CHINA READER DAILY WIRE

INTERNAL
“Nationalist Crusades” by the Chinese netizens, an Opinion in The New York Times
On 26 March, an Opinion in The New York Times, titled, “Why Are China’s Nationalists Attacking the Country’s Heroes?” by Joy Dong and Vivian Wang, looked into the plague of unbridled nationalism trends in China. The op-ed stated that while the Chinese government is championing domestic companies, the efforts are being affected by the growing nationalist netzine threat to the business. The online army has taken on themselves to call out and punish those who hurt the nationalist sentiments, these largely include major public figures and business firms. These attacks are usually against the US are now attacking the crown jewels of China like Huawei, for allegedly being a secret admirer of Japan. This behaviour has been encouraged by the government, as they for “nationalist crusades”. A professor from North Carolina Yaoyao Dai said: “The government needs and wants to be the one that shapes the narrative. They cannot just give everyone this power to shape the narrative of who are ‘the people’ and who is ‘the enemy.’” The online crusades are also fuelled by the growing dissent in the population over economic malaise. Recently, there were attacks against the Nongfu Spring, beverage company, stating that they focus more on profit rather than the state, after the death of its rival company’s owner who was said to have economically supported his employees with benefits of houses and child care subsidies. A smear campaign was started against the only Chinese Nobel Prize winner for literature Mo Yan, who was accused of being anti-Mao, by depicting a turbulent 20th-century in China. (Joy Dong and Vivian Wang, “Why Are China’s Nationalists Attacking the Country’s Heroes?,” The New York Times, 26 March 2024)

China hosts Boao Forum for Asia discussing Asian economic outlook for 2024
On 25 March, China held the Boao Forum for Asia (BFA), in the Hainan Province. The forum consisted of participants from around the world discussing the regional challenges and the issue of trade protectionism behaviour with the rising geopolitical tensions. The forum projected substantial economic growth of up to 4.5 per cent in 2024. It stated that Asian integration in the economy remained unchanged. The report highlighted the contribution made by China to the global economic growth. The BFA was attended by 2,000 representatives from 60 countries. The forum released its annual report on the Asian Economic Outlook and Integration Progress and the second one on Sustainable development in Asia. The report outlined that: “In 2024, global economic turbulence and divergence will persist. Faced with a severe external environment, many Asian economies will also encounter significant internal challenges. Nevertheless, the region's economic growth and regional integration continue to show promising momentum.” (“China's economic prospects, opening-up pledges help global growth, stability as Boao Forum kicks off annual meeting,” Global Times, 26 March 2024)

SCIENCE & TECHNOLOGY
Apple iPhone sees a shipment decline of 33 per cent
On 26 March, Bloomberg reported on the declining Apple’s iPhone shipment in China. They reckoned that the shipment to China fell by 33 per cent in February, this showcases an extended slump in the demand for Apple’s most popular product. The figures by the China Academy of Information and Communications Technology show that foreign brands only shipped 2.4 million smartphones in February, a major chunk of it was by Apple. The February decline is the second consecutive decline when only 5.5 million units were shipped in January. The rising Huawei trend has taken a sizeable share of the Apple market in China, which this led to them offering rare discounts. The overall smartphone market has seen a decline showing the dwindling interest in consumers buying discretionary items amid economic woes. (“iPhone Shipments in China Fell 33% in February, State Data Show,” Bloomberg, 26 March 2024)

DEFENCE
Strategic Support Force: Nodal to People’s Liberation Army’s advancement, says an analysis in SCMP
On 27 March, South China Morning Post published an analysis, titled, “Strategic Support Force: China’s mission to win future wars hinges on this shadowy military branch,” by Amber Wang, which looked into the youngest Chinese military wing the “Strategic Support Force,” (SSF) founded in 2015. The SSF is a branch of the People’s Liberation Army that aims to expand its military capabilities by making use of outer space, and cyber and AI technology. The contingent is responsible for offering intelligence to all the forces in China. The PLA aims to build strategic capabilities in all emerging areas and to provide asymmetrical advantages as proposed by Chinese President Xi Jinping. The SSP branch relies heavily on innovation and AI technology and is playing a critical role in the preparation for “intelligence warfare” as the technologies advance, says the op-ed. The SSF oversees two departments, the Space Systems Department which takes care of satellite launches and training bases. The Space Department is tasked with providing intelligence support, space-based reconnaissance, and satellite navigation to help with military operations. The other department is the Network Systems Department, tasked with defending China from cyber-attacks, electromagnetic defence and offence and collecting intelligence by intercepting signals. The heavy reliance on technology can also be a bane for China and the US increasingly has imposed sanctions and curbed China’s access to these technologies. Regardless, the SSF will play a vital role in providing the Chinese military with critical intelligence. (Amber Wang, “Strategic Support Force: China’s mission to win future wars hinges on this shadowy military branch,” South China Morning Post, 27 March 2024)

