CHINA READER DAILY WIRE

Photo : CGTN

China International Import Expo 2024 attracted 3,496 exhibitors from 129 countries

China Reader | 07 November 2024, Thursday | Vol.1 No. 206
ECONOMY
China International Import Expo 2024 attracted 3,496 exhibitors from 129 countries
On 06 November, CGTN reported that the seventh China International Import Expo demonstrates the country’s growing economic influence. The Expo attracted 3,496 exhibitors from 129 countries, including 297 Fortune Global 500 companies. A CGTN survey stated that there is a strong global confidence in China’s openness to the market with 60 per cent of the attendees affirming the same. The level of approval was particularly high in Africa at 86.6 per cent, the Middle East at 88.2 per cent, and Southeast Asia at 78.6 per cent. More than the figures, the exhibition impact has gone on to facilitate smaller nations to access the world market as it has presented 120 free booths to 37 least-developed countries, notes CGTN. China’s economic growth has stood the test by recording quarterly imports and exports at more than RMB 10 trillion for the first three quarters of 2024. The survey proved international acceptance, with 92.3 per cent of the respondents deeming China’s economic power, while at the same time, 89.2 per cent acknowledged its recent input into the world economy. 84.3 per cent believe the world needs China for stable global supply chains. (“CGTN Poll | "Import Expo benefits" keep growing, global respondents look forward to "big market" bringing "big opportunities"” CGTN, 06 November 2024)

China-ADB partnership to focus on strengthening regional development and green initiatives
On 06 November, during a meeting in Kunming with Asian Development Bank (ADB) President Masatsugu Asakawa, Chinese Premier Li Qiang emphasised expanding bilateral cooperation in numerous fields. The partnership focuses on environmental protection, green development, healthcare, and new industries. China, which is the largest developing nation, will look to share the role-modelled poverty reduction and digital economies that could be achieved through the ADB platform. Asakawa emphasised the point that China’s economic stability is the key to the recovery of the Asia-Pacific region and promised to support the high-quality development of China. The partnership deals with climate change, ecological diversity, and energy transition with the promotion of free trade. This meeting during the eighth Greater Mekong Subregion Summit affirms China’s commitment to regional prosperity and participation in Greater Mekong Subregion economic cooperation. (“Chinese premier expects China, ADB to boost cooperation,” CGTN, 06 November 2024)

SCIENCE & TECHNOLOGY
Alibaba Cloud completes largest data migration in history from Xiaohongshu lifestyle app 
On 07 November, South China Morning Post reported that Alibaba Cloud became the world’s first cloud service provider to finish the largest data migration in history by shifting the 500-petabyte data lake from Xiaohongshu to its servers. The process took one year and 1,500 staff members to show Alibaba’s stronghold in the Chinese cloud sector which is seen as the country’s leading provider of clouds with a market share of 36 per cent. This scale is huge as each petabyte can hold approximately 11,000 4K movies which if played continuously, would take over two and half years to view. This migration represents the entire 11-year operational data history of Xiaohongshu, supporting 300 million monthly active users. Alibaba Cloud has already suffered outages in 2022 and 2023 affecting Hong Kong and Macau services. However, a successful migration has ensured it remains at the top of Asia Pacific’s cloud providers and now stands at third position in the world on revenue. (Ben Jiang, “Alibaba Cloud notches big with ‘China’s Instagram’ completing largest data migration,” South China Morning Post, 07 November 2024)

ENERGY & ENVIRONMENT
China’s annual Climate Action Report 2024 outlines new climate change initiatives 
On 06 November, China’s Ministry of Ecology and Environment published an annual climate action report. This is the eleventh annual report since 2008 start and adds to China’s global reputation for advancement in environmental protection activities and its initiatives at the COP29. MEE Official Xia Yingxian stated that the country remains committed to reforming its industrial and energy structure but on the other hand, is developing multilateral cooperation. Among its climate partnerships is with 42 developing nations through 53 memorandums of understanding, low-carbon demonstration zones, and exchange seminars. China visited Baku in November this year during COP29 in pursuit of actualising objectives of the UN Framework Convention and the principles of the Paris Agreement as a witness to commitment and dedication to global climate governance through South-South cooperation. (“
China unveils climate change action report, states position on COP29,” Global Times, 06 November 2024)

CHINA & SOUTHEAST ASIA
Eighth Greater Mekong Subregion Summit 2024 to be held in Kunming, China 
On 07 November, an editorial in Global Times reported that the eighth Greater Mekong Subregion (GMS) Summit, in Kunming, China brought leaders from all six Mekong countries and looked to advance regional cooperation. The theme cantered on innovation-driven development. Since its inauguration in 1992 by the Asian Development Bank (ADB), the GMS group of China, Cambodia, Laos, Myanmar, Thailand, and Vietnam have all undergone remarkable development. Recent success stories include the performance of the China-Laos Railway, which has carried more than 16 million passengers and cargo tons, while the Phnom Penh-Sihanoukville Expressway has served 10 million users. Trade relations keep flourishing as China-Mekong commerce hit a record USD 200 billion in the first half of 2024 while registering a 12 per cent growth. Visas exemption schemes between China and Thailand, China and Laos, and mutual cultural understanding programs such as Lancang-Mekong Audiovisual Week and Youth Innovation Competition have increased the connectivity in the region. (“Greater Mekong Subregion converges tide of cooperation: Global Times editorial,” Global Times, 07 November 2024)

CHINA & EUROPE
Lithuania's President calls to end the refit and normalise ties with China 
On 07 November, Lithuanian President Gitanas Nausėda stated that both the government and the new incoming coalition are ready to normalise ties with China after a three-year standoff in diplomatic relations. A break happened in 2021 after Lithuania allowed a “Taiwanese Representative Office”. Public opinion polls indicate widespread public support for reconciliation as 63.3 per cent of Lithuanians feel that their country should not interfere with China’s internal affairs, and 44 per cent are concerned about the economic implications if Chinese investment is not achieved. Statistics revealed trade figures had shrunk while bilateral trade has risen by 82 per cent from 2015 to 2020, and reached USD 2.135 billion. The Lithuanian goods sold to China have all been at all-time low export levels in the last few years. The prime minister-designate of Lithuania Gintautas Paluckas described this as “a grave diplomatic mistake.” (Wang Qi, “Lithuania expresses hopes to restore ties with China after rifts over Taiwan question,” Global Times, 07 November 2024)

CHINA & THE AMERICAS
China-Latin America trade relations flourish through the CIIE platform, says an editorial in Global Times 
On 06 November, an editorial in Global Times noted that the seventh China International Import Expo will show how China and Latin America are increasing economic ties. China’s Ministry of Foreign Affairs spokesperson Mao Ning stated that market access opportunities are unprecedented. Regional products that win more and more ground in Chinese markets are Honduran shrimp, Nicaraguan honey, and Chilean Andes cherries. The Xiamen-São Paulo air cargo route has recently opened to make cross-continental trade easier. According to the ECALC data, this has come at a remarkable 35-fold growth between 2000 and 2022, compared to a fourfold growth in global trade in the region. This year China is seen as Latin America’s fastest-growing export market due to the success of the Belt and Road Initiative collaboration and the growing presence of the region in Chinese consumer markets. (“Latin America, Caribbean countries to unlock more opportunities in China market: Foreign Ministry,” Global Times, 06 November 2024)

China Reader | 06 November 2024, Wednesday| Vol.1 No. 205
EXTERNAL
China’s Premier at the 7th International Import Expo expresses openness to global trade 
On 05 November, at the 7th China International Import Expo opened in Shanghai China’s Premier Li Qiang made clear the commitment to improving market access in all industries, from telecommunications to health care. The expo attracted a record 3,496 exhibitors from 129 countries, including 297 Fortune Global 500 companies. Some of the more prominent attendees, such as Shiseido and FedEx, have shown great enthusiasm for China’s market and many of them have maintained their business here for dozens of years. The event is now a big global tradeshow having arranged various deals amounting to more than USD 420 billion from the previous six editions. This year’s expo showcased over 400 new products and technologies on show with the first one signed at USD 50 million worth. China has been noted to support developing countries. It offered 120 free exhibition booths to 37 least-developed countries and zero-tariff treatment for African nations with which it enjoys diplomatic ties. (Wang Cong, Qi Xijia, and Zhao Juecheng, “China committed to further opening-up as 7th CIIE opens,” Global Times, 05 November 2024)

CHINA & SOUTH ASIA
Two Chinese workers attacked in Karachi, Pakistan
On 05 November, two Chinese nationals who were working at a textile mill in Karachi were injured when a security guard fired at them. This incident comes days after a suicide bombing that killed two Chinese nationals near the Karachi airport. Thousands of Chinese nationals working on Belt and Road-related projects in Pakistan have stepped up concerns about security in the province. Provincial Spokesperson Suhail Jokhoio stated that the guard was arrested. The Pakistan Ministry of Foreign Affairs emphasised that it would produce the culprit before justice and maintained close contact with the Chinese Embassy in Islamabad regarding the incident. (“A Pakistani guard wounds 2 Chinese workers in Karachi,” AP News, 05 November 2024)

CHINA & EAST ASIA
China and Mongolia affirm to build stronger trade and technological partnership
On 05 November, Mongolian Prime Minister Oyun-Erdene stated that Mongolia plans to deepen bilateral cooperation with China further. On the sidelines of the 7th CIIE in Shanghai, the two sides agreed to expand cooperation on all-emerging sectors such as artificial intelligence and green development. They also agreed to reinforce traditional sectors of mining and hydropower. Li stated that Mongolia is special for China’s neighbourhood diplomacy and he called for greater investment in infrastructure and port links. Mongolia reaffirmed its position regarding the one-China policy while taking a keen interest in partnerships in the energy sector, urban planning, and combating desertification. The parties agreed to strengthen cooperation under multilateral mechanisms, with a special focus on the Shanghai Cooperation Organization (SCO). The two countries promised to encourage the investment of Chinese companies in Mongolia. (“China, Mongolia to expand cooperation in trade and investment,” CGTN, 06 November 2024)

CHINA & SOUTHEAST ASIA
China and Malaysia strengthen strategic partnership and cooperation in emerging sectors
On 05 November, at the meeting in Shanghai during the 7th CIIE, Chinese Premier Li Qiang and Malaysian Prime Minister Anwar Ibrahim set out plans to deepen bilateral cooperation. The Chinese Premier stated that the relationship entered a new stage of mutual respect and strategic alignment. The two leaders talked about ways forward in advancing key projects including the East Coast Rail Link and the “Two Countries, Twin Parks” initiative, among others. Anwar reaffirmed China as a very important partner, supported CPTPP membership for China, and committed to further developing the Belt and Road cooperation. With Malaysia hosting the ASEAN rotating chair next year, both parties agreed to boost regional cooperation through the digital economy, education, and cultural exchanges toward Asian economic integration. (“Premier Li: China, Malaysia should explore emerging fields cooperation,” CGTN, 06 November 2024)

Myanmar’s military leader visits China to strengthen ties 
On 05 November, Myanmar’s new Senior General Min Aung Hlaing, who assumed power in 2021, landed in China for his first official visit to discuss ways of further strengthening the bilateral relationship and economic cooperation. Myanmar has been one of the biggest trading partners of China and also its main arms supplier. Despite the investments, which include the infrastructure, mining, and energy sectors, challenges in the relationship have seen instability along the borders and online scams have been targeting Chinese citizens. The military regime is seeking to strengthen relations with Beijing as international sanctions and losses on the battlefield at the hands of rebel groups mount. Min Aung Hlaing is set to attend the Greater Mekong Subregion summit in Kunming. China’s Ministry of Foreign Affairs highlighted the need for “unity and cooperation” as global turmoil persists. His visit would be his first to China since the coup and also the first visit compared to multiple ones he has made to Russia thus far. (“Myanmar military government chief on first visit to ally China since the coup,” Al Jazeera, 05 November 2024)

CHINA & THE MIDDLE EAST
China to issue bonds in Riyad forging deeper financial ties with Saudi Arabia 
On 06 November, China’s Ministry of Finance stated that it would issue USD 2 billion in dollar-denominated bonds in Riyadh. This marks the first such offering since it issued USD 4 billion in Hong Kong last 2021. ANZ Bank’s Raymond Yeung stated that funding needs do not drive this move. It will increase offshore bond liquidity and support Belt and Road Initiative investors. Capital Economics’ Mark Williams stated that China aims to strengthen its position as Saudi Arabia’s key partner. The issuance follows China’s recent EUR 2 billion bond sale in Paris and aligns with Saudi Arabia’s efforts to develop its capital markets. (“China’s issuance of US dollar bonds to bolster ties with Saudi Arabia,” South China Morning Post, 06 November 2024)

CHINA & AFRICA
Kenyan President William and CCP’s Standing Committee Member discuss the Rironi-Mau Summit road 
On 04 November, Kenyan President William Ruto held talks with the Communist Party of China’s Standing Committee member Li Xi over the construction of the Rironi-Mau Summit Road project. The talks were postponed for the project which passed via the Rift Valley instead sponsoring the Standard Gauge Railway (SGR) extension on the border with Uganda. However, a French syndicate won USD 1.4 billion as a contract for the construction of the 233-kilometer Rironi-Naivasha-Nakuru-Mau Summit Road during the earlier Kenyan government. In addition, China Exim Bank funded USD 5 billion for the construction of a 590-kilometer railway line. Additionally, on 03 November, Li visited the Standard Gauge Railway (SGR) Nairobi terminus and stated the possibility of funding to the Ugandan border, while the Chinese delegates held a close assessment of the project with Kenyan senior officials. Furthermore, David Shinn a China-Africa specialist at George Washington University’s Elliott School of International Affairs said: “China saw this as an inexpensive way to build personal relationships with key leaders in Africa. The Communist Party had a long and close relationship with South Africa’s African National Congress (ANC). It was now trying to build strong ties with the UDA in Kenya, especially following Ruto’s successful visit this year to Washington where President Joe Biden elevated Kenya to “major non-Nato ally” – perceived as a response to China’s growing influence in East Africa.” (“With Chinese official’s visit, Kenyan president says deal to fund and build highway is close,” South China Morning Post, 06 November 2024)

China Reader | 05 November 2024, Tuesday| Vol.1 No. 204
EXTERNAL
China pledges economic opening and trade expansion at International Import Expo
On 04 November, China’s Premier Li Qiang announced huge plans at the seventh China International Import Expo and reemphasised on opening up to combat rising global unilateralism. The third China International Import Expo attracted 3,500 exhibitors from 152 countries, including massive companies like L'Oreal and Siemens.Despite facing economic challenges like low domestic consumption and tensions in trade with the West, Li still expressed confidence that he would meet growth goals. He also promised the opening up of foreign investment access in telecommunications, education, healthcare, and cultural sectors. While hosting the first global business leaders from Synopsys and General Electric, Li pointed out that China is a source of investment and entrepreneurship instead of just being an export destination.Though last year’s expo reportedly announced USD 78.4 billion in potential deals, critics such as the European business chamber claim the event is more a tool of government propaganda than a real platform for deal-making. (Casey Hall, “China must open up further to combat rising unilateralism, premier says,” Reuters, 05 November 2024; “Chinese premier pledges broader opening-up for foreign-funded firms,” CGTN, 05 November 2024)

INTERNAL
China’s Minister of  Foreign Affairs spokesperson reaffirms one-China principle
On 04 November, China’s Minister of  Foreign Affairs spokesperson Mao Ning emphasised that at present, 183 countries have established diplomatic relations with China based on the one-China principle. Mao responded to the Palau-related issues that only a few countries are left that have diplomatic ties with Taiwan. She also stated that this ran counter to UN Resolution 2758 and infringed upon the sovereignty of China. Mao said: “Those who adjust to times with actions, those are wise.” and urged the nations to join the march of history. She also further said: “It's never too late to make new friends.” She also added that China was now open to building friendships with those who respect its sovereignty and one-China principle. (“China: Historical trend of endorsing one-China principle 'unstoppable',” CGTN, 04 November 2024)

China’s military warn young personnel against online risks and emphasise discipline
On 05 November, Reuters reported that China’s navy issued a warning on online security risks to the junior personnel born after 1990. The People’s Liberation Army (PLA) Navy also cautioned against online military identities and warned against casual internet friendships and virtual gambling and described it as being “possessed by a demon”. This advisory comes among broader concerns about internal military discipline. President Xi Jinping emphasised on the “deep-seated” problems within the armed forces. Xi also stated at a June military conference that the Communist Party must have “absolute leadership” over the PLA and should have senior cadres engage in “soul-searching reflections” on upholding its core values while having strict discipline.  (“China warns young soldiers against online dating, gambling,” Reuters, 05 November 2024)

SCIENCE & TECHNOLOGY
Chinese new energy vehicles manufacturers set new sales records 
On 03 November, Global Times reported that October was a milestone for China’s new-energy vehicle (NEV) sector as BYD achieved unprecedented monthly sales of 502,700 units, representing a 66.5 per cent year-on-year increase and including over 31,000 overseas sales. The company’s revenue reaches 201.125 billion yuan and its success extended to its quarterly performance by surpassing Tesla for the first time. Other ma manufacturers reported heavy gains like Seres’ growth increased up by 104.61 per cent from sales of last month. Top startups maintained strong performance, as Li Auto’s deliveries came in at 51,400 units. Nio and XPeng recorded deliveries of around 21,000 and 23,900 units. The Secretary General of the China Passenger Car AssociationCui Dongshu stated that the growth was mainly due to effective trade-in policies and strong domestic demand and that Western protectionism will not stop sector expansion. (“Chinese NEV producers see sales growth in October, BYD sets record,” Global Times, 03 November 2024)

DEFENCE
PLA Air Force to showcase advanced military aircraft at airshow China 2024
On 05 November, the J-35A is the new stealth fighter from China and is reportedly scheduled to make its international debut at Zhuhai Airshow China 2024. This will turn China into the world’s second country, after the US, operating two dual stealth fighter platforms besides the J-20. A total of six days of demos have been scheduled from 12 November, with military aircraft flying in 36 demo displays, which will also feature performances by both Bayi and Red Falcon aerobatic teams. Visitors will be able to see a variety of advanced equipment, including the HQ-19 surface-to-air missile system and a new reconnaissance drone. The cargo hold of the Y-20 transport aircraft will be accessible through a lottery system. Military expert Li Li pointed out that the J-35 series is designed for carrier operations. (Liu Xuanzun and Guo Yuandan, “PLA Air Force to debut J-35A stealth fighter jet at Airshow China,” Global Times, 05 Nivember 2024)

CHINA & THE AMERICAS
Trump to bring down drug trafficking if elected 
On 04 November, the Republican presidential candidate Donald Trump warned both Mexico and China that he would impose tariffs if he were elected unless both nations stopped supplying fentanyl to the United States. At a campaign in Pittsburgh Trump stated that he would bring down drug trafficking quickly occurring along the southern US borders with Mexico, he said: “We will immediately stop the drugs pouring across our border.” In addition to his speech, Trump stated that he would impose tariffs on Mexican goods at a rate of 25 per cent and similar would also be taken on China for exporting fentanyl. He said: “Every damn thing that they sell into the United States is going to have like a 25% (tariff) until they stop drugs from coming in.” (“Trump warns, if elected, he'll impose tariffs on Mexico, China over fentanyl,” The Economic Times, 05 November 2024)

China Reader | 04 November 2024, Monday | Vol.1 No. 203
OUTERSPACE
Chinese taikonauts of Shenzhou-18 crew complete six-month space mission 
On 04 November, the Shenzhou-18 crew safely ended its 192-day mission through a safe landing at the Dongfeng site in Inner Mongolia. Chinese astronaut Commander Ye Guangfu made history as he became the first Chinese to spend over one year on multiple missions inside space. During their time on board, the crew, which comprised first-time space travellers Li Cong and Li Guangsu, made history by doing pioneering research. They set up a space “aquarium” where they studied zebrafish behaviour in microgravity and kept a “space garden.” There were two spacewalks, with May excursion being the longest Chinese spacewalk ever done. The taikonauts conducted scientific experiments in physics, space medicine, and technology. They also studied emergency decision-making in orbit. Ye said: “Chinese astronauts have flown to space in successive missions. I believe that the record of the duration in orbit will be broken in the near future.” The success of the current mission opened up perspectives of upcoming Shenzhou-20 and Shenzhou-21 missions scheduled for 2025. (“Shenzhou-18 taikonauts safely return to Earth after completing six-month space station mission,” Global Times, 04 November 2024)

SCIENCE & TECHNOLOGY
China’s EV infrastructure expansion shows remarkable growth in September 2024
On 04 November, CGTN reported that China’s charging infrastructure for electric vehicles has skyrocketed as of September 2024. The number of charging piles in the country is 11.43 million and is growing by 49.6 per cent year-over-year. The distribution is spread across 3.33 million public and 8.1 million private charging facilities. This covers 28.09 million registered new energy vehicles, with a ratio of 1 charging pile per 2.46 vehicles. The first nine months of 2024 saw the net addition of 2.84 million charging piles while charging consumption increased by 12.4 per cent to 66.67 billion kWh. County and town facilities did not lag in this effort, with 417,000 units now added in rural areas. (“China reports sharp increase in EV charging facilities,” CGTN, 04 November 2024)

INTERNAL
China’s marriage registration fell in the first nine months of 2024 
On 03 November, Reuters reported that China’s efforts to boost its shrinking population failed as marriage registration fell significantly in the first nine months of 2024. According to statistics compiled by the Chinese authorities, only 4.747 million couples were reported to have been registered with marriages. This displayed a decrease from the previous year by 943,000. The divorce cases were reduced but minimally by 6,000 at 1.967 million. While emphasising women’s role in setting a “new trend of family,” President Xi Jinping promoted policies that simplify the procedures for marriage registration while making the process of divorce stricter. However, economic insecurity and the growing cost of living make young Chinese citizens avoid marriage and bear fewer children. This trend continues even as the government undertakes several initiatives in metropolitan cities that encourage a “new-era” marriage and childbearing culture. (“Marriage registrations in China drop for the first nine months of 2024,” Reuters, 03 November 2024)

Chinese state officials by law now required clear statements to journalist
On 03 November, South China Morning Post reported that new amendments to China’s Emergency Response Law require the officials in power to give a clear answer to the journalists about the situation. This puts an end to previous trends of saying “no comment”. The revised law enacted during this month promises protection from judicial persecution to reporters under obligation to report with timely accuracy, objectivity, and fairness. The All-China Journalists Association warns that there is a risk of a ‘Tacitus Trap’. This refers to the Latin historian Tacitus, who wrote that Rome’s rulers had become so secretive that people lost confidence in government regardless of actions. Still, experts express cautious optimism about the new law. A Communication University of China lecturer Fu Zhijun stated that the legislation might create loopholes through which officials can avoid making direct answers. For instance, officials might claim that the case is still under investigation or simply say nothing concrete. In addition, the amendments cover false information, and Article 97 specifically addresses the public officials who spread false information. (William Zheng, “Chinese officials told to stop avoiding media questions about emergencies,” South China Morning Post, 03 November 2024)

ECONOMY
China’s Ministry of Commerce announces consumption promotion campaign
On 03 November, CGTN reported that the Chinese Ministry of Commerce is introducing a wide-ranging consumption promotion campaign, focusing on five major international consumption centres Shanghai, Beijing, Guangzhou, Tianjin, and Chongqing. This initiative was announced by Vice Minister Sheng Qiuping, who also declared food festivals, camping events, and cultural activities supplemented by incentives from local governments and consumer vouchers. The consumption carnival will take place in Shanghai, parallel with the China International Import Expo. The campaign rides on positive momentum since retail sales were 35.4 trillion yuan during the first three quarters of 2024, or 3.3 per cent year-on-year growth. The trade-in program in operation has processed 1.68 million applications for automotive subsidies and facilitated sales of 24.03 million household appliances. (“China launches consumption promotion events in November,” CGTN, 03 November 2024)

SCIENCE & TECHNOLOGY
Debunking the myth of China’s EV dominance states an opinion in Business Standard
On 04 November, an opinion in Business Standard stated that the common assumption that the key to China’s success in electric vehicles (EV) is government subsidies does not have much evidence. The financial books of major Chinese car manufacturers indicate their direct subsidies are equivalent to, or even less than, those of Western rivals. Volkswagen’s North American subsidies for 2023 surpassed those of all Chinese carmakers combined. But it offers favourable tax rates of 15 per cent in the case of hi-tech sectors, as opposed to the regular rate of 25 per cent. Even such an incentive leaves Chinese producers at a higher tax rate than their international competitors. The idea of state lending with low interest is not sound and only 6 per cent of China Development Bank lending accounts for manufacturing. First-class firms like BYD have capital costs higher than their international competitors, and they fund themselves through equity rather than debt. According to Ford CEO Jim Farley, their new mid-sized electric pickup shows Western manufacturers’ ability to compete and claims that it “matches the cost structure of any Chinese auto manufacturer building in Mexico.” While China’s EV industry initially benefited from government support, its current success extends beyond state aid. ( David Fickling, “China's EV success isn't all about subsidies, it's time rivals compete,” Business Standard, 04 November 2024)

Chinese AI firm DeepRoute.ai gets USD 100 million in investments 
On 04 November, autonomous driving developer DeepRoute.ai, based in Shenzhen, secured USD 100 million from a Chinese automaker looking to compete with Tesla’s upcoming Full Self-Driving system. DeepRoute.ai develops systems without expensive high-definition maps and enables smart EVs priced as low as 150,000 yuan. The company, backed by Alibaba, projects it will have nearly 200,000 such vehicles by 2025 compared with the current 20,000. Zhou said: “China has more complicated traffic situations with pedestrians walking on motorways and millions of scooters rushing to deliver their goods.” Founded in 2019, DeepRoute.ai plans to launch over 10 models with its partners in 2025. This will include vehicles under the Geely-Mercedes smart brand while eyeing an expansion into Europe, Southeast Asia, and Middle East markets by 2027-2028. (“Chinese autonomous driving firm DeepRoute.ai raises US$100 million as adoption accelerates,” South China Morning Post, 04 November 2024)

ENERGY & ENVIRONMENT
Chinese solar manufacturers adapting to US tariffs states an editorial in Reuters
On 04 November, an editorial in Reuters reported that Chinese solar manufacturers are shuffling their operations to evade the increasingly stricter US tariffs, which have exceeded 300 per cent for a few. Although the main plants in Vietnam by industry leaders Longi and Trina Solar have started production cuts and laying off staff, new manufacturing sites sprung up in Indonesia and Laos. These new facilities have a combined capacity of 22.9 gigawatts, enough to supply about half of last year’s US panel installations. A former Clinton administration trade official, William A. Reinsch said: “It's a huge cat and mouse game” and “The design of the rules is such that the U.S. is usually one step behind.” China currently dominates about 80 per cent of global solar shipments, with US imports tripling since 2012 to reach USD 15 billion last year. Chinese companies are also building domestic US production facilities, targeting 20 GW of annual capacity within a year. The US market remains particularly attractive, pricing 40 per cent above its Chinese counterpart over the past four years. (Lewis Jackson, Phuong Nguyen, Colleen Howe and Nichola Groom, “Chinese solar firms go where US tariffs don't reach,” Reuters, 04 November 2024)

