increasingly aggressive foreign policy” and could psychologically prepare the country for potential armed conflict. Merics’Katja Drinhausen observes it forms part of internal cohesion efforts in the face of adversity. She said: “It is useful to see this development against various scenarios of possible military and defense teaching.” (Helen Davidson and Chi-hui Lin, “Love the army, defend the motherland: how China is pushing military education on children,” The Guardian, 11 August 2024)
ECONOMY
China’s overcapacity has global implications, says an opinion in The Guardian
On 11 August, an opinion piece in The Guardian stated that that although US recession fears drive capital markets, the real economic threat could be found within China’s structural dilemmas. China’s historical growth model which relies on massive state investment and cheap credit has resulted in localities having too much production capacity. This mismatch between supply and demand is forcing Chinese firms into deep discounting generating what Zongyuan Zoe Liu calls “a doom loop of falling prices, insolvency, factory closures and eventually job losses”. The 1990s featured two significant differences. Overcapacity problems worsened whereas Western governments are now officially implementing tariffs and subsidies to protect their economies from low-cost imports coming from developing countries including China. This change has led to increased tension between different countries related to trade issues as China tries to evade such obstacles imposed by developed nations like the US or EU-28 member states. Goods in UK were approximately 1.4 per cent less persistent than a year ago in June due to large volumes of imports flooding into its markets from mainland China. Simultaneously, it appeared that the Middle Eastern region remained uncertain since there was always a possibility of escalation into armed conflicts that could influence fuel pricing internationally. (Larry Elliot, “Threat to stock markets comes from China and Middle East, not the US,” The Guardian, 11 August 2024)
ENERGY & ENVIRONMENT
China’s guidelines for green transition, reports CGTN
On 11 August, CGTN reported on the unveiled comprehensive guidelines for a nationwide green transition plan by the Chinese government. This is to set ambitious targets for 2030 and 2035. Other sectors such as energy, industry and urban-rural development are also involved in it. Green development will have “remarkable results” in all economic and social areas by 2030 according to China’s aim. This involves increasing the amount of non-fossil energy consumed from its current level to about 25 per cent, expanding the energy-saving industry by 15 trillion Yuan and reducing carbon emissions from commercial transport by 9.5 per cent relative to 2020 levels as examples of specific goals outlined in this plan. Additionally, optimising land use patterns and promoting the circular economy are some of the other important aspects of this overall plan as well. China envisions establishing a green low-carbon circular development ecological system that aligns with the Beautiful China initiative by the year 2035. (“China details guidelines of 'green transition' in economic, social development,” CGTN, 11 August 2024)
SCIENCE & TECHNOLOGY
China focuses on anti-drone technology development, says an editorial in SCMP
On 11 August, an editorial in the South China Morning Post reported that China was ramping up efforts towards anti-drone weaponry by studying the Ukraine war as a point of reference. The People’s Liberation Army (PLA) had been training and researching advanced foreign technology including Britain’s DragonFire laser system. Military literature has underscored the significance of countering unmanned aerial vehicles (UAVs) effectively. One write-up said: “Whichever side can better counter this kind of drones deploy will always be in control on battlefields.” To create “smarter, high efficiency” systems meant for de-predating UAVs, PLA is at work on those. It’s even spilling over into private sectors where companies such as Jindowin are reporting a “thriving” market for these devices. An employee remarked: “The drones from our country are something else entirely. For every spear there has to be a shield.” This technology might turn critical during possible armed conflicts, the Taiwan Strait being one area example. Due to China’s economic model, it produces “high standard yet low cost products” enabled by extensive supply chains. (Amber Wang, “China eyes anti-drone technology as key to future battlefield success,” South China Morning Post, 11 August 2024)
CHINA & THE PACIFIC
Fiji’s PM visit to China highlights growing cooperation, says an editorial in Global Times
On 11 August, an editorial in the Global Times reported that Fiji’s Prime Minister Sitiveni Rabuka is scheduled to visit China, further consolidating bilateral ties. The purpose of this visit is to revamp their comprehensive strategic partnership and their common interests. China and Fiji have been sharing diplomatic relations for 49 years with China being the first among Pacific island countries that recognized Fiji. The visit is expected to touch on climate change, economic growth and advanced technologies like new energy and desalinisation. According to East China Normal University’s Chen Hong, these sectors are key for most South Pacific Nations. Despite efforts by Western powers criticising Chinese involvement in the region, Fiji has stayed under Chinese police surveillance because it recognises the benefits of such collaborations. Chen noted that unlike the former colonialists “whose hegemony” is marked by a “military presence,” there are no Chinese troops in any part of the South Pacific islands encompassed by this area. However, Rabuka mentioned the need for balance when he said: “We have friendly relations with both China now and the US always; we don’t want to be caught up in superpower struggles.” (Xu Keyue, “Fiji’s PM to start 10-day China visit to elevate ties,” Global Times, 11 August 2024)
CHINA & SOUTH ASIA
India’s diplomatic push in Maldives amid perceived competition with China, reports Global Times
On 11 August, Global Times reported on the recent trip by Indian External Affairs Minister S Jaishankar to Maldives. Global Times stated that some sections of Indian media have framed his visit as a reaction to the escalating dominance of China within the region but some experts offer a different view. Sichuan International Studies University’s professor Long Xingchun explained that from China’s perspective, its relations with countries such as Maldives are normal rather than exclusive but then again India sees it as a potential threat on its part further hindering free trade. Moreover, it coincides with difficult times between India and Maldives since Maldivian President Muizzu has requested for all Indian military personnel present on their soil to be withdrawn immediately. Hence, India is making use of diplomacy to repair their broken ties because isolating them would only lead them into China’s arms. Long adds that “China also supports the Maldives in fostering friendly cooperation with India”, pointing out China’s respect for smaller South Asian states sovereignty. (“Indian FM visits Maldives; ‘China-Maldives cooperation not exclusive, doesn’t affect India’,” Global Times, 11 August 2024)
CHINA & THE MIDDLE EAST
China’s Foreign Minister condemns assassination of Hamas Chief, reports CGTN
On 11 August, CGTN reported on the Chinese Foreign Minister Wang Yi condemns the assassination of Hamas Chief Ismail Haniyeh. Wang Yi said it was an act that: “seriously violates,” basic norms governing international relations and may directly jeopardize the process of ceasefire negotiations in Gaza. In addition, he further stated the significance for the international community to join hands to effectively implement the Security Council resolutions and create a permanent ceasefire in Gaza. Furthermore, he spoke about cooperation with Iran in all areas, expecting to bring new prospects to the strategic partnership between the two countries and stated that China will continue to work with the new Iranian government in giving firm support to each other's interests. (“Wang Yi says the assassination of Hamas chief jeopardizes Gaza ceasefire negotiations,” CGTN, 12 August 2024)
CHINA & EUROPE
Chinese vessel voyaging through UK waters monitored by the Royal Navy, reports Sky News
On 10 August, Sky News reported on two Chinese warships that voyaged through UK waters, the voyage were closely monitored by a British frigate HMS Richmond. The frigate has had a close monitor on the PLA’s Vessel as it passed twice in the past three weeks, the frigate travelled from and to Russia. The Minister of Armed Forces Luke Pollard said: “These escorts are a clear demonstration of how the Royal Navy continues to protect the sovereignty of UK waters.” He further stated that working closely with the UK allies and the Euro Atlantic Security support would be the top Priority. In addition, the British warship monitored China's Jiaozuo, and Honghu, supply ships, with the support of a French warship and a patrol ship from the Belgian navy, as they made their journey back and forth through the North Sea and into the Channel. The Commanding Officer of HMS Richmond, Commander Richard Kemp, said: “By maintaining a visible and persistent presence, the Royal Navy demonstrates our commitment to the NATO alliance and in maintaining maritime security which is crucial to our national interests.”(“Royal Navy watches Chinese warships travelling through UK waters,” Sky News, 12 August 2024)
CHINA & THE AMERICAS
Chinese Foreign Ministry accused US-based group National Endowment for Democracy of “ideological infiltration,” reports SCMP
On 10 August, South China Morning Post reported on China’s accuses US-based group of “ideological infiltration”, including funding anti-Beijing forces in Hong Kong and supporting separatist forces in Taiwan, in a lengthy report aimed at “unmasking” its operations. A report was published by China’s Ministry of Foreign Affairs on Friday accusing Washington of “subverting state power in other countries” and “conducting ideological infiltration,” through the National Endowment for Democracy (NED) claims that have been echoed by countries in Latin America and the Middle East. The NED is funded by the United States Congress aiming to support democratic struggles. In addition, SCMP stated on the NED’s Long conspiring attempts to destabilise Hong Kong by providing funds and public support, the report said: “naming organisations including Hong Kong Watch and Amnesty International, as well as “anti-China lawmakers” in the US, UK and Germany.” The report also accused the NED of working with Taipei’s ruling Democratic Progressive Party to mobilise democratic forces to open up the front line of democratic struggle in the East and publicise a false plot of Ukraine today and Taiwan tomorrow. Furthermore, the article said: “The sprawling, full-spectrum influence and engagement campaign that the Chinese Communist party-state is waging around the world requires an equally comprehensive response from civil societies, governments, and economic actors that back democracy.” (“China accuses US group National Endowment for Democracy of ‘ideological infiltration,” South China Morning Post, 12 August 2024)
China Reader Daily Wire | 10 August 2024, Saturday | Vol.1 No. 145
ECONOMY
China’s industrial sectors face oversupply crisis, says an editorial in The Economist
On 08 August, an editorial in The Economist reported that the manufacturing sectors of China are facing severe overcapacity and financial strain. The electric vehicle, solar module, and semiconductor industries are facing severe challenges as a result of overcapacity and competition. The latest data found that around 30 per annum of the industrial firms were incurring a loss by the end of June. This exceeded the1998 Asian financial crisis levels. The EV sector has witnessed the shutdown of about eight large makers this year and nearly 11,000 chip-related firms closed down the earlier year. The solar industry faces a problem whereby the component prices are below production costs. The oversupply conundrum is because of undue spending by the local governments in any high tech sector that has in turn more the number of manufacturers of previously identified uncompetitive suppliers. The central government acknowledges the problem, with President Xi recognising over-investment in green technologies. The politburo has called for avoiding “neijuan-style vicious competition” and allowing market forces to filter out weak producers. However, consolidation efforts are are proving a challenge because successful companies are unwilling to acquire weak brands. The situation is further complicated by the fact that local governments have little capacity to rescue troubled firms as their debt piles up. (“China’s manufacturers are going broke,” The Economist, 08 August 2024)
CHINA & EUROPE
China-Russia call for “peaceful use of outer space”
On 08 August, the Russian Ministry of Foreign Affairs informed that the leaders of China and Russia met and discussed outer space ambition and safety. Both countries called for the “peaceful use of outer space.” Russian Foreign Ministry said: “international legal regulation, as well as ensuring the long-term sustainability and safety of space activities” and the agenda of the UN Committee on the Peaceful Uses of Outer Space.” They stated that they want to strengthen coordination bilaterally and on multilateral platforms. Director General of the Chinese Foreign Ministry’s department of treaty and law, Ma Xinmin represented the Chinese side as they discussed the issues of common interest. In February 2024, both China and Russia stressed the need to continue their close cooperation to prevent an arms race and weaponization in outer space. US is keeping track of the growing closeness between the two nations as US Space Command chief General Stephen Whiting warned against the growing cooperation and said: “As we’ve seen Russia struggle on the battlefield in Ukraine, it appears that they’ve gone to these other countries … looking for assistance, and maybe they’re willing to share or cooperate more in the space sphere. Certainly, that’s of concern to us.” (“China and Russia hold talks on ‘peaceful’ use of outer space,” SCMP, 09 August 2024)
MARITIME
China advances deep-sea legislation, reports People’s Daily
