NIAS Area Studies
PAKISTAN READER
HIGHLIGHTS
CHINA & THE AMERICAS
Xi Jinping and Joe Biden discuss issues and avenues of cooperation on call
On 02 April, Chinese President Xi Jinping and US President Joe Biden engaged in a telephone conversation, aiming to subdue the tension between the two countries. They discussed multiple avenues of cooperation and shared vision to combat Climate Change. On Taiwan, Biden expressed his support for Taiwan while Xi called US involvement as the “Red Line.” Xi called those sanctions imposed by the US an “endless stream of measures to suppress China's economy, trade, science and technology.” He said that if the US aim to deter their right to develop, China will not sit idly. Xi again stated that US support for Taiwan is not “risk reduction” but “risk escalation.” Biden also questioned the Chinese support for Russia, their industrial base, trade policies and national security. (Kayla Epstein, “Biden and Xi discuss US-China cooperation and conflict,” BBC, 03 April 2024)
INTERNAL
Southeast Asia prefers China over the US: ISEAS Report
On 02 April, according to a survey published by the ISEAS – Yusof Ishak Institute’s “The State of Southeast Asia 2024 report,” in The Straits Times, China leads ahead of the US as the preferred superpower by a narrow margin. The survey indicated a sizable shift in the respondents in the region who had relied on the US. Out of the 1,994 respondents polled across the 10 ASEAN countries, 50.5 per cent indicated China as their preferred choice, while 49.5 per cent selected the US on the question of which country the region should choose if it was forced to align itself with. In the 2023 survey, only 38.9 per cent of respondents picked China, with 61.1 per cent opting for the US. The 2024 survey was conducted online from 03 January to 23 February and polled respondents from academia, think tanks, research groups, businesses, civil society, the media & regional or international organizations, and governments. The 2024 survey perceived China as the most influential power in Southeast Asia, followed by ASEAN and the US. The survey also revealed growing concerns about China’s regional political and strategic influence, with 73.5 per cent of the respondents expressing their uneasiness. However, there were exceptions where the respondents in the Philippines, Singapore, and Vietnam perceived US influence more positively. (Michelle Ng, “When push comes to shove, China edges out US as S-E Asia’s preferred superpower: ISEAS survey,” The Straits Times, 03 April 2024)
INTERNAL
China Yunnan province tightens restrictions for Ramadan
On 02 April, according to a commentary in VOA, restrictions were imposed in China on the sidelines of the Ramadan festival from 10 March to 09 April. The Yuxi Municipal government in southwestern Yunnan Province issued an emergency notice for the party committees, governments, and education departments at all levels to comprehensively investigate and strictly prohibit Muslim members of the Communist Party of China (CCP) and minors from participating in religious activities such as fasting. Lin mentions that the CCP desires to maintain political discipline among the party members. According to Lin, the notice emphasized separating education and religion to participate in religious activities with severe punishment threats. He also reports the local government tightening the restrictions with the onset of Ramadan. Ruslan Yusupov, a Society for the Humanities fellow at Cornell University, said that before Xi’s arrival, ethnic customs were allowed even for the CCP members, and with Xi’s tenure, there has been increased government control and suppression of religions using unofficial measures. (Ke Lin, “China tightens restrictions during Ramadan,” VOA, 02 April 2024)
CHINA READER DAILY WIRE
INTERNAL
AIUla joins hands with China’s Henan province to preserve cultural heritage
On 02 April, Arab News reported of the Royal Commission for AlUla signing a strategic partnership with the Cultural Heritage Administration of China’s Henan province to preserve heritage. The Saudi Press Agency mentions RCU's goals of expanding its global network through the Saudi-Chinese partnership. At present, the “AlUla, Wonder of Arabia” exhibition is being held at the Palace Museum in Beijing, a UNESCO World Heritage site, until 11 April and has attracted over 250,000 visitors and features several sections, exhibits, archaeological pieces, and heritage items from historical sites in AlUla. The partnership, as reported by the Arab News, includes establishing a technology-driven archaeological laboratory, conducting excavation activities, engaging in research, and fostering connections between heritage sites in AlUla and Henan. (“AlUla, China’s Henan province strengthen cultural ties for heritage conservation,” Arab News, 02 April 2024)
ECONOMY
China Construction Bank's chief financial officer expects more policy support
