CHINA READER DAILY WIRE

In Brief
INTERNAL
Chinese ‘Taobao villages’ opt for Alibaba alternative, says Financial Times
On 14 February, an opinion in Financial Times titled, “China’s ‘Taobao Villages’ turn from Alibaba to rival platforms,” by Ryan McMorrow and Nian Liu outlined the diminishing influence of Alibaba. In eastern China, Shaji town there are factories called Ali Road and Jack Ma Boulevard, named after the founder of Alibaba. Jack Ma’s reach helped these farming communities to transform into factories and online merchants. But now with the presence of newer alternative viral online platforms, they struggle to only work with Alibaba and look for its alternative. The op-ed states that this is also due to the change in consumer behaviour where they prefer to buy from across the platform. When Alibaba was the only option, these towns came to be known as “Taobao village” a term used to refer to the blueprint for rural development. In 2023, Alibaba’s revenue fell by 4 per cent, the difference between the alternatives and Alibaba is that the company gives on-site direct advice on the types of products to sell. (Ryan McMorrow, Nian Liu, “China’s ‘Taobao villages’ turn from Alibaba to rival platforms,” Financial Times, 14 February 2024)

Chinese youth opt to “lie flat,” than compete in the corporate rate race, editorial
On 15 February, an editorial in Reuters titled, “Some Chinese youth spurn corporate jobs for 'me time' as the economy slows,” by Nicoco Chan on the increasing number of Chinese youths moving away from the corporate rat race. Chan took the example of a young female Chu Yi who said that she chose to “lie flat”, a term used to describe people who just want to work enough to afford livelihood and spend the rest of their time doing what they love. She gave an example of other women who quit their jobs because of overwork, meagre pay and overtime. While there is no data on how many Chinese youths opt to “lie flat” there are records on the rise of youth unemployment. The op-ed also referred to surveys that 280 million Chinese youth born between 1995-2010 mainly Generation Z are the most pessimistic of all age groups. An assistant professor of sociology at the University of Michigan Zhou Yun said: “profoundly challenging  for young people to navigate rigid social inequalities, tightening political control and dim economic prospects.” (Nicoco Chan, “Some Chinese youth spurn corporate jobs for 'me time' as economy slows,” Reuters, 15 February 2024)

China’s Spanish language YouTube channels for pro PRC campaign
On 14 February, Voice of America reported on a Chinese campaign being promoted in Spanish-speaking countries. The report was issued by Chile's Center for Analysis for Democracy, which found that YouTube channels Xinhua Espanol, Hola China and CGTN Espanol have been uploading pro-China videos. Since 2009 they have uploaded 80,000 videos promoting the PRC’s political system, infrastructure development and Xi Jinping. They also uploaded the US-China competition, and migration waves and portraying the US in a negative light. The report analyzed by several stated that the videos uploaded were China’s way to impose its soft power. However, most videos uploaded have very less views and that they fail to make an impact. (Wenhao Ma, Jaime Moreno “China’s Propaganda Push in Spanish Fails to Impress, Report Shows,” VOA, 14 February 2024)

ECONOMY
Foreign firms in China struggle as state owned enterprises rise
On 15 February, an opinion in the South China Morning Post titled, “China’s foreign firms grapple with upward mobility in a post-Covid era as state-owned peers rise,” by Frank Chen outlined troubles faced by the foreign firms in China in comparison to the state-owned enterprises. Chen proclaimed that the golden age of foreign investment for firms in China has lost its appeal. The ecosystem in China for investment has become a gilded cage with restricted growth and breaking away from these confines seems challenging. Foreign investments and firms in China were earlier an indispensable part of Chinese development and boom, to now being on the periphery of the economy. The author issues the uneven recovery of both industries where the foreign entities grew by 1.4 per cent and SOEs by 5 per cent. Taking the example of Shanghai, which boasts its foreign investments reported that the output of these firms fell to 5.4 per cent while SOE’s output grew by 5.3 per cent in 2023. (Frank Chen, “China’s foreign firms grapple with upward mobility in post-Covid era as state-owned peers rise,” South China Morning Post, 15 February 2024)

