Xi skips BRICS Business Forum; Fukushima waste water; Philippines resupplies grounded ship; Arm IPO; Raimondo trip
Summary of today’s Essential Eight:
Xi skips BRICS Business Forum - Xi arrived in South Africa. He looked OK upon arrival and descending the stairs at the airport and in his meetings with Ramaphosa, but he skipped the BRICS Business Forum he was supposed to attend, sending Commerce Minister Wang Wentao in his place to read his speech. We have no idea why Xi changed his plans. I wrote in the Monday newsletter that “official media have reported on Xi’s activities and utterances since the end of the Beidaihe break, but so far there have been no videos or photos of him since early August, which seems a bit strange”, and this last minute decision to skip the business forum looks even stranger. So in the absence of any useful information from the PRC system rumors will fly, and we are left with examine the videos to see if he looks sick. Back to the future, sadly.
Xi meets with South Africa’s President - Xi met with President Ramaphosa, received the Order of South Africa and the two countries issued a joint statement.
BRICS and the global order - Is the PRC trying to reform the global order or build an alternative one?
Japan to start releasing Fukushima waste water - Prime Minister Kishida has said that discharge of the waste water from the Fukushima nuclear power plant will begin Thursday. The levels of radiation in the water are far below the levels of radiation in water the PRC regularly releases into the ocean from some of its nuclear power plants, but that has not stopped PRC officials from pursuing a campaign to block Japan’s release. That campaign has failed, so now we wait to see how much economic pain the PRC will inflict through bans on imports of Japanese products.
Philippines resupplies grounded ship - The Philippines was able to resupply its marines stationed on the rusting, intentionally grounded ship Sierra Madre at Second Thomas Shoal. Last time they tried their boat was attacked with a water canon from a China Coast Guard (CCG) vessel. This time the PRC let the resupply happen, so long as they did not deliver any construction materials to shore up the rusting ship, as the PRC plan appears to be to prevent any maintenance, wait for the ship to break apart and then take what they call Ren'ai Reef. The CCG issued a statement that “China Coast Guard (CCG) on Tuesday restricted Philippine vessels trespassing into waters near China's Ren'ai Jiao (also Ren'ai Reef) in the South China Sea but under humanitarian consideration, temporarily allowed the transport of food to the Philippines' "grounded" warship”. The true test will come if/when the Philippines tries to deliver construction materials to the vessel.
Downturn means PRC even less likely to overtake US economic power? - So testified Rhodium Group’s Logan Wright to a US Congressional Commission, saying that “Beijing is no longer an economic pacing threat or likely to overtake the United States in any significant measure of economic power in the next two decades”. Wright’s report from earlier this year - Grasping Shadows: The Politics of China’s deleveraging Campaign - is very helpful to understanding what is currently unfolding. How important is it for Xi to “overtake the US 超美”?
Raimondo to Beijing as US announces Tibet-related visa restrictions Commerce Secretary Raimondo will travel to the PRC on August 27. Continuing the trend of mixed messaging, on Monday the US removed 27 PRC entities from its export-control "unverified list" and on Tuesday announced new visa restrictions on unnamed PRC officials related to “the forcible assimilation of more than one million Tibetan children in government-run boarding schools”.
Arm files for US IPO, details China risks - Arm Holdings filed for a massive US IPO. The long discussions of China-related risks in the F-1 filing with the SEC are fascinating, especially what they say about the relationship with Arm China, the JV whose CEO stole the entity from Arm and now is sort of controlled by Arm but with a lot of risk, as the filing notes.
Thanks for reading.
The Essential Eight
1. Xi skips BRICS Business Forum
In his place, Commerce Minister Wang Wentao read the speech that criticised the US over its tendency toward “hegemony”.
Xi, in the speech read by Wang at the Sandton Convention Centre in Johannesburg, said the US tended to fight countries that threaten its dominance in global affairs and financial markets.
The speech said that every country has a right to development and that people should have the freedom to pursue a happy life. But one country, he said in a thinly veiled swipe at the US, is “obsessed with maintaining hegemony, has gone out of its way to cripple the emerging markets and developing countries”.
“Whoever develops first becomes their target of containment. Whoever is catching up becomes its target of obstruction,” Xi added.
习近平在2023年金砖国家工商论坛闭幕式上的致辞（全文）-新华网
Full text of Xi's speech that Wang Wentao delivered at the BRICS Business Forum that Xi skipped. Some highlights:
Currently, changes in the world, the era, and history are unfolding in unprecedented ways, and human society has reached a critical juncture. Will we adhere to cooperation and integration, or move towards division and confrontation? Will we join hands to maintain peace and stability, or slide into the abyss of a "new Cold War"? Will we walk towards prosperity through openness and inclusiveness, or fall into depression through hegemony and bullying? Will we enhance mutual trust through exchange and mutual learning, or let arrogance and prejudice cloud our conscience? The direction in which the pendulum of history swings depends on our choices...
当前，世界之变、时代之变、历史之变正以前所未有的方式展开，人类社会走到了关键当口。是坚持合作与融合，还是走向分裂与对抗？是携手维护和平稳定，还是滑向“新冷战”的深渊？是在开放包容中走向繁荣，还是在霸道霸凌中陷入萧条？是在交流与互鉴中增进互信，还是让傲慢与偏见蒙蔽良知？历史的钟摆朝向何方，取决于我们的抉择...
We must promote common development and prosperity. Emerging market countries and developing countries have mostly emerged from the historical mire of colonialism. We have experienced countless hardships, made tremendous sacrifices, achieved national independence, and continuously explored development paths that suit our national conditions. Everything we do is ultimately aimed at allowing people to live happy lives. However, some countries are unwilling to lose their hegemonic status and arbitrarily suppress emerging market countries and developing countries. Whoever develops well, they want to contain; whoever catches up, they want to trip up. I have said many times that blowing out someone else's light will not make oneself shine brighter...
我们要促进共同发展繁荣。新兴市场国家和发展中国家大多是从殖民主义的历史泥淖中走出来的。我们经历千辛万苦，付出巨大牺牲，获得了民族独立，不断探索符合自身国情的发展道路。我们所做的一切，说到底就是要让人民过上幸福生活。但是，有的国家不甘心失去其霸权地位，对新兴市场国家和发展中国家肆意围堵打压。谁发展得好，就要遏制谁；谁赶上来了，就要使绊子。我曾多次讲，吹灭别人的灯，并不会让自己更加光明...
We must strive to achieve universal security. The world has been very unstable in recent years, with many countries and regions suffering from wars, and people being displaced. The international community urgently hopes to eliminate the roots of conflict and war and find fundamental solutions for lasting peace and stability in the world. Facts show that continuously expanding military alliances, extending one's sphere of influence, and squeezing other countries' security space will inevitably create a security dilemma, leading to insecurity for all countries. Only by adhering to a new security concept that is common, comprehensive, cooperative, and sustainable can we find a path to universal security...
我们要努力实现普遍安全。这些年世界很不太平，不少国家和地区饱经战乱、人民颠沛流离。国际社会迫切希望消除冲突和战争的根源，找到世界长治久安的根本之策。事实表明，不断扩大军事同盟，拓展自身势力范围，挤压别国安全空间，必将造成安全困境，导致各国都不安全。只有坚持共同、综合、合作、可持续的新安全观，才能走出一条普遍安全之路...
