HIGHLIGHTS
INTERNAL
China faces massive demographic crisis, says an opinion in BBC
On 03 April, according to an opinion on BBC, Laura Bicker stated that China faces a massive demographic crisis with the economic slowdown, shrinking government benefits, and the adverse effects of the decades-long one-child policy. Laura reports that China will comprise 300 million people aged above 50 to 60 years will be out of the workforce, which is equal to the population of the US. The country faces acute pension shortages for the social care of elderly people. Laura mentions that the rapid economic growth led to youth migrating away from their parents, leaving them alone to take care of government pensions. According to the 2019 estimates by the state-run Chinese Academy of Sciences, China will run out of its pension funds by 2035. According to Laura, the demographic problem and the economic crisis will force China to increase the retirement age, which at present is 60 for men, 55 for white-collar women, and 50 for working-class women, the lowest in the world. Laura notes that Beijing has recently been pressuring private companies to ramp up the setting up of daycare centers and wards for the elderly, which has been facing losses since its operations. (Laura Bicker, “China's ageing population: A demographic crisis is unfolding for Xi,” BBC, 03 April 2024)

ECONOMY
China organizes International Import Expo event to boost investor's confidence
On 04 April, Xinhua reported of China International Import Expo (CIIE) event being held in southwest China's Chongqing Municipality from 01 to 03 April to boost foreign investors' confidence in the country’s domestic market. The event’s theme focused on “To Boost Dual Circulation by Introducing More Foreign Investment” and aimed to attract prominent companies and representatives from multinationals and investment promotion agencies. Senior Vice President of Qualcomm Qian Kun said that the company aims to strengthen its collaboration with Chongqing in the areas of 5G and terminal side AI. Xinhua notes that Qualcomm’s growing interest reflects foreign companies' desire to explore Western China’s markets. According to government statistics, there has been an increase of 30.49 per cent in the creation of new foreign companies in Chongqing in 2023. Similarly, it has been found in Shaanxi Province in northwest China. Experts like Takeo Keizo and Tino Zeiske note China’s huge market potential, especially in western China, offering huge investment opportunities for foreign companies. This is followed by the government’s increased focus on developing new quality productive forces to attract foreign capital in other parts of the country. (“Economic Watch: Foreign investors continue expansion in western China,” Xinhua, 04 April 2024)

CHINA & THE AMERICAS
China targeted Canadian politicians, says a report in The New York Times
On 03 April, a report in The New York Times revealed the ongoing attempts by the Chinese government to target Canadian politicians who are opponents of China. It shows the media campaign of the Chinese government to spread false narratives about the candidates and encourage the Canadian public to vote against them. The intelligence reports mention China’s intervention in Canada’s general elections in 2021 and the vulnerability of the country’s democratic institutions. This comes after Canadian politicians criticized China for its human rights record. The Chinese embassy had denied its interference in Canadian elections. Onishi reports that the Chinese government opposed Conservative party members as they took a hard stance on China. On 03 April, Jenny Kwan, a veteran Parliament member from Vancouver, testified of Chinese government interference through its diaspora communities. (Norimitsu Onishi, “Canadian Politicians Were Targeted by China in 2021,” Report Says,” The New York Times, 03 April 2024)

CHINA READER DAILY WIRE 
INTERNAL
Storm wind hit Southern China, killing seven people
On 03 April, Reuters reported that stormy winds hit China’s southern Jiangxi province on 31 March, killing around seven people. The Jiangxi provincial emergency flood control headquarters reported that extreme weather had affected nine cities, including Nanchang and Jiujiang, with 93,000 people in 54 counties. The local officials reported that 552 had to be evacuated in an emergency, and 2,751 houses suffered damages, leading to total damage losses amounting to 150 million yuan (USD21 million). The local authorities had issued an orange alert for severe weather warning throughout Southern China for 04 April. (“People blown from apartments as typhoon-like winds ravage southern China,” Reuters, 03 April 2024)

CCP controls media to convey positive China story, says an opinion in Al Jazeera
On 04 April, according to an opinion in Al Jazeera, Frederik mentioned how the Chinese government uses censorship to project the positive side of China’s story. Editors are required to check in with censors every few hours, and certain terminology has been changed to align with the preferred narrative of the Chinese Communist Party (CCP), including referring to Tibet as “Xizang.” Frederik mentions how the employees of the Sixth Tone mention how the articles have been removed and phrases censored on a massive scale across the outlet’s archives. Frederik also mentions how the CCP uses the large audience base of Sixth Tone to control them by promoting the positive side of China’s story. However, some experts mention that such an approach hinders the overall reflection of socio-economic issues that the common people face in China. Shaoyu Yuan, a scholar of Chinese studies at Rutger’s University, notes that the CCP intends to focus more on aligning content with party ideology and government policy and less on editorial independence. Frederik mentions that the media environment was restricted with Xi’s ascendence to power in 2013, which is reflected in the Freedom House’s 2023 report, where China was rated as “not free,” scoring nine out of 100. (Frederik Kelter, “Media feel pressure to tell ‘positive’ China story as party tightens grip,” Al Jazeera, 04 April 2024)