US restrictions on China are a business risk, ASML
On 14 February, ASML a Dutch company reported on the growing list of restrictions by the US as a business risk. ASML is the largest supplier of chip technology, it accused the that geopolitical tensions between the US and China are affecting the business. Some of these restrictions include the non-sale of older equipment to unspecified Chinese plants and restrictions from selling mid-range immersion deep ultraviolet products to China. Since the US pioneered efforts to curb Chinese technological and military advancements no extreme ultraviolet lithography tools, vital for chip making were sold to China. ASML stated that the list of competitors is rowing as they face competition from companies with resources and finances. (“US-China tech war: Dutch chip tool giant ASML says geopolitics, new export curbs remain risks,” South China Morning Post, 15 February 2024)

EXTERNAL
Beijing urges Israel to halt military action in Rafah
On 13 February, a Chinese Ministry of Foreign Affairs spokesperson urged Israel to stop the military operation in the city of Rafah as soon as possible, the attack was a “serious humanitarian disaster.” The ministry said that they closely follow what’s happening in Rafah and that they vehemently oppose and condemn the action which goes against international law and harms the citizens. They issued to: “stop its military operation as soon as possible, (and) make every effort to avoid innocent civilian casualties, to prevent a more serious humanitarian disaster in the Rafah area.” Israel raided Rafah on 12 February, Prime Minister Benjamin Netanyahu called the raid: “perfect”, while the Palestinian foreign ministry said the deaths of dozens of Gazans amounted to a “massacre.” (“China urges Israel to stop military operation in Rafah ‘as soon as possible’,” The Straits Times, 13 February 2024)

SCIENCE AND TECHNOLOGY
CNSA is looking for innovative domestic entity for Chang’e 8
On 14 February, the South China Morning Post reported on the China National Space Administration (CNSA) and called for domestic groups, companies or individuals who are interested in making equipment for Chang’e 8 mission. Where one such innovation demands making bricks out of moon soil and a robot for assemblage. CNSA said to: “give full play to the strengths of all parties,” for innovative research results. Chang’e 8 is set to launch in 2028 and is the future of the Chinese space agency and the International Lunar Research Station. The payload my Chang’e 8 will be limited to its partner countries, who are working with China. (“China calls for developers in Chang’e 8 mission to make and assemble moon bricks,” South China Morning Post, 14 February 2024)

China focuses on domestic supply of chip technology, reducing foreign dependency
On 13 February, an article in The Economist, titled “China is quietly reducing its reliance on foreign chip technology,” looked into the rise of the Chinese chip industry and technology and how slowly it's reducing its reliance on foreign countries and sources. China has always showcased an interest in developing cutting-edge technology, out of which semiconductors take the helm of focus. With the US halting its export of chipmaking technology the sale of lithography machines used to imprint circuits surged by 450 per cent from ASML a Dutch market.  The Chinese government are giving subsidies for the generation of domestic chipmaking as the trade restriction on China increases. The Chinese government came out with an initiative called the Information Innovation” project aiming to replace foreign supplies with local ones. Government interference has led to a rising chip industry but it would take a long for it to match its international and regional rivals. The companies in China work under secrecy where they suddenly unveil their progress, Huawei is one such example when it came out with its 7nm chip, though still behind South Korea’s Samsung and Tiawan’s TSMC which made 3nm chips in 2022. While still behind, the Chinese model is steadily increasing the growth of the chip industry, with local collaborations leading to easy accessibility and improvement. The domestic supply chain focus also showcases that it's not only about cost and efficiency but also about security. (“China is quietly reducing its reliance on foreign chip technology,” The Economist, 13 February 2024 )

