CHINA READER DAILY WIRE

INTERNAL
Chinese provincial officials meet state bankers to discuss debt liabilities, says Financial Times
On 10 March, according to an opinion in the Financial Times titled, “China’s indebted provinces meet state bankers to discuss debt relief,” by Cheng Leng, officials from the Liaoning and Hebei provinces in the city of Tianjin engaged in high-level talks with the state bankers on the sidelines of the annual Two Sessions meeting in Beijing to negotiate on debt payments. The local governments have accumulated enormous debts and are facing problems concerning the investment limit, primarily driven by the infrastructure sector. According to Goldman Sachs, Chinese local governments have accumulated debt of RMB 94 trillion (USD 13 trillion). According to Moody’s, a total of Rmb3.2tn of public bonds must be repaid by the end of 2024. As per Leng, Beijing has decided to provide RMB 1.4 trillion in special refinancing bonds to assist the local government’s debt concerns. According to Moody’s, the Chinese government has shifted its focus to tackle mid to long-term debts by cutting the number of LGFVs, which will require a long time to manage effectively. (Cheng Leng, “China’s indebted provinces meet state bankers to discuss debt relief,” Financial Times, 10 March 2024)

China to train additional skilled workers amid labour shortage, says The Straits Times
On 09 March, according to an opinion in The Straits Times titled, “China wants more skilled workers, ‘top-notch innovators’ to create new growth,” by Lim Min Zhang, China plans to boost the training of skilled workers as part of its education reforms to create “top-notch innovators” to aid its slowing economy. China’s Minister of Human Resources and Social Security, Wang Xiaoping, said that there is a lack of frontline technicians, such as elderly caregivers, fitters, and welders, as the country’s skill force exceeds above 200 million, with 60 million comprising highly skilled workers. Wang said that the ministry intends to push young workers to build a critical pool of knowledge- and skill-based workers by citing the case of digital technology and strengthening the pool of skilled workers in the fields of intelligent manufacturing, big data, blockchain, and integrated circuits. On 09 March, Education Minister Huai Jinpeng said that reforms in the education sector are needed to create a pool of “new productive forces” for its high-tech and innovative industries. (Lim Min Zhang, “China wants more skilled workers, ‘top-notch innovators’ to create new growth,” The Straits Times, 09 March 2024)

“Housing is for living in, not for speculation,” says Chinese Housing Minister
On 09 March, China’s Housing and Urban-Rural Development Minister Ni Hong stated, “We must adhere, to the very end, the belief that housing is for living in, not for speculation,” amid the ongoing property crisis. The clarification comes after Premier Li Qiang’s government work report omitted the slogan “housing is for living in, not speculation” for the first time since 2019. The phrase has been used since 2016 when the market was over-speculated. Despite the government’s assurances of treating real estate companies equally, investors remain concerned about their money. Despite acknowledging the crisis, Ni pointed out that current issues relate to capital. He added that the government will implement a new development model for its real estate sector, including government-subsidised housing in line with President Xi’s "common prosperity." (“China reiterates stance that homes are not for speculation,” The Straits Times, 10 March 2024)

China relies more on its domestic industries than imports
On 11 March, South China Morning Post published on the Stockholm International Peace Research Institute (SIPRI) report , Chinese arms imports were reduced to half as they relied more on domestic technology. The report says that arms imports by China fell by 44 per cent in 2019-2023 compared to the previous five years, thus making it the 10th largest buyer of foreign weapons. However, Russia still accounts for the bulk of China’s arms imports by 77 per cent, followed by France at 13 per cent. Previous SIPRI reports indicate that Ukraine accounted for 5.9 per cent of China’s total arms imports in 2017-21. Siemon Wezeman, a senior researcher with the SIPRI Arms Transfers Programme, said Russia can’t replace imports from Ukraine as it depends upon Kyiv for engines. He added that China has localized many defence items, especially in the aero and marine engines category. He said China still faces difficulty manufacturing helicopters and mostly relies on under-licensed French helicopters and imported Russian helicopters. The report also highlights India topping the import list with 9.8 per cent from 9.1 per cent in 2014-18 due to the growing tensions with Pakistan and China. Wezman added that Japan and South Korea's growing arms imports are driven by China’s growing ambitions in the region. (Seong Hyeon Choi, “China cuts arms imports to rely more on its own weapons tech but Russia still biggest overseas supplier: SIPRI,” South China Morning Post, 11 March 2024)