On 08 August, People’s Daily reported that China will expand the scope of its legislation to protect its interests in the deep sea, making this the latest front in its great power competition with the United States. Public Security Minister Wang Xiaohong disclosed his intentions of “proactively advancing national security legislation” in areas of greatest necessity like deep sea security. This follows Chinese legislation in 2016 regarding deep-sea resource exploration. It is aimed at protecting assets ranging from subsea communications cables in which Chinese companies have quite a wide market share. The move comes at a time when competition for these resources is increasing, and so is the military presence in the deep seas. Knowfar warns that it could hence foster “militarisation and arms races in the deep sea,” leading to a possible threat against global safety and sustainable development. Authorities such as Shanghai Jiao Tong University’s Zhang Guobin believe that a strong legal regime will be able to fill in the gaps provided by the regulations that relate to deep-sea exploration. Deep seas, meaning the oceans subsurface deeper than 200 metres, are considered a critical theater through which technological development and power projection can be executed. The legislative push is one among others for shoring up these broader Chinese maritime claims, making a case for a normalisation of activities in international waters and a response to the sanctions put in place by the US against Chinese subsea technology firms.(Coy Li, “China pushes to preserve deep-sea interests with national security legislation,” South China Morning Post, 10 August 2024)
INTERNAL
China crackdowns on security sector, reports SCMP
On 09 August, SCMP reported that the Chairman of Harvest Fund Management Zhao Xuejun has resigned as he was under investigation. This happened because Beijing has increased monitoring over China’s security industry. According to the announcement, it is noted that China’s fourth-largest fund house will have co-chairman An Guoyong as its acting chairman. Harvest reassured stakeholders: “The Board of Harvest has made due and sufficient arrangements to ensure stability at the level of management, investment, and research teams.” It comes as part of a wider crackdown in the financial sector, with the National Audit Office sending inspection teams to top mutual funds. The campaign is to run until September and is targeting illegal practices. The scrutiny is coming just when Chinese markets are facing challenges, as the CSI 300 Index has been down close to 10 per cent since May. The government’s actions follow President Xi Jinping’s “common prosperity” initiative to address the issue of wealth inequality. That bill is supposed to introduce a kind of salary cap for employees of banks and other financial institutions. According to reports, it is expected to cap annual salaries at around 3 million yuan. With the deepening crackdown, higher-ranking officials in brokerages and fund houses will be punished for corrupt practices. (Daniel Ren, “Chinese fund manager Zhao Xuejun whisked away as Beijing cracks down on securities sector,” South China Morning Post, 09 August 2024)
CHINA & TAIWAN
China calls citizens to list “diehard secessionists,” reports The Guardian
On 08 August, The Guardian reported that China is increasing pressure on Taiwanese independence as it launches new webpages urging citizens to report “diehard secessionists” and their “criminal activities.” According to the Taiwan Affairs Office and Ministry of Public Security, there is a list of ten current and former Taiwanese officials including Vice President Hsiao Bi-khim, who were earmarked to be targeted as part of this campaign. It is part of Beijing’s broader strategy to assert control over Taiwan, which it claims as a province. The Chinese Communist Party has pledged to annex the island, even by force if needed, though Taiwan’s democratically elected government refuses Chinese rule. Recently, China warned that “ringleaders” of independence efforts could face the death penalty under Chinese law. It was stated by a Chinese security official Sun Ping, that “the sharp sword of legal action will always hang high.” Taiwan’s leaders have dismissed Chinese claims of having legal jurisdiction over the island. The Mainland Affairs Council said to reassure citizens: “The government appeals to our country’s people to feel at ease and not be threatened or intimidated by the Chinese Communist party.” (Helen Davidson, “China lists Taiwanese independence supporters it wants people to denounce,” The Guardian, 08 August 2024)
CHINA & SOUTHEAST ASIA
Vietnamese frigate docked in China for five days
On 07 August, a Vietnamese guided-missile frigate docked in Zhanjiang, China, for a five-day visit. The development comes at a time when both countries are engaged in heightening military activities in the disputed South China Sea. According to the Chinese Southern Theatre Command responsible for the region, the aim of the visit is to “improve mutual understanding and trust” between the two navies. Meanwhile, the Philippines was holding naval exercises with the US, Canada, and Australia, as China performed its patrols close to the contested Scarborough Shoal. Reports of Chinese drones near Vietnam’s coastline are the newest factor adding to the tensions here in the region. The two nations have recently tried to strengthen military ties despite their previous conflicts. The two sides conducted joint patrol exercises in June within the Gulf of Tonkin. Vietnam is trying to balance its relations with China and the US through its nuanced “bamboo diplomacy.” (Alyssa Chen, “South China Sea: Vietnamese navy frigate visits China amid flurry of drills in waterway,” South China Morning Post, 08 August 2024)
China files suit at the World Trade Organisation against EU tariffs on Chinese EVs
On 09 August, China's Ministry of Commerce (MOFCOM) files against the EU at the World Trade Organization. This suit comes in light of the EU imposing anti-subsidy measures against Chinese EVs. MOFCOM expressed that they need to safeguard the Chinese EV industry and its development it for a green global transition. Global Times cites an expert saying: “China has legitimately resorted to the multilateral mechanism to address the China-EU dispute over provisional tariffs on China-made electric cars. Mediation through the WTO could lead to some new changes in discussion mechanisms within the bloc.” They urge the EU to face healthy competition and ramp up their green cooperation, stated Global Times. The Ministry noted that the EU finding lacked factual and legal basis and that it violates WTO rules. Deputy Director of the Center for China-Europe Relations at Fudan University, Jian Junbo said: “The MOFCOM's move is a legitimate response by China to the EU's investigation and subsequent decision to impose provisional tariffs on Chinese EVs against WTO rules. It also shows that China uses the multilateral platform to resolve bilateral trade disputes, which will help keep the bilateral economic and trade relations on track.” The suit comes after European Commissioner Valdis Dombrovskis announced that they are likely to go ahead with imposing tariffs on Chinese EVs. (Liu Yang and Chi Jingyi, “China files WTO suit against EU over tariffs on Chinese EVs; ‘Move may prompt changes in discussion mechanisms within bloc’,” Global Times, 10 August 2024)
China Reader Daily Wire | 08 August 2024, Thursday | Vol.1 No. 143
CHINA & SOUTHEAST ASIA
China conducts military drills near Scarborough Shoal
On 07 August, Chinese military conducted air and sea combat drills near the Scarborough Shoal in the South China Sea. It was done to test its “strike capabilities” in response to joint military exercises by the United States, Australia, Canada, and the Philippines. The drills carried out by the Chinese Southern Theatre Command aimed to evaluate reconnaissance and early warning capabilities. China stated that it is controlling military activities that could disrupt regional peace and stability. The exercises come amid a tense standoff between Beijing and Manila. China asserts its claims to nearly the entire South China Sea despite the 2016 international tribunal ruling that rejected its claims. Scarborough Shoal, located 240 km west of the Philippines’ Luzon island, has been a flashpoint since China seized it in 2012, disrupting access for Filipino fishermen. The US, Australia, Canada, and the Philippines emphasised their commitment to upholding international law and ensuring unhindered passage in the Asia Pacific. In contrast, Beijing criticised external involvement, warning that it could aggravate regional tensions and lead to greater insecurity for Manila. The US recently pledged USD 500 million in military aid to the Philippines to counter China’s growing assertiveness in the region. (“Beijing, Manila and allies, launch drills near South China Sea flashpoint,” Aljazeera, 07 August 2024)
ENERGY & ENVIRONMENT
China discovers major gas field in South China Sea, reports SCMP
On 08 August, SCMP reported that China confirmed the discovery of a significant natural gas field, Lingshui 36-1 in the South China Sea. The gas field contains over 100 billion cubic meters of natural gas. Xinhua News Agency describes this field as the world’s first “ultra-shallow gas field in ultra-deep waters.” It is situated southeast of Hainan Island, with an average water depth of 1,500 metres. The China National Offshore Oil Corporation (CNOOC) announced this breakthrough in June, noting that the field could produce over 10 million cubic meters of gas per day. CNOOC’s president, Zhou Xinhuai, emphasised the South China Sea’s importance in boosting China’s natural gas reserves, which now exceed a trillion cubic meters in the region. However, the discovery heightens tensions in the disputed waters of the South China Sea, where China’s claims conflict with those of Vietnam, the Philippines, Malaysia, Brunei, and Taiwan. The region has a history of confrontations over oil and gas exploration. CNOOC’s previous operations in contested areas, such as the 2014 incident near the Paracel Islands, sparked significant diplomatic and political tensions. (Liu Zhen, “China confirms the discovery of a major natural gas field in the South China Sea,” South China Morning Post, 08 August 2024)
INTERNAL
Chinese woman arrested for defamatory social media posts against Chinese athletes and coaches
On 07 August, Beijing police arrested a 29-year-old woman, He, for posting defamatory remarks on social media about Chinese athletes and coaches. The incident occurred after the table tennis women’s singles final at the Paris Olympics. The Daxing district police reported that the suspect, “maliciously fabricated information and blatantly defamed others, resulting in an adverse impact on society.” During the 03 August match, where Chen Meng defeated world No 1 Sun Yingsha, the crowd’s boos and cheers sparked social media criticism. Social media erupted with criticism of the crowd’s behaviour, with one Weibo user warning that such fan culture could undermine athletes like Sun Yingsha. China’s popular microblogging site Weibo, deleted over 12,000 posts and banned more than 300 accounts for “illegal” comments. (“China arrests woman suspected of 'defaming' Olympic table tennis players,” CNA, 07 August 2024)
China’s machinery industry thrives with green advances, reports CMIF
On 07 August, the China Machinery Industry Federation (CMIF) reported that China’s machinery industry saw strong performance in the first half of the year, bolstered by intelligent and green initiatives. Key sectors like automobiles and electrical equipment experienced rapid growth, with the automotive industry’s added value increasing by 9.8 per cent year-on-year. 61.5 per cent of the 122 monitored mechanical products showed increased production. New energy vehicles (NEVs) and industrial robots added momentum, with NEV production and sales rising by 30.1 per cent and 32 per cent, respectively, and industrial robot output increasing by 9.6 per cent. Green energy power generation also surged, comprising 85 per cent of newly added installed capacity. CMIF’s executive vice president Luo Junjie highlighted significant R&D achievements, enhancing the resilience and security of industrial and supply chains. (“China's machinery industry sees stable performance, new momentum in H1,” CGTN, 08 August 2024)
ECONOMY
Investors seek liquidation of Evergrande amid debt crisis
On 07 August, a stock filing reported that an investor petitioned to the Chinese court to liquidate a major unit of the indebted property developer China Evergrande. Shenzhen-listed Vanward is pursuing liquidation over a 200 million yuan (USD 27.9 million) investment dispute with Evergrande’s Guangzhou Kailong Real Estate. Evergrande stated that Kailong’s bankruptcy would not impact the operations of its primary property entity in mainland China Hengda Real Estate. Kailong, which controls 60.3 per cent of Hengda, is a holding platform with no direct property projects. Vanward won arbitration in December 2022, ordering Kailong to return the investment, but compliance is still pending. This comes amid Evergrande’s broader financial struggles with over USD300 billion in liabilities. (Xie Yu, “Investor files liquidation petition in China against Evergrande unit,” Reuters, 07 August 2024)
Foxconn’s continued confidence in Chinese manufacturing, an editorial in Global Times
On 08 August, an editorial in the Global Times reported Foxconn’s recent announcement to invest 1 billion yuan (USD 139 million) in a new headquarters in Zhengzhou, Henan Province and Apple’s decision to continue assembling its iPhone 16 series in China. This reflects their strong confidence in the Chinese mainland’s economic environment. Despite previous Western media hype about “Foxconn leaving,” the company’s increased investment counters the narrative of “de-Chinaization.” It also underscores the resilience of China’s manufacturing sector. Foxconn Chairman Young Liu denied any relocation, stating that having multiple suppliers is normal. Apple’s CEO Tim Cook emphasised China’s irreplaceable role in their supply chain. China’s complete industrial system, vast market, skilled workforce, and efficient government have made it the global leader in manufacturing, attracting substantial foreign investment.n (“What does Foxconn’s ‘return’ mean?: Global Times editorial,” Global Times, 08 August 2024)
CHINA & EAST ASIA
Japanese luxury brands sales plunge by 15.5 per cent