We must insist on civilizational exchange and mutual learning. A single flower does not make a spring, while a hundred flowers blooming together bring beauty to the world. Diversity is the essence of human civilization. Precisely because the history, culture, and systems of various countries are different, we need to exchange and learn from each other, complement each other's strengths, and progress together. Deliberately hyping up the so-called binary opposition between "democracy and authoritarianism" or "freedom and despotism" can only lead to a divided world and civilizational conflict.
我们要坚持文明交流互鉴。一朵鲜花打扮不出美丽的春天，百花齐放才能让世界春色满园。多姿多彩是人类文明的本色。正因为各国历史、文化、制度不尽相同，才需要交流互鉴、取长补短、共同进步。蓄意鼓噪所谓“民主和威权”、“自由和专制”的二元对立，只能造成世界割裂、文明冲突。
BRICS Summit: China President Xi Skips Scheduled Speech to Business Forum - Bloomberg
Chinese President Xi Jinping skipped a business forum in South Africa where he was scheduled to deliver a speech, sending Chinese Commerce Minister Wang Wentao instead.
The leaders of Brazil, India and South Africa on Tuesday all addressed the event, a prelude to a BRICS summit in Johannesburg. Russian President Vladimir Putin delivered a pre-recorded video message — he missed the gathering of emerging-market powers to avoid an international arrest warrant issued by the International Criminal Court.
2. Xi meets with South Africa’s President
[视频]习近平抵达约翰内斯堡出席金砖国家领导人第十五次会晤并对南非进行国事访问
CCTV on Xi's arrival in South Africa. He looks fine leaving the plane, though this CCTV Evening News report does not show him slowly descending the stairs from the plane to the tarmac.
Xi calls on China, S. Africa to strengthen four partnerships in golden era-Xinhua
Xi made the remarks during his meeting with his South African counterpart, Cyril Ramaphosa, here in the country's administrative capital.
Ahead of his arrival, Xi said in his signed article published in South African media that the blossoming China-South Africa relationship "has entered a 'golden era,' enjoying broad prospects and a promising future."
While meeting with Ramaphosa, the Chinese leader called on both sides to be strategic partners of high-level mutual trust, adding that "camaraderie and brotherhood" are the true quality of bilateral ties.
The two sides should strengthen exchanges and cooperation between their legislatures, political parties, militaries and localities, and continue to support each other on issues concerning each other's core interests and major concerns, said Xi.
The Chinese side is willing to strengthen inter-party exchanges and training cooperation with South Africa, and help the African National Congress (ANC) with building the African Leadership Institute, he added...
South Africa was the first African country to join the Belt and Road cooperation. The pie of bilateral cooperation is getting bigger as South Africa's wines, rooibos tea, and aloe vera gels are trending in the Chinese market while automobiles and home appliances with Chinese brands gain increasing popularity among South African households.
BRICS Summit: Xi Calls on China, South Africa to Seek Greater Say Globally - Bloomberg
“We support substantive progress in the G20 and support South Africa employing a greater role,” he told reporters at a joint press conference with South African President Cyril Ramaphosa in Pretoria, a prelude to this week’s BRICS summit starting on Tuesday. “We are global partners that should uphold justice.”
Xi awarded Order of South Africa-Xinhua
The award ceremony came following Xi's meeting with Ramaphosa during his state visit to South Africa
Video of Xi receiving the award - 独家视频丨习近平出席仪式 接受南非总统授予“南非勋章”
Some highlights:
3. South Africa pledged continuous support for China on issues concerning its core interests and major concerns. South Africa reaffirmed its commitment to the one-China policy. China reiterates its respect and support for South Africa's efforts to safeguard its national interests and social economic development and to better the livelihoods of its citizens. The two sides further agreed that Head-of-State diplomacy is particularly significant to developing China-South Africa relations. They agreed to maintain regular contact between the two heads of state to increase communication and coordination on major issues of mutual interest and chart the course for bilateral relations....
7. China undertook to continue to support South Africa in addressing its energy security challenges, both in respect of generation and transmission infrastructure...
11. The two sides agreed to enhance cooperation in international affairs and multilateral institutions, jointly uphold the UN-centred global system, an equitable international order underpinned by international law, and the basic norms governing international relations, based on the purposes and principles of the UN Charter, including to uphold the rights and interests of developing countries jointly and respect for national sovereignty and territorial integrity. South Africa has taken note of the efforts taken by China to promote and foster relations between states predicated on inclusive multilateralism and applauded China for its leadership role in promoting peaceful global cooperation
China says African countries want industrialisation over infrastructure | Reuters
African countries want China to shift its focus from building infrastructure on the continent to local industrialisation, China's top Africa diplomat said on Tuesday at a briefing on the sidelines of the BRICS summit in South Africa.
"African integration is already escalating and many African countries (have) asked China to consider (a) shift (of) our focus," Wu Peng, director-general of China's department of African affairs at its foreign ministry, said.
3. BRICS and the global order
Page 2 Tuesday People's Daily Commentary by "Huanyu Ping 寰宇平", Huanyu means "universe or whole earth. Some excerpts:
Currently, the reform of the global governance system is at a historical turning point. The rapid development of emerging market countries and developing countries has continuously enhanced their international influence. Faced with an increasing number of global challenges, the Western-dominated international order, characterized by "post-colonial rule, double standards, and disregard for the concerns of developing countries," has not truly aligned with the common needs of emerging market countries and developing countries for peace, development, and cooperation. Some Western powers' strong push for the so-called "rules-based international order" has become a stumbling block to world economic development and social progress.
当前，全球治理体制变革正处在历史转折点上。广大新兴市场国家和发展中国家快速发展，国际影响力不断增强。面对日益增多的全球性挑战，以“后殖民统治、双重标准和忽视发展中国家的关切”为特点的西方主导的国际秩序，没有真正契合广大新兴市场国家和发展中国家谋和平、求发展、促合作的共同需求。一些西方大国强推所谓“基于规则的国际秩序”，更是成为阻碍世界经济发展和社会进步的绊脚石。
The BRICS countries adhere to genuine multilateralism and make decisions based on the principles of equality and consensus. As a representative achievement of BRICS cooperation, the New Development Bank's five founding member countries have equally distributed equity and have equal voting rights, providing a new option for the governance model of multilateral development financial institutions. Considering the development of a new reserve currency based on a basket of member countries' currencies, timely initiating a new round of BRICS expansion, agreeing to invite non-BRICS countries to participate in discussions on digital economy issues... BRICS countries have made significant contributions to promoting the development of the international order in a more just and reasonable direction.
金砖国家坚持真正的多边主义，采取平等和协商一致的原则进行决策。作为金砖国家合作的代表性成果，新开发银行的五个创始成员国平均分配股权，拥有平等的投票权，为多边开发金融机构治理模式提供了一种新的选择。考虑开发基于成员国一篮子货币的新储备货币，适时启动金砖国家新一轮扩员进程，同意邀请非金砖国家参与数字经济议题讨论……金砖国家为推动国际秩序朝着更加公正合理的方向发展作出了重要贡献。
The BRICS countries actively promote the reform of the global governance system, committed to enhancing the representativeness and voice of emerging market countries and developing countries. To address the endless traditional and non-traditional security threats, BRICS countries support each other on issues involving their core interests, opting for dialogue rather than confrontation. In a series of global multilateral mechanisms such as the United Nations, G20, World Trade Organization, International Monetary Fund, and World Bank, BRICS countries actively strengthen policy communication and position coordination, emitting the "BRICS voice" and proposing the "BRICS solution," promoting the reform of the current international system in a constructive way. "Most importantly, the BRICS countries defend multipolarity and multilateralism," said Cuban President Miguel Díaz-Canel, expressing that by defending multilateralism, the BRICS countries are providing the possibility of establishing a more fair and just international economic order that benefits the globe.
