HIGHLIGHTS
ECONOMY
Chinese property developer Shimao faces winding up petition by China Construction Bank
On 08 April, BBC reported of Chinese real estate developer Shimao Group facing a major winding-up petition filed by the state-owned China Construction Bank (Asia) in Hong Kong over Shimao's failure to repay loans worth HKUSD1.58bn (USD201.8m). Shimao said that it opposes the lawsuit. The lawsuit had wiped out a third of the company’s value since the beginning of 2024 by more than 15 per cent. The Shimao Group defaulted on the offshore bonds in 2022. China’s real estate sector has faced a major financial crunch since 2021, with Evergrande being the face of the crisis, severely impacting China’s economy. (Mariko Oi, “China property giant Shimao faces winding-up case,” BBC, 08 April 2024)

ECONOMY
Fitch revised its outlook on China's sovereign credit rating to negative
On 09 April, rating agency Fitch revised its outlook on China's sovereign credit rating to negative due to risks to public finances as it shifts to new growth models. It forecasted that the general government deficit would rise to 7.1 per cent of GDP in 2024 from 5.8 per cent in 2023 amid Beijing’s strict covid lockdowns. The agency affirmed China’s IDR rating at “A+” despite the downgrade over the medium term. Fitch’s forecasts predict an economic slowdown from 5.2 per cent in 2023 to 4.5 per cent in 2024, similar to the forecasts by the Citi and the International Monetary Fund. Analysts predict Beijing’s 5 per cent GDP growth rate as highly ambitious as its rising factory outputs and sales in January and February 2024 will boost its growth. Fitch said that China’s uncertain economic prospects arise from its shift from a property-reliant model to a sustainable growth model. (“Fitch downgrades outlook on China to negative on economic growth risks,” Reuters, 10 April 2024)

CHINA READER DAILY WIRE 
CHINA & EUROPE
Chinese Commerce Minister visits Europe to defend China’s EV sector
On 09 April, The Straits Times reported that Chinese Commerce Wang Wentao initiated a trip to Europe to defend his country’s EV excess capacity and supply chains against US and EU assertions. On 08 April, Wang reiterated Beijing’s stance that Chinese EV makers did not depend upon subsidies for their competitive advantage and relied upon continuous technological innovation, better production, and a supply chain system. The Straits Times reports on the European Commission investigation which was initiated in 2023 to determine whether to impose tariffs on Chinese exports to protect European carmakers. The investigation is expected to end by November 2024. Renault CEO and acting chairman of the European Automobile Manufacturers’ Association (ACEA) Luca de Meo said to Wang the need for reciprocity and invited greater Chinese supply chain presence to Europe. Chinese officials argue that trade restrictions will deprive consumers of green energy alternatives to address climate change goals. (“China commerce minister launches Europe trip defending Chinese EV sector,” The Straits Times, 09 April 2024)

Workshop radiation leak triggers emergency alert near Russia-China border, reports TASS
On 08 April, according to a report by TASS in the South China Morning Post, radiation leaks in a workshop triggered an emergency alert on 06 April in a Russian city close to the border with China. The radiation was caused by the parts from a mobile repair and chemical workshop in the city of Khabarovsk in Russia’s Far East, which lies 30km from China’s northernmost Heilongjiang province. On 09 April, the local authorities were informed that the issue was under control and resolved. The Novaya Gazeta newspaper reported that the radioactivity level reached 800 microsieverts, which is 1600 times higher than the required level of 0.5, posing a risk to human lives. (Holly Chik and Victoria Bela, “Russian city near China’s border says radiation under control after workshop leak triggered emergency alert,” South China Morning Post, 09 April 2024)

Russia and China to cooperate against terrorism threats, Russian FM Lavrov
On 09 April, Russian Foreign Minister Sergei Lavrov said to his counterpart Wang Yi that Russia and China to cooperate to fight against terrorism. He also extended his gratitude to China for their condolences on the terror attacks in Moscow. Both Russia and China had declared a no-limits partnership in February 2022 before the invasion of Ukraine. He also thanked China for sending observers to Russian presidential elections in March. He mentioned that the comprehensive and strategic interaction has reached greater heights. (“Russia, China to maintain fight against terrorism, Lavrov says,” Reuters, 09 April 2024)