On 08 August, Shiseido a Japanese luxury brands shares dropped by 15.5 per cent in Tokyo trading, hitting the daily limit of 700 yen. This followed a midyear earnings report that revealed a 2.7 billion yen (USD 18.44 million) operating loss. Cosmetics giant faced challenges from slumping demand in China and incurred 20.4 billion yen in restructuring costs. Shiseido joins other luxury brands like Cartier-owner Richemont and Gucci’s Kering, which have also been impacted by slowing growth in China’s economy. Despite these setbacks, Shiseido’s domestic sales saw a boost driven by a surge in tourism. This is particularly from Chinese shoppers taking advantage of Japan’s weak yen to purchase designer goods. (“Japan's Shiseido becomes latest luxury brand hit by China slump, shares plunge,” Reuters, 08 August 2024)
CHINA & THE PACIFIC
Debt concerns over China funded Vanuatu presidential palace, says an opinion in The Guardian
On 01 August, an opinion in The Guardian titled “Vanuatu presidential palace funded by China stirs debt fears,” looked into the glistening red and white building in Port Vila, Vanuatu’s seaside capital, gifted by the Chinese to the Pacific country. The exorbitant complex is the latest in a series of gifts and infrastructure missions offered to Vanuatu by Beijing, to transform several towns and villages in the small island nation. Vanuatu’s Minister of Finance John Salong said: “The projects have been a boon for the developing country, which often struggles to pay for building works itself. The Lowy Institute estimates the presidential palace and new government buildings cost $20m.” The op-ed further focused on the majority of Chinese-funded projects that have taken place in Pacific Island countries, corresponding with an expansion of China’s security and strengthening of diplomatic ties between Chinese and Pacific governments. In a joint statement released after the talks, China said: “It welcomed Vanuatu’s active participation in its belt and road initiative, Beijing’s multi-billion dollar project to connect the world through a series of infrastructure builds.” The op-ed also reflects on the debt concerns over increased reliance on China. Where the author notes:“China is the region’s largest lender, and though many of the Pacific’s government buildings have been donated as gifts, the majority of its infrastructure builds are made possible by sizeable loans from its Exim Bank.” (“Vanuatu presidential palace funded by China stirs debt fears,” The Guardian, 08 August 2024)
CHINA & THE MIDDLE EAST
Chinese FM calls for the international community unite and achieve cease fire, reports Global Times
On 08 August, Global Times reported on Chinese diplomat Wang Yi’s telephonic conversations with the Ministry of Foreign Affairs of Egypt and Jordan, criticising the assassination of Hamas political chief Ismail Haniyeh in Tehran. On 31 July, Wang called for efforts by diverse parties to prevent escalation of conflicts and urged countries to form a force to achieve a cease-fire in Gaza. Hamas named Yahya Sinwar, as successor to Haniyeh, creating a dilemma among the Arab World; hoping that China could play a positive role in de-escalating the situation. An Analyst said” But the complexity of the situation requires joint efforts from all parties to address the current crisis, especially the US and Israel, to avoid escalation,” subsequently the Chinese Ministry of Foreign Affairs released audio tapes of the telephone conversation, stating that China decisively opposes and strongly condemns the assassination of Haniyeh. The analysts further said: “In past decades, the vicious cycle in the Middle East has repeated with no country emerging as a true winner, and if the cycle continues, none of regional countries can have substantial security.” ("Chinese FM calls for intl community to unite behind cease-fire in Gaza," Global Times, 08 August 2024)
CHINA & THE AMERICAS
Democrat Tim Walz's links with China, says an editorial in BBC
On 08 July, an editorial in BBC titled “Walz has history with China - it's more hawkish than critics claim,” looked into Tim Walz background. The Republicans alleged that he is pro-China, Donald Trump's former ambassador to Germany, Richard Grenell, stated that No one is more pro-China than Marxist Walz, his relationship with China started in 1989 after college where he became a volunteer teaching American history and English at the Foshan No 1 High School in southern China. He later set up a business with his wife Gwen organising annual summer educational trips to China lasting for more than a decade at his estimation. As a congressman, he met the Dalai Lama and before getting jailed, spent over a decade in the Executive Commission examining the Chinese government’s human rights abuses. Mr Walz’s strong backing of the Hong Kong Human Rights and Democracy Act imposed prohibitions on Chinese and Hong Kong officials for human rights abuses during the city's democracy protests. A Weibo said: “Walz's "unique background gives him a real perspective on China", and he could "promote cultural exchanges when... relations are extremely difficult.” (“Walz has history with China - it's more hawkish than critics claim,” BBC, 08 August 2024)
US plans “more frequent” deployment of bomber aircrafts in Australia, reports The Guardian
On 07 August, The Guardian reported on the US deployments of bomber aircraft to Australia amid concerns over China’s behaviour in the region. The statement comes after increased rotations of American forces to Australia, along with an attempt to upgrade Australian military and pre-position US army equipment in Australia. The Australian Minister of Foreign Affairs Penny Wong travelled to the US for annual talks with the US Secretary of State, Antony Blinken, and Secretary of Defence, Lloyd Austin following a joint statement was issued on:“terrorism, the large-scale loss of civilian lives, and the humanitarian crisis in Gaza are all unacceptable.” The US State Department and the Australian Department of Foreign Affairs and Trade said: “they would launch a bilateral dialogue “on reducing the risk of conflict and upholding peace in the Indo-Pacific.” (US plans more frequent bomber deployments to Australia amid China’s ‘escalatory behaviour, The Guardian, 08 August 2024
China Reader Daily Wire | 07 August 2024, Wednesday | Vol.1 No. 142
OUTER SPACE
China to establish its own “Starlink”; launches 18 satellites, reports Global Times
On 06 August, Global Times reported that China took a significant step in the global satellite internet industry by successfully launching 18 Qianfan satellites. This marked the beginning of its version of Starlink. The Qianfan mega constellation project, also known as G60, aims to establish a network of over 15,000 low-Earth orbit satellites to provide high-quality communication services. Nanjing University of Aeronautics and Astronautics Professor Kang Guohua highlights the project’s potential to bridge the digital gap in remote areas. With ambitious goals to achieve regional coverage by 2025 and global coverage by 2027, Qianfan is set to compete with SpaceX’s Starlink. It currently has about 5,500 satellites in orbit. The project emphasises multimedia functionality and broadband capabilities to meet diverse user needs. As China’s commercial aerospace industry anticipates “explosive growth,” experts like Dai Zheng predict high-density satellite launches starting in late 2025 or early 2026. This development is expected to accelerate innovation in various sectors, including mobile technology, autonomous driving, and disaster prevention. (Fan Anqi, “‘Milestone event’: China launches first batch of satellites to establish ‘Chinese Starlink’,” Global Times, 06 August 2024)
CHINA & SOUTHEAST ASIA
"China-Cambodia Cultural Corridor" launched to promote tourism
On 06 August, the China-Cambodia Cultural Corridor, launched at Siem Reap Angkor International Airport, aims to promote cultural diversity and heritage between the two nations. The initiative features exhibitions of world heritage sites and intangible cultural heritage, including a “See 10 World Heritage Sites in 10 Days” tour plan. A Cambodian official Chhean Leang called it “another milestone in people-to-people and cultural exchanges.” The corridor aligns with the “Visit Siem Reap 2024” campaign. The Deputy Governor of Siem Reap Ngov Sengkak, also expressed confidence in the corridor’s positive impact on local tourism. Yunnan’s tourism department’s Wang Jianghong hopes the project will “innovate tourism products and services, and create a new pattern of cross-border tourism cooperation.” The event showcased performances by cultural heritage artists from both countries at Cambodia’s largest airport, which serves as the main gateway to the UNESCO-listed Angkor Archaeological Park. (“China-Cambodia cultural corridor injects energy into regional tourism,” Xinhua, 06 August 2024)
SCIENCE & TECHNOLOGY
Tesla recalls 1.7 million EVs from China to fix it, reports Reuters
On 06 August, Reuters reported Tesla conducted a significant recall in China, affecting 1.7 million vehicles across its Model S, X, 3, and Y lines. The issue stems from a potential safety hazard where the vehicles may fail to detect an unlocked front trunk lid. This recall will be executed remotely via an over-the-air software update. It will showcase Tesla’s advanced technological capabilities. China, Tesla’s second-largest market, will see both imported and locally manufactured vehicles undergo this update. The State Administration for Market Regulation announced this measure, highlighting the importance of addressing even software-based safety concerns in modern vehicles. (“Tesla to fix 1.7 mln vehicles in China, says market regulator,” Reuters, 06 August 2024)
INTERNAL
Xi Jinping calls for the preservation of Chinese cultural and natural heritage, reports CGTN
On 06 August, CGTN reported that Chinese President Xi Jinping called for increased efforts to protect and utilise China’s cultural and natural treasures following UNESCO’s recognition of three new World Heritage sites. The newly inscribed sites include the Beijing Central Axis, the Badain Jaran Desert, and Migratory Bird Sanctuaries along the Yellow Sea-Bohai Gulf coast. Xi stressed that this recognition “adds new luster to world civilizations” and aligns with China’s vision of modernisation that balances material and cultural-ethical advancement. He urged for the protection of these sites and their integration into meeting people’s needs. The President also emphasised the importance of international cooperation in heritage preservation, linking it to the Global Civilisation Initiative and the concept of “a community with a shared future for humanity.” With these additions, China now boasts 59 World Heritage sites. (“Xi Jinping stresses preserving China's cultural, natural heritage,” CGTN, 06 August 2024)
ECONOMY
China’s export growth slows amid global economic challenges, reports Reuters
On 07 August, Reuters reported that China’s export growth decelerated to 7.0 per cent in July. The growth fell short of expectations and raised concerns about the manufacturing sector’s outlook. This slowdown, as reported by customs data, reflects the growing pressures faced by Chinese factories due to Western tariffs and weakening demand. The chief economist at ING Lynn Song warns of “bigger pressure” on outbound shipments in the latter half of 2024. Surprisingly, imports saw a robust 7.2 per cent increase, partly attributed to Chinese firms stockpiling chips ahead of anticipated US export restrictions. The global economic landscape poses additional challenges for Chinese exporters, with many countries implementing tariffs and barriers on Chinese products. Capital Economics’ Zichun Huang noted, that lower export prices are squeezing manufacturers’ profit margins. Despite government efforts to stimulate domestic demand, including a 150 billion yuan subsidy for consumer goods replacement, the economy grew by only 4.7 per cent in the second quarter. This has prompted calls for more targeted stimulus measures to achieve the government’s 5 per cent annual growth target. (Liz Lee and Ellen Zhang, “China's imports resume growth but tamer exports raise outlook concerns,” Reuters, 07 August 2024)
EXTERNAL
Chinese swimmers face intense scrutiny amid record-breaking performances in the Olympics, says an editorial in CGTN
On 06 August, an editorial in CGTN reported that the 2024 Paris Olympics thrust Chinese swimmers into the spotlight, with their exceptional performances sparking both admiration and controversy. Despite facing intense scrutiny and doping allegations, Chinese athletes have undergone rigorous testing, surpassing their competitors in frequency. World Aquatics reported that since January 2024, Chinese swimmers have been tested an average of 21 times each, compared to 4 to 6 times for their rivals. This heightened vigilance comes in response to past controversies, including the 2021 incident involving 23 Chinese swimmers who tested positive due to accidental contamination. The situation has ignited heated debates, with figures like Adam Peaty and Michael Phelps voicing concerns about fair competition. However, Chinese athletes and fans have staunchly defended their achievements. Pan Zhanle, who set a new world record, expressed feeling “looked down on” by some foreign swimmers. Zhang Yufei questioned the double standards in scrutiny, comparing the treatment to that of Michael Phelps. Amidst the controversy, China has reaffirmed its commitment to anti-doping efforts. The Chinese government maintains a “zero-tolerance” policy, with plans to enhance its anti-doping system as part of its 2021-2025 sports development blueprint. International officials, including IOC’s Mark Adams and WADA board member David Lappartient, have acknowledged the extensive testing and lack of current violations among Chinese swimmers. (“Clean bill of health for Chinese swimmers: over 600 tests, zero violations,” CGTN, 06 August 2024; “'Our gold medals are squeaky clean' - China slams doping doubts,” BBC, 07 August 2024)
CHINA & THE PACIFIC
US and Australia to increase military cooperation over their China concerns