金砖国家积极推动全球治理体系改革，致力于提升新兴市场国家和发展中国家的代表性和发言权。为应对层出不穷的传统和非传统安全威胁，金砖国家在涉及彼此核心利益的问题上相互支持，对话而不对抗。在联合国、二十国集团、世界贸易组织、国际货币基金组织和世界银行等一系列全球性多边机制中，金砖国家积极加强政策沟通和立场协调，发出“金砖声音”，提出“金砖方案”，以建设性方式推动现行国际体系改革。“最重要的是，金砖国家捍卫多极化和多边主义。”古巴国家主席米格尔·迪亚斯—卡内尔表示，通过捍卫多边主义，金砖国家正在为建立一个更公平公正、有利于全球的国际经济秩序提供可能性。
China’s blueprint for an alternative world order | Financial Times - James Kynge
The key to China’s blueprint is to steadily institutionalise its leadership over the developing world by creating, expanding and funding a raft of China-led groupings of countries, according to Chinese officials and commentators. They add that the aims of this strategy are largely two-fold: to ensure that a broad swath of the world remains open to Chinese trade and investment and to use the voting power of developing countries at the UN and in other forums to project Chinese power and values.
The crucial context to this strategy is that by seeking increased leadership over the global south, China is throwing in its lot with the largest and fastest-growing part of the world. The 152 countries classified as developing at the UN vastly outstrip their developed counterparts on yardsticks such as population size and population growth, GDP growth rates over the past two decades and overall contribution to global GDP growth as measured by purchasing power parity...
Another key Chinese strategy is to present itself as a global peacemaker, partly to counter the reputational damage it suffered when its strategic partner, Russia, invaded Ukraine last year. Crucial to this ambition is the Global Security Initiative (GSI), which was proposed last year by Xi and is designed as a China-led multilateral forum.Its aim is to wrest influence away from the US on global security issues while elevating its own role, officials say. Part of the strategy to achieve this is to call for a “bigger UN role in security affairs” while expanding Beijing’s own role within the UN peacekeeping hierarchy.
This focus on the UN echoes that of the GDI and highlights a crucial feature of Xi’s three initiatives: rather than seeking to create a whole new world order, Beijing’s aim is to repurpose the UN’s authority to more squarely serve China.
4. Japan to start releasing Fukushima waste water
Fukushima Nuclear Plant: How Japan is Planning to Safely Release its Wastewater - Bloomberg
No element of Japan’s work to manage the risks from the disaster has been more contentious than its plan to start on Thursday discharging into the sea more than 1 million cubic meters of treated radioactive water — enough to fill 500 Olympic-size swimming pools — that’s currently stored in about 1,000 tanks.
Japan’s Prime Minister Fumio Kishida on Tuesday confirmed the process will start on Aug. 24 after a meeting of a cabinet panel. “If there are no issues with the weather and sea conditions, we expect the discharge to begin,” Kishida said. “The Japanese government will take responsibility to make sure the proposal is carried out safely, even if it takes decades until all of the treated water is discharged.”
Tritium in Chinese nuclear wastewater above Fukushima levels - The Japan Times
The amount of radioactive tritium in wastewater from Chinese nuclear plants, recorded at 13 of the nation's monitoring points in 2021, surpassed the maximum allowable annual amount of the material contained in treated water set to be released from the Fukushima No. 1 plant, according to public data…
Chinese Foreign Ministry spokesman Wang Wenbin has stressed the difference between the Fukushima water and that released by nuclear plants in normal operations, saying no comparison can be drawn between the two as the former "came into direct contact with melted reactor cores."
Sun pointed out that such an act blatantly transfers the risk of nuclear pollution to neighboring countries, including China, and the international community, and puts one's own interests above the long-term well-being of people in the region and around the world. It is extremely selfish and irresponsible. China expresses grave concern and strong opposition, he said.
China urges Japan to revoke wrong decision to dump wastewater into sea - CGTN
Japan did not adequately consult with the international community, particularly stakeholders, regarding its ocean discharge plan, said Chinese Foreign Ministry spokesperson Wang Wenbin during a regular news conference...
Noting that Japan is extremely selfish and irresponsible in transferring the risk of nuclear contamination to the world and putting its own interests above the long-term well-being of all humankind, Wang said China is seriously concerned about and strongly opposes this move and has made solemn representations to the Japanese side.
The Japanese side has failed to address the major concerns of the international community about the long-term reliability of nuclear-contaminated water purification devices, the authenticity and accuracy of nuclear-contaminated water data, and the effectiveness of monitoring arrangement, he noted.
The ocean is the common property of all mankind, he said, adding that Japan's push for the discharge of nuclear-contaminated water into the sea is unjustified, unreasonable and unnecessary.
Hong Kong and Macau to ban some Japanese seafood from August 24 - SHINE News
Hong Kong Chief Executive John Lee said the release was "irresponsible" and posed "impossible risks to food safety and the irreparable pollution and destruction of the marine environment".
Lee, in a post on his Facebook account, said he had told Environment Secretary Tse Chin-wan and relevant departments to immediately activate import controls to protect food safety and public health.
"There is no timetable at this point about how long the ban will last," Tse told a press conference, adding that a decision would depend on data and information from the Japan after the discharge.
In July, Hong Kong said the ban would cover imported aquatic products from the Japanese regions of Tokyo, Fukushima, Chiba, Tochigi, Ibaraki, Gunma, Miyagi, Niigata, Nagano and Saitama.
Chinese Vice Foreign Minister Sun Weidong on Tuesday summoned Japanese Ambassador to China Hideo Tarumi to lodge solemn representations over Tokyo's announcement of dumping nuclear contaminated wastewater from the Fukushima nuclear plant into the ocean starting from Thursday.
Sun pointed out that such an act blatantly transfers the risk of nuclear pollution to neighboring countries, including China, and the international community, and puts one's own interests above the long-term well-being of people in the region and around the world. "It is extremely selfish and irresponsible. China expresses grave concern and strong opposition," he said.
China and Russia have accused Japan of basing its decision to dispose of radioactive waste water from the Fukushima nuclear plant in the sea on economic rather than scientific grounds. They made the charge in a series of letters to the International Atomic Energy Agency, including a joint list of technical questions to Japan on July 26 questioning the choice of water discharge when another potential option, vapour release, “has less impact on the ocean and neighbouring countries”, and is less likely to cause leakage or pollution
5. Philippines resupplies grounded ship
South China Sea: Philippines resupplies Spratlys shoal troops - BBC News
China's repeated attempts to block supply missions to Second Thomas Shoal formed part of the Philippines' winning case before the UN-backed Permanent Court of Arbitration at the Hague in 2014.
The tribunal ruled that China's claim based on ancient maps is ill-founded. However, Beijing has refused to recognise the ruling and instead built artificial islands on disputed reefs.
After the supply mission in early August was blocked, China's foreign ministry asked the Philippines to remove the ship on Second Thomas Shoal, claiming Manila had "repeatedly made clear promises to tow away the warship illegally 'stranded' on the reef". It did not say who made the promise.
China Coast Guard (CCG) on Tuesday restricted Philippine vessels trespassing into waters near China's Ren'ai Jiao (also Ren'ai Reef) in the South China Sea but under humanitarian consideration, temporarily allowed the transport of food to the Philippines' "grounded" warship.
