NIAS Area Studies
PAKISTAN READER
Photo : Reuters
HIGHLIGHTS
ECONOMY
The Rise of Temu, an e-commerce giant from China
On 19 March, an analysis in the BBC, titled “How Temu is Shaking up the world of online shopping,” by Sam Gruet, looked into the rising e-commerce online shopping giant Temu. It is owned by the Chinese e-commerce giant Pinduoduo, which has taken the top spot of Alibaba and is currently worth USD 117 billion. The company Temu has been criticized by the US and the UK governments for being part of using forced labour (Uyghur Muslims) to produce its goods sold in Temu. In response, Temu stated: “strictly prohibits" the use of forced, penal, or child labour by all its merchants.” The company was launched in 2022 in the US and later the US and then worldwide. Since its founding, it has topped the global app download charts and has 152 million American buyers. Temu attracts customers by selling goods at cheap prices where its focus is not on profit but on increasing its market share. (“How Temu is shaking up the world of online shopping,” BBC, 19 March 2024)
CHINA & THE AMERICAS
“Strengthening AI safety and security, privacy protections, and equity and civil rights,” Antony Blinken at the Summit for Democracy
On 17 March, US State Secretary Antony Blinken made some comments at the third Summit for Democracy, held in South Korea. Blinken outlined the importance of the decisions they make as governments and the impacts they may have in coming years when it comes to the space of Artificial Intelligence and Innovation. He urged the need to make sure that they not only reap benefits from them but also protect themselves from harming people. He then listed how AI helped innovation with Kenya’s AI-enabled bot helping girls with accurate reproductive and health information, to Chile’s “Creamos” where young people can submit their ideas for social change. While AI is set to play a vital role in the advancement of innovation, it can also be critical to democracy, where many can misuse it. Blinken said: “So while we seek to harness the power of AI and other digital technologies for good, some governments are abusing those same technologies to do just the opposite.” He stated that they are using AI tools for surveillance, facial recognition and bots. Some countries use them to spread disinformation and misinformation curbing free and fair elections, said Blinken. He said that the US is determined to shape the terms of the technological future that is inclusive and sustains democratic value while “strengthening AI safety and security, privacy protections, and equity and civil rights.” (“Secretary Antony J. Blinken At the Ministerial Conference of the Third Summit for Democracy,” US Embassy, 17 March 2024)
CHINA READER DAILY WIRE
INTERNAL
Chinese school kid killed by classmate sparks debate on left-behind children and juvenile criminal law in China
On 19 March, The Straits Times reported on the arrest of three juvenile boys who allegedly killed their classmate, which sparked the debate on left-behind Children in China and the Juvenile criminal law in the country. The victim of the incident was a 13-year-old middle schooler who went missing on 10 March and was found the next day buried at a vegetable greenhouse. The current Criminal Law of China after the amendment holds juveniles criminally liable from the age of 12, to prevent children from committing crimes. The amended law states that the accused children would face punitive action against them for intentional homicide. Though the law has been amended their punishment would depend on how the prosecutor probes them as they might hold the principle of “education first and punishment second.” This incident also sparked discussion on the issue of left-behind children of migrant parents, and how social workers and the government need to provide provisions for a better environment for the children. According to the National Bureau of Statistics in 2023, there were 66.93 million left behind children living in the rural areas. (“Arrests of three boys who allegedly killed schoolmate cast light on left-behind children in China,” The Straits Times, 19 March 2024)
ENERGY/ENVIRONMENT
China to host the fifth international “Enhancing the Operational Safety of Nuclear Power Plant,” with IAEA
On 19 March, an analysis in the South China Morning Post, looked into the upcoming Enhancing the Operational Safety of Nuclear Power Plant, an international conference to be held in China and the possible agendas of the meeting. The conference is scheduled to be held from 15-19 April and this would be the first conference held outside Vienna, which is the headquarters of the International Atomic Energy Agency (IAEA). The agenda of the gathering would focus on how to make nuclear power plants safer and not on the Fukushima nuclear power plant release the IAEA said: “The specific topic of the release of treated water from Fukushima Daiichi nuclear power plant is not within the scope of this conference.” The director general of the IAEA, Rafael Mariano Grossi is set to participate in the event he has been an avid advocate for the water release and the Chinese have heavily criticized Grossi and career diplomats for it. (Victoria Bela, “China to host global nuclear safety conference – but row over Fukushima nuclear waste water will not be on agenda,” South China Morning Post, 19 March 2024)