CHINA & SOUTH ASIA
India’s External Affairs Minister notes that India-China relations are moving ahead
On 04 November, External Affairs Minister S Jaishankar on his visit to Brisbane stated that India-China relations were moving ahead and pointed to recent efforts at disengagement along the Line of Actual Control (LAC) in eastern Ladakh. While speaking to the Indian diaspora, he admitted that Chinese troop deployments were still much higher than pre-2020 levels however, verification patrolling had begun in Demchok and Depsang on mutually agreed terms. Jaishankar said: “We do think the disengagement is a welcome step. It opens up the possibility that other steps could happen.” He also discussed ongoing global conflicts and described the Russia-Ukraine war and Israel-Iran tensions as “very, very worrying situations,” in which India is actively working to promote diplomatic ties. He stated that in discussing India-Australia relations, Prime Minister Modi had shown an interest in enhancing bilateral ties in 2014 and stated that this relationship “did not happen on auto-pilot.” His current tour is a visit to inaugurate the fourth Australian consulate in Brisbane and co-chairing the 15th Foreign Ministers’ Framework Dialogue, followed by Singapore engagements with ASEAN. (“Some progress, opens the possibility for other steps: Jaishankar on India-China disengagement,” The Indian Express, 04 November 2024)

CHINA & EUROPE
A University in Switzerland criticised for restricting Chinese students’ admission
On 31 October, Switzerland’s ETH Zurich (Federal Institute of Technology Zurich) was criticized for restricting the admission of Chinese students. According to the university’s latest security policy, the admissions will affect applications from doctoral and master’s students along with guests, and new staff. ETH Zurich stated that the rules were implemented to reduce the risk of technology and knowledge exploitation at the institute which might be used for military purposes. Additionally, ETH Zurich said: “If certain foreign students, employees or guests could gain access to dual-use goods or key technologies, a security screening of their applications must therefore be carried out. There are neither hard exclusion criteria nor automatic mechanisms; each application is examined individually.” There are 17 Chinese research institutions that are considered security risk, among which seven universities are affiliated with the Chinese Industry and Information Technology Ministry. Other than that there are 23 universities from Iran, Russia, and North Korea who have also been listed. According to robotics scientist Geng Tao, the move was unprecedented and ridiculous, he further said: “As far as he knew, this was the first time a Swiss university had publicly announced such wide-ranging scrutiny of Chinese students and fears other universities might follow suit. ETH itself does not impose sanctions, stressing that the regulations are published to ensure compliance with the rules given the rapidly changing geopolitical environment.” (“Swiss university’s not-so-neutral policy to restrict applications from Chinese students,” South China Morning Post, 04 November, 2024)

China Reader | 02 November 2024, Saturday | Vol.1 No. 202
ECONOMY
China eases foreign investment rules for listed firms
On 01 November, China updated its rules to ease foreign investment in listed companies by lowering entry thresholds and expanding investment methods to attract high-quality global capital.  The Ministry of Commerce (MOFCOM) now allows strategic investments by foreign individuals rather than just legal entities. The asset requirement for non-controlling investors is reduced to USD 50 million from USD 100 million. While for assets under management, it is reduced to USD 300 million from USD 500 million. New channels involve tender offers, privatisations, and even private placements. MOFCOM stated that the changes from this law help foster the advancement of Chinese industries, attract cutting-edge technology abroad, and raise the capital market development level of China. The risk controls created in return are also high and the coordination between investment security reviews and antimonopoly reviews ensures national interests under government policies. The Digital-Real Economies Integration Forum’s Hu Qimu said: “This institutional opening-up creates more opportunities for global investors to benefit from the Chinese market.” (“China relaxes rules for foreign investment in listed firms,” Global Times, 01 November 2024)

CHINA & EUROPE
China and Slovakia forge strategic partnership
On 01 November, CGTN reported that during the official visit of the Slovak Prime Minister, Robert Fico, to Beijing, Chinese President Xi Jinping formally declared that the two would take the bilateral relations to a strategic partnership. This marked the 75th anniversary of their diplomatic ties. Xi announced four major proposals that highlight high-level exchanges, practical cooperation, cultural exchange, and multilateral collaboration. China issued a 15-day visa-free policy for Slovakian citizens. Fico underlined that Slovakia adheres to the one-China policy and does not exclude plans to invest in infrastructure and new energy sectors of China. Leaders discussed Ukraine’s situation and Slovakia expressed readiness to join the “Friends of Peace” platform. The leaders also talked about the next 50th anniversary of China-EU relations. Xi Jinping stated that mature diplomatic relations should be formed between China and Slovakia so that the new leadership of the EU would pursue pragmatic policies and not politicise economic issues. (“President Xi, Slovak PM meet in Beijing, agreeing to elevate ties,” CGTN, 01 November 2024)

ECONOMY
China’s Commerce Ministry reveals major policies across five key cities
On 01 November, China’s Commerce Ministry stated that it would implement massive consumer promotion initiatives in Beijing, Shanghai, Guangzhou, Tianjin, and Chongqing. Vice Minister Sheng Qiuping stated that a comprehensive scheme would be launched targeting the debit economy, retail sector, and commercial circulation pilots within 20 cities. Five metropolitans with retail sales that exceed 13 per cent of the country and import over half of consumer goods will have all their activities, ranging from festivals to sporting events. To encourage the opening of stores and consumer vouchers, local authorities will offer incentives. The policy corresponds to the initiatives of China. It is primarily grounded on economic revival policies because it has been effective in the past. Retail sales of consumer goods for the January-September 2024 period were 35.4 trillion yuan, growing 3.3 per cent year on year. The trade-in program handled 1.68 million applications for automotive subsidies and also enabled the sale of 24.03 million household appliances. (“China to introduce new policies in November to boost consumption: official,” CGTN, 01 November 2024)
 

POLAR
Sino-Russian Arctic collaboration, reports China Daily
On 01 November, China Daily reported that Sino-Russian cooperation would offer considerable opportunities in the Arctic, which contains huge untapped reserves of oil, gas, and minerals. Because China increasingly needs energy to fuel its growth, it will seek reliable suppliers in the Arctic. Russia is willing to engage because it controls this source of resources but lacks the capital and technology needed for its large-scale extraction. The Northern Sea Route, now melting ice permits greater access, shortens the distance between Asia and Europe, and follows China’s Belt and Road Initiative. However, looming geopolitical tensions are present because this kind of cooperation may provoke concern from the USA and its allies. (Hong Nong, “China, Russia navigate in Arctic cooperation,” China Daily, 01 November 2024)
 

CHINA & EAST ASIA
China navigating the growing Russia-North Korea alliance, says an opinion in BBC
On 02 November, China faces a gigantic diplomatic challenge, as two of its allies, Russia and North Korea, meet at China’s northeast corner, Fangchuan. The rapport between Putin and Kim Jong Un is deepening with rumours that troops from North Korea might provide support to the invasion by Russia in Ukraine. China currently accounts for more than 90 per cent of North Korea’s foreign trade and may be losing influence over the North as Kim becomes increasingly close to Putin, whom he refers to as “my closest comrade.” Kim is getting more intimate with Putin, for he has not met Xi since 2019 but met Putin twice recently. International Crisis Group official Christopher Green said: “China seeks a relationship with a reasonable, high level of control over North Korea” but such control seems to be eroding. The situation is particularly sensitive for Beijing, which is being accused by the US of helping Russia in its war effort at the time it is striving to maintain regional stability and repair ties with the West. Perhaps Kim is shifting the “lips and teeth” relationship to new slants as he is looking for new alliances. (Laura Bicker, “Kim Jong Un was China's ally - until he became the 'comrade from hell',” BBC, 02 November 2024)
 

CHINA & SOUTHEAST ASIA
Thailand becomes first nation to join both US and Chinese space exploration program
On 01 November, SCMP reported that Thailand is participating in both the Chinese and American space exploration programs, which proves that these initiatives are not mutually exclusive. Following the MOU signed with China for the International Lunar Research Station in April, Thailand has now sanctioned joining the US-led Artemis Accords. A space expert John Sheldon stated that this dual participation could set a precedent for other nations. It is collaborating, for the first time, by supplying scientific instruments to China’s Chang’e-7 mission in 2026. Thailand changed its cooperation from a long time of satellite communications to this new ILRS aimed at establishing a lunar base in the mid-2030s. There are currently 47 signatories to the Artemis Accords who cooperate on best practices in space exploration. Although US-China space cooperation is currently limited to legislations like the Wolf Amendment, Sheldon believes that lunar survival may eventually demand the cooperation of astronauts from the two nations. (Ling Xin, “Thailand set to be the first country to join Chinese and US-led space initiatives,” South China Morning Post, 01 November 2024)
 

CHINA & SOUTH ASIA
India-China border disengagement agreement making progress, says China’s military spokesperson
On 01 November, The Indian Express reported that India and China are putting their latest disengagement agreement in eastern Ladakh. This is an achievement in India-China border relations. Chinese military spokesperson Zhang Xiaogang stated that “frontline troops of the two militaries are making progress” following resolutions reached through diplomatic and military channels. This development comes after the meeting of Prime Minister Modi and President Xi at the BRICS summit in Kazan. In a recent development sweets by Indian personnel were shared with the Chinese armed forces for Diwali. Showcasing goodwill and easing of ties. The disengagement process at Demchok and Depsang Plains has been finalized according to Indian Army sources and patrolling arrangements remain in the local commander discussions. This is the first and most important step towards de-escalation on the Line of Actual Control (LAC) since June 2020 when India suffered a serious clash with the PLA in Galwan Valley. However, verification processes continue still. (K J M Varma, “India, China troops making progress on disengagement, says Chinese military,” The Indian Express, 01 November 2024)
 

CHINA & THE AMERICAS
US lawmakers rally support to families caught in between China’s adoption ban
On 02 November, the South China Morning Post reported that a bipartisan group of 103 US lawmakers urged President Biden to intervene after China unexpectedly halted its foreign adoption program. This affected around 300 Chinese children already matched with American families. The surprise stops of the three-decade-old program announced in August left many families hanging in mid-air, particularly for the disabled children whose adoption chances are limited. The Chinese government has only offered vague reasons for deferring the process, yet analysts think this move would be partly driven by escalated tensions in the US-China relationship and also demographic developments. The case highlights some of China’s obligations before the Hague Convention on cross-border adoption, although politicians said adoptions are still legal for other countries. Adopted since 1999, over 82,000 Chinese children have already been taken home by their American parents, making it the favorite destination for American adoptions from China. It has suspended the event following its pause in 2020 due to the COVID-19 pandemic. (Lara Zhou, “China adoption fallout: US lawmakers urge Biden to help families after Beijing ends scheme,” South China Morning Post, 02 November 2024)

China Reader | 30 October 2024, Wednesday| Vol.1 No. 201
OUTERSPACE
China’s Shenzhou-19 mission marks a milestone with first female space engineer
On 30 October, China’s space program recorded another success when Shenzhou-19 docked at the Tiangong space station, carrying the country’s first civilian female astronaut and nuclear rocket scientist, Wang Haoze. The 34-year-old engineer is joined by veteran Commander Cai Xuzhe and first-time astronaut Song Lingdong for a six-month mission. The crew will perform experiments and spacewalks, supporting China’s ambitions on the moon by 2030. This will be one of China’s 100 missions planned this year. Wang had earlier designed nuclear-powered rocket engines and she stated that she had changed “from rocket engine designer to aerospace engineer but my purpose serving the country through space exploration is still the same”. The mission reflects the general ambition of China’s more comprehensive aspirations in space and Mars exploration and retrieval of lunar samples, although those advances have evoked worries in Washington as NASA head Bill Nelson commented on the space race underway. This ignited national pride as hundreds converged to witness the launch from the Jiuquan Satellite Launch Centre in the Gobi Desert. (Laura Bicker, “China declares success as its youngest astronauts reach space,” BBC, 30 October 2024; Holly Chik, “China’s first civilian female astronaut ‘never imagined’ she would voyage into space,” South China Morning Post, 300 October 2024)

ECONOMY
China plans a USD 1.4 Trillion fiscal package to revitalise economy
On 29 October, Reuters reported that China is considering passing an unprecedented fiscal package of over 10 trillion yuan (USD 1.4 trillion) to help address challenges in its economy. The Standing Committee of the National People’s Congress will discuss a proposal during its upcoming meeting on 04 to 08 November, and it is likely to be approved on the last date. The package includes special sovereign bonds of 6 trillion yuan over three years and up to 4 trillion yuan in special-purpose bonds for land and property purchases. In total, it adds up to 08 per cent of the GDP, as part of the stimulus measures for debt risks of local government bodies and economic growth. Interestingly, the package arrived at the time of the US presidential election, and reports indicate it may get more aggressive in case Donald Trump wins as he had proposed 60 per cent duties on Chinese imports. Other plans include consumption incentives and maybe capital injection into state banks. However, S&P’s Louis Kumis said: “Significant fiscal stimulus should buoy confidence. but it remains unlikely that we will see a substantial improvement of the economic growth outlook.” (“Exclusive: China considers over $1.4 trillion in extra debt over next few years,” Reuters, 29 October 2024)

CHINA & RUSSIA 
Russian Deputy Foreign Minister meets Chinese officials amid North Korea-Ukraine concerns
On 30 October, Russian Deputy Foreign Minister Andrei Rudenko met with Chinese Foreign Minister Wang Yi in Beijing. The meeting was held as NATO and South Korea raised concerns over North Korea’s possible military involvement in Ukraine. Rudenko was key in developing Russia-North Korea relations since the Ukraine invasion. He has also worked on Russian peace negotiation teams. Before the war he emphasised that Russia is committed to post-Soviet states and said: “They will always be a priority, among our geopolitical priorities, regardless of the geopolitical context.” The reasons for his visit to Beijing are still unknown, further fueling regional diplomatic speculations. (“Russia's deputy foreign minister meets China's foreign minister in Beijing, Russia's RIA reports,” Reuters, 30 October 2024)

INTERNAL
China’s President calls for sustained reform at party school study session
On 29 October, President Xi Jinping delivered a speech to the provincial and ministerial officials at the CPC Central Party School and urged steady reform implementation. The session focused on guidelines from the third plenary session of the 20th CPC Central Committee. Xi emphasised that China has achieved overall reforms in the new era. He underscored the guiding principles of the Party, Party leadership, and socialism with Chinese characteristics. He emphasised integrating reform with the rule of law and opening up, to bring China into international economic standards and to build a market-oriented business environment. Xi said: “Senior officials should strive to open new horizons for reform rather than shying away from risks.” Xi said. Members of the Standing Committee who attended included Li Qiang, Zhao Leji, Wang Huning, Cai Qi, Ding Xuexiang, and Li Xi, as well as Vice President Han Zheng. (“President Xi stresses advancing reform at study session for senior officials,” CGTN, 29 October 2024)

CHINA & EAST ASIA
China’s unprecedented ambassadorial vacancy in South Korea reflects complex diplomatic dynamics, says an opinion in SCMP
On 29 October, an opinion in the South China Morning Post stated that the post of Chinese ambassador to South Korea has been lying vacant for over three months, which is the longest period since diplomatic relations were established in 1992. Since Xing Haiming left the country on 10 July, the Beijing government has not named a successor and Fang Kun is serving as chargé d’affaires. The vacancy in the post matches the latest lengthy diplomatic gaps in the posts of the US and the EU. It may also reflect intricate geopolitical considerations, especially given the strengthening US-South Korea-Japan relationships. Renmin University’s Shi Yinhong stated that bilateral relations have sunk to a point not seen since 1992, pointing to challenges such as “North Korea's greatly accelerated nuclear missile development and Beijing's explicit appeasement.” Some analysts, including Bucknell University’s Zhiqun Zhu, warn against over-reading the significance of the vacancy. Others believe it is strategically timed amid regional tension. Meanwhile, Seoul has tapped former presidential chief of staff Kim Dae-ki to become its ambassador to Beijing, hailed for his “abundant policy experience.” (Vanessa  Cai, “China-South Korea ties: empty ambassador chair highlights complications in relationship,” South China Morning Post, 29 October 2024)

South Korean national and former Samsung employee detained in China amid escalating tech espionage tensions
On 29 October, China confirmed that it had detained a South Korean national on charges of spying. This is the first under the new July 2023 amended law on anti-espionage. News agencies report that the detainee was a man in his 50s said to be a former employee at Samsung Electronics whose activities were reportedly detected as suspicious in China where he was reported to have been caught last December allegedly leaking semiconductor information. The foreign ministry spokesman Lin Jian said that the arrest had been “done according to law” and pointed out that all rights of the suspect had been guaranteed. Relatives said that the person, who is diabetic, had been detained and interrogated for five months before the Ministry of State Security had taken over the case. The arrest followed hours after Seoul had detained another former Samsung executive, Choi Jinseog, accused of stealing chip technology for China. The case arises when tensions are on the rise between China’s enhanced counter-espionage efforts and its continued tech competition with the West. (Zhao Ziwen, “South Korean national arrested in China on suspicion of espionage,” South China Morning Post, 29 October 2024)

CHINA & THE AMERICAS
China-Canada air travel set for major expansion following restriction removals
On 30 October, China and Canada are expanding their air connectivity followed by the successful dialogue between the two civil aviation authorities. Air Canada will increase its Vancouver-Shanghai service to seven weekly flights from 07 December. It will also resume its Vancouver-Beijing operation in January 2025. The Canadian Transportation Agency has removed all the restrictions imposed on Chinese mainland carriers that were allowed six weekly round-trips only since February 2022. This has drawn consumer interest with Qunar.com reporting increases in searches by 110 per cent for Toronto flights and 150 per cent for Vancouver routes. Chinese airlines, including Air China, China Eastern, and China Southern now can apply for increased frequencies. This will result in new flights in the coming period before the Spring Festival. It is assumed that the increase will bring down ticket prices and improve bilateral exchanges, bringing the country closer to service levels before 2019. (“China, Canada boost direct air flights following removal of prior restrictions,” Global Times, 30 October 2024)

CHINA & EUROPE
China and Finland strengthen bilateral ties on “green transformation” and Ukraine
On 29 October, Chinese President Xi Jinping and Finland’s President Alexander Stubb strengthened their diplomatic relationship and emphasised that this could be a good example for international cooperation. The meeting is considered a giant leap since President Xi agreed to visa-free entry for Finnish citizens while encouraging cooperation in emerging technologies like green technology, AI, and digital economy. Xi emphasised: “As the world is changing at a speed unseen in a century we need the future-oriented new-type cooperative partnership.” The historical significance of Finland being one of the first Western nations to develop diplomatic relations with China emphasised the meeting’s importance. While referring to the situation in Ukraine directly, Stubb said: “Russian aggression has violated international law” but sought peaceful solutions. Several cooperation agreements were signed in education, environmental protection, and agricultural products, along with a joint work plan for 2025-2029. The bilateral trade between the two countries reached USD 8.2 billion last year, with a decrease of 16.5 per cent from 2022. The leaders also discussed climate change, biodiversity, and global sustainable development and stressed their commitment in maintaining world peace and stability. (“President Xi Jinping hails 'future-oriented new-type' China-Finland cooperative partnership,” CGTN, 29 October 2024; Zhao Ziwen, “China’s Xi seeks closer ties with Finland on green energy, peace plan for Ukraine,” South China Morning Post, 29 October 2024)

China issues a complaint to the World Trade Organisation against the increased EV tariffs  
On 30 October, South China Morning Post reported on the possibility of an intensified trade war between China and the European Union. This comes after Beijing issued a complaint to the World Trade Organization about the EU’s increased tariffs on China-made electric vehicles. The European Commission published a final ruling on the same which stated that 35.3 per cent would be applied to EVs from Chinese state-owned company SAIC Motor and its subsidiaries and 10 per cent duty to all EV imports. Major Chinese-owned carmakers like BYD and Geely are set to face extra duties of 17 per cent and 18.8 per cent respectively. Additionally, China’s Ministry of Commerce said: “China advocates resolving trade conflicts through dialogue, adding that it was conducting a “new phase of consultations” with the European bloc. We hope that the European side will work with China in a constructive manner … and reach a solution acceptable to both sides as soon as possible to avoid escalating trade frictions.” Furthermore, EU’s Vice President Valdis Dombrovskis stated that the bloc members welcomed the competition, which must also be supported by impartiality. He further said: “By adopting these proportionate and targeted measures after a rigorous investigation, we are standing up for fair-market practices and for the European industrial base.” (“China-EU trade war erupts as Beijing files WTO complaint over EV tariff hikes,” South China Morning Post, 30 October 2024)

China Reader | 29 October 2024, Tuesday| Vol.1 No. 200
INTERNAL
Chinese kindergarten numbers fall amidst declining birthrate
On 28 October, The Guardian reported that the number of kindergartens in China had declined by 5 per cent.  According to a bulletin by the Ministry of Education of the People’s Republic of China, there were 274, 400 kindergartens across China in 2023. This was a decline from 289,200 kindergartens present in 2022.  Additionally, the number of children studying in kindergartens fell to 40.9 million in 2023, a decrease of over 11 per cent from the previous year. The decline adds to concerns about the declining population and falling birthrate in China. Several regions in China have begun offering subsidies for families to have second or third children. For instance, a village in the Guangdong province offers bonuses of CNY 10,000 for a second child and CNY 30,000 for a third child. An economist and demographer, Lian Jianzhang argued these measures were not enough. Lian proposed monthly subsidies of up to CNY 3,000 for third and subsequent children and a one-time cash reward of CNY 10,000 for new babies. ( Amy Hawkins, “China’s kindergarten numbers shrink as policymakers struggle to arrest falling birthrate,” The Guardian, 28 October 2024)

CHINA & THE AMERICAS
Brazil decides not to join BRI 
On  29 October, SCMP reported that the Government of the Federative Republic of Brazil had decided not to join the Belt and Road Initiative(BRI) by the Government of the People’s Republic of China. The Special Advisor for International Affairs to the President of Brazil, Celso Amorim informed that Brazil wanted to use alternative methods for collaborating with Chinese investors. Amorim informed the aim was to use the BRI framework to find synergy between  Brazillian infrastructure projects and investment funds associated with it, without formally joining the BRI. He further stated that Brazil did not want to use Chinese infrastructure and trade projects as an insurance policy.  The decision by the Brazilian government against joining BRI contradicted plans by the Chinese government to make the joining of BRI a centrepiece of the state visit by the President of China, Xi Jinping to Brazil. The Brazilian government believes joining the BRI will not bring any tangible benefits for Brazil. Additionally, it is of the view that Brazilian membership in BRI would make relations with the US difficult if Donald Trump returns to the presidency. ( Igor Patrick, “Brazil backs away from joining China’s belt and road but keeps funding door ajar,” South China Morning Post, 29 October 2024)

CHINA & EUROPE
Finland President arrives in China for a state visit
On 28 October, the President of Finland, Alexander Stubb arrived in China for a four-day state visit.  Stubb is visiting China from 28 to 31 October, at the request of the President of China, Xi Jinping. Stubb is scheduled to discuss China-Finland bilateral relations and issues of mutual interest with the Premier of China, Li Qiang, and the Chairman of the Standing Committee of the National People’s Congress, Zhao Leji. The visit by Stubb also coincides with the 74th anniversary of the establishment of diplomatic ties between China and Finland. (“Finnish President arrives in Beijing for state visit,” CGTN, 28 October 2024)

INTERNAL
Xi chairs CPC meeting on disciplinary inspection report
On 28 October, the President of China Xi Jinping chaired a meeting by the Political Bureau of the Communist Party of China (CPC) Central Committee. The objective of the meeting was to review a report on the third round of disciplinary inspections launched by the 20th CPC Central Committee. According to a statement by the Committee, the inspection results showed the CPC building of central Party and state departments and centrally administered financial institutions was strengthened.  However, the statement also informed issues remained, that needed to be addressed for the promotion of high-quality development. Additionally, CPC members were requested to improve political responsibility and carry out reform tasks with determination. The meeting also stated the root causes and enabling conditions of corruption needed to be eradicated. (“Xi chairs CPC leadership meeting to review disciplinary inspection report,” CGTN, 28 October 2024)

OUTERSPACE
China to launch manned spaceflight mission with first female engineer
On 29 October, Global Times reported that the Government of the People’s Republic of China had informed it would launch the Shenzhou-19 manned spaceflight mission. The mission is to be led by veteran astronaut Commander Cai Xuzhe. Additionally, another astronaut Song Lingdong and the first Chinese female spaceflight engineer Wang Haoze are part of the mission. The Sixth Academy of Chinese space contractor China Aerospace Science and Technology Corp (CASC) is scheduled to escort the astronauts with its engine products, like main propulsion and attitude-orbit control engines. A spokesperson for the China Manned Space Agency (CMSA), Lin Xiqiang informed the batch of Chinese astronauts would be responsible for executing the manned lunar missions of China. Lin also stated the astronauts underwent rigorous training, including mastering specialized skills like space science experiments and extravehicular activities. ( Deng Xiaoci and Fan Wei, “China introduces its first female spaceflight engineer as it unveils launch time, crew for Shenzhou-19 manned mission,” Global Times, 29 October 2024)

CHINA & SOUTH ASIA
Chinese experts state India's External Minister's remarks show mutual efforts needed for China-India border dispute resolution, reports Global Times
On 28 October, Global Times reported that Chinese analysts had stated the recent remarks by the Minister of External Affairs of India, S Jaishankar showed both China and India needed to make mutual efforts for a resolution to the border dispute. Jaishankar had earlier stated that the disengagement of troops at two border areas was the first step. According to Jaishankar, the next step of de-escalation would occur only if China made efforts towards the same as well. A professor from the School of International Relations at Sichuan International Studies University, Long Xingchun stated that Jaishankar must not put unilateral blame on China for the dispute. The Deputy Director of the Centre for South Asian Studies at Fudan University, Lin Minwang stated that the remarks by Jaishankar showed there was still a lack of mutual trust between China and India. Lin also informed that the Government of the People’s Republic of China had always adhered to the principles of equality and mutual respect during negotiations. ( Liu Xin, “Jaishankar’s remarks show joint efforts needed to overcome accumulated mistrust, implement resolution on China-India border issues: expert,” Global Times, 28 October 2024)

CHINA & SOUTHEAST ASIA
China urges more ASEAN collaboration to improve biosecurity, reports SCMP
On 29 October, SCMP reported that the Government of the People’s Republic of China had encouraged more collaboration with countries from Southeast Asia, on the issues of improving biosecurity and the governance of bioweapons.  A spokesperson for the Ministry of Foreign Affairs of the People’s Republic of China, Lin Jian informed 11 Southeast Asian countries and China had agreed to improve communication in biosecurity governance during a regional workshop in Shenzhen. Additionally, Lin stated the countries had agreed to improve the implementation of the United Nations-backed Biological Weapons Convention (BWC). Additionally, Lin stated China and the Southeast Asian countries would improve mutual understanding, and promote the modernisation of the biosecurity governance system through building a political consensus. The Deputy Director of the Global Biosafety Governance Research Centre at China Foreign Affairs University, Li Fujian informed that China needed to strengthen cooperation with its neighbours, to tackle biosecurity issues like infectious diseases and animal epidemics. The Head of the Arms Control Department at the Chinese Foreign Ministry, Sun Xiaobo stated the Chinese government was open to contribute more towards global bioweapon control efforts. ( Zhao Ziwen, “China calls for closer Asean cooperation to lower biosecurity and bioweapons risks,” South China Morning Post, 29 October 2024)