On 07 August, the US and Australia announced plans to increase their military cooperation, with more frequent deployments of US bomber aircraft to Australia. This decision made during annual talks between the two nations addresses concerns over China’s activities in the Indo-Pacific region. US Defense Secretary Lloyd Austin said: “We're also increasing the presence of rotational US forces in Australia.” This included more maritime patrol and reconnaissance aircraft operating from northern Australia. Australian Defence Minister Richard Marles emphasised that the American force in Australia now spans “every domain: land, sea, air, cyber and space.” The move is part of a broader strategy to enhance regional stability, with Marles noting that neighbouring countries appreciate the US presence. The joint statement also criticised China’s “dangerous and escalatory behavior” in the South China Sea. However, both nations stressed the importance of maintaining open communication channels with China to prevent miscalculations. While some analysts warn of potential risks associated with increased US military presence in Australia, the two countries view this cooperation as crucial for regional security and stability. (Daniel Hurst, “US plans more frequent bomber deployments to Australia amid China’s ‘escalatory behaviour’,” The Guardian, 07 August 2024)
CHINA & SOUTHEAST ASIA
China and Indonesia align efforts to resolve Ukraine crisis
On 06 August, China’s special representative on Eurasian affairs Li Hui met with the Director General for American and European Affairs of the Ministry of Foreign Affairs of Indonesia Umar Hadi to discuss the ongoing Ukraine crisis. Li emphasised the need for international cooperation to de-escalate the situation, citing the risks of further conflict. He highlighted the positive reception of China and Brazil’s six common understandings for a political settlement. Li expressed China’s willingness to collaborate with Indonesia, invoking the Five Principles of Peaceful Coexistence and the Bandung Spirit to facilitate direct negotiations between relevant parties. Hadi commended China’s leadership in seeking a political resolution and appreciated the six common understandings. He affirmed Indonesia’s commitment to working alongside China and other stakeholders to find a solution to the crisis. (“China, Indonesia vow efforts to promote settlement of Ukraine crisis,” CGTN, 06 August 2024)
CHINA & SOUTH ASIA
Chinese Internet users voice support to Bangladeshi protesters, reports VOA
On 06 August, VOA reported on China losing the Prime Minister of its friendly neighbour. Bangladesh’s long-serving Prime Minister Sheikh Hasina resigned under pressure, she had signed 28 bilateral agreements with China. The Chinese social media platforms praised the efforts taken by students to compel the prime minister to resign. A Weibo user said: “At a moment when democracy and equality were faced with sustained and serious setbacks, the heroic people of Bangladesh used their lives and blood to turn the tide around. The world’s civilisations may be diverse, but they only have one path forward. Best wishes to the Bengalis.” After Hasina fled, The Army Chief of Staff General Waker-Uz-Zaman addressed the people of Bangladesh, ensuring that the military would investigate the manage the ongoing chaos. Another Weibo user said: “A handful of ambitious people, plus a small group of mindless fanatics, has shaped and destroyed the fate of everyone. The only way to avoid this result is through iron-fist rule by a party representative of the people. Democracy and freedom accelerate a country’s self-destruction. They are the worst political system.” (Chinese internet users praise Bangladesh protesters, military, VOA, 07 August, 2024)
CHINA & AFRICA
Africa-China call for “Peace Unity-2024” at their joint drill, reports Global Times
On 06 August, Global Times reported on PLA’s joint military exercises in the African countries, focusing on improving counter-terrorism and counter-piracy competencies. The joint exercises in Africa progressed smoothly, with a Chinese warship kicking off a joint naval drill in Mozambique on 06 August, followed by two other Chinese vessels completing the drills with Tanzania earlier on 05 August. The Qilianshan, PLA Navy's Type 071 landing ship will join the Peace Unity-2024 joint exercises from 06 August to 08 August. The Peace Unity-2024 banner holds the joint naval exercise with Mozambique followed by the joint naval exercises with Tanzania. The Chinese Military Expert said: “The joint drills will help African countries enhance their counter-terrorism and counter-piracy capabilities, which is conducive to peace and stability in the region.” (PLA continues Peace Unity-2024 exercises in Africa, Global Times,07 August 2024)
CHINA & THE AMERICAS
White House welcomes Chinese regulations on fentanyl, reports Reuters
On 06 August, Reuters reported on White House remarks on the Chinese controls and regulations to curb usage of illicit fentanyl. The White House further stated that the Chinese move was a “valuable step forward.’ National Security Council Spokesperson said: “It is the third significant such action since the United States and China resumed bilateral counter-narcotics cooperation in November 2023.” The illicit fentanyl remains a potent issue for the Biden administration which clinches for a favourable result in the Presidential Election. A US congressional committee said: “that China was directly subsidizing production of illicit fentanyl precursors for sale abroad and fueling the U.S. opioid crisis, releasing findings from an investigation it said unveiled Beijing's incentives for the deadly chemicals.” (China to beef up regulations on fentanyl chemicals, White House says, Reuters, 07 August 2024)
Fake pro-democracy Chinese agent convicted by the US court, reports SCMP
On 07 August, SCMP reported on New York’s Federal Jury’s verdict for naturalised US citizen Wang Shujun, helping a pro-democracy group. The Prosecutors claimed that Wang lived a double life on behalf of China’s intelligence. The prosecutor further said: “He held himself out as a critic of the Chinese government so that he could build rapport with people who actually opposed it, then betrayed their trust by telling Beijing what they said and planned.” Brooklyn-based US lawyer Breon Peace said: “The indictment could have been the plot of a spy novel, but the evidence is shockingly real that the defendant was a secret agent for the Chinese government.” The jury felt they had credible evidence to convict him, even though no evidence caused any harm. Wang, aged 75 was convicted of spying and acting as a foreign agent without reporting to the attorney general and charged with imprisonment for 25 years. The Chinese embassy in Washington denied China’s interference in other country's internal activities; stands by international law and respects the sovereignty of foreign soil. (Pro-democracy activist’ convicted in US of acting as a covert Chinese agent, South China Morning Post, 07 August, 2024)
Brazil considering to join BRI, reports SCMP
On 07 August, SCMP reported on the China-Brazil Business Council event marking the 50th anniversary in advance of both countries. Beijing's ambassador to Brasilia Zhu Qingqiao stated that the country ponders on what it could gain by joining hands with China on the infrastructure and trade project. Zhu said: “If Brazil were to join the BRI it would be a “demonstration of stability” in the two countries’ “long-term cooperative relationship.” In addition, the SCMP stated a highly consistent development strategy with the Lula Government. In regards to the Belt Road Initiative, Zhu hinted at the benefits that it could reap including the funding for work, water port, and Brazil’s connection to the Pacific Ocean. Furthermore, the SCMP reported on considerable tension in Washington amid Chinese influence over Brazil and Latin America. The chief of US Southern Command Laura Richardson warned that Brazil could join the BRI initiative, perhaps it is aware of the conditions imposed by China. (Chinese ambassador to Brazil pitches Belt and Road membership as ‘fundamental measure’, South China Morning Post, 07 August 2024)
China Reader Daily Wire | 06 August 2024, Tuesday | Vol.1 No. 141
CHINA & EUROPE
TikTok agrees to remove controversial rewards feature under EU pressure, says an editorial in SCMP
On 05 August, an editorial in the South China Morning Post reported that TikTok has agreed to permanently withdraw its controversial rewards program from the TikTok Lite app in France and Spain. This marks the first case resolved under the European Union’s Digital Services Act (DSA). The program, which incentivised users to spend more time on the platform, raised concerns about potential addiction and negative impacts on young users’ mental health. EU Internal Market Commissioner Thierry Breton emphasised: “The available brain time of young Europeans is not a currency for social media.” While TikTok has not admitted any wrongdoing or faced fines, this “commitment” settlement demonstrates the DSA’s effectiveness in addressing digital platform issues. The European Commission launched an investigation in April, focusing on the program’s potential to encourage excessive screen time, particularly among minors. A separate inquiry into TikTok's main app algorithm is ongoing. This case highlights the EU’s increasing scrutiny of Chinese-owned tech companies, including AliExpress and Shein. (Finbarr Bermingham, “TikTok to remove Lite app rewards programme targeted in landmark European Union DSA case,” South China Morning Post, 05 August 2024)
CHINA & SOUTH ASIA
Indian steel industry faces threat from cheap Chinese imports, says Tata Steel managing director
On 04 August, Managing Director of Tata Steel T V Narendran raised concerns about China potentially routing cheaper steel into India through Southeast Asian countries. This practice could undermine significant investments made by Indian steel companies. Narendran urged the government to protect the industry from cheap imports and said: “Do not let it get derailed by imports coming in at predatory prices.” India’s steel imports rose by 38.1 per cent in FY24, while exports only increased by 11 per cent. This imbalance has led to pressure on domestic prices. Narendran highlighted that Chinese steel is often sold at loss-making prices, distorting market competition. The situation mirrors global concerns, with the US recently imposing tariffs on Chinese steel products and preventing circumvention through Mexico. Narendran emphasised the need to safeguard India’s vibrant steel market and willingness to invest in the sector. (Suresh P. Iyengar, “China routing cheap steel imports via South East countries could derail Indian steel investments: TV Narendran,” Business Line, 04 August 2024)
ECONOMY
16 out of 31 Chinese provinces surpass the national GDP growth average
On 05 August, China’s provinces demonstrated diverse economic performance, with 16 out of 31 regions surpassing the national GDP growth average of 5 per cent for the first half of 2024. Inner Mongolia led with a 6.2 per cent growth rate, closely followed by Chongqing and Xizang at 6.1 per cent each. Guangdong, Jiangsu, and Shandong remained economic powerhouses, each exceeding 2 trillion yuan in output. The Western region showcased remarkable progress in foreign trade, recording a 10.2 per cent increase to 1.93 trillion yuan. Hainan’s trade with Belt and Road countries surged by 40.2 per cent year-on-year. Key economic zones, including the Beijing-Tianjin-Hebei region, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area, continued to drive national growth, contributing over 40 per cent to the country’s GDP. These areas have been instrumental in fostering new quality productive forces, with significant growth in industries like biomedicine, AI, and new energy vehicles. The head of the NDRC Zheng Shanjie, emphasised the importance of innovation and tailored industry transformations to cultivate these new productive forces, underlining China’s focus on sustainable and innovative economic development. (“Half of China's provincial-level regions post GDP growth rates above 5% in H1 2024,” CGTN, 05 August 2024)
INTERNAL
New International Land-Sea Trade Corridor boosts China’s Western regions, reports CGTN
On 06 August, CGTN reported that the New International Land-Sea Trade Corridor, launched in 2017, has significantly expanded China’s trade network. Presently it connects 523 ports across 124 countries and regions. This logistics passage, linking western China with ASEAN members, has seen remarkable growth over the past five years. The operational hub, Chongqing has experienced consistent annual freight volume increases, ranging from 21 per cent to 54 per cent year-on-year since 2019. The corridor’s scope has broadened which now transports over 1,150 types of goods compared to just 80 initially. It has facilitated the export of regional specialities from western China, such as Ningxia’s goji berry juice and Chongqing’s oranges. It also imports Southeast Asian products like Thai durians. The corridor has supported over 30,000 China-Europe freight train operations, achieving a near-balance in inbound and outbound shipments. (“New International Land-Sea Trade Corridor connects 523 ports worldwide,” CGTN, 06 August 2024)
China’s state-run funeral industry riddled with corruption, an editorial in SCMP
On 06 August, an editorial in the South China Morning Post reported that China’s state-run funeral industry has become the latest focus of anti-corruption efforts, with investigations spanning multiple provinces. Recent cases include the detention of Zhang Duo in Huainan for “suspected serious violations of discipline and law,” a common euphemism for corruption. The industry, largely monopolised and directly supervised by civil affairs authorities, has long been plagued by opaque pricing and substandard services. In Benxi, Liaoning province, funeral centre staff faced disciplinary action for soliciting illegal tips. Meanwhile, the former director of Huinan County Funeral Home in Jilin Lu Wanjun was expelled from the Communist Party and faces criminal charges for fraudulent service billing. These investigations align with President Xi Jinping’s call to combat corruption affecting everyday citizens. The funeral industry, worth 258 billion yuan in 2020, has seen various forms of misconduct, including overpriced services and bribery. A 2015 Xinhua investigation revealed cases of funeral homes partnering with suppliers for kickbacks and issuing fake cremation certificates. (William Zheng, “China’s anti-corruption squads target funeral officials making a killing from the dead,” South China Morning Post, 06 August)
China’s ethnic affairs official criticised “self-centered” artworks about ethnic minorities, reports SCMP
On 05 August, South China Morning Post reported that the director of China's National Ethnic Affairs Commission Pan Yue criticised “self-centered” artworks about ethnic minorities. He also urged creators to focus on a common national identity. In a recent speech, Pan expressed concern over the influence of “Western multicultural theorie” on minority artworks, which he claims isolates social groups and creates binary oppositions.
