Photo : Global Times

Chinese commerce minister states EV tariffs will hurt both China and Germany, reports Reuters

China Reader Daily Wire | 24 September 2024, Tuesday | Vol.1 No. 180
EXTERNAL
China’s military development “plateauing,” reports the Lowy Institute's Asia Power Index
On 22 September, an ABC News article titled “Lowy Institute's Asia Power Index says China is chipping away at America's military might but its overall influence is plateauing,” looked into China’s persistent attempts to erode the US military power in Asia. The Lowy Institute's Asia Power Index, which measures the relative strength of 27 states and territories, has found that the US remains the most powerful country in the province. America maintains tougher defence networks and cultural capabilities. The ABC report said: “The United States and China appear to be digging in for a long contest, China's power is neither surging nor collapsing, but plateauing. Flatlining economic capability, driven by slower economic growth and longer-term structural challenges, means that China's economic clout, while still commanding, is no longer growing. “However, Beijing aims to close the gap with military capabilities and huge investment in expanding its armed forces. According to the report China is in a good position when compared to the US in deploying its power. Furthermore, the index's main author, Susannah Paton said: “The US economy has performed relatively better than China's, and when you look at future resources and demographic trends, that looks more positive for the US than China. But China is still the region's main trading partner, and the US hasn't dented that, which points to continued deficiencies with US economic engagement in the region, and the lack of a dividend from US efforts to encourage the private sector in the region.” (“Lowy Institute's Asia Power Index says China is chipping away at America's military might but its overall influence is plateauing,” ABC News, 23 September 2024)

CHINA & THE AMERICAS
Brazil kickstarts discussion to join BRI amid US election concerns, reports SCMP
On 24 September, SCMP reported that Brazil may join China’s Belt and Road Initiative (BRI), and an inter-ministerial working group has been set up to study the move. The upcoming US presidential election complicates the decision’s timing, as diplomats advise President Lula to delay any announcement until after 05 November. Lula has supported Kamala Harris, potentially complicating relations with a future Trump administration if Brazil aligns with China. The project picked up steam in June when former President Dilma Rousseff pitched its benefits. Lula publicly confirmed that he was considering it in July, stating that he was studying what Brazil “had to gain.” Brazilian analysts believe membership is a “fundamental measure” compatible with Lula’s development strategy. Concerns persist about the impact of Trump’s presidency on US-Brazil relations. The working group is supposed to hold a meeting after the UN General Assembly to deliberate on further steps. (Igor Patrick, “Brazilian officials work with China on details of joining belt and road,” South China Morning Post, 24 September 2024)

TAIWAN READER
Taiwanese Defence Ministry refutes China’s hacking accusations
On 24 September, Taiwanese officials asserted that it is China that leads other countries in daily cyberattacks against Taiwan. They countered China’s claims of cyberattacks by Taiwanese a military-backed hacking group called Anonymous 64. Taiwan Ministry of National Defence spokesperson Wellington Koo countered the claims and said that China is actually, “the first country when it comes to daily cyber-attacks” on Taiwan and the democracies. Premier Cho Jung-tai accused Beijing of propaganda to discredit Taiwan by spreading misinformation, stating that what Taipei needed in return for accusations of “fake news” was a strong response. China's national security ministry had named three Taiwanese individuals allegedly involved in the group, but Koo dismissed these accusations as untrue. The row brings to mind earlier tensions between China and Taiwan, where Beijing is unwilling to commit to a renouncement of the use of force to gain control over the island. The government of Taiwan sticks out by asserting and attesting to its sovereignty, opposing the claims of China, and further insisting that only its citizens shall have the decisive say over their future. (“China are the real hackers not us, Taiwan says after cyber accusations,” Reuters, 24 September 2024)  

INTERNAL
Xi congratulates Chang'e-6 lunar mission scientists and engineers, reports CGTN
On 23 September, CGTN reported on Xi Jinping encouraging the Chinese space industry professionals for their continued hard work and increasing progress in space research. Xi also met space scientists and research engineers involved in developing the Chang'e-6 lunar mission at the Great Hall of the People in Beijing. Xi urged the attempts to promote lunar exploration and collaboration to overcome challenges and obtain a win-win aid. He further boosted the nation’s confidence and pride in all Chinese through a comprehensive promotion of building a greater nation. Xi said: “Over the past 20 years, the lunar exploration project has focused on key core technologies and achieved fruitful results in scientific discovery, technological innovation, engineering practice, achievement application, and international cooperation. It has blazed a path of high-quality and cost-effective lunar exploration, making a major contribution to the development of China's space industry and human space exploration.” He further stated that the program provides a broad avenue for international scientific and technological cooperation and strengthening global space exploration. Furthermore, Xi said: “China will promote various forms of international space cooperation and share the fruits of its development with other countries to benefit mankind.” (“Xi calls for accelerating progress in China's space endeavors,” CGTN, 23 September 2024)
 
CHINA & EUROPE
European Union files WTO case over Chinese dairy subsidies investigation, reports South China Morning Post
On 23 September, the South China Morning Post reported on the WTO case launched by the European Commission against Chinese dairy subsidies. The case concerns the WTO case concerning an anti-subsidy inquiry by China’s Ministry of Commerce into milk, cream, and cheese products under the EU’s giant common agricultural policy. Additionally, the inquiry also targets national-level programmes in several member states and aims to retaliate to the commission's anti-subsidy probe into Chinese EVs. European Union trade commissioner Valdis Dombrovskis said: “The Chinese investigation on EU dairy is based on questionable allegations and insufficient evidence, therefore we will continue to challenge it vigorously in all available venues while calling on China to bring it immediately to an end and stressed that these investigations are unwarranted, are based on questionable allegations, and lack sufficient evidence thus called for these investigations to be terminated and informed the Chinese side that the EU will do its utmost to defend the interests of its industries.” Furthermore, EU twenty-seven members are supposed to vote before October 30 on deciding if the tariffs are supposed to become law for five years. (“EU to take China to the WTO over dairy subsidies investigation,” South China Morning Post, 23 September 2024)
 
CHINA & THE AMERICAS
China strengthens diplomatic ties across continents as Chinese FM visits Panama
On 23 September, China’s recent diplomatic engagements highlight its efforts to bolster relationships with diverse nations. In a visit to Panama, Foreign Minister Wang Yi underscored that China wants sustained bilateral ties and informed the audience that China is the largest Central American trading partner of Panama. The Panamanian foreign minister, Martinez-Acha stated on record that his country adheres to the one-China principle and welcomes Chinese investment. Wang held a comprehensive round of talks with Indonesia on deepening strategic cooperation to resist unilateralism. The two parties agreed on the broadening of cooperation in various fields, in a meeting where the Ethiopian Foreign Minister, Atske Selassie, stated that the current status is in line with international affairs. Meanwhile, Wang announced the China-Hungary situation as the “best period in history” and urged closer strategic cooperation. Hungary’s Minister Szijjarto shared similar views and said: “European countries need China to improve their competitiveness.” Wang also spoke on EU-China relations and advocated “a more pragmatic and rational policy” should be adopted. He reflected on the trend of protectionism and warned against it. (“Wang Yi meets foreign officials on sidelines of UN Summit of Future,” CGTN, 24 September 2024)
 
Biden condemns China in Quad summit, reports The Guardian
On 22 September, an opinion in The Guardian titled “China ‘testing us’ across the region, Biden tells leaders at Quad summit,” looked into Joe Biden’s harsh statement as China is “testing us” during the Quad summit, without referring to China by name. Biden unwrapped a farewell with Indian Prime Minister Narendra Modi, Japanese Prime Minister Fumio Kishida, and Australian Prime Minister Anthony Albanese. All four nations in a joint statement said: “China continues to behave aggressively, testing us all across the region, and it’s true in the South China Sea, the East China Sea, South China, South Asia, and the Taiwan Straits, Biden was heard in what was supposed to be behind-closed-doors remarks to the Quad grouping of four countries.” Biden criticised Xi Jinping as focusing on domestic economic challenges and focused on having some diplomatic space to follow China’s interests. However, after the summit, no leader commented on China directly but expressed the border tensions and critically condemned the activities of China in the East and South China Seas tug of war with the Philippines. Indian Prime Minister Modi made a similar promise as Biden and said: “Our message is; that the Quad is here to stay.” Additionally, the leaders announced an initiative to fight against cervical cancer, he also posted pictures on social media with the leaders. The White House said: “The summit reflected the way Biden prioritised international alliances.” (“China ‘testing us’ across the region, Biden tells leaders at Quad summit,” The Guardian, 23 September 2024)
 
Chinese analyst criticises US plan to ban Chinese software and hardware
On 23 September, Global Times reported on Chinese experts criticising the US plan to ban Chinese software and hardware in autonomous vehicles. The call for a ban came after the US announced extra tariffs on Chinese EVs in an all-out effort. Lü Xiang, a research fellow at the Chinese Academy of Social Sciences said: “It has lost in the competition so it resorts to protectionist measures. In the long term, it means Chinese companies will lose a major market if the US implements the ban; however, the ban will also cause losses for US businesses and consumers.” Additionally, trade groups representing General Motors, Toyota, Volkswagen, and Hyundai have warned that the time required for changing hardware and software would consume some time. Chinese EVs have also gained criticism from US businesses, which forced the US government to postpone the announcement twice. Furthermore, the US government has continuously disagreed with pleas from the business fraternity due to political motivations behind causing huge demand for industries. Lu further said: “It becomes increasingly clear that the US protectionist industry policies have failed, and more protectionism will lead to even greater failure.” (“The US’ proposed ban on Chinese EV software, hardware protectionist: analyst,” Global Times, 23 September 2024)

China Reader Daily Wire | 23 September 2024, Monday | Vol.1 No. 179
OUTERSPACE
China reveals Lunar samples from Chang’e-6 mission
On 21 September, China revealed samples of lunar soil brought back by the Chang’e-6 mission from the far side of the moon. With a total mass of 1.9 kg, they are conserved alongside samples returned by Chang’e-5 and appear lighter in colour and greyer than those due to a higher content of feldspar and glass. Deputy Chief Designer Li Chunlai explains that these samples require painstaking steps before collection, such as breaking bigger rock fragments and dividing drill samples into more than 100 portions. Early research articles published in the National Science Review include those on samples with lower density and a porous texture. Meanwhile, the Chinese Yutu-2 rover has safely operated on the far side of the moon for nearly six years by travelling over more than 1,610 metres of record-breaking distance. In the future, China will send Chang’e-7 and Chang’e-8 missions and even build a research station at the lunar south pole. In short, those asteroid exploration missions, Tianwen-2 and Tianwen-3, are as per schedule, according to confirmation by the Head of the China National Space Administration Bian Zhigang. China's ambitious space program also aims to send astronauts to the moon by 2030 and conduct further Mars exploration. (Zhang Tong, “China’s Chang’e-6 reveals greyer, rockier soil from the far side of the moon,” South China Morning Post, 22 September 2024)

ECONOMY
China’s central bank injects 234.6 billion yuan into the banking system
On 23 September, China’s central bank undertook steps that seem to point towards an added direction to further monetary easing. The People’s Bank of China (PBOC) injected 234.6 billion yuan into the banking system, which included 74.5 billion yuan through 14-day reverse repos at a discounted rate of 1.85 per cent. This was done before the National Day holidays in line with the repo rate of 7 days in July. While some analysts, like Zhang Zhiwei of Pinpoint Asset Management, caution against interpreting this as significant policy ease, expectations of further rate cuts and reserve requirement ratio cuts continue. The world’s second-largest economy has borne the brunt of pressures of deflation as well as growth challenges where speculation concerning accelerated monetary easing has emerged. Global brokerages have cut their 2024 China growth forecasts below the government’s 5 per cent target. President Xi Jinping said officials must strive to meet annual economic targets. Regulators will hold a rare joint press conference offering hints of policy direction ahead. (“China's central bank injects cash, lowers 14-day reverse repo rate,” Reuters, 23 September 2024)

INTERNAL
China celebrates the seventh Farmers’ Harvest Festival
On 22 September, China marked its seventh Chinese Farmers’ Harvest Festival, celebrating rural energy and agricultural successes through festivities across the country. First launched in 2018, the festival coincides with the autumnal equinox as calculated on the lunar calendar. Events range from spectacular performances and markets to traditional events like the fire dragon dance. Agriculture in China has also developed well since grain output has been above 650 million tonnes over the last seven consecutive years since 2015, and production per capita stood at 493 kilograms in 2023. The country has shifted its attention from quantity-oriented to quality-oriented and efficient. Thus, over 66.7 million hectares of high-standard farmland have been developed with high mechanisation rates for crop production. A dean of the School of Economics at Renmin University, Liu Shouying, said modernisation in rural areas should be accelerated, commenting, "It's essential to increase urban integration for farmers.” He further proposed “One county, one industry” to promote the value of agriculture. China remains developing agricultural infrastructure and technological innovations to achieve food security and efficiency. (“China celebrates harvest festival, showcases agricultural achievements,” CGTN, 22 September 2024)
 
China to launch “Silver Age Action,” encouraging elderly in volunteer work
On 20 September, China’s National Committee on Ageing released the standards for implementing the Silver Age Action, which seeks to encourage volunteering and community service activities among the elderly. The action is crucial because the country continues to face the challenges of an ageing population and a dwindling workforce. The Silver Age action entails activities by older volunteers in community patrols, childcare, and support for less developed regions among others. By 2023, the population aged 60 and above had crossed 297 million with over 21 per cent of its total population. The Economist Intelligence Unit projects that this share will increase to nearly one-third by 2035. The plans foresee establishing a standardised program by 2026 and making it a “key brand” of elderly social activity by 2028. Meanwhile, China is gradually increasing its retirement age and extending minimum pension contribution periods. The committee puts importance on “showcasing the spirit of the elderly, who, like old steeds, continue to strive and contribute positively to society.” (Sylvia Ma, “China encourages elderly to volunteer as workforce shrinks and population ages,” South China Morning Post, 21 September 2024)
 
China’s maritime aggression sparks regional tensions and strategic realignments, says an opinion in The Guardian
On 21 September, an opinion in The Guardian stated that China’s assertive actions in the South China Sea are escalating tensions and reshaping the geopolitical landscape of the Asia-Pacific region. Under Xi Jinping’s leadership, Beijing has further intensified its territorial claims to the dismay of neighbouring countries, especially the Philippines. Violent clashes on Second Thomas Shoal and Sabina Shoal have also been followed by a shift in regional alliances. The Philippines’ President Ferdinand Marcos Jr has established his country’s relations with the US by enhancing cooperation in the military and joint exercises with their US counterparts. The new attack by China on Japan in the East China Sea has faced similar aggression on Japan. The country too has been investing in increasing defense capabilities and strengthening international partnerships. These facts have given rise to the discussion on the need for an “Asian NATO”. Marites Dañguilan Vitug writes in Foreign Affairs that Marcos has: “returned the country to its strategic moorings” by allowing the US greater access to military bases. The status of affairs allows room for question over the moves and motivations of Xi, and maybe much worse, probable miscalculations. Alexander Görlach warns in Politico: "There's no war scenario in which Japan wouldn't be affected by China's aggression against Taiwan." But even if the circumstances of history are inevitable, its legacy is not-and the present-day tensions in the South and East China Seas are avoidable if China revises its approach. (Simon Tisdall, “Xi Jinping’s ‘gunboat diplomacy’ risks driving his bullied neighbours into enemy hands,” The Guardian, 21 September 2024)
 
CHINA & SOUTHEAST ASIA
Chinese President Xi Jinping offers condolences to Vietnam following Typhoon Yagi
On 21 September, Chinese President Xi Jinping expressed his sympathies to Vietnamese President To Lam after Typhoon Yagi caused significant damage in northern Vietnam. Xi said that on behalf of the Chinese government and its people, he extends condolences to the President of Vietnam and the people, indicating that the two countries have an extraordinary relationship. Xi described China and Vietnam as “friendly neighbors connected by mountains and rivers” and stressed their “profound friendship of ‘comrades plus brothers’.” Xi declared that China stood ready to support Vietnam in any way possible and had faith in the latter’s capacity to recover once more under its leadership. This act helps to drive home the strategic nature of the China-Vietnam relationship as Xi called the two “a community with a shared future of strategic importance.” (“Xi Jinping extends condolences to Vietnam's To Lam over typhoon disaster,” CGTN, 22 September 2024)
 
CHINA & SOUTH ASIA
BYD’s to enter Pakistan market, reports Financial Times
On 23 September, Financial Times reported that Chinese electric vehicle giant BYD is set to enter Pakistan’s market, partnering with Hubco’s subsidiary Mega Motor to establish the country's first EV assembly plant by 2026. BYD’s second foray into South Asia will end restrictions on its exports to India. According to the CEO of Hubco, Kamran Kamal: “We have big ambitions to be the leading carmaker in this country by the end of the decade.” The Pakistani government is encouraging BYD to export vehicles to African and South Asian markets. Finance Minister Muhammad Aurangzeb said: “We want Pakistan to become an export hub, period.” Though official details are yet to be announced, Hubco is targeting 100,000 BYD vehicles annually in Pakistan by 2030. An industry expert Tu Le stated that BYD may face challenges managing factories in different cultural contexts. The expansion comes as rising tariffs on Chinese exports in multiple markets start constricting sales. (Humza Jilani, John Reed, and Edward White, “China’s BYD raises car export hopes in Pakistan after being spurned by India,” Financial Times, 23 September 2024)
 
China and Nepal launch fourth anti-terrorism exercise “Sagarmatha Friendship”
On 22 September, China and Nepal commenced their fourth Sagarmatha Friendship joint army drill in Chongqing, focusing on urban anti-terrorism operations. The exercise will run till 01 October, with various activities such as light arms shooting, drone operations, and emergency rescues. A highlight of the event is the debut of a ball-shaped reconnaissance drone, described by an anonymous military expert as capable of  “moving through urban areas by rolling on the ground with little noise”. This device is expected to reduce the threat to personnel in dangerous surroundings. The Chinese side demonstrated more than 20 pieces of equipment including robot dogs and through-wall radar. The exercise, in addition to counter-terrorism, will also include disaster relief scenarios, including earthquakes and damages from snow. At the same time, the collaboration will strengthen mutual trust and understanding between the armed forces of both nations, while boosting their joint operational capabilities in areas like multidimensional search and armed rescue. (Liu Xuanzun, “China’s ball-shaped recon drone debuts in a joint drill with Nepal,” Global Times, 22 September 2024)

CHINA & AFRICA
China recreating Hunan model for East Africa, says an editorial in SCMP
On 23 September, an editorial in SCMP reported that the Government of the People’s Republic of China was attempting to recreate the ancient Silk Road to East Africa. The Chinese government was promoting the interconnected development of transport links and industrial parks built and operated by Chinese companies in Africa; as well as air, railroad, and sea links under the Belt and Road Initiative (BRI). A China-Africa specialist and Associate Professor at the China Studies Centre at the University of Sydney Laura Johnston stated the Chinese government was following the Hunan model. The landlocked Hunan Province built the Hunan-Guandong- Africa rail-sea intermodal logistics route which transports goods from Hunan to the southern coast.  During the recent Forum on China-Africa Cooperation (FOCAC) Summit; the President of China, Xi Jinping held meetings with the President of Kenya, William Ruto, the President of Tanzania, Samia Suluhu Hassan, and the Prime Minister of Ethiopia, Abiy Ahmed over ports and rail connectivity projects for the upcoming network.  Xi reaffirmed Beijing’s support for infrastructure projects and interconnected development in these countries; such as the Addis Ababa-Djibouti railway. According to Johnston, the Chinese government was planning to replicate the connection between landlocked and coastal Chinese provinces with African countries. Johnston also stated the strategic coastal location and ports of the East African region made it crucial to the BRI ambitions of China. A professor emerita in international political economy at the School of Advanced International Studies at Johns Hopkins University, Deborah Brautigam stated that African leaders viewed the investment projects in East Africa as a long-term programme. Brautigam also stated that Chinese leaders favoured the continuation of the ‘two axes plus two coasts’ plans with the development of the Red Sea and the Indian Ocean.  A Research Fellow in the Centre of International and Comparative Politics at the Stellenbosch University in South Africa, Tim Zajontz stated integrating BRI plans with national development plans and African ambitions to industrialize was key to the Chinese government’s plans. However, with several African nations beyond debt sustainability levels, regional organizations were likely to garner a considerable share of Chinese lending to Africa. ( Jevans Nyabiage, “Why China’s sea-rail transport link plan for Africa is an echo of the ‘Hunan model’,” South China Morning Post, 23 September 2024)
 
Egypt rumoured to buy Chinese J-10C jets, reports SCMP
On 21 September, SCMP reported that the Government of Egypt was reportedly seeking to buy fighter jets from the Government of the People’s Republic of China. According to the Bulgarian defence news portal Bulgarian Military, the Ministry of Defence of Egypt reportedly placed an order for Chinese J-10C 4.5-generation fighter jets. However, neither the Egyptian nor Chinese governments confirmed the news.  A senior international defence researcher at the US think tank Rand Corporation, Timothy Heath stated the Egyptian government’s purchase was in line with its push to diversify its sources of military purchases, which also included Russia and France. Heath also stated Egypt was trying to reduce its reliance on the US, and China’s limited focus on human rights compared to the West made it an attractive proposition. According to analysts, the Chinese government’s growing influence in the region is reflected in the Egyptian decision to purchase Chinese combat aircraft.  The trend to diversify away from US equipment is not limited to Egypt, with other US allies in the Middle East like Saudi Arabia following the same policy. ( Seong Hyeon Choi,  “Egypt rumoured to buy Chinese J-10C jets as Middle East looks beyond US weapons,” South China Morning Post, 21 September 2024)
 
CHINA & RUSSIA
China-Russia joint military exercise reaches second phase, reports Global Times
On 22 September, Global Times reported that the ongoing Northern/Interaction-2024 joint military exercises between the Government of the People’s Republic of China and the Government of the Russian Federation had entered its second phase. The Ministry of Defence of the Russian Federation informed about the second phase, in which Chinese and Russian warships are scheduled to hold live-fire drill sessions in the Sea of Japan. The Chinese People’s Liberation Army (PLA) Navy stated the opening ceremony was conducted at a Russian naval port. Forces from the two sides will hold joint drill sessions over objectives like alert and defence, live-fire shooting, air defence and anti-missiles, and maritime and air escort. The Russian defence ministry informed a joint detachment of ships had set out from the Russian city of Vladivostok, and would hold exercises in the Sea of Japan during the week.  An anonymous Chinese military expert stated the drill was separated into two phases, because the first phase had been held concurrently with the Ocean-2024 strategic exercise of Russia, and the second phase is a standalone session. Another Chinese military expert, Zhang Junshe stated the consecutive military interactions showed China and Russia were boosting strategic cooperation; which was conducive to global peace and stability. According to experts, the joint drills and joint patrols conducted between the Chinese and Russian governments besides the military drill showcased a high level of security and defence cooperation; and are conducive to the maintenance of international maritime order and advancing ocean governance. (Liu Xuanzun, “China-Russia joint drill enters 2nd phase,” Global Times, 22 September 2024)
 
CHINA & THE AMERICAS
US Commerce Department to propose ban on Chinese hardware and software, reports Reuters
On 22 September, Reuters reported that the US Commerce Department was planning to propose a prohibition of Chinese software and hardware in connected and autonomous vehicles on American roads. The US Government has raised national security concerns over Chinese companies collecting data on US drivers and infrastructure, and manipulating vehicles connected to the internet and navigation systems. According to sources, the proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving system software or hardware. The US Department of Commerce also plans to give the public 30 days to comment before the finalization of the rules. The department also plans to propose prohibitions on software effective in the 2027 model year, with an effective hardware ban to be implemented from January 2029 or the 2030 model year. The prohibitions would include vehicles with certain Bluetooth, satellite, and wireless features as well as autonomous and driverless vehicles. The proposals come amidst attempts by the US Government to impose restrictions on Chinese vehicles, software, and components. (David Shepardson, “Exclusive: US to propose a ban on Chinese software, hardware in connected vehicles,” Reuters, 22 September 2024)

China Reader Daily Wire | 21 September 2024, Saturday | Vol.1 No. 178
INTERNAL
Xi Jinping calls to “fully utilize” CPPCC in advancing “political unity and cooperation”
On 20 September, in a ceremony commemorating the 75th anniversary of the Chinese People’s Political Consultative Conference (CPPCC), President Xi Jinping again emphasised the critical role of this system in CCP promoting whole-process people’s democracy. According to him, the CPPCC is an innovative political system uniting different parties, persons, and groups under the leadership of the Communist Party of China. He emphasised strengthening the CPPCC’s role as a specialist advisory body and improving China’s socialist political party system. Xi, underlining the importance of consultative democracy, urged its broad, multilevel, and institutionalised development. He called upon the CPPCC to strengthen political unity, solve intricate issues in Chinese modernisation, and guide non-Party intellectuals and emerging social groups. Xi also emphasised the importance of mechanisms for thorough-going consultation and reflection of public opinion. The president instructed the CPC committees to enhance their leadership over the CPPCC work. Other top leaders attending the session are Li Qiang, Zhao Leji, and Wang Huning. Wang presided over and vowed to turn the outcome of the session into reality as led by Xi. (“Xi Jinping stresses fully utilizing CPPCC's political advantage,” CGTN, 20 September 2024)

OUTERSPACE
With four new satellites, China expands Tianqi network in low Earth orbit
On 20 September, China launched four new satellites into low Earth orbit, expanding the Tianqi constellation of satellites. The Kuaizhou-1A rocket, known for its precision and cost-effectiveness, successfully deployed Tianqi satellites 29-32 into their designated orbits. This happens to be its 33rd flight for the KZ series and the 27th for the KZ-1A. The Tianqi constellation, when finished, will provide data services worldwide to support various applications environmental monitoring and emergency communication could be mentioned. This was one of the most significant steps China took as it continues to make its IoT information sector better. It reflects technological innovation regarding space-based communications. (“China launches four Tianqi constellation satellites,” CGTN, 21 September 2024)

CHINA & RUSSIA 
China-Russia naval drills intensify strategic cooperation in East Asia, says an editorial in SCMP
On 20 September, an editorial in SCMP reported that China and Russia recently staged joint naval exercises in the Sea of Japan, where the Chinese Navy has become more actively involved. This exercise included a live-fire drill, “Northern/Interaction-2024,” from 11 to 15 September. The next step in that operation was China’s participation in Russia’s massive “Ocean-2024” exercise, which will take place across multiple seas with more than 400 warships and 90,000 troops. Russian President Vladimir Putin said that “friendly states” are crucial for military cooperation amid tensions around the world. The frequency of China-Russia joint exercises has significantly increased over the past decade, reaching nine drills this year alone. According to analysts, these drills are an example of the ability of both countries to counter US influence in the region. According to Malcolm Davis of the Australian Strategic Policy Institute, such exercises give the partnership “characteristics of a military alliance”. These exercises highlight the strategic significance of the Sea of Japan because it comes into key waterways and is bordered by both US  allies and potential adversaries. (Seong Hyeon Choi, “In Sea of Japan, China and Russia flex power to counter US and allies in Asia-Pacific,” South China Morning Post, 20 September 2024)

CHINA & SOUTHEAST ASIA
Philippine senator urges China to combat illegal gambling and cybercrime networks
On 20 September, Philippines Senator Risa Hontiveros called for increased efforts from China to tackle illegal online gambling and scam operations run by Chinese criminal syndicates in Southeast Asia. According to the UN, these networks often made use of forced labour to exploit hundreds of thousands of persons. She said further that international cooperation against cybercrime must be strengthened as a potential threatening force in undermining the law-and-order institutions. More than 400 Chinese-run online gaming establishments have been identified by the Philippines, which employ tens of thousands, many of whom were trafficked illegally to the country. President Ferdinand Marcos Jr recently banned the operations, citing a lot of criminal activities. Hontiveros criticised China’s response and said: “China is not doing enough, given her impressive powers.” She also brought up the need for greater accountability from social media companies. This has been cited as the justification for the rise of the gambling industry in the Philippines, bribing officials, and rampant corruption. The most prominent recent case was the detention of Alice Guo, an ex-mayor held in Indonesia for her alleged role in illegal gambling enterprises and attempts to gain citizenship there. (“Philippine senator says China should do more to help fight cybercrime gangs,” AP News, 20 September 2024) 

Chinese President and Malaysian King pledge to enhanced cooperation on the 50th anniversary of diplomatic ties
On 20 September, the President of China, Xi Jinping, and Malaysia’s King Sultan Ibrahim Sultan Iskandar met in Beijing as their countries were marking 50 years of diplomatic relations. Jinping and the monarch sealed agreements to strengthen strategic partnerships, deepen cooperation, and push modernisation efforts. Xi reiterated the long friendship between the two countries. He said they “have always been friendly, supporting each other.” He assured China’s interest in collaboration with the Madani principles in Malaysia but through enhanced cooperation in areas like the Belt and Road Initiative and new promising sectors like new energy and digital economy. The Malaysian King confirmed his country’s view that China is a trustworthy partner and expressed his support for Xi’s global initiatives. Malaysia will assume the chair of ASEAN next year, and both leaders stressed the importance of stability in the region. The two also underlined mutual concerns to promote bilateral relations and help stabilize regional peace and development. (“China, Malaysia commit to closer cooperation in modernization efforts,” CGTN, 20 September 2024)
 
Philippine Senator probes ex-mayor’s alleged ties to Chinese crime networks
On 20 September, Senator Risa Hontiveros investigated former Bamban Mayor Alice Guo, who had been charged with having connections with Chinese criminal syndicates. Guo, also popularly known as Guo Hua Ping, will be charged for alleged counterfeiting in the diversion of funds used in offshore gambling operations.  Hontiveros said: “I'm not yet ready to close the book on that, that she's not connected. to spying.” She said it trying to underline the seriousness of the allegations. The case has attracted national attention amidst rising tensions with China over the South China Sea disputes. Guo, who claims Philippine citizenship, denies all the allegations. President Ferdinand Marcos Jr calls for transparency regarding the expansion of online gambling businesses targeting Chinese customers. Hontiveros said: “In the case of the rise of POGOs. we have seen numerous and deep links to transnational crime syndicates.” The senator feels that this probe has only just scratched the surface of a very complicated issue and that the layers run far beyond the country’s borders. (“Philippine senator won't rule out ex-mayor Alice Guo is a Chinese spy,” Reuters, 20 September 2024)
 
CHINA & AFRICA
China showcases Y-20 military transport aircraft at South African aerospace exhibition, reports SCMP
On 20 September, SCMP reported that China is exhibiting its Y-20 military transport aircraft at the Africa Aerospace and Defence Exhibition (AAD 2024) in South Africa to seek more military exports from African nations. Capt Liang Yao said the aircraft will perform: “carefully choreographed manoeuvres” during the 10-minute display. The Y-20 is a similar aircraft to the Soviet Il-76 and the American C-17 as it can carry 66 tonnes and since 2016 has been a workhorse of the Chinese air force. This is the show that came into being when the Y-20 debuted at the Egypt International Airshow, impressively manoeuvring and flying over the Giza Pyramids. China is actively marketing the Y-20, of course, but also its export version, the Y-20BE, to countries such as Nigeria, shows that it is intent on developing its capabilities quickly. The plane’s participation in AAD 2024 reflects the efforts by China to strengthen its ties with Africa amid rising competition in the geopolitical landscape against the US. (Liu Zhen, “China showcases Y-20 transport plane, other military exports at South Africa air show,” South China Morning Post, 20 September 2024)
 
China’s West African diplomacy tested by Niger-Benin pipeline challenges, says an opinion in East Asia Forum
On 21 September, an opinion in the East Asia Forum stated that the Global Security Initiative launched by China in 2022 is bound to test its nerves as political instability threatens the multibillion-dollar investments in West Africa. A 2000-kilometre pipeline connecting Niger and Benin is being constructed by the China National Petroleum Corporation, with a proposed daily output of 90,000 barrels of oil. The project has been constantly delayed and disrupted. Complications in regional tensions added by the July 2023 military coup in Niger have complicated China’s diplomatic efforts and economic interests. The pipeline, valued at more than USD 5 billion, is CNPC’s largest cross-border crude oil investment. However, the growing war between Niger and Benin, in addition to terror threats, has caused CNPC to close its operations. With CNPC losing USD 9 million a day in this operation, Niger loses USD 1.8 million in oil revenues. China’s diplomacy had changed dramatically as CNPC was now set to mediate between Niger and Benin. This was a greater shift from state-to-state diplomacy. Challenges of terrorist attacks on the Chinese facilities and regional instability remained, even as there was some progress. The entire situation showcases the intricacies involved in China’s energy diplomacy in West Africa, and this kind of situation could be added to more cautious investment strategies in the coming years. For Beijing to successfully realise its aspirations as a global provider of security and economic interest in the region, it would need to navigate through the challenges that arise. (Samir Bhattacharya, “China’s mediation diplomacy hits a roadblock in Africa,” East Asia Forum, 21 September 2024)

CHINA & EUROPE
UK’s China policy in a dilemma as it balances economics and ethics, says an opinion in East Asia Forum
On 18 September, an opinion in the East Asia Forum stated that the 2024 UK general election has shown a gap in foreign policy discourse, especially regarding China. Although Prime Minister Keir Starmer-led government faces numerous challenges in the domestic sphere, his party remains ambiguous and lackluster in its position regarding East Asia. It is the difficult job of the Labour government to redefine the UK-China relationship, which marks a departure from the “Golden Era” of David Cameron’s times. Starmer’s previous experience as Director of Public Prosecutions may signify that there is a commitment to governance with certain ethics and being more principled about China. The economic realities are however that UK universities are pretty reliant on Chinese students for revenue. It is one of the fine balancing between financial benefits and strategic risks. Labour promises an audited view of UK-China relations as proof that there will be a clear, careful, and evidence-informed policy. The author stated that there is another case in which China may want to score a point in the wake of Brexit opportunities in the aftermath of Brexit, where investments can be channelled into Labour-held northern constituencies. This would enable China to stretch its grasp over important economic hubs and be a part of what the UK would consider rebalancing the economy. The strategic autonomy that Starmer needs to balance the imperatives of economic growth lies in the fact that this world, which Britain perceives as needing rebalancing, is increasingly multipolar. (Mitchell Gallagher, “UK faces a critical juncture in its China relationship,” East Asia Forum, 18 September 2024)
 
China Reader Daily Wire | 20 September 2024, Friday | Vol.1 No. 177
OUTERSPACE
China advances BeiDou navigation system with final backup satellites launch
On 19 September, China recently launched the last pair of backup satellites for the BeiDou-3 Navigation Satellite System (BDS-3). The last two satellites-the 59th and 60th members of the BeiDou family have been transferred to medium Earth orbit to boost the system’s reliability and improve its positioning, navigation, and timing services globally. As chief designer Liu Yingchun stated this series of satellites heralds the transition from BDS-3 into the development phase of BDS-4. Chinese BeiDou system followed the three-step approach, beginning within borderlines and then gradually covering the entire globe. With the completion of BDS-3 in 2020, China entered an elite club of countries with individual global navigation systems. China looks forward to a much more complex system by 2035, extending from “deep sea to deep space”. This ambitious plan includes developing a low-orbit constellation by 2025 for centimetre-level positioning and addressing challenges in underwater, indoor, and deep space navigation. (“China launches last pair of backup satellites for BeiDou-3 system,” CGTN, 19 September 2024)