CHINA & EAST ASIA
South Korean FM expresses concerns against the Chinese use of water cannons at Philippines civilian boats
On 26 March, the South Korean Ministry of Foreign Affairs issued their concerns regarding the conflict in the South China Sea and especially the recent confrontation between the Philippine and the Chinese vessels. The ministry expressed “grave concerns” regarding the Chinese use of the water cannons against the Philippines ships. It stated that it strokes further tensions and that it violated maritime rules and order in the South China Sea. The incident went as such the Philippines accused China of using water cannons against its civilian boats supplying troops at the Spratly Islands. The Island that has been largely inhabited is part of a major contention between the two countries, both claiming ownership of the archipelago. The South Korean Ministry of Foreign Affairs said: “These actions increase tensions in the South China Sea, a major international navigation route used by all countries, including Korea, and undermine efforts to maintain peace, stability, security and a rules-based maritime order.” (“South Korea has ‘grave concerns’ over China using water cannon against Philippine ships,” The Straits Times, 26 March 2024)

CHINA & SOUTHEAST ASIA
Vietnam’s “Bamboo Diplomacy” balancing China and US, says and analysis in SCMP
On 27 March, an analysis in the South China Morning Post looked into Vietnam’s “Bamboo Diplomacy,” which has balanced both US and China relations. Vietnam’s Foreign Minister Bui Thanh Son, attributed Vietnam’s bamboo diplomacy as being paramount in balancing both rival global actors, the US and China. Son said: “In 2023, Vietnam hosted both US President Joe Biden and Chinese President Xi Jinping – which means Vietnam wishes and can have good relations with all major powers, thanks to Vietnam’s bamboo diplomacy.” Son stated that while competition between these major powers is natural, conflict is not inevitable. Recently, Son met with top US office bearers US Secretary of State Antony Blinken and National Security Adviser Jake Sullivan. The visit showcased that Vietnam looks to assure its neighbours, allies and investors. And even more so now President Vo Van Thuong resigned from his post over corruption allegations. Son said: “The resignation of the president, I think, will not affect our foreign policy as well as our own [domestic] policy of economic development. We have collective leadership. We have a collective foreign policy. We have collective-decided economic-path development.” (Khushboo Razdan, “Vietnam minister credits ‘bamboo diplomacy’ for balancing nation’s relations with China and US,” South China Morning Post, 27 March 2024)

CHINA & THE PACIFIC
China and Nauru hold talks in Beijing
On 25 March, Chinese President Xi Jinping, and Nauruan President David Adeang held talks in Beijing. Xi notes Nauru’s decision to uphold the One China Principle and appreciates the restoration of diplomatic ties with China. He welcomes Nauru’s decision to sign the Belt and Road (BRI) document with China and is willing to deepen its cooperation in trade, investment, and infrastructure construction. Xi also said that China is ready to assist Nauru in addressing climate change under the framework of South-South cooperation. Adeang said that Nauru’s decision to restore ties with China was the right step in history and would open a ‘new chapter in the country’s national development and bilateral relations.’ He further said that Nauru is willing to participate in the BRI and to implement the Global Development Initiative, Global Security Initiative and Global Civilization Initiative. (“Chinese, Nauruan presidents hold talks for 1st time since resuming ties,” Xinhua, 25 March 2024)

