CHINA READER DAILY WIRE

INTERNAL
Beijing encourages ethnic Chinese to tell positive Chinese story, analysis in Al-Jazeera
On 23 March, according to a commentary in Al Jazeera, Beijing encouraged ethnic Chinese outside the country to unite and work with Chinese officials to spread positive messages about China. The government mentions that approximately 60 million people of Chinese origin live outside of the country except for Hong Kong, Macau, and Taiwan, claiming to be part of their own. President Xi Jinping highlighted the role of Chinese sons and daughters in leading the nation's rejuvenation. According to Professor Ian Chong Ja at the NUS, Xi’s words indicate that the CCP views ethnic Chinese expats as a source to mobilize support and advance Beijing’s interests. Chong also pointed out that the presence of Chinese expats is diverse, and their reactions will be mixed with the CCP’s external goals. Xi refers to both the Chinese citizens living abroad (Huaqiao) and ethnic Chinese with foreign nationalities (Huaren) as “members of the great Chinese family who would never forget their homeland and never deny the blood of the Chinese nation in their bodies.” Chong noted that Beijing’s diasporic nationalism has complicated the integration of ethnic Chinese and also has increased the suspicion and hatred towards Chinese minorities. (Frederik Kelter, “‘Insane’: Xi’s call for ethnic Chinese to tell Beijing’s story stirs anger,” Al Jazeera, 23 March 2024)

Chinese hospitals shutting down delivery wards amid declining birth rates, analysis in Al-Jazeera
On 24 March, according to an explainer in Al Jazeera, Chinese media reported the growing closure of obstetric departments or delivery wards nationwide due to the declining population for two consecutive years. The issue has been labelled in the press as “obstetric winter.” In February 2024, China’s National Bureau of Statistics announced that the country’s population fell by 2.08 million to 1.409 billion in 2023. The data further revealed that new births fell by 5.7 per cent to 9.02 million, and the country’s birth rate also reached a record low of 6.39 births per 1,000 people, down from 2022’s rate of 6.77 births per 1,000. This has been due to the implementation of the strict One Child policy in the 1980s, which was later reversed by the government in 2015. According to data from China’s National Health Commission, as reported by Reuters, the number of maternity hospitals fell from 807 to 793 between 2020 and 2021. Professor Deng Yong and Professor Wang Chongyu of the Beijing University of Chinese Medicine warned of the rapid abolition of the pediatric and gynaecological departments in China, leading to severe social problems in the country. Stuart Gietel-Basten, professor of social science at Hong Kong University of Science and Technology, indicates that the expectations among Chinese women have changed concerning giving birth to a child at a young age and also getting married due to increased living costs. (Kevin Doyle, “‘Obstetric winter’: Why are China’s hospitals shutting delivery wards?” Al Jazeera, 24 March 2024)

Chinese government tighten its grip on rewriting China’s Imperial Past, an Opinion in the WSJ
On 23 March, according to an opinion in The Wall Street Journal, the Chinese Communist Party (CCP), ruled by President Xi Jinping, tightened its grip on the country’s past to advance its goals. CCP derives its historical claims from the Qing era, which saved China from the “century of humiliation” caused by the opium wars. Xi issued the party to align Qing-era history with his vision for the future. According to Wong, Xi aims to strengthen China's Dream of a national renaissance and autocratic rule by revising the country’s past. This ensures the promotion of nationalistic narratives that depict the CCP as the sole guarantor of China’s inexorable rise. According to Pamela Kyle Crossley, a Qing expert at Dartmouth College, Xi rejects the portrayal of the Qing as an “empire of conquest” as they could encourage separatist sentiments in the borderland regions of Tibet and Xinjiang. Instead, he states that there were no conquests in Chinese history and there were only reunifications. (Chun Han Wong, “Xi Jinping’s Historians Can’t Stop Rewriting China’s Imperial Past,” The Wall Street Journal, 23 March 2024)