Vietnamese approach to China emphasises cooperation and protection of interests, states an op-ed in East Asia Forum
On 28 October, an opinion in East Asia Forum stated that the Government of Vietnam was following a nuanced approach, concerning its relations with the Government of the People’s Republic of China.  The Vietnamese government maintains close political and economic ties with China. However, it is also strict about protecting its interests and resisting the growing Chinese encroachment in the South China Sea. This approach uses the geographical proximity and historical ties of Vietnam to China, to promote growing economic interdependence and strong political ties between the two countries.  The opinion mentioned how the Vietnamese and Chinese communist parties had party-to-party channels to foster cooperation However, this strategy also uses military modernisation and closer defence cooperation with regional powers to offset Vietnam’s lack of formal allies and its proximity towards China. The op-ed stated that the Vietnamese government focused on upgrading its navy and consolidating defence cooperation with regional partners like the US. However, the op-ed also informed the Vietnamese government was aware of its weaknesses with China, preferring not to publicise encroachments by the Chinese coast guard. The op-ed concluded that Vietnam needed to maintain the balance in relations, and a major shift in relations would occur only when the government saw a balance in its favour. ( Hanh Nguyen, “Cooperation and struggle define Vietnam’s approach to China,” East Asia Forum, 28 October 2024)

CHINA & THE AMERICAS
John Mearsheimer expresses hope for cordial China-US ties
On 28 October, Global Times reported that professor and international relations scholar John Mearsheimer expressed his desire for China-US ties to improve in the future. During an interview with Global Times, Mearsheimer stated that the structure of the international system had changed fundamentally, with a multipolar world the reality now.  He also informed the relationship between China and the US was intensely competitive and expressed fears the relationship would escalate into a war. According to Mearsheimer, the foreign policy of the US with actions like bringing Ukraine to the NATO alliance and not pushing for a Palestinian state promoted chaos rather than global stability. Additionally, he stated the functioning of international politics meant that two powerful states like the US and China would end up fearing each other and competing with each other. Mearsheimer also informed the security cooperation between China and the US would not go away. He stated major crises were likely as a result of the security competition between the two states. (Liu Xin, Zhao Juecheng, Zhang Changyue and Yang Sheng,  “John Mearsheimer says he hopes future China-US ties could prove him wrong on tragedy of great power conflict,” Global Times, 28 October 2024)

Republican Party members oppose China despite own business ties, states an op-ed in The Guardian
On 28 October, an op-ed in The Guardian informed that several candidates from the Republican Party had taken a tough line over the threat which China posed to the US economy.  However, several Republicans hold close business and investment links with China themselves.  An example of this is the Republican candidate for the US Senate in Pennsylvania, David McCormick. Despite McCormick’s opposition to business ties with China,  the Chinese holdings of the hedge fund Bridgewater Associates increased from USD 1.6 million to USD 1.77 billion while McCormick was the Chief Executive Officer (CEO).  Similarly, the family of the Republican candidate for the Senate from Wisconsin Eric Hovde attempted to launch an investment vehicle in China, despite Hovde accusing China of buying up land around military bases.  There are other Republican Senate candidates too like Mike Rogers in Michigan and Tim Sheehy in Montana who have stated opposition to China, despite business interests of their own with Chinese firms. Another example is the current Senator and former Governor of Florida, Rick Scott who previously supported Chinese investment in the US despite profiting off Chinese commerce personally. ( Martin Pengelly, “Many Republicans take a tough line on China despite their own business ties to Beijing,” The Guardian, 28 October 2024)

Bridgewater CEO with a large perspective on patriotic hazards, reports The Guardian
On 29 October an opinion in The Guardian titled “Many Republicans take a tough line on China despite their own business ties to Beijing,” looked into the Republican candidate for the US Senate in Pennsylvania’s statement that the CEO of Bridgewater Associates had a larger perspective and opinion about the moral and patriotic hazards of running a business in China. According to a CNN report from 2017 and 2021, uncertainties did not stop McCormick from supervising the Chinese increase of assets from USD 1.6 million to USD 1.77 billion. As a Deputy National Advisor for international economic affairs under George W Bush, it was believed that McCormick managed investment in a Chinese fentanyl producer and benefitted from Chinese trade policies which he helped to shape. Rejecting allegations of any offence McCormick pitches claims of two facades back at his opponent, the incumbent Democrat Bob Casey, over his links for investing in Chinese companies and other countries. In Michigan, the former US House Intelligence Committee stated that McCormick raised the alarm on Chinese threat over economic and national security, while the Detroit News reports said: “That intelligence committee chair Mike Rogers and his wife have gained hundreds of thousands of dollars in wealth through companies that have partnered with Chinese firms. Heartland Signal has highlighted Rogers’ ties with Nokia, a Finnish telecoms firm that “has conducted extensive business deals with Chinese tech companies like Huawei, which is subject to US sanctions.” However, Rogers denied any sort of misconduct and alleged that Elissa Slotkin had signed an NDA with an electric vehicle battery plant in Big Rapids to be built by a Chinese Communist party. Additionally, a Scottish spokesperson confronted the outlet and stated that the senator would be happy to put charges against Democrats pushing Joe Biden’s pro-China agenda.” (“Many Republicans take a tough line on China despite their own business ties to Beijing,” The Guardian, 29 October 2024)

China Reader | 28 October 2024, Monday| Vol.1 No. 199
CHINA & SOUTH ASIA
India and China initiate disengagement process after four-year military standoff
On 27 October, India and China began dismantling temporary structures at Depsang Plains and Demchok in eastern Ladakh. This is the first major de-escalation since the 2020 military standoff. External Affairs Minister Jaishankar stated that troops had been stationed under “very very unimaginable conditions” to defend Indian territory. The agreement revives patrolling rights at these friction points, where Chinese forces had earlier denied Indian access to patrolling points 10 to 13 in Depsang Plains and have maintained a presence at Charding Nullah in Demchok. According to reports, about 40 per cent of temporary structures have been removed, with expectations of 60 per cent clearance by Friday’s end. This development follows Prime Minister Modi and President Xi Jinping’s first bilateral meeting in five years at the BRICS 2024 Summit in Kazan, Russia. Modi stressed that “mutual trust, mutual respect and mutual sensitivity will guide bilateral relations.” Chinese Foreign Ministry spokesperson Lin Jian confirmed the process is “going smoothly,” though Jaishankar cautioned that full normalisation of relations would “naturally take time.” (“After India, China confirms troop disengagement along LAC: ‘Going smoothly at the moment’,” Indian Express, 27 October 2024; Surabhi Pandey “India, China to complete disengagement process by next week, 40% temporary structures removed along LAC,” Money Control, 25 October 2024)

INTERNAL
China quietly reverses stance on private tutoring ban amid economic concerns, says an editorial in Reuters
On 28 October, an editorial in Reuters reported that China is easing its position on its 2021 private tutoring ban without any previous acknowledgement. The original “double reduction” policy banned for-profit extracurricular tutoring for core subjects. It devastated a USD 100 billion industry and led to massive job losses at some of China’s largest providers like New Oriental and TAL Education. More recent developments suggest a shift in Beijing’s stance. Industry officials stated that there were fewer inspections and more visible policies of management, while parents expressed that tutoring centres are blatantly doing their business. One of the parents, Michelle Lee said: “When the policy first came out, tutoring organizations were a little scared so they would close the curtains during class. But it seems like they do not do that anymore.” Economical factors, especially alarming youth unemployment seem to spur the changes. Active extracurricular tutoring centre licenses increased by 11.4 per cent early in 2023, and major companies are hiring again. Most adapted by renaming core subjects, for example, marketing mathematics as “logical thinking”, while others switched to private home tutoring. (Casey Hall and Laurie Chen, “China's private tutoring firms emerge from the shadows after crackdown,” Reuters, 28 October 2024)

China’s plummeting birth rate triggers educational institution closures and demographic crisis, reports SCMP
On 27 October, the South China Morning Post reported that China’s demography problems are becoming more serious with kindergarten enrollment going down. This is with 5.35 million fewer children than last year enrolled, bringing the total to 40.9 million. It was seen that 14,808 closing kindergartens left only 274,400 operational and primary schools reported a reduction of 3.8 per cent. These closures reflect an even wider population crisis within China as births fell last year to an all-time low of 9 million. The fertility rate has fallen below 1.0 which is is far from the 2.1 replacement level needed for population stability and Shanghai has a mere 0.6. A recent survey in Ningbo was concerning where nearly half of the childless women wanted only one child and more than a third wanted no children at all. A demographer,  He Yafu concluded that kindergartens should look forward to “expanding early childhood education to include children under three and establishing an integrated care-education system.” (Luna Sun, “Thousands of Chinese kindergartens close as falling birth rate takes its toll,” South China Morning Post, 27 October 2024)

SCIENCE & TECHNOLOGY
China’s advanced deep-sea research vessel completes successful trial voyage
On 26 October, China’s pioneer vessel, Tansuo-3, performed better than the design expectations across the 30 test categories during the eight-day trial. This 104-metre ship of 10,000 tonnes represents a huge leap in the maritime technology of China. The vessel holds 80 people and travels a distance of 15,000 nautical miles in both directions at a pace of up to 16 knots with icebreaking features. This is a product of China that has an integration of deep-sea research capabilities with archaeological features and polar exploration. Tansuo-3 is set to be delivered in early 2025 and is an important step that China takes towards the expedition of the seas and in manned deep sea operations and polar research. (“China's first deep-sea research and archaeological ship completes trial trip,” CGTN, 28 October 2024)

ECONOMY
China’s central bank reveals new lending tool to address year-end liquidity challenges
On 28 October, the People’s Bank of China (PBOC) introduced an open market outright reverse repo facility to support the liquidity of the banking system as 2.9 trillion yuan (USD 406.6 billion) in medium-term loans mature by the end of the year. The new instrument features tenors of three and six months and is the biggest modernisation effort undertaken so far in the monetary policy framework of China. The senior economist of the Economist Intelligence Unit, Xu Tianchen, said: “It's a step to modernize the PBOC's policy toolbox and bring it more in line with” Western standards. It goes beyond regular seven-to-28-day reverse repo operations, which it conducts monthly with the assistance of primary dealers. The move fits with the broader efforts Beijing announced in September to achieve the government’s 5 per cent growth target amid property market challenges and weak consumer confidence. (Joe Cash, “China launches new lending tool before year-end loan expiry,” Reuters, 28 October 2024)

Pakistan seeks additional Chinese funding amid economic challenges
On 27 October, the Finance minister of Pakistan, Muhammad Aurangzeb asked for an additional currency swap arrangement of 10 billion yuan (USD 1.4 billion from China). That is due to Pakistan using up an already available 30 billion yuan (USD 4.3 billion) facility that China offered to extend for three years. The proposal will take the total facility up to about USD 5.7 billion. This is during the visit of Chinese Premier Li Qiang for a major four-day visit to Pakistan. This is the first time a Chinese Premier has been to Pakistan in 11 years, where talks have been held regarding strengthening economic cooperation and acceleration of China-Pakistan Economic Corridor projects with President Asif Ali Zardari. (“Pakistan seeks additional 10 billion yuan loan from China: Report,” Business Standard, 27 October 2024)

India imposes anti-dumping duties on Chinese imports to protect domestic industry
On 23 October, Business Standard reported that India levied five-year anti-dumping duties on Chinese products of isopropyl alcohol, sulphur black, cellophane transparent film, thermoplastic polyurethane, and unframed glass mirrors. The duties are USD 82 to USD 389 per tonne for the items. The imports of cellophane film in 2023-24 stood at USD 60 million and has attracted a USD 1.34 per kg duty. The Directorate General of Trade Remedies has instituted probes against six other products from China, which comprises chemicals and electrical steel among others, at the complaint of the local industries. India plans to have equal trade policies in the region while offering protection to its indigenous firms against imports made available at lower costs than domestic pricing. India’s rising complaints about its heavy trade deficit against China to the tune of USD 85 billion during 2023-24 are on the backdrop that both belong to the WTO group of nations. (“Govt imposes anti-dumping duty on five Chinese products for 5 years,” Business Standard, 23 October 2024)

CHINA & EUROPE
Finland’s President’s China visit marks new chapter in bilateral relations, reports Global Times 
On 27 October, Global Times reported that Finland’s President Alexander Stubb’s visit on 28 October marks the 74th anniversary of diplomatic relations between China and Finland. Stubb is scheduled to hold meetings with President Xi Jinping, Premier Li Qiang, and National People’s Congress Standing Committee Chairman Zhao Leji from 28 to 31 October. Finland is the third-largest Nordic trading partner of China to have achieved bilateral trade of USD 8.2 billion in 2023. It has pursued a pragmatic course in China-EU relations and abstained from recent Chinese EV tariff votes. A professor at Beijing Foreign Studies University Cui Hongjian, said Finland’s: “unique positions and policies when dealing with major powers” would lead to stable relations with China. The delegation, which includes the ministers of climate, agriculture, and foreign affairs aims to deepen the cooperation in technology, sustainable development, and green transformation. A director at the China Institute of New Economy Zhu Keli, insisted that there is also complementarity between Finland’s technological expertise and China’s manufacturing capabilities. (Fan Anqi, “Finnish President to start China visit; ‘move contributes to China-EU relations at time of turbulence’,” Global Times, 27 October 2024)

CHINA & THE AMERICAS
China vows measures to counter US weapons sale to Taiwan, reports Al Jazeera
On 27 October, Al Jazeera reported that the Government of the People’s Republic of China had promised to take all necessary measures to assert its sovereignty over Taiwan. The remarks by the Chinese government came after the US State Department approved a USD 2 billion arms sale package for Taiwan, which included advanced surface-to-air missile systems and radar. The Ministry of Foreign Affairs of the People’s Republic of China accused the arms sale package of violating the sovereignty and security interests of China, alongside damaging China-US relations and endangering peace and stability in the region. The ministry further informed that the Chinese government would take all the necessary measures required to defend its national sovereignty, security, and territorial integrity. A spokesperson for the foreign ministry informed Beijing had voiced its opposition to the arms package with the US Government. (“China vows to take ‘necessary measures’ over $2bn US arms sale to Taiwan,” Al Jazeera, 27 October 2024)

China-born US citizens change political stance over land laws, reports AP News
On 27 October, AP News reported that a series of “alien land laws” passed in the US targeting Chinese nationals had compelled China-born US citizens to shift their political affiliations. At least two dozen states passed the laws, which impose restrictions on purchases of property and land by Chinese nationals and companies. The status of China as an adversary for the US is cited as the reason for the ban, which is primarily initiated by the Republican Party.  Similarly, the US House of Representatives controlled by the Republicans approved a bill that would flag as reportable sales of farmland from countries deemed US adversaries, including China. However, Chinese-born US citizens who voted for the Republicans feel alienated as a result of these laws and are leaning towards the Democratic Party. The Chinese diaspora mobilised against the law, with organisations like the Florida Asian American Justice Alliance and United Chinese Americans helping drive civic engagement. The board chair of United Chinese Americans, Hua Wang informed individuals from the diaspora were becoming interested and organised politically for the first time; as a result of the laws perceived as discriminatory. ( Terry Tang and Didi Tang, “State alien land laws drive some China-born US citizens to rethink their politics,” AP News, 27 October 2024)

China Reader Daily Wire | 26 October 2024, Saturday  | Vol.1 No. 198
OUTERSPACE
Chinese outer space startup sells first tickets for commercial tourism
On 25 October, a Jiangsu-based startup called Deep Blue Aerospace sold its first two tickets at 1.5 million yuan (USD 210,000) each for a 2027 suborbital flight. The journey will take 12 minutes with five minutes of weightlessness. Tickets were sold out within 20 minutes on Taobao. Chairman Huo Liang said even lower prices would be achievable when reusable rocket technology becomes available, and space travel will be within reach of the masses. The company will undertake extensive safety trials over the next two years before starting to launch commercially. The product is already competitively placed at the price point when you compare it with Virgin Galactic which charges USD 600,000 for a seat. There is excitement for the relatively more affordable prices on social media. One Weibo user said: “It seems that Chinese companies might soon drive down prices in the space tourism sector, making space travel far more affordable.” The company acknowledges that there is complexity and risk but remains committed to safety through proper testing protocols. (Meredith Chen, “Chinese space tourism set for 2027 take-off with the aerospace firm offering US$210,000 seats,” South China Morning Post, 25 October 2024)

SCIENCE & TECHNOLOGY
China holds BeiDou Navigation System Summit with 1800 global experts
On 24 October, the third International Summit on BeiDou Navigation Satellite System (BDS) in Zhuzhou witnessed more than 1,800 global experts. They explored China’s satellite navigation system which has grown fast since its establishment in 1994 and completion into the third phase in 2020. Since its full implementation, BeiDou established itself as the world’s third independent global navigation system. The National Development Reform Commission’s Xiang Libin stated that BDS applications have achieved over 90 per cent penetration in key industries like transportation and emergency response. Its products and services have covered over 130 countries, indicating the international nature of the system. According to the White Paper on the Development of China's Satellite Navigation and Location Services Industry (2024), the output value of the industry was 536.2 billion yuan in 2023, with an increase of 7.09 per cent compared to the previous year. (“China hosts summit to boost homegrown BeiDou navigation system applications,” CGTN, 26 October 2024)

INTERNAL
Chinese Court sentence death penalty to child trafficker
On 25 October, BBC reported that a recent verdict from a Chinese court confirmed the death sentence of Yu Huaying, who had shocked the nation with her child trafficking business in the 1990s. She was first accused of selling 11 children. Later on, the investigation found she had sold 17 children, including her son for a sum of 5,000 yuan. Perhaps the most interesting part of this is when Yang Niuhua, who was sold for 3,500 yuan in 1995, uses Douyin to search for her family, only to find out her parents have died. Yu’s operations formed a complex network of extracting children from Guizhou, Yunnan, and Chongqing provinces and selling them in Hebei Province. There was also the case of Luo Xingzhen who waited twenty years at her shoe repair stall for two children who never came back. Luo’s crimes were considered “particularly heinous” with “extremely deep subjective malice” even though she had confessed. Yu received a sentence that included a lifetime loss of political rights and all property. (Joel Guinto, “Chinese child trafficker with 17 victims sentenced to death,” BBC, 25 October 2024)

ECONOMY
Chinese banks implement landmark mortgage rate cuts to boost the housing market, reports CGTN
On 25 October, China’s major financial institutions rolled out significant mortgage rate reductions, with six leading banks cutting existing mortgage rates at least 30 basis points below the loan prime rate. The Central Bank Deputy Governor, Tao Ling stated that the adjustment is automatic, without the requirement of any customer application, and is expected to benefit 50 million households and save them approximately 150 billion yuan in interest payment. For instance, in Beijing, mortgage rates have been lowered from 4.4 per cent to 3.55 per cent, saving a person millions of yuan. For example, a 25-year, million-dollar mortgage will save 469 dollars a month and more than 140,000 yuan in total interest. The stimulus program, as part of bigger stimulus packages, has already begun to pay off. Major cities’ housing sales are up, supporting China’s goals of boosting domestic consumption and investment. (“China's banks cut existing mortgage rates to support real estate,” CGTN, 25 October 2024)

CHINA & EUROPE
EU and China to further navigate negotiations over EV tariffs, reports Reuters
On 25 October, reports Reuters that the European Union is preparing to implement up to 35.3 per cent tariffs on Chinese-built electric vehicles. China and the EU are intensifying diplomatic efforts to find alternative solutions. The parties agreed to conduct further technical talks, building on eight previous rounds of negotiations after a video conference between EU trade chief Valdis Dombrovskis and Chinese Commerce Minister Wang Wentao. The sessions consisted of potential minimum price guarantees and alternative investment options for Europe. Although China invites EU negotiators and demands price guarantees as the preferred solution, it advises against separate negotiations with companies. The EU maintains its right to negotiate directly with single exporters via the China Chamber of Commerce for the Import and Export of Machinery. Other tensions continue in the investigations by China on EU brandy, pork, and dairy products which Dombrovskis termed “unsubstantiated,” though China defends them as WTO-compliant. (“EU, China agree to more talks on potential alternatives to EV tariffs,” Reuters, 25 October 2024)

CHINA & THE AMERICAS
China-Cuba relations strengthen through high-level party dialogue and cooperation
On 25 October, CGTN reported that the visit of the Head of the CPC Central Committee’s Publicity Department Li Shulei, to Cuba marked significant progress in bilateral relations between the two nations. During meetings with Cuban President Miguel Diaz-Canel and other key officials, Li conveyed greetings from President Xi Jinping and brought attention to the importance of implementing the consensus reached earlier between both sides. The discussion on deepening traditional ties while working towards a shared future will be on mutual core interests. Diaz-Canel thanked China for its support in Cuba’s development and promised to promote party-to-party exchanges and practical cooperation. Li’s schedule included meeting with National Assembly President Esteban Lazo Hernandez, Revolution leader Raul Castro, and attending a theoretical seminar in Havana titled “Advancing the Socialist Cause and Building a Shared Future.” (“Cuba's top leader meets senior Chinese official,” CGTN, 25 October 2024)

US Navy adapts PAC-3 for maritime defence against Chinese hypersonic threats, says an editorial in Reuters
On 25 October, an editorial in Reuters reported that the US Navy is going forward with plans to arm its ships with Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement interceptors conventionally used by the Army to counter the evolving China hypersonic weapons capabilities. After successful tests conducted against a “virtual Aegis ship” in May, these Lockheed Martin-made interceptors have capabilities unmatched with highly manoeuvrable steering rockets and “hit to kill” technology. The proven capability of the PAC-3 in the destruction of advanced threats in Ukraine and the Middle East, including Russia’s Khinzal missiles, provides a good reason to introduce these interceptors into naval defence systems. The interceptors weighing 300 kg cost approximately USD 4 million each and are much lighter than the 1,500 kg SM-6 missiles. This directly responds to China’s expanding arsenal, especially the DF-27 missile tested in 2023, which can reach 8,000 km and employs an aerodynamic warhead designed to evade defences. The US has also partnered with Japan for joint missile production to meet increasing demand. (Mike Stone and Gerry Doyle, “Fearing China's hypersonic weapons, US Navy seeks to arm ships with Patriot missiles,” Reuters, 25 October 2024)

Anonymous tip alleges phones of Kamala Harris allies were targeted by Chinese hackers, reports Reuters
On 26 October, Reuters reported that an anonymous source had alleged that the phones of allies of the presidential candidate from the Democratic Party, Kamala Harris were targeted by Chinese hackers. According to media reports, the phones of the presidential and vice-presidential candidates from the Republican Party, Donald Trump and JD Vance were also targeted. The New York Times reported that during their presidential campaign, Trump was made aware of the targeting of phone numbers. The Embassy of the People’s Republic of China in the United States responded to the hacking claims by stating it had no intention of interfering in the US elections. The embassy also stated it was opposed to all forms of cyber-attacks and cyber thefts. Additionally, the Federal Bureau of Investigation (FBI) and the US Cybersecurity and Infrastructure Security Agency informed they were investigating unauthorized access to commercial telecommunications infrastructure by individuals affiliated with China. ( Trevor Hunnicutt and Jasper Ward, “Chinese hackers targeted phones affiliated with Harris campaign, source says,” Reuters, 26 October 2024)

US Secretary of Treasury and China’s Vice Minister of Finance discuss macroeconomic policy developments, reports SCMP
On 26 October, SCMP reported that the US Secretary of the Treasury, Janet Yellen, and the Vice-Minister of Finance of the People’s Republic of China, Liao Min had held a meeting where macroeconomic policy developments were discussed. The Ministry of Finance of the People’s Republic of China informed that it had used the meeting to explain the current macroeconomic situation of China, and the stimulus measures introduced recently by the Government of the People’s Republic of China. The ministry stated it had voiced its concerns over US tariffs imposed on China, and sanctions related to Russia. Additionally, the ministry also informed the meeting had witnessed constructive and pragmatic talks on issues like cooperation to help low-income countries cope with liquidity challenges. The Treasury Department informed Yellen had reiterated concerns by the US Government about alleged industrial overcapacity in China, and its impact on American workers and firms. The meeting between Yellen and Liao is the sixth of a working group created last year, to facilitate better communication between the Chinese and US economies ( Khushboo Razdan and Alyssa Chen, “Janet Yellen, senior China finance minister discuss Beijing’s economic stimulus measures,” South China Morning Post, 26 October 2024)

China Reader Daily Wire | 25 October 2024, Friday | Vol.1 No. 197
BRICS  
Xi Jinping charts BRICS’ path toward global transformation at Kazan Summit, says an editorial in CGTN
On 23 October, an editorial in CGTN looked at the 16th BRICS Summit in Kazan, Chinese President Xi Jinping posed an important question on the world’s future direction, emphasising the choice between chaos and peace. The five-point agenda of BRICS leadership in peace, innovation, green development, global justice, and international exchanges was presented. Several new initiatives for China include new programs such as the BRICS AI Development Center and Deep-Sea Resources Research Center. Xi was calling for real multilateralism while highlighting the international movement of power that has yet to present a real change in the reformation of global governance. The meeting covered UN reform, financial security, and the blast of new technologies. Experts in Ethiopia, Balew Demissie and in Egypt, Nadia Helmy, welcomed Xi’s recommendations to solidify Global South cooperation. For 18 years, China has been enhancing BRICS trade, investment, and international institutional reform advocacy. (“Experts: President Xi's BRICS speech offers a roadmap for Global South cooperation,” CGTN, 24 October 2024)

CHINA & SOUTHEAST ASIA
China states it wants a diplomatic resolution to the dispute with Indonesia, reports SCMP
On 24 October, SCMP reported that the Government of the People’s Republic of China had informed that it wanted to resolve its maritime differences with the Government of Indonesia through diplomacy. The statement came after the maritime patrol and rescue agency of Indonesia, Bakamla informed it had escorted a vessel from the China Coast Guard twice in the disputed North Natuna Sea area. China claims sovereignty over the entire South China Sea through the “nine-dash line” which cuts into the exclusive economic zone of Indonesia. Bakamla stated the vessel had disrupted seismic survey and data processing activities being carried out in the area. However, a spokesperson for the Ministry of Foreign Affairs of the People’s Republic of China, Lin Jian informed the vessel was carrying out routine patrols in waters under the jurisdiction of China and in line with international law and the domestic law of China. Lin also informed that the Chinese government was ready to improve its communication and consultation with Indonesia through the use of diplomatic channels, and properly handle maritime disputes between the two countries. (Phoebe Zhang, “China looks to Indonesia for diplomatic resolution after coastguards’ Natuna encounters,” South China Morning Post, 24 October 2024)