Two supply ships and two coast guard ships of the Philippines on Tuesday trespassed into waters near Ren'ai Jiao of China's Nansha Islands, with the CCG sending a stern warning to the Philippine vessels, while carried out tracking and monitoring throughout their entire courses and made effective restrictions according to the law, Liu Dejun, a CCG spokesperson, said in a statement on the day.
Given that the Philippine side did not carry illegal building materials used for large-scale reinforcement, under a humanitarian consideration, a temporary special arrangement is made for the Philippine side to transport necessary living materials including food to its "grounded" warship, Liu said.
The Sierra Madre stand-off: What can the Philippines do against China? | The Straits Times
Indonesia, as the current Asean chair, has after all underlined the importance of “maritime stability and predictability”, as Foreign Minister Retno Marsudi strongly noted at an Asean maritime forum in August. An Asean chair’s statement, for example, calling for restraint while reiterating support for Manila’s sovereign rights under the United Nations Convention on the Law of the Sea (Unclos) would be helpful, particularly if produced alongside coordinated individual statements by other South China Sea claimants, primarily Malaysia and Vietnam.
6. Downturn means PRC even less likely to overtake US economic power?
China’s “still widely underappreciated” economic downturn reduces the likelihood that it will overtake the US in the next 20 years and gives Washington an opportunity to gain influence over countries that have become indebted to Beijing, an influential US government advisory panel was told on Monday.
“The severity of China’s ongoing economic weakness is still widely underappreciated, and the United States no longer faces a growth challenge from China,” Logan Wright of risk consultancy Rhodium Group said in a US-China Economic and Security Review Commission (USCC) hearing in Washington.
The full hearing was China's Current Economy: Implications for Investors and Supply Chains
Wright's testimony in PDF
Wang Tao: UBS Downgrades China 2023 GDP Forecast - Caixin
We have downgraded China’s GDP growth forecasts to 4.8% for 2023 and 4.2% for 2024, largely due to a weaker property sector with little additional offset, and as we foresee softer external demand. We also see lower inflation in 2024, and revise our USDCNY forecast to 7.15 for end 2023 and 7.0 for end 2024...
We believe growth is still the top priority for the government (while not the only priority, perhaps the overwhelmingly dominant one). However, the complex economic challenges and limited policy options may require careful deliberation among key stakeholders in the government and fine balancing of different tools. How to provide the right support to stabilize the property market where demand/supply fundamentals have changed and excess construction and debt have accumulated? How to deliver sufficient funding to local governments when they are struggling to service their debt, are known to have inefficient spending, and are already spending 90% of the country’s fiscal resources? In addition, the government also faces structural challenges, including an aging population and restrictions of access to advanced technology abroad, and is supposed to steer the economy away from the property- and local government-led growth toward a more sustainable and high quality one. The internal deliberation may take time and result in delays in delivering effective policy responses.
EP-058 许成钢：通缩下的中国会走苏联的老路吗？ – 不明白播客
Prof Xu Chenggang talks to Yuan Li about the current state of the PRC economy and the politics behind it
7. Raimondo to Beijing as US announces Tibet-related visa restrictions
Commerce Secretary Gina Raimondo to Visit China Next Week - The New York Times
Ms. Raimondo will meet with senior Chinese officials and American business leaders between Aug. 27 and Aug. 30, the Department of Commerce said in an announcement Tuesday. The department said that Ms. Raimondo was looking forward to “constructive discussions on issues relating to the U.S.-China commercial relationship, challenges faced by U.S. businesses, and areas for potential cooperation.”
US Commerce Secretary Raimondo Will Visit China Next Week - Bloomberg
White House National Security Advisor Jake Sullivan on Tuesday said he did not expect “a big outcome that’s fundamentally transformative.”
“We’re not sending cabinet officials to China to change China, nor do we expect these conversations to change the United States. Rather, we each have the opportunity, through this high-level engagement, to ensure that there is a basic stable foundation in the relationship, even as we compete intensively in a number of domains,” Sullivan told reporters.
One potential consequence of the visit could be a working group with China’s commerce ministry that would discuss export controls as well as Chinese companies that have been added to a Commerce Department export blacklist.
U.S. Eases Export Restrictions on 27 Chinese Entities - Caixin Global
“The ability to verify the legitimacy and reliability of foreign parties receiving U.S. exports through the timely completion of end-use checks is a core principle of our export control system,” Assistant Secretary for Export Enforcement Matthew Axelrod said in a statement.
The removals, set to become effective upon publication in the Federal Register on Tuesday, include a number of Chinese tech companies such as DK Laser Co. Ltd., Jialin Precision Optics (Shanghai) Co. Ltd. and Yunnan Tianhe Optoelectronic Co. Ltd., according to a BIS document.
U.S. removing export controls on Chinese entities good for normal trade: MOC-Xinhua
China's commerce ministry said Tuesday that the U.S. Department of Commerce's decision to remove 27 Chinese entities from its export-control "unverified list" is conducive to normal bilateral trade.
In a statement, the ministry said the move is in line with the common interests of the two sides, and indicates that solutions beneficial to the two countries' enterprises can be found as long as the two sides follow the principle of frank cooperation and mutual benefit
White House: China economic data less transparent in recent months | Reuters
Sullivan said Raimondo would carry the message that the United States was not seeking to decouple from China, but it focused on "protecting our national security and ensuring resilient supply chains alongside our allies and partners while we continue our economic relationship and our trade relationship".
The State Department is taking steps to impose visa restrictions under the authority of Section 212(a)(3)(C) of the Immigration and Nationality Act on People’s Republic of China (PRC) officials for their involvement in the forcible assimilation of more than one million Tibetan children in government-run boarding schools. These coercive policies seek to eliminate Tibet’s distinct linguistic, cultural, and religious traditions among younger generations of Tibetans.
We urge PRC authorities to end the coercion of Tibetan children into government-run boarding schools and to cease repressive assimilation policies, both in Tibet and throughout other parts of the PRC. We will continue to work with our allies and partners to highlight these actions and promote accountability.
The US State Department said the new restrictions would apply to current and former officials involved in education policy in Tibet but did not give further details, citing US confidentiality laws on visa records.
The United States separately imposed sanctions in December on two top-ranking Chinese officials, Wu Yingjie and Zhang Hongbo, over what Washington said were widespread human rights violations in Tibet.
Never let a tragedy go to propaganda waste? - Maui wildfire tragedy once again exposes US’ incompetence in natural disaster, emergency rescues - Global Times
the international community has witnessed just how much this wildfire has turned part of Maui, once a land of idyllic beauty, into a scene of horror, carnage, and ruin straight out of a Hollywood horror movie. Worse still, the island's broken early warning system, slow and poorly coordinated rescue efforts, and the US' disappointing disaster response and mobilization mechanisms have, to some extent, transformed the natural tragedy into a man-made one, observers pointed out.
8. Arm files for US IPO, details China risks
Arm Spent 3,500 Words Detailing Its Risks in China in IPO Filing - Bloomberg
In a chunky section of the IPO filing’s 330-page prospectus, the British designer of chips detailed a litany of challenges in the country: a concentration of business in the People’s Republic of China that “makes us particularly susceptible to economic and political risks affecting the PRC”; a downward spiral in Asia’s biggest economy; rising political tensions with the US and the United Kingdom; and the potential complete loss of control over its pivotal Chinese subsidiary.