INTERNAL
China’s dairy sector faces oversupply amid declining demand, reports Reuters
On 20 September, Reuters reported that China’s dairy industry is grappling with an unexpected milk surplus, a consequence of declining birth rates and shifting consumer preferences. The government has poured in all the resources needed to ramp up the industry, but consumption of milk has gone from a record 14.4 kg per capita in 2021 to 12.4 kg in 2022. At the same time, milk production almost touched 42 million tonnes last year, beating the 2025 target Beijing had set for itself. This oversupply pushes milk prices below the average production cost of 3.8 yuan per kilogram, forcing large numbers of farms to shut down or postpone reproduction altogether. It is also partly driven by a listless economy and an aging population, affecting the demand for dairy products. Imports have also declined, and dairy product volumes are forecast to fall by 12 per cent in 2024. The impact on infant formula is the highest and has affected A2 Milk Company, which said sales plunged by both volume and value. In an assessment, Li Yifan of StoneX believes “dairy farming companies are losing money on selling milk and selling beef,” the two major concerning issues of the business at the moment. These oversupplies illustrate the unintended effects of China’s push for food self-sufficiency in dairy. (Mei Mei Chu, “China dairy farms swim in milk as fewer babies, slow economy cut demand,” Reuters, 20 September 2024)

CHINA & SOUTH ASIA
Chinese ambassador to India welcomes more Indian investments in China, reports Reuters
On 19 September, Reuters reported that the Ambassador of the People’s Republic of China to India, Xu Feihong had stated the Government of the People’s Republic of China would welcome more Indian investments and commodities in the Chinese market. Xu stated that China was willing to advance cooperation with the Government of India on science and technology; and hoped that the Indian government would take measures to resume direct flights and facilitate visas for Chinese citizens. The ambassador also stated that he hoped the Indian government would provide a sound business environment for Chinese enterprises. Economic relations between China and India have been strained since clashes between the armies of the two countries in 2020. However, China continues to be the biggest source of goods, and the largest supplier of industrial products for India. The Indian government has also eased restrictions on Chinese firms. (“China welcomes more Indian investments, ambassador says,” Reuters, 19 September 2024)

INTERNAL
China’s NDRC ramps up efforts to boost domestic demand
On 19 September, China’s top economic planner, the National Development and Reform Commission (NDRC), stepped up efforts to boost investment and consumption. In a recent press conference, spokesperson Jin Xiandong presented several strategies. According to him, the NDRC intends to support government investment to drive social investment and encourage the private sector to be part of major national projects. Jin emphasized offering high-quality projects to private investors and promoting government-private investment cooperation. To boost consumption the NDRC will resort to “employment-first" policies and seek ways to raise income. Ultra-long special treasury bonds will also be used to promote the trade-in of consumer goods and boost service consumption in various sectors. Retail sales of consumer goods were up 2.1 per cent year-over-year in August, and the consumer price index rose 0.6 per cent in the same month. These measures are focused on the stable recovery of the consumer market of China and strengthening the general domestic demand. (“China steps up efforts to boost domestic demand,” CGTN, 20 September 2024)

Volkswagen’s Xinjiang facility audit raises credibility concerns, says an editorial in Financial Times
On 20 September, an editorial in the Financial Times reported that Volkswagen’s claims to have had a clean audit at its Xinjiang facility have recently fallen under a lens following an anonymously leaked report whose contents reveal clear deviations from international standards. The work of auditing was done by Guangdong Liangma Law in partnership with Löning consultancy. Although the firm would claim that its facility was free of certain deviations regarded as crucial in the SA8000 standard, it is clear that major lapses exist. One such deviation is found in aspects concerning worker interviews, which were live-streamed, and therefore, their confidence was compromised. The intimidation factor might also have left apparent marks on participants. Judy Gearhart, who works in social auditing said: “The conclusion of [VW’s] press release is not substantiated by the audit” The report highlights the challenges of conducting credible audits in Xinjiang, where human rights abuses against Uyghurs have been documented. The qualifications of personnel engaged in conducting the audit have to be questioned, too. For instance, Clive Greenwood is said to have operated expat bars and pubs. Neither Liangma nor Löning is certified to conduct SA8000 audits. VW noted: “The group always complies with legal requirements in its communications,” but critic and researcher Adrian Zenz argues that the company’s claims are “misleading or false.” The scandal now puts to the fore the challenges Western companies face in sensitive areas of China. (Patricia Nilsson and Edward White, “VW audit of Xinjiang plant failed to meet international standards,” Financial Times, 20 September 2024)

China’s economic shift leaves professionals adrift in “Garbage Time”, says an editorial in Bloomberg
On 19 September, an editorial in Bloomberg reported that President Xi Jinping's vision for China's economy affected millions. The departure from finance and real estate, consumer tech, and a move to electric vehicles, and chip production has upended the lives of millions. Thomas Wu, a 43-year-old insurance executive, embodies this struggle, facing a 20% pay cut and anxiety about his children's future. The impact is felt across the sectors because the salaries of the workers are cut, some are laid off, and the lifestyle of some is under public review. The finance sector, a symbol of prosperity for some time, is now reeling from the full force of pay cutbacks and more regulation. One securities firm worker said: “It feels like we're rats in the street smacked by everyone.” This feeling of malaise in China’s educated workforce can go on to perpetuate further economic woes such as deflation and weak consumer spending. This has spawned new colloquialisms like “tang ping” (lying flat) and “garbage time of history,” expressing a general malaise. The portfolio manager Steve Huang said: “None of those complaining now would actually dare to” protest, which captures the resignation in Xi’s China to this reality. (“Xi Unleashes a Crisis for Millions of China’s Best-Paid Workers,” Bloomberg, 19 September 2024)
 
CHINA & THE PACIFIC
China-Australia co-host 10th Joint Committee on Science and Technology Cooperation
On 19 September, as a major milestone towards stronger cooperation, China and Australia co-hosted the 10th Joint Committee on Science and Technology Cooperation in Canberra. The discussion reflected the years-long collaborative partnership between the two nations about scientific and technological innovation, putting emphasis on how that bilateral relationship has been crucial for both countries. The discussion parties included the major institutions’ representatives from China’s Ministry of Science and Technology and Australia’s Department of Industry, Science and Resources. The committee evaluated the past achievements and mapped out even deeper cooperation in a wider spectrum of fields. Both sides considered what they could reap from their joint efforts in terms of economic and social development. The agreement reached at the meeting urged the parties to use the occasion as a starting point for more intensive and meaningful cooperation. They promised to contribute not only to the development of the regions in which they respectively reside, but also to global scientific progress and better quality of living. Such renewed commitment makes international scientific partnership indispensable in the challenges being presented by the world. (“China, Australia seek wider, deeper technological cooperation,” CGTN, 20 September 2024)
 
CHINA & SOUTHEAST ASIA
Malaysian King seeks Chinese investment for high-speed rail project to Singapore, reports Bloomberg
On 20 September, Bloomberg reported that Malaysia’s King, Sultan Ibrahim Iskandar, is pursuing Chinese investment for a multibillion-dollar high-speed rail link to Singapore. With over 100 billion ringgit (USD 23.8 billion), the project is expected to reduce the travel time between the cities to just 90 minutes. During his state visit to China, the Sultan will seek funding from a Chinese state-owned company under President Xi Jinping’s Belt and Road Initiative. Malaysia’s government, with Prime Minister Anwar Ibrahim, revived the project last year and demanded the study be privately funded. It is up to the cabinet to decide whether the project is viable by end-year said Transport Minister Anthony Loke. Three groups are bidding for the project which is placed on the shortlist, one of which involves YTL Corp. Sultan Ibrahim, who took to the throne in January under Malaysia’s system of rotating monarchy, has always been an ardent proponent of the rail link. He had proposed a 30-year concession to a private consortium that would fund and run the link, handing it over to the government at the end of that period. The project also depends on Singapore’s stance, with Prime Minister Lawrence Wong stating that he would consider new proposals. (Niki Koswanage, “Malaysia’s King to Seek Funds for High-Speed Rail on China Visit,” Bloomberg, 20 September 2024)  

China funds the new Foreign Ministry building in Burundi
On 19 September, China undertook the obligation to build the 11-story building of the Ministry of Foreign Affairs and Development Cooperation for the Burundian Republic in Gitega. Signed between Minister Albert Shingiro and Chinese Ambassador Zhao Jiangping, the agreement sets aside unending cooperation between the two countries since 1963. The minister appreciated this “significant donation,” pointing out that support from China has always been there since the independence of Burundi. The fully-equipped facility, to be completed in 2028, will centralise ministry operations, shifting from the current dispersed system. Ambassador Zhao stated that the project started with a design in 2020 but has become more gainful with recent feasibility studies done in tandem with the 2024 FOCAC Summit She highlighted China’s commitment to support the development of Burundi through its infrastructure and trade initiatives. This would also lead to the improvement of working conditions at the ministry but would stand as proof that relations between China and Burundi are growing. (“China, Burundi sign agreement for government building construction,” CGTN, 20 September 2024)

CHINA & SOUTHEAST ASIA
China-Myanmar trade route hampered by Myanmar war, says an editorial in BBC News
On 20 September, an editorial in BBC News reported that trade through the China-Myanmar Economic Corridor was affected by the civil war in Myanmar. The corridor aimed to connect the landlocked south-western parts of China such as Kunming in Yunnan Province to a deep-sea port being built along the Indian Ocean coast of Myanmar by the Government of the People’s Republic of China. Towns like Ruili in China and Muse in Myanmar were designated as special trade zones.  Chinese investments in energy, infrastructure, and rare earth mining for the manufacturing of electric vehicles would pass through the route, However, Shan State in Myanmar on the China border is now witnessing heavy battles between the Myanmar military junta and rebel forces; damaging the plans of the Chinese government.  A Burmese food and drinks stall owner in Ruili, Li Mianzhen stated the economic condition in Myanmar was dire, and no one had enough money. Li informed that people from Myanmar had crossed the border into China to earn as little as 10 CNY, to feed their families. A Burmese worker in an industrial park on the outskirts of Ruili, Zin Aung informed he and other workers from Myanmar were working in China as a sanctuary; and sent money back to their families in Myanmar. Ruili has become a haven for Burmese workers escaping the war, with Chinese government-backed firms recruiting Burmese workers as cheap labour. It is estimated that the Burmese workers earn about 2,400 CNY a month, less than their Chinese colleagues. According to the Myanmar advisor to the International Crisis Group, Richard Horsey; the Chinese government did not like the present situation in Myanmar and was pushing for elections to resolve the situation. However, it remains unclear what Beijing can do beyond pressuring both the Government of Myanmar and rebels for peace talks. The impasse can be reflected in the fact that economic activities in border towns like Ruili have declined; with labour from Burma also having stopped. (Laura Bicker, “China spent millions on this new trade route-then a war got in the way,” BBC News, 20 September 2024)
  
CHINA & AFRICA
South African minister states FOCAC will boost Global South modernization, reports Global Times
On 18 September, Global Times published an interview conducted with the Minister of International Relations and Cooperation of the Government of South Africa, Ronald Lamola. Lamola stated that the Forum on China-Africa Cooperation (FOCAC) Summit 2024 was an opportunity for China and Africa to carry out more practical cooperation, promote solidarity, and boost the modernization of the Global South. Lamola also stated that the African Continental Free Trade Area (AfCFTA) was developing through China-Africa cooperation in infrastructure.  According to Lamola, relations between the Government of the People’s Republic of China and the South African government are at a “golden era”, with the visit of the President of South Africa, Cyril Ramaphosa to China an example of this. Lamola informed that Chinese investment had created thousands of jobs annually in South Africa; and the South African government was seeking to increase cooperation with China in fields such as clean energy and electric vehicles.  Lamola stated South Africa was seeking to learn from the successful modernization experience of China. The foreign minister also stated people-to-people exchanges between the two countries such as South African students arriving in Chinese universities and engaging in vocational training would have a positive influence upon the economic development of South Africa. Lamola also informed that South Africa should join hands with China to promote a fair and multilateral world order. He also informed South Africa would continue to engage with global institutions like the United Nations and FOCAC to support the modernization of the Global South. (  Fan Anqi and Bai Yunyi,  “Exclusive: FOCAC promotes solidarity of Global South, boost modernization: South Africa FM,” Global Times, 18 September 2024)
 
CHINA & THE MIDDLE EAST
China opposes any action against Lebanese sovereignty, reports Global Times
On 19 September, Global Times reported that the Ministry of Foreign Affairs of the People’s Republic of China had stated it opposed any act that infringed upon the sovereignty and security of Lebanon. The statement came after pager and radio bomb attacks in Lebanon, which left at least 20 individuals dead and thousands injured.  The Government of Lebanon has blamed Israel for the explosions, although the Government of Israel has not commented on the same. A spokesperson for the Chinese foreign ministry, Lin Jian stated the Government of the People’s Republic of China opposed any act infringing upon the sovereignty and security and Lebanon; and expressed concerns over a potential escalation of tensions in the Middle East due to the incident. Lin also stated that the Chinese government urged all relevant parties to earnestly safeguard peace and stability in the Middle East.  A professor at the Middle East Studies Institute of Shanghai International Studies University, Lin Zhongmin stated the explosions had blurred the lines between military and civilian equipment; with a large number of injuries amongst civilians. Lin also stated that the usage of communication devices to target armed personnel showed new challenges for international security, and could further exacerbate regional conflicts. According to Chinese security experts, the pager and radio attacks highlighted the growing danger of civilian communication devices and other electronic equipment being weaponized in modern warfare. (Zhao Yusha and Shen Sheng,  “China opposes any actions that infringe on Lebanon’s sovereignty, security: FM,” Global Times, 19 September 2024)
 
CHINA & EUROPE
China and EU fail to agree upon EV imports deal, reports SCMP
On 20 September, SCMP reported that the Government of the People’s Republic of China and the European Union (EU) had failed to reach a deal on ending a dispute over the import of electric vehicles (EVs). A readout from the European Commission informed that talks between the European Commissioner for Trade, Valdis Dombrovskis, and the Minister of Commerce for the People’s Republic of China, Wang Wentao were “frank and constructive”; and both sides had reaffirmed their desire to find a politically agreeable solution. According to the readout, the two sides agreed to take a renewed look at price undertakings. This could mean a commitment from the Chinese government to place a minimum price on EVs exported to the EU, addressing European concerns that Chinese EVs are undercutting local competition.  A readout from the Ministry of Commerce of the People’s Republic of China warned that the Chinese government would take steps required to safeguard the legitimate rights and interests of enterprises, if the EU insisted on implementing unreasonable tax measures. The onus is now upon the Chinese government to formulate a deal meeting the criteria of the European Commission (EC). The EC informed it would push ahead with plans to impose tariffs on Chinese EVs, in case a deal was not agreed upon. The EU will impose the tariffs for five years from 30 October, in case no deal is agreed upon. There have been disagreements between EU members over imposing the tariffs; with countries like Spain and Germany opposing the proposed tariffs. ( Finbarr Bermingham,  “EU and China trade negotiators fail to strike deal on electric vehicle imports,” South China Morning Post, 20 September 2024)
 
CHINA & THE AMERICAS
Chinese foreign ministry criticizes FBI for hyping Chinese hacking group, reports Global Times
On 19 September, Global Times reported the Ministry of Foreign Affairs of the People’s Republic of China had slammed attempts by the Federal Bureau of Investigation (FBI) to hype up the so-called Chinese hacking group Flax Typhoon. A spokesperson for the Chinese foreign ministry, Lin Jian stated the Government of the People’s Republic of China was opposed to all forms of cyberattacks; and groundless accusations and smears against China. Lin stated that the Chinese government urged the US to behave as a responsible major country and step up dialogue and cooperation with the international community; alongside jointly responding to cybersecurity risks. A professor at the China Foreign Affairs University, Li Haidong stated the FBI and the US Department of Justice (DoJ) had not provided sufficient evidence regarding Flax Typhoon, and its connection with China. According to Li, the hacker hype was only to justify measures by the US Government to contain China, and undermine Beijing’s global image. Li also stated that accusations by the FBI were questionable and problematic due to the threat of information released by the agency being politically motivated. An example of this is the China Initiative, which was started by the FBI and the DoJ to counter Chinese economic espionage; but ended up harassing innocent scientists and led to perceptions that the entire Chinese-American community was disloyal. ( Zhang Han and Shen Sheng, “FBI’s new attempt to hype so-called Chinese hacking group slammed by FM,” Global Times, 19 September 2024)

China Reader Daily Wire | 19 September 2024, Thursday | Vol.1 No. 176
INTERNAL
China struggles with an ageing population and pension reform, says an opinion in The Guardian
On 18 September, an opinion in The Guardian stated that China is raising retirement ages to adjust to an ageing population, where the problem has been worsened by decades of birth control policies. Retirement ages are among the world’s lowest, where women retire as young as 50 and men, 60 years old at retirement, while life expectancy now reaches 78. The government says these will be hiked gradually over 15 years when men retire at 63, and women at 55 or 58, depending on the profession. This is the biggest demographic shift in history in terms of scope and velocity. By 2035, over-65s will comprise 30 per cent of the population, compared with 14.2 per cent as of 2021. The pension system has exerted severe pressure, with the Chinese Academy of Social Sciences warning that it could be exhausted by 2035 without a radical overhaul. Economic pressures compound the problem. Cornell University’s Eswar Prasad said: “The economic outlook is flashing red, or pretty close to red.” Young people, facing high unemployment and uncertainty, are less willing to contribute to pensions. A comment on the internet entailed frustration: “When I was born, they said too many. When I gave birth, they said too few. When I wanted to work, they said I was too old. And when I retire, they say I'm too young.” (“The Guardian view on China’s ageing population: an economic and social conundrum,” The Guardian, 18 September 2024)

CHINA & SOUTHEAST ASIA
Maldives deepens ties with China as ruling party delegation visits Beijing
On 18 September, a delegation from the Maldives’ People’s National Congress kick-started their eight-day tour of China. This would help in strengthening relations between the two countries. The team, led by Transport Minister Mohamed Ameen, is expected to learn valuable lessons in China’s economic development strategies and develop bilateral ties. The trip follows a visit to China by President Mohammad Muizzu, who broke convention when he made it his first overseas visit since assuming office in November. He will meet with Liu Jianchao, the Minister in charge of the International Department of the CPC, and then travel to five Chinese cities. The visit marks the increasing influence of the Chinese in the Maldives as bilateral trade stands above USD 700 million. A Free Trade Agreement, which is set to come into effect in January 2025, is to drive the trade upwards to USD 100 billion. PNC Secretary General Zeenaz Adnan said that the trip is to:  “seek the strategies used by China to achieve the current economic development,” citing the interest of the Maldives in replicating China’s economic model. (“Maldives' ruling party team embarks on China visit,” The Week, 18 September 2024) 

INTERNAL
China issues flood alerts as typhoons approach eastern coast
On 18 September, China’s Ministry of Water Resources issued a Level-IV flood emergency across Shanghai, Jiangsu, Zhejiang, Henan, and Hainan regions due to Typhoon Bebinca, Typhoon Pulasan, and a tropical depression forecast to hit the regions. The Ministry of Water Resources said water levels in some rivers may top warning thresholds between Wednesday and Friday. The officials have emphasised the necessity of monitoring and early warning to avoid disasters in small and medium-sized rivers and mountainous areas. The National Meteorological Center has issued a yellow alert on Typhoon Pulasan, making an overall prediction that eastern China might face strong winds and heavy rain. Pulasan is said to make landfall between Thursday afternoon and evening on Zhejiang’s coast. These weather events remind everyone to be more vigilant and prepared in anticipation of these events so that public safety may be ensured, and damage is minimised. (“China activates emergency response to flooding,” CGTN, 19 September 2024)
 
EXTERNAL
China halts international adoptions leaving families in limbo, says an editorial in The Guardian
On 19 September, an editorial in The Guardian reported that China's recent announcement to end its 35-year-old international adoption program has sent shockwaves through the adoption community. This move, confirmed by government spokesperson Mao Ning, leaves prospective parents who were waiting with broken hearts and complicated emotions by many adoptees. Since its inception, over 160,000 Chinese children have been adopted in foreign lands, of whom over half have gone to America. Adopted mainly as an offshoot of China’s one-child policy to halt the abandonment of many of those children, especially girls, created under this umbrella, the policy was aggressively pursued within China. The news for families midway through the adoption process has been really brutal.  Lauren and Harrison Smith, who were matched with a boy named Benaiah in 2019, received the crushing news via a phone call.  Lauren said: “My heart started racing,” and “This is it!' I thought, but as soon as I heard her voice, I knew this call wasn't a call of good news.” The news has elicited varied emotions within the adoptee communities of Chinese people. The development manager of the Nanchang Project Xavier Huang said: “The reality for many is that however loving and happy the family these adoptees grow up in, there is a series of huge traumas that we all experience.” (Helen Davidson and Amy Hawkins, “‘It breaks us deeply’: anguish as China closes door to foreign adoptions,” The Guardian, 19 September 2024)
 
CHINA & SOUTH ASIA
India surpasses China in key MSCI Index reflecting economic momentum
On 18 September, India surpassed China in the MSCI investable large, mid, and small-cap index for the first time. As per reports by Morgan Stanley, India weighs 2.35 per cent, which is greater than that of China at 2.24 per cent. This has marked a great milestone for India as the country has recorded its robust economic growth coupled with sound market performance. Analysts led by Jonathan Garner believe India is still on the ascendant, headlining “market outperformance, new issuances, and liquidity improvements”. Nominal GDP growth runs in the low teens while severely trouncing its neighbour China. This sets up a “profound divergence in earnings growth environment”. Indian Benchmark indexes have gone up fantastically this year, and the NSE Nifty 50 and S&P BSE Sensex are currently up 17 per cent and 15 per cent respectively. Meanwhile, China’s Shanghai Composite Index has tumbled around 9 per cent after the country’s economic and property sectors were hit with concern. Morgan Stanley believes India will even surpass China in the MSCI Emerging Markets index, stating the Indian stock market rally is “only halfway done”. This brings in more significant weightage and is likely to attract even more inflows to the Indian market. ( Bharath Rajeswaran, “India tops China for the first time in a key MSCI equities index,” Reuters, 18 September 2024)
 
China’s builds new heliport near LAC, reports Business Standard
On 18 September, Business Standard reported that a new heliport by China in the ‘Fishtails’ region of Arunachal Pradesh, close to the Line of Actual Control (LAC), has caused strategic disquiet for New Delhi. The facility is located 20 km east of the LAC and is all but ready to be operational. Recent construction activity has begun from December 2023 as evident from the satellite images. The heliport has a 600-metre runway and infrastructure to support military as well as civilian use. Military reports believe “it will strengthen their reaction capabilities and enable a rapid build-up of troops during any contingency”. Retired Lt Gen Pravin Bakshi called the development a “threat,” urging a robust response from India. The heliport is part of China’s larger strategy to strengthen its frontier, including the setting up of dual-use ‘Xiaokang’ villages. India responded with ‘Vibrant Villages’, a Rs 4,800 crore project, and the construction of a trans-Arunachal highway. Experts still claim eastern Arunachal Pradesh is still behind in development while infrastructure rises sharply on the other side. Brahma Chellaney stated that these developments raise questions about the effectiveness of ongoing efforts to defuse military tensions along the LAC. (Nandini Singh, “China builds new heliport near LAC, raising security concerns for India,” Business Standard, 18 September 2024)
 
China faces a dilemma in balancing strategic ambitions with Pakistan, says an opinion in ORF
On 18 September, an opinion in ORF stated that China’s flagship Belt and Road Initiative project, the China-Pakistan Economic Corridor (CPEC), faces significant hurdles in Pakistan, particularly in Balochistan and Gilgit-Baltistan. Developed initially as a silver bullet for tackling Pakistan’s economic and security problems, CPEC today stands as a symbol of instability and discontent. At the same time, the recent Operation Herof conducted by the Balochistan Liberation Army also points to rising insurgency. Akhtar Mengal said: “The military will have to talk to the insurgents as they hold the cards.” Chinese investments have slowed down due to security concerns and Pakistan’s economic instability. Among those key and most visible sectors, one would include sectarian violence and terrorist activities towards Chinese people. The main aspect that could even better explain the current situation is the inactivity of the Port of Gwadar, an essential place in the CPEC route, as local Balochs are feeling neglected and exploited. China is faced with a dilemma that the failure of CPEC may have knock-on effects on other BRI projects while supporting it becomes incrementally expensive. A Pakistani journalist said: “G2G, the CPEC route from Gilgit to Gwadar, is now the centre stage of militant attacks.” Beijing has already begun to pressure Pakistan to provide security with such serious propositions as large-scale military operations. But this would prove to be another rip in the fragile fabric of Pakistan, further destabilisation and economic paralysis. (Sushant Sareen, “When the ‘flagship’ starts sinking: China’s CPEC is foundering in Balochistan,” ORF, 18 September 2024)
 
CHINA & THE PACIFIC
Australian opposition calls Chinese jet interception video propaganda, reports The Guardian
On 18 September, The Guardian reported that the Australian opposition had called a video showing Chinese military aircraft in an interception with an Australian surveillance plane as “risky and “deeply troubling” propaganda. The video posted on BiliBili showed a Chinese People’s Liberation Army (PLA) J-16 fighter intercepting a P-8 Poseidon aircraft from the Australian Defence Forces (ADF).  The Shadow Minister for Foreign Affairs, Simon Birmingham stated that the video was “an unacceptable glorification of unacceptable military conduct.”  Birmingham also stated that China appeared to be describing Australia as an enemy going by the video, which was not how Australia saw the relationship between the two countries. According to Birmingham, the conduct of the PLA jeopardized peace and stability; and the Government of Australia should raise the issue with the Government of the People’s Republic of China. The Shadow Minister for Defence, Andrew Hastie stated that the video was a reminder of the continued aggression towards the ADF by the PLA and not the actions of a friend. Hastie also stated that the Australian government needed to show strength in the face of aggression. The Minister for Defence of Australia, Richard Marles informed that the video had not been verified; and that Australia had called out China over unsafe and unprofessional incidents in the past. Marles also stated that the Australian government had tried to stabilize its relationship with China and work wherever possible. (  Emily Wind,  “Video of Chinese jet’s apparent intercept with Australian defence plane ‘deeply troubling’ propaganda, coalition says,” The Guardian, 18 September 2024)
 
CHINA & EUROPE
German minister urges political solution to EV tariffs dispute with China, reports CGTN
On 19 September, CGTN reported that the Federal Minister for Economic Affairs and Climate Action of Germany, Robert Habeck had urged the European Union (EU) and the Government of the People’s Republic of China to reach a political solution to the dispute over tariffs on Electric Vehicles (EVs).  Habeck stated that the objective was to avoid a trade conflict that could escalate into a tariff spiral that would harm both sides. Habeck also stated that the European Commission and the Chinese government needed to work towards a negotiated solution. The minister also informed that fair competition conditions needed to be guaranteed and the Federal Government of Germany welcomed competition with China. Last week, a spokesperson for the Federal Government of Germany had taken a similar stance to Habeck; informing that the German government had remained skeptical about proposed tariffs on EVs from the beginning. The spokesperson also stated that it would be helpful if other EU member states recognized that tariffs were not in the best interests of their industry. The European Commission imposed provisional tariffs on Chinese EV makers in July, sparking concerns over the competitiveness and green transition of the EU being damaged. ( “German economics minister urges political solution to EV tariffs with China,” CGTN, 19 September 2024)

CHINA & THE AMERICAS
FBI director informs second Chinese hacking group disengaged, reports Reuters
On 18 September, Reuters reported that the Director of the Federal Bureau of Information (FBI) Christopher Wray had informed that they had disrupted a second major Chinese hacking group. Wray stated that the group nicknamed Flax Typhoon was being run by a Chinese company called the Integrity Technology Group. According to Wray, the company posed as an IT firm but also “collected intelligence and performed reconnaissance for Chinese government security agencies.”  Wray informed that the Flax Typhoon was targeting critical infrastructure, corporations, media organizations, universities, and government agencies; just like the previous Chinese hacking group disrupted the Volt Typhoon. Wray also informed that Flax Typhoon had routed their malicious traffic through a network of “botnets” which included hijacked devices like cameras and digital storage services. The Embassy of the People’s Republic of China in the United States of America responded by accusing US authorities of making unwarranted accusations against China. The embassy also stated that the Government of the People’s Republic of China cracked down on all forms of cyberattacks. Meanwhile, Wray warned that the Flax Typhoon action was “just one round”, and actions against Chinese cyberattacks would continue. (“US FBI disrupts second Chinese hacking group, director says,” Reuters, 18 September 2024)
 
Chinese government sanctions nine Pentagon contractors over Taiwan arms deal, reports SCMP
On 18 September, SCMP reported that the Ministry of Foreign Affairs of the People’s Republic of China had announced sanctions on nine contractors for the US Department of Defence or Pentagon. The sanction was over the approval by the US State Department of a USD 28 million ‘return, repair and reshipment’ package to sell spare parts and related equipment for F-16V fighter aircraft to Taiwan.  The nine contractors sanctioned are Sierra Nevada Corporation, Stick Rudder Enterprises, Cubic Corporation, S3 Aerospace, TCOM LP, TextOre, Planate Management Group, ACT1 Federal, and Exovera. The Chinese foreign ministry informed that the Government of the People’s Republic of China would freeze assets and properties owned by these companies in China. Additionally, groups and individuals in China are now prohibited from transactions with these companies. A spokesperson for the Chinese foreign ministry, Lin Jian stated that weapons sales to Taiwan by the US seriously infringed upon China’s sovereignty and security interests, damaged China-US relations, and violated the one-China principle. Lin also urged the US Government to stop arming Taiwan and undermining peace and stability in the Taiwan Strait. ( William Zheng,  “Beijing sanctions 9 Pentagon contractors after US arms deal for Taiwan,” South China Morning Post, 18 September 2024)
 
China accuses US of blocking Gaza ceasefire attempts, reports SCMP
On 18 September, SCMP reported that the Government of the People’s Republic of China had accused the US Government of repeatedly shielding Israel. At a United Nations (UN) Security Council Meeting, the Deputy Permanent Representative of China to the United Nations, Geng Shuang stated the Security Council had failed to prevent Israel’s actions in Gaza. Geng also referred to the US vetoing three ceasefire resolutions, accusing it of rejecting and defying Security Council resolutions through its repeated shielding of Israel. Geng urged the US government to take action to push Israel toward ending its military operations. The Permanent Representative of the People’s Republic of China to the United Nations, Fu Cong also stated that the Government of Israel rejecting the two-state solution was worrying; and that Israel had a legal obligation to end the occupation of Palestine. A researcher on Chinese policy in the Middle East at the Eastern Mediterranean University in Northern Cyprus, Razan Shawamerah stated the Chinese government needed to engage more directly with the involved parties, rather than the UN. According to Shawamerah, Beijing needed a strategic approach with proactive and direct diplomatic measures involving both Israel and Palestine; to facilitate a ceasefire and peace talks, as well as counterbalance US influence. Shawamerah also stated that China had avoided confrontation with Israel so far, preferring to adhere to international consensus and agreements. He stated this had allowed Beijing to maintain a relatively balanced diplomatic position, among all parties. ( Cyril Ip,  “China accuses the US of shielding Israel, blocking Gaza ceasefire efforts,” South China Morning Post, 18 September 2024)

China Reader Daily Wire | 18 September 2024, Wednesday | Vol.1 No. 175
CHINA & EUROPE
Chinese commerce minister states EV tariffs will hurt both China and Germany, reports Reuters
On 18 September, Reuters reported that the Minister of Commerce of the People’s Republic of China, Wang Wentao had stated that tariffs imposed by the European Union (EU) on electric vehicles (EVs) would hurt both China and Germany. Wang made the comments while holding talks with the Vice-Chancellor of Germany, Robert Habeck. According to a statement by the Ministry of Commerce of the People’s Republic of China, the commerce minister stated that he hoped to avoid an escalation in economic and trade friction between China and the EU; and hoped to solve line with World Trade Organization rules soon. Wang also stated that the hope was the Federal Government of Germany would proceed from its own interests, and push the European Commission and the Government of the People’s Republic of China to work together in the same direction. Meanwhile, Habeck stated that the German government welcomed Chinese auto and parts companies to invest in Europe, and would urge the European Commission to avoid a trade war and find solutions. The Chinese commerce ministry informed Wang had also met with the Head of the German Chancellery, Wolfgang Schmidt, and informed that the Chinese government had insisted on resolving the case through dialogue and consultation. Wang expressed disappointment that the EU had pushed ahead with plans to impose tariffs; and hoped the German government would urge the European Commission to work with China in resolving the issue. (  “EV tariffs will damage Germany, China, says Chinese commerce minister,” Reuters, 18 September 2024)

ENERGY & ENVIRONMENT
China’s Shanxi province leads the way in green energy transition, reports CGTN
On 18 September, CGTN reported that China’s Shanxi province proves the nation’s commitment to renewable energy by transforming former coal mining areas into vast solar farms. An important photovoltaic base in Datong has generated over 12 billion kilowatt-hours of green energy since 2016. In China, as of 2023, it shared 63 per cent of the world’s new renewable energy capacity. As of July 2024, installed capacity has topped 1.68 billion kilowatts. The province continues to find creative ways to make use of its coal industry, such as using coke oven gas to produce hydrogen for local hydrogenation. The smart mining technologies in the province have reduced the energy consumption per unit of GDP by 10.9 per cent since 2021. The National Energy Administration’s Lu Junling reveals that through its exports of renewable energy, China impacts the world as it has reduced carbon emissions in other countries by 810 million tons. This puts China as a source to boost the adoption of renewables and cooperation in green technology, powerful and robust. (“China's major coal producing province inspires global energy transition,” CGTN, 18 September 2024)

CHINA & THE MIDDLE EAST
China at the UN requests Israel to end its presence in Palestine, reports CGTN
On 18 September, CGTN reported that the Permanent Representative of the People’s Republic of China to the United Nations, Fu Cong had urged the Government of Israel to end its unlawful presence in the Palestinian territories. At the UN General Assembly special session on Palestine, Fu stated that ending the occupation of Palestine was not an option, but a legal obligation for Israel. Fu also referred to the advisory opinion of the International Court of Justice (ICJ) which had concluded Israel’s presence in the occupied Palestinian territories was a violation of international law, and Israel was obligated to end its unlawful presence in the occupied Palestinian territories. According to Fu, the ICJ’s advisory opinion pinpointed the crux of the Palestinian issue. He also stated that ending the Israeli occupation was essential for addressing historical injustices, and only the creation of an independent Palestine could bring about peace. The ambassador also stated the Palestinian population had been unable to realize self-determination due to the occupation; and emphasized that the two-state solution was the only viable solution to the issue. Fu stated the international community needed to put pressure on the Israeli government to implement UN Security Council and UN General Assembly resolutions, as well as stop its military operations in Gaza and illegal settlement activities in the West Bank. Fu also informed that the Government of the People’s Republic of China would vote in favour of a draft resolution introduced by the State of Palestine, to implement the advisory opinion of the ICJ. (  “Chinese envoy urges Israel to end presence in Palestinian territory,” CGTN, 18 September 2024)