CHINA & SOUTH ASIA
Suicide bomber ram vehicle carrying Chinese engineers killed in Pakistan
On 26 March, five Chinese engineers and one Pakistani driver were killed after a suicide bomber rammed into their vehicle convoy in northwest Pakistan. The regional police chief Mohammad Ali Gandapur said that the engineers were en route from Islamabad to their camp at the dam construction site in Dasu in the province of Khyber Pakhtunkhwa. So far no one has claimed any responsibility for the attack on 26 March. Chinese engineers have been assisting Pakistan with several projects as part of the China-Pakistan economic corridor (CPEC) under Beijing’s Belt and Road Initiative (BRI). Local police reported that the convoy carrying engineers belonged to the construction firm China Gezhouba Group Company working on the Dasu hydropower project. Pakistan faced a similar issue when they faced attacks in 2021. The Chinese embassy in Pakistan called for an investigation into the attack to ensure safety for the Chinese citizens. This attack comes as the newly elected Pakistani PM Shehbaz Sharif plans to visit Beijing next week. (“Six killed after suicide bomber rams convoy of Chinese engineers in Pakistan,” The Guardian, 26 March 2024)

India firmly supports the Philippines in upholding its national sovereignty, says EAM S Jaishankar
On 26 March, Indian External Affairs Minister (EAM) S Jaishankar, on his visit to Manila said, “I take this opportunity to firmly reiterate India’s support to the Philippines for upholding its national sovereignty.” He also expressed India’s interest in expanding cooperation in the areas of defence and security. He also said that the trust and comfort between the two countries are growing rapidly. Their meeting took place a day after the Chinese ambassador in Manila was summoned to convey the Philippines' concerns about China’s aggressive actions in the South China Sea. In his remarks, the Chinese Ministry of Foreign Affairs spokesperson Lin Jian said that the maritime disputes are bilateral and there is no role of third parties to interfere. Jaishankar also said that India places greater emphasis on Act East policy and Indo-Pacific vision and supports the ASEAN centrality position. (“Jaishankar backs the Philippines in the South China Sea, riles China,” The Times of India, 26 March 2024)

CHINA & AFRICA
China and Honduras extend wishes for 1st anniversary of their bilateral relations
On 26 March, Chinese President Xi Jinping and Honduran President Xiomara Castro exchanged congratulations over the first anniversary of their bilateral relations. Xi highlighted the new opening in their bilateral relations through establishing diplomatic ties in 2023 and the visit of Castro to China in June 2023. Xi appreciated Honduras' firm stance on the One China principle and their bilateral relations are the right step in history serving the fundamental interests of the two countries. He also reiterated China’s support to Honduras in all areas. Castro pointed out China as a civilizational nation and its importance for Honduras as a partner in its development. She also mentioned respecting the One China principle and is in favour of cementing ties with China for greater mutual respect. (“Xi, Honduran president exchange congratulations on 1st anniversary of ties,” Xinhua, 26 March 2024)

CHINA & AMERICAS
US aims to expand domestic lithium supply with reduced reliance on China, a commentary in VOA
On 26 March, according to a commentary in VOA, the US aimed to step up in increasing the domestic supply of lithium with reduced reliance on China for manufacturing batteries. This comes after the US Department of Energy announced a record conditional loan of USD 2.26 billion to American companies. According to DOE’s Loan Programs Office (LPO), the loan, if approved, will help Lithium Americas Corp. construct a lithium carbonate processing plant. This indicates that the locally sourced battery materials, especially the lithium carbonate from Thacker Pass will bring down the carbon footprint, transportation costs, and supply chain risks. It also said that the lithium reserves will support the production of batteries “for up to 800,000 electric vehicles (EVs) per year, saving 317 million gallons of gasoline per year.” A report by the Organization for Economic Co-operation and Development (OECD) in 2023 highlights that China increased restrictions on its exports of critical minerals ninefold between 2009 and 2020. Ellen R. Wald, a nonresident senior fellow with the Atlantic Council Global Energy Center says that the western countries spent lots of resources on developing raw materials but little attention to refining and processing of lithium as China dominates the supply chain. Chatham House reports that Chinese companies accounted for about 72 per cent of global lithium refining capacity in 2022. Wald mentions that China has an advantage and can restrict access to specialized lithium-ion batteries to the US as it wishes as the US defence industry is dependent on China for these batteries. (John Xie, “US Aims to Tap Domestic Lithium Supply Without Chinese Products,” VOA, 26 March 2024)