Arm runs most of its China business through an independent unit, called Arm Technology Co., which is its single largest customer and accounted for about 24% of its sales in the year ended March. But Arm and its parent, Japan’s SoftBank Group Corp., don’t control that business.
Instead, SoftBank owns approximately 48% of Arm China, with the majority held by local investors, including entities affiliated with Allen Wu, Arm China’s former chief executive officer who was fired over allegations of conflicts of interest in 2020. The prolonged power struggle still leaves open the risk of leadership changes and affect regional operations.
“We depend on our commercial relationship with Arm China to access the PRC market,” the filing said. “If that commercial relationship no longer existed or deteriorates, our ability to compete in the PRC market could be materially and adversely affected.”
Caixin In Depth: How SoftBank Wrestled Back Control of Arm China - June 2022
Some questions regarding Arm China’s shareholding and business remain unanswered.
Although Arm’s shareholding in the China venture has been transferred to an SPV, the relevant changes to its domestic business registration update have not moved forward because both the Shenzhen government and Hopu have not approved the transfer. Its not yet been decided how this transfer should be registered, an industry insider with knowledge of the case said.
Part of the long section trying to dance around the theft of Arm China:
The fact that Arm China operates independently of us exposes us to significant risks. Arm China’s value to us as a customer is dependent on Arm China’s business results, which are, in turn, subject to substantial risks that are outside of our control. For example, Arm China may not commit the necessary resources to market and sell our products to PRC end-users of our semiconductor IP products. Arm China also may fail to comply with the laws and regulatory requirements applicable to its business, which could limit its ability to market or sell our products in the PRC. In addition, Arm China may fail to attract, train, retain and motivate highly skilled managerial and technical personnel necessary for its business. Arm China may also have difficulties accessing funding or enforcing contractual relationships. The realization of these or other risks related to Arm China’s business may have a material adverse effect on Arm China’s business, results of operations, financial condition and prospects and, by extension, our own. Since Arm China operates independently of us and we do not control Arm China, our ability to take measures to address the various risks facing Arm China is limited. If any of such risks related to Arm China’s business are realized, our revenue could materially decline and our results of operations could be materially adversely affected.
Under the IPLA with Arm China, Arm China’s payments due to us are determined based on the financial information that Arm China provides to us. Accordingly, similar to our other royalty customers, we are dependent on Arm China providing us with reliable and timely information. We perform various procedures to assess the reasonableness of Arm China’s data, and the IPLA includes rights for us to audit Arm China’s activities to ensure compliance with the IPLA. In the past, we have had issues obtaining timely and accurate information from Arm China. We believe the underlying problems causing our past inability to obtain such information have been resolved, but we can provide no assurances that our access to Arm China’s records will not be inhibited again in the future. If Arm China does not provide us with timely and accurate information, our revenue could materially decline and our results of operations could be materially adversely affected. We are also dependent on Arm China paying us the amounts that it owes us in a timely manner and in full. In the past, we have received late payments from Arm China and have had to expend company resources to obtain payments from Arm China. Although these historical issues did not have a material impact on our operations, any future failure to pay us the amounts we are owed under the IPLA could have a material adverse effect on our business, results of operations, cash flows and financial condition.
Furthermore, Arm China has possession of or access to certain material IP and customer data pursuant to the IPLA and other commercial arrangements with us. Although Arm China is contractually obligated to protect this IP and data, we are limited in our ability to monitor or influence the manner in which Arm China protects our IP and data from theft, loss or misuse. Arm China operates its own separate information technology infrastructure. Aside from customary audit rights and protections under the IPLA, we are therefore unable to independently assure the adequacy of protections that Arm China implements with respect to its possession and/or access to our IP and data.
In addition, under the IPLA with Arm China, we are contractually obligated to indemnify both Arm China and its PRC customers that sublicense our IP in the event that either Arm China or such customers incur damages or costs in lawsuits, administrative proceedings or similar actions based upon a claim that our IP infringes the IP of a third party. The liability that we incur to Arm China or its PRC customers under such provisions could be significant and have a material adverse effect on our results of operations and liquidity.
Additionally, since April 2022, Allen Wu, the former chief executive officer of Arm China, and certain entities under his effective control, have initiated several lawsuits in the courts of the PRC seeking to challenge certain aspects of Arm China’s corporate governance and the actions of Arm China’s board of directors. To date, all cases that have been resolved at the trial court level have been resolved favorably to Arm China but are subject to appeal. In the event that certain of these cases were to be decided adversely to Arm China, it could result in further changes to Arm China’s corporate governance and management structure, which could reduce SoftBank Group’s ability to conduct effective oversight of Arm China and result in a material adverse effect on our business, results of operations, financial condition and prospects.
Investors sound alarm over Arm’s exposure to China | Financial Times
Managers at four separate funds considering an investment in Arm told the Financial Times that the prospectus for the planned listing on Nasdaq in September confirmed some of their fears about the global semiconductor industry as stances harden in Washington and Beijing...
Arm’s prospectus skips over the stand-off surrounding its exit from its problematic Chinese joint venture. The UK group said it transferred its 48 per cent stake in Arm China to a SoftBank entity last year. According to people familiar with the move, Chinese officials concerned about losing Arm’s participation in the local unit have declined to register the share transfer.
Lawyers and officials in China say that without the official government registration, the status of the share transfer is complicated. “If a transfer is not registered, it’s just a civil matter between the two shareholders, and the true shareholders remain as shown in the registry system,” said Xia Hailong, a lawyer at the Shanghai Shenlun law firm.
Business, Economy and Trade
Yicai - Plots Go Unsold In China’s Big Cities as Developers' Appetite for Land Stays Weak There were no bidders for two plots in Shenzhen, located in outlying Longgang district, in a land auction held in early August. It is the first time this year that residential plots in the hi-tech hub have gone unsold. And in another auction in the city held on Aug. 18, one plot out of the four up for grabs did not sell. After a fairly upbeat first half, the tide began to turn in July. That month, 26.5 percent of land parcels in key cities went unsold, the highest since last year, according to think tank China Real Estate Information Corp.
China urgently needs to address economic uncertainty - EU business group chief | Reuters "There is this doubt about where China is going, so I think it is a matter of urgency to go out and address these uncertainties," Jens Eskelund, President of the European Chamber of Commerce in China, told Reuters in reference to a policy response he said was sending "mixed messages". "The next few months, we believe, would be actually quite important in terms of rebuilding confidence in the future trajectory of China," he added during an interview at the group's Beijing headquarters on Monday.
财政部连发六份税收政策 涉及CDR、期货、沪深港通等_手机新浪网 The Chinese finance ministry issued a slew of preferential tax policies targeting investors and entrepreneurs. These policies will affect stock buyers, income tax for business partners and investors of crude oil futures.
Chinese LGFVs Get Record Investor Demand for Short-Term Debt - Bloomberg Orders for new LGFV notes maturing in less than a year have exceeded issuance by 4.6 times so far this month, which would be a record, according to a report from Huaan Securities Co. The subscription ratio is 3.9 for notes maturing in 1 to 2 years, the highest in nearly a year.