EXTERNAL
China reaffirms commitment to global nuclear energy cooperation, says Chinese Premier
On 16 September, Chinese Premier Li Qiang recently congratulated the IAEA on its 68th General Conference, highlighting nuclear energy as being a clean source of energy. Li explained China’s vision for a global nuclear security framework that is fair and mutually beneficial for all countries. On the occasion of 40 years of China’s membership in the IAEA, Beijing has always supported the work of the agency with full cooperation in development, nuclear safety, security, and non-proliferation efforts. Such cooperation has achieved fruitful results, and China will continue to make active contributions to global nuclear governance. Li said China would like to push forward cooperation with the IAEA and other member states to make global nuclear governance more equitable and rational. He also deemed it necessary for China to help make international cooperation in this field open and orderly while pursuing nuclear energy development. Such efforts indicate that China remains committed to promoting responsible use of nuclear energy worldwide. (“Chinese premier extends congratulations to 68th IAEA General Conference,” CGTN, 18 September 2024)
 
OUTER SPACE
Chinese scientists unveil groundbreaking insights from far side Lunar samples, reports SCMP
On 18 September, SCMP reported that Chinese researchers had investigated the very first samples of the far side of the moon ever studied. They came from the Chang’e-6 mission and proved some essential differences between the materials formed in what was known about the near side. The samples are characterised as “highly significant for scientific research”. Only on the far side, an unusual mixture of basalts and foreign ejecta was discovered. Basaltic volcanic rocks dominate the near side. Far-side samples contain more light-coloured particles and lower density, meaning a looser and more porous composition. Scientists interpret this material results from “mixing of mature lunar soil with freshly ejected materials” because it is close to impact craters. Importantly, the research emphasises the sampling importance on the far side of the moon. It claims “near-side samples alone. cannot fully capture the geologic diversity of the whole moon”. This research might revise our view on how the volcanism of the moon occurred and with what kind of impacts the moon had to endure. Astrophysicist Richard de Grijs said these findings contribute to: “a more holistic picture of how the inner solar system came to be.” (“What lies on the moon’s mysterious far side? China’s Chang’e-6 samples give first signs,” South China Morning Post, 18 September 2024)
 
SCIENCE & TECHNOLOGY
China calls for global nuclear cooperation on 40th IAEA anniversary, reports CGTN
On 18 September, CGTN reported that China has opened its nuclear research facilities to international scientists, and the country said this is an important step in global nuclear cooperation. The 12 nuclear research facilities from basic research to waste disposal sites are aimed at advancing nuclear technology across the world. The announcement came on the 40th anniversary of China’s membership in the International Atomic Energy Agency and was marked by a “Share for Development” meeting. China National Nuclear Corporation’s Yu Jianfeng emphasised an interest in cooperation with the IAEA and with international partners at a deeper level. IAEA Deputy Director General, Mikhail Chudakov has thanked the country for its achievement in nuclear power and opened the doors for efforts to open research facilities. At a reception honoring the anniversary, China's representative Li Song reaffirmed the commitment towards the mitigation of problems for the benefit of the Global South and nuclear energy for it. The meeting was closed by the unveiling of a bronze statue of Chinese nuclear physicist Qian Sanqiang at IAEA headquarters. (“China opens 12 nuclear research facilities to global scientists,” CGTN, 18 September 2024)

CHINA & SOUTHEAST ASIA
Malaysia’s king to visit China for an infrastructure investment
On 18 September, China’s Foreign Ministry stated that Malaysia’s newly installed 17th king, Sultan Ibrahim, is to make a four-day visit to China following an invitation from Chinese President Xi Jinping. The visit to China would come at a time when the government of Malaysia looks to resuscitate several connectivity projects, most of which connect to Singapore. As Sultan Ibrahim has shown interest in political matters even when the role would be ceremonial, he says he plans to revive the high-speed rail project between Malaysia and Singapore. This project is also part of China’s broader Pan-Asia Railway initiative, which Premier Li Qiang pledged to support during his visit to Kuala Lumpur. The rail line would be useful for Forest City, a mega-scale development undertaken by China at the expense of Malaysia, in which Johor Sultan Ibrahim has some shares. The visit of Premier Li Qiang to Malaysia seems to build further into these growing economic ties between both nations, with infrastructure development being at the top of their list of cooperation. (“Malaysia's sultan to visit China, eyes infrastructure support,” Reuters, 18 September 2024)
 
Tensions persist as Philippines withdraws ship from disputed South China Sea reef, an editorial in Global Times
On 18 September, an editorial in Global Times reported that the Philippines had pulled back its coast guard ship MRRV-9701 from Xianbin Jiao, or Xianbin Reef, in the South China Sea ending five months of standoff. However, Philippine Coast Guard spokesperson Jay Tarriela claims: “We have not lost anything. We did not abandon anything,” signalling continued tensions. The pullout was made shortly after bilateral talks between China and the Philippines, but it did not seek leave from China in advance. Chinese analysts believe it to be the Philippines’ attempt at saving its “face” while hinting at more robust retaliatory measures if actions persist. The Philippines will send more vessels to the waters, but this might fuel the situation. On the other side, the US has shown support for its partner, as Philippine Defense Secretary Gilbert Teodoro Jr said that the US will intervene if China tries to take away another Philippine ship near a nearby reef. This, according to Chinese experts, is a clear indication that the Philippines is not getting sufficient support from the US, which has been described as “lip service”. They encourage the Philippines to return to diplomatic channels to settle conflicts in the region. (“China to step up counteractions if Manila keeps provocation: expert,” Global Times, 18 September 2024)

CHINA & THE AMERICAS
US government investigates potential Chinese imports of Russian uranium, reports Reuters
On 18 September, Reuters reported that the US Government was probing whether the Government of the People’s Republic of China was importing enriched uranium from Russia. In December 2023, the US House of Representatives had banned the imports of Russian-enriched uranium. Data from the US International Trade Commission showed that shipments of enriched uranium from China to the US reached 242,990 kilograms in December 2023. The Chinese government has been exporting large amounts of uranium to the US, such as 123,894 kilograms in May 2024. However, there are concerns that China is importing Russian enriched uranium, and then exporting it to the US. According to data from the World Bank, Chinese imports of Russian enriched uranium increased in 2022 and 2023. The think tank Royal United Services had stated in a report in March that increased imports of Russian enriched uranium could help China carve out a role for itself in global enriched uranium markets. The US Trade Representative (USTR) has been urged by industry group the Uranium Producers of America (UPA) and enriched uranium capacity development company Centrus to increase tariffs on enriched uranium imports from China. A counsel for UPA, Jon Indall stated that Chinese imports circumventing the ban on Russian enriched uranium was a concern; and UPA had urged the US Department of Commerce to look into the matter. A spokesperson for the US Department of Energy informed that the Department was closely tracking imports from China to ensure they were not importing Russian uranium, as part of a scheme to export material. ( Timothy Gardner,  “US probes uranium imports from China to prevent circumventing Russian ban,” Reuters, 18 September 2024)
 
US officials to visit China to express concerns over the export boom, reports The Wall Street Journal
On 17 September, The Wall Street Journal reported that a group of senior US Government officials was traveling to China for meetings with the Government of the People’s Republic of China over the increasing level of Chinese exports. An official for the US Department of the Treasury informed that the Undersecretary of the US Treasury for International Affairs, Jay Shambaugh was leading the US officials who will hold discussions with their Chinese counterparts. Shambaugh stated that the US officials would raise their concerns over the Chinese government’s industrial policies, its policies of debt and financing towards developing countries, and macroeconomic policies, during the discussions. The Chinese government has sent excess manufacturing capacity overseas, amidst weak demand domestically. The policy is a part of the plan of the President of China, Xi Jinping to build an all-encompassing, industrial supply chain which reduces the Chinese reliance on foreign products; but increases the dependence of the rest of the world on China. The US Government, the European Union, and other countries around the world fear that the influx of cheap Chinese imports could overwhelm domestic industries, causing job losses and business closures. Several of China’s trading partners including the US have raised tariffs and other barriers to combat the threat from cheap Chinese goods. Additionally, economists within China have urged Beijing to shift its support from manufacturing to households to improve domestic consumption amidst a decline in productivity growth. However, the Chinese government has accelerated its industrial drive, focusing on sectors like renewable energy, artificial intelligence, and electric vehicles. This is seen as key to China’s efforts to outcompete the US. ( Lingling Wei, “U.S. Officials Jet to Beijing Amid Flood of Cheap Chinese Exports,” The Wall Street Journal, 17 September 2024)

China Reader Daily Wire | 17 September 2024, Tuesday | Vol.1 No. 174
DEFENCE
J-35: China tests new warplane
On 14 September, Global Times reported that the Chinese People’s Liberation Army (PLA) Navy had tested a new type of warplane on its aircraft carrier Liaoning. The national television broadcaster of China reported the test, China Central Television (CCTV). It is speculated that the new warplane could be the J-35, China’s next-generation carrier-borne stealth fighter jet. Experts stated that the CCTV report confirmed the Government of the People’s Republic of China had a new-type carrier-borne aircraft ready for service. The report also confirmed that the new warplane was operational on all three of China’s aircraft carriers. Additionally, photos released previously by Hong Kong news outlet wenweipo.com showed a full-scale model of a J-35 stealth fighter jet.  According to wenweipo.com, the J-35 is superior to its US counterpart of F-35. (Liu Xuanzun, “China’s new-type warplane tested on  aircraft carrier Liaoning,” Global Times, 14 September 2024)

CHINA & EUROPE
Germany urges EU members to vote against Chinese EV tariffs, reports SCMP
On 17 September, SCMP reported the Government of the People’s Republic of China and the Federal Government of Germany were trying to convince members of the European Union (EU) to oppose tariffs on Chinese Electric Vehicles (EVs). A vote on the tariffs is scheduled for 25 September. Germany is China’s largest trading partner in Europe, and the German car manufacturing industry has close links with the Chinese economy. The German car industry has opposed the tariffs, which the European Commission argues are required to combat Chinese exports benefitting from government subsidies. The German government has been contacting other European governments and trying to convince them to oppose tariffs. The German government’s efforts come amidst a visit to Europe by the Minister of Commerce of the People’s Republic of China, Wang Wentao. Wang is scheduled to meet the Federal Minister for Economic Affairs and Climate Action of Germany, Robert Habeck; as well as top car industry operatives from both Europe and China and the European Commissioner for Trade, Valdis Dombrovskis. Other European governments have opposed the tariffs as well ahead of the vote. The Prime Minister of Spain, Pedro Sanchez informed the Government of Spain would vote against the tariffs. However, success in stopping the tariffs could also hamper efforts by the President of the European Commission, Ursula von der Leyen to take an assertive stance in terms of trade against China. Noah Barkin, an analyst of EU-China relations at the Rhodium Group stated the tariffs being prevented could cause deep scars in terms of the EU’s leverage with China and its credibility with allies from the G7. According to Barkin, Franco-German ties might suffer too; due to the Government of France’s strong support for measures against China. ( Finbarr Bermingham,  “Germany lobbies fellow EU members to vote against tariffs on Chinese EVs,” South China Morning Post, 17 September 2024)

CHINA & THE AMERICAS
US charges Chinese aerospace giant employee with hacking charges, reports SCMP
On 17 September, SCMP reported that an employee from the Aviation Industry Corporation of China (AVIC), Song Wu had been charged with trying to hack into the US space agency NASA and the US military. The office of the US Attorney for the Northern District of Georgia, Ryan Buchanan stated that Song had tried to obtain computer software and source code from NASA, the US Army, US Air Force, the US Navy, and the Federal Aviation Administration. According to the statement, Song also tried to hack individuals working at major research universities in Georgia and five other states, alongside private aerospace companies. Song has been charged with 14 counts of wire fraud and 14 counts of aggravated identity theft.  AVIC, which employed Song has faced sanctions from the US Government in the past, over its ties to the Chinese People’s Liberation Army. (  “US charges employee of Chinese aerospace giant with hacking NASA, US military,” South China Morning Post, 17 September 2024)

INTERNAL
Hong Kong remains attractive for business, states op-ed in SCMP
On 17 September, an op-ed in SCMP stated the Hong Kong Special Administrative Region of the People’s Republic of China was still the best place to do business. The op-ed acknowledged Hong Kong faced problems such as a declining property market and high vacancy rates in the commercial sector. However, the op-ed points out Hong Kong has continued growing; with a Gross Domestic Product (GDP) year-on-year growth rate of 3.2 per cent and a population increase of 0.4 per cent. The op-ed argues that Hong Kong must attempt to attract global enterprises amidst the relocation of Western enterprises to Southeast Asia. While the op-ed states initiatives by the Government of Hong Kong to attract enterprises like the Hong Kong Investment Corporation are positive; it states the government needs a strong narrative to remain a preferred economic destination. According to the op-ed, the Hong Kong government must ensure a transparent legal environment for building trust amongst foreign businesses. The op-ed also states the Hong Kong government needs to ensure investors that controversial laws like Article 23 are required for national security, and will not hinder the business environment. The op-ed argues that the Hong Kong government needs to take advantage of its well-established financial infrastructure and proximity to mainland China; to offer opportunities to foreign businesses. It also states that governmental investments in technology and innovation have created a vibrant start-up ecosystem, and this can help Hong Kong become a global innovation hub. The op-ed concludes by stating that Hong Kong can continue to attract new businesses, retain local talent, and recruit foreign professionals; by following its spirit of “can do.” ( Christopher Tang,  “Despite setbacks, Hong Kong is still the best place to do business,” South China Morning Post, 17 September 2024)
 
ECONOMY
China International Fair for Trade in Services 2024 edition concludes, reports CGTN
On 16 September, CGTN reported that the 2024 edition of the China International Fair for Trade in Services (CIFTIS) had concluded with abundant results. According to the organizing committee of CIFTIS, the trade fair witnessed nearly 1000 outcomes including deals and investments completed across seven categories, mainly in the fields of construction, finance, and business services.  A key focus of the event this year was on smart and innovative service. Cutting-edge technologies in the field of artificial intelligence, metaverse, 6G, and cloud computing were showcased at the fair; and over 200 integrated innovative results related to digital, intelligent, and green services were unveiled. The Deputy Director of the Department of Trade in Services and Commercial Services at the Ministry of Commerce of the People’s Republic of China, Wang Bo stated CIFTIS played a crucial role in improving innovation and cooperation. He also informed the Government of the People’s Republic of China would use it to accelerate the high-quality development of service trade. The event saw 2,000 companies participate offline, and over 6,000 companies participate online. International presence among offline exhibitors was over 20 per cent, including more than 460 Fortune Global 500 companies. Additionally, a record number of 85 countries and international organizations set up exhibits and hosted events. The fair had nearly 242,000 visitors, an increase of 20 per cent from the previous year. (“2024 CIFTIS sees abundant results, highlights innovation in services trade,” CGTN, 16 September 2024)

ENERGY & ENVIRONMENT
Global green transition exceedingly dependent on China, states op-ed in The New York Times
On 16 September, an op-ed published in The New York Times argued there would be dire global consequences if the Government of the People’s Republic of China reduced its support for green industries.  The op-ed states that carbon emissions in China might be peaking already, in contrast to a rise in the rest of the world. It is pointed out how the Chinese government has been making large investments towards its green transition; and is far ahead of the rest of the world. The op-ed cites examples to support its assertion; such as China accounting for 263 out of the 425 gigawatts of new solar power installed in 2023 or nearly two-thirds of all big solar and wind plants being built globally being in China. According to the op-ed, the rest of the world including the US is much behind in its green transition in comparison to China.  It gives an example of how the G7 nations together managed barely one-quarter of the new green energy installations in 2023, as compared to China. The op-ed states that China is outpacing the world across sectors; and is helping power the green transitions of the rest of the world as well. Examples given are how roughly 90 per cent of the solar wafers and solar cells produced globally are Chinese, and the country accounts for 80 per cent of the global solar manufacturing market. The op-ed states that while five years ago, China was regarded as a climate villain lagging behind in emissions reduction; now the opposite is true. According to the op-ed, Beijing’s investments in green technology are a boost for its struggling economy, as well as a prospective path to help it dominate the global economy with clean energy becoming increasingly important. The op-ed states that despite being the largest emitter of carbon in the world, China has successfully invested in green energy technologies at a rapid pace. The op-ed argues that the gap between China and the rest of the world means that the global green transition is being led by Beijing; despite attempts by other countries like the US to engage in green tech trade wars. However,, the op-ed also warns of a potential drawback to the imbalance in green technology investments. The op-ed concludes by stating that China is leading the green technology industry, and the global push towards decarbonization would be slowed down if it reduced its investments. ( David Wallace-Wells, “What Happens if China Stops Trying to Save the World?,” The New York Times, 16 September 2024)
 
CHINA & SOUTH ASIA
India considers joining Russia and China in building Moon nuclear plant, reports RFI
On 14 September, RFI reported that the Government of India was considering joining the Government of the People’s Republic of China and the Government of the Russian Federation in constructing an atomic power plant for a human base on the Moon. The Chief Executive Officer (CEO) of the Russian atomic energy corporation Rosatom, Alexey Likhachev stated India and China had shown interest in collaborating on the project. According to Rosatom, the nuclear plant will be built with little human involvement and plans to have an energy capacity of up to half a megawatt. There are also plans to deploy the reactor around 2036. The proposed power plant will be integrated into a wider Chinese-Russian project to set up the International Lunar Research Station(ILRS), either on lunar soil or in lunar orbit. ILRS is planned to be a centre for scientific research open to all countries. However, it would require a stable power supply, which only a nuclear reactor can provide. While the Indian government has not commented on the proposed collaboration, a partnership between the Indian and Chinese governments would be surprising owing to border disputes between the two countries. However, analysts state India is seeking out potential opportunities to accelerate its space ambitions. ( Pratap Chakravarty,  “India considers joining Russia, China to build a nuclear plant on Moon,” RFI, 14 September 2024)
 
CHINA & CENTRAL ASIA
Kazakhstan’s leader urges Germany to support Chinese peace plan for Ukraine, reports Reuters
On 16 September, Reuters reported that the President of Kazakhstan, Kassym-Jomart Tokayev had requested the Chancellor of Germany, Olaf Scholz to support the Chinese peace plan for Ukraine. Tokayev stated that Russia could not be defeated on the battlefield, and a further escalation of the conflict would have irreparable consequences for humanity. The Kazakh President urged Scholz to support the peace plan by the Government of the People’s Republic of China. However, Scholz rejected the idea; stating that the Federal Government of Germany would continue to support Ukraine because Russia had invaded it. Scholz admitted that opportunities to open up peaceful development in the war needed to be looked into. However, he also stated that the Government of the Russian Federation was responsible for starting and continuing the war, and could contribute towards ending the war by stopping its aggression. (  “Kazakh leader urges Scholz to support China’s peace plan for Ukraine,” Reuters, 16 September 2024)
 
CHINA & EUROPE
UK trade committee demands greater scrutiny of Shein IPO, reports The Guardian
On 16 September, The Guardian reported that the Chair of the Business and Trade Select Committee, Liam Byrne had stated that Chinese fast-fashion retailer Shein needed to be scrutinized more. Byrne informed that it was essential the UK Government find out whether Shein had links to forced labour in the Xinjiang province of China. The Government of the People’s Republic of China has faced accusations of subjecting members of the Uyghur Muslim community in China to forced labour. Byrne stated that he would want a British version of the Uyghur Forced Labour Prevention Act passed in the US, which bans US companies from using cotton produced in Xinjiang. Shein stated that it had a “zero tolerance” policy towards forced labour, amidst plans by the retailer to list on the London Stock Exchange at a valuation of GBP 50 billion. However, two cases of child labour and factories failing to pay the minimum wage were found in the Shein supply chain last year.  In case, a law requiring greater transparency requirements for the Shein supply chain is passed; a listing on the London stock exchange for the company would be difficult. Human rights organizations have also demanded the company be prevented from listing, over allegedly using forced labour. ( Jasper Jolly,  “Planned Shein IPO needs closer scrutiny, says former Labour minister,” The Guardian, 16 September 2024)
 
CHINA & THE AMERICAS
China requests US to urge Israel to end Gaza operations, reports CGTN
On 17 September, CGTN reported that the Government of the People’s Republic of China had urged the US Government to push Israel towards ending its Gaza military operations. The Deputy Permanent Representative of China to the United Nations, Geng Shuang stated that the US needed to use the influence it had over the Government of Israel to push the latter towards stopping its military operations in Gaza.  According to Geng, a ceasefire could have been agreed in Gaza long back if the US had not stood in the way. Geng stated that multiple resolutions of the Security Council had been rejected and defied, because of the US supporting one side. Geng also informed that the Chinese government strongly condemned attacks on humanitarian agencies and personnel. The diplomat also noted that the humanitarian situation in Gaza was constantly worsening, despite the efforts of humanitarian agencies and international organizations. Geng stated that the Chinese government renewed its call for the Israeli government to fulfill its obligations under international humanitarian law by putting lives and humanity first.  Geng also stated that Israel needed to lift the blockade in Gaza and cooperate with humanitarian agencies; by ensuring them safe access and preventing restrictions and attacks on them. Geng also informed that Beijing supported UN Security Council efforts to stop the war and bring peace. ( “China urges U.S. to push Israel to cease military operations in Gaza,” CGTN, 17 September 2024)

China’s chip-making industry grows amidst US sanctions, says an editorial in Business Standard
On 16 September, an editorial in Business Standard titled “China claims chipmaking gear advance despite tightening US curbs: Report,” looked at how China made a breakthrough in developing domestic chip-making equipment, by overpowering US sanctions designed to prevent China’s semiconductor business. MIT suggested that domestic rivals have started to develop more sophisticated machines, though SMEE and its peers have a long way to go. Chinese semiconductor producers seldom provide ideas about their chip-making technology, which is identified by Beijing as strategically critical to national security. Additionally, SMEE could develop a lithography machine to produce 28nm chips, but It’s unclear whether the machine has started its production. Furthermore, the Biden administration has applied export controls on China and has forced the Netherlands to stern restrictions on ASML’s China business, but China relies on ASML’s ultraviolet lithography systems for its chip-making production technology. (“China claims chipmaking gear advance despite tightening US curbs: Report,” Business Standard, 17 September 2024)
 
US State Departments pushes for releasing American citizens detained by China, reports Reuters
On 17 September, Reuters reported on America’s efforts to release US citizens held by China after the release of American Pastor David Lin. State Department spokesperson Matthew Miller said: “We welcome David Lin's release from prison in the People's Republic of China," he said. He has returned to the United States and reunited with his family for the first time in nearly 20 years. It's something that we've been working on for some time, we’ll continue to push for the release of other Americans.” However, the Chinese embassy refused to comment anything when asked if China received anything on Lin’s return. The call for release came after the US Secretary of State Antony Blinken met China's top diplomat Wang Yi in Laos. (“US says worked on the release of US pastor from China for some time, seeking others,” Reuters, 17 September 2024)

China Reader Daily Wire | 16 September 2024, Monday | Vol.1 No. 173
INTERNAL
Shanghai braces as Typhoon Bebinca makes historic landfall
On 16 September, Typhoon Bebinca brought on a rare and fierce weather experience when it landed in Shanghai. The storm possessed wind speeds of 151 kph, making it the strongest since it struck the metropolis straight since Typhoon Gloria happened in 1949. This category one storm was rare to reach the financial hub of 25 million residents as intense typhoons generally hit the more southern parts of China. Transportation has suffered immensely, with hundreds of flights cancelled and railway services suspended. Even the Shanghai Disney Resort closed its entrance. The time of the middle autumn celebrations, the three-day public holiday in China has also been marked by disruptions. However, Category 4 Typhoon Yagi, which hit the Hainan province last week, is more severe in its severity than Bebinca. A testament to Bebinca’s unpredictability is the heavy weather conditions that the country has experienced, and different typhoons have devastated other parts of the Philippines as well. (Casey Hall and Ryan Woo, “Typhoon Bebinca lands in Shanghai, the strongest storm to hit the city since 1949,” Reuters, 16 September 2024)

EXTERNAL
Pope Francis expresses optimism for Vatican-China relations at his Asia tour
On 14 September, Pope Francis, in a recent press conference following his Asian tour, expressed optimism regarding China-Vatican relations. The pope even referred to China as “a promise and a hope for the Catholic Church” and expressed his intention to visit China, where he would praise its “millennial culture” and its capacity for dialogue. These comments came as the Vatican was closing in on the final round of its negotiations with China on the renewal of a 2018 agreement on bishop nominations, an issue long left unaddressed in their complicated relationship. Rather than expressing regret over the weakness of the deal, Francis held out hope for the talks ongoing now. The bottom line is that it aims to bring together China’s estimated 12 million Catholics, who have been divided between the officially recognized and underground churches for decades. However, the conciliatory policy pursued by the Holy See has been not well received mainly from US conservatives, who accuse it of sacrificing the interests of the faithful. Francis’s statement reflects that the Vatican continues pursuing its relations with China for improvement but under increasing restrictions on religions. (Nicole Winfield, “Pope makes a new overture to China, calling Beijing ‘a promise and hope’ for the church,” AP News, 14 September 2024)

China intensifies security measures in Tibet ahead of National Day, reports SCMP
On 16 September, SCMP reported that China’s Head of national security, Chen Wenqing recently made a four-day tour of Tibetan regions, calling for vigilance to be increased to prevent independence activities. Chen calls for a strict crackdown on “separatist and destructive activities” as the country approaches the 75th anniversary of the People’s Republic while managing religious affairs. This visit, which includes stops in Tibet and the Sichuan Ganzi Tibetan autonomous prefecture, follows meetings between American officials and the Dalai Lama in New York. Chen’s orders encompass Tibetan autonomous prefectures in several provinces beyond the Tibetan region. Meanwhile, the country’s highest judges have also joined the chorus. Supreme Court Chief Zhang Jun has urged hard punishment for “violent terrorism” and “ethnic separatism”. The Chief of the Supreme People's Procuratorate Ying Yong has also reiterated that justice should be served to weaken activities that jeopardise the country’s security. (William Zheng, “China’s security chief calls for ‘resolute crackdown’ on separatists in Tibetan areas,” South China Morning Post, 16 September 2024)
 
CHINA & SOUTHEAST ASIA
China calls for de-escalation in South China Sea dispute with Philippines
On 15 September, after a Philippine Coast Guard vessel withdrew from Xianbin Jiao, a China Coast Guard spokesperson Liu Dejun urged the Philippines to end tensions in the South China Sea. Liu emphasised China’s “indisputable sovereignty” over the area, including Xianbin Jiao and adjacent waters. He criticised the Philippine vessel’s five-month presence as a violation of regional agreements and a threat to stability. Liu reiterated China’s firm commitment to defend its rights over waters under its jurisdiction and stated that the Coast Guard will continue performing all its activities there. The spokesperson encouraged the Philippines to observe the Declaration on the Conduct of Parties in the South China Sea and stressed that the only way to maintain peace in the area was through working together. (“China urges Philippines to stop hyping up situation after Philippine vessel leaves Xianbin Jiao,” CGTN, 15 September 2024)

CHINA & SOUTH ASIA
Pakistani envoy states terror attacks do not affect China partnership, reports SCMP
On 15 September, SCMP reported that the Ambassador of the Islamic Republic of Pakistan to China, Khalil Hashmi had stated Pakistan and China would remain strong partners with growing economic cooperation. Hashmi stated that the Pakistan-China friendship had weathered several challenges and changes in the regional or international environment; and was on an upward trajectory despite geopolitical tensions. The ambassador also informed the Government of Pakistan had been successful in countering terrorism; and denied the Government of the People’s Republic of China had stopped investing in Pakistan because of security concerns. He also informed the Pakistani government would pursue “government to business” models over “government to government” collaboration; to attract high-end and innovative Chinese industries. According to Hashmi, the vast, young, and well-educated labour pool of Pakistan was an attractive proposition for Chinese investment. The Pakistani government has been an active participant in the Belt and Road Initiative(BRI) initiated by the Chinese government; with several infrastructure projects announced such as the China-Pakistan Economic Corridor(CPEC) which has seen over USD 65 billion in Chinese investment. However, a deteriorating security situation in the provinces of Balochistan and Khyber Pakhtunkhwa with Chinese infrastructure projects targeted, has put a shadow over the plans. ( Zhao Ziwen, “Pakistan envoys Says China belt and Road Links Growing Despite Terror Attacks on projects,” South China Morning Post, 15 September 2024)
 
CHINA & THE PACIFIC
Chinese economic downturn to hamper Australian growth, states op-ed in The Guardian
On 14 September, an op-ed in The Guardian stated the economic decline of China would have an impact on Australia. The op-ed points out how the Chinese economy has been facing signs of deflation; such as the longest stretch of falling prices since 1999; and cheaper Chinese products will be viewed unfavourably by trade-exposed factories in nations like Australia. Another point mentioned in the op-ed is the over-reliance on construction by the Government of the People’s Republic of China. According to the op-ed, the business model of selling land to developers will be difficult to replace. The op-ed cites an economist for the ANZ Banking Group, Xing Zhaopeng who stated mortgage repayment was the biggest issue for consumption. It is also mentioned how Zhaopeng informed consumers have been opting to repay debt early despite interest rate cuts by the People’s Bank of China. According to the op-ed, Australian firms hopeful of a rebound in demand might be disappointed unless consumption picks up. The op-ed also states how Xing informed that Chinese factories have been stockpiling commodities; which they are beginning to resell at very low prices. It is mentioned in the op-ed that prices of iron ore and oil which make up over half of the China commodity price index have been declining; with iron ore prices dropping to the lowest level in nearly two years. According to the op-ed, falling commodity prices pose a significant challenge to the Government of Australia.  The op-ed also mentions how with Australia’s Gross Domestic Product(GDP) growth already low, the Reserve Bank of Australia could cut interest rates soon. The op-ed concludes that this would mean the Chinese slowdown has gone global. ( Peter Hannam,  “What’s causing China’s economic downturn and what does it mean for Australia,” The Guardian, 14 September 2024)
 
CHINA & AFRICA
Nigeria aims to showcase its local service sector at the China International Fair for Trade in Services, reports Global Times
On 14 September, Global Times reported the Government of Nigeria was trying to connect with the Chinese business community at the China International Fair for Trade in Services (CIFTIS). A trade commissioner from the Nigeria Regional Investment and Trade Office (Asia), Ibrahim Akopari Ahmed stated Nigeria was participating in CIFTIS for the first time; and expected to showcase the Nigerian service sector to the world. Ahmed informed that the Nigerian service sector contributed over 50 per cent to the Gross Domestic Product (GDP) of Nigeria, such as the entertainment and film industry. He also stated that Nigeria was trying to showcase to the Chinese business community, that they could benefit each other mutually. Several Nigerian companies showcased musical instruments and telecommunication services at CIFTIS, showing the country’s growing presence in the tech sector. According to Ahmed, CIFTIS and the Forum on China-Africa Cooperation (FOCAC) would help enhance the trading relationship between the Nigerian government and the Government of the People’s Republic of China. (“Nigeria aims for greater exposure of its services sector to Chinese business community: trade official,” Global Times, 14 September 2024)
 
CHINA & EUROPE
China impacted by Dutch export controls, reports SCMP
On 16 September, SCMP reported that export controls on chip tool conglomerate ASML Holding were causing problems for factories in China. The Government of the Netherlands announced a change to its export controls, requiring ASML to apply for licenses to sell their 1970i and 1980i immersion deep ultraviolet machines to China-based customers. The 1980s is extremely common in Chinese semiconductor plants. Owing to its versatility. The new regulations also require ASML to apply for a license to service, as well as provide spare parts and software updates, for immersion lithography systems. ASML has been barred from exporting its most advanced EUV systems and immersion DUV systems without a Dutch license. According to ASML, the new rules would not have any impact on its financial outlook. An anonymous source familiar with ASML’s operations stated the Chinese chip industry could face a huge short-term impact from losing access to services.  The source informed making lithography machines from scratch would pose a significant challenge for China, alongside performing maintenance and finding spare parts. An editor at Dutch tech magazine Bits&Chips, Paul Van Gerven informed current licenses tied to blacklisted Chinese companies would no longer be renewed, and future license applications would be denied. ( Che Pan,  “China hit hard by new Dutch export controls on ASML chip-making equipment,” South China Morning Post, 16 September 2024)
 
Low-priced Chinese EVs make gains in Europe, reports SCMP
On 15 September, SCMP reported that Electric Vehicles (EVs) manufactured in China were rapidly expanding across Europe. Low prices are responsible for the expansion, with the number of EVs exported to the European Union (EU) surging in 2023, to nearly two and a half times the 2021 volume. EVs are offered in Spain at an average cost of EUR 28,000; 60 to 70 per cent of the price for Western brands like Tesla and BMW. Four of the ten bestselling EVs in Spain are now Chinese, including brands like MG and BYD. The expansion of Chinese EVs in the market has resulted in established Japanese, Korean, and European brands being pushed off the streets. According to a consultant working in the Spanish city of Barcelona, Andres; Chinese brands have enhanced the purchasing power of unemployed or working-class youth thanks to affordable phones and budget-friendly EVs.  However, the chief economist for Asia-Pacific at the French investment bank Natixis Alice Garcia-Herrero stated a lack of EV charging facilities was causing a shrinking demand for Chinese EVs in the EU. The temporary tariffs of nearly 38 per cent on Chinese EVs imposed by the EU have caused an impact; with Chinese EV manufacturers aggressively lowering prices to secure their share in the market. An analyst with the Mercator Institute for China Studies, Alexander Brown stated that Chinese firms can still export EVs to the EU despite the tariffs; and still be cheaper than local products. Brown also informed the EU’s decision was aimed towards addressing competitive imbalances, and the EU has a responsibility to protect local businesses from foreign competitors benefitting from subsidies. According to Brown, pressure from China could also bring down local costs and compel European players to innovate. (Mia Nulimaimati, “ China’s low-priced EVs reign in Spain, make gains in Europe’s lanes,” South China Morning Post, 15 September 2024)
 