ECONOMY
China needs to reinvent itself for a new era of high-quality growth, says IMF Managing Director
On 24 March, the International Monetary Fund's Managing Director Kristalina Georgieva said, “China faces a fork in the road to rely on the policies that have worked in the past or reinvent itself for a new era of high-quality growth.” At the opening of the China Development Forum, officials said that China will meet its economic targets of 5 per cent in 2024 and has expressed its desire to support the country’s new productive forces. Regarding consumer-centred policy, Georgieva said that China needs to take decisive steps to complete unfinished housing and reduce the risk of mounting local government debt by boosting consumer spending. China’s FDI declined by 8 per cent in 2023 due to the increased tensions with the US and its allies. Apple CEO Tim Cook said to CGTN that China is opening up its economy to foreign businesses and the country’s suppliers have supported sustainable manufacturing for Apple. (“China must reinvent itself to turn economy around, says IMF's Georgieva,” Business Standard, 24 March 2024)

China’s economic slowdown impacting the sales of luxury brand Gucci among Chinese consumers, an Opinion The Economic Times
On 25 March, according to an opinion in The Economic Times, the fears of a Chinese economic slowdown have affected the sales of luxury brand Gucci among Chinese consumers. Experts note that the rising unemployment and property crisis have affected consumer confidence along with the deflationary concerns, which have fueled concerns about the Chinese economy. There has been a significant drop in the online sales of Gucci products in China due to minimalistic designs, which has reduced the appeal among Chinese consumers. The slowdown in the Chinese economy has affected the sale of other luxury brands than Gucci, like Swiss watches, while other companies such as Rolex, Hermes, Chanel, and Louis Vuitton saw double-digit growth in 2023. According to a report from Bain & Co., foreign luxury brands are trying to reduce their reliance on China as they forecast their growth to be single digits compared to 12 per cent growth in 2023. Angelito Perez Tan, Jr., co-founder and CEO of RTG Group Asia, said that the growing volatility in the Chinese market has forced them to look for alternative markets in India, Southeast Asia, and the Middle East. (Jennifer Creery, Shirley Zhao, and Andy Hoffman, “Gucci’s China shock reverberates across the luxury landscape,” The Economic Times, 25 March 2024)

Chinese Premier Li Qiang pledges to allow more FDI into China
On 24 March, Premier Li Qiang said in his opening remarks at the China Development Forum that he would pledge to bring in more overseas investors to invest in Chinese markets. He said that the country would focus on cultivating new productive forces in emerging industries such as biomanufacturing, artificial intelligence, aerospace technology, and electric vehicles. Data from the State Administration of Foreign Exchange shows that China accumulated FDI worth USD33 billion in 2023, which is 82 per cent less compared to 2022. Li acknowledged the growing concerns in China’s property sector and high local government debts and said that these problems are not serious. He also agreed to boost domestic demand in 2024, which includes reducing barriers to a unified domestic market and urbanizing its rural areas. (Aw Cheng Wei, “China’s Premier Li Qiang promises changes to woo overseas investors,” The Straits Times, 24 March 2024)

China’s Evergrande Group withdraws application for offshore debt restructuring plan
On 24 March, China’s Evergrande Group withdrew its applications for Chapter 15 of the offshore debt restructuring filed in the US. The Hong Kong Stock Exchange noted that the Evergrande Group, along with SJ and Tianji Holdings, had submitted their documents to exit from the debt restructuring plan on 22 March. Tianji and SJ are Evergrande Group's main overseas financing platforms. In August 2023, the Evergrande Group filed for offshore debt restructuring with a US court. However, in January 2024, the Hong Kong court ruled against the group and ordered them to liquidate their assets to repay the outstanding debts. Evergrande Group has defaulted in 2021 with liabilities up to USD 300 billion. (Jiahui Huang, “China Evergrande to Withdraw Offshore Debt-Restructuring Applications,” The Wall Street Journal, 24 March 2024)

