CHINA READER DAILY WIRE

In Brief
INTERNAL
China plans to restructure military leadership
On 08 February 2024, according to an editorial in the South China Morning Post titled “China’s top legislative body to discuss ‘appointments and dismissals’ amid military purge,” by Hayley Wong, China’s National People’s Congress (NPC) Standing Committee will meet on 26 and 27 Februaray to discuss “appointments and dismissals” amid an ongoing purge that has snared several senior military figures. The Standing Committee announced in December 2023 that nine generals, including senior members of the People’s Liberation Army Rocket Force, had been removed as members of the legislature. In October 2023, the Standing Committee dismissed and stripped the rank of former defence minister Li Shangfu as state councillor. The same committee had dismissed former foreign minister Qin Gang as the state councillor. (Hayley Wong, “China’s top legislative body to discuss ‘appointments and dismissals’ amid military purge,” South China Morning Post, 08 February 2024)

ECONOMY
Consumer prices in China witness a steep decline
On 08 February, consumer prices in China for January witnessed a sharp fall along with the producer’s price in 14 years, thus concerning the deflation presence in the country. The National Bureau of Statistics (NBS) data showed that prices for consumer goods slipped 0.8 per cent. From the same month in 2023, the most significant drop since September 2009 was steeper than the 0.3 per cent drop in December. Economists anticipate a cut in the interest to boost the stagnant demand. Lynn Song, the chief economist for greater China at ING, said the bank had downgraded its China growth forecast for 2024 to 4.8 per cent from 5 per cent, based on expectations for moderate policy support. However, the economy is battling a severe property crisis and weak demand. (CK Tan, “China's consumer prices post the steepest drop in 14 years,” Nikkei Asia, 08 February 2024)

Mexico overtakes China as the largest exporter to the US
On 07 February, Mexico overtook China as the leading source of exported goods to the US amid the growing trade tensions between the US and China. The data from the U.S. Commerce Department shows that the value of goods imported by the United States from Mexico rose nearly 5 per cent from 2022 to 2023, to more than USD 475 billion. At the same time, the value of Chinese imports tumbled to 20 per cent to USD 427 billion. While former President Trump imposed tariffs on Chinese goods in 2018, President Joe Biden continues to retain those tariffs against China as Beijing’s actions violated global trade rules. As the US calls for offshoring production to China, Mexico became the beneficiary of the growing trade tensions with China. Chinese manufacturers have exploited the US-Mexico-Canada Trade Agreement to leverage the US market. (Paul Wiseman, “Mexico overtakes China as the leading source of goods imported by the US,” ABC News, 08 February 2024)

EXTERNAL
Pro-China propoganda is found in 30 countries, says Citizen Lab
On 07 February, according to a research report by Citizen Lab, more than 100 websites disguised as local news outlets were pushing pro-China propoganda in over 30 countries. Researcher Alberto Fittarelli said that “there is a heightened risk of inadvertent amplification by the local media and target audiences, because of the quick multiplication of these websites and their adaptiveness to local languages and content.” The site contains the conspiracy about the US and its allies by blaming the American scientists of “leaking” COVID-19. The Chinese embassy in Washington dismissed the report as biased and double standards by the company. (“Pro-China influence campaign disguised as ‘news’ websites uncovered in over 30 countries,” Mint, 08 February 2024)

SCIENCE & TECHNOLOGY
Chinese and European scientists find an ocean in Saturn’s moon
On 08 February, according to a journal published by Nature, researchers from Europe and China found an ocean in Saturn’s smallest innermost moon. The team said that the ocean found in the icy shell of Mimas has a surface area that is the size of Spain. They also noted that the Mimas Ocean is young and still evolving compared to Jupiter’s moon Europa, which has offered a rare opportunity to study the formation of these potentially life-harbouring moons. Experts say there are many surprises within the solar system, and researchers need new ideas and unexpected possibilities to recognize them. (Ling Xin, “Chinese, European scientists find hidden ocean in Saturn’s smallest moon,” South China Morning Post, 08 February 2024)

Huawei to install ultra-fast EV chargers in China
On 08 February, according to an editorial in Nikkei Asia, titled “Huawei rolls out ultrafast EV chargers in China, taking on Tesla,” by Shizuka Tanabe, Huawei Technologies plans to install 100,000 fast EV-charging stations in China in 2024. The ultrafast charger was developed by Huawei subsidiary Huawei Digital Power, which is shifting towards making full-scale charging stations. Huawei says its charger’s output is 600 kW, the highest in the world, beating Tesla’s supercharger output of 250kW. It also says that its chargers are compatible with Tesla’s cars. According to the China Electric Vehicle Charging Infrastructure Promotion Alliance, China had 2.7 million public charging stations at the end of 2023, which will increase by 40 per cent in 2024. (Shizuka Tanabe, “Huawei rolls out ultrafast EV chargers in China, taking on Tesla,” Nikkei Asia, 08 February 2024)

CHINA & TAIWAN
China fails to steal and match Taiwan’s chip technology, says Taiwanese ambassador
On 07 February, Taiwan’s de-facto ambassador to Washington, Alexander Yu, said that China’s efforts to cheat and steal its way to match Taiwan in chip technology. In his interview with Reuters, the Taiwanese ambassador said he had doubts about China’s advancement in making next-generation smartphone processors and refuted charges by presidential candidate Donald Trump that Taiwan was taking American semiconductor jobs. He also said that he hopes to see the US Congress pass a supplemental security funding bill that would help Taiwan with its defences. He rejected the claims that the US would stockpile weapons in Taiwan to deter Chinese military action. (“China bid to 'cheat' its way to chip prominence failing: Taiwan's US envoy,” The Straits Times, 08 February 2024)