ECONOMY
Evergrande founder Hui Ka Yan accused of inflated revenue fraud of USD 78 billion
On 19 March, BBC reported that the Chinese real estate giant Hui Ka Yan, the founder of the Chinese property firm Evergrande has been accused of USD 78 billion in fraud. Hui is accused of inflating the revenues of the company, the financial market regulator of China has now fined his mainland business of USD 583.5 million. The founder is now also banned from the Chinese financial market. This comes after the Hong Kong court also asked the Chinese firm to liquidate its assets. The China Securities Regulatory Commission (CSRC) blame much of the defaults owed by the company on the founder who inflated their revenue. The company Evergrande has been China’s biggest real estate project supported by the government. The liquidators have informed us that they would seize and sell off assets to repay the outstanding debts owed by the company. (“Evergrande: China property giant and its founder accused of $78bn fraud,” BBC, 19 March 2024)
CHINA & TAIWAN
China rebukes South Korea over Taiwan’s participation at the Summit for Democracy
On 18 March, Chinese Ministry of Foreign Affairs spokesperson Lin Jian opposed the Taiwanese participation in the third Summit of Democracy, held in Seoul, South Korea. Taiwan’s Digital Minister Audrey Tang attended the meeting and delivered a video message on the discrimination faced by Taiwan and that they face concerted cyber attacks regularly. He also said that they are willing to work with other like-minded countries and stakeholders to ensure the safe use of Artificial Intelligence. Lin urged South Korea to follow the “one-China” principle and that: “Taiwan is an inalienable part of Chinese territory.” (“China protests against Taiwan minister’s role at Seoul summit backed by the US,” The Straits Times, 18 March 2024)
CHINA & THE PACIFIC
China’s ties with New Zealand had been “at the forefront of China’s relations with developed countries,” says FM Wang Yi
On 18 March, in his five-day tour, the Chinese Foreign Minister Wang Yi said that China’s ties with New Zealand are “a force for stability in a turbulent world.” He held talks with Prime Minister Christopher Luxon, Foreign Minister Winston Peters, and Trade Minister Todd McClay in Wellington. Wang said, “China regards New Zealand as a rational and mature partner, and the relationship between China and New Zealand is strategic and long-term.” He also showed the country's willingness to celebrate the 10th anniversary of the Comprehensive Strategic Partnership and upgrade it for stronger bilateral relations between the two countries. He also urged the two countries to increase cooperation and counter the Cold War mentality, unilateralism, and protectionism. Peters acknowledged the differences between the two sides in areas such as human rights violations in Xinjiang, Hong Kong, and Tibet. He also raised regional security issues such as the South China Sea and Taiwan Strait. (Laura Zhou, “China and New Zealand are a ‘force for stability’ in a turbulent world, says Foreign Minister Wang Yi,” South China Morning Post, 18 March 2024)
CHINA & THE MIDDLE EAST
ADIA seeks to capitalize on the Chinese equities left by Western investors, says an Opinion in the Financial Times
On 19 March, according to an opinion in the Financial Times, The Abu Dhabi Investment Authority (ADIA) is willing to capitalize on the Chinese equities managed by Hong Kong-based PAG at a discount. They are being sold by Western investors, particularly the US, to reduce their reliance on China. PAG is one of Asia’s most prominent private equity groups, which manages more than USD 55 billion, including the state pension schemes in the US and investment funds in Canada, Australia, and Europe. It is led by Weijian Shan, who sat on Alibaba’s board. PAG could not raise new funds in 2022 due to Shan’s criticism against Beijing. According to Reuters, PAG aimed to raise funds of USD 9 bn; however, it could raise only 2.2bn by March 2023. In its long-standing interests and ties in China, ADIA intends to buy stakes in PAG funds at a discount. Western investors are increasingly worried about China as the geopolitical tensions have led to US restrictions on China and Beijing’s crackdown on foreign companies and investors. (Kanye Wiggins, Mercedes Ruehl, Chloe Cornish, “Abu Dhabi fund offers to buy out investors fleeing China private equity,” Financial Times, 19 March 2024)
CHINA & THE AMERICAS
Chinese battery maker Gotion more vocal in filing the lawsuit against Michigan township, says an Opinion in SCMP