SCIENCE & TECHNOLOGY
China’s new guidelines to ban the use of Intel and AMD chips in government computers, an analysis in The Financial Times
On 24 March, according to an analysis in the Financial Times, China introduced new guidelines that will ensure the removal of government PCs and servers in its efforts to replace foreign technology with domestic solutions. The new guideline also seeks to replace Microsoft’s Windows operating system and other foreign-made database software with domestic alternatives. It also aims to localize these efforts for the country’s state-owned enterprises. The latest purchase rules come after the growing tensions between the US and China and the former’s imposition of sanctions on Chinese companies and blocking the export of advanced chips and equipment to China. On 26 December 2023, the guideline was unveiled by the finance ministry and the Ministry of Industry and Information Technology (MIIT) and started implementing from 2024 onwards. According to the Financial Times, Beijing’s increased procurement of domestic products is a part of the national strategy for technological autarky in the military, government, and state sectors which the government refers to as xinchuang or “IT application innovation.” Analysts at Zheshang Securities estimate that China may require a budget of RMB 660bn (USD91bn) from 2023 to 2027 to replace the IT infrastructure in government, party organs, and eight major industries. (Ryan McMorrow, Nian Liu, and Qianer Liu, “China blocks use of Intel and AMD chips in government computers,” The Financial Times, 24 March 2024)

CHINA & TAIWAN
Former Taiwanese President Ma Ying-jeou plans to visit China for the second time
On 25 March, Reuters reported that the former Taiwan president Ma Ying-jeou plans to visit China for the second time in April. He plans to lead a group of students on a trip of 11 days to Beijing. In his presidential tenure from 2008 to 2016, Ma became the first former Taiwanese leader to visit China. He also intends to visit Guangdong's southern province and Shaanxi's northwestern province for greater student exchanges between the two sides. Ma remains one of the senior members of Taiwan's main opposition party, the Kuomintang (KMT), advocating for closer ties with China via dialogue. China considers Taiwan as part of its territory and views the current ruling Democratic Progressive Party as dangerous separatists. (“Former Taiwan president Ma to make second trip to China,” Reuters, 25 March 2024)

CHINA & EAST ASIA
“Hong Kong, as it was, is over. But it does not end there,” an Opinion in The Guardian on Hong Kong Article 23 
On 23 March, an Opinion was published in the Guardian, titled, “Lies, ideology and repression: China seals Hong Kong’s failed-state fate,” by Simon Tisdall who looked into the dire state of the once bustling economy and society of Hong Kong after the recent imposition of Article 23. Tisdall said farewell to the once vibrant and pulsating city of Hong Kong, stating that the once great financial business state has been brought to its heels, as Xi Jinping the President of China sucked out all the joy. Tisdall painted a picture by highlighting how one day randomly the Hong Kongers woke up to the pro-Chinese puppet regime approving the controversial National Security law, where any act could be seen as treason and a seditious act. The current head of the state John Lee of Hong Kong, saw an all-time low in his approval rating, as it hit a record low. This according to the author, triggered paranoia that further led to the current authorities opting for the measure. The op-ed called it a “shocking breach of faith,” as China pledged with the British colonial rule that they would respect Hong Kong’s autonomy and declared “one country two systems.” Tisdal ended by saying: “Hong Kong’s long goodbye is a cautionary tale for the modern age. A flawed but totemic success story crushed by outdated ideology, hyper-nationalism, and the new emperor of Beijing. Britain and its friends failed dismally to protect the former colony. Hong Kong, as it was, is over. But it does not end there.” (Simon Tisdall, “Lies, ideology and repression: China seals Hong Kong’s failed-state fate,” The Guardian, 23 March 2024)

CHINA & SOUTHEAST ASIA
“The Philippines repeatedly challenges China’s bottom line, China will continue to take resolute and decisive measures,” says Chinese Defence Ministry
On 24 March, the Chinese Ministry of National Defence’s spokesperson Wu Qian warned the Philippines against making remarks intensifying the conflict and refrain from all infringement and provocations in the South China Sea. This comes after the latest row between the countries, where the Philippines Coast Guards accused China of blocking their supply boat to the Second Thomas Shoal with water cannons. Wu said: “If the Philippines repeatedly challenges China’s bottom line, China will continue to take resolute and decisive measures to firmly safeguard its territorial sovereignty and maritime rights and interests.” The Chinese defence ministry stated that the Philippines Coast Guard intruded the area, despite multiple warnings, leading to China carrying out control obstruction and eviction according to the law. Wu, also stated that the incident was entirely provoked by the Philippines and that they handled it in a reasonable manner. (Amber Wang, “South China Sea: Beijing warns Philippines against ‘escalating situation’ after latest Second Thomas Shoal face-off,” South China Morning Post, 24 March 2024)