ECONOMY
Hedge Funds pivot from China to US markets in October, reports Reuters
On 25 October, Reuters reported that Global hedge funds turned sharply in October, exiting Chinese and emerging markets while increasing their holdings of US equities. Goldman Sachs stated that funds have reversed about 80 per cent of their peak investments into Chinese equities to 23 October. Following the stimulus measures that enhanced China’s markets by 20 per cent last month, investor sentiment cooled off as the partial policies’ details were meager, with the risks due to the probability of a Trump presidency. The MSCI China index declined by 4 per cent in October while advancing 23 per cent the previous month. Funds also reduced their investments in India, Taiwan, South Korea, and Latin America. Hedge funds reduced leverage to its lowest level in a year as they expressed discontent over US election volatility. On the performance side, global stock-picking funds rose 0.6 per cent in October as systematic equity funds fell by 0.9 per cent. (Summer Zhen, “HEDGE FLOW Hedge funds have cut most Chinese stock purchase since late September, says Goldman,” Reuters, 25 October 2024)

DEFENCE
China reveals comprehensive dual-use export control regulations to balance trade and security, reports Ministry of Commerce
On 24 October, a spokesman from China’s Ministry of Commerce He Yadong stated that dual-use exports will cover “the products, technologies, and services with both civilian and military applications.” The rules, effective as of 01 December, 2024, represent an effort to strengthen China’s export control system while keeping the standard par with that of the world. The State Council decree, signed last month in September, gives attention to such issues as the increase of transparency and normalisation of rules concerning exports. The officials of the Ministries of Justice and Commerce stated that measures will not disrupt normal international trade and scientific cooperation, and they will not disrupt global chains of supply. The regulations also give concrete license management provisions, control lists, and mechanisms of supervision. As said by the authorities, it is quite a matter of balancing the promotion of trade and security, precisely about items that may have applications in weapons development. (“Dual-use items export control measures are in line with international norms: MOFCOM,” Global Times, 24 October 2024)

Advanced Twin-tailed Scorpion B drone set to headline Airshow China 2024, reports Global Times
On 24 October, Global Times reported that the latest unmanned aerial system from Sichuan Tengden Co is expected to be revealed for the first time during Airshow China 2024. It is currently scheduled to be held in Zhuhai. This heavy drone boasts a large 18-meter wingspan and carries a range of over 8,500 kilometers. It will boast superior short-range takeoff and high-altitude ability and capabilities such as emergency rescue and air transport missions. It weighs up to 1,950 kilograms at full capacity. Composite material is mainly used in its manufacturing. Chinese advanced drone technology will also be revealed including two new transport drones, a twin-engine model with a deployment capacity of two tons on the plateau, and the Twin-tailed Scorpion D, capable of carrying 1,000 kilograms. Aerospace Knowledge magazine’ Chief Editor Wang Ya'nan stated that these developments highlight China’s advanced drone technology and its commitment to developing the low-altitude economy. (Liu Xuanzun, “Twin-tailed Scorpion B, large transport drones to make debut at Airshow China 2024,” Global Times, 24 October 2024)

CHINA & SOUTHEAST ASIA
China’s active intervention in Myanmar as rebel groups gain ground, says an editorial in Reuters
On 25 October, an editorial in Reuters reported that the successful holding of Operation 1027 by the Three Brotherhood Alliance drastically revamped Myanmar’s military landscape. This was especially after the historic takeover of Lashio in August 2023. China’s position has now changed from implicit acceptance of rebel activities to active intervention. It has enforced border closures and restricted supplies to rebel-controlled territories. The cause for concern here is that Myanmar’s military junta is deteriorating rapidly on Chinese radar. Instability is evident in the unprecedented rotation of commanders with 49 in post-coup and 36 in pre-coup, as per the reports of  MWRP. The worsening scenario following Lashio’s fall was such that Chinese Foreign Minister Wang Yi had to visit junta leader Min Aung Hlaing, reportedly stating China opposed chaos in the region. Rebel forces are looking to push toward Mandalay but the pressure from Beijing has already prompted the MNDAA to state its readiness to accept a ceasefire. US Institute of Peace analyst Jason Tower said:  “China has now become even more proactive and shifted its posture quite remarkably.” Discussion has focused on the way Beijing is increasingly playing a role in Myanmar’s conflict dynamics. (Shoon Naing, Wa Lone, Devjyot Ghoshal, Poppy Mcpherson, and Antoni Slodkowski, “How an anxious China is backing Myanmar's faltering junta in civil war,” Reuters, 25 October 2024)

CHINA & SOUTH ASIA
Rising security concerns challenge China-Pakistan economic partnership, says an editorial in SCMP
On 25 October, an editorial in South China Morning Post reported that the recent attacks on Chinese citizens in Pakistan, the latest being the deadly Karachi airport blast, have raised questions over future bilateral investments. Despite investing USD 65 billion under the China-Pakistan Economic Corridor (CPEC), security challenges persist, especially in the Balochistan province. Lanzhou University’s Professor Zhu Yongbiao said: “this situation may lead to a fundamental change" in the investment pattern. While Chinese Premier Li Qiang’s October visit brought security pacts for bulletproof vehicles, China’s direct security involvement remains limited. Nanyang Technological University’s research fellow, Abdul Basit said: “Pakistan won't allow China to operate outside of the Pakistani security framework.” In other words, Pakistan still strictly controls the country’s security architecture and will not lightly open that to the Chinese or any other country’s influence. While these constraints are significant, there is still reason for optimism. Chinese investment in Pakistan increased by 16 per cent in 2022, albeit to only USD 700 million, far below 2018 levels. Due to the worsening security situation, particularly since the Taliban took power in Afghanistan, it remains a significant challenge to this important Belt and Road Initiative partnership. (Zhao Ziwen, “China-Pakistan economic ties could change ‘fundamentally’ if attacks on Chinese continue,” South China Morning Post, 25 October 2024)

CHINA & THE PACIFIC
Australian PM dismisses Chinese claims of systemic racism in Australia, reports The Guardian
On 24 October, The Guardian reported that the Prime Minister of Australia, Anthony Albanese had dismissed claims by the Government of the People’s Republic of China that Australia was plagued with systemic racism and hate crimes. Albanese informed that the Government of Australia would cooperate with China wherever it could; but would also stand up for its interests and raise the issue of human rights with China. The present dispute between the two countries began after the Ambassador and Permanent Representative of Australia to the United Nations, James Larsen gave support to a joint statement by 15 countries including Australia, the US, and the UK; expressing concerns over human rights violations in China. Larsen urged the Chinese government to release all individuals under arbitrary detention in Xinjiang and Tibet and allow independent observers with unrestricted access to the two territories. In response, a spokesperson for the Ministry of Foreign Affairs of the People’s Republic of China, Lin Jian accused Australia and the other countries part of the joint statement of double standards by ignoring human rights issues in their own countries. Lin alleged that Australia suffered from systemic racism and hate crimes, and had violated the rights of refugees, immigrants, and Indigenous Australians living in Australia. ( Sarah Basford Canales and Karen Middleton, “Albanese dismisses Beijing’s claim Australia plagued by ‘systemic racism’ and ‘hate crimes',” The Guardian, 24 October 2024)

CHINA & EUROPE
Germany eyes investment in India as a way to reduce economic reliance on China, reports Reuters
On 23 October, Reuters reported that the Federal Government of Germany was looking at increasing its investments and trade with India. The Chancellor of Germany, Olaf Scholz is leading a high-level delegation to India this week, for consultations with the Government of India. Amidst worries that a slowing Chinese economy and trade dispute between China and the EU could hurt Germany, the German government is looking to reduce its economic reliance upon China. German businesses and companies are optimistic that the high economic growth of India, skilled and young worker base, and cheaper cost base could benefit Germany. The Federal Minister for Economic Affairs and Climate Action of Germany, Robert Habeck stated the resilience of German companies and their supply chains to and from Asia needed to be improved; and India was a key partner playing a role in the diversification of the German economy. However, the Chief Executive of Foreign Trade at the Association of German Chambers of Commerce, Volker Treier informed that German direct investments in India were about 20 per cent of the volume invested in China. According to Treier, Germany would not completely move away from China, but India would become more important from an economic perspective. According to a study by consultancy firm KPMG and the  German Chambers of Commerce Abroad, German firms regard bureaucracy, corruption, and the Indian tax system as hurdles towards investment in India. However, 82 per cent of firms expect an increase in revenues in the next five years, and 59 per cent are planning to expand their investments. Business and investment deals have already been agreed upon between German and Indian firms, and trade between Germany and India hit a new record in 2023. (Christian Kraemer, “Germany bets on India to reduce reliance on China,” Reuters, 24 October 2024)

CHINA & THE AMERICAS
National Security Advisor of the United States expresses concern over Chinese usage of AI, reports Reuters
On 24 October, Reuters reported that the National Security Advisor of the United States, Jake Sullivan had informed the U.S. government was concerned over the usage of Artificial Intelligence (AI) by China. Sullivan stated that Washington was concerned that the Government of the People’s Republic of China was building its technological ecosystem with digital infrastructure. According to Sullivan, the infrastructure could be used by China for mass surveillance and censorship, spreading misinformation and coercing other countries; and could not protect sensitive data effectively.  Sullivan also informed that a new directive by the US Government on AI aimed to alleviate these concerns and offer alternatives to developing economies and other partners. (“US concerned about China’s use of AI, says it could make countries vulnerable to coercion,” Reuters, 24 October 2024)

China Reader Daily Wire | 24 October 2024, Thursday | Vol.1 No. 196
CHINA & AFRICA
China furthers its partnership with Egypt
On 23 October, President Xi Jinping stated his willingness for a close partnership with Egypt for joint development. He also congratulated Egypt’s first-time participation as a full member in the 16th BRICS Summit. Xi also vowed to support and safeguard Egypt’s national sovereignty, security, and development matters on the 10th anniversary of the China-Egypt partnership. Xi said: “China is also willing to strengthen coordination with Egypt to promote the steady and long-term development of greater BRICS cooperation, further volume up the influence and voice of the Global South, and safeguard the common interests of developing countries.” Egyptian President Abdel-Fattah al-Sisi congratulated Xi Jinping on the 75th anniversary of the founding of China. Sisi also expressed his gratitude to China for its support in paving Egypt’s way to the BRICS. He also stated that Egypt would follow China’s ‘one-China principle’. Xi expressed his worries about the conflict in the Middle East and also stated that Palestine’s issue is the central element of such chaos. The implementation of relevant UN resolutions in the region was also stated as an important matter. Furthermore, Xi extended his gratitude to Egypt for its promotion of a ceasefire in the region. (“Xi says China to be sincere friend, close partner for joint development with Egypt,” CGTN, 23 October 2024)

EXTERNAL
China wants BRICS to become a tool for Global South solidarity, reports CGTN
On 23 October, CGTN reported that the Government of the People's Republic of China had called for the BRICS bloc to become a tool to be used for greater solidarity amongst the countries of the Global South. The President of China, Xi Jinping stated that the member countries of BRICS needed to work together to ensure that BRICS became the primary channel for improving solidarity and cooperation among countries of the Global South and a vanguard for advancing global governance reform. Xi also states that the enlargement of the BRICS bloc was a landmark event in the evolution of the international scenario. The Chinese president also urged the BRICS countries to act as guardians of common security and uphold the principles of no expansion of the battlefield, no escalation in fighting, and no provocation by any party to work towards de-escalation of the Ukraine crisis. In a similar light, the Ambassador of the People’s Republic of China to Russia, Zhang Hanhui stated that BRICS countries and the Global South stood on the side of peace, reconciliation, dialogue, and solidarity in the Ukraine crisis. Xi also urged an end to violence and an immediate ceasefire in Gaza and Lebanon, alongside increasing efforts for a lasting resolution to the crisis in Palestine. Another key point made by Xi was his demand for BRICS countries to advance the process of expanding membership and improve the representation of developing countries in global governance.  The ongoing BRICS summit in Kazan is the first to be held since Egypt, Ethiopia, Iran, and the UAE became official members of the bloc. (“China calls for building BRICS into a channel for Global South solidarity,” CGTN, 24 October 2024)

China criticises double standards of US and Australia on human rights, reports Global Times
On 23 October, Global Times reported that the Government of the People’s Republic of China had criticized the hypocrisy shown by Australia and the US, in matters about human rights. A spokesperson for the Ministry of Foreign Affairs of the People’s Republic of China, Lin Jian stated that the US, Australia, and a handful of other Western countries needed to address their own severe human rights problems, instead of politicizing the issues and using them as tools. Lin also urged the countries to play a constructive role in international cooperation in human rights. The Permanent Representative of the People’s Republic of China to the UN, Fu Cong accused countries like Australia and the US of double standards by ignoring the crisis in Gaza while smearing against China over human rights issues in Xinjiang. Fu stated this showed the true intentions of Australia and the US to use human rights as an excuse to interfere in the internal affairs of China and hamper its development. Fu also stated that the West ignoring the mass killings of Palestinians in Gaza showed it did not care about protecting the human rights of Muslims, as it claimed in the Xinjiang case. (“Chinese envoy criticizes Australia, US for ‘double standards’ on human rights, downplaying Gaza situation,” Global Times, 23 October 2024)

SCIENCE & TECHNOLOGY
Apple CEO informs of plans to increase investments in China, reports The Indian Express
On 24 October, The Indian Express reported that the Chief Executive Officer (CEO) of US tech conglomerate Apple, Tim Cook had informed that Apple would increase its investments in China. Cook made the remarks during a meeting with the Minister for Industry and Information Technology of the People’s Republic of China, Jin Zhuanglong.  Cook stated that Apple wanted to seize the opportunities provided by the opening up of the Chinese economy, and believed that increasing its investments in China would contribute to the high-quality development of industrial and supply chains. Jin also informed Cook that he hoped Apple would improve its presence in China, increase investment in innovation, and share the fruits of high-quality development with Chinese companies. Additionally, Jin and Cook discussed online data security management and cloud services during their meeting. (“Apple CEO Cook says the company will increase investment in China,” The Indian Express, 24 October 2024)

ENERGY AND ENVIRONMENT
Steadfast improvement in China’s air and water quality, reports China’s Ministry of Ecology and Environment
On 24 October, CGTN reported that China’s air and water quality displayed signs of improvement for the first time in nine months. The spokesperson for the Ministry of Ecology and Environment, Pei Xiaofei said: “During the January-September period, the average density of PM2.5 in 339 Chinese cities at or above the prefecture level stood at 27 micrograms per cubic meter, down 3.6 per cent year on year.” He also stated that the proportion of the air quality had increased by 1.6 per cent to 85.8 per cent from last year. Pei also stated that 88.5 per cent of surface water quality shows an increase of 1.4 per cent in quality making it above Grade III, whereas the previous year the surface water was monitored at Grade V, the lowest quality. (“China's air, water quality improves in first three quarters of 2024,” CGTN, 24 October 2024)

CHINA & MIDDLE-EAST
China to develop relations with Iran irrespective of changes in the region, stated China’s President
On 23 October, President Xi Jinping announced China’s cooperation with Iran despite changes in the regional and international situations during the 16th BRICS Summit. Xi stated that Iran is a valuable and strategic partner and highlighted the strong China-Iran relations. Iran receives China’s protection in national sovereignty, security, and national dignity as Iran furthers its socio-economic development.  Iranian President Masoud Pezeshkian expressed his gratitude to China for Iran’s participation in the BRICS as a full member. He also stated the need to deepen bilateral and comprehensive cooperation in clean energy etc. Xi expressed his worries for the Middle East and suggested international cooperation to resolve this matter. (“Xi says China to develop friendly cooperation with Iran despite int'l situation changes,” Xinhua, 24 October 2024)

CHINA & EUROPE
European Commission criticises China on “misinterpretation” of Resolution 2758
On 24 October, Focus Taiwan reported that the European Union (EU) executive branch, the European Commission stated that Chinese military activities near Taiwan have increased cross-strait tensions. The EU supported Taiwan stating the similarities between them and opposed China’s “One China” policy and said: “any unilateral actions that change the status quo by force or coercion.” The EU also highlighted that the peace and stability in the Taiwan Strait are of “strategic importance for regional and global security and prosperity.” European Commission officials stated China’s interpretation of UN Resolution 2758 for the first time. European Commissioner for Jobs and Social Rights Nicolas Schmit said: “United Nations Resolution 2758 is very short -- only 150 words,” “United Nations Resolution 2758 is very short -- only 150 words.”  The Ministry of Foreign Affairs (MOFA) stated that this event carried significance due to the first time the EU “expressed its view.” European Parliament also criticised China’s “misinterpretation” of the UN Resolution 2758. (“European Commission joins Taiwan, U.S. in highlighting Resolution 2758,” Focus Taiwan, 24 October 2024)

CHINA & THE AMERICAS
US-China conflict on technology to escalate irrespective of the party in power says an editorial in Reuters
On 23 October, Reuters editorial reported that the US-China semiconductor and technology conflict is bound to escalate irrespective of the party in power in the upcoming US presidential election. However, presidential candidate Kamala Harris would use a more targeted and specific approach whereas Trump would use a blunter approach. Harris in her campaign said: “America, not China, wins the competition for the 21st century,” on the issue of chips and technology. Trump on the other hand proposed an increase in tariffs to oppose Chinese technology. A former national security official in the Biden administration, Peter Harrell said: “We're seeing the opening of a new front in the U.S. China tech cold war that is focused on data, software and connected devices.” The US proposed two necessary changes of keeping cars consisting of Chinese parts off the streets and also made a law to either buy TikTok or ban it completely from the coming year. A Commerce Department official under Trump, Nazak Nikakhtar stated that the Trump administration will be “much more aggressive about export control policies towards China.” She also stated that China will also be denied licenses to import US technology. A commerce secretary under Trump, Wilbur Ross stated that the US should be aware of its dependency on China for rare earths and be strategically stern with China as “it would be very dangerous to just try to cut them off.” ( Karen Freifeld, “US-China tech war seen heating up regardless of whether Trump or Harris wins,” Reuters, 24 October 2024)

Chinese social media bots attempt to influence voters, report published by Microsoft
On 23 October, Chinese-controlled social media bots attempted to influence the voters in Alabama, Texas, and Tennessee. New research published by Microsoft stated that fake accounts are criticising all Republicans, Alabama's representative Barry Moore, representative Michael McCaul of Texas, Tennessee Senator Marsha Blackburn, and Rubio. Microsoft stated that the fake accounts “parroted antisemitic messages, amplified accusations of corruption, and promoted opposition candidates.” The group responsible is associated with China’s Ministry of Public Security and is called Taizi Food. The Chinese embassy however stated that such allegations are “full of malicious speculations,” and that it “has no intention and will not interfere in the US election.” The bots are targeting Moore for his support for Israel and antisemitism. They also targeted Blackburn alleging that she received bribes from pharmaceutical companies. Spokesman Moore said: “We know that the CCP is antisemitic, so it isn’t surprising that they are targeting me and other politicians who support Israel to try to sow division in advance of the most important election in our lifetime.” The research report by Microsoft however did not mention any viewpoint of the Americans regarding this matter. (“China-linked bots targeting Republicans including Marco Rubio in the run-up to the election, Microsoft says,” The Guardian, 24 October 2024)

China Reader Daily Wire | 23 October 2024, Wednesday | Vol.1 No. 195
EXTERNAL
China’s envoy at UN calls for end to unilateral sanctions affecting developing nations
On 22 October, China’s permanent representative to the United Nations, Fu Cong China’s UN envoy called for an immediate end to unilateral coercive measures by Monday, citing harm caused to developing countries. Fu spoke on behalf of 28 nations at the United Nations General Assembly on these unilateral measures, which he said violate international law and disrupt global cooperation. He termed them “gravely affect food, energy, and financial security” in breaking apart the Sustainable Development Goals. Fu argued that secondary sanctions and over-compliance did nothing but perpetuate economic instability in affected regions and block foreign investment and technology into those areas. He stated that these things infringed upon the very fundamental human rights to health, education, and development and called on the global community to unite in opposition to them. Fu said: “The current circumstance calls for solidarity and unity rather than confrontation and division.” (“Chinese envoy calls for end to unilateral coercive measures,” CGTN, 23 October 2024)

CHINA & EUROPE
Historic China-Vatican agreement on Bishop appointment
On 22 October, China and the Vatican renewed their landmark accord on bishop appointments for another four years following “friendly consultations”. The 2018 accord, which has already seen two renewals, allows Chinese authorities to nominate bishop candidates for the Pope’s final approval. Though specific terms remain private, the agreement marked Beijing's first recognition of the Pope as the universal head of the Roman Catholic Church. Around 12 million Catholics in China have been divided between state-run and Vatican-loyal churches. Foreign Ministry spokesperson Lin Jian reaffirmed the commitment to “promote the improvement of China-Vatican relations.” The Vatican stressed that it would continue to commit to “constructive dialogue” to be in service of the Chinese Catholic Church and people. Critics argue the deal compromises the loyalty of underground church members to Rome. Despite controversy, including past criticism from former US Secretary of State Mike Pompeo, both parties aim for improved relations, with the Vatican hoping to establish a permanent mainland office. (Phoebe Zheng, “China and Vatican agree to extend deal on bishop appointments for 4 more years,” South China Morning Post, 23 October 2024)

ECONOMY
Chinese think tank proposes USD 280 billion for stock market stabilization fund
On 23 October, the Institute of Finance & Banking, a think tank under the Chinese Academy of Social Sciences (CASS) proposed a 2 trillion-yuan (USD 280 billion) stock market stabilisation fund through special treasury bonds. This would maintain stability in the market by trading the blue-chip and Exchange-traded funds (ETFs) as cited by the institute’s quarterly economic report. While CASS has academic influence in China, the impact of this plan on policy is unclear. The proposal comes when China’s stock market has been greatly in motion as large-cap stocks have risen by about 24 per cent in the past month following recent stimulus policies. Central Bank Chief Pan Gongsheng had earlier confirmed studies were ongoing into such a fund plan. It also suggested an increase in investment opportunities for insurance companies and the national pension fund in the stock market. Apart from this, China’s central bank last month unveiled two funding programs, which might inject up to 800 billion yuan into the market, creating easier liquidity access for different financial institutions and facilitating share buybacks. (“China think tank proposes $280 billion stock market stabilisation fund,” Reuters, 23 October 2024)

CHINA & SOUTHEAST ASIA
China and Laos strengthen strategic Cooperation and bilateral ties on BRI
On 22 October, Chinese President Xi Jinping reaffirmed China's commitment to strengthening ties with Laos during his meeting with Lao President Thongloun Sisoulith. Both leaders emphasised the importance of deepening the China-Laos Railway and the China-Laos Economic Corridor. Xi stated that the fruitful cooperation of the last year was about trade, connectivity, and cultural exchanges between the two countries. He reiterated that China will continue being a “trustworthy friend and partner” for Laos, with mutual support over key issues. Thongloun acknowledged that the Laos-China relations stand at their best by mentioning China’s valuable contribution to the development of his country. Thongloun has reaffirmed the one-China policy, with full cooperation on the Taiwan-Hong Kong-Xinjiang issues. Both sides agreed to improve multilateral coordination so that the interests of the developing countries could be well protected. Thongloun expressed his hope for further cooperation with China in ASEAN and other international forums. (“Xi urges China, Laos to forge model for BRI cooperation,” CGTN, 23 October 2024)

CHINA & AFRICA
Uganda-Turkish railway deal could revive stalled Chinese investment for Kenyan rail project, says an editorial in SCMP
On 23 October, an editorial in the South China Morning Post reported that the new USD 3 billion railway deal between Uganda and Turkish firm Yapi Merkezi for the 272 km Kampala-Malaba line may act as a catalyst to secure Chinese funding for Kenya’s incomplete Standard Gauge Railway (SGR). The Turkish project will replace the 2015 terminated deal with China Harbour and Engineering Company and has a fully electrified line, just like the European and American lines. The Ugandan government will commit to its piece of the project while the development could have an impact on China’s decision to fund Kenya’s Naivasha-Malaba section. He believes this development might bring comfort to Chinese financiers as SGR viability is bound to cross-border cargo flow. Even when Kenya’s President William Ruto had discussed railway expansion with Chinese President Xi Jinping at September’s FOCAC meeting, analysts in terms of Aly-Khan Satchu are still not too sure if China will commit to extending financing given Kenya’s accumulated debt burden. The undertaking is a component of the more extensive East African Railway Master Plan, which is to connect Tanzania, Kenya, Uganda, Rwanda, Burundi, South Sudan, and the DRC. (Jevans Nyabiage, “Could Ugandan rail deal convince China to help get Kenyan project back on track?,” South China Morning Post, 23 October 2024)

CHINA & EUROPE
Chinese-European scholars discuss emerging human rights in the digital age
On 22 October, 60 participants from China and eight other European countries, including scholars and officials deliberated on the protection of new human rights. It was its eighth meeting since 2015, focusing on social rights, economic inequality, digital rights, and environmental protection. The Vice President of China Society for Human Rights Studies Ma Huaide expressed his commitment that China is focused on its quest for online security and environmental protection while further demanding greater cooperation.  Schiller Institute’s Helga Zepp-LaRouche stated that commended China’s initiatives for addressing modern human rights challenges. The event co-hosted by the China Society for Human Rights Studies and Central South University Human Rights Center assisted in opening up dialogue between civilisations. The Director of the Central South University Human Rights Center Jiang Jianxiang, spoke of how such diverse conceptions of emerging rights reflect international cultural diversity as he emphasised the need for scholarly collaboration between China and Europe. (“Chinese, European scholars discuss human rights issues,” CGTN, 23 October 2024)

Volkswagen executive expelled from China following positive drug test
On 22 October, Volkswagen’s China Chief Marketing Officer, Jochen Sengpiehl has been prohibited from entering China. This is due to the traces of cannabis and cocaine found in his blood during his vacation in Thailand. The German Foreign Ministry admitted it was aware of the case, saying its Beijing embassy has “regular contact with the person concerned and his family, as well as with the local authorities.” Germany’s Bild tabloid stated that Sengpiehl was subjected to hours of interrogation and remained in detention for more than 10 days until VW and officials from the German embassy intervened to win his release on the condition he left China immediately. Sengpiehl is in his 50s and has been an executive here since August 2022. Before that, he oversaw marketing for VW’s entire 10-brand portfolio in Germany. On China’s strict anti-narcotics stance, this contrasts with Thailand’s recent, though temporary, decriminalisation of marijuana in 2022. Volkswagen has refused to further comment on the matter. (“German VW executive Jochen Sengpiehl expelled from China over positive drug test,” South China Morning Post, 23 October 2024)

CHINA & THE AMERICAS
Shein partners with Mexican fintech Stori to launch first global branded credit card
On 22 October, fast-fashion giant Shein, estimated at USD 66 billion stated that it chose Mexico as the launchpad for its first ever-branded credit card in a tie-up with fintech company Stori. The tie-up has a double target to expand credit access in Mexico and raise Shein’s visibility in Latin America’s second-largest economy. Users of the Mastercard will earn points on purchases, with double points on Shein’s website. Mexican Online Sales Association stated that the push comes as Mexico’s e-commerce market leads global growth with clothing accounts for more than 40 per cent of online purchases in Mexico. Stori has added 3 million clients in Mexico over four years and is known for its high-yield savings accounts and credit cards accessible to all. The card is only one part of Shein’s larger plan for further regional expansion and a new Mexican manufacturing facility. (Kylie Madry, “Clothing retailer Shein launches credit card with Mexican fintech Stori,” Reuters, 23 October 2024)