CHINA & TAIWAN
China condemns Taiwanese coast guards after fishermen died
On 14 February, China’s Taiwan Affairs Office spokesperson Zhu Fenglian condemned the Taiwanese coast guard after two Chinese fishermen died by drowning. The fishermen were being chased by the Taiwanese coast guards near the Kinmen archipelago. Kinmen Island lies near the Fujian coast which is controlled by Taiwan. Zhu said: “The malignant incident severely harmed the feelings of compatriots on both sides of the Taiwan strait.” The Taiwanese coastguard said that they illegally entered the waters and that they requested the boats to immediately leave. Taiwan’s Central News Agency (CNA) reported that while all four were rescued from the water and sent to the hospital, two succumbed to death after failed resuscitating efforts. (Helen Davidson, “Beijing condemns Taiwan after two Chinese fishers die in speedboat crash,” The Guardian, 15 February 2024)

CHINA & THE MIDDLE EAST
Chinese influence lagging in the Red Sea Crisis, Opinion Foreign Policy
On 14 February, an opinion in the Foreign Policy titled, “What the Red Sea Crisis Reveals About China’s Middle East Strategy,” by Jon B. Alterman outlined the extent of China’s influence in the Middle East amidst the Red Sea Crisis. In March 2023, Chinese Foreign Minister Wang Yi was successfully able to broker a peace deal between Saudi Arabia and Iran. The deal between the two countries established China’s influence in the region, while the two countries were enemies, China was the country they trusted. The op-ed stated that while they were successful, China was unable to extend the same influence in the Red Sea Crisis. The Chinese like to portray themselves as the rising global power while accusing the US of falling short of securing peace and prosperity in the region. (“What the Red Sea Crisis Reveals About China’s Middle East Strategy,” Foreign Policy, 14 February 2024)

CHINA & SOUTH ASIA
Chinese nationals begin settling along the LAC
On 15 February, The Indian Express reported that “China moves its nationals into its vacant ‘defence villages’ along LAC.” Chinese nationals have started to settle on “Xiaokang” border defence villages across India’s north-eastern borders or LAC across from Lohit Valley and the Tawang sector of Arunachal Pradesh which has been built since 2019. China has been constructing “well-off villages” along India’s borders with the Tibet Autonomous Region, including Ladakh and Arunachal Pradesh, for the past five years. With no information available, the village houses are seen as dual-use infrastructure for both civilian and military purposes. Under the Vibrant Villages programme, India plans to develop 663 border villages into modern villages with all amenities in the first phase to boost its border infrastructure. (Amrita Nayak Dutta, “China moves its nationals into its vacant ‘defence villages’ along LAC,” The Indian Express, 15 February 2024)

Xiaomi advises India against targeted scrutiny of Chinese firms
On 11 February, Reuters reported on Xiaomi expressing concerns over India targeting the Chinese firms. The company said that they were concerned over India’s scrutiny by the government against Chinese companies. Xiaomi holds the largest smartphone share in the Indian market. The comments came when the Ministry of Electronics and Information Technology asked the company in what ways they increased their collaboration. Xiaomi also suggested lowering import tariffs for certain components. While most of the phones are manufactured in India some components are brought from outside China. (“Exclusive: Xiaomi says India's scrutiny of Chinese firms unnerves suppliers,” Reuters, 12 February 2024)

China’s ties with Taliban diplomatic, AlJazeera
On 30 January, according to an editorial in Al Jazeera titled “Why has China recognised Taliban’s envoy to Beijing?,” by Ruchi Kumar, the Chinese government held an official ceremony for the 309 foreign diplomats, including the Taliban envoy in Beijing to present their credentials in front of President Xi Jinping. China’s recognition of the Taliban spokesman as an official envoy to Beijing makes it the first country in the world to do so after the Taliban’s power seizure in Afghanistan. Post the withdrawal of the US in 2021, China has been making inroads into Afghanistan through its investment projects. Post the ceremony, the Chinese Ministry of Foreign Affairs quickly clarified that the acceptance of diplomatic credentials did not signal Beijing’s official recognition of Afghanistan’s current rulers. According to Jiayi Zhou, China’s ties with Afghanistan are pragmatic and are mainly dominated by security. Taliban aspires for stronger relations with countries like China, Russia, and India to tackle its growing domestic economic crisis and for global recognition. (Ruchi Kumar, “Why has China recognised Taliban’s envoy to Beijing?” Al Jazeera, 14 January 2024)