China initiates dispute settlement proceeding on EV against the US at WTO
On 26 March, the Chinese mission to the UN said that it had initiated a dispute settlement proceeding against the US World Trade Organization (WTO) to safeguard its interests in the electric vehicle industry. It justified its stance as it was contesting "discriminatory subsidies" under the U.S. Inflation Reduction Act (IRA), as the Chinese mission said that it led to the exclusion of goods from China and other WTO countries. It further added that the proceedings are meant “to safeguard the legitimate interests of the Chinese electric vehicle industry and to maintain a fair level playing field of competition for the global market.” U.S. Trade Representative Katherine Tai said that Washington has initiated a review of China's request for WTO consultations for IRA 2022 and its implementing measures. Defending the IRA, she said that the IRA is instrumental in promoting clean energy practices along with its allies and partners and accused China of engaging in unfair market policies. (“China opens WTO dispute against US subsidies to protect its EV industry,” The Straits Times, 27 March 2024)

Chinese President Xi Jinping meets US executives and academics
On 27 March, Chinese President Xi Jinping met US executives and academics in Beijing. The meeting was a follow-up to the November dinner that took place in San Francisco. Reuters reported that the attendees from the US side were the chief executive of US insurer Chubb (CBBN), Evan Greenberg, Stephen Orlins, president of the National Committee on US-China Relations, and Craig Allen, president of the US-China Business Council. The foreign CEOs raised concerns about Premier Li Qiang not meeting the delegation at the China Development Forum in Beijing on 24-25 March raising doubts about transparency. Foreign companies have been trying to address the issue with government officials over China’s excessive and harsh implementation of anti-espionage law, raids on consultancies and due diligence firms, and exit bans. (“China's President Xi meets US executives, academics in Beijing,” Reuters, 27 March 2024)

EAST ASIA & THE PACIFIC READER

EAST ASIA
BOJ rate hike leads to a steep drop in Japanese Yen
On 27 March, according to a commentary in Nikkei Asia, the Japanese yen dropped to a record low in 34 years, trading at 151.96 to the dollar after the Bank of Japan (BOJ) ended its negative interest rate policy. Japanese Finance Minister Shunichi Suzuki said that he would not rule out any measures and would take decisive action to address this steep fall. The report published by Nomura Securities indicates that the sudden rise in inflation of the price of goods will compel BOJ for additional interest rate hikes. Hirofumi Suzuki, the Chief Foreign Exchange strategist at Sumitomo Mitsui Banking Corp., said that according to the BOJ, a weak yen is advantageous for the Japanese economy, however, the increased volatility will impact the business environment. Experts predict that the BOJ could face increased pressure if the yen crosses beyond 155 in the second and third quarters of 2024. (Lisa Kim, “Japanese yen drops to lowest in 34 years despite BOJ rate hike,” Nikkei Asia, 27 March 2024)

Taiwan’s chip maker Advantech boosts investments in Malaysia, an Opinion in Nikkie Asia
On 27 March, according to an opinion in Nikkei Asia, Taiwanese industrial computer maker Advantech plans to boost investment in manufacturing and other operations in Malaysia. The company aims to create a regional hub to serve customers across Southeast Asia. Li reports that Advantech's computers and Internet of Things products are used in many industrial applications, from semiconductor manufacturing to high-speed railway systems. Due to the volatility in supply chain disruptions and increased political tensions, the company plans to diversify its operations in regional hubs to meet the demand. Vincent Chang, Advantech's managing director for Asia said that the company’s sales in Southeast Asia grew by 200 per cent in six to seven years due to the diversification of supply chains. Chang mentions that Malaysia is the best cost-effective option because it has a diverse culture and a high-quality workforce, which will benefit the company’s long-term strategy. He said that the changing market dynamics, such as the US-China trade war and the growing trend of the China+1 supply chain, have presented greater opportunities for growth for the company in emerging markets. (Lauly Li, “Taiwan's Advantech aims to turn Malaysia into Southeast Asia hub,” Nikkei Asia, 27 March 2024)