CHINA & AFRICA
“Stadium Diplomacy” China to build two stadiums in Tanzania and Kenya, an Analysis by SCMP
On 24 March, an analysis was published in the South China Morning Post, titled, “China’s latest African building contracts prove ‘stadium diplomacy’ is a winning formula,” by Jevans Nyabiage which looked into the recent China-Africa deal on building more stadiums. There are plans to construct two major stadiums in Tanzania and Kenya as part of their “stadium diplomacy,” informs Jevans. Tanzania signed a deal with the state-owned enterprise China Railway Construction Engineering Group (CRCEG) of USD 112 million, where they plan to build an arena in Arusha with 30,000 seats before the 2027 African Cup of Nations (Afcon). Kenya also signed a deal with China Road and Bridge Cooperation (CRBC) to build Nairobi’s Talanta Stadium and a 60,000-seater football arena. The Talanta Stadium will be built on a public-private partnership agreement and the Chinese company will be tolling the fee for the coming 27 years to recover its investment after which it will be handed to the government. The op-ed states that the two new stadiums are part of China’s strategy to influence the African government and the elite, China is not new to building stadiums and other infrastructure in Africa. According to the Global Times, a flagship Chinese newspaper, they have built more than 100 stadiums in Africa. Many believe that these are not only economic in nature but are part of China’s long-term strategy to boost diplomatic relations with African countries and foster interdependence. (“China’s latest African building contracts prove ‘stadium diplomacy’ is a winning formula,” South China Morning Post, 24 March 2024)

CHINA & EUROPE
UK Deputy Prime Minister Oliver Dowden to link 2021 cyber-attack on the electoral commission on China
On 24 March, British Deputy Prime Minister Oliver Dowden is set to address the Parliamentary gathering addressing the Chinese threat to their personal data. They are set to link the cyber-attacks on the country’s election to China. The claim made is that the attacks on the electoral watchdog, when the Election Commission of Britain saw a breach into their personal data in 2022. During this several MP’s private data were targeted by these cyber-attacks, reports BBC. The report also stated that hostile actors gained access to electoral registers and breached the emails and control system. It is now expected that the MP will link these attacks from China and lay out a plan of action to deal with it. In 2022, three MPs were specifically targeted as informed by BBC: “former Conservative leader Iain Duncan Smith, former minister Tim Laughton and the SNP's Stewart McDonald.” All three were part of the Inter-Parliamentary Alliance on China, a group that critically looked at Beijing’s activities. (James Gregory & Iain Watson, “China linked to UK electoral roll cyber-attacks, Dowden to say,” BBC, 25 March 2024)

China invites Italy’s President and Prime Minister to relaunch strategic ties after it withdrew from BRI
On 24 March, an analysis in the South China Morning Post, titled, “No longer in Belt and Road Initiative, Italy focuses on strategic ties with China, leaders invited to Beijing this year,” by  Ambrose Li, looked into Beijing’s invitation of top Italian diplomats to China. This invitation comes after Italy withdrew from the Chinese Belt and Road Initiative. Italian Ambassador to China, Massimo Ambrosetti stated that this backtracking has had “no impact” on their relationship as China invited the Italian President and Prime Minister to Beijing. China and Italy are set to mark their 20th anniversary and Amb Massimo believes that this is a testament to their positive relationship and their political willingness to keep their relationship at a strategic level. Additionally, the Italian government also invited Chinese EV giants BYD and Chery to invest in Italy. (“No longer in Belt and Road Initiative, Italy focuses on strategic ties with China, leaders invited to Beijing this year,” South China Morning Post, 24 March 2024)