On 02 April, China Construction Bank (CCB) chief financial officer Sheng Liurong said that the country’s economy is slowly recovering and Beijing needs to ensure more policy support to boost the economy. He also said that big financial institutions could lower financing costs to boost domestic confidence. He predicts a future cut in banks’ reserve requirement ratios (RRR) and loan prime rates (LPR), which are critical for household, corporate, and mortgage loans. This was followed by the People’s Bank of China (PBOC) announcing a 25-basis-point cut to the five-year LPR, a key mortgage benchmark, to boost housing demand since 2019. It was followed by the country’s central bank in January, leading to a cut in the RRR by 50 basis points to inject 1 trillion yuan liquidity into the market. BOC chairman said that the bank would pursue more retail loans as they have high yields, less capital accumulation, and low-risk costs. He added that the CCB will continue monitoring property and local government debt to prevent and contain credit risks. (Aileen Chuang and Yuke Xie, “China Construction Bank sees more policy support from Beijing, despite pressure on state-owned lenders to boost profit,” South China Morning Post, 02 April 2024)
Profits doubled for China’s fast fashion retailer Shein amid its pending IPO approval
On 01 April, Shein, China’s online fast fashion retailer, doubled its profits to more than USD 2 billion as it waits for its IPO approval for stock market listings in New York or London. Quoting a Financial Times report, The Guardian noted the rapid growth of Shein using social media for its goods promotion with sales clocking up to USD 45 billion in 2023. Shein, headquartered in Singapore, is the world's fastest-growing and profitable fashion company, ahead of Swedish fashion group H&M and the UK’s Primark and Next. The company predicts that a potential stock listing in London will value its IPO to USD 90 billion. Sarah notes that Shein directly sells its goods to customers in the US and the UK to avoid taxation, which has led to increased calls for change in tax rules. (Sarah Butler, “Fast fashion retailer Shein doubles profits as it awaits IPO approval,” The Guardian, 01 April 2024)
CHINA & TAIWAN
Taiwan detects 30 Chinese warplanes and nine navy vessels around its territory
On 03 April, the Taiwanese Ministry of Defense said it had detected 30 Chinese warplanes and nine naval warships around Taiwan. The reports come after a 7.7 magnitude earthquake hit Taiwan. The Armed Forces of the Republic of China detected 20 aircraft entering Taiwan’s Northern middle line and SW ADIZ. On the same day, Taiwan also reported a satellite launch close to its territory from the Xichang Satellite Launch Center (XSLC). (“Over 30 Chinese Warplanes, 9 Navy Vessels Around Taiwan,” TimesNow, 03 April 2024)
CHINA & EAST ASIA
Hong Kong Stock exchange suspends trading shares of Country Garden
On 02 April, the Hong Kong exchange suspended the trading of the shares belonging to the Country Garden aid financial crisis from the ongoing housing crisis. This comes after the company postponed the release of the 2023 annual results. The company said the delay in the financial report was due to the requirement to compute appropriate accounting estimates. The suspension comes after the company suffered losses of up to USD 844 million since 2022, facing a liquidation petition in Hong Kong. Apart from Country Garden, the Hong Kong Stock Exchange suspended the trading of other companies such as Modern Land, Central China Management, and Ronshine China. (“Trading of indebted developer Country Garden suspended in Hong Kong,” VOA, 02 April 2024)
CHINA & SOUTHEAST ASIA
China has diplomatic charm over Southeast Asian countries despite tensions, says an opinion in VOA
On 02 April, an opinion in VOA, titled, “China launches Southeast Asia outreach amid tensions with Philippines,” by Willian Yang stated that China tried to extend its diplomacy to Southeast Asian countries this week. President Xi Jinping met Indonesian President-elect Prabowo Subianto on 01 April and foreign ministers from Laos, Vietnam, and East Timor on 02 April. The meeting comes amid the ongoing diplomatic tussle between China and the Philippines in the South China Sea. On 01 April, Xi, in the meeting with Prabowo, promised to deepen ties with Indonesia at all levels, including joint maritime cooperation and focus on economy, trade, and poverty alleviation. The spokesperson of the Ministry of Foreign Affairs of China announced that Beijing will work with the three countries via the guidance of the important common understandings between General Secretary and President Xi Jinping and leaders of the three SEA countries. Ja Ian Chong, an expert on Chinese foreign policy at the National University of Singapore, notes that China aims to cultivate strong ties with Timor Leste and Indonesia and is trying to pursue Prabowo to take positions in Beijing’s interest. Ngeow Chow-Bing, an associate professor in China studies at the University of Malaya, said that ASEAN countries, except for the Philippines, are abiding by not criticizing China on the territorial disputes and seeking opportunities with Beijing for collaboration. (William Yang, “China launches Southeast Asia outreach amid tensions with Philippines,” VOA, 02 April 2024)
CHINA & SOUTH ASIA
Investors paring Indian stocks and going back to China as the economy revives, says an Opinion in Bloomberg