China’s Central Financial Commission lays down a plan to regulate the financial industry
On 03 April, according to an article published by Study Times in South China Morning Post, China’s Central Financial Commission (CFC), designated to regulate the sector, laid out its vision for its financial sector. This plan aims to achieve national objectives like sustainable growth and advancement in the global tech race. The article mentioned China’s cyclical and aggregate problems in its economic development and resolved them by promoting financial development through supply-side structural reform. Chen notes that China’s 461 trillion yuan (USD 63.7 trillion) play a leading role in the country’s economic growth, which was mentioned by Xi’s recent remarks on making China a financial superpower. Chen mentions that the presence of foreign players in China’s banking industry is around one per cent. CEIBS’ Zhu said that China’s financial reforms focus on generalities but lack specifics to drive the financial sector’s growth. (Frank Chen, “China’s Communist Party finance organ draws institutional road map for the sector,” South China Morning Post, 04 April 2024)

CHINA & EAST ASIA
South Korean companies face intense competition in Vietnam, says an interview in Nikkei Asia
On 04 April, according to an interview in Nikkei Asia, South Korean companies such as Samsung Electronics, LG, etc., faced stiff competition from Chinese companies in Vietnam, which is becoming a critical manufacturing hub in global supply chains. Representative of the Korea Chamber of Commerce and Industry (KCCI) Kim Hyong-mo said that despite leading in investments in Vietnam since 1988 with USD 85.8 billion, Korea faces intense competition from China. In 2023, South Korea ranked fourth in FDI in Vietnam, behind Hong Kong, China, and Singapore. Kim added that due to the slowdown in the global economy, South Korean companies are reluctant to invest in Vietnam due to increased labour costs. He further said that Vietnam’s open trade and investment environment, geopolitical advantages, and domestic political stability have made it an attractive country for FDI. He mentioned the reasons behind the slowing FDI in Vietnam, including the rising minimum wage, slow policy decision-making by the government, and lack of infrastructure, especially electricity. Besides, Vietnam’s embrace of the global minimum corporate tax rate of 15 per cent hurts its prospects as a major investment destination. (Toyoaki Fujiwara, “South Korean firms in Vietnam face growing competition with China,” Nikkei Asia, 04 April 2024)

CHINA & SOUTHASIA 
India and China ongoing talks to continue, says Defense Minister Rajnath Singh
On 02 April, India’s Defense Minister Rajnath Singh said: “Indian troops are standing “firm,” and the ongoing talks between the two sides will continue” for finding a “peaceful resolution to the India-China military face-off in Eastern Ladakh.” Also, he referred to the growing use of proxy warfare by adversaries and the need for synergy between the CAPF police forces, and the Army to tackle terrorism in Jammu and Kashmir. Addressing the senior Army officers at the Army Commanders’ Conference, Singh said, “Cyber, information, communication, trade, and finance have all become an inseparable part of future conflicts. This necessitates that Armed Forces will have to consider all these facets while planning and formulating strategies.” The conference is an apex-level biannual event that deliberates upon the present security scenarios and challenges for overall security. (“India-China face-off: De-escalation way forward, talks will continue, says Rajnath Singh,” The Indian Express, 04 April 2024)

CHINA & THE AMERICAS
US questions Microsoft for security breach leading to Chinese hacking
On 02 April, The Guardian mentioned the report issued by the US Cyber Safety Review Board, saying that Microsoft corporate security and transparency has conducted multiple errors that facilitated Chinese cyber operators to break into the email accounts of senior US officials, including Commerce Secretary Gina Raimondo. The Board was created in 2021 as per the executive orders of the US President. The report concluded that Microsoft’s security culture was inadequate and needs a complete overhaul as the company’s products provide essential services that are critical to national security. The board said that the cyber intrusion which was detected in June 2023 was preventable. In response, Microsoft said that it would continue to improve its systems against any potential cyber intrusions. The board, headed by Homeland Security Secretary Alejandro Mayorkas, blamed Microsoft for the inaccurate display of public statements, and it had not updated the information until March 2024. The board recommended rapid cultural change to ensure that fundamental security-oriented reforms are implemented across the company and its products. (“US reprimands Microsoft for security failures that allowed Chinese hack,” The Guardian, 03 April 2024)