CHINA & THE PACIFIC
Australian detained in China under espionage charges may not face the death sentence,” says Chinese ambassador to Australia
On 11 March, China’s ambassador to Australia, Xiao Qian, said that the suspended death sentence given to Australian writer Yang Hengjun in February 2024 may not be carried out if the blogger commits no further crimes. He also said, “The suspended sentence from a Beijing court on espionage charges does not entail immediate execution for Yang,” and added that he may not be executed theoretically if Yang complies with the imprisonment terms. He said Yang’s health was not severely affected, as his family claimed. The Beijing court sentenced him to five years imprisonment and three years of closed trial. Yang has not appealed against the court’s verdict and denied any wrongdoings of working as a spy. Yang’s family said that he was a political prisoner, and it indicates the failure of the Chinese prosecutors to extract any confession. (“Australian writer sentenced to death in China may never be executed, says Chinese ambassador,” The Straits Times, 11 March 2024)

Australia hopeful of lifting tariffs on its exports by China, says Trade Minister
On 10 March, Australian Trade Minister Don Farell said that he was hopeful of China lifting tariffs on the export of its wine up to 218 per cent from 2021. China is also reviewing the restrictions placed on the import of lobsters from Australia. Farell said that the tariff removal process will be completed by 10 March. However, he said that Australia won’t hesitate to file a suit against China at the WTO if Beijing does not comply with the deadline. The restrictions were part of escalating tensions between the two sides when Australia called for investigations into the origins of Covid-19. So far, China has steadily removed several restrictions on the trade of commodities such as barley, wine, coal, and lobsters from Australia. (“Good progress on lifting Chinese trade restrictions on wine, lobster, says Australian minister,” The Straits Times, 10 March 2024)

CHINA & THE AMERICAS
‘1939 moment,’ book review of ‘The Return of Great Powers,’ by Jim Sciutto, in The Guardian
On 10 March, The Guardian published a book review by David Smith on the celebrated CNN anchor and analyst Jim Sciutto’s new book “The Return of Great Powers.” The book states that the current Russia-Ukraine war is similar to the 1939 moment, the beginning of World War II. And supports this argument by stating that you have a territorially aggressive leader Putin, who is ready to use force to change the borders and he has already. Some in the West advise that they should give them some territory and then it will be fine, but Sciutto disagrees and states that when you give a little, they realize that they can take more. He then moves to discuss how several believe that it is not our war and that it is too far away, he understands this sentiment as to why folk’s wounds want to send their children to war. The narrative “I don’t want to have another war,” makes sense but Sciutto questions whether can we have peace in the time given and the track record we see with Russia and China, or are we just waiting for the next war and the next land grab to happen? David Smith points out the issue raised by Sciutto over internal factionalism in the US Foreign Policy. Both parties the Democrats and the Republicans espouse different policies, with Trump supporting isolationism and America First policy. Sciutto believes that the war over Taiwan would look very different since Biden abandoned strategic ambiguity and vowed to defend Taiwan, while Trump might find Taiwan too small and insignificant for the US to care about. The polarization on issues doesn’t help the US image with either they are: “too weak or too strong or too involved or not involved enough, some of which just comes with being the richest country in the world and the most powerful military that talks a big game about solving all the world’s problems. To some degree, I’ve been hearing this for years, but I will say that the last decade or two hasn’t improved the US record or soft power abroad. I can say that pretty safely,” says Sciuttos. The partisan behaviour in the US Foreign Policy concerns the author, and this election stands to be crucial as it would define the choice of the voters and what role it wants America to play in geopolitics. (“‘A 1939 moment’: Jim Sciutto on Russia, China and the threat of war,” The Guardian, 10 March 2024)

