HIGHTLIGHTS 
SCIENCE & TECHNOLOGY
China is critical for Apple’s Business, says Tim Cook
On 20 March, according to an opinion in The Financial Times titled, “Tim Cook praises China’s ‘critical’ role in Apple’s business,” by Ryan McMorrow, CEO of Apple Tim Cook, in his visit to China, said China is critical to its businesses amid the declining sales of its iPhones products in the country. On his sudden trip to Beijing, he praised the country’s market and vowed to invest more in China. Financial Times quoted Global Times report on Tim Cook saying, “There’s no supply chain in the world that’s more critical to us than China,” and appreciated the “high level of modernization in Chinese factories, with very advanced manufacturing capabilities and well-trained workers.” Cook’s visit comes amid the declining sales of its iPhones, which contributed to USD 21 billion in the fourth quarter of 2023, which is 17 per cent of total sales in China. The research group Counterpoint noted that the sales of iPhones declined 13 per cent year on year and had declined by 24 per cent in 2022. According to Ryan, Apple’s sales were affected by the ban on using iPhones among Chinese state employees and the government's increased championing of Huawei and other domestic brands amid the US sanctions. Cook said the company will build more on China's already invested USD 140 million in an applied research lab. (Ryan McMorrow, “Tim Cook praises China’s ‘critical’ role in Apple’s business,” Financial Times, 22 March 2024)

CHINA & SOUTHEAST ASIA
Senior leaders from China and Singapore discuss the future of deeper cooperation
On 21 March, two high-level delegates from China and Singapore, China's Central Party School President Chen Xi and Singapore’s Senior Minister Teo Chee Hean met and discussed ways to understand China, to work better together in a deeper manner. Teo said that they participated in a long list of activities, human resource development between the two countries, and the two parties the Communist Party of China and the People’s Action Party. Teo also reflected that the exchanges between the two parties allow them to learn from each other's experiences and insights. He also said: “We want to understand China more deeply, come to the provinces, understand what you’re doing in the party school, what are the key priorities that you have. And how you’re addressing those priorities.” Chen also agreed that he hoped the two countries and their leaders could continue to work together. (“Singapore-China govt, party exchanges allow for deeper cooperation: Teo Chee Hean,” The Straits Times, 22 March 2024)

CHINA & THE PACIFIC
China plans to hold talks on maritime affairs with Australia
On 21 March, The Ministry of Foreign Affairs of the People’s Republic of China Lin Jian said that China is interested in discussing maritime affairs with Australia amid the increased tensions among several countries bordering the South China Sea (SCS) threatening its regional security. The plan comes after the visit of Foreign Minister Wang Yi to Australia to discuss the issue of trade and regional security. Lin said the discussion will also focus on increasing cooperation in the areas of diplomacy, trade, technology, education, and law enforcement. In the joint statement in March 2024, both sides agreed to refrain from any unilateral action in the SCS. On 21 March, in a meeting with Wang Yi, the Premier of New South Wales, Chris Minns, said that the country is willing to deepen its cooperation with China in various fields. (“China considers launching maritime talks with Australia,” The Straits Times, 21 March 2024)

CHINA READER DAILY WIRE
INTERNAL
China looks into the PwC financial advisor’s role in Evergrande fraud
On 22 March, Bloomberg reported on the Chinese authorities investigating the role of PricewaterhouseCoopers LLP (PwC) in the Evergrande fraud. The PwC group’s accounting practices are questioned as the real-estate giant and its owner Hui Ka Yan were accused of USD 78 billion fraud, by overstating their revenue. Evergrande’s onshore subsidiary Hengda Real Estate Group is also accused of hiking the revenue as well. The auditors of PwC who handled the Evergrande account are contacted and the decision to penalize them is still going on. The PwC is already going through a fallout scandal with many of its international firms observing job cuts as the company was accused of sharing government tax plans with its clients. GMT Research Ltd. in Hong Kong analyst Nigel Stevenson said that these are some serious accusations. The GMT firm had previously questioned the financial report presented by the Evergrande group. The Chinese Securities Regulatory Commission stated that Hengda also overstated USD 12.7 billion in profit between the years 2019-2020. A professor of accounting practice at Sheffield University in the UK, Richard Murphy said that this would affect PwC’s reputation not only in China but also globally. (“China Scrutinizes PwC Role in $78 Billion Evergrande Fraud Case,” Bloomberg, 22 March 2024)