Pan specifically criticised a Tibetan-language film for neglecting to credit the Communist Party’s infrastructure developments. He emphasised that the primary criterion for evaluating ethnic literature should be its contribution to strengthening “the sense of community for the Chinese nation.” The official’s remarks align with President Xi Jinping’s “community of the Chinese nation” policy, which prioritises national unity over ethnic differences. Pan dismissed Western portrayals of China’s efforts as “ethnic assimilation” or “cultural eradication,” insisting that all ethnic minorities are “co-creators of Chinese civilisation.” Pan called on minority filmmakers and authors to create stories that resonate with both personal histories and the national narrative promoted by the Communist Party, warning that failure to do so could allow “falsehoods” to overshadow “the true story of the Chinese nation.” (Xinlu Liang, “China’s ethnic policy chief says minority artists must focus on common national identity,” South China Morning Post, 05 August 2024)
ECONOMY
Evergrande liquidators pursue USD 6 billion in recovery
On 05 August, China Evergrande Group’s liquidators initiated legal proceedings to recover approximately USD 6 billion from seven defendants, including founder Hui Ka Yan and former executives. The action stems from alleged misstated financial statements between 2017 and 2020. Injunctions have been obtained against Hui, his former spouse Ding Yumei, and former CEO Xia Haijun, restricting their ability to dispose of assets worldwide. This development follows the Hong Kong High Court’s order to liquidate Evergrande in January after the company failed to present a viable restructuring plan for its USD 23 billion offshore debt. The China Securities Regulatory Commission previously found that Evergrande’s onshore unit had overstated revenue by 564 billion yuan over two years. Joint liquidators Edward Middleton and Tiffany Wong cautioned that the outcome of these proceedings remains uncertain. Meanwhile, Evergrande's shares continue to be suspended from trading. (“Evergrande aims to recover $6 bln from founder Hui, former top execs,” Reuters, 06 August 2024)
CHINA & SOUTHEAST ASIA
Cambodian Prime Minister on China-backed canal project said: “We will build this canal, no matter the cost”
On 05 August, Cambodia initiated construction on the controversial USD 1.7 billion Funan Techo canal. This is a China-funded project to connect Phnom Penh to the Gulf of Thailand. This 180-kilometre waterway designed to reduce Cambodia’s reliance on Vietnamese ports, has raised environmental and diplomatic concerns. The project underscores China’s significant influence on Cambodia’s economy and politics. Prime Minister Hun Manet emphasised the canal’s importance and said: “We will build this canal, no matter the cost.” However, Vietnam has expressed quiet concerns about potential impacts on its Mekong Delta rice production and trade routes. Environmental experts, including the Stimson Center, warn of “significant transboundary impacts” on water availability and agriculture in Vietnam. The canal project reflects Cambodia’s complex relationships with its neighbours and China. Nearly 40 per cent of Cambodia’s USD 11 billion foreign debt is owed to China, which has funded numerous infrastructure projects in the country. This close relationship has raised concerns among other Southeast Asian nations and the US. This is in particular, potential military implications, such as the expansion of the Ream Naval Base. (Sopheng Cheang And Aniruddha Ghosal, “Cambodia breaks ground on a China-funded canal and says it will be built ‘no matter the cost’,” AP News, 06 August 2024)
CHINA & THE AMERICAS
China key trade importer of beef from Latin America and the Caribbean, says an editorial in SCMP
On 06 August, an editorial in SCMP reported that China has become the key trading partner for Latin America and Caribbean nations for frozen beef. Boston University’s Global Development Policy Centre said: “mainly from Brazil, Argentina and Uruguay – to China had doubled in volume in the past five years and roughly quintupled in the past decade.” China’s beef imports grew about a quarter of a million tonnes a decade ago, enhanced by many new trade agreements, that the Chinese have signed with Latin and Caribbean countries, while the increase has concerned ecological harm from China’s agricultural demand. However, the Chinese meat industry has implemented a zero-deforestation assurance for its purchases. According to a Boston University study, Chinese imports of beef from LAC nations witnessed a sudden incline from 2018, when Beijing raised tariffs on agricultural imports from the United States in response to Washington’s move to impose tariffs on Chinese products. (“China spends big on beef from Latin America-Caribbean as copper drops among exports,” South China Morning Post, 06 August, 2024)
China stockpiles Samsung chips expecting US curbs on trade, reports Reuters
On 06 August, Reuters reported on storing high bandwidth memory (HBM) semiconductors from Samsung Electronics in expectation of US curbs on exports of the chips to China. Companies like Huawei and Baidu have geared up to buy artificial intelligence (AI) capable semiconductors accounting for about 30 per cent of Samsung's revenue. The attempt shows how China keeps its technology desires on track amid rising trade tensions with the US, subsequently impacting the global semiconductor supply chain. The US has planned an export control package which will impose new restrictions on consignments of the Chinese semiconductor industry. In addition, Reuters said: “Chinese firms have made some headway in producing HBM, with Huawei and memory chipmaker CXMT focusing on developing HBM2 chips, which are three generations behind the HBM3E model.” (Chinese firms stockpile high-end Samsung chips as they await new US curbs, say sources,” Reuters, 06 August, 2024)
China Reader Daily Wire | 05 August 2024, Monday | Vol.1 No. 140
CHINA & AFRICA
China enhances military ties with Africa through Joint Counterterrorism Drill, reports SCMP
On 04 August, the South China Morning Post reported that China, Tanzania, and Mozambique had commenced a trilateral counterterrorism exercise named “Peace Unity-2024.” This marked Beijing’s renewed focus on military diplomacy in Africa. The drill, set to run until mid-August, involves ground units from the People’s Liberation Army (PLA) Central Theatre Command and a naval flotilla from the Southern Theatre Command. The exercise encompasses a range of operations, including anti-piracy patrols, boarding and seizure techniques, and joint maritime patrols. A China specialist at the National Defence University’s Africa Centre for Strategic Studies in Washington, Paul Nantulya describes this as a “blended approach” combining military, diplomatic, and cultural engagement. The drill serves multiple purposes for China, including strengthening political ties, showcasing military assets, and testing new equipment. For African nations, it offers professional training and alternative defence partnerships. (Jevans Nyabiage, “China’s drills with Tanzania and Mozambique show ‘blended approach’ to military diplomacy,” South China Morning Post, 04 August 2024)
CHINA & THE MIDDLE EAST
China-Saudi Arabia financial synergy boosts new deals with the PIF, reports CGTN
On 05 August, the CGTN reported on China and Saudi Arabia's deal to bolster the financial sector collaboration with a new set of international agreements. This attempt marks a strategic fulcrum in reshaping the economic landscapes of both nations. On 01 August the Public Investment Fund (PIF), of Saudi Arabia signed memorandums of understanding (MOUs) with six major Chinese financial institutions worth USD 50 billion in total, enhancing the bilateral collaborations in the financial sector. In addition, the CGTN reported that the Chinese financial influence in the Middle East makes a parallel with the Belt and Road Initiative. The idea behind the local currency settlements in bilateral trade could reduce dependence on the US dollar modifying exchange rate risks. Besides, both nations navigate the intricacies of the global economy, their enhanced financial collaborations could serve as a model for the future emphasizing the importance of strategic economies in a unified global market. (“Saudi PIF's new deals turbocharge financial synergy with China,” CGTN, 05 August, 2024)
INTERNAL
Chinese State Council reveals plan to boost consumer services and economic growth
On 03 August, China released a comprehensive guideline for improving consumer services to drive high-quality economic development. The State Council’s document outlines 20 key tasks, focusing on expanding consumption in various sectors including hospitality, elderly care, and tourism. The plan focuses on fostering new consumption types such as digital and green services, while relaxing market access and improving regulation. China aims to open up sectors like telecommunications and education, optimise entry policies, and explore visa-free options for more countries. This initiative aligns with China’s broader strategy to boost domestic demand, with service consumption playing a crucial role. The country’s retail services sales have already shown promising growth, increasing by 7.5 per cent in the first half of 2024, outpacing goods consumption by 4.3 percentage points. (“China moves to advance high-quality development of service consumption,” CGTN, 04 August 2024)
EXTERNAL
International airlines retreat from China, an opinion in The Diplomat
On 03 August, an opinion piece in The Diplomat noted that several major international airlines are scaling back or eliminating direct flights to mainland China. Virgin Atlantic and Qantas have both suspended their routes to Shanghai, with Virgin citing increased costs due to longer flight times caused by Russian airspace restrictions. Qantas pointed to weak demand, potentially linked to Australia-China tensions. India, meanwhile, has maintained its suspension of direct flights to China since 2020 due to ongoing border disputes, despite thriving bilateral trade. These decisions reflect broader challenges in China’s international relationships and may impact its global connectivity. As one Chinese source noted, these airline withdrawals might inadvertently align with China's tendency to “keep our people at home.” The situation potentially influences foreign investment patterns and reinforces China’s inward-looking tendencies. However, the impact varies across countries, with some maintaining strong economic ties despite diplomatic tensions. (Bonnie Girard, “International Airlines Leave China, Despite Beijing’s Urging,” The Diplomat, 03 August 2024)
CHINA & TAIWAN
Taiwan struggles to bolster military readiness against China, an editorial in The Washington Post
On 03 August, an editorial in The Washington Post reported that Taiwan faces significant challenges in strengthening its military capabilities as tensions with China escalate. President Lai Ching-te’s administration is grappling with low recruitment numbers and inadequate training for reservists. Only 6 per cent of eligible conscripts participated in the new 12-month program this year, with most deferring service for university education. The defence ministry acknowledges shortages in equipment and instructors, hampering efforts to professionalise reservist training. These shortcomings are particularly concerning given China’s growing military presence around Taiwan. A former US deputy national security adviser Matt Pottinger noted: “The last thing that Taiwan wants is for Xi Jinping... and the United States... to doubt Taiwan's commitments to its defense.” Public sentiment is mixed, with many supporting extended mandatory service but questioning its effectiveness. A reservist Cony Hsieh expressed uncertainty about her role in a potential conflict: “I don't even know what I’m supposed to do in my position if a war breaks out.” The situation is further complicated by potential changes in US support, especially if Donald Trump wins the 2024 election. (Christian Shepherd and Vic Chiang, “Taiwan is readying citizens for a Chinese invasion. It’s not going well.” The Washington Post, 03 August 2024)
China escalates drone activity around Taiwan amid regional tensions
On 03 August, Taiwan reported unprecedented drone operations by China’s People’s Liberation Army (PLA). Two unmanned aerial vehicles circled the island for approximately nine hours, coming as close as 43 nautical miles to Taiwan’s southernmost point. This activity coincided with joint exercises between Japan and the Philippines in nearby waters, potentially signalling a strategic response from Beijing. Taiwan’s Ministry of National Defence detected a total of 36 PLA aircraft and 12 vessels in 24 hours, with 31 aircraft crossing the median line of the Taiwan Strait. A senior fellow at Singapore's S. Rajaratnam School of International Studies Collin Koh, noted the rarity of such extensive drone operations, suggesting an “intensification of its ISR missions targeted at Taiwan.” Military commentator Song Zhongping speculated that the drones were likely conducting reconnaissance, possibly gathering intelligence on the Japan-Philippines exercise. (Hayley Wong, “Taiwan says PLA drones circled for hours, after Japan-Philippine naval drills nearby,” South China Morning Post, 04 August 2024)
CHINA & SOUTHEAST ASIA
Malaysia sees surge of Chinese residents, an editorial in Financial Times
On 05 August, an editorial in the Financial Times reported that Malaysia is experiencing a significant influx of Chinese citizens, with their numbers nearly doubling in the past three years. A director at the University of Malaya's Institute of China Studies Ngeow Chow Bing, estimates the current Chinese population in Malaysia at 150,000 to 200,000, up from 82,000 in 2022. This surge is driven by students, investors, and middle-class families seeking affordable destinations and escaping perceived anti-China sentiment in Western countries.Educational institutions report a substantial increase in Chinese enrollments. In 2023, Malaysian universities hosted 44,043 Chinese students, a 35 per cent rise from 2021. Moreover, Chinese holders of Malaysia My Second Home long-stay visas have doubled to over 56,000. The influx also includes Chinese investors and entrepreneurs, with an estimated 45,000 owners, managers, and workers of Chinese companies now in Malaysia, up from 10,000 in 2021. (Kathrin Hille, “Chinese emigration to Malaysia doubles on student and investment surge,” Financial Times, 05 August 2024)
Chinese coast guard monitors Philippines vessels
On 05 August, the Chinese coast guard reported monitoring Philippine vessels near the contested Sabina Shoal in the South China Sea. Spokesperson Gan Yu claimed China’s “indisputable sovereignty” over the area, part of the disputed Spratly Islands. The Chinese authorities allege that a Philippine ship is “illegally stranded” at the shoal, violating China’s territorial rights and undermining regional stability. Philippine patrol boats and fishing vessels have reportedly gathered near the stranded ship, escalating tensions. The shoal, known as Xianbin Reef to China and Escoda Shoal to the Philippines, exemplifies the ongoing maritime disputes in the region. (“China coast guard monitors Philippine patrol boats in Sabina Shoal,” Reuters, 05 August 2024)
CHINA & THE PACIFIC
China-Australia relations: navigating a delicate balance of pragmatism and principle, an opinion in East Asia Forum