CHINA & THE PACIFIC
US delays Pacific Islands funds amid China’s lobbying
On 14 February, while referring to the Marshall Islands, Micronesia, and Palau, Camille Dawson, a deputy assistant secretary at the US State Department, said that the White House continues to advocate for the authorization and appropriation of funds. The Compact of Free Association (Cofa) is essential for the US to maintain its presence amid Beijing’s coercive influence campaign in the Indo-Pacific region. Despite the bipartisan support, the promised funds still await congressional approval. On 13 February, the US Senate passed a USD 95 billion emergency aid package for Ukraine, Israel, and Taiwan but kept Cofa out of it. (Khushboo Sundar, “US still seeks delayed Pacific islands funds amid China’s lobbying push in region: senior diplomat,” South China Morning Post, 15 February 2024)

CHINA & AFRICA
Kenya diversifies its funding avenues amid looming Chinese debt
On 09 February, according to a statement from President William Ruto, Kenya looked to explore alternative avenues for funding for development as the country felt that “overreliance on one market is not good for any country." President Ruto visited Japan last week to meet PM Fumio Kishida and signed an MOU on issuing a samurai bond to Kenya. According to Kenyan government data, China accounted for 73 per cent of the East African country's bilateral debt in 2022, with major borrowing for projects including a railway between Nairobi and the port city of Mombasa. The data showed that Kenya's total debt nearly doubled from 2018 to around 8 trillion Kenyan shillings (USD 50 billion at current rates) in 2022, or roughly 70 per cent of GDP. George Sato, head of the Nairobi office of the Japan External Trade Organization (JETRO), said that Kenya's growing risk of debt default is narrowing the scope for other fundraising options, thus making China the lender of the last resort. (Kana Watanabe, “As China debt looms, Kenya president seeks more diverse funding,” Nikkei Asia, 13 February 2024)

CHINA & THE AMERICAS
Russia and China condemn the US and UK military operation in the Red Sea
On 14 February, Russia and China accused the US and Britain of illegally attacking military sites operated by Houthi rebels to launch missiles on commercial vessels in the Red Sea, disrupting global shipping. US Deputy Ambassador Robert Wood and UK Ambassador Barbara Woodward countered both countries that the Houthi attacks are illegal and their “proportionate and legal action” against the Yemen rebels is being taken in self-defence. Woodward said the Houthi attacks are “driving up the costs of global shipping, including the costs of food supplies and humanitarian aid in the region.” Russia’s deputy U.N. ambassador Dmitry Polyansky and China’s UN envoy Zhang Jun argued that the UN Security Council never authorized military action against Yemen. (Edith M. Lederer, “Russia and China clash with US and UK over attacks on Yemen rebels for strikes on Red Sea ships,” Associated Press, 15 February 2024)

US to deploy five aircraft carriers in the Western Pacific to deter China, Opinion
On 14 February, according to an Opinion in the South China Morning Post, titled “US to deploy 5 aircraft carriers in western Pacific in show of strength to China,” by Seong Hyeon Choi, the US aims to deploy five aircraft carriers in the Western Pacific in 2024 to signal the deterrence against China and North Korea, who are increasing their military activity in the region. The region already has three operational US carriers, and two more carriers will join in the next few days. In January 2024, the Theodore Roosevelt and Carl Vinson strike groups participated in a Multi-Large Deck Event with Japan in the Philippine Sea. According to the US Navy 7th Fleet, the exercise was intended “to strengthen maritime integrated-at-sea operations and combat readiness”. According to Brian Hart, a fellow with the China Power Project at the Centre for Strategic and International Studies, with the ongoing tensions in the Middle East, the US military wants to signal that it can handle those situations while remaining focused on the priority theatre, which is the Indo-Pacific. (Seong Hyeon Choi, “US to deploy 5 aircraft carriers in western Pacific in show of strength to China,” South China Morning Post, 14 February 2024)