CHINA & THE AMERICAS
China frees US pastor jailed on fraud charges, reports SCMP
On 16 September, SCMP reported the Government of the People’s Republic of China had released an American citizen and pastor, David Lin who had been imprisoned for nearly two decades. The US State Department confirmed the release of Lin; one of several Americans the US Government regards as unjustifiably detained in China. According to Lin’s daughter, he was handed a life sentence of contract fraud in 2009 for trying to open a Christian training centre. According to the human rights group Dui Hua Foundation, the charge of contract fraud is used frequently against house church leaders who raise funds to support their works. The organization also estimated that over 200 Americans are “under coercive measures” in China. Lin’s release comes amidst an attempt to mitigate tensions between the Government of the People’s Republic of China and the US Government; with the US National Security Advisor Jake Sullivan having met the Minister of Foreign Affairs of the People’s Republic of China Wang Yi. The release is also days before a scheduled hearing by the Congressional-Executive Commission on China, focused on detained US citizens in China. ( Bochen Han, “China frees American pastor David Lin who US claims was wrongfully jailed,” South China Morning Post, 16 September 2024)

TikTok in US Federal Court on possible app ban, reports AP news
On 16 September, AP news reported that the US government and TikTok would face each other in the federal court either banning TikTok or separating ties. TikTok has repeatedly stated that no US data was shared with the Chinese government however both attorneys argued in the court to penalize the platform used for any propaganda they perceived to be on TikTok. Parent companies like Byte Dance also appealed that the divestment would not be possible if the courts didn’t block the law. Additionally, the companies said: “Even if divestiture were feasible, TikTok in the United States would still be reduced to a shell of its former self, stripped of the innovative and expressive technology that tailors content to each user, the companies said in a legal brief filed in June. It would also become an island, preventing Americans from exchanging views with the global TikTok community.” During negotiations with the Biden administration, TikTok presented a ninety-page draft agreement allowing a third party to monitor its algorithm, content moderation practices, and other programming and TikTok said: “It has spent more than $2 billion to voluntarily implement some of these measures, which include storing U.S. user data on servers controlled by the tech giant Oracle. But it said a deal was not reached because government officials essentially walked away from the negotiating table in August 2022. (“ TikTok heads to court over US law that could lead to a ban on the popular platform,” AP news, 16 September 2024)

China Reader Daily Wire | 14 September 2024, Saturday | Vol.1 No. 172
INTERNAL
China raises the retirement age for the first time since the 1950s, reports BBC News
On 13 September, BBC News reported that the People’s Republic of China government would raise its retirement age for the first time since the 1950s. Proposals to raise the statutory retirement age from 50 to 55 for women in blue-collar jobs, and from 55 to 58 for females in white-collar jobs were approved by the top legislative body. Men will see an increase in the retirement age from 60 to 63. According to the plan, the change will set in from 01 January 2025, with the retirement ages raised every few months over the next 15 years. Employees would also have to contribute more to the social security system to receive their pensions from 2030.  By 2039, they would have to clock 20 years of contributions to access their pensions. The Chinese state-owned agency Xinhua stated the plan to raise retirement ages was based on an assessment of factors like average life expectancy, health conditions, and population structure. The measures come amidst a falling birth rate and an ageing population. (Kelly Ng, “China raises retirement age for first time since 1950s,” BBC News, 13 September 2024)

CHINA & EUROPE
German navy transits Taiwan Strait after 22 years, reports Taiwan News
On 13 September, Taiwan News reported vessels from the German Navy had transited through the Taiwan Strait after 22 years. The frigate Baden-Wurttemberg and supply ship Frankfurt am Main passed through the Taiwan Strait on 13 September. This was after the Federal Minister of Defence of Germany; Boris Pistorius had confirmed the vessels would pass through the Taiwan Strait while travelling from South Korea to Indonesia. Pistorius informed the ships had chosen the path since it was the safest and most direct route given climatic conditions. He also stated the passage was in full compliance with international law, and Germany had the right to transit international waters. Earlier, the Ministry of Foreign Affairs of the People’s Republic of China had warned the Federal Government of Germany, over provocative actions vis-à-vis Taiwan. (Duncan DeAeth, “German navy transits Taiwan Strait for first time in 22 years7,” Taiwan News, 13 September 2024)

CHINA & SOUTH ASIA
China-Maldives sign a MoU to settle current transactions and investments in local currencies, reports Reuters
On 13 September, Reuters reported the Government of the People’s Republic of China had agreed to strengthen trade and investment with Maldives. The People’s Bank of China and the Maldivian Ministry of Economic Development and Trade announced a Memorandum of Understanding (MoU) aimed at promoting the settlement of current account transactions and direct investments in local currencies, alongside facilitating smoother trade. The Ministry of Foreign Affairs of the People’s Republic of China stated Beijing would always provide support for the economic development of the Maldives. The MoU is another example of the Maldivian government moving away from its traditional ally India towards China. The MoU also resulted in the only international market bond of Maldives; the sharia-compliant sukuk bond seeing a sharp rebound. (  Joe Cash and Marc Jones, “China throws fresh support line to crisis-threatened Maldives,” Reuters, 13 September 2024)
 
China informs that its troops disengaged in four areas of contention with India, reports The Times of India
On 14 September, The Times of India reported the Government of the People’s Republic of China had stated China and the Government of India had realized disengagement in four areas in the western sector.  A spokesperson for the Ministry of Foreign Affairs of the People’s Republic of China Mao Ning stated the Minister of Foreign Affairs Wang Yi had met with the National Security Advisor of India Ajit Doval; and agreed to deliver on the common understandings reached. Ning also informed China and India had agreed to enhance mutual understanding and trust, and created conditions for improving bilateral ties. The official also stated the China-India border situation was generally stable, and under control. The Chinese government also hoped the two sides would handle their differences pragmatically, and push towards stable development. ( “Troops disengaged in 4 areas, including Galwan valley: China,” The Times of India, 14 September 2024)
 
CHINA & CENTRAL ASIA
Top Chinese legislator calls for more exchanges with Kyrgyzstan, reports People’s Daily Online
On 14 September, People Daily Online reported the Chairman of the Standing Committee of the National People’s Congress, Zhao Leji had held talks with the Speaker of the Parliament of Kyrgyzstan, Nurlanbek Shakiev.  Zhao stated that the Government of the People’s Republic of China was ready to work with the Government of Kyrgyzstan to deepen mutually beneficial cooperation and build a community with a shared future through shared prosperity. Zhao also informed that enhanced exchanges were essential to provide the legal guarantee for deepening pragmatic cooperation. Zhao stated cooperation needed to be enhanced, to jointly maintain the security and development interests of both countries. He also informed Beijing would always support Kyrgyzstan in protecting its national sovereignty and security.  Zhao also stated the two sides should look more into cooperation in traditional areas, promote scientific innovation achievement exchanges, and improve connectivity. Zhao also informed China was willing to strengthen exchanges of democratic experiences and communication between high-level members of legislatures. (Zhang Kaiwei and Liang Jun, “China’s top legislator calls for enhanced exchanges with Kyrgyz parliament,” People’s Daily Online, 14 September 2024)
 
CHINA & THE AMERICAS
US government maintains tariff hikes on Chinese imports, reports Reuters
On 14 September, Reuters reported the US Government had maintained steep tariff hikes on Chinese imports. The Office of the US Trade Representative (USTR) informed many of the tariffs such as a 100 per cent duty on Chinese electric vehicles (EVs), 50 per cent on solar cells and 25 per cent on steel, aluminium, EV batteries, and key minerals would take effect on 27 September. Additionally, a 50 per cent duty on Chinese semiconductors will start in 2025. The USTR also raised tariffs to 50 per cent on medical face mask and surgical glove imports. The duty on syringes will increase to 100 per cent, with a temporary exclusion for a year on temporary syringes used to feed infants. However, US port operators dependent on China for ship-to-share cranes were provided relief. Chinese port cranes ordered prior to the initial tariff announcement on 14 May will be excluded from the tariffs, as long as they are delivered by 14 May, 2026. The US government under the President of the US, Joe Biden has largely left in place most of the tariffs on China imposed by Biden’s predecessor, Donald Trump. The tariffs imposed by Trump on Chinese goods such as toys and internet routers worth over USD 300 billion remain in place. Automakers had requested lower tariffs on critical minerals used in EV battery production like graphite which rely upon Chinese supplies. The industry fears the tariffs will disrupt the supply chains. However, the USTR’s final decision did not heed these complaints. The President of the Information Technology Industries Council Jason Oxman responded to the announcement by stating the US was depending upon the ineffective tool of tariffs; and that it had failed to change the trade policies of the Government of the People’s Republic of China. The Director of the National Economic Council, Lael Brainard stated the tariffs were required to counter state-driven subsidies and technology transfer policies by the Chinese government. According to Brainard, Chinese EVs were using an unfair cost advantage to dominate the market. A spokesperson for the Embassy of the People’s Republic of China in the US stated the US tariffs would backfire, and showed the hegemonic nature of US power politics. The spokesperson also informed the Chinese government would take all the necessary measures to safeguard its interests. ( David Lawder, “US locks in steep China tariff hikes, some industries warn of disruptions,” Reuters, 14 September 2024)

China Reader Daily Wire | 13 September 2024, Friday | Vol.1 No. 171
EXTERNAL
11th Beijing Xiangshan Forum on “Promoting Peace for Shared Future”
On 12 September, the 11th Beijing Xiangshan Forum, China’s version of the Shangri-La Dialogue, kicked off with over 100 countries and international organisations participating. With the theme “Promoting Peace for a Shared Future,” over 500 representatives, including 30 defence ministers and military chiefs, have attended the event. Crucial topics to be discussed in the forum include the Global Security Initiative, China-US relations, and regional security issues. A former official with the US State Department John Richard Waters III said: “It is extremely rare to have this kind of different perspective.” Attila Demkó from Hungary emphasised China’s importance to global security. The event homed in on the Global South-lawrence Freeman was full of admiration for China’s development programmes. Lieutenant General He Lei reiterated China’s position on Taiwan and the tensions in the South China Sea. This is also a forum for the extension of its scope and record attendance, serving as a platform for both South-South and South-North cooperation on pressing international security challenges. (Liu Xuanzun, Wang Qi and Li Aixin, “Beijing Xiangshan Forum offers a platform to address global challenges,” Global Times, 12 September 2024)

CHINA & RUSSIA
Russia's President and Chinese Foreign Minister reaffirm strong China-Russia ties ahead of BRICS Summit
On 12 September, Chinese Foreign Minister Wang Yi in St Petersburg met with the Russian President Vladimir Putin and stressed that the relations between their countries confidently develop as a strong strategic partnership. Putin stated that he was looking forward to China’s participation in the coming BRICS summit in Kazan and how bilateral relations deepen with substantial bilateral benefit and equality. Wang conveyed the greetings from President Xi and said that China and Russia enjoy profound mutual trust and firm friendship. The two leaders stressed the importance of strengthening strategic coordination and opposing unilateral actions to meet the aspirations of Global South countries. Expanded BRICS cooperation was also discussed during the meeting, with Wang promising China’s support for the Russian chairmanship and the summit’s success. Putin praised the “Six-Point Consensus” issued by China and Brazil on Ukraine, stating that Russia is ready for negotiations toward peace. Putin commended China’s diplomatic policy, guided by “big, long-term perspectives and the common future of humanity”. Both sides emphasised their commitment to a multipolar world’s development and an international order of justice under international law to meet their shared aspiration for global governance. (“Russian President Putin meets with Wang Yi in St. Petersburg,” Global Times, 13 September 2024)

INTERNAL
Evergrande chairman detained amid ongoing property crisis
On 12 September, China’s Evergrande Group chairman, Hui Ka Yan, was moved to a special detention centre in Shenzhen. The once richest man in China has not been in public since his arrest one year ago. In March, he was fined USD 6.6 million and was banned for life from the securities market after a fraud case was discovered by regulators at Evergrande’s flagship unit. The company was ordered to liquidate in January and has been at the epicentre of China’s property sector crisis. Hui founded Evergrande in 1996 and transformed it into China’s largest property developer by contracted sales. However, in 2021 it defaulted on most of its USD 300 billion liabilities. Sources said that Hui was in “good shape” at the detention centre, which is well-equipped to provide medical care and proper food for its detainees. He reportedly wrote to executives for the resolution of the unpaid returns to investors in the wealth management product. The company is allegedly nearing completion of over 70 per cent of homes promised to buyers. (Clare Jim and Julie Zhu, “Exclusive: Evergrande Chairman kept in special Shenzhen detention center,” Reuters, 13 September 2024)
 
DEFENCE
China’s Defence Minister advocates for enhanced military cooperation at Xiangshan forum
On 13 September, China’s Defence Minister Dong Jun while attending the Xiangshan Forum of Beijing, a premier military diplomacy event of China called for strengthening military ties with the neighbouring countries. Dong stated that major powers should take the lead in ensuring global security and urged them to “abandon a zero-sum mentality and to stop bullying the small and the weak,” addressing delegates from 90 countries and international organisations. He emphasised that China is committed to deepening military relations with developing countries and promoting open cooperation. The forum, which had the theme “Promoting Peace for a Shared Future,” takes place in a period when the US and Chinese militaries are gradually de-escalating tensions. But there are still concerns over disputes in the South China Sea and Taiwan. The US was represented by Michael Chase, a senior defense official. Dong’s speech underlined China’s desire to position itself as a responsible global player as it navigates regional territorial disputes. The Minister stressed the primacy of equality in international relations, for every big country, there should be an equally loud voice on whatever other small country. (“Major countries must lead in safeguarding global security: China's minister,” Business Standard, 13 September 2024)
 
EXTERNAL
Independent prosecutor clears WADA of bias in Chinese swimmers’ case
On 12 September, an independent investigation fully cleared the World Anti-Doping Agency (WADA) of any vested interest for or against China in handling contamination cases of some Chinese swimmers in 2021. The appointed prosecutor, Eric Cottier, while presenting his final report to WADA’s Executive Committee, reiterated his previous findings that the Agency acted “autonomously, independently and professionally”. WADA President Witold Banka said the development of sophisticated detection technologies has acutely enhanced the possibility of detecting even minute traces of prohibited substances. Banka further noted the increasing tribunals’ cadre accepting contamination cases, including those that sounded implausible. The inquiry that began in April focused on the WADA decision not to appeal the Chinese cases. The finding by Cottier confirmed that the WADA decision was legitimate and not biased. The report recommended revisiting rules relating to group contamination since it is tricky handling trace-level contamination cases. (“Independent prosecutor reaffirms WADA not biased towards China,” CGTN, 13 September 2024)

China warns against foreign incursions in the South China Sea
On 12 September, Lieutenant-General He Lei’s address at the Xiangshan Forum in Beijing was China’s version of Singapore’s Shangri-La Dialogue. He issued a strict warning to those who want to interfere in the South China Sea. He said: “China will resolutely crush any foreign hostile encroachment” on its territorial claims. Over 500 delegates from over 90 countries have joined the forum, which will also discuss regional security concerns. RSIS fellow Dr Benjamin Ho of Singapore cited how China is open to direct bilateral negotiations but resists the involvement of outsiders. Tension between China and the US was one point of focus during this event as He called for better ties with the US while pressing its stance. It also confirmed the attendance of US Deputy Assistant Secretary of Defense Michael Chase and urged him to “listen more to the voices of China”. The forum comes amid the recent confrontations between Chinese and Philippine vessels over disputed waters. While Beijing and Manila have continued diplomatic exchanges, Dr Ho said substantial improvements in US-China relations would require more than brief conversations. It is expected to involve discussions between military representatives of different countries during its opening ceremony. (“China will 'crush' foreign encroachment on South China Sea: Military official,” Channel News Asia, 12 September 2024)
 
CHINA & SOUTH ASIA
Indian Foreign Minister claims 75 per cent progress in India-China border negotiations, reports The Indian Express
On 13 September, The India Express reported that Indian External Affairs Minister S Jaishankar claimed that remarkable progress has taken place over the military standoff with China along the Line of Actual Control in eastern Ladakh. According to Jaishankar, about 75 per cent of the “disengagement problems” have been “sorted out,” while he underlined “the increasing militarisation of the border” as a major concern. The standoff indeed has been going on for over four years, with around 50,000 to 60,000 troops deployed by both sides along the LAC. The recent round of diplomatic talks in Beijing was to “narrow down the differences” and find ways for an early resolution. Similarly, NSA Ajit Doval’s meeting with Wang Yi in Russia conveyed the imperatives required to complete disengagement in “remaining areas”. Jaishankar earlier termed the India-China relationship “complex”. Specific development in 2020 violated multiple agreements and underlined that peace at the border is essential for the normalization of bilateral ties. While some friction points have been resolved through buffer zones, challenges still exist. The BRICS summit, scheduled to take place in Russia, which both leaders are expected to attend, may provide further opportunity for dialogue on this key issue. (Shubhajit Roy, “Jaishankar: 75% of disengagement problems with China sorted out,” The Indian Express, 13 September 2024)

CHINA & MIDDLE EAST
Chinese Premier calls for enhanced UAE-China business cooperation at Dubai Forum
On 12 September, Chinese Premier Li Qiang, in a message at the UAE-China Business Forum in Dubai on his visit to the UAE, pointed out new opportunities in bilateral cooperation. During the message, Li emphasised three areas of priority in the development of high-quality Belt and Road initiatives, alignment of development strategies, and technological innovation. He encouraged businesses to be optimistic toward global partnership, deepen infrastructure cooperation, and further promote cutting-edge fields represented by AI and the digital economy. Marking the 40th anniversary of their diplomatic relations, Li pointed to the “profound necessity” behind their partnership, rooted in shared values and trade traditions. He underlined that the Asian commitment to peace and cooperation was so crucial in conditions of global turmoil. More than 200 government and business representatives attended the forum, where UAE participants praised the market potential of China. They showed interest in increasing investments under the Belt and Road framework of infrastructure, technology, and energy sectors for mutual benefits. Li welcomed UAE companies to invest in China, foreseeing continued economic growth between the nations. (“Chinese premier urges Chinese, UAE enterprises to seize cooperation opportunities,” CGTN, 13 September 2024)
 
CHINA & EUROPE
EU rejects Chinese EV makers’ price proposals amid ongoing anti-subsidy investigation
On 12 September, the European Commission rejected minimum import price proposals from Chinese electric vehicle makers to enter the EU-a widely seen bid to avoid possible tariffs. These proposals, referred to as price undertakings, were in response to the ongoing anti-subsidy investigation into Chinese-built EVs. According to one Commission spokesperson, these offers were simply turned down because they did not fulfil the requirements of eliminating subsidy effects and ensuring effective monitoring and enforcement. While refusing to elaborate, the Commission said it is open to a settlement that meets WTO norms and subsidy issues. The EU has reportedly made a case for slapping terminal duties as high as 35.3 per cent on Chinese-made EVs over and above the applied 10 per cent tariff on vehicle imports. It may do so by the end of October unless a qualified majority of EU members oppose it. The EU’s trade chief, Valdis Dombrovskis, could meet China’s Commerce Minister Wang Wentao next week as tensions are running high. (Philip Blenkinsop, “EU rejects minimum price offers from Chinese EV exporters,” Reuters, 12 September 2024)
 
CHINA & THE AMERICAS
US imposes sanctions on Chinese firms allegedly contributing to Pakistan’s missile program
On 12 September, The US State Department imposed sanctions against several Chinese companies and a research institution over their suspected material and assistance contribution to the Pakistan ballistic missile program. These are entities under sanctions for the alleged provision of goods and equipment needed to test rocket motors for the Shaheen-3 and Ababeel systems of Pakistan. The Beijing Research Institute of Automation for Machine Building Industry and three China-based firms are included in the list of those under sanctions. US Department of State spokesperson Matthew Miller reiterated US commitment to countering proliferation activities: “The United States will continue to act against proliferation and associated procurement activities of concern, wherever they occur.” In response, Chinese Embassy Spokesperson Liu Pengyu took to the criticism and said: “China firmly opposes unilateral sanctions and long-arm jurisdiction” without an international legal basis. Liu also vowed to protect the rights of Chinese companies and individuals affected by these sanctions. (“US imposes sanctions on Chinese suppliers to Pakistan’s ballistic missile program,” Reuters, 13 September 2024)

CHINA & EUROPE
Spanish PM Sanchez’s turnaround on China stance, not surprising, editorial in Global Times
On 13 September, an editorial in Global Times stated the “significant turnaround” by the Prime Minister of Spain, Pedro Sanchez vis-à-vis the issue of imposing tariffs on China was not surprising.  Sanchez had stated Europe “needs to reconsider” imposing tariffs, while on a visit to China. According to the editorial, Sanchez changed his position after the visit to China; wherein he gained an understanding of the development of Chinese companies and the country’s development philosophy. The editorial informs Sanchez had made the remarks on reconsidering tariff imposition after visiting the Kunshan Spain Mondragon Industrial Park in Jiangsu Province.  The editorial notes the on-field assessment left an impact on Sanchez, with the Spanish PM stating that European car manufacturers should learn from Chinese companies. According to the editorial, European political elites would not be surprised by Sanchez’s remarks, if they observed without bias China’s economic progress and commitment to open cooperation. The editorial states that China and the European Union (EU) must collaborate for mutual gains and win-win cooperation, in a changing global industrial landscape needing an energy transition. Another point mentioned is the EU must use planned technology competitiveness reforms to abandon the idea of development through protectionism. It is also noted how some analysts believe these visits indicate the EU does not want a trade war with China. According to the editorial, the proposed policy of imposing tariffs on China has encountered resistance within the EU, compelling the European Commission to revise duties or lower tariffs. The editorial uses this as an example to state that protectionist measures garner resistance both internally and externally, which makes them hard to sustain.  The editorial concludes in the hope that Europe views the development of China in a rational manner, and focuses on solving problems. A collaborative approach towards finding solutions for issues is encouraged. The editorial also states that the Chinese government has always tried to resolve trade disputes through dialogue and consultation. (“ Sanchez’s ‘significant turnaround’ is not surprising: Global Times editorial,” Global Times, 13 September 2024)

CHINA & THE AMERICAS
US House clears a package of bills to counter China and its influence, reports AP News
On 13 September, AP News reported the US House of Representatives had approved a package of bills for countering Chinese influence. One of the main areas covered in the bills was technology. The technology-related bills passed included outlawing devices from Chinese drone producer DJI on grounds of national security and preventing federal funding for five biotech companies with links to China; alongside an amendment to cut off remote Chinese access to advanced US technology. The House also passed bills for increased sanctions on China, such as the financial assets of Chinese officials being targeted in case of aggression towards Taiwan. The importance of closer ties with allies in the Asia-Pacific was recognized, with a resolution recognizing the importance of cooperation with Japan and South Korea. Another bill passed would direct the US Department of Justice to pursue individuals engaged in theft of trade secrets, economic espionage, and hacking, in order to prevent spying on US intellectual property and academic institutions by the Chinese government. The bill was an attempt to revive the China Initiative, a program started during the presidency of Donald Trump which was closed after accusations of racial and ethnic profiling. US House Representative for the Democratic Party from California, Judy Chu criticized the bill for being a “new McCarthyism”; which would investigate US researchers and scholars if they had any connections with China. Another bill passed would restrict federal funding for universities with cultural institutes funded by the Chinese government or programs linked to certain Chinese schools; despite fears academic programs like exchange students could be targeted. Representatives from the Democratic Party were critical of bills excluding Chinese electric cars from receiving clean-vehicle tax credits, and declaring land sales to citizens from China, North Korea, Russia, and Iran “reportable.”  The Embassy of the People’s Republic of China in the US responded by stating the bills would damage bilateral relations and US interests. (  Didi Tang and Elsie Chen, “US House clears a largely bipartisan package of bills to counter China,” AP News, 13 September 2024)

China Reader Daily Wire | 12 September 2024, Thursday | Vol.1 No. 170
EXTERNAL
Chinese Foreign Minister urges BRICS nations to aim for peace strategies, reports CGTN
On 12 September, CGTN reported that Chinese Foreign Minister Wang Yi urged members of the BRICS bloc to discuss areas for cooperation and seek sound strategies for peace. Wang made the remarks during the 14th Meeting of BRICS High-Ranking Officials Responsible for Security Matters/ National Security Advisors. Wang informed that it was important for the BRICS nations to discuss ways of cooperation and look for peace strategies; amidst global turbulence and transformation such as security threats, deficits in peace and security, and bullying against developing nations. According to the Foreign Minister, the active and stabilizing role played by BRICS in international affairs had become more prominent; with BRICS nations a constructive force in maintaining global peace, improving global governance, and promoting common development. Wang stated the BRICS mechanism had set a banner for South-South cooperation over the past 18 years, adhering to the principles of openness, inclusiveness and win-win cooperation. He also informed that the recent bloc expansion showed the vitality and appeal of the mechanism. The Foreign Minister urged for a clearer and more consistent BRICS message to be shown in the global governance system, through actions like building multilateralism, upholding principles of independence and solidarity, promoting political settlements and defending justice, and acting as implementers of peaceful co-existence. According to Wang, this would contribute towards the maximization of the strategic significance and political effects of the “greater BRICS.”  Wang also stated the BRICS mechanism needed to be fully utilized, for actions like enhancing strategic coordination and safeguarding interests. Other actions for which the BRICS mechanism needed to be utilized according to Wang; were taking the international system in a more equitable direction, and contributing towards maintaining global peace. Wang also informed that the Government of the People’s Republic of China would build a consensus and increase strategic communication with Russia, in its role as BRICS chair. (“Wang Yi calls on BRICS members to seek sound strategies for peace” CGTN, 12 September 2024)

CHINA & THE MIDDLE EAST
Chinese Premier invited by UAE’s Prime Minister to discuss replenished China-UAE relations
On 11 September CGTN reported on an official visit of Chinese Premier Li Qiang to the United Arab Emirates on UAE's Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum's invitation. On his arrival, Li said: “ties between China and the UAE have maintained strong growth momentum since the two countries established diplomatic relations 40 years ago, and their friendship has grown stronger and continues to flourish.” Additionally, he stated that the meeting in May had drawn a new plan for the China-UAE bilateral relationship. China-UAE relations have developed systematically, and quickly with practical cooperation in various fields like cultural exchanges which are increasingly attractive. Both countries have upheld close coordination on multilateral platforms in the contribution of peace and prosperity.  Furthermore, Li said “I look forward to having in-depth exchanges with UAE leaders and people committed to China-UAE friendship in various sectors to deepen and solidify China-UAE comprehensive strategic partnership.” (“Chinese premier lands in Abu Dhabi for visit,” CGTN, 12 September 2024)

CHINA & THE AMERICAS
First China-Latin American and Caribbean roundtable held, reports Global Times
On 11 September, Global Times reported that the First China- Latin American and Caribbean (LAC) States Roundtable on Human Rights was convened in Rio de Janeiro in Brazil.  The roundtable was co-hosted by the China Society for Human Rights Studies from Renmin University in China, and Fluminense Federal University from Brazil. It involved over 120 scholars, senior officials, experts, and representatives from think tanks and social organizations discussing paths toward achieving human rights. This was the first mechanism-based exchange and discussion on human rights between China and LAC. The Dean of the School of National Security and Research Fellow of the Human Rights Research Centre at Northwest University of Political Science and Law, Shu Hongshui stated that the Government of the People’s Republic of China had shown its commitment to a human rights development path; through its legal safeguards for counterterrorism efforts in Xinjiang.  According to Shu, the US and its allies had used the excuse of human rights and democracy to intervene in the internal affairs of other nations. Shu stated that revolutions instigated by the West had set back the development of human rights, and triggered humanitarian crises alongside deepening political strife. Shu also informed that the China-LAC cooperation showed promoting and protecting human rights required collective participation in a global effort; rather than there being a perfect model. The China Society for Human Rights Studies, the Chongyang Institute for Financial Studies at Renmin University, and the Faculty of Law at Fluminense Federal University released a joint report at the closing ceremony.  The report stated that China-LAC cooperation on human rights development was grounded in their existing collaboration across various sectors. The report also informed that China and the LAC had opposed human rights being used as a unilateral and hegemonic tool; and had advocated for a fairer, more equitable, and more inclusive approach towards the international human rights agenda alongside the impartial functioning of UN human rights organizations. Associate Professor of the National Base for Human Rights Education and Training at Fudan University, Zhu Xiaohui stated that the report showed how China-LAC cooperation can be a model vis-à-vis South-South cooperation for the Global South.  According to the Director of the China-Brazil Centre for Research and Business Ronnie Lins; China-LAC cooperation could contribute towards a more balanced and inclusive global order.  Lins also stated that it showed developing countries could create their path to progress, without depending on Western models. (Cao Siqi, “First China-LAC  roundtable on human rights held in Brazil, hailed as cooperation model for Global South,” Global Times, 11 September 2024)

INTERNAL
Chinese President Xi inspects cities in northwestern China, reports CGTN
On 12 September, CGTN reported that Chinese President Xi Jinping inspected northwestern China’s city of Baoji in Shaanxi Province and Tianshu City in Gansu Province. He visited the Baoji Bronze Ware Museum to learn about local efforts to improve the protection and utilization of cultural relics. During his museum visit, Xi stated it was important to develop a sense of reverence and affection for Chinese civilization. Xi also stated that China’s fine traditional culture needed to be passed on from generation to generation. The President also visited an ecological park along the Weihe River, to know about efforts for the ecological conservation of the Weihe River. While in Tianshu, Xi inspected the Fuxi Temple, a local apple production base, and the Maijishan Grottoes. The objective of his visit was to learn about the protection and preservation of local cultural heritage and the development of the modern specialty fruit industry in mountainous areas. (“Xi Jinping inspects cities in NW China’s Shaanxi and Gansu provinces,” CGTN, 11 September 2024)

EXTERNAL
Foreign automakers face uphill battle in China’s evolving EV market, reports VOA
On 11 September, VOA reported that most foreign manufacturers are finding it extremely challenging in the Chinese automotive landscape. What was once lucrative for international brands, the country has been marred by an explosion in domestic production of NEVs, which is fundamentally changing consumer tastes and the market environment. Recently, BMW reduced its forecast for the profit margin, partly due to weak demand from China. Data from Dunne Insights shows that since 2020, foreign automakers’ market share has sharply fallen, while Chinese brands have surged to 62 per cent from 43 per cent. GM’s sales have halved since 2017. Toyota and Honda are experiencing declining profits and declining sales forecasts. Ford Chief Executive Jim Farley said: “We've never seen competition like this before.” Attributed to government subsidies, in addition to shifting consumer behaviour, the proliferation of NEVs accounted for over half of all car buys this July. The Cato Institute’s Clark Packard noted that Chinese manufacturers, such as BYD, can make cars 25 per cent cheaper than global competitors in part because of subsidies. Sino Auto Insights’ Tu Le said: “Because of the significant decline in ICE demand and significant increase in NEV demand, the legacies are getting squeezed on both sides.” (Yang Ming, “Electric vehicle sales in China transform auto market,” VOA, 11 September 2024)

ECONOMY
China’s deflation dilemma and economic challenges, notes an editorial in Bloomberg
On 09 September, Bloomberg reported that the Chinese economy continues suffering from persistent deflation, which threatens to undermine its future growth prospects. According to recent data, consumer prices have been static for several years on end across most of the sectors except food items. The GDP deflator, which serves as a broad indicator of the overall prices in the economy, could continue falling well into 2025 and may turn out to be the longest period of deflation suffered by China since 1993. This has all the hallmarks of Japan’s “lost decades” of the 1990s, and some said immediate policy action was called for. Former central bank Governor Yi Gang underscored the desperation, saying: “Rooting out deflation has to take priority for policymakers.” The consequence spills over into falling wages, most especially in government-preferred sectors such as electric vehicle production. Consumer confidence has plunged to all-time lows, with most opting for saving over spending or investing in real estate. A sales engineer Jack Liu said: “The country doesn't admit there's deflation,” underlining how different official stances and public perceptions are. (“China’s Deflationary Spiral Is Now Entering Dangerous New Stage,” Bloomberg, 09 September 2024)

SCIENCE & TECHNOLOGY
China’s strategic shift in EV exports, reports Bloomberg
On 12 September, Bloomberg reported that Beijing is taking a prudent approach to the overseas expansion of Chinese carmakers, with “knock-down kits” exports to be assembled abroad, rather than overseas full-fledged production, being encouraged. In this way, leakage of EV industry know-how from China can be avoided, while companies like BYD and Chery enter foreign markets. A July meeting by the Ministry of Commerce seems to have set an investment cap for India and notification requirements for investments in Turkey. These instructions come when the Chinese EV makers plan to localise production to avoid tariffs and enter into newer markets due to the competition at home. Such a move might impede the globalisation process and send ripples of disappointment in the form of, among others, European nations anticipating the boost of local economies with factories from China. For instance, BYD’s possible Turkish plant could be classified under these instructions, as an investment expected to produce 150,000 cars per year and promise 5,000 jobs. Officials warned manufacturers against “blindly” following investment trends and added that many countries that invite Chinese automakers consider trade barriers against Chinese vehicles. The policy reflects Beijing’s delicate balance between supporting global expansion and safeguarding the competitive edge of its domestic EV industry. (“China Asks Its Carmakers to Keep Key EV Technology at Home,” Bloomberg, 12 September 2024) 

China’s commercial space sector advances with successful reusable rocket test
On 11 September, LandSpace, a private Chinese rocket company, took one important step further with the development of reusable rockets, conducting a 200-second test flight of its Zhuque-3 prototype. For the very first time, China demonstrated the technology of engine reignition in flight-a crucial one for recovering rockets. Accurate landing and joint guidance control are among the key technologies to be confirmed by this test. Project commander Dai Zheng called the suborbital test an important step toward frequent and economic space launches. Measuring 18.3 metres in length, the test rocket was powered by a single Tianque-12B and attained an altitude of 10,002 metres before landing within two meters of its target. One anonymous engineer countered that, although remarkable, China still lags far behind industry leaders like SpaceX, estimating “five years” for the development of a Falcon 9 equivalent and “20 years” for a Starship counterpart. The full-scale Zhuque-3 is targeted to make its maiden flight in 2025 and will be employed in the ambitious satellite constellation projects of China in hopes of revolutionizing the country's commercial space capability and positioning it globally. (Ling Xin, “LandSpace’s Zhuque-3 reusable rocket test a ‘breakthrough’ for China space race,” South China Morning Post, 12 September 2024)

MARITIME
China asserts sovereignty in South China Sea amid rising tensions
On 12 September, Chinese Lieutenant General He Lei warned foreign powers, especially the United States, over territorial disputes in the South China Sea at the Xiangshan Defence Forum. He underlined how China would “crush any foreign hostile encroachment” on its claimed sovereignty after recent confrontations with Philippine vessels and an international court ruling against Beijing’s expansive maritime claims. While speaking optimistically of a peaceful resolution, He Lei warned the United States not to meddle, as there were limits to China’s patience. China and the Philippines held “candid” talks to ease tensions after recent maritime confrontations and to discuss possible cooperation mechanisms. With over 500 representatives from over 90 countries in attendance, the forum is China’s answer to Singapore’s Shangri-La Dialogue. During discussions, He Lei confirmed that US Deputy Assistant Secretary of Defense Michael Chase was in attendance and invited him to “listen more to the voices of China”. (Ludovic EHRET, “China to 'crush' foreign encroachment in South China Sea: military official,” KTen, 12 September 2024)
 