On 02 August, an opinion piece in the East Asia Forum stated that Chinese Premier Li Qiang’s visit to Australia in June 2024, signalled a thaw in bilateral relations after years of tension. This diplomatic milestone, the first such visit in seven years, followed Australian Prime Minister Anthony Albanese’s trip to China in 2023. The renewed engagement reflects a mutual recognition of the benefits of stability in their relationship. Albanese’s approach of cooperating while maintaining principled disagreements has yielded tangible results. Two-way trade increased by 10 per cent in 2023, reaching AUD 326.9 billion, with services exports to China surging by 53.4 per cent. China’s lifting of trade restrictions on key Australian exports further eased economic tensions. However, the author stated that challenges persist. Australia must balance its alliance with the United States against its economic ties with China, especially as global trade dynamics shift. Concerns over human rights, regional security, and Chinese influence in Australia remain potential flashpoints. Despite these hurdles, both nations appear committed to pragmatic engagement. As China seeks to counter perceptions of diplomatic isolation and Australia aims to diversify its trade partnerships, their evolving relationship underscores the complex interplay of economics, diplomacy, and strategic interests in the Asia-Pacific region. (Zhuowen Li, “Recalibrating Australia–China relations,” East Asia Forum, 02 August 2024)
CHINA & SOUTH ASIA
India grapples with Chinese investment dilemma, an opinion in the ORF
On 02 August, an opinion piece in the ORF noted that India’s Economic Survey 2023-24 sparked controversy by suggesting that Chinese Foreign Direct Investment (FDI) could boost India’s participation in global supply chains. This recommendation contrasted sharply with India’s current stance, implemented in 2020, which requires government approval for investments from countries sharing land borders with India. Commerce Minister Piyush Goyal swiftly clarified that there is no rethinking Chinese investments, emphasising the survey’s role in proposing novel solutions. However, the debate highlighted India’s complex relationship with Chinese capital. Despite booming trade, Chinese investment accounts for a mere 0.37 per cent of total FDI inflow between April 2000 and March 2024. Some economists argue that India’s approach, unlike the US’s targeted “small yard, high fence” strategy, treats all Chinese capital with suspicion. This stance potentially hinders India’s growth, particularly in sectors like renewable energy where China dominates critical mineral processing. As India prioritizes job creation and reducing inequality, there is a growing call for a nuanced, whole-of-government approach to Chinese FDI. The NITI Aayog vice-chair has advocated for clearer guidelines, citing the current case-by-case review as time-consuming and potentially detrimental to India’s economic ambitions. (Harsh V. Pant and Kalpit A Mankikar, “Time for a nuanced debate on Chinese FDI,” ORF, 02 August 2024)
CHINA & THE MIDDLE EAST
China donates USD 3 million through the UN to Gaza, reports CGTN
On 05 August, the CGTN reported on a Chinese donation of USD 3 million to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) to support humanitarian efforts in Gaza. The People’s Republic of China’s Head of Office Zeng Jixin signed the agreement with Deputy Commissioner General (of the UNRWA Antonia Marie De Meo, In a statement Zeng said: “China had provided emergency cash assistance to the agency after the outbreak of the Gaza conflict last year and will continue to implement the Global Security Initiative works with the international community to end the fighting in Gaza at an early date, ease the disastrous humanitarian situation, and implement the two-state solution.” (“China donates $3 million to UN agency for aid in Gaza,” CGTN, 05 August 2024)
CHINA & THE AMERICAS
China with Maduro over his presidential election victory, reports VOA
On 03 August, the VOA reported on widespread protests and drew criticism internationally over Venezuela's presidential election results. China and Russia swiftly endorsed the new Venezuela president, while the US had its support behind it. The council invited the Carter Centre as an observer, the Carter Centre claimed that the poll did not meet international standards of electoral integrity and could not be considered democratic. In addition, the VOA stated the expression of rejection of most Latin American countries over the election results. The Chinese President Xi Jinping later added that Maduro was focused on national development and progress hence China would stand by Venezuela’s efforts in safeguarding the national sovereignty. Maduro and Xi signed an “all-weather strategic partnership” last September strengthening the bilateral relationship and subsequently joined the Belt and Road Initiative project. China has a substantial loan portfolio with Venezuela, estimating USD 60 billion worth of projects. (“China stands by Maduro in Venezuela to safeguard its investments,” VOA, 05 August, 2024)
Stunning rise of Chinese money launderers, an editorial on NBC News
On 03 August, an editorial in NBC News titled “Marijuana and Mexican cartels: Inside the stunning rise of Chinese money launderers,” looked into the career of federal drug agent, Ray Donovan having a singular focus of capturing the Mexican Cartel Boss Joaquin “EL Chapo” Guzman. During the rise of Fentanyl Trafficking at its peak in the US Guzman was arrested, and Donovan found a new project by enlisting a data scientist to map out the fentanyl networks operating on the East Coast by viewing the telephonic records of suspected traffickers. In 2015 Donovan diverted himself to El Chapo digging into the fentanyl trade had made another significant discovery, as the Chinese brokers currently started to launder marijuana across the US. The Chinese marijuana producers operated with liberty when US enforcement agencies focused on busting fentanyl traffickers and suppliers. A former CIA Officer and Chinese Expert Dennis Wilder said: “American authorities must investigate whether some amount of the illicit cash is flowing to China’s powerful spy agency.” Since 2023, 31 people have been charged by Federal prosecutors in cases linked to Chinese groups suspected of laundering cartel drug money. (“Marijuana and Mexican cartels: Inside the stunning rise of Chinese money launderers,” NBC News, 05 August, 2024)
Despite uncertainty China promises jobs in North Michigan, reports The Associated Press
On 05 August, The Associated Press reported about the biggest-ever economic development project by the China based lithium-ion battery company. The company plans to build USD 2.36 Billion factories and provide thousands of jobs in North Michigan. The US suspicion of China united with Chinese technological competitiveness, intimidates to break ties between the two larger economies. The Professor of political science and international relations at Bucknell University said: “The main reason is U.S.-China rivalry, and the U.S. government prioritizes ‘national security’ over economic interests in dealing with China.” Joe Biden’s administration tries to boost US technological capabilities, while many politicians believe that Chinese companies should be kept away. The Michigan Economic Development Corporation stated that it has received “bipartisan support at all levels” creating up to 2,350 jobs. (“Chinese businesses hoping to expand in the US and bring jobs face uncertainty and suspicion,” The Associated Press, 05 August 2024)
China Reader Daily Wire | 03 August 2024, August | Vol.1 No. 139
CHINA & THE AMERICAS
US sues TikTok and ByteDance for violating Children’s Online Privacy Protection Act
On 02 August, the US Justice Department and Federal Trade Commission took legal action against TikTok and its parent company ByteDance. The department filed a civil suit accusing them of failing to protect children’s privacy. The government stated that TikTok which has over 170 million US users has violated the law as it collected and disclosed personal data and information of minors under the age of 13 without parental permission. The department accused TikTok of knowingly allowing children to create accounts on the app and even retain their personal information by letting them make regular accounts, also refusing to honor account deleting requests by concerned parents. In 2019, the government also sued Musically a popular social media platform for violating the law Children’s Online Privacy Protection Act (COPPA). US Associate Attorney General Benjamin C. Mizer said: “The department is deeply concerned that TikTok has continued to collect and retain children’s personal information despite a court order barring such conduct.” (“US sues TikTok and China’s ByteDance, claiming they failed to protect children’s privacy,” SCMP, 03 August 2024)
SCIENCE & TECHNOLOGY
China proposes the integration and advancement of AI technology
On 03 August, CGTN reported that the Chinese government has come up with several policy combinations and recommendations to boost AI development. Ministry of Industry and Information Technology released a guideline with six other ministries calling for future developments of industries. They referred to emerging industries that could integrate advanced technologies, like the Metaverse, humanoid robots, and brain-computer interfaces with quantum information. In March, they also proposed integrating AI technology into educational systems and developing special AI models for teaching and learning. Head of the Artificial Intelligence Research Institute Wei Kai said: “We have numerous scenarios in various industries that need these technologies to empower. We need to address all kinds of issues in the industrial implementation of large models, such as data governance, platform construction, and computing power layout to lay a solid foundation for the sustainable development of AI.” (“China steps up policy support for AI development,” CGTN, 03 August 2024)
ENERGY & ENVIRONMENT
China to include carbon emission as part of their national economic and social goal
On 02 August, the Chinese General Office of the State Council announced that they will incorporate carbon emission targets as part of their national economic and social development goal. The aim is to build a mechanism to control the total emission amount and the intensity of carbon emission. The plan reckons that by 2025, China’s capacity to account for, monitor, and measure carbon emissions will improve. The plan said: “China will establish mechanisms focusing on curbing the intensity of carbon emissions during the 15th Five-Year Plan period (2026-2030). After peaking carbon emissions, the focus of the mechanisms will be shifted towards controlling the total amount of emissions.” The plan also proposed to establish a local emission assessment system and to further early warning mechanisms. (“China to incorporate carbon targets into development plans,” CGTN, 03 August 2024)
INTERNAL
Death toll from the bridge collapse rises to 38, reports Xinhua
On 02 August, Chinese state media Xinhua reported that the death toll after the highway bridge collapse in northern China has climbed to 38. The Bridge collapse was due to heavy rainfall in the region currently there are 24 who are still missing. The bridge collapsed on 19 July due to a sudden downpour of floods. China is enduring extreme weather conditions; first, it faced heavy rains across the east and southern regions of China and is now facing scorching sun and heat waves. Within this week the heavy rains have claimed 30 lives. Additionally, July has been the hottest month for China in the last six decades. (“Death toll in China bridge collapse rises to 38, with 24 missing,” 03 August 2024)
New Chinese regulation to help veterans find jobs after service, reports SCMP
On 02 August, SCMP reported that China will announce new legislation that would help veterans to kick-start business and further their education. The initiative comes after there was sizeable social pressure to improve welfare mechanisms for military personnel who are transitioning to civilian life. For veterans, the state would ask institutions to relax age and education requirements for hiring. Additionally, the veterans will be given preference when they are competing with and against others. Chinese Central Military Commission and the State Council have updated the regulation and the rules will come into effect by 01 September. The regulations state that the institution that hires these veterans must not raise their hiring conditions or requirements above what the government has mandated. Any violation will lead to disciplinary actions imposed against these state institutions. The regulation also encourages the veterans to start their businesses with the support of government initiatives. The rules also outline new training and educational opportunities for veterans so they can learn the necessary skills to perform their jobs. With opportunities come requirements that the veterans need to follow to access these opportunities, they need to maintain; military secrets, promote and uphold glorious traditions, and proper conduct in the PLA. The initiative was announced just three days after Chinese President Xi Jinping called to support the veterans to find work after they leave the military. Xi said: “[We must] let military service be a profession that is respected by the whole society, and let our veterans become among the most respected people in society.” China also saw years of protests by veterans due to the social problems they faced after they left the military since then there have been active measures taken by the Chinese government to provide for the veterans. (“China rolls out new rules to help veterans find jobs and start businesses,” SCMP, 02 August 2024)
CHINA & THE AMERICAS
Florida attorney pleads guilty to Chinese embassy bombing
On 02 August, Florida man pleaded guilty to a series of explosive-related crimes targeting Chinese interests and communist symbols. Christopher Rodriguez, a 45-year-old attorney from Panama City was the detainee. In September 2023, Rodriguez attempted to detonate a backpack containing 15 pounds of explosives near the Chinese embassy in Washington DC. He tried to trigger the explosion by shooting at the backpack with a rifle however missed his target. In November 2022, Rodriguez successfully bombed a sculpture of Vladimir Lenin and Mao Zedong outside the Texas Public Radio building in San Antonio. He scaled an eight-foot fence, placed explosives on the sculpture’s base, and detonated them from a nearby roof, causing significant damage. Rodriguez has admitted to three charges of damaging property occupied by a foreign government, damaging federal property with explosives, and possessing an unregistered firearm. Under his plea agreement, prosecutors recommend a sentence of seven to ten years in prison. Chief Judge James Boasberg is scheduled to deliver the final sentence on October 28 in Washington. (“Florida lawyer pleads guilty to Chinese embassy bombing attempt in DC,” The Guardian, 02 August 2024)
China Reader Daily Wire | 02 August 2024, Friday | Vol.1 No. 138
CHINA & THE AMERICAS
Uber announces EV deal with Chinese BYD, reports BBC
On 01 August, BBC reported on Uber deal to bring one hundred thousand electric vehicles manufactured by the Chinese BYD to the Automobile world. Two anonymous firms stated that they would offer incentives to drivers of the automobile world to swap over the EVs. This would first be initiated in Europe and Latin America eventually followed by other countries. The announcement comes after concerns about the decline of EVs in the global markets, forcing Chinese car owners to face high import taxes in European nations. In addition, BBC stated that BYD plans to integrate self–driving technologies into Uber’s Platform, stimulating BYD and other Chinese EV owners to expand production facilities outside China. (“Uber strikes EV deal with Chinese Tesla rival BYD,” BBC, 02 August 2024)
CHINA & EUROPE
Germany accuses China of cyber attack, reports Reuters
On 31 July, Reuters reported that Germany had accused China of orchestrating a cyber attack on its federal cartography agency in 2021, escalating tensions between the two nations. Interior Minister Nancy Faeser called on China to cease such activities, with the German government attributing the attack to Chinese state actors based on intelligence reports. The hackers allegedly compromised private and corporate devices for espionage purposes. China’s embassy in Germany vehemently denied these claims, labelling them “groundless accusations” and urging Germany to stop “anti-China political manipulation.” This incident adds Germany to a growing list of countries, including the US, UK, and Canada, that have accused China of cyber-espionage. The Chinese embassy further stated that they have “lodged solemn representations with the German side” and rejected claims of a “so-called cyber intrusion.” (“China rejects ‘groundless’ claims after Germany summons ambassador over cyberattack,” South China Morning Post, 01 August 2024)