Chinese shipyards ready for a long war with the US
On 13 February, according to an opinion in the Wall Street Journal, titled “China’s Shipyards Are Ready for a Protracted War. America’s Aren’t,” by Niharika Mandhana, China is an emerging global power with its shipyards projecting its industrial and military might. According to Thomas Shugart, China’s rapid growth of its shipyards is unbelievable compared to American shipbuilding. China’s shipyards are seen as the historical transformation of its internal-looking nation to a maritime nation. American shipyards suffer from severe backlogs, limited suppliers, and cost overruns, with very few commercial ships being built in the country. According to Anderson, Chinese shipbuilding benefits from a massive commercial shipbuilding workload compared to US shipyards, which mainly rely on its navy. (Niharika Mandhana, “China’s Shipyards Are Ready for a Protracted War. America’s Aren’t, Wall Street Journal, 13 February 2024)

CHINA & EUROPE
EU considers imposing sanctions on Chinese firms for supporting Russia
On 13 February, according to a commentary in CNBC titled “European Union is considering sanctions on Chinese firms for aiding Russia’s war machine,” by Silvia Amaro, the European Union (EU) plans to impose sanctions on Chinese firms for supporting Russia in its war against Ukraine by circumventing sanctions. The 27-member bloc is working on a 13th package of sanctions amid Russia’s invasion of Ukraine. European Commission President Ursula von der Leyen said that sanctions had led to Russia’s decoupling from the global economy, which has led to its dependence on China. According to Reuters, data from China’s General Administration of Customs released in January showed that China’s trade relationship with Russia hit a new record high of USD 240 billion in 2023. (Silvia Amaro, “European Union is considering sanctions on Chinese firms for aiding Russia’s war machine,” CNBC, 13 February 2024)

UK’s post-Brexit Trade Watchdog to investigate Chinese EV Cars in the Country
On 13 February, according to an opinion in The Guardian titled “Post-Brexit watchdog ‘ready’ to investigate flood of cheaper Chinese electric cars,” by Richard Partington, head of Britain’s post-Brexit trade watchdog that is UK’s Trade Remedies Authority (TRA) Oliver Griffiths said that the government is ready to follow EU’s anti-subsidy investigation into Chinese companies flooding the EV car market. Chinese car makers intend to dominate the international markets with the support from their government. According to Partington, some UK parliamentarians such as the former Conservative party leader Iain Duncan Smith and the Labour peer Helena Kennedy are concerned and said they were undercut to the point of extinction” by Chinese companies. Many carmakers in the UK have close links with China, including JLR's joint venture in China. (Richard Partington, “Post-Brexit watchdog ‘ready’ to investigate flood of cheaper Chinese electric cars,” The Guardian, 13 February 2024)

David Cameroon to hold a meeting with his Chinese counterpart
On 13 February, according to a report in The Guardian, UK’s Foreign Secretary David Cameroon is expected to meet his Chinese counterpart Wang Yi at the Munich security conference. It will be Cameroon's first meeting since he was appointed to PM Sunak’s cabinet in 2023. He has been accused of close ties with China. Former Conservative party leader Iain Duncan Smith, who has been sanctioned by the Chinese government, has asked Cameroon to raise the issue of the Uyghur Genocide and human rights violations of other ethnicities, including Tibetans. Cameroon has publicly called on China to end the prosecution against Jimmy Lai. (Eleni Courea, “David Cameron to have first meeting with Chinese foreign minister,” The Guardian, 13 February 2024)