CHINA & SOUTHEAST ASIA
China-Philippines dispute shifts from sea to air in the South China Sea, reports VOA
On 11 September, VOA reported that the dispute over the South China Sea is increasingly being felt between Beijing and Manila as the likelihood of conflict extends from maritime to aerial confrontations. Tensions mount as tensions rise ahead of the bilateral talks over recent Coast Guard collisions and resupply missions to disputed territories. According to former Philippine Navy analyst Vincent Kyle Parada, a possible shift from maritime to aerial resupply emissions increases risks as Beijing ramps up its aerial presence in the region. Chinese military expert Song Zhongping insisted that the disputed areas fell into China’s sovereign area, while the Philippines had filed 176 diplomatic protests against Chinese actions. A Taiwanese research fellow Su Tzu-yun warned that such aggressive interception tactics by China were “moving the definition of grey zone operations closer to the direction of war.” The Philippines stated that it will increase its defences with new fighter jets and missiles. The US has repeated its “ironclad” commitment to Philippine security in the face of China’s aggressive behaviour. Several nations are involved in the dispute that centres around waters critically rich in resources and vital to global shipping.  An international ruling in 2016 rejected China’s sweeping claims to the waters, but Beijing insists that the region belongs to China. (Peh Hong Lim, “China, Philippines to discuss South China Sea dispute amid clashes,” VOA, 11 September 2024)

CHINA & CENTRAL ASIA
China strengthens security ties with Central Asian nations to safeguard BRI interests
On 10 September, China took a big stride toward reinforcing its security cooperation with Central Asian countries through hosting the first Conference of the Global Public Security Cooperation Forum. The meeting, headed by China’s Minister of Public Security Wang Xiaohong, brought his counterparts from Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan together for discussing shared security concerns. Wang stressed the need to “establish a sense of a security community” and to go further on counterterrorism. The forum targets the security of major projects under the Belt and Road Initiative and works to combat transnational crime. A researcher at Tsinghua University Zoon Ahmed Khan, said the dialogue far exceeds previous agreements on countermeasures against what China has called the “three evils,” terrorism, separatism, and religious extremism. The security-centric agenda of the meeting was preceded by recent moves by China to increase its clout in the region. China signed an agreement with Kyrgyzstan and Uzbekistan recently, including one on a railway. (Cyril Ip, “Central Asia: China touts ‘universal security’ at forum to counter terrorism, crime,” South China Morning Post, 12 September 2024)

CHINA & SOUTH ASIA
India reconsiders Chinese investment stance to boost manufacturing ambitions, reports Reuters
On 11 September, Reuters reported that India has embarked on revisiting the hostile policies towards Chinese investment due to an ambitious aim to become a powerhouse in manufacturing. Relations with China have been ice-cold since a clash along the border in 2020, but New Delhi recognises the country needs Chinese know-how in crucial areas such as electric vehicles and semiconductors. The Modi government is considering the relaxation of investment rules now and may allow the investments by companies with as much as 10 per cent Chinese shareholding without seeking the approval of the government in order to attract global companies that may also have Chinese supply chain partners. A Yale University lecturer Sushant Singh said: “There is a realization that you cannot be part of any major supply chains. without being part of Chinese supply chains.” India has already relaxed visa restrictions for Chinese professionals, clearing almost 2,000 short-term visas in recent months. Meanwhile, the trade deficit with China has almost doubled to USD 85 billion since 2020, underscoring the economic interdependence. The Head of the Indian Cellular and Electronics Association Pankaj Mohindroo said: “We will be better off with some Chinese investment and technology flowing into our country without compromising national security concerns.” (Shivangi Acharya and Sarita Chaganti Singh, “India's bid to match China's factory heft gets a reality check,” Reuters, 11 September 2024)

CHINA & AFRICA
China-Egypt agrees to improve cooperation at the sidelines of BRICS meeting, reports CGTN
On 12 September, CGTN reported that the Government of the People’s Republic of China and the Government of Egypt had agreed to deepen cooperation. The Minister of Foreign Affairs of the People’s Republic of China, Wang Yi, and the Secretary-General of the Egyptian National Security Council Youssef Alaa El-Deen held a meeting during the Meeting of BRICS High-Ranking Officials Responsible for Security Matters. Wang noted that the leaders of China and Egypt had provided strategic guidance for bilateral ties. According to Wang, this had been a strong political guarantee for mutual trust and unity between the two nations. Wang, who is also the Director of the Office of the Central Foreign Affairs Commission informed the Chinese government was willing to implement the key agreements and deepen China-Egypt cooperation, towards building a shared community with a shared future. Wang informed that Beijing was ready to collaborate with Egypt and other BRICS partners for advancing greater BRICS cooperation and creating a platform for South-South cooperation; alongside safeguarding the interests of developing nations. The Foreign Minister also appreciated Egypt’s contribution to the success of the Forum on China-Africa Cooperation (FOCAC) Summit 2024 and stated China was willing to work with Egypt and other African nations to fulfill the FOCAC pledges and aid in African development. Wang also welcomed Egypt as a new BRICS member attending the security officials meeting for the first time. Meanwhile, El-Deen thanked China for its support; and informed Egypt would try to strengthen cooperation with China and its African partners. Both sides also expressed readiness to work towards political solutions to the Gaza and Ukraine wars. ( “China, Egypt agree to implement consensus, deepen cooperation,” CGTN, 12 September 2024)

Chinese envoy urges UN work towards conflict resolution in Sudan, reports CGTN
On 12 September CGTN reported on a Chinese envoy urging the UN Security Council to intensify efforts for a political solution between the fighting groups in Sudan. China's deputy permanent representative to the United Nations, Dai Bing said: “At this moment, the Council should channel more of its energies into pushing the parties towards dialogue and engagement in search of a political solution, while helping Sudan build up its humanitarian response capacity to stop the humanitarian crisis from worsening even further.” He further stated that Sudan hauled for more than one and half years with no signal for de-escalation and withdrawal of sanctions would not have a steady go, but rather flow into the battlefield settling down the ground situation. He further said: “This is what the international community wants and what this Council must do, and that's why China voted in favor of the draft resolution that was put to a vote a moment ago.” Additionally, he insisted the international community respect Sudan's sovereignty and territorial integrity by securing more assistance and cooperation from the Sudanese government. (“Chinese envoy urges more efforts to push for a political solution in Sudan,” CGTN, 12 September 2024)

CHINA & THE AMERICAS
China-Brazil agree to improve mutual political trust and strategic cooperation, reports CGTN
On 12 September, CGTN reported that the Minister of Foreign Affairs of the People’s Republic of China, Wang Yi had promised to work with the Government of the Federative Republic of Brazil towards strengthening mutual political trust and strategic cooperation. Wang held a meeting discussing China-Brazil ties with Special Advisor to the President of Brazil, Celso Amorim, on the sidelines of the Meeting of BRICS High-Ranking Officials Responsible for Security Matters. Wang stated that the Government of the People’s Republic of China was prepared to improve strategic collaboration and mutual political trust with Brazil. He also informed that China was ready to broaden mutually beneficial cooperation and elevate bilateral ties to new heights. Wang also stated that China and Brazil were stabilizing forces and major developing nations, who would continue to contribute towards global peace, stability, and development. Amorim informed that the Brazilian government was ready to work with China to promote the further development of bilateral ties; and prepare for the next stage of important high-level interactions between them.  The two sides also expressed their willingness to achieve greater outcomes from BRICS cooperation, through joining hands with BRICS partners for safeguarding common interests. ( “China, Brazil agree to strengthen political mutual trust,” CGTN, 12 September 2024)

US businesses outlooks towards China hits new low, reports AmCham Shanghai Annual Business Report
On 12 September, Reuters reported that the optimism of US businesses about their five-year outlook in China had fallen to a record low. The American Chamber of Commerce (AmCham) Shanghai Annual Business Report showed that only 47 per cent of US firms were optimistic about their outlook, the weakest ever level. The number of firms profitable in 2023 also hit a low, at 66 per cent.  306 US firms were polled, from a range of industries. The Chairman of AmCham Shanghai, Allan Gabor stated that domestic demand, deflation, and perceptions of members about geopolitics had contributed to the fall.  Gabor also informed the survey would have an impact on how business plans for China were developed in the future. 66 per cent of respondents stated that the US-China bilateral relationship was their biggest challenge, and 70 per cent thought that it was the biggest challenge to China’s economic growth. The percentage believing there was favouritism towards local companies increased to 60 per cent. 40 per cent of US firms are also looking to redirect investment towards Southeast Asia and India from China. The survey indicates how geopolitical tensions and trade disputes are negatively impacting US business perceptions of China. Additionally, data from the US State Department showed that US foreign direct investment into China fell 14 per cent to USD 163 billion in 2023. (Casey Hall, “US businesses’ optimism in China falls to record low, survey shows,” Reuters, 12 September 2024)

China Reader Daily Wire | 11 September 2024, Wednesday  | Vol.1 No. 169
CHINA & EUROPE
EU proposes lower tariffs on Chinese EV imports, reports SCMP
On 10 September, SCMP reported that tariffs by the European Union (EU) on imports of Electric Vehicles (EVs) from China would be lowered. The EU decided after consultations with companies likely to be affected by the tariffs. The proposed tariff rate on Tesla would be lowered to 7.8 per cent from 9 per cent; while SAIC and Geely would have their rates lowered to 35.3 per cent and 18.8 per cent respectively.  The duties would be applied in addition to the base rate of 10 per cent which the EU applies on all EV imports. The Government of the People’s Republic of China has been attempting to strike a deal with the EU regarding the tariffs, ahead of an EU vote on putting the tariffs into law. The Ministry of Commerce of the People’s Republic of China informed that the EU needed to show sincerity, and the Chinese government was ready to work closely with the EU for a solution in line with World Trade Organization (WTO) rules and the common interests of both sides. The Vice-Minister of Commerce for the Government of the People’s Republic of China Li Fei held talks with senior EU officials. A meeting is expected to take place between the Chinese Minister of Commerce Wang Wentao and the European Commissioner for Trade, Valdis Dombrovskis.  However, there remain questions over whether a deal between the EU and the Chinese government is plausible. The former Prime Minister of Italy, Mario Draghi stated that the EU would remain an accessible market for subsidized Chinese products; due to higher tariffs on Chinese products in other markets.  However, Draghi also informed that local jobs in the EU could be jeopardized if the EU market was kept open to Chinese-made EVs.  He informed that data from the European Central Bank had shown the domestic production of EVs would decline by 70 per cent if the Chinese EV industry followed the same model of subsidies used in the Chinese solar power industry.  The EU-China dispute has threatened to escalate into a larger trade war; with the EU accusing Beijing of using unfair subsidies for its EV industry. However, there are signs that both sides are keen to avoid a major trade war. ( Finbarr Bermingham, “ EU proposes lower tariffs on Chinese-made electric vehicles after input from car makers,” South China Morning Post, 10 September 2024)

INTERNAL
China to train foreign law enforcement to protect overseas interests, reports SCMP
On 101 September, the South China Morning Post reported that China is trying to expand its influence over international policing and security. During the Conference of Global Public Security Cooperation Forum in 2024 held in Lianyungang, the Public Security Minister, Wang Xiaohong, announced training for upwards of 3,000 foreign law enforcement officials over the coming year. The move aims at overcoming international security challenges and ensuring protection for Chinese interests abroad. More than 2,100 delegates from 122 countries and organisations participated in the conference, which was held to build a “global public security community” through cooperation. Wang showed China’s commitment to the promotion of a “more fair, reasonable and efficient” global public security governance system. The country will send police consultants abroad, carry out joint patrols, and deal with cross-border crime. These efforts have been part of China’s Global Security Initiative, which was raised by President Xi Jinping to expand the country's role in global governance. The initiative called for strategic dialogue among nations to promote confidence-building and manage differences. Several countries have shown interest in learning from the Chinese approach, such as Nicaragua. (Phoebe Zhang, “China to train 3,000 foreign law enforcement officers to protect overseas interests,” South China Morning Post, 10 September 2024)

Chinese legislature to discuss increasing the state retirement age
On 10 September, China's top legislature started deliberating on a draft decision to increase the statutory retirement age in phases. The move reflects the country’s response to the rapidly changing demographic landscape, in an attempt to address an aging population coupled with a low birth rate by following the relevant international practice. The reform comes as the Chinese average life expectancy has reached 78.6 years in 2023 from 57 years in 1957. It is up against a negative natural population growth rate with an increasing elderly dependency ratio that puts pressure on the labor supply and the pension system of the country. According to experts like Zhou Haiwang and Yuan Xin, this adjustment is necessary given China’s “new normal” demographic situation and modernisation requirements. The current system, established in the 1950s, prescribed a relatively low retirement age compared with that of OECD countries. There are widespread jitters over the possible pressure on the employment market, but experts assure due to gradual implementation, impacts could remain minimal. (Li Xuanmin and Wang Cong, “Top legislature reviews draft decision on gradually raising the retirement age,” Global Times, 11 September 2024)
 
MARITIME
PLA Navy’s Type 075 amphibious assault ship joins Shandong Carrier Group
On 09 September, an amphibious assault ship of the PLA Navy, Type 075 for the first time took part in a far sea exercise alongside the aircraft carrier Shandong. This was done according to an annual training plan in the South China Sea and West Pacific waters. The exercise was meant to elevate the combat readiness of the carrier group in distant waters through various scenario-based training. It also included support ships of Type 055 and Type 052D destroyers and a Type 901 replenishment ship. According to military experts, this constellation is essential for defending the sovereignty of China’s territory and maritime rights over Taiwan and the South China Sea. The integration of amphibious assault ships within carrier groups is at the forefront of adopting a systematic amphibious combat strategy. The approach, according to a Beijing-based military expert who requested anonymity, allows for safer landing operations under the cover of air and sea superiority from the carrier group. (Liu Xuanzun, “Amphibious assault ship joins Chinese aircraft carrier group in far seas exercise,” Global Times, 10 September 2024)
 
CHINA & AFRICA
China’s symbolic gesture on African debt relief, says an editorial in SCMP
On 10 September, the South China Morning Post reported that the recent Chinese announcement of the relief of debt for 33 African countries has revived debate on its significance in the overall African debt burden. Debt forgiveness of interest-free loans was regularised through the Forum on China-Africa Cooperation (FOCAC) and represents about 5 per cent of the total Chinese loans to Africa. A professor at Johns Hopkins University Deborah Brautigam said: “This is a symbolic gesture,” meaning these loans come as gifts. Most of China’s lending to Africa consists of policy bank lending for projects under the Belt and Road Initiative. It is these larger loans that are more likely to be extended or refinanced than to see a write-off of their principal. While China trumpets its role in debt relief, it is also calling for more active participation by multilateral institutions and commercial creditors. According to Jason Tuvey at Capital Economics, the danger is that these prolonged debt restructuring discussions block African countries’ access to development finance. (Jevans Nyabiage, “China writes off more interest-free loans to Africa but is the move just symbolic?,” South China Morning Post, 10 September 2024)

CHINA & THE MIDDLE EAST
Chinese premier begins visit to Saudi Arabia for Chinese-Saudi Joint Committee, reports CGTN
On 11 September, CGTN reported that the Premier of the People’s Republic of China, Li Qiang had begun a visit to Saudi Arabia. Li had arrived in the Saudi capital of Riyadh to chair the Fourth Meeting of the High-Level Chinese-Saudi Joint Committee. Li stated that he expected his visit to allow the Chinese government and the Government of Saudi Arabia to strengthen the alignment of their development strategies, and push bilateral ties to a higher level. Li also stated joint efforts by China and Saudi Arabia had allowed bilateral relations between them to achieve leapfrog development, and fruitful results in practical cooperation. Li informed the two countries have actively implemented the key outcomes of the China-Arab States and China-Gulf Cooperation Council summits held in 2022.  The Premier informed this had allowed political mutual trust to be strengthened, maintained close communication and coordination on regional and international affairs, and advanced exchanges and cooperation in various fields. The Premier also stated he would hold in-depth discussions with the Prime Minister of Saudi Arabia, Mohammed bin Salman al Saud, regarding bilateral relations and issues of common concern. He also informed that he hoped his visit would further expand mutually beneficial cooperation between China and Saudi Arabia. Li hoped his visit would deepen China-Saudi Arabia friendship, and foster greater progress in China-GCC and China-Arab relations. ( “Chinese premier starts Saudi Arabia visit to further boost cooperation,” CGTN, 11 September 2024)

CHINA & RUSSIA
China agrees to strengthen strategic cooperation with Russia, reports CGTN
On 11 September, CGTN reported that the Minister of Foreign Affairs for the People’s Republic of China, Wang Yi had stated that China was willing to strengthen strategic communication and enhance bilateral ties with Russia. Wang, who is also the Director of the Office of the Central Commission for Foreign Affairs made the remarks during a meeting with the Secretary of the Russian Federation Security Council Sergei Shoigu. According to Wang, relations between the Government of the People’s Republic of China and the Government of the Russian Federation have remained stable and healthy due to the guidance of the heads of state of both countries. Wang also stated that China was willing to strengthen strategic communication with Russia and utilize the China-Russia strategic security consultation mechanism. The Foreign Minister also affirmed that China supported Russia’s work as the rotating head of BRICS, and is ready to collaborate for improving mutual trust and cooperation amongst BRICS nations. Wang stated that this would be alongside shaping the BRICS mechanism into a channel for “Global South” powers to cooperate and have solidarity. Wang informed that China and Russia had maintained exchanges at all levels, and consolidated the political and social foundations of strong China-Russia relations. He informed that Beijing was committed towards gathering an international consensus, and was committed to increasing the voice of balance in the international community. Meanwhile, Shoigu expressed his commitment to cordial ties between China and Russia. He also stated that the Russian government supported China’s role as the rotating chair of the Shanghai Cooperation Organization (SCO).  ( “China, Russia agree to strengthen strategic consultation, cooperation,” CGTN, 11 September 2024)

CHINA & EUROPE
Spanish PM states trade war needs to be avoided between China and EU, reports Reuters
On 11 September, Reuters reported that the Prime Minister of Spain, Pedro Sanchez had stated that there does not need to be a trade war between the European Union and the Government of the People’s Republic of China.  During his visit to China, Sanchez informed that the two sides needed to agree to a compromise around planned tariffs.  Sanchez said, “We don’t need another war, in this case a trade war.”  According to the Prime Minister, the Spanish government would try to find a compromise between the Chinese government and the European Commission. He also informed that the Spanish government wanted to consolidate the growth of its trade relations and investment with China, with a focus on green and innovative industries. Sanchez stated that relations needed to be balanced, so that trade and geopolitical relations did not damage them. Sanchez’s remarks come amidst an anti-subsidy investigation by the European Commission into imports of Chinese Electric Vehicles. ( Casey Hall, “EU, China should build bridges, avoid a trade war , says Spanish prime minister,” Reuters, 11 September 2024)

CHINA & AMERICAS
Canada plans to impose more tariffs on Chinese products, reports SCMP
On 11 September, SCMP reported that the Government of Canada was likely to impose further tariffs on Chinese batteries, tech products, and critical minerals. The Deputy Prime Minister of Canada, Chrystia Freeland announced a 30-day consultation on Chinese imports to Canada of batteries and battery parts, semiconductors, critical minerals and metals, and solar products. The Office of the Deputy Prime Minister issued a statement later; alleging that the Government of the People’s Republic of China was following unfair competition which threatened Canadian workers and businesses. According to the statement, the consultation on the proposed tariffs would seek industry input on the application and timing of the tariffs.  The proposal for more tariffs comes after the Canadian government announced it would impose a tariff of 100 per cent on the imports of Chinese electric vehicles. The Canadian government also announced a surtax on steel and aluminum imports from China. In response, the Chinese government stated it would launch an anti-dumping probe into Canadian canola and chemical products. ( “Canada signals further tariffs on Chinese, batteries, tech and critical minerals,” South China Morning Post, 11 September 2024)

China Reader Daily Wire | 10 September 2024, Tuesday | Vol.1 No. 168
CHINA & EAST ASIA
China and Russia intensify military cooperation with "Northern/Interaction-2024" exercises
On 09 September, the Chinese Defence Ministry announced that China and Russia would hold joint naval and air exercises in the Sea of Japan and the Sea of Okhotsk for their strategic partnership. The “Northern/Interaction-2024” exercises are to deepen their combined response against security threats. On its part, the cooperation is to be expanded to joint patrols in the Pacific and an exercise named “Ocean-2024”. The announcement follows recent “Joint Sea-2024” drills in the South China Sea and underlines deepening military trust between the two nations. These exercises come against a backdrop of heightened geopolitical tensions, with Japan strengthening its defence ties with the US and other allies. Chinese Foreign Minister Wang Yi has warned that Sino-Japanese relations are at a “critical stage”. Japan’s Defence Minister Minoru Kihara cited recent joint exercises with European and Asian partners, illustrating deepening international involvement in the Indo-Pacific. (Phoebe Zhang, “Chinese, Russian navy, air forces to hold joint drills again in Sea of Japan,” South China Morning Post, 09 September 2024)

CHINA & THE AMERICAS
US and Chinese troops take part in Formosa exercises for the first time, reports SCMP
On 10 September, the South China Morning Post reported that troops from both the US Armed Forces and the Chinese People’s Liberation Army (PLA) were taking place in the Formosa exercises for the first time.  Operation Formosa is one of the largest military exercises in Latin America and involves different nations taking part in the exercises. A spokesperson for the Brazilian Armed Forces stated that  33 personnel from the PLA Navy and  54 from the US Navy were taking part in the exercises. The Brazilian Navy stated that inviting friendly nations for these exercises was customary, and was linked to the opportunity to promote greater integration between the Brazilian Navy and friendly nations. Since the Rim of the Pacific(Rimpec) exercise in 2016, the Chinese and US militaries have not held joint military exercises. The US Government has cited the Government of the People’s Republic of China’s military activities and violation of international norms as the reason. China’s involvement in Operation Formosa also shows its increasing military cooperation with the Government of the Federative Republic of Brazil. ( “US and Chinese troops taking place in joint ‘Formosa’ exercise in Brazil for first time,” South China Morning Post, 10 September 2024)

CHINA & THE AMERICAS
China starts anti-dumping probe into Canadian rapeseed imports, reports Reuters
On 10 September, Reuters reported that the Government of the People’s Republic of China had announced the beginning of a one-year investigation into rapeseed imports from Canada. The Ministry of Commerce of the People’s Republic of China stated that the inquiry would examine imports from 1 January to 31 December 2023. The Ministry also informed that preliminary data and information showed rapeseed dumping had taken place. According to the Ministry, there exists a casual relationship between the dumping of Canadian rapeseed imports and damage to domestic industry in China, following falling prices and significant rises in imports. The Ministry also stated that the inquiry would start effectively immediately, and should be completed before 9 September 2025; although special circumstances might compel it to be extended by 6 months. The probe comes just weeks ahead of 100 per cent tariffs imposed by the Government of Canada on Chinese-made electric vehicles and other products coming into effect. The Minister of Agriculture and Agri-Food in Canada, Lawrence MacAulay responded to the announcement by stating that Canada’s products met the highest standards. MacAulay also informed that the Canadian government followed rules-based trade and had strong inspection systems. He also stated that the Canadian government would always support the agriculture sector. Over half of Canada’s rapeseed exports are to China, making it a key market. (“China begins anti-dumping probe into Canadian rapeseed,” Reuters, 10 September 2024)

INTERNAL
China sees an increase in newborns across multiple regions in 2024, reports Global Times
On 09 September Global Times reported that recent data from various Chinese localities follows the promising trend in birth rates for the first half of 2024. Baoji of Shaanxi Province reported a 10.7 per cent increase, while Tianmen of Hubei reported an 11.3 per cent rise. Besides, Qingdao had a 5.93 per cent growth after two consecutive years of decline. According to Qingdao Health Commission’s Du Weiping, this is due to more women of childbearing age and increased childbearing willingness. The Dragon Year, which is believed to be auspicious for births, and supportive fertility policies also contribute to that. According to demographic expert He Yafu, this year's birth population will exceed last year’s 9.02 million but will not reach 10 million. He said this is under the influence of the impact brought by higher marriage registrations in 2023. However, the Shanghai Academy of Social Sciences’ Liang Zhongtang stresses that long-term reversal depends on population structure. While national data is pending, these local trends paint a picture of an improving birth rate in China, although it remains to be seen if it will be sustainable. (Du Qiongfang and Shen Sheng, “Multiple cities see increase in newborns,” Global Times, 09 September 2024)

ECONOMY
China’s export growth accelerates amid domestic economic challenges, reports AP News
On 10 September, AP News reported that exports from China accelerated 8.7 per cent year-on-year in August to USD 308.65 billion and extended the stretch of growth to five consecutive months. This increase was stronger than economists’ expectations, which expected an increase of 7 per cent as against July’s rise. Demand jumped because of reopenings around the world. The increase in imports was slower than expected at 0.5 per cent. The trade surplus widened to USD 91.02 billion from USD 84.65 billion in July.  Capital Economics projects Zichun Huang further export resilience based on China’s declining real effective exchange rate. Yet, resilience in exports has still to turn into robustness in domestic demand. The consumer price index inflation stayed steady at 0.6 per cent in August, but core CPI growth fell to 0.3 per cent, the lowest for three years. The contracting in manufacturing continued with the Purchasing Managers’ Index falling to 49.1. Chinese leaders have also been pouring money into manufacturing in hopes of invigorating the economy, which, since the pandemic, has grown more slowly than desired. ASEAN is China’s biggest trading partner, with exports to ASEAN, the US, and the EU expanding year-on-year. (“China’s August exports grow a robust 8.7%, beating forecasts while imports soften,” AP News, 10 September 2024)

SCIENCE & TECHNOLOGY
Huawei’s triple-folding smartphone garners massive pre-orders ahead of Apple’s iPhone launch
On 09 September, Huawei’s Z-shaped foldable Mate XT received over 3 million pre-orders before the official release. Chinese tech giant Huawei will reveal the device at a launch event on 10 September, just after the official launch of the Apple iPhone 16. This huge number of pre-orders shows that Huawei is still in a strong position in the market despite US sanctions. It accounted for 42 per cent of China’s foldable phone market share in Q2, per IDC. Huawei’s strategy will enable customers to get information about the purchase on the day it launches without making any purchases in advance. This launch came when Apple was ready to provide features related to AI in the new iPhone to heat smartphone competition. The timing and successful pre-orders have placed Huawei well to challenge Apple, which lately cut prices to retain market share in China. (“Huawei racks up 3 mln pre-orders for tri-fold phone before Apple's iPhone 16 reveal,” Reuters, 09 September 2024)

China’s reactive approach to global AI governance, says an opinion in East Asia Forum
On 10 September, an opinion piece in the East Asia Forum stated that the Shanghai Declaration and the Global AI Governance Initiative represent recent drives into global AI governance by China, but these are reactive to what has been emerging in the West. This reflects the marginal position of China within current governance structures, together with the unexpected impact of ChatGPT. The position of China is still towards UN-centered, inclusive governance, whereas all actual policies in the country seem to counter perceived Western dominance by making use of such partnerships as BRICS. That is the gap between rhetoric and reality China does not join any non-Chinese or non-UN-led initiatives. An illustrative case is its refusal to sign the agreement of the Seoul AI Safety Summit, creating a fragmentation within global AI governance. Though having ambitions to be the world’s primary AI innovation centre by 2030, from the perspective of governance, pragmatic engagement with the West would be required at multiple institutions. The involvement of various institutions is necessary for the successful governance of AI at the global level in various key aspects, as “gridlock” is already being faced by the UN in the process of addressing the pressing issues at hand. (Huw Roberts, “China’s ambitions for global AI governance,” East Asia Forum, 10 September 2024)

CHINA & EAST ASIA
China and Singapore strengthen ties amid regional complexities
On 09 September, Chinese Foreign Minister Wang Yi met with his Singaporean counterpart, Vivian Balakrishnan marking a significant step in their bilateral relationship. Wang sought strategic coordination between the two nations on various fronts, stating that they are the “stabilising forces” in a turbulent international landscape. The discussions focused on the “all-round, high-quality and future-oriented partnership” established by the leadership of the two countries last year. Balakrishnan said: “Our discussion underscored Singapore's commitment to strengthen ties with China further - particularly as we will celebrate the 35th anniversary of our country's establishment of diplomatic relations in 2025.” A dean at Hainan Tropical Ocean University Gu Xiaodsong said that the visit was important to convey the new foreign policy initiatives of the new Singaporean government. East China Normal University’s Chen Hong, further commented that the meeting helped in building consensus on regional issues. According to him, Singapore has balanced its relationship with China and the West through strategic autonomy. (Zhang Yuying, “Wang Yi meets Singapore FM, seeking to expand cooperation,” Global Times, 09 September 2024)

CHINA & SOUTHEAST ASIA
China urges Philippines to reconsider relations amid South China Sea tensions
On 09 September, a commentary published in the Communist Party newspaper, the People's Daily, urged the Philippines to “seriously consider the future” of the bilateral relationship, which it said had arrived “at a crossroads”. Tensions have risen in recent months in the South China Sea, where both countries have accused each other of ramming coast guard vessels. Commentary, under the pen name “Zhong Sheng,” stated that dialogue is the correct way ahead. It also cites that “there is no way out of the conflict through confrontation”. China claims nearly the entire South China Sea despite an international ruling in 2016 invalidating its sweeping claims. The disputed waters are important to USD 3 trillion in annual trade and have been a source of conflict with multiple Southeast Asian nations. The US has reassured Manila of its commitment to Philippine security. However, China called on Filipino troops to withdraw from the Second Thomas Shoal, which it referred to as an “illegally stranded ship”. (“China says ties with Philippines at a crossroads over South China Sea,” Reuters, 09 September 2024)

CHINA & EUROPE
Chinese and Spanish leaders hold a meeting to improve ties, reports CGTN
On 10 September, CGTN reported that the President of China, Xi Jinping had called on China and Spain to build long-term bilateral relations during a meeting with the Prime Minister of Spain, Pedro Sanchez.  During the meeting, Xi stated that the Government of the People’s Republic of China and the Government of the Kingdom of Spain must adhere to the original intention of establishing diplomatic ties based on mutual respect and equal treatment, as well as adding new dimensions to bilateral ties. The Chinese President informed that platforms like the Mixed Committee on Trade and Economic Cooperation and the China-Spain Joint Commission on Science and Technology Cooperation could be utilised to promote development in high-tech fields like artificial intelligence and digital economy for mutual benefits. Xi also informed that China and Spain had maintained close exchanges and interactions at all levels, and promoted high-quality cooperation in all areas since establishing diplomatic ties. He stated that China and Spain must uphold inclusiveness and mutual learning and improve cultural exchanges in areas such as language education, youth, culture, and tourism, alongside fostering people-to-people friendship. Xi informed that Beijing was ready to work with the European Union (EU) for guiding relations towards a stage of independence; wherein both sides helped each other succeed and benefit the rest of the world. Sanchez stated that Spain and China had signed cooperation agreements on areas like green development during his visit and stated that he hoped for improved cultural exchanges and cooperation in sectors like trade and new energy vehicles. The Spanish Prime Minister informed that his country viewed its relationship with Beijing from a strategic perspective, and was looking forward to deepening the Spain-China comprehensive strategic partnership. Additionally, Sanchez stated that Spain did not favour trade wars, and was in support of free trade and market openness. (  “President Xi Jinping meets Spanish PM Pedro Sanchez, calls for efforts to boost ties,” CGTN, 10 September 2024)

Chinese President Xi seeks greater green energy cooperation with Norway, reports Reuters
On 09 September, Reuters reported that the President of China, Xi Jinping had informed the Prime Minister of Norway, Jonas Gahr Stoere that China was willing to work with Norway for friendly cooperation including on green energy. The Chinese state broadcaster CCTV informed that Xi had emphasised environmental protection, energy transition, shipping, electric vehicles, and agricultural and fishery products as areas for greater cooperation between the Government of the People’s Republic of China and the Government of Norway. According to CCTV, Xi had informed Stoere that he hoped all parties in the Ukraine war would try to create conditions conducive to a resolution through dialogue. The Chinese President also informed that his country would continue to follow the path of peaceful development. On the other hand, Stoere stated that he had discussed climate and sustainable development policies; alongside business and human rights with Xi. ( “China’s Xi seeks ‘friendly’ cooperation with Norway on green energy,” Reuters, 09 September 2024)

CHINA & THE AMERICAS
Chinese and US military commanders hold a call to stabilise ties, reports Reuters
On 10 September, Reuters reported that the Government of the People’s Republic of China and the US Government had held theatre-level commander talks for the first time. The Commander of the US Indo-Pacific Command, Admiral  Sam Paparo held a video telephone call with the Commander of the Southern Theater Command of the Chinese People’s Liberation Army (PLA) Wu Yanan. The Ministry of Defence of the People’s Republic of China stated in a readout that both sides had  an “in-depth exchange of views on issues of common concern.”  The US Indo-Pacific Command, which counts the potential hotspots of Taiwan and the South China Sea amongst its areas of responsibility stated that the call had been “constructive” and “helpful.”  The Command also informed that Paparo had requested the PLA to reconsider its usage of coercive and potentially escalatory techniques in the South China Sea and beyond. Paparo also emphasised continuing talks to reduce miscalculation and clarify intent. The current talks come amidst attempts by Beijing and Washington to reach out to each other. Last month, the US National Security Advisor Jake Sullivan visited China; and US and Chinese troops are taking part in large-scale military exercises organised by the Brazilian Armed Forces. The US also plans to send a major official from the Department of Defence to a major security forum in China. ( “Top US, Chinese military brass hold first call to stabilize ties,” Reuters, 10 September 2024)

China Reader Daily Wire | 09 September 2024, Monday | Vol.1 No. 167
ECONOMY
China expands foreign investment in healthcare sector
On 08 September, China revealed its plan to open its healthcare sector to more foreign investment. This will allow wholly foreign-owned hospitals to shop in certain cities and regions. A circular from several key government bodies stated that wholly foreign-owned hospitals would be allowed in major urban areas including Beijing, Shanghai, and Guangzhou among others, and all over Hainan island. The document also outlines plans to allow foreign-invested enterprises to engage in stem cell and gene therapy research in specific free-trade zones. However, these enterprises must follow China’s rules on genetic resources, clinical trials, and ethical standards. It calls for local authorities to facilitate foreign enterprise engagement while keeping a tight rein to minimise potential risks. The move is a major liberalisation of China’s healthcare policy, which might attract foreign expertise and investment in the sector. It said the terms and process for setting up such hospitals will be announced later. (“China to allow wholly foreign-owned hospitals in certain areas,” CGTN, 09 September 2024)

