HIGHLIGHTS
INTERNAL
PDD’s use of Noncompete Agreements stifling former employees, says an opinion in The Wall Street Journal
On 31 March, The Wall Street Journal looked into the Noncompete Agreements used by the rising PDD company which also owns the world's most downloaded app Temu. The Op-ed is titled, “Chinese E-Commerce Giant Squeezes Workers With Noncompete Agreements,” by Shen Lu and Raffaele Huang. Job at PDD Holding is highly sought after as they provide a handsome package and lift the resume of its employees. While working includes gruelling long hours of work, what happens after one leaves the company is worse.  The company has been using the noncompete agreement to file against its former employees. The noncompete agreement aims at thwarting competition that can become a potential rival after leaving the company, it also aims to protect company secrets.  The company imposes hefty penalties through this agreement. One instance the op-ed notes is the one small business selling weight loss supplements was sued with USD 34.9 billion. PDD claims that they use this in a limited and responsible manner. PDD filed 110 employment-related lawsuits in the past five years, out of which 15 per cent were on noncompete agreements. Temu is also accused of outsourcing spying on its previous midlevel managers and their career trajectories. The op-ed also informed that the employees are further discouraged from sharing their names and socializing at work. The blatant use of Noncompete agreements has stifled the growth and prospects of smaller businesses. (Shen Lu and Raffaele Huang, “Chinese E-Commerce Giant Squeezes Workers With Noncompete Agreements,” The Wall Street Journal, 01 April 2024)

CHINA & EAST ASIA
Japanese lawmakers push for US-Japan steel deal to deter Chinese dominance
On 01 April, Bloomberg reported on the statements made by the Japanese lawmaker on the US-Japan deal for the steel industry to deter Chinese dominance. A senior Japanese ruling party lawmaker Akira Amari suggested that the Nippon Steel Corp. of Japan's accession of the United States Steel Corp. would benefit both countries to further economic ties and in turn, also curb Chinese dominance in the field of steel manufacturing. The USD 14.1 billion deal will be useful and a win-win for both companies and the larger motive of the country. Amari said: “This deal would be a symbol of Japan-US cooperation as allies because we would be able to confront China’s rising technological capability.” The United Steelworker Union and Trump have spoken against the deal. Amari believes that without this merger the US and Japan will lose to China as they dominate the supply chain with their cheap excessive dumping and without weeding out competition. He also iterated that Japan has no intention of making this a political issue or even interfering in the US presidential elections. Amari suggested that the best way would be to let the companies sort out the differences and misunderstandings by themselves. (Yoshiaki Nohara and Yuki Hagiwara, “Japanese Lawmaker Says US Steel Deal Would Help Counter China Risks,” Bloomberg, 01 April 2024)
 

CHINA READER DAILY WIRE 
ECONOMY
China’s factory manufacturing rose to 50.8, says a report by NBS
On 31 March, the Chinese National Bureau of Statistics (NBS) revealed that there has been an increase in manufacturing activities. This happened for the first time since September 2023. The manufacturing purchasing index rose by 50.8 from 49.1 in February. They have followed their forecast of 50.1 and beat it. This shows a sign of recovering and stabilizing the economy of China. The Purchasing Managers' Index (PMI) looks into the prevailing economic trends of manufacturing and service sectors. This rise in PMI was largely aided by the production rise of 52.2 from 49.8 last February. While there is a hike the producer's gate price keeps on falling. This rise also comes in light of the Chinese government focusing on recovering its economy as it aims for a 5 per cent GDP rise. (“China Factory Activity Expands for First Time in Six Months,” Bloomberg, 31 March 2024 )

Chinese real-estate prices see a 0.27 per cent hike, says China Index Academy
On 01 April, Reuters looked into a report by the China Index Academy, which found that the new home prices in China saw an exponential hike. The report was by a private firm which highlighted that the average prices of homes across 100 cities rose by 0.27 per cent in March. This has been the biggest hike in two and a half years, that is July 2021. In February, they saw a 0.14 per cent hike, and the prices of the real estate are rising month on month. China is facing a crippling real-estate crisis that has been the pillar of its economy. There has been a regulatory crackdown against the high-profit property giants, which has triggered a liquidity crisis among these Chinese companies. With rise in the property prices, the Chinese government are easing regulations to buy houses, to encourage by removing the restriction on people from buying houses within three years of their divorce. Shanghai saw the biggest price hike with a 1.09 per cent rise. As the prices rose the sale value of these houses also plunged to 49.0 per cent. (“China's new home prices rise at fastest pace in over 2-1/2 years, survey shows,” Reuters, 01 April 2024)