ECONOMY
China’s “ultra-long” bond for the local government, an explainer in SCMP
On 22 March, an Explainer in the South China Morning Post, titled, “What makes China’s ‘ultra-long’ bonds special? Here’s what we know about Beijing’s trillion-yuan offering to stabilise the economy,” by Amanda Lee looked into the new “Ultra Long” bond provision brought by the Chinese government offering 1 trillion yuan. The provision was announced at the annual plenary meeting where they aimed at 5 per cent economic growth. The details of the bonds are yet to be revealed, the Analyst believes that the bonds could of 30-50 years long and that the special nature of bonds means that they would be allocated for specific purposes only. The 1 trillion yuan would be “off-budget,” and the funds would be used to support areas of technological and innovation, urban-rural development, regional development, food-energy security, and population development. There are only special cases when such bonds are sold and the reason for this is the growing debt faced by the local government of China, which is at the forefront of promoting economic gains. (“What makes China’s ‘ultra-long’ bonds special? Here’s what we know about Beijing’s trillion-yuan offering to stabilise the economy,” South China Morning Post, 22 March 2024)

CHINA & TAIWAN
Taiwanese Ministry of National Defence detected 36 Chinese aircraft in Taiwan
On 22 March, the Taiwanese Ministry of National Defence informed that 36 Chinese military aircraft had been detected near the Taiwan Islands within the window of 24 hours. Additionally, the Ministry also detected six naval ships that were operating near Taiwan. The Ministry of National Defence stated that 13 aircraft crossed the median line of the Taiwan Strait, this median line is important as it separates China from Taiwan. The relations between the two countries have become frosty with the election of pro-independence President Tsai in 2016 and the recent election of her party leader William Lai in 2024 of the Democratic Progressive Party. China sees Taiwan as an indispensable part of its own, while Taiwan disagrees. (“Taiwan detects 36 Chinese military aircraft in high single-day activity,” The Strait Times, 22 March 2024)

CHINA & SOUTHEAST ASIA
Chinese Coast Guard accused Philippines civilians of illegally entering the Tiexian reef of Spratly Island
On 21 March, Chinese Coast Guards accused the Philippines nationals of illegally landing on the disputed reef of the South China Sea. The Chinese Coast Guard alleges that 34 people from the Philippines were warned against entering the Tiexian Reef of Spratly Island. The Chinese side stated that they investigated the incident and dealt with the matter in accordance with the law. China claims “indisputable” sovereignty over the reefs and Spratly Island and they believe that their territorial rights were undermined in the South China Sea. The Chinese Coast Guard Gan Yu said: “We urge the Philippine side to immediately stop the infringements. The Chinese coastguard will continue to protect our legal rights and enforce the law in waters under China’s jurisdiction.” (“Beijing says Philippines made ‘illegal landing’ on disputed reef in South China Sea,” South China Morning Post, 21 March 2024)