China eliminates restrictions on foreign investors in the manufacturing sector
On 08 September, the removal of all restrictions on foreign investment in China’s manufacturing sector promises significant change in the country’s economic landscape. The National Development and Reform Commission and the Ministry of Commerce jointly issued a revised negative list about foreign investment access, which will take effect on 01 November 2024. In the revised negative list, the number of restricted areas has been cut to 29 from 31, fully opening the manufacturing sector to foreign investors. An NDRC official termed this move as marking an important step toward a more open economy. It said the commission would work in close coordination with other departments for the smooth implementation of the new measures. This indicates that China is committed to attracting global capital and expertise to its industrial sectors. (“China to lift foreign investment access restrictions in manufacturing sector,” CGTN, 09 September 2024)

China’s CIFIT becomes a global investment hub 
On 08 September, the 24th China International Fair for Investment and Trade opened in Xiamen reflecting China’s determination for global economic cooperation. The total exhibition areas this year reach 120,000 square metres, with participants from 119 countries and regions. Among them, a large part are countries participating in the Belt and Road Initiative. Digital economy, new energy, and green innovation have become the spotlights for CIFIT 2024, with more than 80 activities relating to investment. CIFIT, initiated in 1997 by the Ministry of Commerce, has emerged as an important international platform for investment and development. China underlined its role in fostering global economic ties and promoting sustainable growth strategies through the four-day fair. (“China holds international fair to boost investment, trade,” Xinhua, 08 September 2024)

CHINA & CENTRAL ASIA
China-Mongolia relations strengthen amid broader regional cooperation, reports Global Times
On 08 September, Global Times reported that a recent visit to Mongolia by Chinese Vice-President Han Zheng has signalled the importance of the bilateral relationship between the countries. During his three-day trip, he paid visit to leading Mongolian figures and emphasised cooperation on energy, infrastructure, and international affairs. The visit highlighted China’s encouragement of Mongolia’s tourism initiative and the need for the expansion of youth and media exchanges. Han called for accelerating the China-Mongolia-Russia Economic Corridor, for pushing trilateral cooperation. Mongolian Prime Minister Oyun-Erdene passed on the message of his willingness to advance bilateral relations based on mutual respect and common development. Experts see Mongolia’s strategic position as significant for regional integration in Northeast Asia, especially within the framework of the Economic Corridor project. Visits to Mongolia by both Chinese and Russian leaders have lately demonstrated how significant this country is for the region. According to analysts, such cooperation goes beyond traditional spheres, like energy and mining industries, and may involve climate change and green development initiatives. (Yang Sheng and Xu Keyue, “China, Mongolia vow to expand cooperation,” Global Times, 08 September 2024)

INTERNAL
China’s continuing defiance of global concerns over Uyghur human rights in Xinjiang, says an opinion in First Post 
On 06 September, an opinion piece in First Post stated that it has been two years since the Office of the United Nations High Commissioner for Human Rights (OHCHR) released a report on human rights violations in Xinjiang. However, China continues to resist international pressure against its treatment of Uyghurs. After several years of investigation, various organisations concluded that China has been carrying out “serious human rights violation” under the counterterrorism banner. These reports from several organisations documented the incarceration of over a million Uyghurs in detention camps. Beijing strongly denies the claims. China has undertaken an all-rounded propaganda campaign by publishing White Papers and taking foreign dignitaries on guided tours in the restive region, presenting it as stable and prosperous. The Chinese government has successfully used its economic and diplomatic influence to silence the critics and sway Islamic countries in their favour. Following their recent visits, Arab leaders and Pakistani journalists praised Chinese policies. The situation in the Xinjiang region remains impenetrable with tight surveillance and media control. Although the international community including the US is disappointed with China for not following the recommendations of OHCHR, the influence of Beijing on global opinion seems to be increasing. (Mahesh Ranjan Debata, “World merrily forgets Uyghur cause as China mobilises mega-propaganda machine,” First Post, 06 September 2024)

CHINA & SOUTHEAST ASIA
China strengthens naval ties with ASEAN countries, reports Global Times
On 08 September, Global Times reported that there have been all-out naval engagements between China and several ASEAN countries recently, marking regional cooperation amid tensions with the Philippines. Recently, China and Singapore finished Exercise Cooperation 2024, which incorporated combined maritime exercises off Guangdong Province. Meanwhile, Chinese warships stopped for a technical visit in Vietnam after the exercises in Africa, which offered professional exchanges. During the visit, an Indonesian Navy vessel arrived in Shanghai for a friendly visit to advance the navy relations. China will be donating two Type 056 corvettes to Cambodia by 2025. This indicates the growth of military relations. The various efforts range from joint exercises, and ship visits, to equipment transfers. Through these efforts, China has tried to maintain positive relations with its Southeast Asian neighbours. Analysts consider this engagement a constructive form of regional security cooperation to imply that peace and development remain the primary focus in the South China Sea amid recent tensions with the Philippines. (Liu Xuanzun, “China holds intensive naval interactions with ASEAN members,” Global Times, 08 September 2024)

CHINA & AFRICA
China pledges USD 50.7 billion to Africa in credit and investment, says an editorial in Reuters
On 07 September, an editorial in Reuters reported that at the recent Forum for China-Africa Cooperation (FOCAC), China pledged 360 billion yuan, or USD 50.7 billion, over three years to African development. However, the amount is below the funding levels of previous years and the debt relief sought by several African countries. The initiative aims at financing 30 infrastructure projects, to address Africa’s estimated USD 100 billion annual funding gap. China’s approach has changed toward “small and beautiful” projects from large-scale projects, because of the domestic economic pressures and increasing African debt risks. China’s push into clean energy and nuclear technology cooperation was also discussed at the summit. Although many analysts see this as the right move toward green development, there is continued scepticism over the terms of Chinese investments. The summit underlined the ongoing race between China and the Western powers for influence in Africa, with Tanzania’s President Samia Suluhu hailing China-Africa relations as “at their best in history.” ( Duncan Miriri and Laurie Chen, “China stops short of Africa debt relief as it pledges more cash,” Reuters, 07 September 2024)

CHINA & EUROPE
Chinese car manufacturer plans for production in the UK, reports BBC News
On 08 September, BBC News reported on Chinese car manufacturer Chery’s plans to begin production in the UK. The head of Chery’s UK division, Victor Zhang, stated that it was “just a matter of time” before the company set up manufacturing plants in the UK. Chery has set up two brands focused on the international market, Omoda and Jaecoo, to support its global expansion plans. The company has a deal with Spanish firm EV Motors, which enables Omoda and Jaecoo models to be built at a former Nissan factory in Barcelona. Omoda has begun selling a mainstream SUV, Omoda 5, in electric and petrol-powered versions in the UK. Chery plans to have over 100 dealerships in the UK by the end of 2024. Besides Chinese Chery, SAIC is well-established in the UK, while BYD has opened dozens of dealerships in the UK. However, the UK is not the only country on Chery’s list, with the company looking to invest in Italy as well. According to Zhang, government initiatives alongside the quality of education, logistics, and the supply chain would decide which country Chery would build its factories in. He stated that Chery would not use any unfair methods, and wanted to be adaptable to the local market. Zhang added that being localised was the only long-term strategy. (Theo Leggett, “Chinese giant Chery could build cars in UK,” BBC News, 08 September 2024)

Spanish and Norwegian leaders visit China, reports Global Times
On 09 September, Global Times reported on the Prime Minister of Spain, Pedro Sanchez, and the Prime Minister of Norway, Jonas Gahr Store visits to China. The Diplomat informed that Sanchez would preside over the Spain-China Forum, and participate in the China-Spain Business Advisory Council Meeting. It added that after his meeting, Sanchez would attend a bilateral business meeting organised by the Spanish Confederation of Business Organizations, and open the Cervantes Institute in Shanghai. The Norwegian Consulate General in Shanghai stated that Store would attend events at Fudan University and the Norwegian Seafood Council respectively. It informed that the Prime Minister would attend the christening of a Norwegian company-owned ship, built at a shipyard near Shanghai. Store informed through the Consulate statement that he hoped to strengthen Norway-China cooperation on key global issues like climate and the green shift, and geopolitical issues. Research Fellow at the Chinese Academy of Social Sciences’ Institute of European Studies, Zhao Junjie, stated that the engagement with business communities showed the Spanish and Norwegian leaders’ importance to trade and economic cooperation with China. According to Zhao, the inclusion of cultural events suggested a potential diversification of bilateral channels between the Government of the People’s Republic of China and members of the EU. Zhao pointed out that despite an economic dispute between China and the EU on EV tariffs, the sectors of industrial manufacturing, culture and tourism had great potential for cooperation. Zhao added that China and Spain must have constructive communication on trade issues and show the EU that trade differences in a few areas were not a hurdle towards bilateral ties. According to Zhao, Norway-China cooperation in various fields would facilitate Europe’s green transition and climate action. Zhao stated that Norway-China cooperation could compel more EU member states to change their perceptions and policies towards Beijing. Zhao informed that he hoped the two leaders understand China’s sincerity and carry a friendly message back to Europe. ( Zhang Han, Yu Xi and Li Yawei, “PMs of Spain, Norway visit China amid trade frictions,” Global Times, 09 September 2024)

China expresses dissatisfaction with Dutch decision to expand export controls, reports SCMP
On 09 September, the South China Morning Post reported that the Government of the People’s Republic of China had expressed its dissatisfaction with a decision by the Government of the Netherlands to expand export controls on chip-making equipment manufactured by Dutch multinational corporation ASML Holdings. The Dutch government informed that it would expand export licencing requirements for ASML’s 1970i and 1980i deep ultraviolet (DUV) immersion lithography tools. Netherlands’s Minister for Foreign Trade and Development Aid, Reinette Klever, stated that the decision was taken “for our safety.” The Ministry of Commerce of the People’s Republic of China responded to the announcement by accusing the US of coercing countries to tighten export control measures for semiconductors and related equipment. The Ministry stated that the Dutch government must avoid measures that would damage cooperation between China and the Netherlands and safeguard the common interests of Chinese and Dutch enterprises. It added that the Dutch government must not abuse export controls. The Chinese government criticised the US previously for pressurising its allies to restrict Chinese access to chip-making equipment. (“China blames US ‘coercion’ for  new Dutch export controls on ASML chip-making equipment,” South China Morning Post, 09 September 2024)

China Reader Daily Wire | 07 September 2024, Saturday | Vol.1 No. 166
CHINA & AFRICA
China deepens African ties with ambitious economic and development pledges
On 05 September, at the Forum on China-Africa Cooperation, President Xi Jinping revealed an ambitious plan for the expansion of China’s partnership with Africa. Under this, he pledged to create at least one million jobs and pledged 360 billion yuan (USD 51 billion) in new financing. Xi emphasised past successes: “We have together built roads, railways, schools, hospitals, industrial parks and special economic zones.” Denominated in yuan, the financial package was intended to undergird 30 infrastructure projects and ramp up continental connectivity. China is by far Africa’s largest trade partner and creditor, which makes this engagement important. UN Secretary-General Antonio Guterres hailed China’s development know-how while calling for “historic injustice” against Africa to be set right. Xi also pledged 30 clean-energy projects and extended an offer of cooperation on nuclear technology to respond to power deficits across the continent. More than 50 African nations attended this summit, during which the Beijing Declaration and an Action Plan up to 2025-27 were adopted, further strengthening China’s position as a key development partner of the Global South. (“China’s Xi promises one million jobs for Africa,” Aljazeera, 05 September 2024)

China-Africa partnership flourishes with shared vision for modernisation, reports CGTN
On 05 September, CGTN reported that China and Africa’s partnership continues to deepen, as shown in the recent Forum on China-Africa Cooperation (FOCAC) summit. The President of China, Xi Jinping, was at hand to declare the elevation of the bilateral relations to the strategic level, keener on an “all-weather China-Africa community with a shared future”. The results of the collaboration were recorded from USD 10.5 billion in 2000, trade volumes expanded to reach USD 282.1 billion by 2023, and China’s accumulated direct investment in Africa surpassed $40 billion. Infrastructure projects like the TAZARA railway, best describe the permanent partnership. Xi followed the outline with ten action plans for the following three years, ranging from trade to health and security. Importantly, China will implement 30 infrastructural projects and provide 2,000 medical personnel to Africa in the foreseeable future. For instance, jobs and local economic growth attributed to Chinese investments in these countries are what has happened at the Sapphire Float Glass Factory in Tanzania. China has established 24 agricultural technology demonstration centres and significantly enhanced multiple crop yields. Xi emphasised inclusive modernisation: “On the path to modernization, no one, and no country, should be left behind.” (“Joint pursuit of modernization: China, Africa eye new chapter in building a community with a shared future,” CGTN, 05 September 2024)

China strengthens educational and cultural ties with Africa through UNESCO partnership
On 06 September, in a move to strengthen China-Africa ties, Chinese Vice Premier Ding Xuexiang announced plans for expanded education cooperation and the protection of cultural heritage. Addressing a Beijing dialogue which attracted 460 participants, including officials from China and African nations, Ding told the gathering that China was committed to working with Africa and UNESCO. It provided that the initiative shall focus on three major areas of promoting digital education, offering youth employment and entrepreneurial opportunities, and protecting cultural heritage. China pledged to establish with UNESCO a trust fund for heritage protection which would help Africa enhance its capacity to protect its cultural heritage. A member of the Standing Committee of the CPC Central Committee’s Political Bureau Ding, emphasised that all those mentioned domains require joint efforts. (“Vice premier: China ready to advance education cooperation with Africa, UNESCO,” CGTN, 07 September 2024)

China-Africa Summit marks new era of strategic cooperation
On 05 September, Chinese Foreign Minister Wang Yi hailed the 2024 China-Africa Cooperation Forum Summit as a “great success,” noting that China and 53 African countries have elevated their relations to strategic partnerships. Speaking alongside his Senegalese counterpart Yacine Fall and Congo’s Jean-Claude Gakosso, Wang said China-Africa relations had, until now, been characterised as “all-weather friends” but were now an “all-weather community with a shared future”. He set out six proposals for modernisation, including a detailed three-year cooperation plan with 10 new partnership actions by Chinese President Xi Jinping. Both sides vowed to support each other on core issues, reject prejudice and ensure modernisation benefits all people. Wang described the summit as underlining confidence in the solidarity of the Global South and said Africa and China are committed to multilateralism and an inclusive global order. African leaders described the partnership as transformational and said it would go down in history as a model for international cooperation. (“Chinese FM says 2024 FOCAC summit achieves 'complete success',” CGTN, 07 September 2024)

China and Central African Republic elevate ties, reports CGTN
On 06 September, CGTN reported that the President of China, Xi Jinping, and the President of the Central African Republic Faustin-Archange Touadera had announced the elevation of bilateral ties between their nations into a strategic partnership. At the Forum on China-Africa Cooperation (FOCAC) Summit 2024; Xi stated that the Government of the People’s Republic of China was ready to improve exchanges with the Government of the Central African Republic to create a better life for citizens from both countries. The Chinese President also informed that the Central African Republic needed to utilize well the measures announced at FOCAC, in order to improve bilateral cooperation across sectors with China. According to Xi, the ultimate goal of Chinese modernization is to ensure a better life for citizens; which is also the goal behind the efforts to advance modernization with African nations. Xi also stated that he hoped the Central African Republic would provide a safer business environment for Chinese enterprises. On the other hand, Touadera stated that he hoped to work with Beijing to meet the objectives of the FOCAC summit and enhance cooperation in areas like agriculture and infrastructure. He also informed that the Central African Republic was willing to improve multilateral coordination with China; and appreciated China’s leading role in international affairs. ( “China, Central African Republic elevate bilateral ties,” CGTN, 06 September 2024)

China announces strategic partnership with South Sudan, reports CGTN
On 06 September, CGTN reported that the President of China, Xi Jinping and the President of South Sudan, Salva Kiir had announced the elevation of bilateral ties between their countries into a strategic partnership. The two leaders made the announcement while meeting at the Forum on China-Africa Cooperation (FOCAC) Summit 2024. Xi informed that the Government of the People’s Republic of China was ready to share development expertise and opportunities with the Government of South Sudan, strengthen cooperation in sectors like agriculture, mining, and petroleum, and continue implementing projects such as education. Xi also stated that China was ready to help South Sudan diversify its economy; and supported the country in advancing its political transition process. Xi also informed that China opposed external interference in South Sudan’s internal affairs, and that building substantive relations between the two countries was in line with shared expectations and long-term interests of the citizens of both nations. Meanwhile, Kiir informed that Chinese support had helped improve South Sudan’s economy and improve the livelihood of its residents. The South Sudanese President also promised to provide a conducive environment for Chinese enterprises. ( “Chinese, South Sudanese presidents elevate bilateral ties,” CGTN, 06 September 2024)

China-Africa entrepreneurs conference held, reports Global Times
On 07 September, Global Times reported that the eighth conference of Chinese and African Entrepreneurs had been held. The conference was held as a part of the Forum on China-Africa Cooperation(FOCAC) Summit 202; and involved companies across diverse sectors like energy, mining, technology and electronics. Official data showed that the conference had over 1,000 participants from African nations. The Chief Executive Officer (CEO) at a South Africa-based security firm, Phuti Jackson Mampa who attended the conference stated that Chinese investment and collaborations in Africa would help bring greater benefits to the continent; and aid in its development. Another participant, the chief strategy and growth officer from the Smart Africa Alliance, Didier Nkurikiyimfura informed that the collaboration potential between China and Africa in terms of digital technology was waiting to be unlocked. He also stated that China had competitive advantages that could  help use technology to achieve the internal modernization of Africa.   According to Nkurikiyimfura, specific digital collaborations like e-agriculture and smart city solutions could be designed based on the needs of every country. The secretary-general of Tanzania-China Friendship Promotion Association, Joseph Kahama stated that China and Africa could collaborate together in terms of building infrastructure; an area where Africa had lagged behind while China had advanced. A spokesperson from Artificial Intelligence (AI) company 4Paradigm informed that AI technology could play a role in the modernization of Africa. ( Liu Caiyu, Fan Anqi and Li Meng, “China-Africa entrepreneurs conference held in Beijing,” Global Times, 06 September 2024)

SCIENCE & TECHNOLOGY
US export restrictions fail to curb China’s access to advanced AI chips
On 07 September, despite the efforts of the US to block the access of China to state-of-the-art AI chips, advanced chips from Nvidia seem to be freely available in the Chinese market and at competitive prices. Small Chinese cloud providers, for instance, offer access to servers with eight Nvidia A100 processors for about USD 6 an hour versus US rates of around USD 10 per hour. The disparity in that price would indicate ample supply and, therefore, circumvention of export controls. Chips such as A100s and H100s are crucial to large language model training pop-ups on Chinese e-commerce sites and in electronic goods markets. The founder of one start-up estimated that well over 100,000 H100 processors were in China, with some of those smuggled in. One Chinese entrepreneur said: “We bought our H100s from a company that smuggled them in from Japan. They etched off the serial numbers.” While larger Chinese tech firms, such as Alibaba and ByteDance, charge a higher rate, smaller vendors seem less bothered by compliance. It underlines how hard it is to enforce export restrictions as one American sanctions expert said: “It's hard to completely enforce export controls beyond the U.S. border.” (Ryan McMorrow and Eleanor Olcott, “Nvidia’s AI chips are cheaper to rent in China than US,” Financial Times, 07 Septemeber 2024)

INTERNAL
China ends international adoptions amid demographic challenges
On 06 September, China is going to pause its international adoption program in a big policy turn after thirty years. The Chinese have placed more than 160,000 children overseas since 1992, most of them girls, and 82,000 were taken home by American families. Foreign Ministry Spokeswoman Mao Ning stated that this decision aligns with global trends, limiting adoptions to children of blood relatives within three generations. It comes as China battles demographic challenges, such as the falling population and one of the lowest birth rates in the world. The government is now focused on urging young couples to have children from a strict one-child policy enforced from 1979 to 2015. That law often led families to favour male children, with many girls being given up for adoption. The move follows similar decisions of other countries, like the Netherlands and Denmark, to restrict or halt international adoptions. But as China shifts priorities, the impact on families currently in the process is not yet certain. (Farah Master, “China stops foreign adoptions of its children after three decades,” Reuters, 07  September 2024)

Super Typhoon Yagi batters Hainan Island and threatens Southern China
On 07 September, BBC reported that super typhoon Yagi is barreling into southern China’s popular tourist region of Hainan Island with sustained winds as high as 223 kilometres per hour. Yagi, which was the strongest typhoon to hit the region in a decade, forced 400,000 people to be evacuated and halted transportation services. The Indo-Pacific Tropical Cyclone Warning Center named Yagi an “extremely dangerous and powerful” weather system and warned that it can cause destructive damage. Power outages have been across the board in Hainan, which is generally referred to as “China's Hawaii”. Up to 830,000 households lost electricity, and emergency teams are trying to restore it. The storm has also reached far beyond Hainan, with Hong Kong suspending stock trading and shutting schools. Vietnam is bracing for the arrival of Yagi, mobilizing 460,000 military officers to cope with the typhoon. Deputy Agriculture Minister Nguyen Hoang Hiep warned that negligence would amount to devastating damage in key socio-economic regions. According to scientists, the uptrend in the strength and frequency of typhoons is due to the changing climate, since warmer oceans and atmosphere fuel more intense storms. (Kelly Ng and Joel Guinto, “Strongest typhoon in a decade hits 'China's Hawaii',” BBC, 07 September 2024)

ENERGY & ENVIRONMENT
China’s brokerage sector consolidation creates USD 230 billion
On 06 September, large consolidations have been taking place in the brokerage industry in China, with the latest involving a deal between Guotai Junan Securities and Haitong Securities. This USD 230 billion transaction will result in the biggest brokerage in the country, edging past Citic Securities. An analyst Huang Yan said: “This marks the start of an industrywide consolidation that will see more mergers between major brokerages.” The transaction thus fits in with Beijing’s ambition to foster around 10 leading institutions within five years and internationally competitive investment banks by 2035. It will take this move to consolidate and finally make the USD 1.7 trillion industry stronger in the face of unfavourable market conditions and shrinking profits. The trend is likely to continue, with possible matches between other big players, including CICC and Galaxy Securities. Analysts from Morgan Stanley say that could “revive some investor interest in broker stocks generally, especially those with potential M&A stories”. That broader restructuring is part of China’s overall campaign to reform its financial industry, make it more competitive, and reduce the risks of a cooling economy. (Selena Li, Samuel Shen and Julie Zhu, “China creates $230 billion brokerage powerhouse as sector consolidates,” Reuters, 06 September 2024)

CHINA & EAST ASIA
China’s deflation concerns
On 06 September, during a Bund Summit in Shanghai, former governor of the Bank of Japan Haruhiko Kuroda used similar economic challenges to warn China of the spectre of “Japanification”. Though his comments said that China’s situation is not as serious as it has been for Japan, Kuroda did stress that wage increases have to be sustained to keep deflation at bay. Similar concerns were expressed by former People’s Bank of China Governor Yi Gang, who warned that the emergence of falling prices needs to be addressed urgently. He said some price indicators are in negative territory now for quarters, such as the Producer Price Index. Recovery in China’s economy remains “small” because of weak domestic demand and has recently urged the government to trigger spending mechanisms. In any case, deflation is not a big threat, Beijing claims. Yi emphasised addressing unemployment, using proactive fiscal policy, and facilitating monetary policy. He said: “The key lies in how to improve domestic demand, successfully address the real estate market and the local government debt problem, and increase confidence in society.” (Mandy Zuo and Frank Chen, “China must act to avoid crisis, former Japanese central banker warns,” South China Morning Post, 06 September 2024)

CHINA & AMERICAS
Georgia Tech to end research and educational partnerships with China, reports Reuters
On 07 September, Reuters reported that the US university of Georgia Tech was ending research and educational partnerships in the Chinese cities of Tianjin and Shenzhen. The university had faced criticism for its affiliations; with the US House Select Committee on Strategic Competition between the United States and the Chinese Communist Party writing a letter requesting details on collaborations between Georgia Tech and Tianjin University on semiconductor technology. The Committee stated that the research centre in Tianjin was affiliated with a Chinese company; whose subsidiaries supplied the People’s Liberation Army (PLA) of China. Before this, Tianjin University and its affiliates had been added to the export restrictions list by the US Commerce Department in 2020, for violating US national security through actions like trade secret theft and research collaboration advancing the PLA. A spokesperson for Georgia Tech, Abbigail Tumpey stated that the university had assessed the situation, and decided it could not continue its partnership with Tianjin University. Georgia Tech also informed that it would stop participating in the Shenzhen institute; although the students currently in programs there would be allowed to complete their degree requirements. Chairwoman of the House Committee on Education and the Workforce and a Member of the US House of Representatives, Virginia Foxx stated that Georgia Tech had taken the right decision. Foxx also hoped that other universities followed the lead of Georgia Tech. Scrutiny of alleged Chinese influence at US universities has increased in recent years; with concerns that Beijing is violating US national security laws. ( Michael Martina, “Georgia Tech to end China partnerships following concerns over military ties,” Reuters, 07 September 2024)

China to hold joint military exercises with Brazil, reports SCMP
On 06 September, SCMP reported that the Government of the People’s Republic of China would hold joint military exercises with the Government of the Federative Republic of Brazil. The Ministry of National Defence of the People’s Republic of China informed that a detachment of the People’s Liberation Army(PLA) Marine Corps would take part in the annual military exercise, Exercise Formosa. According to the Chinese defence ministry, the Brazilian Armed Forces had invited China to take part in the exercises. The defence ministry also stated that the exercises would focus on joint landing and anti-landing combat drills; and would increase friendship and cooperation between the Chinese and participating militaries, alongside improving their ability to launch joint responses to security risk challenges. Exercise Formosa is an annual military exercise hosted by the Brazilian Marine Corps, and Chinese participation is a result of improving ties between the Chinese and Brazilian governments. The President of Brazil, Luiz Inacio Lula da Silva had announced Brazil’s participation in the Chinese Belt and Road Initiative (BRI); while the Minister of National Defence of the People’s Republic of China Dong Jun met with the Commander of the Brazilian Army, Tomas Ribeiro Paiva. ( Yuanyue Dang, “In rare shift, China will send marine corps to Brazil for  joint military exercise,” South China Morning Post, 06 September 2024)

Commercial and trade working groups of China and US to hold meeting, reports Global Times
On 07 September, Global Times reported that the China-US commercial and trade working group was scheduled to use its second meeting. China International Trade Representative and Vice-Minister of Commerce of the People’s Republic of China Wang Shouwen will chair the meeting alongside the US Secretary of Commerce for International Trade Marisa Lago. According to the Ministry of Commerce of the People’s Republic of China, the two sides will discuss topics such as concerns about economic and trade policies; and appeals from businesses for pragmatic cooperation during the meeting. The working group meetings come amidst a recent increase in meetings between officials from the US Government and the Government of the People’s Republic of China; such as US National Security Advisor Jake Sullivan’s recent visit to China. Senior Fellow from the Centre  for China and Globalization, He Weiwen stated that improving bilateral dialogue would help stabilize bilateral ties, especially in the fields of trade and economy; as well as addressing common concerns for both sides. He also informed that the Chinese government might use the meetings to raise its concerns over US policies; such as the plan to impose additional tariffs on electric vehicle exports from China and export restrictions of tech products targeting China. Director of the Centre for International Political Economy Studies at Renmin University, Bao Jianyun stated that despite the US policies; the Chinese government was trying to ensure that bilateral relations were normal. According to Bao, the US Government needed to join hands with the Chinese Government to maintain normal global trade order and reasonable market competition. (Ma Jingjing, “China-US commercial, trade working group to hold 2nd meeting,” Global Times, 07 September 2024)

China Reader Daily Wire | 06 September 2024, Friday | Vol.1 No. 165
CHINA & AFRICA
China promises more financial support for Africa, reports Reuters
On 05 September, Reuters reported that the President of China, Xi Jinping had promised to send more funding and financial support for Africa. While attending the Forum on China-Africa Cooperation(FOCAC) summit, Xi informed delegates from over 50 African countries that the Government of the People’s Republic of China would provide 210 billion CNY or 50.70 billion USD in financial assistance to Africa over three years; as well as aid in creating a million jobs. However, he stated that 210 billion CNY would be disbursed through credit lines, and 70 billion CNY would be provided as fresh investment by Chinese companies. The Chinese President also promised to carry out three times as many infrastructure projects as before; and stated that Beijing was willing to increase cooperation with Africa in industry, agriculture, infrastructure, investment, and trade. Xi also stated that China was ready to launch 30 clean energy projects across Africa, and offered cooperation on nuclear technology and dealing with the power deficit. He also stated that a China-Africa network of land and sea links and co-ordinated development needed to be created, and urged Chinese contractors to return to the continent. According to Chinese state media, the FOCAC summit witnessed the adoption of the Beijing Declaration and the Beijing Action Plan for 2025-2027. The Action Plan includes provisions for postponing debt owed to China by African nations; as well as establishing an African rating agency. ( Laurie Chen and Joe Cash, “China offers Africa $51 billion in fresh funding, promises a million jobs,” Reuters, 05 September 2024)

UN Secretary-General shows support for China-Africa partnership, reports UN News
On 05 September, UN News reported that the Secretary-General of the United Nations (UN), Antonio Guterres had indicated support by the UN for closer ties between China and Africa. While addressing the Forum on China-Africa Cooperation (FOCAC) summit, Guterres stated that joint efforts by China and Africa could spark new momentum for development in Africa. According to Guterres, African nations faced several challenges presently; such as debt, geopolitical tensions and conflicts, growing poverty and hunger, the worsening climate crisis, and threats to efforts towards sustainable development. The Secretary-General also stated that the strong China-Africa partnership was a pillar of South-South cooperation; and could be a catalyst towards the renewable energy revolution, as well as transitions in food systems and digital connectivity. Guterres informed that Africa could maximize the potential of Chinese support in areas like trade, finance, and technology; and that the support of both was required for initiatives aimed at making the UN Sustainable Development Goals (SDGs) a reality. Guterres also stated that the UN was pushing for reforms that would allow the international financial architecture and institutions to respond to the challenges faced by developing nations; including those in Africa. He concluded by informing that the UN would be fully engaged in support of a strong China-Africa partnership, to meet common goals. (“Guterres underlines support for China-Africa partnership,” UN News, 05 September 2024)

Chinese Foreign Minister states FOCAC complete success, reports CGTN
On 05 September, CGTN reported that the Minister of Foreign Affairs of the People’s Republic of China, Wang Yi had stated the Forum on China-Africa Cooperation (FOCAC) Summit 2024 had been a complete success. Wang informed that bilateral ties between China and all African nations with ties to it had been elevated to the position of strategic relations, and an all-weather China-Africa community with a shared future for the new era. The Foreign Minister also stated that a blueprint had been laid out for action to advance China-Africa cooperation; informing how the President of China, Xi Jinping had announced 10 partnership actions for modernization to consolidate China-Africa cooperation for the next three years. According to Wang, six major proposals to advance China-Africa modernization had been put forth; and both China and Africa had agreed to show mutual support and practice multilateralism alongside opposing prejudice, advancing modernization, and addressing historical injustices. According to Wang, the FOCAC summit showcased the Global South’s faith in solidarity and cooperation. ( “Chinese FM says 2024 FOCAC summit achieves ‘complete success’,” CGTN, 06 September 2024)

FOCAC Summit witnesses adoption of action plan for Africa, reports Global Times
On 06 September, Global Times reported that a declaration and an action plan intended to improve cooperation between China and Africa had been adopted at the Forum on China-Africa Cooperation(FOCAC) Summit 2024 in Beijing. The action plan is to be implemented in the next three years and covers several areas; such as people-to-people exchanges, healthcare, rural revitalization and people’s wellbeing, green development and common security, development cooperation, and mutual learning among civilizations. Professor at the School of International Relations and Diplomacy at Beijing Foreign Studies University, Song Wei stated that the plan showed China’s confidence and sincerity in promoting modernization with Africa, and covered basically all aspects of modernization. The Government of the People’s Republic of China plans to provide Africa with 360 billion CNY in the next three years to ensure the successful implementation of the 10 partnership initiatives. The action plan contains several provisions relating to China providing aid in Africa’s development; including 30 infrastructure projects in Africa implemented by Beijing, sending 2,000 medical personnel and public health experts and 500 agricultural experts, encouraging Chinese businesses in Africa to create 1  million local jobs, providing 60,000 training opportunities with women’s empowerment and youth development prioritized, 30 clean energy and green development projects, building a multimodal sea-rail transport network which connects the central and western parts of China to Africa. Beijing also plans to establish and implement a Global Security Initiative partnership which involves providing military grants, training military personnel, and inviting African military officers to China. The President of China, Xi Jinping also emphasized Beijing’s support for Africa’s development; stating that the 10 partnership actions would advance modernization. Xi also stated that bilateral ties between China and all African countries having diplomatic ties with it must be elevated to strategic relations, and China-Africa relations must be elevated to an all-weather China-Africa community with a shared future for a new era. Executive director of the Southern African Research and Documentation Centre, Munetsi Madakufamba stated that China was offering an alternative political model for Africa by inviting 1,000 African political party members to Africa for an exchange. A member of the research institute TRENDS Research and Advisory, Hamad Alhosani informed that China’s engagement would empower African nations; and lead to mutual benefit and long-term growth. According to Alhosani, FOCAC emphasized cooperation over confrontation; and showed China as a key partner of Africa. ( Zhang Han, Liu Caiyu, Fan Anqi and Chi Jingyi, “Beijing declaration, action plan adopted at FOCAC summit,” Global Times, 06 September 2024)

OUTER SPACE
China’s Lunar South Pole base by 2035, says Chinese blueprint
On 06 September, CGTN reported that the Government of the People’s Republic of China had unveiled a blueprint for building an international lunar research station (ILRS). The chief designer of the Chinese deep space exploration programme, Wu Yanhua revealed the plan while delivering a speech at the second International Deep Space Exploration Conference. Wu stated that the ILRS would consist of sections on the lunar surface, on Earth and in lunar orbit; and would be built in two phases with a basic model to be built on the lunar south pole region by 2035 and an extended model to be built by 2050.  Wu informed that the the ILRS blueprint planned the extended model to be a comprehensive lunar station network using the lunar orbit station as its central hub, and the south pole station as its primary base. According to Wu, the extended model would also include exploration nodes on the lunar equator and far side of the moon; and would be capable of laying a foundation for manned landings by China on Mars. Wu also informed about the ILRS composition, with solar, radioisotope, and nuclear generators powering the lunar station; and lunar-Earth and high-speed lunar surface communication networks alongside lunar vehicles such as an  unmanned long-range vehicle would be included amongst the features of the ILRS. He also stated that features like orbital and lunar-surface refueling stations, a launch vehicle, and a return capsule were being developed. This was being done to ensure Earth-moon transportation, according to Wu. (“China outlines blueprint for international lunar research station,” CGTN, 06 September 2024)