EAST ASIA & THE PACIFIC READER

EAST ASIA
Japan falls behind Germany as the 4th largest economy
On 15 February 2024, according to Business Standard, Japan fell behind Germany to become the world’s 4th largest economy. According to the Cabinet Office data on real GDP, Japan’s economy shrank at an annual rate of 0.4 per cent between October and December 2023. Until 2010, Japan’s economy was the second largest when China overtook it. Japan’s economy currently stands at USD 4.2 trillion compared to Germany’s USD 4.5 trillion in 2023. The fall in the ranking is due to the weak Japanese yen, a decline in its population, and a lag in productivity and competition. India is poised to overtake Japan in the next two years, and the gap between the developed and emerging economies is shrinking. Marcel Thieliant of Capital Economics said that the forecast for GDP growth would reduce from 1.9 per cent in 2023 to 0.5 per cent in 2024. (“Japan slips to world's 4th-largest economy, behind US, China, and Germany,” Business Standard, 15 February 2024)

North Korea fired multiple cruise missiles
On 14 February, Seoul reported multiple cruise missiles launched by North Korea as part of its weapon tests with increased aggressive rhetoric from its leader, Kim Jong Un. Till now, the North Korean leaders have threatened South Korea with war, dismantled reunification and outreach agencies, and labelled it as the country’s ‘‘principal enemy’’. The Joint Chiefs of Staff (JCS) said in a statement, “Our military detected several unknown cruise missiles over the waters north-east of Wonsan around 9 am today (8 am Singapore time), and South Korea-US intelligence authorities are conducting a detailed analysis,”. Experts believe that North Korea is testing the weapons before sending it to Russia in its war against Ukraine. (“North Korea fires several cruise missiles off east coast, says South Korea military,” The Straits Times, 14 February 2024)

THE PACIFIC
Three US allies issue warning on Israel’s Rafah offensive
On 15 February, three US allies, namely Canada, Australia and New Zealand, issued a warning against the Israel Defence Forces (IDF)planned offensive in Rafah as it would lead to a devastating impact on the civilians. So far, around one million people have fled to the Southern Gaza city of Rafah on the border with Egypt. The United States, the European Union, and Arab states strongly criticized the potential offensive. Israeli officials say Rafah is critical to their operations in Gaza because it still harbours Hamas fighters. Their statement comes after US President Joe Biden urged Netanyahu not to conduct any military operation in Rafah without a credible and executable plan. Also, mediators, including Qatar, Egypt, and the US, are holding peace talks in Cairo this week to try to achieve a ceasefire in return for the release of some of the hostages. (“Key US allies warn Israel against planned offensive in Rafah,” The Straits Times, 15 February 2024)

Australia must impose climate change levy on fossil fuels
On 14 February, according to Professor Rod Sims and Professor Ross Garnaut of the pro-climate action think-tank The Superpower Institute, the producers and consumers of fossil fuels should pay a new climate levy to boost the efforts towards a green economy. They added that the charge would impact more than 100 businesses and be levied on each tonne of pollution at a rate equivalent to the European carbon price. The levy is expected to generate USD 100 billion a year to help fund renewable energy deployments, improve power grids, and underwrite new infrastructure to support the development of green export industries. The professors also said that the prospects of making green fossil fuels can reduce world emissions by 6 to 9 per cent. The proposal will fuel debate over climate policy in Australia, as the country withdrew a carbon levy imposed in 2014 after fierce opposition from some sections. (“Australia fossil fuels should face new climate levy, experts say,” The Straits Times, 14 February 2024),

Australia bats for Julian Assange’s release
On 14 February, Australian PM Anthony Albanese voted in favour of a motion in the parliament’s lower house to extradite the Wikileaks founder Julian Assange to Australia amid the upcoming London High Court hearing. The motion, moved by independent lawmaker Andrew Wilkie, was passed with 86 votes in favour and 42 against. The conservative opposition coalition opposed the motion. The US officials are looking to extradite Assange from Britain to the US, where he is wanted on criminal charges over Wikileaks release of confidential US military records and diplomatic cables. The public hearing will take place on 20-21 February. (“Renju Jose, “Australia PM backs parliament motion calling for Julian Assange's release,” Reuters, 14 February 2024)