China Reader Daily Wire | 22 October 2024, Tuesday | Vol.1 No. 194
OUTERSPACE
China successfully launches new satellite Tianping- 3, reports Xinhua
On 22 October, Xinhua reported that China had successfully launched a new satellite named Tianping- 3 into space. The satellite was launched from the Taiyuan Satellite Launch Centre in Shaanxi Province through a Long March-6 carrier rocket. The satellite successfully entered its preset orbit. It is expected to provide services like orbital prediction model corrections and atmospheric space environment surveys. (“China launches Tianping-3 satellite,” Xinhua, 22 October 2024)

CHINA & SOUTHEAST ASIA
China lodges protest against Myanmar over China’s consulate attack, reports SCMP
On 21 October, SCMP reported that the Ministry of Foreign Affairs of the People’s Republic of China had expressed its shock over an attack on the Chinese consulate in the city of Mandalay in Myanmar. A spokesperson for the Chinese foreign ministry, Lin Jian informed the foreign ministry and the Embassy of the People’s Republic of China in Myanmar had initiated the emergency response over the attack. Lin also informed China had lodged a solemn protest with Myanmar over the attack. The spokesperson urged Myanmar to enhance the security provided for Chinese institutions, projects, and personnel in Myanmar, and prevent such incidents from occurring again. Lin also urged authorities in Myanmar to carry out a thorough investigation of the attack and spare no efforts in bringing the perpetrators to justice. After the attack, the Consulate-General of the People’s Republic of China in Mandalay issued a security warning, urging all Chinese nationals, companies, and organizations to pay attention to local situations and improve security measures. ( Phoebe Zhang, “China lodges ‘solemn protest’ and demands justice from Myanmar over consulate attack,” South China Morning Post, 21 October 2024)

CHINA & SOUTH ASIA
CPC delegation holds meeting with Nepali political party representatives, reports People’s Daily Online
On 22 October, People’s Daily Online reported that a delegation from the Communist Party of China (CPC) had concluded its visit to Nepal. A member of the CPC Central Committee, Chen Gang led the delegation that met the Prime Minister of Nepal, KP Sharma Oli; and held talks with the leaders of different political parties in Nepal. The CPC delegation also attended a briefing on the spirit of the third plenary session of the 20th CPC Central Committee, which focused on sharing the opportunities presented through Chinese-style modernization and improving trans-Himalaya cooperation. The Nepali representatives expressed their commitment towards the one-China policy, and strengthening interparty exchanges with China. The representatives also stated they were committed to the further development of China-Nepal relations, and cooperation in various fields. (Zhang Kaiwei and Liang Jun, “CPC delegation visits Nepal on ties,” People’s Daily Online, 22 October 2024)

INTERNAL
Rise of second-hand and grey markets for luxury goods in China, reports Reuters
On 21 October, Reuters reported that the second-hand and grey markets for luxury goods in China were witnessing significant growth. The boom in the grey market came amidst an increase in prices charged by luxury brands in China. The price hike resulted in a decline in sales by luxury brands in China; with luxury group LVMH reporting a fall of 3 per cent in quarterly sales. Due to a weak economy, consumers were looking for cheaper ways to buy goods with the grey markets benefitting as a result. The Chief Executive Officer of luxury intelligence consultancy Re-Hub which tracked grey market luxury purchases in China, Max Piero stated price sensitive consumers would prefer the grey market, as long as a price gap existed between China and other countries. According to the founder of the second-hand luxury goods marketplace ZZER, Zhu Tainiqi, the increase in the number of sellers in the second-hand luxury goods market has contributed to a drop in the average purchase prices and average order values. The grey market is estimated to be worth USD 57 billion a year, helped by platforms like DeWu where luxury products are sold at discounts ranging from 20 per cent to over 50 per cent prices at Chinese flagship stores. However, top executives from luxury brands stated they did not plan to launch more affordable products, despite the decline in sales. ( Casey Hall, “China’s booming grey markets add woes to luxury brands,” Reuters, 21 October 2024)

CHINA & SOUTH ASIA
India and China agree on border de-escalation agreement near LAC, reports BBC News
On 21 October, BBC News reported that the Government of the People’s Republic of China and the Government of India had agreed upon patrolling agreements to de-escalate tensions on the India-China border. The Foreign Secretary of India, Vikram Misri informed about the agreement which would lead to disengagement and resolution of issues in the areas in the Line of Actual Control (LAC) which had arisen in 2020 after the Galwan clashes. However, Misri did not provide any details about the disengagement process, and whether it would cover all the points of conflict on the border. The new agreement is a breakthrough in talks between China and India over reducing tensions on the border, which have existed since the Galwan clashes four years ago. The clashes in Galwan, Sikkim, and Tawang after that have negatively impacted bilateral and business relations between China and India. (Vikas Pandey, “India and China agree to de-escalate border tensions,” BBC News, 21 October 2024)

CHINA & EUROPE
Mercedes-Benz CEO reiterates opposition to prospective EU tariffs on Chinese EVs, reports Global Times
On 22 October, Global Times reported that the Chief Executive Officer (CEO) of German car manufacturer Mercedes-Benz, Ola Kaellenius had requested the implementation of tariffs by the European Union (EU) upon Electric Vehicle (EV) imports from China be delayed. Kaellenius stated the proposed tariffs went against the spirit of free trade, and would fail to enhance the global competitiveness required by the EU for long-term economic growth.  Kaellenius also urged the EU to look for a balanced solution that would provide benefits for itself as well as for China. He also urged the EU to extend discussions to avoid an escalation in the dispute. The views of Kaellenius are in line with concerns by the German automotive industry at large and the Federal Government of Germany towards prospective tariffs. Germany fears the tariffs could lead to a trade war, which would threaten the economic interests of the EU. (“Mercedes-Benz CEO urges EU to delay tariffs on Chinese EVs,” Global Times, 22 October 2024)

CHINA & THE AMERICAS
US court awards USD 1.6 billion to Bahamas company in dispute with China Construction America, reports SCMP
On 22 October, SCMP reported that a court in New York had awarded a property management company from the Bahamas, BML Properties Ltd with USD 1.6 billion in a legal dispute over a tourism project in the Bahamas named Baha Mar. The dispute was against China Construction America (CCA), a subsidiary of the Chinese government-owned China State Construction Engineering Corporation Ltd. The project was placed in bankruptcy and sold to Hong Kong conglomerate, Chow Tai Fook Enterprises, the current owner. A key point debated in the trial was whether the huge losses of USD 1.5 billion faced by BML were a result of construction delays or its excessive debt. The New York court ruled that BML suffered damages amounting to its entire investment of USD 845 million; due to delays in construction as well as at least four instances of fraud committed by company representatives. The court also ruled that board members from CCA failed to take their responsibilities seriously, and delayed on purpose the Baha Mar project. Another key finding by the court was that the amount of USD 54 million requested from BML by CCA was used to buy the competing British Colonial Hilton hotel in the Bahamas. (Mark Magnier, “US court awards Bahamas firm US$ 1.6 billion in case against China Construction America,” South China Morning Post, 22 October 2024)

US adds six more Chinese companies to export blacklist for supporting Iran, reports SCMP
On 22 October, SCMP reported that the US Government had added six Chinese companies to an export blacklist, over support for the development of weapons of mass destruction(WMD) by Iran and the modernization of the Chinese military. The US Assistant Secretary of Commerce for Export Administration, Thea D. Rozman Kendler stated the US would cut off firms that acted against US national security and evaded their controls. The US Department of Commerce added the companies to the trade-restriction register known as the Entity List, for posing a threat to US national security and foreign policy. This prevents the companies from receiving US technology and goods without a special license. One of the Chinese firms added by the Commerce Department was Beijing Moreget Creative Technology which acquired US-origin items related to aviation-simulation technology in support of the military modernization of China. Another firm added was Small Leopard Electronics alongside the closely connected company Shenzhen Dragonfly Supply Chain, which reportedly engaged in evasive conduct while providing information to the Commerce Department during end-use checks. Additionally, three other Chinese firms were added for procuring or attempting to procure US-origin items for the WMD and drone-development programmes of Iran. ( Bochen Han, “US adds 6 more Chinese companies to export blacklist for boosting Iran, PLA,” South China Morning Post, 22 October 2024)

US tries to manipulate global market despite free trade rhetoric, states op-ed in People’s Daily Online
On 22 October, an op-ed published in People’s Daily Online stated the opinion that the US Government was trying to maintain a hegemony for itself in the global trade market. The op-ed provided the example of how Dutch semiconductor firm ASML witnessed a decline of about half in its third-quarter orders and stock prices. According to the op-ed, attempts by the US to impose export restrictions limiting the sale of advanced chip-making equipment to China had negatively impacted firms like ASML, where China accounted for nearly half of its global sales. The op-ed argued that the US used the façade of national security to weaponize trade policies against countries like China, with the ulterior motive of preserving its dominance of the trade market by constraining its foreign competitors. According to the op-ed, the US had used non-market measures against perceived rivals such as Japanese tech companies like Toshiba and French power and transportation conglomerate Alstom for long. The op-ed also stated the US worldview of trade freedom was dependent upon its own narrow interests rather than genuine market openness. According to the op-ed, the selective use of free-market principles by the US disrupted global supply chains, damaged trust and cooperation between economic partners, and stifled innovation, impacting multinationals like ASML which needed a stable environment to operate in. The op-ed concluded that economic coercion would not lead to long-term economic progress for anyone, and only genuine openness without a single country dominating would lead to a prosperous future. (Zhang Kaiwei and Liang Jun, “Commentary: Free trade or not? Washington calls the shots,” People’s Daily Online, 22 October 2024)

China Reader Daily Wire | 21 October 2024, Monday | Vol.1 No. 193
INTERNAL
Xi Jinping champions innovation and openness in China’s economic zones and calls for “innovation-driven breakthroughs”
On 20 October, President Xi Jinping emphasised state-level economic and technological development zones as a strategically crucial part of propelling the nation forward. While it is the four decades of China’s zones, President Xi called for ‘innovation-driven breakthroughs’, as he underlined their great contributions to China's economic systems and regional development. He pressed for fresh 'innovation-driven' advances as if the zones must be ahead drivers of high-quality growth and deeper reforms. Xi said the nation should participate in all aspects of Belt and Road initiatives and further expand international cooperation, as well as “Invest in China” into a famous brand. The president proposed the need to strengthen advanced manufacturing, promote green industries, and develop new productive forces that fit local conditions. Vice Premier He Lifeng at a memorial forum in Tianjin stated the core message passed down from Xi in a speech. (“Xi Jinping stresses promoting high-standard opening up for reform, development,”  CGTN, 20 October 2024)

CHINA & SOUTHEAST ASIA
China and Indonesia reaffirm strategic partnership during Vice President Han’s visit
On 19 October, Chinese Vice President Han Zheng’s visit marked an important turning point in bilateral relations. While hosting the inauguration of the newly elected president-elect Prabowo Subianto, Han emphasised China’s willingness to deepen strategic coordination and ensure high-quality Belt and Road cooperation. The project of the Jakarta-Bandung High-Speed Railway was cited as an example of friendship and cooperation. Indonesian President Joko Widodo stated Indonesia's willingness to ensure the railway's efficient operation and further develop ties with China. Both sides recognised strong growth in their comprehensive strategic partnership over recent years. Han’s visit underlines the importance attached by China to its relationship with Indonesia, expecting the new government in Jakarta to continue consolidating those bonds. (“China, Indonesia vow to deepen ties, boost high-speed rail project,” CGTN, 20 October 2024)

CHINA & RUSSIA
Putin emphasises on China-Russia ties ahead of BRICS Summit
On 18 October, Russia’s President Vladimir Putin highlighted the strength of Russia-China ties during a recent press conference with representatives of BRICS media. The relations between China and Russia are built on “mutual respect” and “equality”. He mentioned the rapid growth in trade between the two countries and further outlined plans for an increase in cooperation in the energy sector, agriculture, and technology. Putin touched on recent expansion within BRICS, welcoming special features of all the new members from Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. He stated the importance of this diversity saying: “When new players... join any international organisation, they make their contributions.” Putin cautioned on US attempts to contain China stating that China-Russia ties are built on mutual respect. The debate framed against the backdrop of the BRICS summit is opening in Kazan this weekend. This stresses Russia’s intention to bolster inter-block relationships and ties with China. (“China-Russia ties built on mutual respect, says Putin in response to CGTN's question,” CGTN, 19 October 2024)

SCIENCE & TECHNOLOGY
China develops new imaging method that enhances precision for breast cancer surgery, says an editorial in SCMP
On 21 October, an editorial in the South China Morning Post reported that Chinese scientists have developed an innovative imaging technique that may revolutionize the concept of breast-conserving surgery in the treatment of early-stage breast cancer patients. This new approach targets the frequently overexpressed Trop2 biomarker for improved detection of the cancer margins pre- and intra-operatively. The technique that allows real-time visualisation of the tumour during surgery combines sacituzumab govitecan with zirconium-89 for PET imaging and indocyanine green for near-infrared fluorescence. In human tissue samples, the technique had an 86.96 per cent sensitivity when identifying the existence and nonexistence of malignant tumours in tissue within 15 minutes of analysis. Researchers said: “Compared with currently available tumor margin detection methods, this technology offers several advantages, including high-resolution wide-field imaging of whole-tissue specimens within a clinically relevant time frame.” There is however still further research needed. This approach may one day become the successor of intraoperative frozen sections, allowing for more precise management of breast cancer with lesser need for subsequent surgeries to examine margins. (Victoria Bela, “Chinese scientists say new imaging will protect healthy tissue in breast cancer surgery,” South China Morning Post, 21 October 2024)

ECONOMY
China’s economic growth at 4.6 per cent the slowest amid property decline and stimulus efforts
On 19 October, China’s economy grew 4.6 per cent in the third quarter, marking its slowest expansion since early last year and falling short of the government’s 5 per cent target. Slowing performance reflects severe challenges for the world’s second-largest economy-challenges including a deepening property crisis and eroding consumer confidence. The former head of the IMF’s China division, Eswar Prasad, stated that hitting the annual growth target now “appears in serious jeopardy”. New home prices declined at a pace last seen nearly a decade ago. Beijing has taken various measures to stimulate the economy with cuts in interest rates and increased funding programs. Moody’s Analytics’ Harry Murphy Cruise, feels that there is hope for attaining the 5 per cent target, other analysts point to more critical reforms. While China is facing these headwinds in its economic situation, with the former fully coming into effect within the next few months, the stimulus efforts will go a long way in determining the economic outlook of China. (João da Silva, “China's economic slowdown deepens,” BBC, 19 October 2024)

China’s central bank launches USD 42 billion share purchase lending scheme, reports Reuters
On 21 October, Reuters reported that the People’s Bank of China launched a re-lending scheme worth 300 billion yuan (USD 42.24 billion) so that listed companies and their major shareholders can raise shares at easy interest for share buyback or increase their stake. Already more than 20 Chinese listed firms have announced their plans to take the scheme. Analyst Wang Mengying stated that the program may be of great interest to companies with higher dividend ratios or net profit margins given its low 2.25 per cent interest rate cap. Among the participants are Sinopec, which secured share buybacks and purchases to the tune of 1.6 billion yuan, and COSCO Shipping Holdings, securing funds for 2 billion yuan in share buybacks. It may pump new money into the stock market and revive a rally that is slowing down. As more companies are expected to join, the program's impact on market dynamics will be closely watched by investors and analysts alike. (“China's listed companies rush to tap central bank funding for share purchases,” Reuters, 21 October 2024)

CHINA & SOUTH ASIA
China protests over the opening of the Taipei Economic and Cultural Centre office in Mumbai
On 17 October, China strongly protested over the opening of the Taipei Economic and Cultural Centre office in Mumbai and lodged a diplomatic protest with New Delhi. Foreign Ministry spokesperson Mao Ning emphasised China’s position in a statement saying: “There was but one China in the world and Taiwan is an inalienable part of China’s territory.” The Chinese government sees this development as a breach of the one-China principle, which it considers the basis of China-India relations. The government objected to India and Taiwan holding their first naval exercise. Mao called upon India to “strictly abide by the commitments it has made” and not engage with Taiwan at the official level. This instance throws up the vulnerability of India in navigating its relationships with China and Taiwan. The latest office at Mumbai makes three offices that TECC has in India, and this might further complicate diplomatic ties between the two Asian giants. (“China protests to India over the opening of Taiwan's office in Mumbai,” Business Standard, 18 October 2024)

CHINA & EUROPE
Europe’s auto industry faces China’s EV challenge, says an opinion in The Guardian
On 20 October, an opinion in The Guardian stated that Europe’s car industry, once the epitome of industrial muscle, now finds itself pushing back against China’s electric vehicle makers' fast rise. Broad industry opposition has erupted in the EU over the bloc’s decision to propose tariffs on Chinese electric vehicles. The CEO of Stellantis Carlos Tavares stated that plant closures in the Western region are going to accelerate as Chinese companies try to find new production bases in low-cost Eastern Europe. Ambitions by the Chinese to penetrate Europe were evident at the Paris Motor Show. BYD also announced its intentions to manufacture locally. Germany’s opposition to the tariffs showcases growing rifts within the EU. Some European brands are even cosying up to the Chinese rivals including PSA Group’s agreement with manufacturer Hainan Province Yidong Auto. This is causing growing anxiety about competition for them at home. Stax consultancy’s Phil Dunne said: “The Europeans have massive alarm bells ringing. They have recognised they need to do something pretty radical and they only have a couple of years to do it.” (Lisa O'Carroll, “Is China cannibalising the EU car industry?,” The Guardian, 20 October 2024)

CHINA & THE AMERICAS
US Secretary of State for Foreign Affairs presses Chinese counterpart over human rights concerns and collusion with Russia, reports the Guardian
On 19 October, The Guardian reported that US Secretary of State for Foreign Affairs David Lammy urged his Chinese counterpart over human rights concerns and China’s support for Russia’s invasion of Ukraine. The Foreign Office stated the encounter raised several foreign policy and security matters including Chinese companies supplying equipment to the Russian military and the Middle East. Additionally, the statement discussed issues including the ill-treatment of Uyghurs in Xinjiang and the detention of British national Jimmy Lai in Hong Kong. However, the statement made no direct reference to Taiwan, while China held large-scale military exercises around the island. Furthermore, Lammy said: “The UK government would bring consistency to relations with China, adding there had not been sufficient contact between London and Beijing under his predecessors, particularly on human rights issues. It’s only in dialogue that we can bring about better understanding and change. I believe what you need is more diplomacy, not less. That’s why it’s so important to be here as a UK foreign secretary and to keep coming back and, of course, I was able to have a dialogue with the Chinese on areas where we disagree, areas like Hong Kong, areas like Taiwan, areas like human rights in Xinjiang, we were able to have those conversations and raise difficult, challenging issues, it was important to speak candidly about both areas of contention as well as areas for cooperation in the UK’s national interest.” (“David Lammy raises human rights and Ukraine in Beijing talks,” The Guardian, 21 October 2024)

USS Higgins and Canadian frigate the HMCS Vancouver transit the Taiwan Straits, reports Global Times
On 21 October, Global Times reported that a US destroyer the USS Higgins, and a Canadian frigate the HMCS Vancouver transited the Taiwan Straits on 20 October. Senior Captain Li Xi, said: “It’s a move that stirred up troubles and sabotaged peace and stability in the Taiwan Straits.” Additionally, The Chinese People’s Liberation Army (PLA) monitored the US and Canadian warships throughout the transit on high alert with the situation following the law-and-order regulations. Li stated that the move by the US and Canada would stir up troubles and sabotage peace in the Taiwan Straits. Furthermore, Li said: “The troops of the theatre maintain a high level of vigilance at all times and are determined to defend national sovereignty and security as well as peace and stability in the region.” (“PLA Eastern Theater Command tracks, monitors US, Canadian warships through Taiwan Straits,” Global Times, 21 October 2024)

Chinese investments in Latin America provide more opportunities for the US, says an opinion in Global Times
On 21 October, an opinion in Global Times titled “GT Voice: China-Peru cooperation creates more opportunities for the region,” looked into how Chinese infrastructure investments in Latin America like Chancay Port raise concerns in the US over the regional influence race, while cooperation between China and regional countries offers more opportunities to the US rather than rivalry. An executive from COSCO Shipping said: “The port will initially serve a direct route to Shanghai and operate two container ships a week beginning late next month after its official inauguration.” Chinese collaborative projects with Peru are not intended to counter any other nation but would foster mutual benefits like the trade between China and Peru and larger parts of the South American region have proven potential growth. The construction of Chancay Port demonstrates the cooperation between the two sides and provides an expectation for 000many more collaborative projects. However, the Chancay Port will reduce the time taken to ship products from Latin America to Asia, while the new port would provide a more cost-effective route for trade. Additionally, Peru encourages infrastructure investment by several countries, including the US, while once Peru's Foreign Minister Javier González-Olaechea said: “The US is concerned about China's growing presence in Peru, then it should step up its investments.” Through investments coupled with advanced technology and financial support, China plays an essential role in supporting Latin American countries to boost their infrastructure and upgrade their industrial competitiveness. Furthermore, it is expected the US will stop identifying China's global development through aggression and rather will adopt a more constructive approach that would actively engage in global and regional development initiatives. (“GT Voice: China-Peru cooperation creates more opportunities for the region,” Global Times, 21 October 2024)

China Reader Daily Wire | 16 October 2024, Wednesday| Vol.1 No. 192
INTERNAL
Think Tank report highlights new opportunities for the Belt and Road Initiative, says the report authored by the Xinhua Institute
On 15 October, Xinhua reported the potential for enhanced cooperation among Belt and Road Initiative (BRI) partners. An eighty-one-page document titled “Eight Major Steps Heralds Promising New Decade of Belt and Road Cooperation” argues that changes were introduced by China for these eight major steps announced in October last year. It points out that connectivity projects, green development, and digital initiatives have made marked improvements since then. It foresees that the BRI’s second decade will usher in “higher levels of cooperation, greater investment returns, improved supply quality and enhanced development resilience.” It will become “a cornerstone in the construction of an open world economy, a driving force for collective development and an accelerator of global modernisation." To achieve these goals, it advocates green and digital growth, moves into emerging fields, and fosters innovation. It also puts out an alert against “systemic negative propaganda” from certain countries to cast the BRI as a “debt trap” or “neocolonialism” urging the partners to be cautious about such stories. (“China Focus: Think tank report urges closer partnership for new fruits of Belt and Road cooperation,” Xinhua, 15 October 2024)

CHINA & THE AMERICAS
Xi Jinping calls for cooperative US-China relations despite tensions
On 16 October, Chinese President Xi Jinping reached out to the United States with an olive branch, stressing that the two can have a win-win partnership. In a letter addressed to the National Committee on US-China Relations, Xi indicated that China was ready to be “a partner and friend” with the US. In his words, such a friendship would benefit both parties and the world at large. He reminded the global community of the importance of US-China relations and declared that those ties are very important to humanity. He called for a relationship based on “mutual respect, peaceful coexistence and win-win cooperation” even though there have been persistent frictions on national security, trade friction, and geopolitical issues such as Taiwan and the South China Sea. He portrayed China’s success as an opportunity for the US, rather than a threat, suggesting that both countries could enable each other’s development instead of hindering it. (“Xi says China willing to be a partner, friend with the US,” Reuters, 16 October 2024)

CHINA & CENTRAL ASIA
China and Kyrgyzstan strengthen ties and emphasise mutual development
On 15 October, Chinese Premier Li Qiang met with Kyrgyz Prime Minister Akylbek Zhaparov in the framework of the 23rd SCO Council to discuss deepening bilateral cooperation. In his statement, Li stressed how China is to work with Kyrgyzstan as “reliable and dependable partnerS in development and revitalization.” The leaders will try to follow the strategic goals by Presidents Xi Jinping and Sadyr Japarov set in July on connectivity, infrastructure, and trade. In his speech, Li pointed out possible spheres for cooperation in new energy, e-commerce, and artificial intelligence. Zhaparov expressed gratitude to China for its support for the development of Kyrgyzstan and said their country needed cooperation with China and cited a number of projects, including furthering the China-Kyrgyzstan-Uzbekistan railway project and collaborating in all spheres of activity. The parties reaffirmed their commitment to the Belt and Road initiative and the “Shanghai Spirit” within the SCO framework. Kyrgyzstan expressed active support for China’s global initiatives, including the vision for a shared future for mankind. (“China ready to work with Kyrgyzstan to consolidate mutual support -- Premier Li,” Xinhua, 15 October 2024)

ENERGY & ENVIRONMENT
China’s nuclear journey from “Paper Tiger” to strategic deterrent, says an opinion in SCMP
On 16 October, an opinion in the South China Morning Post stated that the nuclear weapons program born of geopolitical tensions under China reached a turning point when it detonated its first atomic bomb on 16 October 1964. Codenamed “Miss Qiu”, this test in the Lop Nur desert in Xinjiang was executed during a time of economic hardship and strains in Sino-Soviet relations. Mao Zedong, who had once viewed nuclear arms as a “paper tiger,” eventually concurred that the country needed them, declaring: “Not only do we need more aircraft and artillery, but also the atomic bomb.” Even with internal debates and famine, the program remained on track, with Foreign Minister Chen Yi declaring: “We must get the atomic bomb even if we have to sell our pants.” China expanded its nuclear arsenal rapidly, including missile delivery systems, and tested a hydrogen bomb by 1967. Significantly, Beijing immediately declared a “no first use” policy on obtaining nuclear weapons. The combination of this position and the PRC’s pledge to maintain its nuclear forces “at the lowest level necessary for its national security” has guided its nuclear strategy since the early 1960s as it responded to managing complex deterrence and restraint within global geography. (Liu Zhen, “How China used a ‘paper tiger’ to emerge as a nuclear weapon superpower,” South China Morning Post, 16 October 2024)

CHINA & TAIWAN
China sanctions Taiwan individuals
On 14 October, China announced sanctions against Taiwanese businessman Robert Tsao and lawmaker Puma Shen for involvement with the “Black Bear Academy”  as a threat to cross-strait relations. The announcement of the sanctions comes when Beijing continues with the new wave of Chinese military drills around Taiwan, which it claims as its territory. Tsao, who funded millions of dollars on civilian defence programs and Democratic Progressive Party (DPP) legislator Shen, who has been serving at the academy’s training, are restricted from visiting China, Hong Kong, and Macau. Their allied businesses are also not allowed to engage in any business activities in China. The DPP labelled these moves as “intimidation,” but Shen dubbed them “provocation”.  Kuma Academy, or Black Bear Academy, is explained as an attempt to help Taiwan find self-governance. Tsao criticised China’s Communist Party and suggested that if the military move against Taiwan is initiated, it will be an apocalyptic end for Beijing. (“China sanctions Taiwan businessman Tsao, lawmaker for 'separatist' acts,” Business Standard, 15 October 2024)