CHINA & AMERICAS
China investigates Canada’s tariff on Chinese EVs, reports South China Morning Post
On 06 September, an editorial in South China Morning Post titled “China widens trade battlefield with precedent-setting dispute over Canada’s EV tariffs,” looked into the Chinese investigation over Canada’s tariff hike on Chinese EVs.  The Ministry of Commerce stated that Article 7 of China’s foreign trade law, permits countermeasures over any country as a response to prohibitive or other measures on a discriminatory basis. A professor of economics at Shanghai University Yao Weiqun said: “This is a new use of a trade tool for China. Though the article has been part of the law since 1994 – when the first version was entered into force – it has never been referenced as justification for a trade action. This means on top of the existing mechanism at the WTO, China can also officially deal with Canada bilaterally, which opens more ways for this matter to be tackled.” However, the tariff imposition by Canada came shortly after similar duties were imposed by the US and European Union, both criticising China’s overcapacity and biased competition in its EV production. A law professor at Singapore Management University Henry Gao said: “the anti-discriminatory article in the Chinese foreign trade law was modelled after similar legislation in the US and EU. It had not been previously used, he added, as China preferred to “follow proper WTO procedure in settling trade disputes” but now wants to deter other countries with “swift and decisive countermeasures.” Additionally, the economic investment is comparatively less in Canada as compared to the US and is unlikely to have similar outcomes of pressure on the US to manage trade. (“China widens trade battlefield with precedent-setting dispute over Canada’s EV tariffs,” South China Morning Post, 06 September 2024)

INTERNAL
Paired-up assistance improves education in Xizang, reports Xinhua
On 06 September, Xinhua reported that the paired-up assistance model by the Government of the People’s Republic of China was aiding in the educational development of the Xizang Autonomous Region. Three decades ago, the region faced problems of a high teacher turnover and poor teacher facilities. However, the Chinese government launched the paired-up assistance model to resolve the issue; with central state organs, centrally-administered enterprises owned by the Chinese government, and provincial-level regions designated to aid in specific areas in the Xizang region. Cadres from government and enterprise units have taken turns to work in the region, contributing towards the development of local education in the region. An example of other provinces coming to the aid of Xizang is how schools in Zhongshan City in the Guangdong Province in south China organized paired-up assistance with all primary and secondary schools in the Gongbo’Gyamda County in Xizang in 2016. The help provided by provinces like Guangdong has contributed towards facilities like advanced teaching facilities, heating systems, basketball courts, and football fields being built in schools in Xizang. This has greatly improved the teaching standards and quality of education in Xizang. (“Paired-up assistance boosts Xizang’s education development,” Xinhua, 06 September 2024)

POLAR
China-Russia cooperation in Arctic against West increases, reports SCMP
On 05 September, SCMP reported that the Government of the People’s Republic of China was seeking greater collaboration with the Government of the Russian Federation in the Arctic region, against Western interests. According to the magazine Newsweek, the Chinese government sent three icebreakers to the Arctic in July; giving open-source ship tracking data based on the automatic identification system vessel tracker as evidence. Three Chinese icebreakers; namely the Xue Long 2, the Ji Di, and the Zhong Shan Da Xue Ji Di are now travelling through the Arctic. Research associate for China analysis at the US-based Centre for Strategic and International Studies, Aidan Powers-Riggs stated that China was sending “a clear signal” that it was pursuing its great power ambitions in the polar regions; through sailing the icebreakers in the Arctic region. According to Powers-Riggs, the Chinese government was increasing its Arctic presence through commercial and scientific activities, and trying to take advantage of the changes in the geopolitical landscape.  In recent years, Beijing has described itself as a “near-Arctic state”; amidst growing tensions in the polar regions between the US and Russia. According to the Chinese newspaper Global Times, the Chinese government plans to start constructing a fourth icebreaker in early 2025; to operate around the year in polar environments for the purposes of in-depth scientific research missions and garner full-area and all-time entry capabilities. Powers-Riggs stated that China was trying to reduce obstacles and cooperate more closely with Russia in the Arctic region; and remained sceptical of attempts to exclude it from the Arctic by nations that were members of the North Atlantic Treaty Alliance (NATO). The Premier of China, Li Qiang signed a joint communique with the Prime Minister of Russia, Mikhail Mishustin on developing Arctic shipping routes, as well as polar ship technology and construction. Back in July 2023, the Chinese People’s Liberation Army (PLA) Navy and the Russian Navy had conducted joint patrols near the Aleutian Islands close to Alaska.  China has also been the largest importer of oil and natural gas from Russia; with Senior Fellow at the Hudson Institute Liselotte Odgaard stating that Beijing was showing it was a “close strategic partner” of Russia in the Arctic. The US Defence Department has noted the threat from China, updating its strategy in July to strengthen its Arctic technological capabilities against China; which it described as a “pacing challenge.” According to the Defence Department, China’s collaboration with Russia had “implications” vis-à-vis the security of the US and its allies and partners. However, Associate Professor of Political Science at the Arctic University of Norway Marc Lanteigne; stated that it remained to be seen how much China and Russia trusted each other regarding their Arctic interests. According to Lanteigne, China was more dependent on Russia for regional access in the Arctic. He also stated that Russia was trying to create an alternative Arctic group with China and the other BRICS states. ( Seong Hyeon Choi, “‘Arctic ambition’: 3 Chinese icebreakers forge polar presence and unity with Russia,” South China Morning Post, 05 September 2024)

CHINA & THE AMERICAS
Intense diplomatic efforts underway to prevent US-China war, reports The Economic Times
On 06 September,  The Economic Times reported that US National Security Adviser, Jake Sullivan and the Minister of Foreign Affairs for the People’s Republic of China, Wang Yi had held talks to reduce tensions between their countries. Sullivan and Wang have been set up by the President of the United States, Joe Biden, and the President of China, Xi Jinping as a quasi-formal back channel to handle China-US ties. US officials have been attempting to engage in dialogue with China and Sullivan’s visit; wherein he met Xi and Vice-Chairman of China’s Central Military Commission (CMC) General Zhang Youxia appears to be a step ahead. Observers think that Zhang is a key source of influence upon Xi and his administration; visiting him and Sullivan crucial. While the US administration is keen to deter an accidental conflict or deliberate Taiwan invasion; tensions are likely to linger between the two nations. Sullivan’s request for the Government of the People’s Republic of China to stop supplying industrial components to Russia was ignored; for instance. Reports also indicate that Xi took an assertive approach vis-à-vis China’s interests and position in his meeting with Sullivan, as well as with Biden last year. An official from the Chinese Government stated that Xi informed Biden that China’s reunification with Taiwan was “unstoppable”; indicating his rigid stance on the issue. For the moment, the US Government is focused on small victories; such as a deal with Zhang for direct communications between US and Chinese regional commanders. According to Sullivan, diplomacy mattered; and it would help in improving understanding and finding common interests. ( “The ‘intense diplomacy’ to stop a US-China war,” The Economic Times, 06 September 2024)

Major Superpowers to prevent misunderstandings in the Indo-pacific, reports Reuters
On 05 September, Reuters reported on a speech to be made by the US Commander in the Indo-Pacific to the Southern theatre command of Chinese armed forces to prevent military misunderstanding among the superpowers. The call came from Ambassador of the United States to China Nicholas Burns, after he visited Beijing last month along with the US National Security Adviser Jake Sullivan, who subsequently met Xi’s leading military adviser and agreed that the command leaders would have a telephonic conversation with their counterparts in the region. Additionally, Burn said: “I think that Admiral Sam Paparo ... is going to have a conversation with a southern theatre commander of the People's Liberation Army in the next few weeks and  Washington had been pursuing closer military-to-military communication channels with Beijing since ties sank to a historic low point after the U.S. downed a suspected Chinese surveillance balloon last year.” He further stated the apprehension of the Chinese Navy’s aggressive nature over US allies in the Philippines and Japan. Furthermore, he said: “the United States had been encouraged by some progress with China in dealing with the scourge of fentanyl, the leading cause of U.S. drug overdoses, but wants to see more actions on precursor chemicals, arrests and attention to illicit finance.” (“US and China commanders to discuss conflict prevention 'in next few weeks',” Reuters, 06 September 2024)

Kamala Harris backed by Chinese Americans launch groups, reports South China Morning Post
On 06 September, an opinion in South China Morning Post titled “US 2024 election: Chinese-Americans launch group backing Kamala Harris and Tim Walz,” looked into US politicians and community leaders launching ‘Chinese-Americans for Harris-Walz’, supporting the Democratic presidential candidate Kamala Harris. US Trade Representative Katherine Tai said: “It is hard to be Chinese-American in America. There is a level of scrutiny that is placed on our community by virtue of our origin stories, our names. This is something that this community may get particularly and feel particularly strongly: an extra set of responsibilities in order to feel like we are proving ourselves as Americans and Harris saw Chinese-Americans as integral to the country’s fabric.” The event was co-chaired by US Democratic senator Tammy Duckworth aiming to register Chinese-American voters to raise funds and neutralise disinformation. The event could make more than USD 17,000 and launched several like-mindedness groups, subsequently, Harris rose to the top some six weeks ago. In addition, a Zoom call titled ‘Black Women for Harris’ attracted approximately forty-four thousand audiences and could raise USD 1.5 million in a mere three hours. Also, a few speakers on 04 September, emphasized the Asian-American heritage of Harris, who perhaps emigrated from India, a similar event was launched titled ‘South Asian Women for Harris’ online rally attracting nine thousand attendees. According to the Pew Research Centre, 56 per cent of registered Chinese-Americans identify with the Democratic Party, while 39 per cent are Republican and 62 per cent of registered Asian Americans stand with Democrats, and 34 per cent with Republicans. Additionally, speakers condemned the presidential transition plan developed by the Heritage Foundation which referred to China as a ‘totalitarian enemy.’ However, Trump distanced himself from the project, which created instability among his critics that it could work in his administration if he is to win in this November. (“US 2024 election: Chinese-Americans launch group backing Kamala Harris and Tim Walz,” South China Morning Post, 06 September 2024)

China Reader Daily Wire | 05 September 2024, Thursday | Vol.1 No. 164
CHINA & AFRICA
Xi Jinping commemorates China-Africa cooperation at FOCAC Summit
On 04 September, Chinese President Xi Jinping highlighted the profound impact of China-Africa collaboration on improving lives across the continent at the 2024 Forum on China-Africa Cooperation (FOCAC) summit. During a welcome banquet, Xi emphasised how FOCAC has facilitated the construction of vital infrastructure, including roads, railways, schools, and hospitals. Xi expressed admiration for the “solid foundation, high starting point and bright future” of the China-Africa community by reflecting on his ten visits to Africa and numerous meetings with African leaders. He cited their partnership as a model for building a global community with a shared future. Xi traced the roots of this relationship to mid-20th-century struggles against imperialism and colonialism, noting how it has endured and strengthened despite changing international dynamics. He praised the implementation of outcomes from the 2021 FOCAC ministerial conference, including the execution of nine key programs. The Chinese leader also commended the mutual support between China and African nations during the COVID-19 pandemic and their united voice on global issues. (“Xi Jinping says FOCAC helps change lives in toast at welcome banquet,” CGTN, 04 September 2024)
 
China-Cammeron announces strategic partnership, reports CGTN
On 04 September, CGTN reported that the President of China, Xi Jinping, and the President of Cameroon, Paul Biya had agreed to elevate ties between their respective nations into a comprehensive strategic partnership. The decision was announced during the Forum on China-Africa Cooperation (FOCAC) summit 2024 in Beijing. Xi stated that the Government of the People’s Republic of China was prepared to work with the Government of Cameroon to improve the level of bilateral ties and the significance of the partnership; and jointly safeguard the legitimate rights and interests of developing countries by improving joint communication and coordination. The Chinese President also praised his Cameroonian counterpart for attending all the FOCAC summits, showing the importance he attached to China-Africa friendship and cooperation. According to Xi, the Chinese government has always stood by Cameroon in achieving peace and development, fighting terrorism, and safeguarding national unity. On the other hand, Biya informed that Cameroon was ready to deepen the comprehensive strategic partnership with Beijing and maintain high-level exchanges. Biya stated that Cameroon’s geographic location and human resources were conducive for Chinese investment; which could convert Cameroon’s mineral resources advantages into development momentum. The Cameroonian President also affirmed that his government was ready to strengthen multilateral cooperation with China to promote global governance conducive to world peace and international justice; and appreciated the global initiatives put forth by Xi. According to Biya, Cameroon also adheres firmly to the one-China principle. ( “Chinese, Cameroonian presidents announce elevation of bilateral ties,” CGTN, 04 September 2024)

China-Gabon agrees to bilateral agreements at FOCAC, reports CGTN
On 04 September, CGTN reported that the President of China, Xi Jinping had stated his desire to carry forward relations between China and Gabon. While meeting the President of Gabon, Brice Clotaire Oligui Nguema during the Forum on China-Africa Cooperation (FOCAC) summit; Xi stated that relations between the Government of the People’s Republic of China and the Government of the Gabonese Republic had become a model for relations between China and other African countries.  The summit witnessed China and Gabon signing bilateral documents in areas like investment, economic cooperation and infrastructure development. Xi informed that China was willing to use the FOCAC summit as an opportunity to improve cooperation with Gabon in fields like agriculture, infrastructure, and health to aid Gabon in diversifying its economic transformation. Xi affirmed that China was willing to improve cooperation with Gabon in matters of counter-terrorism and security; in the interests of domestic stability and regional peace and security. Meanwhile, Nguema stated that China was Gabon’s most important partner which had contributed towards Gabon’s development in many ways. He also thanked Beijing for supporting the political transition process in Gabon; and stated that Gabon supported the One-China principle. Another point mentioned by Nguema was that the two nations actively cooperate under the Belt and Road Initiative (BRI) framework. ( “President Xi Jinping says ready to carry forward traditional China-Gabon friendship,” CGTN, 04 September 2024)

Elevation of strategic partnership between China- Libya, reports CGTN
On 04 September, CGTN reported that the Government of the People’s Republic of China and the Government of National Unity in Libya had agreed to form a strategic partnership between them. The President of China, Xi Jinping, and the Chairman of the Presidential Council of Libya, Mohammad Younes Menfi announced the partnership during the Forum on China-Africa Cooperation (FOCAC) summit in Beijing. Xi stated that China was willing to work with Libya to strengthen dialogue and cooperation with African and Arab nations, have close communications with multilateral organizations like the United Nations, and safeguard the common interests of developing countries, alongside consolidating solidarity and cooperation amongst nations of the Global South. Xi also informed that China supported Libya in safeguarding its national sovereignty and in economic reconstruction; and in ensuring peace and stability through dialogue and consultation. The Chinese President also stated that Beijing’s policy of supporting stable development and improving friendly bilateral cooperation would not change, irrespective of the political scenario. On the other hand, Menfi stated that the FOCAC summit was a historic opportunity for developing relations between China and Libya, as well as Africa. Menfi also informed that Libya was willing to strengthen economic and trade cooperation with China under the Belt and Road Initiative and within the FOCAC framework. He also stated that Libya was ready to provide a favourable environment for Chinese businesses; and encouraged them to take part in economic reconstruction efforts in Libya. (  “China and Libya announce establishment of strategic partnership,” CGTN, 04 September 2024)

CHINA & EUROPE
Five years of bilateral ties: Chinese Vice President meets Russian President
On 05 September, Global Times reported that the Vice President of the People’s Republic of China, Han Zheng held a meeting with the President of Russia, Vladimir Putin during the ninth Eastern Economic Forum (EEF). Han stated that China-Russia relations continued to operate at a high level under the strategic guidance of their leaders, 75 years after bilateral ties were established. The Vice President also stated that the Government of the People’s Republic of China actively supports and participates in development and cooperation in the Russian Far East, values the role and influence of the EEF, and is ready to share development opportunities with the Government of the Russian Federation; which will promote common development among the two nations. Meanwhile, Putin stated that “relations between Russia and China have reached unprecedented heights” and stated that he hoped new areas of cooperation would be found.  Director of the Centre for Russian and Central Asian Studies at the Shanghai Institutes for International Studies, Li Xin stated that Chinese officials and companies attending the EEF showed Beijing’s interest in actively participating in the development of the Russian Far East; and sent a signal of greater cooperation between the two nations for mutual benefits. According to Li, Western sanctions had compelled China and Russia to seek cooperation in more areas. Li also stated that combining developmental activities in both northeastern China and the Russian Far East would lead to mutual benefits for both nations; as well as economic cooperation which would contribute towards peace and stability in Northeastern Asia. China and Russia have been expanding mutually beneficial cooperation in the northeastern regions in recent years; with Chinese infrastructure projects being constructed in the region, alongside officials and business delegations from both nations paying mutual visits for expanding economic and trade cooperation opportunities. (“ Han meets Putin in Vladivostok, hailing bilateral ties, joint devt,” Global Times, 05 September 2024)

CHINA & THE PACIFIC
Former Kiribati President urges the Pacific Island countries to resist Chinese influence
On 03 September, Kiribati’s former President Anote Tong called for Pacific Island nations to demonstrate “courage and dignity” in the face of China’s growing influence in the region. In a recent interview with Nikkei Asia, Tong criticised the Pacific Islands Forum’s decision to remove a clause reaffirming Taiwan’s status as a development partner from its joint communique. Tong expressed scepticism about claims that the Taiwan clause was included in error, stating that leaders typically review draft communiques before publication. He argued that the PIF should have stood firm against Chinese criticism, saying:” That's what we decided. It stays. You don't like it, get out.” While acknowledging China’s investments in large-scale projects in Kiribati, Tong emphasised that the island nation’s true needs lie in education, water, and sanitation. He also voiced concerns about Chinese assistance to Kiribati’s police force, citing incompatibility between democratic and communist systems. Tong addressed climate change challenges, calling for Australia to reduce its fossil fuel emissions while supporting Pacific resilience efforts. He also advocated for expanding partnerships beyond traditional allies, recalling discussions with former Japanese Prime Minister Shinzo Abe about Japan’s potential full membership in the PIF. (Sophie Mak And Rurika Imahashi, “Kiribati ex-leader calls on Pacific to confront assertive China,” Nikkei Asia, 05 September 2024)

INTERNAL
China launches nationwide database to protect migrant workers children, reports SCMP
On 04 September, South China Morning Post reported that China is addressing the challenges faced by children of migrant workers through a comprehensive nationwide database. The initiative aims to cover “left-behind” children and those who have relocated with their parents. The director of the Ministry of Civil Affairs’ Child Welfare Department Guo Yuqiang, announced the government’s goal to compile a precise list of children needing care by 2026, with plans to improve their psychological and physical health by 2035. The database will encompass various aspects of these children’s lives, including residency status, medical insurance, and disabilities. Local authorities are tasked with providing 16 essential services, ranging from infant vaccinations to school enrollment assistance. The 2020 census revealed approximately 71 million migrant children and 67 million left-behind children in China, with over 60 per cent of the latter residing in rural areas. (Josephine Ma, “China to build migrant children database to improve welfare and services,” South China Morning Post, 04 September 2024)
 
CHINA & EAST ASIA
China has intensified its military activities near Japan, reports SCMP
On 03 September, the South China Morning Post reported that China has intensified its military activities near Japan, probing the defences of the US and its allies along the strategic “first island chain”. Recent incidents include a Chinese naval survey vessel entering the Tokara Strait and a reconnaissance plane flying over the Danjo Islands. These moves, coupled with increased patrols near the disputed Diaoyu/Senkaku Islands, signal Beijing’s determination to assert its presence in the region. A senior fellow at the S Rajaratnam School of International Studies Collin Koh, explains that these operations serve both” offensive and defensive aspects of China's war contingency planning.” They aim to gather intelligence and explore potential routes to break through the first island chain in future conflicts. Japan has strengthened its military cooperation with European nations and regional partners like the Philippines. This has prompted Beijing to protest, with military commentator Song Zhongping arguing for China’s right to conduct surveillance near Japan. Tokyo’s International Christian University’s Stephen Nagy predicts that China will “continue to expand its military provocations” to test the responsiveness of the US-Japan alliance.(Seong Hyeon Choi and Yuanyue Dang, “China’s military prods southern Japan with eye on first island chain route: analysts,” South China Morning Post, 033 September 2024)

CHINA & EUROPE
Trade more important than ideology for China-Germany relations, says an op-ed in East Asia Forum
On 02 September, an op-ed published in East Asia Forum informed how the Government of the People’s Republic of China and the Federal Government of Germany were maintaining strong economic ties despite strong political tensions; and suggested how to manage these tensions. The op-ed gives figures about how China has been Germany’s top trading partner for eight consecutive years now, with exports and imports of goods between them valued at 254.4 billion EUR. The op-ed mentions how for both nations, economic stability is the paramount concern, and the European Union(EU) where Germany exercises influence has taken a pragmatic stance vis-à-vis China. It is pointed out how while the German government published a Strategy on China which regarded the country as a strategic enemy, it also published a joint statement with the Chinese government on increasing market access and cooperation in capital market investments. The joint statement also includes important points of future cooperation between Beijing and Berlin; such as combating trade protectionism, having a sustainable and transparent multilateral trading system with the World Trade Organization at the centre, transitioning towards carbon neutrality, and promoting an open world economy. The op-ed states that China and Germany should have a multifaceted approach towards dealing with these issues, utilising their robust institutional architecture to economic dialogues. However, according to the op-ed, German companies need to invest in other markets or promote innovation within Germany and the EU in order to reduce their dependency on China. Another argument put forth in the op-ed is that the Chinese and German governments should include cybersecurity dialogues in their strategic partnership; including agreements on cyber conduct and frameworks for handling cyber incidents. The op-ed states that this would not only create a unified approach towards handling espionage and protect critical infrastructure; it would also address mutual concerns of both China and Germany and alleviate the mistrust of China amongst the German public. The op-ed concludes in the hope that China-Germany bilateral trade will triumph over political and diplomatic concerns; as it has before. ( Preksha Shree Chhetri, “Trade trumps political persuasions in China-Germany relations,” East Asia Forum, 02 September 2024)

CHINA & TAIWAN
Taiwan’s Ministry of Defence investigates ex-general’s inclination towards China
On 04 September, the Taiwan Times reported on a Taiwanese Ministry of National Defence (MND) statement that an investigation was in process regarding a retired general who had stood for the Chinese national anthem in Hong Kong. Mirror Media reported that the incident happened when Tsang You-hsia attended a group meeting named the China Council for the Promotion of Peaceful National Reunification. The retired general was the former head of the Kuomintang’s (KMT) Huang Fu-hsing, whose association had close military links. Additionally, the MND said: “it would invite the National Security Bureau (NSB), the Ministry of Interior, the Ministry of Justice, and the Mainland Affairs Council to help out with the investigation, per CNA. The ministry also called on former military staff to take care and stay away from invitations from China to attend events.” Furthermore, Tsang failed to depart when the Chinese national anthem was played, falling under the Act Governing Relation. According to the People of Taiwan, any action that damages the national dignity could be punished by 50 per cent to 100 per cent loss in pension for five years. (“Taiwan probes ex-general accused of standing for China anthem in Hong Kong,” Taiwan Times, 05 September 2024)
 
New US-Taiwan bilateral cooperation to boost security and resilience, says US Ambassador to Taiwan
On 04 September, Focus Taiwan reported on increasing bilateral cooperation to boost Taiwan's overall resilience and security, listed by United States Ambassador to Taiwan Raymond Greene. Raymond said: “that about half the world's trade passed through the Taiwan Strait and up to 90 per cent of high-end semiconductors were made in Taiwan, if peace and stability across the Taiwan Strait are disrupted, the global economy will suffer a heavy blow and every country will be affected.” Additionally, he also he promised that the US would assist Taiwan with climate change and geopolitical risks. He also iterated the US security commitment toward Taiwan by supporting with arms supplies to Taiwan. Furthermore, he said; “the US is committed to enabling Taiwan, a highly developed economy, to share its expertise in multilateral forums which includes calling for Taiwan's meaningful participation in the United Nations system and other international organizations. Washington will also continue to increase economic, trade and cultural exchanges with Taiwan.” (“New U.S. envoy vows to help enhance Taiwan's resilience, security,” Focus Taiwan, 05 September)

CHINA & THE AMERICAS
US denies expulsion of Chinese diplomat, reports The Guardian
On 04 September, The Guardian reported that the United States Department of State had denied expelling the Consul General of the People’s Republic of China’s Consulate General in New York, Huang Ping. Reports by CNN had stated that the Governor of New York, Kathy Hochul had wanted the Consul General and his mission suspended; and had conveyed the same to the U.S. Government. Hochul stated that she had been informed that Ping was no longer a part of the mission.  However, Spokesperson for the U.S. State Department, Matthew Miller informed that Ping had not been expelled, but his stint at the consulate had ended as part of a regular rotation. The reports around Ping’s removal come after a former Deputy Chief of Staff to the Governor of New York, Linda Sun faced charges of using her post to promote policies favourable to the Government of the People’s Republic of China. Sun and her husband allegedly received gifts and preferential treatment for their spying. ( Ed Pilkington, “US denies Chinese diplomat expelled amid New York spying dispute,” The Guardian, 04 September 2024)

China Reader Daily Wire | 04 September 2024, Wednesday | Vol.1 No. 163
CHINA & AFRICA
China-Zimbabwe call for “five-star ironclad cooperation framework” at the FOCAC summit
On 03 September, during the 2024 FOCAC Summit, Chinese President Xi Jinping and Zimbabwean President Emmerson Mnangagwa held talks to bolster bilateral relations. Xi proposed a “five-star ironclad cooperation framework,” focusing on politics, economy, security, culture, and international coordination. He emphasised China’s support for Zimbabwe’s sovereignty and opposition to foreign interference. Xi also pledged continued educational support for Zimbabwean students. Mnangagwa expressed gratitude for China's assistance in various sectors, including the COVID-19 response. He affirmed Zimbabwe’s commitment to the one-China principle and willingness to deepen cooperation in areas such as infrastructure and agriculture. Both leaders agreed to strengthen exchanges in governance experience and expand mutually beneficial cooperation. China Media Group (CMG) also signed cooperation agreements with key Zimbabwean media entities, witnessed by President’s Xi Jinping and Emmerson Mnangagwa. The memoranda signed by Zimbabwe’s Information Ministry, Broadcasting Corporation, and The Herald newspaper aims to enhance cultural exchanges and media collaboration between the two nations. CMG President Shen Haixiong and Zimbabwean Foreign Minister Frederick Shava formalised the partnerships, which will focus on content sharing, program co-production, and technical cooperation. These agreements build on existing relationships and seek to deepen bilateral ties. The collaborating Zimbabwean organisations play crucial roles in the country’s media landscape, with the Ministry overseeing information dissemination, the Broadcasting Corporation operating multiple channels, and The Herald standing as Zimbabwe’s oldest and most widely circulated newspaper. (“President Xi proposes 'five-star ironclad' cooperation framework with Zimbabwe,” CGTN, 03 September 2024; “CMG signs Memorandum of Cooperation with Zimbabwean media outlets to strengthen ties,” CGTN, 03 September 2024)
 
Xi Jinping reaffirms China’s commitment to Africa in talks with AU chief
On 03 September, during the 2024 FOCAC Summit, Chinese President Xi Jinping met with AU Commission Chairperson Moussa Faki Mahamat, emphasising China’s dedication to strengthening ties with Africa. Xi highlighted the deepening political trust and close coordination between China and the AU in international affairs. He pointed to the successful China-funded Africa CDC as a symbol of their cooperation. Xi stressed Africa’s importance in China’s diplomacy and expressed willingness to enhance strategic trust and practical cooperation. He called for mutual support in advocating for a multipolar world and fair economic globalisation. Faki praised the rapid development of AU-China relations and thanked China for its support in various sectors and in backing the AU’s G20 entry. He reaffirmed Africa’s commitment to the one-China policy and lauded Xi’s global initiatives. Both leaders emphasised the importance of solidarity among Global South countries and the promotion of a fairer global governance system. (“President Xi pledges to deepen China-Africa cooperation in talks with AU Commission chairperson,” CGTN, 03 September 2024)
 
China and Chad ties elevated to comprehensive strategic partnership at the FOCAC Summit
On 03 September, Chinese President Xi Jinping and Chadian President Mahamat Idriss Deby Itno announced the deepening of their bilateral relations to a strategic partnership during the 2024 FOCAC Summit in Beijing. Xi highlighted China’s position as Chad’s largest trading and investment partner, emphasising the mutual benefits of their cooperation under initiatives like the Belt and Road. The Chinese leader expressed willingness to align development strategies and deepen practical cooperation. Xi acknowledged Chad’s support on issues crucial to China and pledged continued backing for Chad’s sovereignty and development choices. He called for strengthened contacts, expanded consensus, and consolidated political trust between the nations. Xi also encouraged Chad to leverage the FOCAC summit outcomes to enhance its independent development capacity. Furthermore, he expressed China’s readiness to collaborate on implementing the Global Security Initiative, aiming to safeguard stability and serve as a joint force for peace. (“China, Chad lift ties to strategic partnership,” CGTN, 03 September 2024)

CHINA & THE AMERICAS
Former New York Governor aide charged with being Chinese spy, reports The Guardian
On 04 September, The Guardian reported that a former official in the New York State Government had been charged with acting as a Chinese agent. The individual, Linda Sun was arrested from her home on the morning of 03 September, along with her husband Chris Hu. Sun held several posts in the New York government including Deputy Chief of Staff for the current Governor of New York, Kathy Hochul. The accusations against Sun by New York prosecutors include; blocking representatives of the Government of Taiwan from having access to the Governor’s office, trying to align New York governmental messaging with the priorities of the Government of the People’s Republic of China, and facilitating a trip to China for a high-level New York politician. It is alleged that Sun and her husband received several benefits in return such as tickets to performances by Chinese ballet and orchestra groups, and support for Hu’s China-based business activities; and laundered the financial proceeds to purchase luxuries for themselves such as a property in Long Island and luxury cars. Eight charges have been filed against Sun including money laundering conspiracy and a failure to register under the Foreign Agents Registration Act. Hu faces three charges of money-laundering conspiracy, conspiracy to commit bank fraud, and misuse of identification means.  United States Attorney Breon Pearce stated that Sun and Hu had worked towards advancing the interests of the Chinese government and the communist party. The Embassy of the People’s Republic of China in Washington D.C. made no comment. ( “ Ex-aide to New York governors charged with being agent of Chinese government,” The Guardian, 04 September 2024)

CHINA & THE AMERICAS
Chinese investment in EV and electricity sector in Brazil grows, reports SCMP
On 04 September, SCMP reported that investments by the Government of the People’s Republic of China in Brazil had substantially increased. According to a study by the non-profit organization Brazil-China Business Council (CBBC); Chinese investments in Brazil grew by 33 per cent in 2023, reaching 1.73 billion USD.  The electricity sector accounted for 39 per cent of the total investments, with investments worth 668 million USD. Renewable energy sources like wind, solar and hydropower garnered most of the investments. Chinese investments in the automotive sector also increased by 56 per cent in 2023, reaching 568 million USD. Chinese projects in the Brazilian automotive sector are focused on manufacturing electric vehicles (EVs), with companies like Great Wall Motors and BYD having expanded EV and hybrid vehicle production in Brazil. As per the CBBC study, 83 per cent of all projects and 90 per cent of the total investment volume in 2023 were greenfield investments; which involve the creation of new projects or expansion of existing projects. Research Director at CBBC, Tulio Cariello stated that this was a change from earlier; when China would enter the Brazilian market through acquisitions or mergers with already established Brazilian companies. However, the investments remain at historically low levels and are the second-lowest figure since 2009.  Cariello stated that the investment increase took place amidst a devaluation of the Brazilian currency, the real; and it was noted that China continued to exhibit “strategic caution” preferring low-risk projects over large-scale investments. However, the CBBC study also identified sectors like renewable energy, electromobility, and high-end manufacturing as ones with potential for future opportunities. It was also found that China invested 37 per cent more in Belt and Road Initiative (BRI) nations; meaning that the increased investments could help Brazil gain if it joins the BRI. ( Igor Patrick, “ Chinese investment in Brazil’s EV and electricity sector soars, says report,” South China Morning Post, 4 September 2024)

CHINA & EAST ASIA
China celebrates the 79^th anniversary of the victory against Japanese aggression
On 03 September, China marked the 79th anniversary of its victory over Japanese aggression and the end of World War II with various commemorative events across the country. In Beijing, a symposium reflected on the war’s hardships and the importance of peace. Shenyang’s 18th September Historical Museum shared heroic stories and planned to extend patriotic education to universities. Shanghai’s Songhu Memorial Hall held a solemn ceremony at Victory Square, featuring flower-laying and tributes to fallen heroes. The museum’s curator Kong Xiangjun, emphasised the importance of these events in promoting “the great spirit of resisting aggression” and inspiring younger generations. A student attendee in Shanghai expressed mixed emotions of solemnity and hope. Hong Kong also participated in an official ceremony at the City Hall Memorial Garden, including the national anthem and flag-raising. These nationwide activities aimed to honour history, remember sacrifices, and foster patriotism while underscoring the value of peace and national rejuvenation in modern China. (Yu Xi and Lu Ting, “China commemorates 79th anniversary of victory against Japanese aggression,” Global Times, 03 September 2024)
 
CHINA & SOUTHEAST ASIA
Former Philippine mayor arrested in Indonesia, accused of spying for China and money laundering
On 04 September, The Guardian reported that the controversial ex-mayor of Bamban town in the Philippines Alice Guo, was apprehended in Indonesia. She is wanted for skipping a Senate probe into her alleged criminal connections and is faced with multiple money laundering charges involving over 100 million pesos. Her arrest in Tangerang City follows her flight from the Philippines in July, travelling through Malaysia and Singapore. The investigation began after a March raid on a Bamban casino revealed suspected scams and human trafficking. Guo’s background has been questioned, with inconsistencies in her claims about her childhood and education. She maintains her innocence, asserting she’s a natural-born Filipino citizen-facing “malicious accusations.” However, the election commission found her fingerprints matched those of a Chinese national. The case has drawn significant attention, with one senator suggesting Guo could be a Chinese spy. Guo denies this, claiming to be the child of a Chinese man and a Filipina helper. Her lawyer reports she’s been traumatised by the hearings and social media reactions. (“Philippine fugitive mayor Alice Guo arrested in Indonesia, officials say,” The Guardian, 04 September 2024)
 
CHINA & EUROPE
Spanish PM Sanchez to visit China amid EU-China trade tensions
On 03 September, Spanish Prime Minister Alexis Sanchez is set to make an official visit to China from 08 to 11 September, at the invitation of Chinese Premier Li Qiang. This trip comes at a critical time, as China and Europe struggle with trade disputes, particularly concerning potential tariffs on Chinese electric vehicles. Sanchez’s itinerary includes attending the ninth Spain-China Forum, the first since 2015, and engaging with entrepreneurs in Beijing and Shanghai. This visit, following his last trip to China in March 2022, occurs as China actively seeks support from EU member states against the European Commission’s proposed temporary tariffs on Chinese-made electric cars. The timing of Sanchez’s visit underscores its potential significance in the context of ongoing EU-China trade relations. The Spanish leader’s meetings with Chinese officials and business leaders could play a role in shaping the discourse around these pressing economic issues. (“西班牙首相桑切斯将访华,” 参考消息, 03 September 2024)