刘梦熊：问题在经济 根子在政治 | 早报 Lew Mon-hung attacks Xi Jinping in an oped for Singapore's Lianhe Zaobao, says politics are behind the economic mess in the PRC
Understanding China’s future potential by studying a small 4th-tier city (Part 1) by
The article we are sampling today is about a nondescript city called Gaoyou. As the author Qin Shuo pointed out, the reason for telling the story of this small city is not because there is anything special about it, but rather, because there is nothing special about it. Gaoyou has no abundant resources, no fancy high-tech, no star enterprises, and is not somewhere young talents would think of for career. It is, however, exactly what most of China’s thousands of cities and counties look like. But most of Chinese people live in a city like Gaoyou. So only by understanding China at this granular level, can one have a real pulse on what China will develop into amidst all the pessimism that we are seeing today.三部门：聚焦加快建设农业强国 聚焦统筹乡村基础设施和公共服务布局 - 21经济网 Three ministries have unveiled an action plan aimed at strengthening rural infrastructure and improving standards ranging from agricultural production and safety to rural housing standards. Part of the goal is to amend 1000 standards by 2025 to align them better with international standards.
合肥出台总部经济10条：总部企业将上市主体迁入的，奖励300万元 Hefei, capital of Anhui Province, is looking to attract companies to base their headquarters there by awarding a one-time cash reward of up to 3 million RMB. The announcement, contained in a guideline released by the municipal government, also said the city will step up lending to these firms as part of a plan to develop the so-called “headquarter economy.” By 2025, Hefei wants its “headquarter companies” to exceed 150.
Yicai - Chinese Airlines Get Approval for More US Flights The US Department of Transportation said yesterday the new flights are Air China’s weekly Beijing-Los Angeles and Beijing-New York flights, China Eastern Airlines’ twice-weekly Shanghai-Los Angeles flights and China Southern Airlines’ twice-weekly Guangzhou-Los Angeles flights.
Deal to Double China Flights Signals U.S. Airlines’ Stronger Hand - WSJ The number of U.S.-China flights in July was 97% lower than in the same month of 2019, according to Cirium, an aviation analysis company. That is the reverse of flights between China and the U.K., which were 3% below pre-Covid levels in July; those with Australia were close to 60% of their 2019 level, coinciding with a thaw in ties as the two sides sought to resolve a trade dispute.
China Budget Deficit Shrinks Despite Need For Economic Boost - Bloomberg The broadest measure of the fiscal gap — the so-called augmented deficit — was 3.3 trillion yuan ($449 billion) in the first seven months of this year, down 37% from the same period in 2022, according to Bloomberg calculations based on data released by the Ministry of Finance on Monday. Total revenue rose 6%, while spending was down 4.8% in the period.
Beijing Hyundai puts Chongqing plant up for sale | Reuters Beijing Hyundai Motor has put its Chongqing plant up for sale at a starting price of 3.68 billion yuan ($505 million), as the South Korean automaker rejigs its strategy in China amid fierce price competition and slowing demand. Beijing Hyundai is selling the land use rights, equipment and other facilities belonging to its plant in the southwestern Chinese city of Chongqing, according to a disclosure on the China Beijing Equity Exchange that was published on Aug. 11.
China’s Pension Growth Dwindles as Population Ages, Workforce Shrinks - Caixin In May, the Ministry of Human Resources and Social Security and Ministry of Finance announced a 3.8% per capita monthly increase in basic pensions for retirees from urban enterprises, public institutions, and government agencies, lower than the 4% increase made last year. This year’s change was the 19th consecutive raise since the two ministries began adjusting pension ratios on an annual basis in 2005. By the end of July, all 31 provincial-level regions on the Chinese mainland had announced their respective adjustment ratios, which are capped at the national level. But the ratio has been falling since 2016, when the basic pension was increased by 6.5%, following an eight-year stretch of 10% rises, government data show
China’s rate caution shines light on $56tn banking system | Financial Times Worries about the profitability of China’s mostly state-owned banks have been seen as a central factor in a decision that raised questions about authorities’ willingness to take bold stimulus action. Lower interest rates generally reduce banks’ profits by narrowing the gap between the amount they pay on deposits and what they charge on loans. “Pressures on banks’ net interest margins” were “one key reason behind the smaller than expected LPR cut”, Goldman Sachs analysts said on Monday, while counterparts at Morgan Stanley pointed to policymakers’ focus on “sharp declines” in those margins.
Ant Group Will Cut Foreign Investors Out of Fast-Growing Database Business — The Information Ant’s restructuring will deprive those international investors of exposure to one of its fastest-growing businesses: OceanBase, a database management system. Ant is planning to spin off OceanBase as a separate company and subsequently buy out foreign investors’ shares of it, according to three people with direct knowledge of the plan...OceanBase’s business, of selling software to the likes of Chinese state-owned financial institutions and telecom carriers, requires it to have government licenses that bar ownership by foreign investors, these people said. The unit’s clients include state-owned Industrial and Commercial Bank of China, China Insurance, and a subsidiary of telecom carrier China Mobile, according to its website.
China Ramps Up Fight With Yuan (CNY USD) Bears to Stop Selloff Spiraling - Bloomberg “A CNH funding squeeze could be a tactical tool and a signaling device, but unlikely the go-to tool in isolation,” Citigroup Inc. strategists Philip Yin and Gaurav Garg wrote in a client note. “Overall, the combination of rate cut and other FX tools suggest that fundamental-driven yuan weakness is allowed but the pace is managed.”
Wall Street Sees No End to Yuan (CNY USD) Losses Despite China Pushback - Bloomberg “The fundamental case for additional yuan weakness remains very much intact,” JPMorgan Chase & Co. analysts led by Meera Chandan, co-head of foreign exchange in London, wrote in a research report on Friday. “We see the dollar-yuan uptrend as durable, but recent events are a reminder that authorities will periodically try to disrupt one way moves.”
Sudden Rally in China Stocks Has Traders Scratching Their Heads - Bloomberg In Hong Kong, the Hang Seng Index climbed nearly 2% within minutes, after a seven-day losing run that was the longest since late 2021. About half of the stocks in the index were oversold according to one technical indicator as of Monday, the highest ratio since March 2022. The CSI 300 Index, benchmark for mainland shares, finished up 0.8% after erasing a loss of as much as 0.7%. The gauge was the most oversold since early June on Monday.
Politics and Law
China's top political advisory body convenes standing committee meeting-Xinhua
Ding Xuexiang, a member of the Standing Committee of the Political Bureau of the CPC Central Committee and vice premier, attended the meeting and delivered a report.
Ding noted that the CPC Central Committee with Comrade Xi Jinping at its core attaches great importance to scientific and technological innovation, and insists on placing innovation in the core position of the overall development of the country. Ding pointed out that China has made historic achievements and undergone historic changes in its scientific and technological endeavors that have propelled it to join the ranks of innovative countries.
He called for strengthening the centralized and unified leadership of the CPC Central Committee over scientific and technological work, the organization and coordination of major national sci-tech strategic tasks, and the coordination of sci-tech work management.