China reaffirms stance on Taiwan amid escalating tensions
On 15 October, US News reported that China reiterated its unwillingness to renounce the use of force regarding Taiwan, following recent military drills and a visit by President Xi Jinping to a historically significant location. The spokesperson for China's Taiwan Affairs Office Chen Binhua said: “We are willing to strive for the prospect of peaceful reunification with the utmost sincerity and endeavour. But we will never commit ourselves to renouncing the use of force.” This stance, according to Chen, targets “external forces” and Taiwan separatists rather than the majority of Taiwan's population. Taiwan’s government, however, has remained adamant in rejecting China’s sovereignty claims. Taiwan National Security Bureau Director-General Tsai Ming-yen said that Beijing’s military activities have had the opposite effect-they have rallied international support for Taipei. Despite these tensions, Taiwan President Lai Ching-te offered yesterday to cooperate with Beijing on several global issues, including climate change. Beijing continues to maintain military deployments around Taiwan, with 22 aircraft and five navy ships reportedly detected recently, though tension has also escalated both sides to be on high alert. (“China Won't Renounce Use of Force Over Taiwan; Xi Visits Frontline Island,” US  News, 15 October 2024)

CHINA & SOUTH ASIA
China's Premier’s Pakistan visit highlights economic ties amid security concerns
On 14 October, the complex relationship between China and Pakistan, where economic cooperation is weighed against security risks, indicates why Chinese Premier Li Qiang went to Pakistan. He officially opened a Chinese-funded airport in Gwadar, Balochistan, as part of the China-Pakistan Economic Corridor, which is worth USD 75 billion. The highway project, connecting the deep-sea port of Gwadar with China over 3,200 kilometres, has been opposed by separatists from the region. During a visit amid recent violence, including the killing of two Chinese workers in Karachi, Li and Pakistani Prime Minister Shehbaz Sharif put forth continued collaboration, with Sharif saying: “This gift from our brother from China is yet another feather in the cap of the CPEC.” At the same time, Li will head to Islamabad for a meeting with the Shanghai Cooperation Organization. Representatives from different member countries will attend the meeting, including Russia and India. Recent attacks in Pakistan have increased security measures, such as police stations being attacked in the Khyber Pakhtunkhwa province. (“China’s premier inaugurates a Beijing-funded airport at the start of a Pakistan trip,” AP News, 15 October 2024)

CHINA & THE PACIFIC
Zeekr targets the Australian market as Chinese EV makers seek new opportunities
On 16 October, Chinese electric vehicle maker Zeekr set its sights on Australia, launching its first model while planning another for 2024. The Geely-owned premium brand is targeting Oceania as the third key overseas market after Southeast Asia and Latin America. Zeekr Australia’s Managing Director, Connal Yan, reported strong initial interest, with over 2,500 expressions registered for their SUV X and MPV 009 models. Australia's appeal to Chinese automakers lies in its lack of a domestic car industry and unlikely protectionist measures, coupled with government support for EV adoption in 2022. This move comes as Chinese EV makers are running into trade barriers in Europe and the US. Australia’s small yet tantalising market selling 1.2 million cars last year makes it a good alternative. Zeekr is optimistic about future growth as its Australian customers will appreciate a new set of vehicle efficiency standards slated to begin in 2025. (“China's Zeekr launches EV in Australia, eyes New Zealand next,” Reuters, 16 October 2024)

CHINA & RUSSIA
Russia and China strengthen “no limits” military partnership amid global tensions
On 15 October, Russia and China held major talks on defence recently, further refining their “no limits” partnership. The Russian Defense Minister Andrei Belousov described a “very substantive” discussion with Zhang Youxia, vice chairman of China’s central military commission. According to Belousov, the two nations share a common understanding of global processes and necessary actions. This meeting comes as China conducted war games near Taiwan, which it said was a warning against “separatist acts”. A strengthening alliance between Russia and China, formalised in February 2022 just before Russia invaded Ukraine, has sparked an uproar in the West. Both countries pledged to deepen their “strategic partnership” and criticised US influence in Asia. While the US accuses China of helping out Russia’s war machinery by supplying dual-use goods, China maintains it has not supplied arms to any party to the conflict. (“Russia holds 'substantive' talks with China to bolster defence ties,” Business Standard, 15 October 2024)

CHINA & THE AMERICAS
China’s motor car manufacturer plans to open factory in Brazil, reports SCMP
On 16 October, SCMP reported that the largest manufacturer of SUVs and pickup trucks in China, Great Wall Motors (GWM) planned to start manufacturing operations in Brazil in May. The information was conveyed via a report in the Brazilian newspaper Valor Economico. GWM had functioned as an importer in Brazil primarily and plans to start manufacturing operations now. The manufacturer has started a recruitment drive for 100 positions as preparation for its local operations and also plans to create an additional 700 jobs through collaboration with a local technical school. GWM also stated its focus in Brazil would be on producing the hybrid sports SUV Haval H6. The SUV has benefitted from a tax incentive programme in Brazil, which offers tax breaks based on factors like domestic sourcing, research and development investment, and emissions reduction. GWM also plans to use its factory in Brazil as an export hub for other countries in South America. (Igor Patrick,  “China’s Great Wall Motors to open factory in Brazil in May,” South China Morning Post, 16 October 2024)

Microsoft report alleges cybercrime network used by China and Russia to target West, reports AP News
On 15 October, AP News reported that tech conglomerate Microsoft had stated in its report on digital threats that China, Russia and Iran were relying upon criminal networks for cyberespionage and hacking operations. Microsoft analysts provided an example of how a criminal hacking group connected with Iran infiltrated an Israeli dating site and attempted to sell or ransom personal information; with the objectives of financial benefits and embarrassing Israel. Another hacking attempt found by Microsoft was an infiltration by a Russian criminal network into over 50 electronic devices used by the Armed Forces of Ukraine, to find information beneficial for Russia. The alliance between cybercriminals and countries like China, Russia and Iran has mutual benefits for both sides. For the governments, it allows them to improve the volume and effectiveness of cyber activities without added costs, while the criminal networks have new methods of gaining profits, alongside government protection. The Vice-President of Customer Security and Trust at Microsoft, Tom Burt stated there was no evidence so far that China, Iran and Russia were working with the same criminal networks, or sharing resources. However, Burt also stated the growing usage of private cyber “mercenaries” showed the lengths to which US adversaries would weaponise the internet. A spokesperson for the Embassy of the People’s Republic of China in the US, Liu Pengyu stated the US was spreading disinformation about China partnering with cybercriminals. Liu also informed China was opposed to cyber attacks and cyber theft in all forms. (David Klepper, “Cyber criminals are increasingly helping Russia and China target the US and allies, Microsoft says,” AP News, 15 October 2024)

US welcomes giant pandas from China after 24 years, reports CNN
On 15 October, CNN reported that the US had welcomed pandas from China for the first time in 24 years. Two giant pandas called Bao Li and Qing Bao landed at the Dulles International Airport in Washington D.C., in a cargo plane known as “Panda Express.”  The pandas are supposed to remain on loan for 10 years at the National Zoo partnered with the Smithsonian Institution. However, they will be quarantined for 30 days and will not be open for viewing by the general public until 24 January 2025. The US Government will pay the Government of the People’s Republic of China USD 1 million annually to support conservation efforts in China. The panda diplomacy between China and the US has a rich history, having begun after the visit of the President of the US, Richard Nixon to China in 1972. (Nectar Gan, “One’s got a big appetite, the other’s a bit of an introvert. China’s new panda diplomats touch down in DC,” CNN, 15 October 2024)

China Reader Daily Wire | 15 October 2024, Tuesday  | Vol.1 No. 191
ECONOMY
Goldman Sachs revises China’s growth forecast after new stimulus measures, reports Business Insider
On 14 October, Business Insider reported that Goldman Sachs lifted its 2024 GDP growth forecast for China to 4.9 per cent from 4.7 per cent, getting close to Beijing's target of 5 per cent. The upgrade comes after the People’s Bank of China unveiled new stimulus measures, including more public spending and advanced pre-approval of projects next year. Analysts point to a “more backloaded fiscal impulse” and expect a larger growth rebound in Q4. Long-term challenges like demographics, debt deleveraging and global supply chain shifts continue to dent the country’s long-term outlook. Analysts said: “While we have upgraded our cyclical view… our structural view on China’s growth has not changed.” As positive as the upgrade is, it does not alleviate the qualms over the struggling property sector and anaemic domestic demand. The stimulus aims to address these issues, but Goldman Sachs cautions that structural headwinds are unlikely to be reversed by these policy measures. (Kelly Cloonan, “Goldman Sachs raises China growth outlook on optimism over Beijing's fresh push to revive the struggling economy,” Business Insider, 14 October 2024)

CHINA & SOUTHEAST ASIA
Xi and Widodo reaffirm China-Indonesia strategic partnership
On 15 October, in a recent telephone call between Chinese President Xi Jinping and Indonesian President Joko Widodo, the two leaders reiterated their commitment to their bilateral relationships. Xi expressed the desire of China to improve cooperation under the Belt and Road Initiative (BRI), especially in its key projects such as the Jakarta-Bandung High-Speed Railway. Leaders who met frequently over the past decade said their communications have fostered a “new pattern of comprehensive strategic coordination”. Anticipating the 70th anniversary of the Bandung Conference, Xi proposed joint efforts to promote the spirit of Bandung and support Global South countries. Widodo acknowledged China’s contribution to Indonesia’s economic growth and expressed confidence in the future of relations under his country’s incoming government. (“Xi Jinping says China willing to jointly promote high-quality Belt and Road cooperation with Indonesia,” CGTN, 14 October 2024)

CHINA & RUSSIA
Chinese exports to Russia growing at the fastest pace in the last nine months, reports Reuters
On 15 October, Reuters reported that exports from China to Russia had grown at the fastest pace in nine months. Data from the General Administration of Customs of the People’s Republic of China showed Chinese exports to Russia grew by 15.7 per cent in September, compared to a year earlier. This was also higher than the 10.1 per cent growth in Chinese exports in August. On the other hand, imports from Russia declined by 9.2 per cent in September, in comparison to the previous year. The increase was after the Government of the People’s Republic of China and the Government of the Russian Federation signed agreements in August to improve economic cooperation. (“China’s exports to Russia grow in September at the fastest pace in nine months,” Reuters, 15 October 2024)

ECONOMY
Plans for major debt relief plan to boost local government finances
On 12 October, China’s finance ministry announced a significant debt relief plan, labelling the effort as “the strongest measures taken in recent years.” The new program will enhance the ceiling for local government debts while exchanging repressed debts with government bonds. Finance Minister Lan Fo'an revealed that the plan could exceed 2.2 trillion yuan, with an additional 1.2 trillion-yuan quota arranged this year. This may cut down risks and enhance the spendable capacity of local governments. An analyst at Yuekai Securities Luo Zhiheng stated that high-cost, short-term debts are being replaced with lower-interest, longer-term bonds. This is so crucial because local governments account for 86 per cent of public expenditures. Chinese Academy of Social Sciences’ He Daixin thinks that it will let local governments work more efficiently, possibly stimulating consumption and business environment. The plan is set to heighten the confidence of the market and produce new waves in economic development. (“What to know about China's "strongest debt relief measures in recent years",” Xinhua, 14 October 2024)

CHINA & EAST ASIA
Japan condemns Chinese military activity near Taiwan and Yonaguni
On 14 October, Barron reported that Japan voiced its apprehension to China regarding recent military exercises around Taiwan. According to Deputy Chief Cabinet Secretary, Kazuhiko Aoki, Japanese fighter jets were scrambled in response to the naval activity of China off Yonaguni island. While two Chinese ships, including the aircraft carrier Liaoning, had been spotted south of Yonaguni, it was visible that jets were taking off and landing on the aircraft carrier. Aoki said: “China in recent years has been further expanding and activating its military activities around Japan.” This incident marks a continuation of a trend of aggravating relations, following August’s confirmed airspace incursion and September’s unprecedented transit by the Liaoning between Japanese islands. Japan’s subsequent naval transit through the Taiwan Strait further strained relations. (“Japan Told China Of 'Concerns' Over Taiwan Drills, Scrambled Jets,” Barron’s, 14 October 2024)
 

CHINA & SOUTHEAST ASIA
Philippines accuses Chinese vessel of deliberate collision in South China Sea
On 11 October, the Philippines’ Bureau of Fisheries and Aquatic Resources (BFAR) reported a deliberate collision between a Chinese "maritime militia" boat and a Philippine patrol vessel near Thitu island in the South China Sea. The incident happened during a routine maritime patrol and damaged the right-hand side of the bow section of the Philippine ship. Videographic proofs show the Chinese boat, designated 00108, drawing nearer before ramming into BRP Datu Cabaylo. This is the latest tussle between China and the Philippines on territorial issues in the region. Besides charging Beijing for its reported maritime militia, Manila has also accused China of having a maritime militia that Beijing denies. It happened at a time when Philippine President Ferdinand Marcos Jr has been calling for expedited talks over the code of conduct for the South China Sea. China’s expansive claims in that region have been rebuffed by a 2016 Permanent Court of Arbitration ruling to which China continues to object. (“Philippines says 'Chinese maritime militia' boat sideswiped fisheries vessel,” Reuters, 15 October 2024)

CHINA & SOUTH ASIA
Chinese Premier wants to turn CPEC into a demonstration project
On 15 October, CGTN reported that the Premier of China, Li Qiang had stated the Government of the People’s Republic of China was ready to work with the Government of Pakistan to build the China-Pakistan Economic Corridor (CPEC) into a demonstration project for cooperation in the Belt and Road Initiative (BRI). Li made the remarks while marking the completion of the New Gwadar International Airport project in Pakistan, alongside the Prime Minister of Pakistan, Shehbaz Sharif. Li stated the new airport was a key facility for the Gwadar Port to become a regional connectivity hub and an important symbol of the deepening construction of the CPEC. The Chinese Premier also stated the CPEC had achieved fruitful results through the efforts of both China and Pakistan; and had played a positive role in promoting the socioeconomic development of Pakistan. Li informed the Chinese government was ready to work with Pakistan in building a closer community with a shared future, following the principles of joint contribution and shared benefits. Meanwhile, Sharif stated the airport was a demonstration of the China-Pakistan friendship, and the Pakistani government was ready to join hands with China in improving cooperation. (“China, Pakistan to turn CPEC into demonstration project: Chinese premier,” CGTN, 15 October 2024)

CHINA & AFRICA
Chinese pharmaceutical firms expand facilities in Africa, reports SCMP
On 14 October, SCMP reported that Chinese pharmaceutical firms were setting up factories and expanding facilities in African countries. This is a part of increased investments in the health sector under the Belt and Road Initiative (BRI) of the Government of the People’s Republic of China; in what is known as the “health Silk Road.” An example of expanded health facilities under the Health Silk Road is a manufacturing facility for antimalarial drugs and facilities constructed by the Chinese pharmaceutical firm Shanghai Fosun Pharmaceutical in the city of Abdajan in the Ivory Coast. The facility is expected to produce 5 billion tablets annually and provide nearly 1,000 job opportunities, once completed. Another example of manufacturing opportunities under the health silk road is the establishment of a cholera vaccine production factory in Zambia, with the Jijia International Medical Technology Corporation of China and the Industrial Development Corporation from Zambia collaborating on the same. A China-Africa specialist, Lauren Johnston stated the health silk road aimed to improve health outcomes for citizens across BRI countries; while simultaneously creating opportunities for the healthcare industry in China through the construction of clinics and hospitals and the provision of medical supplies and equipment. ( Jevans Nyabiage, “Chinese pharmaceutical firms expand to Africa under ‘health silk road’,” South China Morning Post, 14 October 2024)

CHINA & THE MIDDLE EAST
Lebanon to import more electronics from China after pager attacks, reports SCMP
On 14 October, SCMP reported that Lebanon was planning to import more telecom products from China and reduce its dependence upon the West. The President of the Lebanese Chinese Business Association, Ali Al Abdullah informed that Lebanon and other countries would “turn east for technology” and reduce purchases of tech products from the West due to safety concerns. Al Abdullah also stated the pager explosions were a lesson for Lebanon and the world; and that Western companies would suffer major losses. According to Al Abdullah, some Chinese companies had stayed in Lebanon despite safety concerns due to the war; and this provided encouragement they would continue supporting Lebanon. However, there has been no official confirmation from the Government of the People’s Republic of China that telecom product imports to Lebanon would be increased. ( Meredith Chen, “Lebanon turns to Chinese electronics after West ‘lost credibility’ since deadly attacks,” South China Morning Post, 14 October 2024)

Chinese foreign minister holds calls with Israeli and Iranian foreign ministers, reports Global Times
On 15 October, Global Times reported that the Minister of Foreign Affairs of the People’s Republic of China, Wang Yi had held phone calls with the foreign ministers of both Israel and Iran, expressing his concern over the tensions in the region. During a phone call with the Minister of Foreign Affairs of Israel, Israel Katz, Wang demanded an immediate, complete, and permanent ceasefire in Gaza; alongside unimpeded access of humanitarian aid to the region and the release of all hostages. During the phone call with Katz, the Chinese foreign minister also expressed his opinion that a “two-state solution” was the right way to achieve stability, lasting security, and peaceful co-existence of Israel and Palestine. Wang also stated the Government of the People’s Republic of China was not interested in geopolitical contests in the Middle East and stood on the side of peace and international law. During his phone call with the Minister of Foreign Affairs of Iran, Seyyed Abbas Araghchi; Wang expressed the same sentiments, calling for dialogue to resolve tensions. Wang also stated China was pleased to see the Government of the Islamic Republic of Iran carry out mediation diplomacy and improve understanding and relations with regional countries. (“Chinese top diplomat holds phone calls with FMs of Israel and Iran, calls for immediate, complete and permanent ceasefire in Gaza,” Global Times, 15 October 2024)

CHINA & THE PACIFIC
Products sold by Temu fail Australian safety standards, reports The Guardian
On 14 October, The Guardian reported that several toys sold by Chinese shopping platform Temu had failed safety standards in Australia. Australian consumer advocacy group Choice made the revelations after carrying out tests on the toys. Choice carried out tests on 15 battery-operated toys, including watches, a cartoon projector, a writing tablet, and an electronic pet game. The tests were carried out by Choice after it was observed that some of the Temu products appeared concerning. The Chief Executive of Choice, Ashley de Silva informed most of the toys contained unsafe battery components and failed at least one requirement of mandatory button-battery safety standards. According to de Silva, the results were a reminder of the risk of these toys causing serious injury or death to Australian children. Temu is not a signatory to the online product safety pledge in Australia, which has made it difficult to keep a check on its products. (Daisy Dumas, “Battery-operated items from Temu tested by Choice fail Australian safety standards,” The Guardian, 14 October 2024)

CHINA & RUSSIA
China and Russia’s defence ministers agree to improve cooperation, reports Global Times
On 14 October, Global Times reported that the Minister of National Defence of the People’s Republic of China, Dong Jun, and the Minister of Defence of the Russian Federation, Andrei Belousov had agreed to deepen cooperation following a meeting. The meeting was on the occasion of an official visit by Belousov to China. Dong stated that the friendship between China and Russia had strengthened despite tests. He also stated ties were at an all-time high under the leadership of the President of China, Xi Jinping, and the President of Russia, Vladimir Putin.  Dong also stated the Chinese and Russian militaries must follow the direction provided by Xi and Putin to improve strategic coordination and cooperation, and the joint interests of both countries. Meanwhile, Belousov informed the Government of the Russian Federation was ready to work with the Government of the People’s Republic of China to improve cooperation and push bilateral military relations to a new level. (“
Chinese, Russian defense ministers meet in Beijing, call for deeper cooperation,” Global Times, 14 October 2024)

China Reader Daily Wire | 14 October 2024, Monday | Vol.1 No. 190
CHINA & EUROPE
Chinese carmaker GAC explores the manufacture of EVs in Europe to avoid tariffs, reports VOA
On 13 October VOA reported that Chinese carmaker GAC exploring the manufacture of EVs in Europe to avoid EU tariffs. GAC still regarded Europe as an important open market despite attempts by the European Commission to impose tariffs on EVs made in China. Wei Heigang said: “The tariffs issue has an impact on us. However, all this can be overcome in the long term ... I am positive there is going to be a way to get it all resolved. Local production would be one of the ways to resolve this. We are very actively exploring this possibility.” Furthermore, the compact SUV on display in Paris, called ‘Aion V’ will be launched in some European markets in mid-2025 and priced at a range of USD 43,748 approximately, however, the next GAC vehicle in Europe will be a small electric hatchback planned to be released in late 2025. (“Chinese carmaker GAC considers making EVs in Europe as tariffs loom,” VOA, 14 October 2024)

INTERNAL
China crackdowns on Communist Party officials reading banned books, reports The Guardian
On 12 October, The Guardian reported that the Government of the People’s Republic of China was detaining officials from the Communist Party of China (CPC) for reading banned books. A bookshop owner from Hong Kong, Lam Wing-kee informed officials from the CPC to purchase books informing about ongoing events in China, changes in the governance structures, the hierarchy of top party officials, and struggles between them. According to Lam, the officials often bought books to know about the internal events within their party. However, now officials face accusations of procuring or reading banned materials as a part of corruption cases against them. A former municipal-level official in Heilongjiang, Li Bin was accused of privately reading an illegal publication containing contents undermining the unity and solidarity of the CPC. Li was expelled from the CPC as a result. Former CPC officials Yang Lei and Cheng Zhiyi faced accusations of losing their ideals and beliefs, through reading prohibited books and magazines. The list of books that the Chinese government is critical of includes writings on Chinese politics and history, such as on the policies of Mao Zedong and the Tiananmen Square massacre; or critical of the policies of the Chinese government. Books like The Memoir of Hillary Clinton and The Origins of Totalitarianism by Hannah Arendt are also on the list of banned titles. The book bans also come amidst an increasing crackdown on internal discipline within the CPC by the President of China, Xi Jinping. A professor from Seton Hall University, Margaret Hall stated it remained to be seen if cases for reading illegal titles would move beyond internal proceedings in the CPC towards criminal charges. ( Helen Davidson and Chi-hui Lin, “China cracks down on Communist party officials for reading banned books,” The Guardian, 12 October 2024)

ECONOMY
China promises more fiscal stimulus for economy, says China’s Ministry of Finance
On 12 October, Reuters reported that the Ministry of Finance of the People’s Republic of China had promised more stimulus and debt issuance to revive the economy. The Minister of Finance of the People’s Republic of China, Lan Foan stated the Chinese government would support local governments in tackling their debt problems. He also promised other measures such as recapitalizing banks, supporting the property market, and offering subsidies for individuals with a low income. However, the size of government investments in the stimulus package has not been revealed. This is likely to increase the tensions of investors for a clearer roadmap towards reviving the Chinese economy. The Managing Director for investment strategy at OCBC in Singapore, Vasu Menon stated the Chinese government did not announce the large-scale fiscal stimulus expected by investors. Menon also stated that the press conference by Lan was strong on determination but lacking in numerical details. The People’s Bank of China announced the most aggressive monetary support measures since the COVID-19 pandemic last month, including interest rate cuts and a liquidity injection of about CNY 1 trillion. However, investors are of the view the Chinese government needs to engage in structural reforms to boost consumption and improve market sentiment. The International Monetary Fund calculated China had an overall public debt of about USD 16 trillion, or 116 per cent of its total Gross Domestic Product (GDP). Lan promised the Chinese government would launch structural reforms, step-by-step. (Kevin Yao and Joe Cash, “China flags more fiscal stimulus for the economy, leaves out key details on size,” Reuters, 12 October 2024)

China’s plan to improve economic growth flawed, states op-ed in The Guardian
On 13 October, an op-ed in The Guardian argued the present approach by the Government of the People’s Republic of China to revive its declining economy was flawed.  According to the op-ed, the Chinese government had launched a series of economic stimulus measures for the fourth time in the past 16 years. The op-ed stated these measures had failed due to the Chinese government being focused on only the short-term outlook. The op-ed argued the Chinese government needed to resolve the long-term structural issues that the Chinese economy was plagued by.  The op-ed stated that the current measures announced by the Chinese government were extensions or variants of pre-existing governmental policies that had not left a positive impact. The op-ed also gave its opinion that the governmental measures announced now were not enough to stabilize the employment and property markets or help in income growth. The op-ed stated the economic agenda followed by the President of China, Xi Jinping was a Leninist one of “high-quality development” which focused more on using state and party-led industrial policies to allocate capital for dominating modern science, technology, and innovation in the global system. However, the op-ed believed liberal and open economic reforms were required to address the macroeconomic imbalances and troubles that hampered plans of technological dominance by China. The op-ed argued a sustainable expansion of the income and consumer demand shares of the Chinese economy, an end to deflation risk, promotion of private enterprise, income redistribution, and tax reforms were among the steps the government needed to take to improve the economy. The op-ed concluded that the Chinese government needed to move away from the focus on merely Gross Domestic Product (GDP) growth and undertake structural changes. ( George Magnus, “China’s plan to boost flagging growth is the very definition of economic insanity,” The Guardian, 13 October 2024)

ENERGY & ENVIRONMENT
Chinese ultra-deepwater gas field records accumulated natural gas output, reports CGTN
On 14 October, CGTN reported that the first ultra-deepwater gas field independently developed and built by China, Shenhai Yihao or Deep-Sea No 1 had recorded a high level of accumulated natural gas output. The accumulated natural gas output amounts to over 9 billion cubic meters, while the oil output is over 900,000 cubic meters.  The oil field can operate at a maximum marine depth of over 1,500 meters. The China National Offshore Oil Corporation informed Shenhai Yihao would increase its peak annual output from 3 billion cubic meters to 4.5 billion cubic meters, once the phase II project aimed towards upgrading the oil field was operational. The phase II project involves facilities such as 12 deepwater gas wells, five submarine pipelines, and a comprehensive processing platform weighing over 14,000 tonnes. Shenhai Yihao is expected to be an important gas source for the energy security of China by then. (“Chinese deepwater gas field sees record-high oil, gas output,” CGTN, 14 October 2024)