Taiwan to shalt overseas tour to China
On 07 February, Taiwan’s Tourism Administration informed the travel agents to stop organizing new group tours to China as Beijing has yet to allow such trips to the island by Chinese tourists and has altered a flight path in the sensitive Taiwan Strait. China considers Taiwan to be part of its territory, and Taiwan rejects China’s sovereignty claims. Responding to the travel ban, China’s Taiwan Affairs Office said Taiwan was “blowing hot and cold” after previously saying it wanted such tours to resume, stopping them. China, dismissing the argument, said that the airspace change is part of a routine measure to alleviate airspace pressure. (“Taiwan stops new group trips to China amid tourism, air route spat,” The Straits Times, 07 February 2024)

CHINA & EAST ASIA
China blames Japan for releasing Fukushima radioactive wastewater
On 07 February, the spokesperson of the Chinese embassy in Japan blamed the plant operator Tokyo Electric Power Company (Tepco) and the Japanese government for releasing radioactive wastewater from the tsunami-battered Fukushima nuclear power plant. The spokesperson further blames the Japanese government for taking ineffective measures in supervising the plant, raising unreliability in wastewater management in the long term. The spokesperson highlighted the need for the international community to engage in the plant’s supervision. Japan says the released water is diluted, harmless, and necessary for the plant’s decommissioning, with storage space for the treated water running out. (Sophie Chew, “China lashes out at ‘chaos and disorder’ behind Fukushima radioactive waste water leak,” South China Morning Post, 08 February 2024)

CHINA & SOUTHEAST ASIA
Chinese EVs dominates the Thai market
On 07 February, according to an editorial in The Diplomat titled “How China’s EVs are Taking Thailand by Storm,” by Li Xirui, Chinese EVs are making greater inroads in Southeast Asia as 75 per cent of sales of EVs are Chinese. The Chinese automakers hold around 80 per cent of the country’s EV market. Three popular brands in Thailand are Chinese, namely, BYD, Neta, and MG. The localization efforts of the Chinese EV makers in Thailand through partnerships with local companies. Also, there is a broader political consensus on the country’s EV ambitions, and both the government and the opposition parties appreciate the entry of Chinese EV companies. (Li Xirui, “How China’s EVs are Taking Thailand by Storm,” The Diplomat, 07 February 2024)

CHINA & SOUTH ASIA
Chinese envoy: Improvement in India-China ties with record bilateral trade
On 05 February, China’s Charge D’Affaires in New Delhi, Ma Jia, on the Chinese New Year celebrations, said that the growth in trade to USD 136.2 billion went along with other areas of “improvement” in bilateral ties, signalling the informal meeting between PM Narendra Modi and President Xi Jinping. Jia said that both countries have steadily improved bilateral relations and China has supported India’s presidency at G20 and SCO. Despite the increased engagement, China has not appointed an ambassador to Delhi in over 16 months. The two countries have not resumed their bilateral air travel, and India has not removed its trade restrictions on China due to the Galwan clashes in 2020. (“Suhasini Haidar, “India-China bilateral trade hit a new record in 2023: Envoy,” The Hindu, 07 February 2024)

CHINA & AFRICA
Chinese Bitcoin miners rushing towards Ethiopia
On 08 February, according to an editorial in the South China Morning Post titled “Chinese bitcoin miners are flocking to Ethiopia, attracted by cheap energy, ideal climate,” Chinese bitcoin miners rushed to Ethiopia in search of cheap power and benign regulations. Despite the ban in 2022 on cryptocurrency trading, Ethiopia has bolstered its ties with China and, in return, got help from Chinese companies to build the USD 4.8 billion dam to draw power for bitcoin mining. Ethiopia has emerged as an attractive place for Chinese companies to dominate bitcoin mining, which is facing challenges to compete against local rivals in Texas. Despite the arrival of the new energy source, half of Ethiopia’s population has no access to electricity, but it has become a lucrative source of foreign exchange earnings. (“Chinese Bitcoin miners are flocking to Ethiopia, attracted by cheap energy, ideal climate,” South China Morning Post, 08 February 2024)

CHINA & AMERICAS
US’s International Trade Commission rejects proposed tariffs on Chinese goods
On 06 February, the International Trade Commission struck down proposed duties on tin mill steel imports from China and three other countries: Canada, South Korea, and Germany. The four-member panel struck down the proposed tariffs of 122.5 per cent by the US Commerce Department on Chinese tin mill products. The US lawmakers supporting tariffs claimed that the tariffs were essential to offset below-cost dumping by foreign companies. The commission determined that the US industry was not “materially injured or threatened” by the imports and will continue to levy the 25 per cent customs duty on imports imposed since 2018. (Khushboo Razdan, “New US duties on Chinese tin mill steel imports are struck down, drawing criticism from lawmakers,” South China Morning Post, 08 February 2024)

CHINA & EUROPE
China desires to end the Ukraine war
On 07 February, the South China Morning Post reported that Switzerland’s Foreign Minister Ignazio Cassis sought China’s help to prepare for the Ukraine peace summit and said that Beijing has similar intentions to end the war. In January 2024, Switzerland agreed to host a global peace summit at the request of Ukraine’s President Volodymyr Zelensky, who said the summit was “open to all countries that respect our sovereignty and territorial integrity.” Ukraine has said that it had extended an invitation to China for its participation at the summit. Many countries urged China to play a greater role in ending the war. Cassis expects China to help in the peace process as it has close ties with Russia. (Dewey Sim, “China ‘clearly wants’ Ukraine war to end, top Swiss diplomat says after seeking Beijing’s help on global peace summit,” South China Morning Post, 07 February 2024)
 

About the Authors
CEAP Team: Femy Francis and Akhil Ajith are Research Assistants at NIAS