Internal faultlines in Southeast Asia’s approach to the South China Sea dispute, a commentary in East Asia Forum
On 22 March, according to a commentary in East Asia Forum titled “Southeast Asia stymied in South China Sea dispute,” ASEAN’s efforts to resolve the South China Sea dispute have lacked effective outcomes on the overlapping claims of the countries and have forced the claimant countries to seek outside of the ASEAN process. This is evident in the Philippines' approach to Vietnam by establishing a direct hotline with each other’s coast guard to avoid unwanted incidents. This approach is seen as a way to resolve the pending issue of the Code of Conduct within ASEAN member states. The Philippines’ expedited measures are a result of the fatigue witnessed in the negotiation process and China’s growing aggression. The Philippines has been taking a collective deterrence strategy to counter China’s claim by aligning with like-minded countries like the US, whereas Vietnam is prudent in its actions and wishes to separate maritime issues from its overall relations with China. China’s Three Warfares strategy by using tools such as public opinion, psychological and legal warfare, and economic rewards to keep the ASEAN countries divided on the SCS issue. Thus, China’s wedge strategy and divided Southeast Asia countries continue to weaken the overall ASEAN’s mechanism to resolve the ongoing South China Sea dispute. (Harshit Prajapati & Prisie L Patnayak, “Southeast Asia stymied in South China Sea dispute,” East Asia Forum, 22 March 2024)

CHINA & THE MIDDLE EAST
Houthi rebels affirm safety deal with Russia and China at the Red Sea in turn for diplomatic support, says Bloomberg
On 21 March, Bloomberg reported on a deal struck between the Yemen-based and Iran-backed Houthi Rebel fighters in the Red Sea with Russia and China. Houthi group told China and Russia that their ships could freely sail in the region of Red and the Gulf of Aden, as they wouldn’t be attacked. This understanding was reached between the Chinese, and Russian diplomats and the Houthi top leader and spokesperson Mohammed Abdel Salam. In return, the rebel groups want political support in the Global Arena, like the United Nations Security Council. The discussion did not specify how this support would work, but the larger aim of this deal is to block provisions against the rebel group, says Bloomberg. The misidentification of ships has become a problem in the region and now both Russia and China want stronger assurance from the rebel group, says Bloomberg. In January, missiles exploded near a ship boarding Russian Oil, days after the Houthi spokesperson affirmed that both countries should not fear the attacks. Most Western ships have changed their trajectory for trade routes by going around Southern Africa, while China and Russia’s ship tracking details show that they still follow the shipping route. The senior Houthi political leader Ali Alqhoom said: “sinking America, Britain, and the West in the swamp of the Red Sea.” Russia and China seek more security and affirm the safety of their cargo from the Houthi attacks. (Sam Dagher, Mohammed Hatem, “Yemen’s Houthis Tell China, Russia Their Ships Won’t Be Targeted,” Bloomberg, 21 March 2024)

CHINA & THE AMERICAS
Democrats objected to the bill passed in the Georgia House of Representatives to ban Chinese agents from purchasing land in Georgia
On 21 March, the Democrats objected to the new bill that was passed in the Georgia House of Representatives, which would ban any agent of China, Cuba, Iran, North Korea, and Russia who are not US citizens or legal residents from owning farmland in Georgia or any land in the state within10 miles (16 kilometres) of a military installation unless they have spent at least 10 months of the previous year living in Georgia; stating that it would lead to discriminations against Asian Americans and threatens national security. After lengthy debates and testimonies, the State House voted 97 to 67 in favour of SB420. Rep. Michelle Au, a Democrat of Chinese American origin, said that she has been accused of being an “agent of the Chinese Communist Party (CCP), spy, a plant, un-American and a foreign asset.” She said that the bill aimed to weaponize racism against residents from certain parts of the world. Republicans defending their stance noted that the bill does not pose any discrimination and aims to protect the country’s food supply and military from foreign adversaries. The approved bill will be going to the State Senate for consideration. Other states such as Florida, Alabama, Louisiana, and Arkansas passed similar laws amid fears of growing Chinese espionage. The law became important after the Chinese spy balloon flew over the US in 2023. (Sudhin Thanawala, “Land purchases by Chinese ‘agents’ would be limited under Georgia bill; Democrats say it’s racist,” Associated Press, 22 March 2024)