INTERNAL
Typhoon Gaemi wreaks havoc and claims 30 lives
On 31 July, typhoon Gaemi left a trail of destruction in China’s Hunan province, claiming 30 lives and leaving 35 people missing. Zixing bore the brunt of the disaster, with 118,000 residents affected by severe flooding, mudflows, and landslides. The typhoon, which had previously caused damage in the Philippines and Taiwan, first struck China’s Fujian and Jiangxi provinces before moving inland. Over 1.2 million people have been impacted in Hunan, with more than 100,000 hectares of farmland submerged. The National Committee on Disaster Prevention, Mitigation and Relief has elevated Hunan’s emergency response level due to the crisis. Premier Li Qiang visited the affected areas, urging local officials to prioritise flood control and safeguard lives and property. While this year has seen fewer typhoons than average, more have made landfall in China. The National Meteorological Bureau predicted two or three more typhoons in August, potentially affecting unusual areas north of the Yangtze River. (Liu Zhen, “Typhoon Gaemi’s Hunan toll rises to 30 dead, with 35 missing,” South China Morning Post, 01 August 2024)
Xi Jinping urges Hong Kong entrepreneurs to contribute to national modernisation
On 01 August, CGTN reported on President Xi Jinping encouraging Hong Kong entrepreneurs with Ningbo roots to play a crucial role in China’s modernisation efforts. In a reply to representatives including Pao Pui-hing and Chao Kee-Young, Xi praised their patriotism and contributions to national development. He emphasised that building a great country requires “concerted efforts of all Chinese people,” urging them to further integrate into national reform and development. Xi’s letter highlighted the historical importance of Ningbo-born overseas entrepreneurs, such as Pao Yue-kong and Run Run Shaw, in China’s development. This aligns with past leaders’ recognition of their value, including Deng Xiaoping’s 1984 directive to garner their support for Ningbo’s growth. The President's message underscores the continued significance of Hong Kong’s business community in realising the “Chinese Dream of national rejuvenation.” (“President Xi encourages Hong Kong entrepreneurs to contribute more to Chinese modernization,” CGTN, 01 August 2024)
SCIENCE & TECHNOLOGY
Apple bolsters earnings despite China slump, an editorial in The Guardian
On 01 August, an editorial in The Guardian reported that Apple’s third-quarter earnings for 2024 surpassed expectations, with revenue climbing 4.9 per cent to USD 85.78 billion. However, Apple faced challenges in China, its third-largest market, where sales declined 6.5 per cent to USD 14.73 billion. CEO Tim Cook remained optimistic and said: “We continue to be confident in the long-term opportunity in China.” The company’s overall iPhone sales fared better than anticipated, dropping only 0.9 per cent to USD 39.30 billion, buoyed by excitement surrounding Apple’s new AI features. These AI innovations, including a partnership with OpenAI, are set to integrate with Apple’s devices and Siri. Investing.com’s Thomas Monteiro praised the results, calling it “an incredibly solid quarter” that positions Apple as “the leading player in the AI-to-consumer space.” iPad sales saw a significant boost, increasing 23.7 per cent to USD 7.16 billion, following the launch of AI-focused models. While wearables sales dipped slightly, the overall performance suggests Apple’s AI strategy is already influencing consumer behaviour positively. (Kari Paul, “Apple beats earnings forecast despite decline in iPhone sales,” The Guardian, 01 August 2024)
CHINA & SOUTHEAST ASIA
US-Philippines military cooperation intensifies amid South China Sea tensions, an editorial in Global Times
On 01 August, an editorial in Global Times reported that the Philippines and the US recently conducted joint naval exercises in the South China Sea, following a provisional arrangement between China and the Philippines on managing the Ren’ai Jiao situation. This move with the Philippines’ interest in purchasing US F-16 fighters, suggests a deepening military alliance between the two nations. An anonymous Chinese military expert criticised these actions, stating that they reveal the Philippines’ continued interest in Chinese islands despite recent agreements. A deputy director of the Institute of Maritime Law and Policy China’s National Institute for South China Sea Studies’ Ding Duo noted that these drills enhance interoperability and intelligence sharing between the US and the Philippines. Global Times noted that analysts question the Philippines’ financial capacity to acquire F-16s and their effectiveness against Chinese stealth fighters. The broader strategy appears to be the US tightening its grip on the Philippines, ensuring alignment with American interests in the region. (Liu Xuanzun and Guo Yuandan, “Philippines eyes F-16 deal after joint drill with US in South China Sea,” Global Times, 01 August 2024)
CHINA & SOUTH ASIA
Protest in Gwadar as Baloch over Gwadar port fencing, reports Dawn
On 29 July, Dawn reported on the recent protests in Pakistan’s Balochistan province that have escalated into violent confrontations. The unrest stems from the decision to resume fencing around Gwadar port, a move perceived by locals as transforming the area into a military zone and restricting public access. Critics argue that this action and Chinese-backed development projects, exploit Balochistan’s resources without benefiting the local population. The Balochistan Yakjehti Committee (BYC) organised a “Baloch National Gathering” to voice concerns over local rights and alleged disappearances, drawing participants from across the region despite government roadblocks. The situation turned deadly when at least three civilians lost their lives and numerous others were injured in clashes with security personnel. Tensions further intensified as both sides traded accusations. Conversely, the Inter-Services Public Relations (ISPR) reported that a “violent mob” had assaulted security forces, resulting in the death of Sepoy Shabbir Baloch and injuries to 16 soldiers. Balochistan Chief Minister Sarfaraz Bugti questioned the protesters’ motives and said: “People say they are peaceful. Why do these peaceful [people] cover their faces and how do they fire at Frontier Corps?” He emphasised the government’s willingness to negotiate while asserting that they “will not allow anyone to take the law into their own hands.” The protests have spread beyond Gwadar, with reports of unrest in Quetta, Turbat, and Mastung. As the situation remains tense, the ISPR has called for calm, urging citizens “not to fall prey to propaganda” and to cooperate with law enforcement. (Iftikhar Shirazi, “Govt, protesters trade blame as Gwadar’s Baloch National Gathering descends into violence,” Dawn, 29 July 2024; Dipanjan Roy Chaudhury, “Massive protests rock Balochistan over alleged attempts to turn China-backed Gwadar Port into a military zone,” The Economic Times, 31 July 2024)
CHINA & CENTRAL ASIA
China Society for Human Rights Studies visit Tajikistan and Uzbekistan
On 01 August, a delegation from China’s Society for Human Rights Studies (CSHRS) completed a week-long exchange in Tajikistan and Uzbekistan. The group led by the Executive Vice-President of the CSHRS Jiang Jianguo, shared China’s human rights achievements and experiences with officials and scholars from both countries. The visit highlighted shared perspectives on human rights philosophies and a mutual desire to enhance cooperation in global human rights governance. Tajikistan’s Deputy Foreign Minister Farrukh Sharifzoda opposed politicising human rights issues, while Uzbekistan’s Human Rights Center Director Akmal Saidov praised China’s contributions to global poverty reduction and human rights advancement. Both Central Asian nations commended China’s progress in improving living standards and deepening reforms. (“China enhances human rights cooperation with Tajikistan and Uzbekistan, accelerating human rights development,” Global Times, 01 August)
CHINA & THE MIDDLE EAST
Saudi Arabia’s PIF forges USD 50 billion deal with Chinese financial giants
On 01 August, Saudi Arabia’s Public Investment Fund (PIF) recently inked six memorandums of understanding worth USD 50 billion with major Chinese financial institutions. These agreements, involving banks like the Agricultural Bank of China and the Industrial and Commercial Bank of China, aim to foster two-way capital flows through debt and equity. This move aligns with Saudi Arabia’s Vision 2030 plan to diversify its economy beyond fossil fuels. China has expressed readiness to deepen cooperation in various sectors, including green development and digital economy. The partnership reflects both nations’ commitment to mutual economic growth, with China welcoming Saudi investments from entities like PIF and Aramco to establish a stronger presence in its market. (“Saudi sovereign fund PIF signs $50bn deals with Chinese banks,” Nikkei Asia, 01 August 2024)
CHINA & EUROPE
Zelenskyy asks China to exert pressure on Russia
On 31 July, Ukrainian President Volodymyr Zelenskyy expressed his desire for China to exert pressure on Russia to end the ongoing conflict, rather than act as a mediator. In a statement to French media, he emphasised: “If China wants to, it can force Russia to stop this war.” Zelenskyy called for increased international pressure on Moscow, comparing it to efforts by the United States and European Union. While Ukraine insists on restoring its 1991 borders, Zelenskyy indicated openness to negotiations under the right circumstances, even before a complete Russian withdrawal. He stressed the importance of Russian participation in future peace summits and said: “Otherwise, we will not obtain viable results.” Zelenskyy acknowledged recent Russian advances in eastern Ukraine, attributing them to equipment delays and Western restrictions on weapon deployment. Despite Russian President Vladimir Putin’s willingness to negotiate contingent on Ukraine ceding annexed territories, Zelenskyy firmly rejected this possibility, citing constitutional constraints. The Ukrainian leader emphasised that territorial concessions are "impossible" and a matter for Ukraine alone to decide. (“Ukraine's Zelenskyy wants China to put more pressure on Russia,” Nikkei Asia, 02 August 2024)
CHINA & THE AMERICAS
World Anti-Doping Agency caught between the US and China, reports BBC
On 01 August, BBC reported that World Anti-Doping Agency (WADA) was caught between the geopolitical tensions of the US and China in the ongoing Olympics in Paris. Chinese swimmers were drug tested twice in Paris adding to the allegations of the conspiracy. The US accused Wada of covering up the doping allegations in favour of China. The Wada’s Head of Media said: “The result is that it has created distrust and division within the anti-doping system.” Last week Wada stated that it would consider legal action by filing a defamatory charge against its US counterpart, US lawmakers have alleged Wada's favouritism towards Chinese swimmers causing the lawmakers to introduce a bill at the white house to cut funding to the agency immediately. The New York Times stated that Wada is probing the issue in China, Mexico and other countries against similar allegations. (“Why the world's anti-doping agency feels stuck between US and China,” BBC 02 August 2024)
Canadian warship in Taiwan Strait alerts Chinese military, reports South China Morning Post
On 01 August, the South China Morning Post reported on Canadian warship voyage through the Taiwan Strait and also stated that the three wings of the PLA closely monitored the situation. Chinese Eastern Command spokesperson, Captain Li Xi stated that Canada had hyped the voyage undermining the tranquillity of the region. Following Li’s announcement, the Canadian Joint Operations Command (JOC) stated that it had conducted a routine transit in the region. Canadian JOC stated that Canada supported the “rules-based international order” and that its activities maintained tranquillity in the Indo-Pacific. In addition, the Canadian Minister of Defence, Bill Blair said: “Montreal’s transit reaffirmed his country’s commitment to a free, open and inclusive Indo-Pacific.” Furthermore, the SCMP stated that Canada’s Indo-Pacific strategy was announced in November 2022, focusing on fostering intelligence, capacity building, and expanding military operations in order to have a bigger presence in the Taiwan Strait. (“China military condemns Canadian warship Montreal’s transit of Taiwan Strait,” South China Morning Post, 02 August 2024)
Biden’s plan to curb chip export to Beijing will face retribution, reports The Global Times
On 02 August, The Global Times reported on Chinese observers stating that the US cannot obstruct China’s technological progress against which the Chinese are ready to counter the issue by filing a complaint with the WTO. This comes after Biden's administration plans to impose unilateral restriction on Chinese access to AI memory chips. Chinese analyst warned that the decoupling of the US from China would lead to further problems in bilateral relations. A report by Bloomberg on 01 August stated that Biden’s administration plans to impose new restrictions that would curb the Chinese access to AI memory chips and related types of equipment. Beijing-based tech analyst Fu Liang said: “For the US, tightening chip export controls on China is a double-edged sword.” Despite immense external pressure, the Chinese chip makers are accelerating research and development with an understanding that the medium and low-performance US chip products will significantly increase the growth of the Chinese market. (“US reportedly to escalate AI chip restrictions on China, 'may incur countermeasures,” Global Times 02 August 2024)
China congratulate Venezuela’s New President, reports Nikkei Asia
On 01 August, Nikkei Asia reported that Chinese President Xi Jinping swiftly congratulated the newly elected Venezuelan President Nicolas Maduro’s victory. The Carter Centre claims that the poll did not meet international standards of electoral integrity and could not be considered democratic. The Chinese government was upset by the remarks made by the observer, Xi Jinping later added that Maduro was focused on national development and progress hence China would stand by Venezuela’s efforts in safeguarding the national sovereignty. In addition, the report stated that the Chinese view on Venezuela is slightly critical as they are under US sanctions, but in a visit to Beijing Maduro signed an “all-weather strategic partnership” strengthening the bilateral relationship and subsequently joined the Belt and Road Initiative project. (“China's Venezuela connection: A warm state embrace with corporate cold feet,” Nikkei Asia 02 August 2024)
China Reader Daily Wire | 01 August 2024, Thursday | Vol.1 No. 137
CHINA & SOUTH ASIA
Working Mechanism for Consultation and Coordination on India-China Border Affairs discuss border issues
On 01 August, The Indian Express reported that India and China held “constructive” and “forward-looking” discussions under the Working Mechanism for Consultation and Coordination on India-China Border Affairs (WMCC). This meeting, following talks between External Affairs Minister S Jaishankar and his Chinese counterpart Wang Yi, signals a potential thaw in the four-year-long border standoff. The Indian Ministry of External Affairs emphasised that restoring peace and respecting the Line of Actual Control (LAC) are crucial for normalizing bilateral relations. Both sides agreed on the importance of maintaining peace on the ground, adhering to existing agreements and protocols. Led by Joint Secretary Gourangalal Das, the Indian delegation engaged in in-depth discussions with their Chinese counterparts. The meeting aimed to find an early resolution to outstanding issues along the LAC, where over 50,000 troops from each side remain stationed. India’s stance remains firm that peace and tranquility at the border are non-negotiable prerequisites for improved relations. While the talks represent a positive step, India continues to prioritize its territorial integrity and sovereignty in these negotiations, balancing diplomatic efforts with strategic caution. (“‘Constructive’: India, China hold talks to resolve standoff at LAC,” The Indian Express, 01 August 2024)