CHINA & TAIWAN
Taiwan’s differential naturalization law discriminatory against Chinese spouses, says an opinion in The Strait Times
On 30 March, an Opinion in The Straits Times, titled, “Proposal to loosen naturalization laws for Chinese spouses in Taiwan sparks debate,” by Yip Wai Yee looked into the issue of discriminatory naturalization law in Taiwan against Chinese spouses. There has been an issue of differing naturalization rules against Chinese spouses in Taiwan from spouses from other countries. Kuomintang (KMT) proposed a bill to shorten the time against Chinese spouses from six to four years, making it equal to other countries. The other opposition party Taiwan People’s Party also expressed its support for the bill stating that the Island is a “society of immigrants,” and that as long as they live in Taiwan and recognize themselves as Taiwanese then they are. DPP the current ruling government responded that we keep seeing China’s encroachment towards Taiwan and why has KMT been pushing to propose a policy that would hurt Taiwanese sentiments. Taiwan Association of University Professors Dr Chen Li-fu said: “They cannot say that they want to live in Taiwan, have their household registration here… vote in presidential elections, while at the same time continue to be Chinese citizens. This is just wrong,” and that they would continue to be a national risk even after they receive citizenship. (Yip Wai Yee, “Proposal to ease naturalisation laws for Chinese spouses in Taiwan sparks debate,” The Straits Times, 30 March 2024 )

CHINA & EAST ASIA
Hong Kong ports diminishing popularity to Chinese ports, says an opinion in The Financial Times
On 01 April, The Financial Times published an opinion titled, “Hong Kong’s port loses ground as exporters pivot to mainland China,” by Chan Ho-him, William Langley and Andy Lin looking into the loss of Hong Kong port popularity as it loses to its rival China and Southeast Asian ports. The containers that went through the Hong Kong port were at 14 per cent, this was the biggest decline in the shipping of one the world’s biggest ports. Hong Kong’s port is the world’s 10th largest port and its deepwater port at the Pearl River Delta has made it a sought-after gateway. Shippers are now preferring Chinese ports due to more attractive options and their improved capacity and capability. Some even get incentive by the government and therefore are able to provide a service offer that is much cheaper than that of Hong Kong. (Chan Ho-him, William Langley and Andy Lin, “Hong Kong’s port loses ground as exporters pivot to mainland China,” The Financial Times, 01 April 2024)

CHINA & SOUTHEAST ASIA
Philippines President ordered to strengthen maritime capabilities to ward off tensions in the South China Sea
On 31 March, Reuters reported on Philippine President Ferdinand Marcos Jr plans to expedite maritime security in the South China Sea. He ordered his government to strengthen maritime coordination and security as they face serious challenges to their peace and territorial integrity with China acting as an aggressor. The order agrees on bilateral maritime confrontation and mutual accusation over the disputed parts of the South China Sea. These actions can be seen in response to the recent Chinese coast guards using water cannons against the Philippines supply boats to the Thomas Shoal. Marcos said: “Despite efforts to promote stability and security in our maritime domain, the Philippines continues to confront a range of serious challenges that threaten territorial integrity, but also the peaceful existence of Filipinos.” His orders contained the need to reorganize and expand their maritime council by adding a security advisor, solicitor general, National Intelligence Coordinating Agency chief and a special task force for the South China Sea. The National Maritime Council will be central to formulating strategies to ensure a “unified, coordinated” framework for maritime security. (“Philippines boosts maritime security as China tension rises,” Reuters, 31 March 2024)

Chinese naval ships spotted at Cambodian Ream naval base, reports Nikkie Asia
On 01 April, Nikkie Asia reported the presence of the Chinese Navy in the Cambodian Ream naval base. Nikkie Aisa believes that at least two vessels were found in the vicinity of the facility. The Cambodian base has been upgraded with the financial assistance of China. Before this the first Chinese presence was noted in December 2023 and the latest was on 20 March 2024. The US has expressed concerns that the Chinese are building a base for its exclusive use. Nikkie Asia obtained images of one Chinese vessel called the Wenshan. The base is strategic as it is located near the Gulf of Thailand and has been frequently used by the Cambodians to access the South China Sea. The U.S. assistant secretary of state Daniel Kritenbrink, in February met with the Cambodian Prime Minister Hun Manet and expressed serious concerns against the Chinese military activities near the Ream base and its involvement in the construction of the base. The ongoing speculation stated that the Cambodian state is granting Chinese presence in the Ream in exchange for renovation of the naval base. (Yuji Nitta, “Chinese warships spotted again at Cambodia naval base,” Nikkie Asia, 01 April 2024)