CHINA & EAST ASIA
Japanese leader’s call for NATO-like nuclear sharing to deter China, reports SCMP
On 13 October, SCMP reported that the plans of the new Prime Minister of Japan, Shigeru Ishiba to create an “Asian version of NATO”, and engage in the sharing of US nuclear weapons in the Asia-Pacific could create a new nuclear race in the region. Ishiba stated an Asian version of NATO was required to deter the threat posed by countries like China, Russia, and North Korea. Japan has had a policy of no possession of nuclear weapons since World War II, and relies upon the “extended deterrence” nuclear umbrella of the US for protection alongside other US allies in the Asia-Pacific like South Korea and Australia. However, increasing military tensions in the region threatened to change the status quo. A non-resident Senior Fellow at the Atlantic Council Scowcroft Centre for Strategy and Security, Ryo Hinata- Yamaguchi stated nuclear sharing was being discussed despite the no-nuclear policy of Japan. Hinata-Yamaguchi also stated the US policy would decide the future of nuclear sharing in the region. He stated nuclear sharing involving Japan would increase tensions in the Asia-Pacific region, and lead to China escalating its military strategies towards Japan. A visiting fellow at the Japan Institute for International Affairs, Stephen Nagy stated nuclear sharing between Japan and the US was unlikely to take place in the next decade. However, Nagy also believed the Government of the People’s Republic of China would continue to acquire tactical nuclear weapons, based on its understanding that the US lacked adequate resources for conventional action against China and North Korea. Nagy believed there would be increased synergies and commitment between the US and its Asia-Pacific allies in terms of deterrence and security cooperation, due to the shared challenges. Senior Fellow at the S. Rajaratnam School of International Studies, Collin Koh believed the increasing Western expansionism would result in the Chinese government prioritizing its nuclear build-up. ( Seong Hyeon Choi,  “Japan’s leader is calling for Nato-like nuclear sharing with the US. Will it deter China?,” South China Morning Post, 13 October 2024)

CHINA & SOUTHEAST ASIA
China-Vietnam emphasise handling differences through diplomacy, reports CGTN.
On 13 October, CGTN reported that the Government of the People’s Republic of China and the Government of Vietnam had stressed the need to handle their differences through consultation and diplomacy. The Premier of China, Li Qiang urged friendly consultation and proper handling of differences between the two sides during a meeting with the Prime Minister of Vietnam, Pham Minh Cinh. Li stated the Chinese government supported Vietnam in following a path suiting its national conditions and called for the alignment of development strategies like the Belt and Road Initiative of China and the One Economic Circle strategy of Vietnam. Li also stated Beijing was ready to improve cooperation with Vietnam in areas like connectivity, trade and investment, tourism, disaster prevention and management, digital economy, and green development. The Chinese premier also informed China was prepared to strengthen coordination and cooperation with Vietnam at multilateral platforms such as the United Nations and Asia-Pacific Economic Cooperation, to promote fairer global governance. He also encouraged more cultural and people-to-people exchanges between China and Vietnam, to increase mutual understanding. Meanwhile, Pham Minh Cinh stated developing relations with China was a top priority and strategic choice for Vietnam. He also informed Vietnam was ready to manage ties between China and Vietnam in a friendly manner, and maintain exchanges in fields like cross-border infrastructure, education, and tourism. (“China, Vietnam stress handling differences via friendly consultation,” CGTN, 13 October 2024)

CHINA & RUSSIA
Russia-China blocks a proposed accord for the East Asia Summit, reports The Guardian
On 13 October, The Guardian reported on a US official statement that Russia and China blocked a proposed accord for the East Asia Summit by Southeast Asian countries over the South China Sea dispute. An official in the East Asia Summit meeting in Laos said: “ASEAN presented this final draft and said that, essentially, this was a take-it-or-leave-it draft, the United States, Japan, Australia, South Korea, and India all said they could support it. The Russians and the Chinese said that they could not and would not proceed with a statement.” Additionally, the Russian foreign minister, Sergei Lavrov stated that the final declaration had not been adopted due to stubborn attempts by the United States, Japan, South Korea, Australia, and New Zealand to flip it into a complete political statement.” Furthermore, according to Reuters, it stated that the 2023 UN resolution in UNCLOS set out the legal framework for all ocean and sea activities. However, the Chinese premier, Li Qiang, said: “Beijing was committed to UNCLOS and striving for an early conclusion of a code of conduct while stressing its claims have solid historical and legal grounds. Relevant countries outside the region should respect and support the joint efforts of China and regional countries to maintain peace and stability in the South China Sea, and truly play a constructive role in peace and stability in the region. (“Russia and China accused of blocking ASEAN statement due to dispute over the South China Sea,” The Guardian 14 October 2024)

China Reader Daily Wire | 12 October 2024, Saturday | Vol.1 No. 189
SCIENCE & TECHNOLOGY
China builds the world’s largest transparent spherical detector to detect neutrinos
On 11 October, China built the world’s largest transparent spherical detector to detect neutrinos that are often called “ghost particles”. The Jiangmen Underground Neutrino Observatory, 700 m beneath a hill in Guangdong Province, is centred by a 35.4-metre diameter acrylic sphere. This giant detector, capable of working for at least 30 years, watches neutrinos coming from nearby nuclear plants and cosmic phenomena to unravel the secrets of the universe. According to JUNO chief scientist Wang Yifang, it may indeed lift the veil from our understanding of neutrino mass hierarchy and how the universe has evolved. The facility’s construction has overcome many technological challenges, including creating an ultra-clean environment and developing highly sensitive photomultiplier tubes. Once operational in August 2025, JUNO will be sensitive to about 40 reactor neutrinos per day as well as atmospheric, geo-, and solar neutrinos. The experiment is an international collaboration that brings together over 700 scientists representing 17 countries and is based on China’s earlier successes with the Daya Bay Reactor Neutrino Experiment. (“China Focus: China builds huge underground transparent sphere to trap "ghost particles"” Xinhua, 11 October 2024)

CHINA & SOUTH ASIA
Chinese envoy praises Bangladesh student protestors, reports SCMP
On 11 October, SCMP reported that the Ambassador of the People’s Republic of China to Bangladesh, Yao Wen had praised the courage and wisdom of student protestors in Bangladesh. Yao made the remarks during a meeting with student leaders, some of whom have joined the new interim government of Bangladesh. The Embassy of the People’s Republic of China in Bangladesh informed Yao had encouraged the student leaders to positively contribute towards Bangladesh and return it to the right track of unity, stability, development, and prosperity. According to the embassy, the student leaders also praised China during the meeting, calling it a true and reliable friend which had sent an emergency medical rescue team to treat injuries during the protests. The student leaders also informed they would continue making positive contributions to develop the traditional friendship between China and Bangladesh. (Zhao Ziwen, “Chinese envoy praises Bangladesh student protestors while urging return to stability,” South China Morning Post, 11 October 2024)

CHINA & SOUTHEAST ASIA
China and Vietnam reaffirm strategic partnership in high-level Beijing meeting
On 11 October, Chinese President Xi Jinping met with a senior Vietnamese Communist Party official, Luong Cuong in Beijing to deepen bilateral ties. Xi added that communist party leadership and socialism form the premise of their relationship and therefore China treats Vietnam at the top of its neighbourhood diplomacy. He called for in-depth cooperation and building a “China-Vietnam community with a shared future that carries strategic importance.” Xi pointed out that China and Vietnam need to maintain the right political orientation under international changes and seek greater exchange in governance, development strategy, and people-to-people relations. He stressed that the reforms China has initiated are also in the fundamental interests of Vietnam. Luong Cuong reflected on the stand of his counterpart saying that the creation of ties with China is a “strategic choice and top priority”. He asserted that Vietnam still adheres to materialising agreements which were already attained, developing cooperation, and resolving disagreements between the two parties. Both heads of state confirmed the importance of this strategic comprehensive cooperative partnership and the mutual spirit of building a community with a shared future between both countries. (“Xi Jinping calls for efforts to promote China-Vietnam community with shared future,” CGTN, 12 October 2024)

INTERNAL
China unveils draft law to strengthen private sector development, reports Ministry of Justice of the People’s Republic of China
On 11 October, the Ministry of Justice of the People’s Republic of China reported that a new draft law proposed represents an important step toward the development of China’s private sector. Draft legislation jointly published by the Ministry of Justice and the National Development and Reform Commission aims for private businesses to be equally treated and protected. Comprising 77 articles across nine chapters, it addresses key areas ranging from fair market participation and improved access to financing to support for technological innovation. In the draft, a harmonised negative list system for access to the market is established, encouraging investment in sectors of emerging and traditional industries by private enterprises. The draft also proposes private enterprises’ inclusion in national scientific research projects and major technological initiatives. The law imposes an obligation to effectively communicate between government and businesses. It also states that input from private enterprises should be sought when formulating regulations or making major decisions affecting entities within the market. If the legislation is passed, it will mark China’s first foundational law when it comes to private economic development. (“China solicits public opinion on draft law on private sector promotion,” Ministry of Justice of the People’s Republic of China, 11 October 2024)

ECONOMY
China signals potential for increased fiscal stimulus amid economic challenges, informs China’s Finance Minister
On 12 October, China’s Finance Minister Lan Fo’an hinted at the possibility of expanding government debt and deficit to bolster the economy during a press briefing. While specific details were not revealed, Lan emphasised that there is “rather large” room for deficit increase, suggesting that more stimulus measures may be possible. Additionally, the finance ministry intends to deal with local government debt problems, stabilise the real estate sector, and act for employment. Vice Minister of Finance Liao Min has also cited potential cuts for real estate tax and the ability to apply affordable housing subsidies to existing inventory. China remains under economic headwinds with modest retail sales growth and the suffering property market. Economists have been demanding more fiscal support, which can be between 2 trillion yuan and over 10 trillion yuan. All eyes will now be on the parliamentary meeting and also the third quarter GDP figures that are to be released on 18 October. These will have crucial implications for China’s immediate economic trajectory and any stimulus measures that will come out in the future. (Evelyn Cheng, “Chinese finance minister hints at increasing the deficit at highly anticipated briefing,” CNBC, 11 October 2024)

SCIENCE & TECHNOLOGY
China’s technological leap from BeiDou to green innovation, says an editorial in Xinhua
On 04 October, Xinhua reported China took leaps forward in the area of technological innovation under the leadership of President Xi Jinping. This is seen in the completion of the BeiDou-3 Navigation Satellite System, new energy vehicles, and developments in renewable energy. Xi said: “Chinese modernization should be supported by sci-tech modernization,” a vision reflected in China’s rise to 11th place in global innovation rankings. The BeiDou system is now common to over 98 per cent of Chinese smartphones, which shows the measure of this country’s progress in ensuring that technology features the daily life of its people. China’s interest in green development can be seen in the renewable energy sector, where it accounted for more than 40 per cent of global annual installations over the last decade. This explains the drops in the cost of wind and solar power all over the world. Xi’s enterprise-led innovation has especially spurned new energy vehicle manufacturers, given the country exported 818,000 such automobiles in early 2024. (“Xi Focus: Leading the way to Chinese modernization through sci-tech innovation,” Xinhua, 04 October 2024)

CHINA & SOUTHEAST ASIA
China and Laos reaffirm commitment to deepen strategic partnership
On 11 October, Chinese Premier Li Qiang and Lao President Thongloun Sisoulith vowed to keep their nations’ bilateral relationship strong at the meeting in Vientiane. Li assured Laos that China is in full preparation to develop a “community with a shared future characterized by high standards, high quality, and a high level of cooperation”. He also highlighted Laos’ special position in the neighbourhood diplomacy of China and called for the acceleration of the implementation of their joint action plan. In their speeches, the two leaders stated that further improvement of cooperation is called for in several areas, including trade, investment, and infrastructure, especially in the project of the China-Laos Railway. Laos Minister Thongloun Sisoulith praised President Xi Jinping’s reiterations of Chinese development achievements. He also described Laos’ devotion to the one-China principle and support for global initiatives and core interests pursued by China. High-level exchanges, consistent development strategies, and strengthening cultural ties were essential for both presidents. (“Li Qiang calls on China, Laos to enhance practical cooperation,” CGTN, 12 October 2024)

China and Singapore strengthen ties emphasising mutual development and cooperation
On 11 October, Chinese Premier Li Qiang and Singaporean Prime Minister Lawrence Wong reaffirmed their commitment to further bilateral cooperation in a meeting held in Vientiane. Li emphasised the willingness of China to cooperate with Singapore in mutual modernisation processes and urged strategic communication and mutual support. Since the two nations are in transitional phases of development, Li has called for advanced cooperation between the nations in the manufacturing, digital economy, and artificial intelligence sectors. Wong stated these views, remarking on progress in the areas of cooperation. He reiterated Singapore’s firm commitment to the one-China policy and supported China’s accession to trade agreements like CPTPP and DEPA. Both leaders stressed the need for strengthening economic ties and people-to-people exchanges and coordination multilaterally. In agreement with the approaching 35th anniversary of diplomatic relations, both agreed to lead their partnership in a quality, forward-looking way contributing to regional peace, stability, and prosperity. (“China ready to partner with Singapore on modernization: Premier Li,” CGTN, 12 October 2024)

CHINA & EAST ASIA
Chinese and Japanese premiers promise stable ties after meeting, reports SCMP
On 11 October, SCMP reported that the Premier of the People’s Republic of China, Li Qiang and the Prime Minister of Japan, Shigeru Ishiba had promised to maintain stable ties between their countries. The meeting between the two leaders took place on the sidelines of the ASEAN Summit in Laos, and was the first high-level exchange between China and Japan since Ishiba became Prime Minister. The Ministry of Foreign Affairs of the People’s Republic of China informed Li had urged the promotion of strategic and mutually beneficial relations with Japan while maintaining stability in global supply chains. Li also stated the Government of the People’s Republic of China was ready to work with the Government of Japan to utilize their comparative advantages and cooperate in fields like scientific and technological innovation, green development, and the digital economy. Li also expressed concerns over export restrictions by Japan and urged joint efforts by China and Japan to protect the industrial supply chains and free trade system. The Ministry of Foreign Affairs of Japan informed the two leaders had agreed to continue communications at all levels, including summits. Ishiba also made clear his concerns over increasing Chinese military activity around Japan; as well as the fatal stabbing of a Japanese schoolboy in China. Ishiba urged the Chinese government to ensure greater security for Japanese expatriates and crack down on anti-Japanese content in social media. The new Prime Minister has proposed radical new plans to change the security landscape in Asia, such as the creation of a NATO-like framework in Asia, allowing the deployment of Japanese troops on US soil; alongside planning to upgrade the defence capabilities of Japan. These proposals have made the Chinese government wary. ( Alyssa Chen, China’s Li Qiang and Japanese PM Ishiba pledge stable ties in first meetingSouth China Morning Post, 11 October 2024)

CHINA & SOUTH ASIA
Maldives caught between India and China, states op-ed in Greater Kashmir
On 12 October, an op-ed published in Greater Kashmir stated the Government of the Maldives was having to rely upon both the Government of the People’s Republic of China and the Government of India for economic ties and support. The op-ed informed how the President of the Maldives, Mohamed Muizzu had run an election campaign with the slogan “India Out”, and campaigned for removal of all Indian military presence from the Maldives. According to the op-ed, Muizzu was more sympathetic toward the Chinese government; and showed it through his actions after taking office such as visiting China and the elevation of China-Maldives ties to a Comprehensive Strategic Cooperative Partnership. However, according to the op-ed, Muizzu realized he could not completely ignore India and treat it with disdain. The op-ed stated that the poor financial condition of the Maldives made Muizzu adopt a more balanced relationship. The op-ed also stated the Indian government did not behave in an improper manner with the Maldivian government; and understood it needed to maintain diplomatic relations with the Maldives for the purposes of its maritime security. The op-ed informed how the Prime Minister of India, Narendra Modi and Muizzu agreed to set out a roadmap for a comprehensive economic and maritime security partnership covering fields such as development and security cooperation, health and energy. According to the op-ed, the Maldivian government will continue to engage with both India and China for its defence and security capabilities. The op-ed also argued that the Indian government would have to make it clear that there would be consequences if the Maldives took actions negatively impacting Indian security interests. Another key argument put forth in the op-ed is that the Indian government must inform the Maldivian government of the consequences of closer economic ties with China, pointing to the example of countries like Sri Lanka. The op-ed concluded by stating that money is the deciding factor in inter-state ties, giving the example of how India is continuing to provide financial assistance to Maldives. (Vivek Katju, “Maldives: Between China and India,” Greater Kashmir, 12 October 2024)

China Reader Daily Wire | 11 October 2024, Friday | Vol.1 No. 188
OUTERSPACE
China launches high-orbit internet services satellite, reports Global Times
On 11 October, Global Times reported that the Government of the People’s Republic of China had launched a new high-orbit internet services satellite into space. The satellite was launched aboard a Long March-3B carrier rocket from the Xichang Satellite Launch Centre in Sichuan Province. This was the third high-orbit internet services satellite launched by the Chinese government. It is also the 538th mission by the Long March carrier rockets. (“China launches third high-orbit internet services satellite,” Global Times, 11 October 2024)

CHINA & RUSSIA
Chairman of US Joint Chiefs of Staff states that China-Russia activities in the Arctic are a growing concern, reports SCMP
On 10 October, SCMP reported that the Chairman of the US Joint Chiefs of Staff, General Charles Brown had stated increasing joint activities between the Government of the People’s Republic of China and the Government of the Russian Federation in the Arctic were a matter of concern. Brown stated it remained to be seen whether China and Russia were undertaking the activities for a positive benefit or to challenge other nations and other interests.  Brown also informed the US Government remained focused on deterring malign activities in the region including the Russian modernization capabilities posing a risk to allied territories and the growing influence of China. Cooperation in the Arctic region between China and Russia has grown in recent years, with both countries having conducted joint coastguard exercises, joint maritime and air patrols, and joint naval drills in the past few months. The President of China, Xi Jinping, and the President of Russia, Vladimir Putin had announced plans to build a “Polar Silk Road.” The “Polar Silk Road” through the Arctic Ocean would reduce dependence on vulnerable maritime checkpoints such as the Strait of Malacca and the Suez Canal. (Enoch Wong, “We ‘all need to pay attention’ to China and Russia in the Arctic, says top US commander,” South China Morning Post, 10 October 2024)

CHINA & SOUTH ASIA
Indian defence minister to inaugurate infrastructure projects along India-China border, reports Hindustan Times
On 10 October, Hindustan Times reported that the Minister of Defence of India, Rajnath Singh would inaugurate 75 projects worth INR 2,236 crore along the India-China border.  The projects come amidst a continuing increase in infrastructure projects built by the Government of the People’s Republic of China along the border with India. The projects include roads and bridges that will significantly improve military mobility and logistics support for deployed forces in forward areas in Ladakh, Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Sikkim, and Arunachal Pradesh. Singh will inaugurate the Kupup-Sherathang road in Sikkim in person, and inaugurate the remaining 74 projects virtually.  Anonymous officials from the Government of India stated the new projects would take the number of Border Roads Organization (BRO) infrastructure projects in India to 111 with a total cost of INR 3,751 crore. The officials also informed the projects to be inaugurated by Singh including 22 roads and 51 bridges; with the vast majority of the projects in Jammu and Kashmir, Ladakh, and Arunachal Pradesh. The officials also informed the BRO had completed the projects in record time, with several of them executed in a single season using state-of-the-art technology. The Indian government has been attempting to improve its defence preparedness on its northern and western borders, with the BRO having completed 450 infrastructure projects in the past five years. The increased connectivity will help India in troop deployments, and compete with the infrastructure push by China. ( Rahul Singh, “Rajnath to inaugurate projects worth ₹2,236 cr in infra push along China border,” Hindustan Times, 10 October 2024)

INTERNAL
President Xi greets Chinese senior citizens on the occasion of Seniors’ Day, reports CGTN
On 10 October, CGTN reported that the President of China, Xi Jinping had sent greetings to elderly citizens. Xi sent the greetings on the eve of Seniors’ Day in China on 11 October. Xi expressed his hopes that the senior citizens were well provided for, enjoyed their lives, and continued their pursuits. Xi also stated that senior citizens who participated in the national voluntary initiative known as Silver Age Action had actively participated in volunteer activities in recent years, applying their knowledge and skills to serve the public. According to the Chinese president, this showed the spirit of the Chinese elderly in the new era. Xi further stated that committees from the Communist Party of China and governments at all levels must prioritize work related to the elderly; and encourage efforts and policies aimed at meeting the interests and concerns of the senior citizens. (“Xi Jinping extends greetings to elderly on eve of China’s Seniors’ Day,” CGTN, 10 October 2024)

Former Chinese deputy central bank head given life imprisonment after reprieved death sentence, reports Reuters
On 10 October, Reuters reported that the former Vice Governor of the People’s Bank of China, Fan Yifei had been handed a suspended death sentence for accepting bribes. Fan was found guilty on charges of illegally accepting property worth over CNY 386 million. While announcing the judgment, the Huanggang Intermediate People’s Court stated Fan Yifei had accepted bribes of an extremely large amount with the social impact and circumstances of his crime extremely severe. The court also informed Fan had a two-year reprieve from his sentence, after which his death sentence would be commuted to life imprisonment. There is no possibility of commutation or parole from the sentence for Fan. The former Vice-Governor was placed under investigation by Chinese authorities in 2022; and is the highest-ranked official at the People’s Bank of China to be arrested as a part of anti-corruption investigations by the Government of the People’s Republic of China in the past decade. The investigations by government officials have resulted in the arrest of several prominent figures in the Chinese financial sector, such as the former Chairman of the Bank of China, Liu Liange. (“Former China deputy central bank head gets suspended death sentence for taking bribes,” Reuters, 10 October 2024)

China’s National Development and Reform Commission and the Ministry of Justice China plan new law to protect the private sector, reports SCMP
On 10 October, SCMP reported that the Government of the People’s Republic of China had released the draft of a law related to the promotion and protection of the private sector. The National Development and Reform Commission (NDRC) and the Ministry of Justice of the People’s Republic of China informed the legislation would mark a “systemic approach” to meet the challenges of the private sector, alongside helping create a fair, predictable, and stable business environment. The legislation draft proposes measures such as enhancing the investment and financing environment, encouraging private sector involvement in scientific projects and technological innovation, and safeguarding economic rights and interests; to promote fair market competition. The draft also listed steps for the protection of private entrepreneurs; such as ensuring the protection of private property and personal rights and requiring law enforcement agencies to clearly distinguish between economic disputes and economic crimes. Additionally, law enforcement agencies would be required to differentiate between the assets of an enterprise and the personal property of an operator while conducting raids. The draft proposal comes amidst a decline in private firm activity in China due to weak consumer spending and government crackdowns. A senior researcher at the think tank China Enterprise Institute, Tang Dajie stated the proposed bill did not extend beyond the policies rolled out in recent years; lacked specific target requirements, and placed undue moral constraints upon businesses. (Mia Nulimaimaiti, “China moves to elevate and protect its private sector with the new draft law,” South China Morning Post, 10 October 2024)

CHINA & TAIWAN
Taiwan informs four Foxconn employees detained by China, reports Reuters
On 10 October, Reuters reported that the Government of Taiwan had informed that four employees from Taiwanese electronics manufacturer Foxconn were detained in China. The Mainland Affairs Council of Taiwan stated the four employees were detained in the Chinese city of Zhengzhou, on suspicion of a “breach of trust.” The Council stated the circumstances of the case were strange, and it might be connected to corruption and abuse of power by some Chinese officials. The Council also informed that Foxconn had suffered no losses, but the case had damaged the confidence of companies. Foxconn declined to comment on the case. (“Taiwan says four Foxconn employees detained in China,” Reuters, 10 October 2024)

CHINA & SOUTHEAST ASIA
Chinese Premier wants to improve friendship and cooperation with Thailand, reports CGTN
On 11 October, CGTN reported that the Premier of China, Li Qiang had stated the Government of the People’s Republic of China was ready to work with the Government of Thailand to improve their traditional friendship and cooperation between the two countries. Li made the remarks during a meeting with the Prime Minister of Thailand, Paetongtarn Shinawatra on the sidelines of the leaders’ meetings on East Asia cooperation. Li stated a China-Thailand community with a shared future was continuing to progress, with the result of fruitful cooperation across different fields and increasingly vibrant people-to-people exchanges. Li also informed the Chinese government was willing to be a partner for Thailand in its developmental activities, and cooperate and communicate with Thailand better in areas such as the construction of the China-Thailand railway, industrial parks, new energy vehicles, and the digital economy. The Chinese Premier also expressed his desire that China and Thailand jointly host activities to commemorate 50 years of diplomatic ties next year and increase media, culture, and youth exchanges to consolidate public support for friendship. Shinawatra also reaffirmed her desire to improve cooperation with China and work together on areas like combating transnational crimes, promoting mutually beneficial cooperation, and improving cultural and people-to-people exchanges. (“Premier Li: China aims to strengthen traditional friendship, cooperation with Thailand,” CGTN, 11 October 2024)

Philippines agreement unlikely to curb China South China Sea ambitions, states op-ed in East Asia Forum
On 05 October, an op-ed published in the East Asia Forum stated a temporary agreement signed between the Government of the People’s Republic of China and the Government of the Philippines on the South China Sea was unlikely to hamper China’s ambitions in the South China Sea. The agreement allowed the Filipino government to deliver supplies to Filipino naval troops stationed at the naval warship in the disputed area, BRP Sierra Madre. According to the op-ed, the agreement would protect the lives of Filipino soldiers but do little to change the prevailing scenario in the region. The op-ed argued this was because the agreement recognized the right of the Philippines to the Exclusive Economic Zone(EEZ), undermining the Chinese agenda in the South China Sea. The op-ed stated the deal could have strategic benefits for China since it would provide China with a brief reprieve from encounters that could escalate into military conflicts. However, the op-ed also warned the Chinese government was unlikely to sustain a deal that could weaken its military position. The op-ed informed that the BRP Sierra Madre was an old ship, and if it collapsed, the Philippines would be forced to abandon the ship. According to the op-ed, this would be a strategic win for China. A key argument laid out in the op-ed was that the Filipino government must invoke the past decision by the Permanent Court of Arbitration dismissing Chinese claims in the South China Sea. According to the op-ed, this would help the Philippines negotiate from a position anchored in international law and help promote a rules-based maritime order in the South China Sea.  The op-ed also laid out its opinion that the Chinese government was facing problems in coordinating its strategic, economic, and diplomatic policies, which could disrupt the ambitions of Chinese hegemony. According to the op-ed, China needed free trade grounded in the rules-based liberal economic order, and could not be outright antagonistic towards the West. The op-ed concluded that the Chinese government would need to reconcile the damage done to its diplomatic and economic ties by its territorial ambitions. ( Jenny Balboa and Shinji Takenaka, “Beijing’s South China Sea ambitions won’t be battered by China-Philippines agreement,” East Asia Forum, 05 October 2024)

CHINA & THE PACIFIC
Chinese Premier expresses that China-Australia ties are progressing, reports CGTN
On 10 October, CGTN reported that the Premier of China, Li Qiang had stated ties and cooperation between China and Australia were steadily increasing. Li made the remarks during a meeting with the Prime Minister of Australia, Anthony Albanese on the sidelines of the leaders’ meetings on East Asia cooperation.  Li stated the Government of the People’s Republic of China was willing to strengthen mutual understanding with the Government of Australia, to build a more mature, stable, and fruitful China-Australia comprehensive strategic partnership that benefits the citizens of both countries. Li also stated China was ready to share more development opportunities and strengthen exchanges and cooperation with Australia; especially in fields like trade and investment, scientific and technological innovation, and green development. The Premier also emphasized the need to work together to safeguard peace and stability in the Asia-Pacific region; and expand cultural exchanges between China and Australia alongside greater business investment.  Meanwhile, Albanese stated ties between China and Australia were developing positively. Albanese also expressed a willingness to improve cooperation with China in fields like climate change and clean energy. He also expressed support for cultural and people-to-people exchanges to promote the sustained development of bilateral ties. (“Chinese Premier hails recent progress in China-Australia ties,” CGTN, 10 October 2024)