Brussels launches subsidy investigation into Chinese wind turbine companies
On 10 April, the Financial Times reported that Brussels launched a subsidy investigation into Chinese wind turbine companies to protect its domestic industries from cheap and unfair competition from abroad. Margrethe Vestager, the top EU official, said that the European Commission (EC) will conduct its investigation against the suspected market-distorting subsidies from foreign governments, including Beijing. The investigation will be conducted on the ongoing development of wind parks in Spain, Greece, France, Romania, and Bulgaria. The investigation comes after the EC launched a probe into two Chinese consortiums bidding to develop a solar park in Romania. A similar EC investigation led to the withdrawal of China’s CRRC from the Bulgarian railway tender. Vestager said that less than three per cent of the solar panels were installed in the EU due to Chinese imports. (Javier Espinoza and Andy Bounds, “EU launches probe into Chinese wind turbine companies,” Financial Times, 10 April 2024)

CHINA & THE AMERICAS
US remarks on AUKUS to deter China against Taiwan are dangerous, says China's Taiwan Affairs Office
On 10 April, China’s Taiwan Affairs Office referred to US Deputy Secretary of State Kurt Campbell’s comments as dangerous after he spoke on AUKUS’s role in deterring Chinese moves against Taiwan. Spokesperson Zhu Fenglian said that the trilateral security partnership between the US, UK, and Australia is provoking military confrontation in the region through military cooperation. Linking AUKUS and Taiwan, Campbell said new submarine capabilities will ensure peace and stability in the Taiwan Strait. Szhu opposed his comments and said that it is a violation of the One China principle and endangers peace and stability in the Taiwan Strait. The AUKUS was formed with the US, UK, and Australia in 2021 to deter against the growing Chinese power in the Indo-Pacific region. (“China says US comments on Taiwan and Aukus are dangerous,” The Straits Times, 10 April 2024)

US cites red line on China’s ties with Russia, says the US Deputy Secretary
On 09 April, Deputy Secretary of State Kurt Campbell cited the red line violation as sensitive to its interests in China’s closer ties with Russia. He said that the US is trying to convince China about the US core interests to ensure peace and stability in Europe. While discussing with the US, Xi mentions Taiwan as the red line for China. Campbell said that Beijing’s aid to Russia will impact US-China relations. He further cites the rationale for a stronger alliance with Japan and the Philippines amid China’s close ties with Russia. Campbell’s remark comes after no end in sight for the deadlock between the two sides on issues related to trade and technology restrictions to China. (Robert Delaney, “China-US relations: American state department official explains how Beijing risks crossing ‘red line’ with Russia,” South China Morning Post,” 10 April 2024)

US plans to ease advisory for Americans to travel to China, says the Deputy Secretary
On 09 April, the US Deputy Secretary of State Kurt Campbell said that the country intends to ease the advisories for its citizens traveling to China. He acknowledged that the warnings have stopped exchanges between the people of the two sides. Campbell mentions the normalization of communication between the two sides but warned of the risk due to China’s support to Russia in the Ukraine war. China has issued its own warnings to the US and criticized the increasing harassment of Chinese nationals by US agents at the entry point. (“US considers easing warnings for Americans travelling to China,” The Straits Times, 10 April 2024)

Academicians oppose Florida’s new law against Chinese citizens
On 10 April, the South China Morning Post reported two graduate students and one professor filing a legal petition against the Florida state’s new law against Chinese citizens. This comes after Governor Ron DeSantis signed into law a bill requiring state colleges and universities to get government approval before they hire or work with Chinese people who aren’t US citizens or green card holders. Even the Florida International University paused the hiring of Chinese and citizens of six other “countries of concern” also targeted by the law, such as Iran, Cuba, North Korea, Russia, Syria, and Venezuela. Some critics argue that the two bodies overseeing approvals, the state university system’s board of governors and the state board of education, are being appointed by DeSantis, and they see his policies as a wide crackdown on academic freedom. According to Han, in 2021, DeSantis cited national security concerns to justify the SB 846 law and wanted to use the same template for other states. Han notes that Chinese students comprise 40 per cent or 1100 of the international graduate student population at the University of Florida. (Bochen Han, “Professors, students say ‘no’ to Florida as new law targets Chinese,” South China Morning Post, 10 April 2024)