CHINA & THE AMERICAS
“Mutually reinforced fear and animosity is what I call it,” exclusive coverage on the US-China relationship in SCMP
On 25 March, an exclusive edition in the South China Morning Post, titled, “‘Structural’ problem: top China scholar says US tensions will be ‘with us for a long time’,” by Dewey Sim, interviewed the founding director of the University of Hong Kong’s Centre on Contemporary China and the World Li Cheng. The interview looked into the deteriorating relations between China and the US. Cheng answered that this deterioration goes back to 2017 when China was becoming a rising threat to the US. The policy discussion argued that their previous engagements with Beijing did not yield results as the US planned. The US saw Russia and China as a revisionist country, stating that while Russia is a regional power, China has become a global power and therefore is a bigger and formidable challenge. Cheng when questioned about how he felt about this deteriorating relationship, he said that China's challenge was different as it was the only comprehensive challenge after WWII facing the US, where it included issues on economic, political, and science and technological levels. Another reason is the instability in their own country and that if the US’s economy and politics were in good shape the Chinese threat wouldn’t matter. The growing Chinese middle class and the smaller American middle class also stop them from reaping the benefits of economic globalization. When asked about the external tensions facing both countries, Cheng stated that this needs to be looked at from a global perspective with the two ongoing wars between Russia-Ukraine and Israel-Palestine. This raises questions about the possibility of a similar war extending to the South China Sea, Taiwana and Indo-China border, which would have devastating effects. Cheng was asked about how both countries are responsible for rising tensions, to which he said: “Mutually reinforced fear and animosity is what I call it,” China wants to maintain the status quo while the US pushes the envelope by supporting Taiwan, both sided blame each other where the US accused China of military mobilization and pressure on Taiwan. (by Dewey Sim, “Structural’ problem: top China scholar says US tensions will be ‘with us for a long time,” South China Morning Post, 25 March 2024)

EAST ASIA & THE PACIFIC READER
EAST ASIA
Medical professor join the doctor's strike in South Korea
On 25 March, The Guardian reported that in support of the trainee doctors the medical professors joined the protest. Some medical professors have decided to resign while others will be cutting back their hours to showcase their support for the trainee doctors. This comes against the South Korean government’s plans to increase the admission of trainee students in order to address the lack of doctors in rural areas. Medical Professors Association of Korea’s President, Kim Chang-soo informed that they would start scaling back from outpatients and only focus on emergency patients who are severely and need immediate attention. Kim said: “It is clear that increasing medical school admissions will not only ruin medical school education but cause our country’s healthcare system to collapse.” In light of the protest, the government announced that they would suspend the license of doctors who do not return to work while later they urged the doctors to seek a conciliatory approach and use flexible measures to solve the issue. The South Korean President Yoon’s office asked the Prime Minister to form a constructive consultative body. (“South Korea doctors’ strike widens as medical professors join protests,” The Guardian, 25 March 2024) 

Taiwan detects seven Chinese naval ships and five aircraft incursions
On 24 March, the Taiwanese Ministry of National Defence detected seven Chinese naval vessels and five Chinese aircraft near the Taiwan Strait. The Ministry of National Defence announced that the People’s Liberation Army’s aircraft entered the Southwest Air Defense Identification Zone (ADIZ). Seeing the incursion the Taiwanese armed forces deployed and monitored the situation to support an appropriate response. The statement read: “6 PLA aircraft and 8 PLAN vessels operating around Taiwan were detected up until 6 a.m. (UTC+8) today. 1 of the aircraft entered Taiwan's southwestern ADIZ. ROC Armed Forces have monitored the situation and employed CAP aircraft, Navy vessels, and coastal missile systems in response to the detected activities.” According to Taiwan News, in the month of March, Taiwan tracked 301 incursions by Chinese aircraft and 165 by Chinese naval vessels. Since 2020, the news stated that China has increased its “Gray zone tactics,” whereby one uses a series of steady attempts to achieve one’s sovereignty in the region without resorting to direct and sizeable force. (“Taiwan detects 7 Chinese naval ships, 5 military aircraft around nation,” The Economic Times, 25 March 2024