American to sanction additional Chinese firms speculations reported by Reuters
On 10 March, Reuters reported that the US plans to make additions to the list of Chinese companies under their sanctions list. One of the companies considered is ChangXin Memory Technologies which specializes in making DRAM memory chips used in everyday products, they have a special focus on civilian and commercial products. Reuters quoted Bloomberg News where they consulted relevant heads of the US Commercial Department Bureau of Industry and Security. They stated that plan to add ChangXin to the list and restrict its access to US technology with the other five Chinese companies. The company representative responded to the rumors and said that they have always complied with the US export regulations. The US last year-imposed sanctions on American export to China on critical technological-related material and intelligence, soon after Huawei’s Mate 60 pro phone came out with one of the most sophisticated chips. Since their technological advancement America has moved further to curb the access to Chinese advancement in AI Chips, which could in turn strengthen their military. (“US mulls blacklisting CXMT to curb China's chip advance, Bloomberg News says,” Reuters, 10 March 2024)

China-based crane firm questioned over cyber risk by the US authorities
On 10 March, Shanghai Zhenhua Heavy Industries (ZPMC) clarified with the US authorities that their cranes do not pose any cyber threats to the US. This comes after the US congressional committee questioned the Chinese enterprise, the Swiss engineering company ABB operated in China with ZPMC to sell the US Ship to shore cranes. In January, they investigated their relationship with the Chinese state-owned firm ZPMC and expressed significant concerns over their partnership. The issue stated that: “ZPMC takes the U.S. concerns seriously and believes that these reports can easily mislead the public without sufficient factual review,” said the committee. The ZPMC representative stated that their cranes are sold all around the world and that they comply with international standards and laws, including those of the US. (“Shanghai Zhenhua denies posing cybersecurity risk to US ports,” Reuters, 10 March 2024)
 

EAST ASIA & THE PACIFIC READER

EAST ASIA
Diminishing PM Fumio Kishida’s popularity due to slush fund scandal, Opinion
On 10 March, the East Asia Forum, published an opinion titled, “PM Kishida likely casualty in Japan’s political slush fund scandal,” by Ben Ascione looking into tribulations facing PM Fumio Kishida as his popularity sees a dip since the slush fund scandal. The Liberal Democratic Party (LDP) slush fund scandal on the underreported income from fundraising party tickets. The accusation is that USD 6.5 million were procured through this and is mostly with Shinzo Abe’s faction. The faction members usually set a quota for how much the tickets are sold and the profits made beyond a point are returned to the member of the parliament, or given to factional funds, though not illegal, it must be declared. This scandal greatly affected Kishida’s popularity, he tried to reshuffle the cabinet by replacing Abe’s faction members, but it did not work. Kishida led a 38-person task force for political reform with nine of Shinzo Abe's faction members, bringing their credibility to be questioned. With the falling popularity of Kishida their a hunt for a new candidate, where Kingmakers Suga and Aso are support leaders. (“PM Kishida likely casualty in Japan’s political slush fund scandal,” East Asia Forum, 10 March 2024)

THE PACIFIC
Scientists found 100 new species of marine life in New Zealand
On 10 March, a team of 21 scientists discovered 100 new species in the waters of Bounty Trough. The leader of the expedition and marine biologist Dr Alex Rodgers believes that there are likely to be more stating: “I expect that number to increase as we work through more and more of the samples,” and that “I think that number is going to be in the hundreds instead of just 100.” The discovery includes new species of molluscs, fish, shrimp and cephalopods. It is believed that over two million kinds of species are present in the Ocean out of only 10 per cent have been discovered and therefore it is vital to learn about the ocean and aquatic life. He also said: “To try to manage human activities to prevent this continuing decline, we need to understand the distribution of marine life better than we currently do.”(“Scientists discover 100 new marine species in New Zealand,” The Straits Times, 11 March 2024)

Australia to remove import tariffs to simplify trading system
On 11 March, Treasurer Jim Chalmers said that they would remove import tariffs on a wide range of goods, including toothbrushes, toasters, hand tools, and clothing, to tackle red tape and to ensure lower living costs for families. He said the tariff removal would streamline about AUSD 8.5 billion worth of annual trade and save businesses more than USD30 million in compliance costs yearly. Chalmers said the tariffs on 500 goods will be removed from 01 July to reform Australia’s trading system. He said such reforms are the first in two decades and will abolish 14 per cent of Australia’s total tariffs. He added that the complete list of tariff cuts will be finalized in the May federal budget. (“Australia scraps ‘nuisance’ tariffs to remove red tape, lower living costs,” The Straits Times, 11 March 2024)