China opposes mistreatment of Chinese visitors at the US border, says Chinese embassy in the US
On 08 April, the Chinese embassy in the US said that it opposes the mistreatment of its citizens at the US border and will continue to protest for every single incident. It said that the US had “unjustifiably” sent back around 300 students despite having valid travel documents. It also warned of the US customs officer interrogating a Chinese scholar for secondary inspection, adding that such acts are driven by ideological bias. In February, Chinese Foreign Minister Wang Yi raised this issue with Anthony Blinken and other senior US officials. The Chinese embassy accused the US of violating the common understanding reached between the two leaders. In light of this issue, the Ministry of Foreign Affairs has raised the travel advisory to its citizens, citing it as “unwarranted interrogation and harassment.” (Orange Wang, “China vows to protest ‘every single incident’ of mistreatment of Chinese arrivals in the US,” South China Morning Post, 09 April 2024)

Cancellation of shipments by Chinese buyers hits global wheat markets
On 10 April, Nikkei Asia reported that cancellations of wheat shipments by Chinese buyers had impacted the global wheat market. In March, the US Department of Agriculture said 504,000 tonnes of wheat sales to China had been cancelled, half of the total US shipments to China in 2022. Reuters also reports cancelling one million tons of Australian wheat exports to China. According to Ruan Wei at Japan's Norinchukin Research Institute, Chinese buyers try to avoid long-term contacts and repurchase at lower prices. Hama mentions that flooding in China’s Henan province in the summer of 2023 led to buyers securing long-term wheat contracts from Australia, Canada, and the US. Hama also notes China’s new food security law, which will prioritize more on domestic procurement to bolster food security. (Misa Hama, “China shakes wheat market with cancelled shipments from US, Australia,” Nikkei Asia, 10 April 2024)

EAST ASIA & THE PACIFIC READER
EAST ASIA
Taiwan appoints former DPP chairman Cho Jung-tai as the new premier
On 10 April, Taiwan President-elect Lai Ching-te announced that the former Democratic Progressive Party (DPP) chairman Cho Jung-tai was the new premier. He will resume his duties after the inauguration of President Lai on 20 May. In the Taiwanese government model, the president appoints the premier, who, in turn, appoints the cabinet members under presidential approval. Under the premier’s leadership, the cabinet will enact the policy and propose legislation. This comes as Lai won the presidential elections in January but lost the majority in the parliament. (“Taiwan’s new premier is ruling party’s former chairman,” The Straits Times, 10 April 2024)

Taiwan’s annual war games 2024 to practice simulation against a potential Chinese offensive, says Taiwan’s Ministry of Defense
On 09 April, Taiwan’s Ministry of Defense said that its annual war games 2024 would practice kill zones at scenes and simulate a scenario of a sudden change in Chinese drills into a real offensive. The ministry also mentioned that the annual Han Kuang exercises will take place for five to eight days and will be followed up with further exercises in July. The head of the ministry’s joint combat planning department, Tung Chih-Hsing, said that the drills would be practiced to quickly respond to a sudden Chinese offensive and coordinate a response to a Chinese blockade. He added that the drills will involve naval, air, and coast guard forces, shore-mounted anti-ship weapons, and drones to establish a maritime “attack-and-kill chain.” He also mentioned the role of the Navy, Coast Guard, and Air Force in carrying out escort operations. Tung mentioned that the exercise would feature the lessons learned from the ongoing war in Ukraine and Gaza. Taiwanese President Tsai Ing-wen has emphasized the focus on asymmetric warfare against Chinese forces. (“Taiwan war games to simulate repelling Chinese drill that turns into attack,” The Straits Times, 09 April 2024)