CHINA & CENTRAL ASIA
Deputy Minister of Foreign Affairs of Kazakhstan affirms that close ties with China to continue, reports SCMP
On 10 October, SCMP reported that the Deputy Minister of Foreign Affairs of Kazakhstan, Alibek Kuantyrov had stated the Government of Kazakhstan would continue working with the Government of the People’s Republic of China. Kuantyrov informed that the Kazakh government would continue its close coordination with China on international platforms like the United Nations and the Shanghai Cooperation Organization (SCO). Kuantyrov also informed that Kazakhstan viewed its hosting of the SCO summit next year as an opportunity to take ties between Central Asia and China to a “new level of partnership.” Kuantyrov stated joint connectivity projects like the Belt and Road Initiative and the Middle Corridor transport route would be the focus of the summit, which would also aim to enhance the role of Central Asia in global trade and diplomacy. The deputy foreign minister also informed bilateral ties between Kazakhstan and China were founded on a high level of political mutual trust and shared interests. He also stated the development in trade relations reflected natural economic trends like the global economic rise of China and the strategic position of Kazakhstan as a transit hub between Europe and Asia. Kuantyrov also informed Kazakhstan would continue to follow a balanced foreign policy wherein it aimed at promoting cooperation, stability, and development without taking sides. (Orange Wang, “Kazakhstan sees more ‘close coordination’ with China in platforms like UN, SCO,” South China Morning Post, 09 October 2024)

CHINA & THE AMERICAS
Chinese investment in Mexico may be six times higher, reports Rhodium Group
On 11 October, an opinion in the South China Morning Post titled “China’s Mexico investment may dwarf official figures, with estimated US$13 billion in play,” looked into Chinese investment in Mexico around US-imposed tariffs could be six times more than the original data. The Washington-based Rhodium Group has turned up more than 700 completed foreign direct investment transactions from China to Latin America contributing USD 13 billion. However, Chinese investment mostly produces motor vehicles, electronics, and consumer goods. The Rhodium Group said: “Although it represents a relatively small portion of total foreign investment, Chinese FDI in Mexico is significantly higher than shown in official statistics, while some Chinese firms are eyeing the local Mexican market, overall investment appetite will be shaped by market access to the US.” Rhodium uses a comprehensive method compared to government officials like investments that pass through third countries scrutinizing projects in Mexico. Additionally, Washington pursued new measures to ban Chinese-made vehicles from the US market. The Rhodium Group stated that Chinese manufacturers would be effectively closed only by the new actions. Mexico’s Secretariat of Economy reported Chinese investment stock of USD 1.2 billion for last year, furthermore, Evan Ellis, a research professor of Latin American studies at the US Army War College’s Strategic Studies Institute said: “Differences in calculation methods should explain Rhodium’s higher estimates, I can’t say who’s right and who’s wrong, but it doesn’t surprise me if there are significant questions and methodological differences regarding what is and what is not Chinese capital.” (“China’s Mexico investment may dwarf official figures, with estimated US$13 billion in play,” South China Morning Post, 11 October 2024)

China Reader Daily Wire | 10 October 2024, Thursday | Vol.1 No. 187
CHINA & EUROPE
China-Serbia sign MoU on modernization of airport, reports CGTN
On 10 October, CGTN reported that the Government of Serbia had signed a Memorandum of Understanding (MoU) with the China Shandong International Economic & Technical Cooperation Group. The project relates to the second phase of construction and modernization of the Constantine the Great Airport in the Serbian city of Nis. The Minister of Construction, Transport and Infrastructure of Serbia, Goran Vesic stated the project and its features like the rehabilitation of the airport runway, expansion of the aircraft parking platform, construction of new taxiways, and construction of a new control tower would ensure the airport reached full operational capacity. The Ambassador of the People’s Republic of China to Serbia, Li Ming stated that airport modernization would improve passenger traffic and cooperation between China and Serbia. The airport modernization is expected to be completed by 2027, according to the  Ministry of Construction, Transport and Infrastructure of Serbia. (“China, Serbia sign MoU on modernizing airport in Serbia’s Nisl,” CGTN, 10 October 2024)

ECONOMY
Chinese central bank launches yuan swap facility for improving capital market, reports Global Times
On 10 October, Global Times reported that the People’s Bank of China (PBC), the central bank of China had announced the launch of a CNY 500 billion swap facility. The new facility would allow eligible financial institutions to use assets as collateral to secure liquidity. The aim of the new facility is to boost the healthy and stable development of the capital market. The PBC stated the new facility known as the Securities, Funds and Insurance Companies Swap Facility (SFISF) would allow eligible securities, funds, and insurance companies to swap their holdings of bonds, stock exchange-traded funds(ETFs), and stocks as collateral for high-liquidity assets like government bonds and central bank bills. The Governor of the PBC, Pan Gongsheng stated if the initial funding of CNY 500 billion was successful, there could be more funding which would be utilized only for investing in the stock market. Measures like these by the Government of the People’s Republic of China to stimulate the economy have revitalized the stock market. (“China’s central bank launches 500 billion yuan swap facility to boost capital market,” Global Times, 10 October 2024)

EXTERNAL
Chinese Premier affirms support for ASEAN, reports CGTN
On 10 October, CGTN reported that the Premier of China, Li Qiang had stated the Government of the People’s Republic of China supported building the Association of Southeast Asian Nations (ASEAN) community. Li also stated that the Chinese government supported a central position for ASEAN in regional cooperation and a greater role for the bloc in international affairs. The Premier also informed China was ready to have constructive discussions with all the relevant parties on regional cooperative issues and contribute towards making Southeast Asia an important engine for global development. Li made the remarks during a visit to Laos at the invitation of the Prime Minister of Laos and the current chair of ASEAN, Sonexay Siphandone. Li is scheduled to attend the 27th China-ASEAN Summit, the 27th ASEAN Plus Three Summit and the 19th East Asia Summit during his visit. Li also praised the Government of Laos for its role in building a consensus and promoting progress in the ASEAN region. He stated the Chinese government was ready to provide support for Laos in helping achieve development, and build a China-Laos community with a shared future. ( “Premier Li says China supports building of ASEAN community,” CGTN, 10 October 2024)

INTERNAL
Chinese ban on overseas adoptions severely impacts disabled orphans, reports BBC News
On 10 October, BBC News reported that the decision by the Government of the People’s Republic of China to ban international adoptions would leave a grave impact on children in need. The Chinese government announced the ban in September and stated the ban was in line with international agreements and showed China’s development and progress.  According to the new policy, the Chinese government would send children overseas for adoption only if the adoptive parents were blood relatives. Data from the Ministry of Civil Affairs of the People’s Republic of China earlier showed that 95 per cent of international adoptions between 2014 and 2018 involved children with disabilities. A Senior Fellow at the Council on Foreign Relations, Huang Yanzhong stated the children had no future without international adoption since they would likely not be adopted domestically. While the Chinese government has upgraded infrastructure and accessibility for disabled residents, stigma against disabled residents still exists in Chinese society and they are viewed as a source of “bad luck” in many cases. However, some individuals hold a contrary opinion that ending international adoptions is a step in the right direction. A Chinese girl adopted by a family in the UK, Lucy Sheen stated many adoptive families from the West had a “white savior” mentality and looked down upon other races. A non-profit group aiding in connecting adoptees to their roots in China, Nanchang Project stated it was relieved children would no longer be separated from their birthplace and culture. (Kelly Ng, “Disabled orphans bear brunt of China’s overseas adoption bano,” BBC News, 10 October 2024)

China plans nationwide survey to monitor population changes, reports Reuters
On 10 October, Reuters reported that the National Bureau of Statistics of China was planning to survey changes in the population. The Bureau stated the survey aimed to monitor population changes and plan national economic and social development policies better. The Bureau also informed the local governments and personnel would be held accountable for illegal acts during the survey work, and all sectors of society needed to cooperate with the survey. The nationwide sample survey will begin on 10 October and will run until 30 November. The survey comes amidst concern by the Government of the People’s Republic of China about the rapid ageing of the population and decline in birth rates. The country has seen two consecutive years of population decline, and the population growth rate is at its lowest since the 1950s. (“China to hold nationwide survey on population changes,” Reuters, 10 October 2024)

ECONOMY
China trade-in programme focuses on improving consumption, states an explainer in SCMP
On 10 October, an explainer in SCMP informed about the new programme of trade-ins launched by the Government of the People’s Republic of China focusing on renewals, upgrades and sales mainly of consumer products like air conditioners, refrigerators, computers and televisions. The aim of these subsidies is to help improve consumption and reduce overcapacity pressure across multiple industries. The Chinese government aims to use around CNY 300 billion worth of ultra-long-term special government bond funds to support the trade-in programmes. The trade-in programme includes subsidies for areas like home appliances, property, and automotive trade-ins, alongside support from central funds to make up for the lack of support from local governments facing debt. The programme has also resulted in over CNY 55.79 billion being generated in sales; through the sale of 11.78 million major appliances under eight categories by over 8.23 million customers. The number of home appliances and vehicles in use have crossed 3 billion and 300 million respectively in China. The automotive sector and passenger vehicle market have also seen an increase in sales. The National Development and Reform Commission stated the trade-in scheme had not only boosted consumption, but also driven investment and growth in related industries. Local governments in areas such as Shanghai have expanded the scope of the subsidies being offered to cover more products like dishwashers, robotic vacuums, smartphones and tablets. Each purchase can receive a subsidy equivalent to 15-20 per cent of the transaction price. Additionally, these subsidies are being introduced in the housing sector as well. ( He Huifeng, “How much is China’s massive trade-in programme driving consumption of everyday items?” South China Morning Post, 10 October 2024)

ENERGY & ENVIRONMENT
China at forefront of the global green energy boom, reports The Guardian
On 09 October, The Guardian reported that China was expected to lead new installations of renewable energy capacity globally in the next few years. According to the International Energy Agency (IEA), China is expected to account for 60 per cent of new renewable energy projects to be installed in the next six years until 2030. The IEA also informed the pace of new renewable energy projects over the next six years is expected to be three times the pace of the previous six years, with the clean energy programmes of China and India at the lead. China is expected to have over half of the renewable energy projects globally by the end of the decade. With its substantial investments in solar energy, the Government of the People’s Republic of China has also turned its focus away from coal power. According to Global Energy Monitor, the Chinese government issued permits for only 12 new coal power projects in the first half of 2024. The Executive Director of the IEA, Fatih Birol stated the new trends were being driven by Chinese investments and solar energy. ( Jillian Ambrose, “China to head green energy boom with 60% of new projects in next six years,” The Guardian, 09 October 2024)

CHINA & SOUTHEAST ASIA
China expanding military presence in Cambodia, states op-ed in BBC News
On 08 October, an op-ed in BBC News informed the Government of the People’s Republic of China was expanding its military presence in Cambodia. Warships from the Chinese People’s Liberation Army(PLA) Navy are now visible at the Ream Naval Base in Cambodia. The US Government fears the Chinese government in investing in building a network of military bases or civilian ports to be used as military bases globally, with Ream as the first one. While Ream was once being provided with US assistance, the US government cut down on military assistance for Cambodia amidst concerns over Cambodia being increasingly authoritarian. Amidst this scenario, the Government of Cambodia grew closer to China and switched from military exercises with the US to the Golden Dragon exercises with China. While Cambodia claimed the stationing of Chinese ships was a temporary move, there are fears Beijing is preparing for a more permanent position at the base with satellite photographs showing warehouses, administrative offices, and living quarters present at the base. Analysts believe that while a Chinese base at Ream would offer little advantages to the Chinese government, it would trouble Cambodia’s neighbors like Thailand and Vietnam. The base could be viewed by the Government of Vietnam as an attempt to encircle its coast, and it could cover exit points for Thailand from the Gulf of Thailand. However, analysts believe China is unlikely to match the global reach of the US for years to come. The Director of the CSIS Asia Maritime Transparency Initiative, Greg Poling stated the Ream base did not add much in terms of power projection. According to Poling, the base could have a bigger impact in terms of gathering intelligence, tracking satellites and detecting or monitoring long-range targets. (Jonathan Head, “Does China now have a permanent military base in Cambodia?,” BBC News, 08 October 2024)

CHINA & SOUTH ASIA
Chinese security agency promises greater anti-terrorism intelligence cooperation after Pakistan attack, reports SCMP
On 09 October, SCMP reported that the Ministry of State Security of the People’s Republic of China (MSS) had vowed to step up early warning and anti-terrorism intelligence cooperation. The comments came after an attack in Karachi claimed by the Baloch Liberation Army (BLA) left two Chinese nationals dead. The MSS informed it was committed towards supporting counterterrorism efforts by the Government of Pakistan, and would adopt stricter measures to combat terrorist activities legally. According to the MSS, the Government of the People’s Republic of China would take a multifaceted approach, involving improving international cooperation against terrorism, mechanisms for anti-terrorism intelligence sharing, financial regulations, law enforcement cooperation, and judicial assistance. The MSS also informed it would guard against the infiltration of extremist violent ideologies, and prevent foreign terrorist activities from extending into domestic territory. The MSS further stated that combating terrorism was a shared responsibility and pressing priority for the international community. It also stated early warning systems and emergency responses to terrorist attacks would be prioritized. ( Xinlu Liang, “China’s security agency vows to boost intelligence sharing after deadly attack in Pakistan,” South China Morning Post, 09 October 2024)

CHINA & AFRICA
Chinese envoy reiterates appeal for external forces to withdraw from Libya, reports CGTN
On 10 October, CGTN reported that the Government of the People’s Republic of China had reiterated its appeal for external armed forces and mercenaries to withdraw from Libya. The Deputy Permanent Representative of the People’s Republic of China to the United Nations, Dai Bing stated a strong dialogue and consultation alongside promoting a political transition were among the urgent needs for Libya. Dai also stated the international community needed to support a political settlement wherein there were African solutions for African problems; with a focus on improving the humanitarian condition in Libya and maintaining security in Libya. The envoy also encouraged all the actors involved in Libya to put the interests of the country and the Libyan people first and foremost; and urged international support for the Government of Libya in strengthening counter-terrorism efforts. Dai stated the Chinese government supported proper utilization of oil resources by the Libyan government, to improve livelihoods. (“Chinese envoy renews appeal for external armed forces to withdraw from Libya,” CGTN, 10 October 2024)

CHINA & THE AMERICAS
Mexico seeks US help in reducing dependence upon China, reports SCMP
On 10 October, SCMP reported that the Government of Mexico was planning to collaborate with the United States Government in reducing its reliance upon imports from China. The Deputy Secretary of Commerce of Mexico, Luis Rosendo Gutierrez informed the Mexican government had already held informal discussions with semiconductor manufacturers, space companies, and car manufacturers from the US. Gutierrez also informed the new President of Mexico, Claudia Sheinbaum planned to support domestic supply chains in Mexico. Despite strong trade ties between Mexico and China, the Mexican government had raised concerns previously about the trade imbalance; with a perception that China increased its presence in global exports at the expense of North America. However, analysts warned that decoupling the Mexican and Chinese economies would face significant issues. The former Ambassador of Mexico to the US, Martha Barcena stated China had substantial investments in the auto sector, raising questions about how there would be decoupling. The former US Ambassador to Mexico, Robert Jackson stated several Mexican entrepreneurs were advocating for a triangular strategy with Mexico trading with both China and the US. However, Jackson admitted the US was unlikely to accede to a triangular strategy followed by Mexico. ( Igor Patrick, “Mexico seeks US help in cutting back on imports from China,” South China Morning Post, 10 October 2024)

China Reader Daily Wire | 09 October 2024, Wednesday | Vol.1 No. 186
ECONOMY
China unveils comprehensive Economic Stimulus Plan for 2024
On 08 October, The Chinese government unveiled a set of strong policies to take the economy closer to its target growth in 2024. Officials expressed confidence in reaching the annual goal of around 5 per cent growth, citing recent improvements in market sentiment, manufacturing, and consumption. The economy has grown by 5 per cent in the first half of 2023. For the third quarter, growth is expected between 4.6 per cent and 4.8 per cent Key measures include accelerating investment projects of about 200 billion yuan, focusing on revitalising cities and infrastructure. The government will continue to issue ultra-long special treasury bonds and encourage local governments to make all efforts to use special bonds for project construction. To support the enhancement of domestic consumption, the upgrade of electrical appliances and automobile trade-in and purchase was strengthened. These already began to stage a rebound in car and home appliance sales. The government also promised to ensure strict regulation of business enforcement and stated that it would adopt “inclusive, prudent, and flexible” approaches. This aims to avoid unlawful practices such as arbitrary fines and excess inspections, making the environment friendlier for business. (“Key takeaways from China's incremental pro-growth policies,” CGTN, 08 October 2024)

CHINA & SOUTH ASIA
Pakistan vows swift justice after a terror attack on Chinese nationals in Karachi
On 07 October, Dawn reported that a terrorist attack near Karachi’s Jinnah International Airport left two Chinese nationals dead and several others injured, as Pakistan’s officials issued strong condemnation. Prime Minister Shehbaz Sharif assured Chinese Ambassador Jiang Zaidong that there would be a thorough probe of the incident. He added: “I will personally supervise the investigation of this incident.” The outlawed Majeed Brigade of the Baloch Liberation Army claimed responsibility for the attack. The explosion, previously reported as an IED blast, had damaged several vehicles and triggered a fire. Security for foreigners will be bolstered as a response. The Chinese Embassy said that Pakistan should: “thoroughly investigate the attack, severely punish the perpetrators, and take all necessary measures to protect the safety of Chinese citizens.” Pakistani leaders, which also include President Asif Ali Zardari and Interior Minister Mohsin Naqvi, condemned the attack in the strongest words. Naqvi termed it a “cowardly conspiracy” against Pakistan-China friendship. The incident is taking place ahead of the Shanghai Cooperation Organisation summit in Islamabad, leaving open concerns about regional security. Pakistani officials underline their readiness to bring the perpetrators of the incident to justice and also safeguard Chinese nationals working in the country. (Imtiaz Ali, Abdullah Momand and Nadir Guramani, “PM Shehbaz assures Chinese envoy of personally overseeing Karachi terror attack investigation,” Dawn, 07 October 2024)

CHINA & SOUTHEAST ASIA
China-Philippines tensions escalate in disputed South China Sea waters as China takes “control measures”
On 08 October, the tensions between China and the Philippines flared up in the South China Sea. The Chinese Coast Guard (CCG) reported taking “control measures” against two Philippine vessels near Scarborough Shoal, claiming they had invaded Chinese waters without permission. CCG spokesman Liu Dejun urged the Philippines to cease “infringement actions” and vowed to continue enforcing China’s territorial claims. The Philippine Bureau of Fisheries and Aquatic Resources (BFAR) countered that Chinese vessel had fired water cannons at their boats during a resupply mission. Philippine Rear Admiral Roy Vincent Trinidad stood firm that the Philippines was not backing down on its patrol in the disputed area. He also said: “We will ensure that the integrity of our territory is intact.” This is after China held a naval drill in the region after it stated it was determined to “safeguard peace and stability”.  (Sylvie Zhuang, “China fires water cannons at Philippine boats that ‘invaded’ waters near Scarborough Shoal,” South China Morning Post, 08 October 2024)

INTERNAL
China’s President Xi Jinping on China’s 75th anniversary predicts a difficult road ahead
On 30 September, on the eve of China’s 75th National Day, President Xi Jinping addressed a gathering of Communist Party members and foreign dignitaries, cautioning about potential difficulties facing the nation. He emphasised vigilance and said: “The road ahead will not be smooth, there will be difficulties and obstacles.” He urged the Chinese people to rely on the party and its military as they prepare for those challenges. For China, the address presented a chance to talk about economic troubles including slow post-pandemic growth and an intertwined housing sector shambles. Xi once again spoke about Taiwan as a “sacred territory” and pledged that “no one can stop the wheel of history”. This is no surprise since China has claimed Taiwan as its own since 1949 and is in heightened tension with the US for approving a massive military aid package to the island country. This year’s anniversary celebration enthusiasm is much less compared to that of previous anniversaries, possibly reflecting sensitivity to the nation's current economic strain. On the other hand, Hong Kong will celebrate with several events under heavy security, reflecting its increasing alignment with Beijing following recent political changes. (Helen Davidson, “Xi Jinping forecasts ‘rough seas’ on 75th anniversary of People’s Republic of China,” The Guardian, 01 October 2024)

ECONOMY
China’s economic announcement disappoints investors and halts stock rally, reports BBC
On 08 October, BBC reported that China’s recent stock market rally lost momentum following an announcement on economic plans. Shares jumped more than 10 per cent initially after the Golden Week holiday but enthusiasm among investors died down when the economic planners held a news conference. The Shanghai Composite Index closed 4.6 per cent higher, while Hong Kong’s Hang Seng fell 9.4 per cent. The head of China’s National Development and Reform Commission Zheng Shanjie, said the country would meet its economic goals but added that “increasing downward pressures” were driving this. Spending and investment projects worth 200 billion yuan were less than what investors had expected. The chief economist at Natixis Alicia Garcia-Herrero said: “The market expected more.” Growth issues stemming from the property market and falling prices in China have been on everyone’s discussion table. To support confidence in the property industry and the stock market, the government has implemented various measures, but some economists feel that sustained growth is possible only if further reforms are undertaken. (João da Silva, “China stock rally fizzles as stimulus news disappoints,” BBC, 08 October 2024)

CHINA & SOUTH ASIA
Chinese spy balloons over Indian territory
On 01 October, the Indian Air Force confirmed “Chinese spy balloons” flying over Indian territory and had undertaken all military action and strategic planning. Recently, an IAF Rafale jet shot down a balloon flying close to the Chinese border at 55,000 feet, in an incident more or less similar to last year’s US military shootdown of its Chinese balloon. IAF is working out standard procedures for this. This is in line with concerns raised in the US Department of Defense report, where China continues to research high-altitude surveillance systems. The report said: “Military and commercial entities in China have been researching and developing high-altitude systems, including high-altitude balloons, since at least the mid-2000s.” This has further heightened international tensions because the US believes that Chinese military balloons have crossed over 40 countries’ airspace. Japan and Taiwan also reported incursions of suspected Chinese balloons. These are ostensibly for scientific purposes, but most countries do not believe China, believing these to be a part of a larger military surveillance program. (“Situation along LAC stable, not normal: Army chief on east Ladakh standoff,” Business Standard, 01 October 2024)

CHINA & MIDDLE EAST
China offers medical aid to Lebanon as conflict with Israel escalates
On 08 October, China announced plans to provide emergency medical supplies to Lebanon as the war between Hezbollah and Israel experienced a surge in violence. Massive casualties have ensued after each side traded several strikes in the Israeli-Hezbollah war, which has seen spiking violence. Local media reported that Israel claimed to have killed a key logistics commander of Hezbollah, Suhail Hussein Husseini through a “precise, intelligence-based strike” into Beirut. Violence has severely impacted the country’s health sector, with WHO reports indicating that more than 77 on-duty health workers have been killed and that many clinics and medical centres have been closed down. China evacuated more than 200 of its citizens from Lebanon and issued travel warnings for the region. In a broader context, the conflict spread from Gaza with Iran recently launching a huge missile attack on Israel. The situation, however, remains volatile as the humanitarian crisis continues to worsen in Lebanon with its public health ministry reporting a 200 per cent rise in deaths from the conflict. Israel has threatened to widen its military action in Lebanon following Hezbollah strikes on Haifa. (Alyssa Chen, “China aid agency commits emergency medical supplies to Lebanon amid worsening conflict,” South China Morning Post, 08 October 2024)

CHINA & EUROPE
China imposes taxes on European brandy imports, reports BBC News
On 08 October, BBC News reported the Government of the People’s Republic of China had imposed a tax on imports of European brandy. The Ministry of Commerce of the People’s Republic of China informed the measure was against dumping since brandy imports threatened to cause “substantial damage” to Chinese brandy producers. The Ministry also informed importers would have to pay “security deposits” on European brandy. The Minister Delegate for Foreign Trade and Economic Attractiveness of France, Sophie Primas stated the brandy tax was a retaliatory measure after the European Union (EU) raised tariffs on the imports of Electric Vehicles(EVs) from China. Primas also informed the Government of France would work with the EU to take action at the World Trade Organization against the Chinese contradiction of international trade rules. France is responsible for 99 per cent of European brandy exports to China. The French brandy lobbying group BNIC stated the proposed Chinese tariffs would be catastrophic for the brandy industry, and the taxes needed to be suspended before it was too late. French brandy companies like LVMH and Remy Cointreau witnessed a fall in company shares after the announcement of the tariffs. (Tom Espiner, “China hits back at EU with brandy tax,” BBC News, 08 October 2024)

CHINA & THE AMERICAS
TikTok sued by 13 US states over failure to protect young viewers, reports Reuters
On 09 October, Reuters reported that Chinese social media platform TikTok was facing lawsuits filed by 13 US states and the District of Columbia. TikTok faces charges of harming and failing to protect young people through using intentionally addictive software to ensure children watch for as long as possible. The separate lawsuits also demanded that financial penalties be imposed against TikTok. The Attorney General of California, Rob Bonta stated TikTok was cultivating social media addiction for boosting corporate profits, and intentionally targeting children who could not create boundaries around addictive content. The Attorney General of New York, Letitia James stated TikTok was causing struggles with mental health for young people. According to the Attorney General for the District of Columbia, Brian Schwalb, TikTok was operating an unlicensed money transmission business through its live streaming and virtual currency features. TikTok responded to the lawsuits by stating that the claims were misleading and inaccurate. The company also stated it had safety features for younger users like default screentime limits and privacy defaults for minors under 16.  TikTok also expressed disappointment that the states had gone down the path of lawsuits rather than collaborating on constructive solutions. ( Jody Godoy and David Shepardson, “TikTok sued by 13 states and DC, accused of harming younger users,” Reuters, 09 October 2024)

US telecom firms reportedly infringed by Chinese hackers, reports Business Standard
On 06 October, Business Standard reported that multiple US telecommunications firms were reportedly infiltrated by a group of Chinese hackers.  US news outlet CNN reported that investigators in the US had identified US broadband and internet providers AT&T, Verizon, and Lumen as the targets of cyberattacks by Chinese hackers. The Chinese hacking team is known as Salt Typhoon and possesses significant levels of skills and abilities required to access advanced computer networks. Intelligence committees in the US House of Representatives and the US Senate have been briefed by officials from the US Government on the Chinese hacking campaign, with cybersecurity experts from tech conglomerate Microsoft and Google-owned firm Mandiant helping investigate the hacking activity. The Embassy of the People’s Republic of China in the US denied any hacking, claiming it was a distortion of facts. A spokesperson for the Embassy, Liu Pengyu stated the US was politicizing cybersecurity issues to smear China. (“Group of Chinese hackers access critical American telecom firms: Report,” Business Standard, 06 October 2024)

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