China’s anti-corruption watchdog vows crackdown on misuse of flood relief funds | South China Morning Post In a statement on Tuesday, the Central Commission for Discipline Inspection (CCDI) called for local party committees and governments to treat post-disaster reconstruction as their “main political responsibility and the most urgent civil project” to ensure people’s livelihoods and restore order as soon as possible. “[Corruption-fighting bodies] must urge governments to repair damaged infrastructure such as transport, communications and electricity, push for the resumption of work and production, speed up repair of schools, hospitals and aged care homes … and make sure people can move back home or into new housing before winter,” it said. // 加强监督检查 保障灾后恢复重建廉洁高效——中央纪委国家监委网站
China to implement electronic archiving of documents, government service files - State Council The General Office of the State Council released a circular on Aug 22 to promote electronic management of documents for government services in all industries and fields, in order to support e-government services and benefit enterprises and the public. According to the circular, the measures apply to the archiving of electronic documents for government services and the management of electronic records handled by government service institutions. Electronic documents for government services can be archived electronically and transferred to related departments, and will no longer be archived and transferred on paper unless otherwise provided by laws and administrative regulations, the circular said. // 国务院办公厅印发《政务服务电子文件归档和电子档案管理办法》-新华网
Cigarette Industry Crackdown Nets Another Top Executive - Caixin A businessman who controls a Shanghai-traded cigarette packaging materials supplier became the latest target on investigators’ radar in a corruption crackdown sweeping China’s tobacco industry. Xu Shanshui, controlling shareholder and chairman of Anhui Genuine New Materials Co. Ltd., was placed under detention by the anti-graft authority in Jiangxi province for investigation on suspicion of bribery, the company said in a filing.
Xi’s Age of Stagnation | Foreign Affairs - Ian Johnson In May, I visited the editor of an underground magazine in a relatively remote part of south Beijing. He publishes a fortnightly journal featuring contributions by academics across China, who often use pen names to protect their identities. Their articles challenge the party’s account of key crises in its history, filling in events that have been whitewashed. Some of the editing work is now done by Chinese graduate students working abroad. This model of underground digital publishing was adopted last year by protesters, who used VPNs to upload videos to Twitter, YouTube, and other banned sites. Such online platforms function as storehouses, allowing Chinese people to download information that the state is trying to suppress.
'Chinese activist Kwon Pyong' fled to South Korea on jet ski - BBC News A man believed to be a Chinese rights activist has been arrested in South Korea after an apparent attempt to flee there on a jet ski. The country's coast guard said the man had travelled about 300km (186 miles) across the Yellow Sea using binoculars and a compass, but then got stuck. Local reports named him as Kwon Pyong, a critic of President Xi Jinping, but his identity has not been verified.
Foreign and Defense Affairs
Russian warships visit China following joint naval patrol in Pacific Ocean - Global Times A ship detachment of the Russian Pacific Fleet is visiting China following intensive interaction between the two countries' navies over the past month, which demonstrates a high level of mutual trust and military cooperation, experts said on Tuesday. The Russian warships made a port call in Qingdao, East China's Shandong Province, after the third China-Russia joint naval patrol of Pacific Ocean waters, Russia's Ministry of Defense said in a press release on Monday.
UK FM's possible Beijing trip a 'tentative contact' to reboot ties; necessary atmosphere need to be created - Global Times Given the British government's lack of autonomy and toughness in the face of pressure from the US and UK's domestic China hawks, Cleverly's possible visit may be more of a tentative contact between the two sides after the pandemic as an overture to restart relations, experts noted.
Chinese Defense Minister meets with UAE Air Force and Air Defense Commander - China Military Chinese State Councilor and Defense Minister General Li Shangfu met with visiting Commander of the UAE Air Force and Air Defense Major General Ibrahim Nasser Mohamed Al-Alawi in Beijing on Tuesday...General Li noted that China is willing to work with the UAE to implement the strategic consensus reached by the two heads of state and build China-UAE relations into a model of state-to-state relations. With the care and support of the two heads of state, the development of military relations between the two countries has entered the fast lane and the exchanges and cooperation in various fields have also achieved gratifying results. The two air forces have carried out fruitful cooperation in recent years, adding new dimensions to the mil-to-mil relations. China is ready to work with the UAE to further deepen their military cooperation.
Foreign Ministry Spokesperson Wang Wenbin’s Regular Press Conference on August 22, 2023
Wang Wenbin: From August 16 to 21, a delegation from the Organization of Islamic Cooperation (OIC) visited China and made a trip to Xinjiang at the invitation of the Chinese side. The delegation comprised representatives from 23 countries and two OIC Assistant Secretaries-General.
During its stay in Beijing, the delegation held meetings with officials from departments including the Foreign Ministry and the United Front Work Department of the Communist Party of China Central Committee and held exchanges with the China Islamic Association. During its trip to Xinjiang, the delegation met with member of the Political Bureau of the CPC Central Committee and Party Secretary of the Xinjiang Uyghur Autonomous Region (XUAR) Ma Xingrui and Deputy Party Secretary and Chairman of the government of the XUAR Erkin Tuniyaz. The delegation traveled to Urumqi, Kashgar, the Kizilsu Kirgiz Autonomous Prefecture and Changji, where they saw an exhibition on counter-terrorism and de-radicalization and visited the Xinjiang Islamic Institute, the ancient city of Kashgar and projects of green development and rural revitalization. They also visited Uyghur families and religious figures and prayed together with local Muslims at a mosque.
Members of the delegation spoke highly of China’s economic and social progress and commended the Chinese government for its strong commitment to protecting the multi-ethnic culture in Xinjiang. They noted the success of China’s people-centered governance in Xinjiang, including the effective counter-terrorism and de-radicalization policy, which has brought peace and happiness to people of all ethnic backgrounds in Xinjiang. They also pointed out the huge gap between what they saw on this trip and how certain countries depicted the region and that the narratives and accusations attacking Xinjiang’s human rights conditions couldn’t be further from the truth.
The OIC delegation’s objective and just observations prove once again that people can tell right from wrong. A handful of countries’ scheme to manipulate Xinjiang-related issues and smear China will not succeed. We welcome more friends from around the world to visit Xinjiang and see for themselves the peace, dynamism, harmony and freedom in Xinjiang.
Chinese Children Trapped in Myanmar Scam Centers: Report - SixthTone On Tuesday, a news clip from a news station in eastern Fujian province jumped to the top of social media discussions. In the clip, it was reported that at least 11 Chinese minors have apparently been tricked into joining scam companies in Myanmar since March. In the clip, which has been reposted widely, including by the official account of the Ministry of Public Security on microblogging platform Weibo, worried parents say they have found it difficult to communicate with their children, with screenshots of messages suggesting that their children are under tight control.
North Korea’s first intl commercial flight in 3 years lands in Beijing, welcomed as ‘positive sign’ for border reopening - Global Times Air Koryo flight JS151 from Pyongyang was believed to have arrived at Beijing Capital Airport at 9:17 am, according to a screenshot provided by VariFlight on Tuesday. It was North KOrean flag carrier Air Koryo's first commercial arrival into China since early 2020, after North Korea closed its borders in response to the outbreak of what was later called the COVID-19.
Chinese VP meets Tajik National Assembly chairman-Xinhua Explaining the Chinese modernization, Han said China sincerely welcomes Tajikistan to take a ride on the express train of China's economic development and realize its own modernization. Rustam Emomali said developing ties with China is a diplomatic priority for Tajikistan and the country views China as a reliable partner on the international stage. He expressed his country's willingness to deepen cooperation of various fields to promote further development of the Tajikistan-China comprehensive strategic partnership.
China's top legislator calls for strengthened cooperation with Hungarian National Assembly-Xinhua Mátrai expressed the hope that exchanges and cooperation between the legislative bodies would be strengthened to deepen the comprehensive strategic partnership between Hungary and China, saying the Hungarian National Assembly is ready to contribute to enhancing the friendship between the two peoples.
Montenegro's big debt to China over contentious new highway – DW – 08/22/2023 Montenegro finds itself in a financial crunch after taking on a giant loan from China to build a highway. The Chinese construction crew also may have permanently damaged a UNESCO heritage site.