CHINA & THE AMERICAS
US safety commissioners demand an investigation Shein and Temu, reports Reuters
On 04 September, Reuters reported that two leaders from the US Consumer Products Safety Commission (CPSC) requested an investigation into e-commerce retailers Shein from Singapore and Temu from China. The US CPSC Commissioners Peter Feldman and Douglas Dziak requested an investigation into how foreign retailers like Shein and Temu comply with CPSC rules, represent imported products, and handle relationships with third-party sellers. Shein and Temu import products into the US from China; and their usage of de minimis, a rule that exempts packages valued at 800 USD or less from tariffs if they are sent directly from shoppers is raising concern with the CPSC.  Last year, a bipartisan grouping of the US lawmakers had planned to introduce a bill to eliminate de minimis. De minimis has also been considered to be a reason for Shein and Temu’s success in the US, alongside low prices. However, there have been concerns over the quality of products sold by these retailers as well. ( Arriana McLymore, “ US safety commissioners call for investigation into Shein, Temu,” Reuters, 04 September 2024)
 
Xinjiang legislation pledge to support local firms affected by US sanctions, reports SCMP
On 03 September, the South China Morning Post reported that Xinjiang’s regional legislature had taken a bold stance against US sanctions by pledging increased support for affected enterprises. Effective 04 September, the resolution calls for immediate action to aid sanctioned businesses, denouncing the US measures as baseless. It urges legal support for companies seeking compensation and promotes their expansion in domestic and international markets. The US Uyghur Forced Labor Prevention Act, enacted in 2021, has led to sanctions on numerous Xinjiang firms over alleged human rights abuses and forced labour, claims Beijing denies. The US Homeland Security Department’s Robert Silvers noted an acceleration in additions to the entity list, with over 30 Chinese companies sanctioned this year alone. The resolution describes the US actions as “political manipulation and economic bullying.” It also encourages officials to become “voluntary advocates” for sanctioned companies. (Meredith Chen, “China’s Xinjiang vows to increase support for firms under US ‘forced labour’ sanctions,” South China Morning Post, 03 September 2024)

China Reader Daily Wire | 03 September 2024, Tuesday | Vol.1 No. 162
CHINA & SOUTH ASIA
FOCAC provides a guide for India’s relations with Africa, says an op-ed in The Hindu
On 03 September, an op-ed in The Hindu stated that the China-Africa Forum meeting could provide a guide for India in its dealings with Africa. The op-ed noted how at the ninth edition of the Forum on China-Africa Cooperation (FOCAC), there was still a lack of strategies on the African side vis-à-vis how to set the agenda and take greater ownership of their strategic thinking. According to the op-ed, African governments have been unable to take advantage of the expertise of the Government of the People’s Republic of China; and African negotiators are on the back foot against an agenda driven by Beijing. The op-ed cites data from 2022 by AidData showing that half of Chinese loans to Sub-Saharan Africa are not disclosed in sovereign debt records, complicating estimations of debt levels. The op-ed author also gives the opinion that China is more likely to write off small interest-free loans, rather than outright debt cancellation. It is pointed out how the Indian model and way of doing business have comparative advantages in sectors like human resource development and agriculture. The op-ed lists four key lessons India can learn from China’s engagement with Africa. It first states that India must emphasize continuity in its engagements with Africa; by holding the India-Africa Forum Summit which was last held in 2015. According to the op-ed, an India-Africa Track 1.5 Dialogue could also be set up. The op-ed next states that Indian companies must seek higher value-added investments in African sectors like pharmaceuticals to set up manufacturing bases that will create employment and serve markets. Another point put forth in the op-ed is that the Indian private sector must be involved in Africa; and utilize innovative financing solutions like public-private partnerships and blended finance. The op-ed states that Indian strategic and business interests in Africa must be combined with low-cost credit support from the Government of India for Indian banks and entrepreneurs. The op-ed concludes by stating that India must use its digital technologies such as biometrics and Jan Dhan to foster greater digital and physical connectivity in Africa. It argues that currency-neutral transactions are in the best interest of India and Africa. The op-ed states that gauging the behavior of African leaders with China under FOCAC holds valuable lessons for India. ( Abhishek Mishra, “Dealings at a China-Africa forum that India must track,” The Hindu, 03 September 2024)

CHINA & AMERICAS
China to conduct anti-discrimination investigation against to Canadian tariffs, reports CGTN
On 03 September, CGTN reported that China announced it would launch anti-discrimination and anti-dumping investigations into Canadian imports. This was in response to Canada’s recent 100 per cent tariff on Chinese-made electric vehicles (EVs) and a 25 per cent duty on Chinese steel and aluminium. The Chinese Ministry of Commerce expressed strong dissatisfaction with Canada’s “discriminatory unilateral restrictions,” and plans to challenge these actions through the World Trade Organization (WTO). China will investigate the potential dumping of Canadian rapeseed and related chemical products, citing a 170 per cent increase in Canadian rapeseed exports to China in 2023, which reached USD 3.47 billion while prices fell. The Ministry noted that this surge has negatively impacted China’s domestic industries, leading to continuous losses. A spokesperson emphasised that China will proceed with the investigations “by domestic laws and regulations and in line with WTO rules.” (“China announces probes over Canada's tariff hike, certain products,” CGTN, 03 September 2024)
 
KOREA READER
South Korea-US joint underwater excavation project kicks off in Busan, reports The Korea Times
On 03 September, The Korea Times reported on the Ministry of Defence statement, which said: “Korea and the United States kicked off a joint underwater excavation project in waters off the southeastern port city of Busan to search for the remains of American soldiers killed during the 1950-53 Korean War.” According to the ministry, nearly twenty-two personnel from the ministry's KIA Recovery & Identification and the US Defence Accounting Agency (DPAA) were deployed in an area of around 12 square kilometers. Additionally, three American service members were supposed to be killed in January 1953, when a US bomber aircraft crashed into the sea after takeoff from the K-9 air base. After signing an agreement for joint war remains excavations in 2011, both sides have repeatedly conducted joint searches for the remains of missing Americans.  According to data from the UN Command, approximately 1.7 million US troops served in the Korean operations command during the Korean War, with more than 36,000 killed and according to the Defence Acquisition Program Administration7,500 Americans have been missing. (“Defence Acquisition Program Administration,” The Korea Times, 03 September 2024)

INTERNAL
Mitigation hearings end in Hong Kong national security case against subverting state power, reports Reuters
On 03 September, Reuters reported that 45 pro-democracy activists in Hong Kong entered their final pleas for their light sentences, in a national security trial. Hing Kong’s Judge of the Court of First Instance of the High Court, Andrew Chang informed that the sentencing would be announced at a later date. The activists were arrested and charged in 2021 for participating in an unofficial poll to choose pro-democracy candidates; and face charges of “a conspiracy to subvert the state power.” They are accused of planning to indiscriminately veto the budget if they gained a legislative majority through candidates chosen in the unofficial poll. The 45 activists began mitigation hearings to try and reduce their sentences in six batches and hearings in June; with the last batch beginning on 2 September. One of the activists, Gwyneth Ho risked a harsher sentence by stating she had no mitigation to enter; while another activist facing charges Owen Chow wrote in his mitigation letter that he had faith a democratically elected government would arrive in Hong Kong one day. The activist Ventus Lau stated his key objective was to “advocate for the protestors who were arrested for rioting”. One of the prosecution witnesses, Mike Lam took a different stance; writing in his mitigation letter that “he had been influenced by the overseas power or sensationalism of the online media.” However, Lam’s request for community service was rejected by the judges, who questioned the validity of his claims. Judge of the Court of First Instance of the High Court, Johnny Chan described Lam’s request as “unreasonable.” ( Jessie Pang, “‘Hong Kong 47’: Court wraps up mitigation hearing in city’s largest national security case,” Reuters, 03 September 2024)
 
EXTERNAL
China spends more on-chip tools than South Korea, Taiwan and the US, reports Nikkei Asia
On 02 September, Nikkei Asia reported that China had bought more chip tools and equipment in the first half of 2024 than South Korea, Taiwan, and the United States combined. Data from the global semiconductor industry association SEMI showed that China, which is the world’s biggest semiconductor equipment market; spent a record 25 billion USD on-chip tools in the first six months of 2024. This comes amidst a push by the Government of the People’s Republic of China to localize chip supplies, reducing the risk of Western export restrictions. China could be on track for a full-year record on semiconductor spending. ( Cheng Ting-Fang and Lauly Li, “China buys more chip tools than South Korea, Taiwan, U.S. combined,” Nikkei Asia, 02 September 2024)
 
Bangladesh political party Jamaat chief wants balanced relations with China, reports Business Today
On 28 August, Business Today reported that the chief of the political party Bangladesh Jamaat-e-Islami, Shafiqur Rahman had stated that his party wanted stable ties with China. In an interview, Rahman informed that his party sought “balanced and stable ties” with global powers like China and the US, in an increasingly globalized and interconnected world. The Jamaat chief also stated that his party was not against India; and hoped India would be “a friend and play a responsible role in bilateral ties.” However, Rahman also stated that there must be a policy of non-interference in internal affairs. According to Rahman, the Jamaat wants “an equal and balanced relationship” with all the countries of South Asia; since the balance is crucial to stability. (“ ’New Delhi mustn’t interfere: Jamaat-e-Islami chief says Bangladesh wants strong relations with US, China, Pakistan,” Business Today, 28 August 2024)
 
CHINA & THE PACIFIC
New Zealand Secret Intelligence Service report shows China remains intelligence concern, reports SCMP
On 03 September, SCMP reported that a New Zealand intelligence report had deemed China as an intelligence concern. The annual report by the New Zealand Secret Intelligence Service into New Zealand’s threat environment found that China was “a complex intelligence concern;” and that a few illiberal foreign states were engaging in foreign interference against New Zealand to advance their interests. The report, titled “New Zealand’s Security Threat Environment” stated that what was once defined as strategic competition in the Indo-Pacific region between China and New Zealand and its partners; was now one with several different centres of power and influence like India and Southeast Asia. According to the report, New Zealand was not alone in facing the threat of foreign interference; which was a global challenge since illiberal states were taking advantage of openness. It was also noted in the report that drawing conclusive links between the interference activity and the foreign state is a challenge. Director-General of the New Zealand Secret Intelligence Service, Andrew Hampton informed that the assessment was not to alarm anyone. He stated that they were being upfront about the national security threat. ( “‘China remains complex intelligence concern’: New Zealand threat report,” South China Morning Post, 3 September 2024)

CHINA & AFRICA
China and Africa forge stronger ties at the 2024 FOCAC Summit, says an editorial in Global Times 
On 03 September, an editorial in Global Times reported that Chinese President Xi Jinping kicked off bilateral meetings with African leaders before Beijing’s 2024 Forum on China-Africa Cooperation (FOCAC) Summit. The “Joining Hands to Advance Modernization and Build a High-Level China-Africa Community with a Shared Future” summit aims to strengthen ties between China and African nations like South Africa, Guinea, Eritrea, Seychelles, Djibouti, Togo, Comoros, Mali, and the Democratic Republic of the Congo (DRC). Xi emphasised China’s commitment to opening its doors wider to African countries and promoting high-quality cooperation. The partnership between China and Africa is seen as mutually beneficial, with both sides sharing historical experiences and development goals. Unlike Western powers, China follows a “five-no” approach, respecting African countries’ autonomy. Experts highlight China’s role in supporting Africa's modernisation and industrialisation efforts. The executive director of the Southern African Research and Documentation Center Munetsi Madakufamba, noted that China-Africa cooperation represents a win-win partnership. The summit is expected to announce new measures for advancing modernisation and draw a blueprint for future China-Africa relations, potentially setting an example for global South cooperation. (Yang Sheng, Zhao Yusha, and Liu Caiyu, “Xi meets with African leaders attending FOCAC summit,” Global Times, 03 September 2024)
 
China’s satellite TV initiative in Africa near completion, says an editorial in BBC
On 03 September, an editorial in BBC reported that China’s “10,000 Villages Project,” aimed at providing digital TV access to over 10,000 remote villages across 23 African countries is nearing completion. There are over 9,600 villages now equipped with satellite infrastructure. The initiative, implemented by the private Chinese company StarTimes was seen as a gesture of goodwill and an opportunity for China to strengthen its soft power in Africa. Some villagers, like Nicholas Nguku from Kenya, initially celebrated access to global events like the Olympics. However, enthusiasm has waned due to unexpected subscription costs after a brief free trial. One villager noted: “It makes no difference if no one is using it.” Despite its initial impact, the project has not significantly increased China’s image as anticipated, with many villagers prioritising local news and content over Chinese offerings. (Shawn Yuan, “China's mission to win African hearts with satellite TV,” BBC, 03 September 2024)
 
CHINA & EUROPE
EU plans to impose five-year import duties on Chinese EVs, says an opinion in SCMP
On 03 September, the South China Morning Post reported that the European Commission plans to impose definitive five-year import duties of up to 36 per cent on Chinese electric vehicles (EVs). China has retaliated by launching investigations into European dairy subsidies and considering higher tariffs on EU fuel-powered cars. This escalating trade tension has led EU’s top diplomat, Josep Borrell, to warn of a possible trade war, though dialogue remains ongoing. The dispute, centred on subsidies, reflects broader concerns about fairness in global trade, with the EU, the US, and China all heavily subsidising green industries. Experts argue that instead of pursuing a zero-sum bilateral solution, the EU and China should address their differences within the World Trade Organization (WTO). By doing so, they could help update outdated WTO rules on subsidies, creating a more collaborative and balanced trade environment. The EU and China have a responsibility to seek multilateral resolutions by setting a precedent for handling similar disputes in the future. (“How China and Europe can best settle their EV tariff disputes,” South China Morning Post, 03 September 2024)

Xinjiang Regional People’s Congress condemns US sanctions as economic bullying
On 02 September, a new resolution passed by the Xinjiang Regional People’s Congress opposes US sanctions on companies in Xinjiang, labelling them as “political manipulation and economic bullying” under the guise of human rights protection. The sanctions, based on accusations of “forced labor,” target key industries like textiles and silicon-based solar products, harming Xinjiang’s economic development and the livelihood of its people. A deputy to the regional congress, Anwar Abdullah, criticised the US for trying to prevent Xinjiang’s growth and said: “Through sanctions, people in Xinjiang lose their right to development.” The resolution calls for the US to halt these unwarranted sanctions and restore a fair market environment. It also urges local governments and judicial authorities to support affected companies in expanding markets, boosting innovation, and protecting their legal rights. The head of a sanctioned silicon manufacturer Cheng Yufeng, acknowledged the challenges but expressed optimism. She noted: “With broad support our enterprise will have more room for development.” (“Xinjiang resolution combating U.S. sanctions takes effect,” People’s Daily, 03 September 2024)

China Reader Daily Wire | 02 September 2024, Monday  | Vol.1 No. 161
CHINA & AFRICA
China and Africa’s flourishing partnership, says an opinion in China Daily
On 31 August, an opinion piece in the China Daily looked into the growing closeness between China and Africa and how this relationship has flourished despite geographical distance. The author noted that China’s and Africa’s connection goes beyond economics. It is rooted in mutual respect and shared experiences. China’s Belt and Road Initiative (BRI) and substantial investments have made it Africa’s top trading partner, with trade volume reaching USD 282.1 billion in 2023. The author stated that, unlike Western initiatives, China’s projects are visible across Africa, from the African Union headquarters to critical infrastructure. The bond is strengthened by a history of mutual support, dating back to China’s backing of African independence movements. Kenyan President William Ruto noted: “It is not intelligent for 54 of us to go and sit before one gentleman from another place.” This highlights the contrast with Western approaches. China’s rapid modernization has inspired African nations to seek alternative development paths. Their shared interests in addressing global inequality have led to cooperation in international forums. Mo Ibrahim said: “We are not a shithole. We are decent people like everybody else.” This sentiment underscores the depth of China-Africa relations, built on equality, respect, and common aspirations. (Vox South, “Why is Africa so close to China?” China Daily, 31 August 2024)

China-Africa space cooperation beneficial across the continent, reports CGTN
On 01 September, CGTN reported that space cooperation between China and Africa was increasing, leading to achievements in fields like satellite exports and space infrastructure development. The Government of the People’s Republic of China has developed and launched satellites for several countries such as Egypt and Nigeria, and the Forum on China-Africa Cooperation (FOCAC) Dakar Action Plan stated that China and Africa would actively work for the establishment of a China-Africa space cooperation sub-forum under the FOCAC framework. The commitment of both sides to support projects concerning satellite remote sensing and communication satellites has resulted in the development of several network satellites and ground stations across Africa. This includes the BeiDou Navigation Satellite System (BDS) used in Africa’s agriculture, urban planning, infrastructure construction, and traffic services. Similarly, a hospital in Burkina Faso used BDS high-precision services for construction surveying and mapping, completing the survey in six days. The Chinese government is also attempting to empower young African talent, conducting a training session with young technical and management professionals from African countries on topics like communication technology and satellite internet.  A live class titled “Talk with Taikonauts” was held at the African Union headquarters in 2022 wherein three Chinese taikonauts shared their space experiences with African youth, promoting their space knowledge. According to the Mission of China to the African Union, the Chinese government has also awarded scholarships to graduate students from eight African countries to study fields such as remote sensing and geographic communication systems, satellite communication, and navigation. The Chinese government has also carried out space science and technology innovation cooperation and exchange activities with African universities and research institutes. (“ China-Africa space cooperation benefits people across the continent,” CGTN, 1 September 2024)

ECONOMY
China to push for new industrialization at a faster pace, says China’s Minister of Industry and Information Technology
On 02 September, CGTN reported that China’s Minister of Industry and Information Technology Jin Zhuanglong has outlined the country’s strategic push to promote new industrialisation at a faster pace. This will provide a solid support for its modernisation efforts. At the core of this plan is the accelerated development of a modern industrial system with advanced manufacturing as the backbone. This also includes deeper integration between the real economy and the digital economy. The minister emphasised the urgency of improving the resilience and safety of industrial and supply chains, particularly in key areas like integrated circuits and medical equipment. China has already cultivated 12,000 “little giant” firms, novel elites of small and medium-sized enterprises (SMEs) specializing in manufacturing and cutting-edge technologies. The ministry’s focus on supporting the digital transformation and healthy growth of these firms underscores the country’s commitment to empowering its industrial backbone. China aims to cement its position as a global industrial powerhouse with ambitions to harness new growth engines like bio-manufacturing, commercial aerospace, and 6G. (“China to accelerate the promotion of new industrialization, says minister,” CGTN, 02 September 2024)

EXTERNAL
Chinese loans left a string of debts, says an opinion in The New York Times
On 31 August, an opinion in the New York Times titled “The China Hangover Is Here,” looked into how Former President of Venezuela Hugo Chávez staked his country’s economic future on China, through investments and loans-for-oil deals. Initially, the attempt paid off but later China ravenously consumed Venezuelan oil and financed infrastructure projects such as high-speed railways and power plants. Oil growth declined in 2010 in China subsequently decreasing the oil demand, Venezuela’s oil export revenues fell, to USD 22 billion in 2016 from more than USD 73 billion in 2011. Approximately eight million people fled the country during Venezuela’s economic collapse in 2014. China side-lined it with Venezuela by cutting off new credit and loans, the over-dependence on the Chinese was also ignored by other superpower states. Other countries are now in financial distress as the Chinese economy stagnates but China refuses to offer meaningful foreign debt relief and is doubling down at home on its protectionist trade practices rather than reforms to free up and restart its economy. After the 2008 global financial crisis, China became the economic saviour by providing USD 29 trillion into its economy, about one-third of the global GDP. From 2008 to 2021 China accounted for more than 40 per cent of global growth. China became the top trading partner for most of the world’s nations and all developing countries eagerly joined China’s rapid economic growth.  Like Venezuela, many countries understood that the booming Chinese economy was profitable and leaned heavily, allowing other sectors of their economies to weaken. The International Monetary Fund and the World Bank have warned that dozens of countries across the developing world of debt distress. Pakistan is stalled in a deep economic crisis because of the need to pay back billions of dollars in loans to China for infrastructure and other projects. In Laos, around half of the nation’s foreign debt is owed to China, for projects like the China-Laos high-speed rail line which has been widely panned as a white elephant. The heavy debt has hammered Laos’s currency, making it more difficult for the country to service its debt and forcing it to surrender some of its economic sovereignty as repayment, including China taking ownership of stakes in Laos's power grid. The United Nations said: “China, now by far the world’s largest sovereign lender, has played a leading role in saddling many countries with levels of debt, often through nontransparent arrangements, that are comparable with those seen in the 1980s. The situation is becoming perilous noted the op-ed. Over the past decade, during which China doled out more lending than the Paris Club — a grouping of 22 of the world’s largest creditor nations — the total value of interest payments of the 75 poorest countries in the world have quadrupled and will outstrip their total annual spending on health, education and infrastructure combined, according to the World Bank. An estimated 3.3 billion people live in countries where interest payments exceed investments in either education or health.” Additionally, the alarm is raised for wealthy economies and creditor nations to collaborate to provide debt relief, market access, and other ways to help fragile economies. (“The China Hangover Is Here,” the New York Times, 02 September 2024)
 
INTERNAL
China’s educated youth struggle for employment, says an editorial in Reuters
On 02 September, an editorial in Reuters reported that 32-year-old He Ajun has found a new calling as an “unemployment influencer” after leaving the education industry last year due to China’s crackdown on private tutoring. She offers career advice to her 8,400 followers and shares her journey through long-term joblessness. China’s record 11.79 million university graduates this year face unprecedented job scarcity. Analysts say that the urban youth unemployment spiked to 17.1 per cent in July which masks millions of rural unemployed. Redundancies have even spread to government work, with Henan province trimming 5,600 jobs and Shandong province cutting nearly 10,000 positions since 2022. A Chinese economist noted: “Although they cannot be called a 'lost generation', it is a huge waste of human capital.” With the general impression that “the current environment isn't good and fiscal pressure is high,” young Chinese are turning to social media to share tips for surviving long-term unemployment. An influencer advised the graduates to “lower their ambitions” and “accumulate skills or do something creative” in this economic climate. (Laurie Chen, “New unproductive forces: the Chinese youth owning their unemployment,” Reuters, 02 September 2024)

ECONOMY
China pushes for mortgage refinancing, reports Bloomberg
On 30 August, Bloomberg reported that China is considering to allow homeowners to refinance up to USD 5.4 trillion in mortgages to lower borrowing costs for millions of families. This plan would enable existing homeowners to renegotiate terms with their current lenders or refinance with a different bank. Authorities are putting efforts to reduce mortgage costs, which could potentially save homeowners around 300 billion yuan (USD 42 billion) through a maximum 1 percentage point cut in rates, according to estimates. While the move would squeeze banks’ net interest margins, experts believe the impact would be “manageable”. The refinancing plan is seen as a market-oriented approach that could indirectly support the real estate sector and boost overall consumption. (“China Considers Allowing Refinancing on $5.4 Trillion in Mortgages,” Bloomberg, 30 August 2024)
 
China’s real estate faces deepening slump, reports Business Standard
On 01 September, Business Standard reported that China’s residential real estate market continued to face a slump. The value of new-home sales from the 100 biggest real estate companies plunged nearly 27 per cent year-over-year in August. This is a faster decline than the 19.7 per cent drop in July. The real estate crisis, now in its fourth year, has weighed heavily on China’s economy. This has necessitated more stimulus to meet the government’s 5 per cent growth target this year. China is considering a new funding option for local governments to buy unsold homes which reached 382 million square metres. Country Garden Holdings is considering extending payments on some of its yuan bonds, highlighting the industry’s dire situation. (“China home sales slump continues despite government's rescue efforts,” Business Standard, 01 September 2024)
 
ENERGY & ENVIRONMENT
China reports that the South China Sea’s coral reefs are healthy, says an editorial in Global Times
On 30 August, an editorial in the Global Times reported that a recent on-site investigation by Chinese scientists refuting the Philippines’ allegations of widespread coral bleaching around Xianbin Jiao in the South China Sea. The investigation by the Chinese Scientists found that the coral reef ecosystem is generally in good health. The report found no evidence of terrestrial materials entering the ocean, contradicting the Philippines’ accusations of China’s land reclamation activities damaging the reefs. Importantly, the discovery of six sandbars in Xianbin Jiao, all exposed at low tide, supports China’s longstanding assertion that the area falls under its territorial waters and exclusive economic zones. Experts stressed that the 2016 South China Sea arbitration’s classification of Xianbin Jiao as a “low-tide feature” was based on flimsy evidence, and the recent scientific research provides “ample and precise evidence” to support China’s claims. The report also highlighted the disruptive impact of the Philippines Coast Guard vessel’s anchoring and fishing activities on the coral reefs. (Hu Yuwei and Fan Wei, “China releases investigative report on coral ecological system in Xianbin Jiao,” Global Times, 30 August 2024)

CHINA & EAST ASIA
Several contenders compete for Japan PM post after Kishida departure, says an opinion in East Asia Forum
On 02 September, an op-ed in the East Asia Forum informed that several candidates were attempting to become the Prime Minister of Japan after the decision of the incumbent PM Fumio Kishida to step down. According to the op-ed, while the longest-serving Japanese PM Shinzo Abe is remembered as a pragmatist, Kishida is likely to be remembered as a compromiser. The op-ed argues that it was never made clear to the Japanese public what Kishida stood for, beyond being in power. Lead articles by East Asia Forum columnists Ryo Sahasi and Ben Ascione point out that Kishida’s New Capitalism plan failed due to opposition from conservative factions within the Liberal Democratic Party (LDP), and his excessive cooperation with the conservative factions in the LDP disappointed the centrists. According to Sahasi and Ascione, Kishida’s achievements were at the international level, through strengthening relationships with the US and South Korea, committing towards increasing defence spending, and successfully hosting the G7 summit in 2023. An argument put forth in the op-ed is that Kishida’s successor will be able to survive in power only by improving the economy and pushing forth reforms. The op-ed states that difficult reforms that both Kishida and Abe shied away from are required to resolve Japan’s problems such as declining fertility rates, a shrinking and ageing population, huge public debt, and a stagnant economy. According to the op-ed, the leadership needs to break through vested interests present in both the LDP and within Japanese society to reform Japanese institutions, with success in developing political capital. The op-ed concludes by stating that whichever of the twelve candidates becomes PM will want to focus on pragmatism and conviction over compromise, to fix the economy. (“Kishida’s departure as Japan’s prime minister leaves an open field,” East Asia Forum, 2 September 2024)

CHINA & SOUTH ASIA
China-Nepal relationship runs into difficulties over BRI and boundary issues, says an opinion in the East Asia Forum
On 31 August, the East Asia Forum reported that the relationship between the Government of the People’s Republic of China and the Government of the Republic of Nepal was encountering challenges. The attempt to build the comprehensive partnership between the two nations into a strategic partnership as outlined by the President of China, Xi Jinping rested on two pillars the Belt and Road Initiative (BRI) and the Boundary Management System (BMS). The BMS proposed by Xi committed both nations to return individuals crossing the border illegally, but the Nepalese government has yet to ratify the agreement. Similarly, the Nepalese government has failed to implement BRI projects. Meetings conducted between the Chinese and Nepalese governments in June 2024 also failed to reach a consensus due to disagreements over the BMS and the BRI. The Chinese government is eager for a BMS due to the need for a comprehensive security mechanism at the border, to protect the political stability of Tibet. However, the Nepalese government has urged Beijing to follow the BMS mandates which require both sides to engage in border investigation, then meet and resolve border issues, and finally ratify the BMS. On 26 June 2024, after the 16^th meeting of the Nepal-China Diplomatic Consultation Mechanism was held, a joint statement was not released and the Nepalese press release did not mention the BRI at all, showing disagreements over the BRI remain.  The Nepalese government is wary of being caught in unsustainable debts towards China as a result of BRI, as happened with nations like Sri Lanka, with Nepalese lawmakers also having expressed concern over the lack of transparency in BRI projects. China’s reluctance to provide grants and Nepal’s need to maintain a strategic balance with India have also proven to be stumbling blocks for the Nepal-China relationship. The BRI and the BMS are driving China’s interest in Nepal, but the lack of a consensus on these two issues has prevented the creation of a strategic partnership between China and Nepal. The formation of a new government in Nepal consisting of the Nepali Congress opposed to BRI loans, is expected to further complicate the situation. ( Dolma Tsering, “China-Nepal strategic partnership stumbles over BRI and boundary issues,” East Asia Forum, 31 August 2024)

CHINA & SOUTHEAST ASIA
Row after China-Philippines ships collide, reports BBC News
On 31 August, BBC News reported that the Government of the People’s Republic of China and the Government of the Philippines had accused each other of deliberately ramming coast guard vessels in the South China Sea region. The collision occurred on the Sabina Shoal Island claimed by both countries where incidents have escalated in the past few weeks. The China Coast Guard released a statement, calling on the Philippines to withdraw from Sabina Shoal while promising to combat all provocative acts constituting infringement. However, the Philippine Coast Guard informed that it would not remove its vessel- the Teresa Magbanua, despite harassment, bullying, and intimidation by China. Philippine Coast Guard Commodore Jay Tarriela stated that the vessel had sustained some damage during the collision, while the US Ambassador to the Philippines Mary Kay L Carlson condemned the “multiple dangerous violations of international law” by China in a post on social media platform X.  Carlson also reaffirmed the US’s support for the Philippines, which comes amidst fears of a larger confrontation in the South China Sea. However, last month, in an attempt to de-escalate tensions, both China and the Philippines agreed to restock the outpost on Second Thomas Shoal island with food, supplies, and personnel. ( Dearbail Jordan, “ China and Philippines trade blame as ships collide,” BBC News, 31 August 2024)
 
CHINA & THE MIDDLE EAST
Saudi Arabia looks for Chinese technology to become innovation hub, reports SCMP
On 01 September, SCMP reported that the Government of the Kingdom of Saudi Arabia was looking to build greater cooperation with Chinese companies in the car and automation sectors. The Minister of Industry and Mineral Resources in Saudi Arabia, Bandar Alkhorayef is leading a delegation to visit the Chinese city of Guangzhou, Singapore, and Hong Kong from 8 September, aiming to improve relations and joint venture opportunities. Saudi Arabia is attempting to diversify its economy and emerge as an industrial hub, while Chinese companies are seeking an attractive overseas market amidst pressure from the US, leading to both China and Saudi Arabia seeking mutual gains through their partnership. China is Saudi Arabia’s biggest trading partner with trade exceeding 100 billion USD in 2023, while Chinese investment in Saudi Arabia included 5.6 billion USD in original equipment manufacturing for the automotive industry. Official data from the Government of the People’s Republic of China also showed that the total value of goods exports to Saudi Arabia from January to July was 27.55 billion USD, an increase of 12 per cent from the same period last year.  Alkhorayef’s office stated that the visit aligns with the Saudi government’s objectives of becoming a key automative hub in the Middle East and a leader in innovative and eco-friendly relations. According to the statement, discussions are expected to be held with Electric Vehicle(EV) manufacturer GAC Group, tech giant Huawei, and lithium battery producer  General Lithium. The statement added that talks with Huawei would discuss collaborating for smart solutions and leveraging technologies in the “Fourth Industrial Revolution”,  which involves advancements in artificial intelligence and robotics. As per the statement, Saudi Arabia aims to attract investments in 12 industrial sectors, and “the visit is expected to result in partnerships on mutual growth through high-quality investments, sustainable development, and economic diversification, particularly in strategic industrial sectors.” ( Kandy Wong, “Saudi Arabia seeks Chinese tech as it reinvents itself as car and automation hub,” South China Morning Post, 01 September 2024)

CHINA & EUROPE
China requests fairness from EU on South China Sea dispute, reports Reuters
On 02 September, Reuters reported that the Government of the People’s Republic of China had urged the European Union (EU) to be “objective and fair” with its statements on actions in the South China Sea.  China’s response came after a statement by the EU condemning Chinese actions against Philippine operations in the South China Sea, and stating that they violated the right to freedom of navigation. The Chinese Mission to the European Union stated that the EU was not involved in the South China Sea issue “and has no right to point fingers.”  The Chinese Mission informed that it was “strongly dissatisfied” with the EU’s “accusations” and stated that the EU’s “repeated hyping up” on the freedom of navigation issue “has no benefits to the EU’s interests and international credibility.” ( China urges EU to be ‘objective and fair’ on South China Sea issue, Reuters, 02 September 2024)

CHINA & THE AMERICAS
Tim Walz’s experience with China is not a liability but an asset for the US, says an opinion in WSP
On 08 August, an op-ed published in The Washington Post argued that the experience and knowledge of the vice-presidential candidate for the Democratic Party, Tim Walz vis-à-vis China should be seen as an asset and not a liability. The op-ed begins by looking at the beginning of Walz’s relationship with China with his experience as a teacher in the country amidst the Tiananmen Square protests being repressed. It is noted how Walz came to adopt a nuanced position on China, criticizing its autocratic leadership while still working to engage with the Chinese people; and admitted that his earlier position that engaging China economically would lead to political liberalization was naïve. The op-ed mentions how Walz himself described his position as neither a “dragon slayer” nor a “panda hugger.” It points out how Walz has a record of standing up for human rights against the Government of the People’s Republic of China, despite accusations by right-wing conservatives in the US that he is soft on China. Examples of his commitment are cited in the op-ed, such as Walz joining the Congressional-Executive Commission on China (CECC) which is focused on human rights, his criticism of the Chinese government for its cultural genocide in Tibet and Xinjiang, a visit to Tibet, criticizing political repression in Tibet and supporting Tibetan political prisoners, meeting with the Dalai Lama. The op-ed also points out Walz supported the Hong Kong democracy movement, forming a close relationship with student leaders like Joshua Wong and co-sponsoring the Hong Kong Human Rights and Democracy Act in 2017.  The op-ed provides examples of support for Walz such as from an activist in Hong Kong, Jeffrey Ngo who stated that Walz was probably “the most solid candidate on human rights and China on a major party ticket in recent memory;” and from a Democratic Party senator who served on the CECC with Walz, Jeff Merkley who informed that Walz’s selection as vice-president shows that an administration with Kamala Harris as president and Walz as vice-president would prioritize human rights in a relationship with China. According to the op-ed, Walz’s position on engaging with Chinese people and the Chinese economy while critiquing the Chinese government on human rights should not be a controversial stance. However, it also raises the question of how Walz can adapt this thinking towards a US Government focused on national security if he becomes vice-president. The President of the Jamestown Foundation, Peter Mattis, stated that Walz would have to consider China as a global rival harming US interests and values. Nevertheless, the op-ed concludes by stating that Walz’s experience, knowledge, and commitment to the US-China relationship must be seen as an asset for both his campaign and the US. ( Josh Rogin, “Walz’s decades of China experience are an asset, not a liability,” The Washington Post, 08 August 2024)