On 19 March, according to an opinion in the South China Morning Post titled, “Embattled Chinese battery maker Gotion vows ‘more vocal’ US strategy after filing lawsuit in Michigan,” by Khushboo Razdan, Chinese battery maker Gotion sued Michigan’s Green Charter township for the breach of contract of USD 2.3 upcoming billion EV plant. VP of North American manufacturing for Gotion Inc., Chuck Thelen, said that people have been hearing many mistruths for nine months, and the company will be more vocal in conveying the truth. According to Khushboo, Gotion has been trying to address the community’s concerns through events hosted by Township officials. On 18 March, Thelen said their company was forced to file a lawsuit in a US federal court in Michigan on 15 March to protect its investments. So far, the company has invested USD 24 million to purchase 270 acres of land and incurred USD 500,000 in additional costs. Khushboo notes that Gotion faces public anger over its ties to China and the CCP. In November 2023, the Green Charter Township residents ousted five out of seven local government officials over their support to the Gotion project, and two Republican congressmen, John Moolenaar of Michigan and Darin LaHood of Illinois, had introduced the No Gotion Act in the US House. The bill prohibits companies affiliated with the CCP from receiving tax credits under the Inflation Reduction Act. (Khushboo Razdan, “Embattled Chinese battery maker Gotion vows ‘more vocal’ US strategy after filing lawsuit in Michigan,” South China Morning Post, 19 March 2024)
China PLA social media account criticizes US for deploying SpaceX spy satellites
On 17 March, based on a report by Reuters, China accused the US of deploying hundreds of SpaceX’s spy satellites in space, threatening global security. The report notes that the Starshield unit of SpaceX is building the satellite network under the classified USD 1.8 billion contract with the National Reconnaissance Office (NRO). One of the PLA’s social media accounts on Weibo said that the SpaceX programme exposes “US’s shamelessness and double standards” amid Washington’s accusation of Chinese companies threatening US security. Wang Yanan, chief editor of Aerospace Knowledge, said that the deployment of spy satellites poses a challenge to global security and stability. The Starshield entity is separate from SpaceX’s Starlink. China also said that it has studied the deployment of Starlink satellites in the Ukraine war and its risk to China and is willing to build its own satellite network in space. (“China’s military, state media slam US after Reuters report on SpaceX spy satellites,” The Straits Times, 19 March 2024)
CHINA & EUROPE
“Your re-election is a full demonstration of the support of the Russian people for you,” says President Xi Jinping
On 18 March, Chinese President Xi Jinping congratulated Vladimir Putin for winning the Presidential elections and said China is willing to deepen its partnership with Russia. On 17 March, Putin won a landslide victory in the recent presidential polls, cementing his power over the country. According to Xinhua News, President Xi said, “Your re-election is a full demonstration of the support of the Russian people for you.” The two countries strengthened their bilateral relationship amid the ongoing war in Ukraine and declared a “no limit” partnership in February 2022. Chinese Foreign Ministry spokesperson Lin Jian said that 2024 will mark 75 years of establishing diplomatic relations between China and Russia. (“China’s Xi congratulates Putin on election win, set to develop their ties,” The Straits Times, 18 March 2024)
EAST ASIA & THE PACIFIC READER
EAST ASIA
Korean youths say reunification between the North and South is not necessary, says South Korean Ministry of Unification
On 19 March, The Straits Times reported on the government survey, titled “4 out of 10 South Korean youth say ‘reunification not necessary’,” four out of ten students in South Korea responded that reunification between the North and South is not necessary. The survey was conducted in October 2023 by the Ministry of Unification and involved 73,991 students aged between six and 18 from all over the country. The survey highlights that around 38.9 per cent of the respondents believe that reunification is unnecessary, which is higher compared to its previous years at 31.7 per cent in 2022, 25 per cent in 2021, and 24.2 per cent in 2020. Also, 49.8 per cent of the respondents believed that reunification is necessary, which has reduced compared to the 2014 survey. Furthermore, around 28.3 per cent of the respondents are not interested in the reunification issue, which has increased marginally from 27 per cent in 2022. The survey points out that there is a growth in the negative perception of North Korea, with 80.6 per cent of the respondents being concerned about the escalating military conflict between the two countries. The Ministry of Reunification said that the growing provocations by Pyongyang have led to increased negative perceptions about North Korea among the respondents in South Korea and is ready to increase awareness to boost reunification efforts. (“4 out of 10 South Korean youth say ‘reunification not necessary’,” The Straits Times, 19 March 2024)
Taiwanese VP Visits Czech Republic
On 19 March, Taiwan's vice president-elect and former de facto ambassador to Washington, Hsiao Bi-khim, makes a trip to the Czech Republic after her recent trip to the US. China referred to her as a "diehard Taiwan independence separatist" and imposed sanctions on Hsiao. Ministry of Foreign Affairs of the Republic of China spokesperson Jeff Liu said that Hsiao was extended an invitation by Sinopsis think tank to the Czech Republic. Except for the Vatican, Taiwan has no formal relations with any European country. However, many central European countries have expressed their support to Taiwan amid the ongoing Russia-Ukraine war. (“Taiwan's vice president-elect makes Czech visit after US trip,” Reuters, 19 March 2024)