Chinese Canadian parliamentarian testifies against getting foreign Chinese students to vote
On 02 April, Chinese Canadian Parliamentarian Han Dong testified at a public hearing against allegations of collaborating with the Chinese government and using High School students from China to gain votes. Han Dong stated that he did seek support from the students but had no idea about who chartered the us for the Chinese students. The Canadian intelligence report found that there was a proxy agent in the Chinese Consulate who threatened students and used false documents to get them to vote. According to Canadian law, all students over the age of 14 can register and vote as long as they show proof that they are part of the electoral district. Dong’s testimony is part of the ongoing investigation going on in Canada on foreign interference during the 2019 and 2021 elections. While Dong denied all accusations of Chinese government interference, he also said though there is no evidence, it is “possible.” The lawmakers noted that any foreign students who come to Canada for a one-year program can vote, and any authoritarian governments can coerce these students. (Norimitsu Onishi, “Canadian Lawmaker Testifies Chinese Students Were Bused In to Elect Him,” The News York Times, 02 April 2024)

EAST ASIA & THE PACIFIC READER
EAST ASIA
Pro-Taiwan US envoy to head the American Institute in Taiwan
On 04 April, The Straits Times reported a pro-Taiwan envoy to be appointed as the head of the American Institute in Taiwan (AIT). AIT is responsible for handling relations between Taiwan and the US as there is no official relation established. Like other countries, the US also does not officially recognize Taiwan, due to China's claims. But it has established a steady relationship with the Island nation, by providing arms and being an international supporter. It is reckoned that Raymond Greene is set to become the director of AIT, he is seen as a staunch supporter of Taiwan. Greene previously said about Taiwan: “The United States no longer sees Taiwan as a 'problem' in our relations with China, we see it as an opportunity to advance our shared vision for a free and open Indo-Pacific and also as a beacon to peoples around the world who aspire for a more just, safe, prosperous, and democratic world.” (“‘Staunch friend’ of Taiwan to become top US diplomat in Taipei, sources say,” The Straits Times, 04 April 2024)

Japan is pro-active in supporting its national interest in the South China Sea, says an opinion in VOA
On 03 April, an opinion in VOA, titled “Japan seeks to defend national interests in the South China Sea,” by Chermaine Lee looks into how Japan seeks to bolster its National interest in the South China Sea by inching closer to the Philippines. A trilateral meeting is set to start on 11 April between Japan, Philippines and the US. The countries aim to discuss robust military roles in the Asia-Pacific region. For the Philippines, Japan is the second most important partner in safeguarding its claims in the South China Sea, after the US. As both countries have a mutual stake at play, the Philippines find this meeting beneficial. According to the professor at the Asia-Pacific Center for Security Studies Alexander Vuving, Japan is now taking a more proactive role in defending its national interest and not only depending on the US. (Chermaine Lee, “Japan seeks to defend national interests in the South China Sea,” VOA, 03 April 2024)

Japan struck with 6 magnitude earthquake
On 04 April, the Japan Meteorological Agency informed that a 6-magnitude earthquake struck north-eastern Japan’s Fukushima region. There were no reports of damage or injury after the earthquake. At the epicentre, the depth of the earthquake was 40 km. Japan is one of the world's most earthquake-prone and tectonically active countries. It has witnessed many earthquakes and therefore it has strict building regulations and standards to make it earthquake-resistant. Japan is home to around 125 million people and experiences 1,500 jolts every year, while most go undetected. (“6-magnitude quake shakes north-east Japan; no tsunami alert,” The Straits Times, 04 April 2024 )

South Korean population looks to the Reform Korea Party over the People Power Party (PPP)
On 04 April, The Straits Times reported on the growing popularity of former justice minister Cho Kuk. An increasing number of South Korean population are in support of the once disgraced politician facing jail term. Cho is part of the Reform Korea Party and has been fiercely promoting the anti-government narrative. This comes as South Korean President Yoon-Suk-Yeol’s approval rating is at an all-time low with the scandals, rising inflation and the ongoing doctor's strikes. Cho’s rally has been largely anti-Yoon where he said: “I am going to make President Yoon first a lame duck, then a dead duck.” The political analysts believe that Cho’s arty can garner 30 per cent of the vote and therefore will be able to get 15 seats in the parliament, this would prevent PPP from forming a majority government for the first time since 2016. (“‘Angry’ South Korean voters turn to disgraced ex-ministers fledgling protest party,” The Straits Times, 04 April 2024)

Semiconductor supply chain saw a minor hiccup as Taiwan was hit by an earthquake
On 03 April, The Straits Times reported on the disruption of the semiconductor supply chain after Taiwan was hit by an earthquake. The Chipmakers had to halt the operation of TSMC and UMC to check and inspect the facilities. While most of the firms were not close to the earthquake epicentre, many decided to evacuate their employee and shut down their facilities. TMSC: “To ensure the safety of personnel, some fabs were evacuated according to company procedure,” and “Mitigating the impacts of the earthquake necessitates careful measures and time to restore production and uphold quality standards, presenting additional implications and obstacles.” Barclays analysts believe that this could have a minor short-term hiccup in the manufacturing of the semiconductors as some parts of it need to operate seamlessly 24/7 for several weeks. (“Taiwan quake to hit some chip output, cause Asia supply chain disruptions, analysts say,” The Straits Times, 03 April 2024)