Chinese chipmaker SMIC potentially violated American control laws, says US Under Secretary of Commerce for Industry and Security
On 21 March, the Under Secretary of Commerce for Industry and Security Alan Estevez said in a testimony that the Chinese chipmaker Semiconductor Manufacturing International Corporation (SMIC) “potentially” broke American law for manufacturing a processor for a company named Huawei Technologies sanctioned by the US. In reply to the question raised by the US Foreign Affairs Committee chairman Michael McCaul, Estevez said that the concerns were serious about SMIC’s potential sale of a 7nm processor to Huawei. He also said that SMIC’s manufacturing process has a low yield for producing advanced chips. SCMP also noted that despite the US sanctions, Huawei incorporated the advanced 7nm chip into its latest Mate 60 device, which coincided with the visit of Commerce Secretary Gina Raimondo in August 2023. Estevez noted that Huawei had access to chip manufacturing tools before the US sanctions took effect. In September 2023, The Bureau of Industry and Security said that it is investigating the sale of a 7nm chip and will take measures to protect US national security. (“Chinese chip maker SMIC ‘potentially’ broke US law to make Huawei’s 7-nm smartphone processor, lawmaker says,” South China Morning Post, 22 March 2024)

Xi Jinping plans to meet US business leaders in Beijing
On 21 March, Chinese President Xi Jinping plans to meet the US business leaders on 27 March amid the government’s efforts to attract foreign businesses in light of the excessive outflow of FDI. Along with Xi Jinping, Chubb’s CEO Evan Greenberg, Stephen Orlins, president of the National Committee on US-China Relations, and Craig Allen, president of the US-China Business Council are expected to attend the meeting. According to the Wall Street Journal, US business leaders will be attending the China Development Forum to meet the Chinese policymakers and the theme for the forum is focused on China’s economic growth, artificial intelligence and climate change. According to Liza, foreign companies are seeking reassurances from China about the inconsistency in regulations and operational risks. Amid the growing US-Sino tensions, only 23 business leaders came to China in March 2023 to attend the forum. At the November dinner meeting with Xi, China did not provide any assurance for executives in China for its counter-espionage law. (Liza Lin, “China’s Xi Jinping to Meet U.S. CEOs in Beijing Next Week,” The Wall Street Journal, 21 March 2024)

EAST ASIA & THE PACIFIC READER
EAST ASIA
South Korea’s Ambassador to Australia Lee Jong-sup willing to cooperate on the ongoing probe in Seoul
On 21 March, South Korea’s Ambassador to Australia Lee Jong-sup said that he is willing to face questions from the anti-corruption agency over allegations of manipulating the probe on the death of a marine, who was involved in a search and rescue operation during floods in 2023. He had denied any wrongdoings. Lee was recently appointed as the head of the embassy in Canberra. Some South Korean lawmakers had criticized Lee’s appointment as the ambassador to Australia on 10 March amid the ongoing investigation. President Yoon’s office said that Lee’s appointment was under the law and would fully cooperate with the investigation. (“South Korea’s ambassador to Australia says he will cooperate with graft probe,” The Straits Times, 21 March 2024)

North Korea’s ruling Workers’ Party of Korea delegation heads for a three-nation tour to China, Vietnam and Laos
On 22 March, North Korean state media KCNA said that the country had sent its delegation from the ruling Workers’ Party of China led by Kim Song Nam for a three-nation tour to China, Vietnam and Laos. He is the alternate member of the Political Bureau and director of the International Department of the party’s Central Committee. On 21 March, the delegation arrived in Beijing. The Chinese state media reported that Kim met the fourth-ranking senior official in China’s Communist Party, Wang Huning, and the head of CCP’s International Liaison Department, Liu Jianchao. Wang said that China is willing to deepen its friendship, partnership and unity with North Korea for a peaceful and stable external environment. (“North Korea sends delegation to China, Vietnam, Laos, KCNA says,” Financial Express, 22 March 2024)