China calls to maintain peace along the border with India
On 31 July, China and India took a significant step towards resolving their border disputes during the 30th Meeting of the Working Mechanism for Consultation and Coordination on Border Affairs (WMCC). The talks, led by the Director-General of the Department of Boundary and Ocean Affairs of the Chinese Foreign Ministry Hong Liang and the Joint Secretary of the East Asia Division of the Indian Ministry of External Affairs Gourangalal Das, aimed to accelerate negotiations and maintain peace along the shared border. Both nations committed to implementing the consensus reached during recent ministerial-level discussions, focusing on addressing specific border issues while considering each other’s concerns. The goal is to swiftly reach a mutually acceptable solution, fostering healthier bilateral relations. China emphasises the importance of maintaining open communication channels, both diplomatic and military, to strengthen the negotiation process. Both sides aim to maintain peace in the border regions by adhering to established agreements and protocols. This meeting follows recent talks between Foreign Ministers Wang Yi and Subrahmanyam Jaishankar in Vientiane, where they agreed to resolve differences and steer bilateral relations towards a positive trajectory. China views these ongoing discussions as crucial steps in normalising relations with India and achieving long-term stability in the region. (“China, India speed up border talks, agree to maintain peace,” CGTN, 01 August 2024)
INTERNAL
Xi Jinping calls for modernisation of China’s defence systems
On 31 July, Chinese President Xi Jinping called for the modernisation of China’s border, coastal, and air defence systems during a leadership study session of the Political Bureau of the CPC Central Committee ahead of Army Day. Xi highlighted the need to strengthen overall planning and enhance border defence capabilities in the face of new opportunities and challenges. The Chinese leader stressed the importance of integrating science and technology into national defence efforts and improving infrastructure connectivity. He also emphasised the need for “friendly and practical cooperation with neighbouring countries” to create a favourable environment for China's defence development. Xi acknowledged the progress made since 2012 in safeguarding China’s territorial sovereignty and maritime rights. However, he underscored the necessity for continued improvement, including enhancing air traffic management and optimizing civil air defence. (“Xi Jinping stresses modernizing China's border, coastal, air defense,” CGTN, 31 July 2024)
SCIENCE & TECHNOLOGY
China tightens military drone export controls, reports Bloomberg
On 31 July, Bloomberg reported that China has revised its drone export regulations, adding high-precision measurement equipment to a blacklist while easing restrictions on consumer-grade models. The changes which are effective from 01 September come as Beijing faces accusations of supporting Russia’s military efforts in Ukraine. The Ministry of Commerce emphasised that civilian drones should not be used for “mass destruction weapons, terrorism or military purposes.” These adjustments follow Ukrainian Foreign Minister Dmytro Kuleba’s recent visit to China and reports of Chinese-Russian collaboration on attack drones. Beijing denies providing weapons to any party in the Ukraine conflict and opposes “illegal sanctions” on Chinese entities over drone use. (“China Expands Military Drone Export Curbs After Ukrainian Visit,” Bloomberg, 31 July 2024)
INTERNAL
China’s nationwide digital ID proposal sparks privacy concerns, an editorial in the Financial Times
On 01 August, an editorial in Financial Times reported that China’s Cyberspace Administration and Ministry of Public Security have proposed a nationwide digital ID system for internet users, prompting significant debate. The voluntary system aims to replace real names and phone numbers for online registrations, potentially expanding government oversight of online activities. Trivium consultancy’s Tom Nunlist notes this could “significantly expand the government's ability to monitor people's activity online.” While proponents argue it protects user data from corporate exploitation, critics like Tsinghua University’s Lao Dongyan see it as a “facade” for increased regulation. She warns it’s akin to “installing a monitor for everyone’s online behaviour.” Others question the government’s data management capabilities, recalling the 2022 Shanghai police data breach. Legal experts also challenge the proposal’s legal basis. However, Bird & Bird’s James Gong suggests it offers users an alternative to sharing sensitive information with companies. The public response highlights Chinese citizens’ privacy concerns, with Nunlist observing: “There is a mistaken view that Chinese people care less about their privacy and state intrusion than other places.” (Eleanor Olcott and Wenjie Ding, “China data watchdog plans tighter control of internet users,” Financial Times, 01 August 2024)
ECONOMY
Chinese small cities a model for economic rejuvenation, an editorial in The Economist
On 30 July, an editorial in The Economist reported that while many of China’s former economic powerhouses have slowed, some small “county level” cities continue to thrive. Yueqing, a coastal town of 1.3 million, exemplifies this trend with its impressive 8 per cent annual growth. The city’s success stems from its entrepreneurial spirit, strategic location, and government-supported industrial upgrades. Yueqing has transformed from producing basic electrical components to becoming a leader in high-tech manufacturing. Its evolution earned it the title of “national advanced manufacturing cluster,” a designation typically reserved for larger cities. This success has attracted population growth, bucking the trend of shrinking populations in many Chinese counties. However, Yueqing’s story isn't simply one of government intervention. Local business owners pride themselves on their independence, often avoiding state-owned enterprises and bank loans. Where public policy has helped, it has been by complementing private sector strengths rather than dictating terms. (“China’s last boomtowns show rapid growth is still possible,” The Economist, 30 July 2024)
OUTER SPACE
Chinese scientists challenge moon crust formation theory, reports CGTN
On 01 August, CGTN reported that a recent analysis of lunar samples from China's Chang'e-5 mission led to a groundbreaking proposal about the moon's early crust development. A team led by Wang Shuijiong from the China University of Geosciences in Beijing suggests a continuous process, challenging the traditional two-stage model. Their study, published in Communications Earth & Environment, found evidence of magnesian-suite rocks within anorthosite fragments, indicating simultaneous formation. The researchers propose that during the lunar magma ocean’s cooling, gravitational instabilities triggered small-scale overturns in the upper mantle, followed by larger-scale events. This process links the formation of primitive and secondary crusts, contradicting the classical model of distinct stages. These findings stem from the examination of 1,731 grams of lunar material brought back by Chang’e-5 in December 2020. The study’s geochemical and thermodynamic simulations suggest that the parent magma originated from the moon’s upper mantle, further supporting the continuous crust formation theory. (“Chang'e-5 lunar sample reveals early moon crust formation process,” CGTN, 01 August 2024)
DEFENCE
PLA’s 97th Anniversary marks progress amid regional tensions, an editorial in Global Times
On 31 July, an editorial in Global Times reported that as the Chinese People’s Liberation Army (PLA) approaches its 97th anniversary, it continues to evolve in response to regional challenges. Over the past year, the PLA has conducted numerous exercises, including the Joint Sword-2024A around Taiwan and operations in the South China Sea, demonstrating its growing capabilities. The military has undergone significant restructuring, with the Strategic Support Force being divided into information support, aerospace, and cyberspace forces. This reorganisation aims to enhance China’s ability to operate in new domains of warfare. Notable developments include sea trials of China’s third aircraft carrier, Fujian, signalling advancements in naval technology. The PLA has also engaged in international military exercises, fostering cooperation with countries like Russia, Belarus, and Laos. As the PLA nears its centennial in 2027, Western speculation about potential forceful reunification with Taiwan has increased. However, Chinese military expert Fu Qianshao emphasises that while China prefers peaceful reunification, it “never promise[s] to renounce the use of force.” (Liu Xuanzun, “PLA celebrates Army Day with combat readiness,” Global Times, 31 July 2024)
CHINA & SOUTHEAST ASIA
China, US, and Australia vie for influence in Cambodia, an editorial in VOA
On 31 July, an editorial in VOA reported that China’s appointment of Wang Wenbin as its new ambassador to Cambodia signals an intensifying diplomatic contest in Southeast Asia. Wang, a seasoned “wolf warrior” diplomat arrived as Cambodia’s new Prime Minister Hun Manet took office, potentially reshaping the country’s foreign relations. The US and Australia are countering with their own China-experienced envoys. This diplomatic maneuvering reflects Cambodia’s growing importance in the US-China rivalry, particularly regarding issues like the South China Sea and the Ream naval base. While China remains Cambodia’s largest trading partner, concerns about over-reliance on Beijing are prompting Phnom Penh to seek balanced relations. A research fellow Ek Bunly noted: “Cambodia would be in total vulnerability should China decide to weaponize its economic domination.” Despite gestures like naming a boulevard after Xi Jinping, Cambodia’s post-COVID economic struggles present challenges for Wang. As Bunly observed, reviving Chinese investment and tourism “is not necessarily within his control and partly depends on China's own economic conditions.” (Sim Chansamnang and Han Noy, “China's new 'wolf-warrior' envoy to Cambodia portends superpower rivalry,” VOA, 31 July 2024)
CHINA & THE MIDDLE EAST
Chinese Foreign Ministry condemns the Hamas leader assassination
On 31 July, Chinese Ministry of Foreign Affairs spokesperson Lin Jian condemned the assignation of Hamas Leader Ismail Haniyeh. The Chinese Ministry informed that they were closely monitoring the situation as they expressed their disappointment. Jian said: “We are closely following the incident. China firmly opposes and condemns the act of assassination and is deeply concerned that the incident may plunge the region into greater turmoil. China has been calling for settling regional disputes through negotiation and dialogue and an early, comprehensive and permanent ceasefire in Gaza and there should be no more escalation of the conflict and confrontation.” An Associate Professor of the Institute of Middle Eastern Studies at Northwest University in Xi’an, stated that the killing of Haniyeh would end further negotiations between Hamas and Israel as the continuing dialogues were important and this incident would bring a negative impression. According to CNN, the demise of Haniyeh is termed to be a major operation by the Israelis, since last October the Israelis have managed to kill Haniyeh’s family members and several other Senior leaders of Hamas leading to further complications in the region. (“China condemns assassination of Hamas political chief Haniyeh,” Global Times, 01 August 2024)
CHINA & THE AMERICAS
China sanctions US lawmaker advocating Tibet human rights, reports VOA
On 31 July, VOA reported that the US representative and lawmaker Jim McGovern is sanctioned by China. He is the bill advocator for the China-Tibet dispute. China claims that Tibet belongs to Chinese since ancient times. This sentiment has been subsequently denied by Dalai Lama stating Tibet was independent historically. The sanctions froze McGovern’s Chinese assets, prohibiting fellow and firms in China from engaging alongside him and banning him and his family’s entry into China, according to Xinhua. The “Tibet-China Dispute Act” was passed in mid-June 2024 giving the US State Department the power to counter the Chinese. McGovern advocated against large-scale human rights exploitations by the Chinese in Tibet. In a statement McGovern stated The People’s Republic of China has systematically denied Tibetans the right to self-determination and continues to deliberately erase Tibetan ethnicity. (“China sanctions US lawmaker,” VOA, 31 August 2024)
Chinese envoy visits US to discuss fentanyl crisis, reports SCMP
On 31 July, the South China Morning Post reported on a group of Chinese envoys visit to Washington to discuss counter-narcotics measures against fentanyl. The stalled cooperation resumed after the Chinese President and his US counterpart promised to join hands in combating fentanyl drug crisis. The Senior American official said: “meeting with the Chinese delegation is meant to address several key issues, such as urging Beijing to classify all substances identified as controlled chemicals by international bodies and discussing enhanced information exchange regarding companies involved in shipping drugs to the US.” The talks matched with Biden’s announcements on combating synthetic drugs. (“China delegation visits US to discuss fentanyl crisis collaboration amid ‘complex’ ties,” South China Morning Post, 01 August 2024)
US presidential elections: “do not expect significant changes in U.S. policy toward China,” an opinion in Foreign Affairs
On 01 August, in an opinion in Foreign Affairs titled “Does China Prefer Harris or Trump,” looked into the US Presidential elections that have drawn massive attention worldwide and how it doesn’t matter to China. Several nations weighed the possibilities of Donald Trump’s return to the white house paralleled with how Biden’s second term looked for the world. The editorial stated that China’s perspective is completely different on this issue as the previous Trump government took an antagonizing approach towards China calling it a “revisionist power,” and so did Biden’s administration by imposing frequent sanctions. The editorial further emphasised the Chinese observer's opinion that both Governments have the same view towards China, which is backed by political concerns. Unlike America, The Chinese are concerned about their domestic situation. China seems to be administratively steady under the CCP. The 20th CCP held in mid-June showcased a positive rise in China’s economic recovery regardless of low economic expectations for growth for the first part hence developing modifications for Chinese modernization. (“Does China Prefer Harris or Trump,” Foreign Affairs, 01 August 2024)
The US plans to restrict export of chip equipment by its allies to China, reports Reuters
On 31 July, Reuters reported on the Biden’s administration plans to stop exports of semiconductor manufacturing equipment by US allied countries to China. Anonymous sources told the media that Japan, Netherlands, and South Korea would be excluded from this plan. The United States Department of Commerce stated that it is assessing the threat in the area to protect the national security and technological network. The Chinese Ministry of Foreign Affairs Lin Jian said: “coerce other countries into suppressing China's semiconductor industry,” additionally it undermines global trade and hurts all parties. In 2022 and 2023 Californian-based companies were restricted from shipping to the Chinese Military. (“Exclusive: New US rule on foreign chip equipment exports to China to exempt some allies,” Reuters, 01 August 2024)
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