CHINA & SOUTH ASIA
China renames 30 more places to assert its claims over Arunachal Pradesh
On 30 March, China’s Ministry of Civil Affairs published the latest standardized names for 30 places in Arunachal Pradesh to assert its claims amid the ongoing territorial dispute. China refers to the region as Zangnan and says it is a part of the Tibet Autonomous region. The renaming covered 11 residential areas, 12 mountains, four rivers, one lake, one mountain pass, and a piece of land in Mandarin Chinese. The Ministry also included detailed latitude and longitude and a high-resolution map. Wang notes that the new list includes more parts of the disputed area than the three previous renaming since 2017. Wang also notes China’s recent protest against PM Modi’s visit to Arunachal Pradesh and India's response back, saying that Beijing’s claims are absurd. China officials agreed to reach a solution acceptable to both sides and to promote a peaceful settlement of the border situation into a normalized phased control and management. (Orange Wang, “China asserts claim to Indian-held Arunachal Pradesh in latest list of place names,” South China Morning Post, 31 March 2024)

CHINA & EUROPE
China opposes the visit of UK lawmakers to Taiwan, says Global Times 
On 31 March, Global Times reported China’s opposition to the ongoing visit of some Labour Party members of the House of Lords and MP to Taiwan, saying that it violates the One China principle and intervention in China’s internal affairs. The visit comes after the UK accused China of cyberespionage and criticized China for implementing Article 23 legislation in Hong Kong and the South China Sea issue. Experts note the UK’s intent to create a political manoeuvre to create a bargaining chip against China. The seven-member delegation was led by Lord Sonny Leong, co-chair of the "Labor Friends of Taiwan." On 30 March, the delegation arrived in Taiwan to meet Tsai Ing-wen to discuss trade and business relations and technological innovation between the two sides. The visit also comes after the UK’s Foreign Secretary David Cameron issued a warning on China’s blockade of Taiwan and its crippling impact on the global economy with multiple threats arising from China in the form of cyber-espionage attacking the British democratic institutions. (“China strongly opposes, condemns provocative visit of UK politicians to the island of Taiwan,” Global Times, 31 March 2024)

Dutch software company Datenna is vital in screening Chinese investments, says an Opinion in SCMP 
On 31 March, according to an opinion in the South China Morning Post, Datenna, a software company based in the Netherlands, uses open-source intelligence to provide service to governments for policy decisions. The company does not work with private businesses and only works with state governments. In an interview with chief executive Jaap van Etten of Dattena with the South China Morning Post, he said the company’s software can track “an incredibly vast array of detail, including intricate details of over 45 million corporate entities and research institutes within China.” Etten also said the company’s software provides valuable insights into China’s techno-economic landscape. Finbarr mentions that any government with software access can gain valuable information to detect whether or not any Chinese company investing in Europe has any military connections. This is because the China issue has been frequently discussed in the EU, and EU companies are sharing concerns about vague data transfer rules in China, posing severe operational and compliance challenges. (Finbarr Bermingham, “The Dutch software company that could shape EU-China relations for decades,” South China Morning Post, 31 March 2024)

Conservative party’s immigration policies risk UK universities over-reliance on China, warns former universities minister
On 31 March, according to a commentary in The Guardian, former universities minister Chris Skidmore warned the Conservative party’s immigration policies risking UK universities becoming increasingly over-reliant on China to avoid a financial crisis. Richard notes that around 25 per cent of the tuition fees at top British universities come from China. Chris resigned as the Conservative MP in 2023. He said that the UK government’s policy on restrictions in issuing international student visas and the recent reversal of graduation work visas threatened the government’s own education strategy. In March 2023, Home Secretary James Cleverly said the graduate work visa was considered as evidence of abuse. Skidmore also noted that the government’s policy measures are seen as an election issue and will be counterproductive to the UK. The International Higher Education Commission, led by Skidmore himself, reports that the UK is excessively reliant on China for student recruitment. Russel Group reports that recent changes in the government’s policy on banning postgraduate taught students bringing dependents are having an impact on international student numbers, thereby threatening diversification efforts and sectors’ financial resilience. (Richard Adams, “Tory immigration policies risk over-reliance on Chinese students, ex-universities minister warns,” The Guardian, 31 March 2024)