On 01 April, Bloomberg published an opinion titled, “Investors Are Unwinding the ‘Buy India, Sell China’ Stocks Trade,” by John Cheng, Abhishek Vishnoi, and Tania Chen. The op-ed looked into the change in strategy of foreign investors, now tracing back to China from India as they believe the economy is recovering. The strategy according to the op-ed “Buy India and Sell China” is at its “inflection point.” The firms Lazard Asset Management, Candriam Belgium NV and Manulife Investment Management are cutting away from India, while a sizeable number of Wall Street banks are pitching India as a key destination for investments for the upcoming decade. Head of emerging markets in Lazard Asset, James Donald said: “As China has got cheaper and cheaper, some of our Chinese investments have become less valuable but the investment case for them has increased,” and for India “has been a source of negative attribution for our portfolios,” due to its rich valuations.” According to HSBC Holdings, more than 90 per cent of the emerging market funds are going back to China and its shares. (John Cheng, Abhishek Vishnoi, and Tania Chen, “Investors Are Unwinding the ‘Buy India, Sell China’ Stocks Trade,” Bloomberg, 01 April 2024)
CHINA & THE AMERICAS
Chinese Businessmen Guo Wengui pleas to dismiss charges were declined by the US court
On 02 April, U.S. District Judge Analisa Torres rejected the Chinese businessman Guo Wengui's petition to retract his indictment. The court dismissed Guo’s pleas who was detained after being accused of defrauding thousands of investors estimated to be USD 1 million. The judge stated that the prosecutors found that Guo was operating through four fraud schemes. Guo pleads not guilty on all 12 charges that include, security fraud, unlawful transactions, conspiring, money laundering and wire fraud. His indictment stated that Guo used his online platform and his popularity to secure financial investments. In reality, these only helped the investors in funding Guo and his conspirator’s extravagant lifestyle. (“Exiled Chinese businessman Guo Wengui must face US fraud indictment,” VOA, 02 April 2024)
EAST ASIA & THE PACIFIC READER
EAST ASIA
Taiwan hit with 7.4 magnitude earthquake
On 01 April, Taiwan was hit by an earthquake of 7.4 magnitude killing at least seven people and injuring more than 700, while 77 are still trapped in tunnels and the rubbles of the collapsed buildings. This is the biggest earthquake Taiwan experienced in the last 25 years. The quake hit a depth of 15.5 km while most people were going to work and schools. This has led to a series of warnings being issued in the southern part of Japan and the Philippines. The newest President-elect Lai Ching-te informed that the priority of Taiwan is to rescue people. (“Seven dead, over 700 injured after 7.4-magnitude earthquake rocks Taiwan,” The Straits Times, 03 April 2024)
North Korea tests its mid-to-long-range solid fuel-based hypersonic missiles
On 02 April, the Korean Central News Agency (KCNA) reported that North Korea successfully tested its mid-to-long-range solid fuel-based hypersonic missiles. The launch was overseen by North Korean leader Kim Jong Un who applauded the development of strategic weapons and stated that it showcases “absolute superiority” they have in defence technology. Kim said North Korea has: “fully turned all tactical, operational, and strategic-grade missiles of different ranges into solid-fuel, with warhead control, and capable of nuclearization.” The hypersonic capabilities give a strategic boost to North Korea as they are hard to intercept and the use of solid fuel made it easy to store hence expediting the launch timing. (“North Korea says it test-fired a new solid-fuel hypersonic missile,” Nikkie Asia, 02 April 2024 )
South company Hyundai announces biggest Initial public offering
On 03 April, Nikkie Aisa reported that South Korean company HD Hyundai Group has envisioned raising USD 550 billion for an initial public offering (IPO) for the South Korean stock market. They would allocate 8.9 million shares which is 20 per cent to the investors. Hyundai CEO Kidong Lee said: “We are expected to benefit from the transition toward an environmentally friendly market,” and “We have actively prepared for coping with rising demand for ships fuelled, with cleaner alternatives.” The IPO remained subdued for the past two years but after this HD Hyundai will remain the largest shareholder with a 55 per cent stake. The HD Hyundai conglomerate is the company that offers services to container ships and other LNG carriers. They also repair and maintain systems while providing them with a navigation system that gives energy-saving data. (“Hyundai Marine Solution targets South Korea's biggest IPO in 2 years,” Nikkie Asia, 03 April 2024)
US urges South Korea to tighten its chips exports to China
On 02 April, Bloomberg reported that the US is urging South Korea to toughen up its Chip export control to China. They have asked South Korea to adopt a similar sanction as that of the US and implement it to thwart Chinese ambitions. They want South Korea to restrict the flow of equipment and technologies that are vital in making chips. The South Korean side is still discussing as they see China as a key trading partner. The US has been pressing its allies to curb Chinese access to Chip technology, especially pressuring South Korea which plays a leading role in providing technology for the production of semiconductors. China remains the largest trading partner with South Korea and this can affect big conglomerates like Samsung Electronics Co. and SK Hynix Inc. Chinese Foreign Ministry spokesman Wang Wenbin said: “We hope that the ROK will make the right judgments and independent decisions.”( Mackenzie Hawkins and Sam Kim, “ US Asks South Korea to Toughen Export Curbs on China Chips,” Bloomberg, 02 April 2024)