CHINA & THE AMERICAS
China strongly objects to the US's latest revised chip export rules, says Chinese Ministry of Commerce
On 01 April, China strongly objected to the latest chip export revision by the US, saying it would disrupt the global semiconductor market and cooperation between the companies. China’s Ministry of Commerce said that the recent rules revision comes within six months of the rules being introduced on 17 October 2023. It also blamed the US for overstretching the national security concept and creating obstacles between Chinese and American companies. The Ministry also indicated China’s desire and willingness to work with other countries to promote the security and stability of the global semiconductor industrial supply chain. (“China strongly opposes revised U.S. chip export restrictions,” Xinhua, 01 April 2024)

CHINA & THE PACIFIC
Australia offers permanent residency to 680 Hongkongers 
On 01 April, Australia offered permanent residency to 680 Hongkongers for the second straight year as part of the immigration scheme introduced after Beijing imposed the national security law in 2020. Australia’s Department of Home Affairs said that the visas were granted between March and February 2024, double the 370 visas offered in 2023. The Australian government said Hongkongers applying for this scheme would be exempted from tougher new English language requirements. Under the bespoke scheme introduced in 2022, passport holders from Hong Kong and British nationals (overseas) who have graduated in Australia and worked in the country for three or four years are eligible for permanent residency. Jane Poon, a leader of the community group Australia-Hong Kong Link said that the new age limit introduced by the government for permanent residency had worried many Hong Kongers in Australia over the 30s. (William Yiu, “Australia grants permanent residency to 680 Hongkongers in second year of bespoke migration scheme, nearly double first intake,” South China Morning Post, 01 April 2024)

 

EAST ASIA & THE PACIFIC READER
 

EAST ASIA
South Korean President Yoon to continue with its quota increase plan in medical colleges 
On 01 April, South Korean President Yoon Suk Yeol refused to budge from his plans to increase the number of seats for medical students by 2,000 amidst the standoff with the doctors for more than a month. Yoon said that the additional 2000 seats are minimum and will prevent the shortages and medical challenges due to an ageing society. Steven notes increased escalation as doctors will reduce their working hours due to overwork caused by the absence of trainee doctors. President Yoon said that he intends to conduct more negotiations with the doctors if they come up with an appropriate plan. He blamed the 90 per cent of trainee doctors for abandoning their responsibility to patients by leaving their posts. According to RealMeter, the doctor's walkouts were a rare political boon for President Yoon, who has faced low popularity throughout his term. (Steven Borowiec, “South Korea's Yoon doubles down on contentious doctor quota plan,” Nikkei Asia, 01 April 2024)

Spycams discovered at 40 polling locations across South Korea
On 30 March, according to the officials from the Nonhyeon Police Station in Incheon, illegal spycams were discovered at 40 locations nationwide, including polling stations and vote-counting venues, ahead of the 10 April general election. On 29 March, the police arrested a suspect on 28 March for installing cameras inside the polling stations in Incheon and Yangsan, South Gyeongsang Province. The suspect justified that he was worried about the disparities between early and main voting outcomes. Early voting for the general elections will occur on 5 to 6 April. The Ministry of Interior and Safety initially reported that illegal cameras had been installed in 26 places. However, the later investigation by the police led to the disclosure of 14 more locations. On 29 March, the National Election Commission (NEC) said it was conducting emergency inspections of early voting stations with the Ministry of Interior and Safety and local governments for any spy cameras in the poll stations. (“South Korea’s police uncover spycams at 40 polling, ballot counting locations,” The Straits Times, 01 April 2024)

Japanese Kobayashi factory investigated after five deaths from the supplements
On 30 March, the Ministry of Health, Labour and Welfare and the officials of the city of Osaka jointly searched the Kobayashi Pharmaceutical factory after the reports of five deaths linked to the dietary supplements. The inspection team found the supplements containing Beni-Koji red yeast, which was suspected of having caused health damage. NHK reports that the product has been stopped for manufacturing until December 2023 due to ageing facilities. On 29 March, Kobayashi said that with the reports of kidney disease linked to the products, they have started conducting an investigation into a suspected link between the products and their effects on the kidneys. On 28 March, health officials reported 114 people were hospitalized and five died after the intake of supplements. On 26 March, Japanese Chief Cabinet Secretary Yoshimasa Hayashi criticized the company for a two-month delay in announcing the negative health impact of its products. (“Kobayashi factory searched over deaths possibly linked to supplements,” The Straits Times, 30 March 2024)