German foreign minister Annalena Baerbock warns against relying on China
In a forceful speech in which she repeatedly name-checked China and warned Chinese President Xi Jinping against invading Taiwan, Annalena Baerbock said Beijing’s rise was challenging the “very fundamentals of how we live together in this world”...
China has transformed so markedly that “all economic interactions” must now be viewed through a geopolitical lens, she said.
“China is not always as predictable, transparent and reliable as is needed to allow a stable economic relationship,” she said. “Australians know what this means.”
An address by Annalena Baerbock Foreign Minister of Germany - YouTube
Chinese navy’s floating hospital visits Solomon Islands as part of soft-power mission — Radio Free Asia The floating hospital, which arrived at the capital Honiara’s port on Saturday, has also visited Kiribati, Tonga and Vanuatu as part of its current mission to provide free medical treatment in Pacific island nations, many of which struggle to provide sufficient basic healthcare. The U.S. Navy hospital ship, Mercy, visited the Solomon Islands in August last year and will again be docked in Honiara in November to provide medical care when the city hosts the 24-nation Pacific Games.
The AIIB’s former communications chief on why he blew the whistle - The Economist I had concerns about whether the bank was controlled by its largest shareholder, the Chinese government. aiib’s published governance structure, which stresses the bank’s apolitical nature, allayed my concerns. I was also reassured by the list of shareholders, which included several Western democracies, including my own country, Canada. The bank’s recruiters told me that aiib was “world-class”, a “new kind” of multilateral development bank “for the 21st century”. It didn’t take me long to realise that the reality did not match the messaging. Inside the bank, ccp members wield power in many key positions. Systemic surveillance breeds pervasive mutual suspicion, which smothers opinions that might differ from the party line.
China’s military academies enrol ‘record 17,000 high school graduates’ as youth joblessness soars | South China Morning Post The total intake – spread across China’s 27 military academies that accept high school graduates – was 2,000 more than last year, the People’s Liberation Army (PLA)’s official newspaper reported on Tuesday. Almost all places for this cohort had been filled, the PLA Daily report said.
Hong Kong
Brothers of wanted self-exiled activist Anna Kwok questioned by Hong Kong national security police – reports - Hong Kong Free Press HKFP Hong Kong national security police have taken away the brothers of wanted activist Anna Kwok for questioning, according to local media outlets citing sources. It is the latest move in authorities’ investigations into eight overseas pro-democracy figures facing arrest warrants and HK$1 million bounties.
People who seek to endanger national security commonly engage in such acts under the pretext of “peaceful advocacy” and “artistic creations,” Hong Kong’s security chief has claimed in a response to a Danish sculptor who has demanded the return of a 1989 Tiananmen crackdown monument seized under the national security law.
The seizure of any property or exhibit for criminal investigation or criminal proceedings linked to national security offences was conducted in accordance with legal and judicial authorisation, Secretary for Security Chris Tang said in a letter on Monday to artist Jens Galschiøt, who created the Pillar of Shame statue.
Hong Kong court upholds minimum sentences for breaching Beijing-imposed security law | AP News The judges unanimously dismissed Lui’s appeal and ruled that the minimum penalty of five years is mandatory for those committing serious offenses in relation to secession as stipulated by the security law.
港教育局要求新聘教师须通过国安法测试 | 早报 Starting from September this year, all newly hired teachers in Hong Kong must pass tests on the Basic Law and the Hong Kong National Security Law.
Taiwan
Central America parliament expels Taiwan, makes China permanent observer | Reuters The Central American Parliament on Monday voted to expel Taiwan after more than two decades as a permanent observer and replace it with China, whose growing economic influence in Latin America has increasingly marginalized Taipei. The six-nation parliament, known as Parlacen, convened in the Nicaraguan capital Managua where local legislators proposed adding China
Tech and Media
A Draft Of TikTok’s Plan To Avoid A Ban Gives The U.S. Government Unprecedented Oversight Power-Forbes
The draft agreement, as it was being negotiated at the time, would give government agencies like the DOJ or the DOD the authority to:
Examine TikTok’s U.S. facilities, records, equipment and servers with minimal or no notice,
Block changes to the app’s U.S. terms of service, moderation policies and privacy policy,
Veto the hiring of any executive involved in leading TikTok’s U.S. Data Security org,
Order TikTok and ByteDance to pay for and subject themselves to various audits, assessments and other reports on the security of TikTok’s U.S. functions, and,
In some circumstances, require ByteDance to temporarily stop TikTok from functioning in the United States.
The draft agreement would make TikTok’s U.S. operations subject to extensive supervision by an array of independent investigative bodies, including a third-party monitor, a third-party auditor, a cybersecurity auditor and a source code inspector. It would also force TikTok U.S. to exclude ByteDance leaders from certain security-related decision making, and instead rely on an executive security committee that would operate in secrecy from ByteDance. Members of this committee would be responsible first for protecting the national security of the United States, as defined by the Executive Branch, and only then for making the company money.
China ties become a fundraising hurdle for startups in the U.S. - Nikkei Asia Having a Chinese background was once a selling point for startup founders pitching to investors in the U.S., as it allowed them to cite valuable connections to and knowledge of Asia's biggest economy. Rising tensions between Washington and Beijing, however, have raised new hurdles for Chinese and Chinese American founders in the U.S. at a time when funding is becoming harder to come by for a variety of reasons. // very short-sighted
“Please do not make it public”: Vulnerabilities in Sogou Keyboard encryption expose keypresses to network eavesdropping - The Citizen Lab Vulnerabilities in Sogou Keyboard encryption expose keypresses to network eavesdropping
Society, Arts, Sports, Culture and History
CCTV Report Sparks Outcry Over Heritage Preservation in Gansu - SixthTone This uproar stems from a recent investigative program aired Saturday on China’s state broadcaster, CCTV. The program shed light on the improper utilization of building complexes built during the Ming and Qing dynasties in Tianshui, an ancient town situated along the Silk Road route. Tianshui boasts one of the best-preserved residential courtyard compounds dating back to the Ming and Qing dynasties in northwestern China. To preserve the historical buildings, the local government had launched a conservation program targeting the Xiguan area of the ancient town, which includes nearly 30 historical courtyards.
Asian elephant stumbles on 2.8 kg opium in SW China’s Yunnan - ECNS The border police station in Mengman Town of Xishuangbanna Dai Autonomous Prefecture received an alarm from local villagers that they had found four elephants roaming in nearby villages and the police rushed to the scene. When the elephants moved forward, one of them suddenly stopped. It sniffed in the grass and threw a bag out. The police opened the bag and found it contained opium, totaling 2.8 kilograms // "Opium Elephant" would probably not be as exciting a movie as "Cocaine Bear"
Lyman P. Van Slyke, pioneering scholar of Chinese history, dies at 94 | Stanford Humanities and Sciences His legacy includes establishing and administering the International Inter-University Program for Chinese Language Studies in Taipei, and co-creating the popular World Outside the West course, which he considered his “most satisfying undergraduate teaching experience,” according to a Stanford Oral History interview. // I did IUP in Taiwan 90-91, he came and spoke to us. RIP
Energy, Environment, Science and Health
China Falls Back on Coal To Meet Summer Peak Demand - SixthTone This year, as of the end of June, China’s newly installed capacity for thermal power generation was 26 GW, slightly more than the combined newly installed capacity for wind and nuclear during the same period, according to NEA data. More installed capacity has brought more thermal power generation. During the first half of the year, such generation was up by 7.5% year-on-year, shows National Bureau of Statistics’ data. This reverses the first half of last year’s decline of 6% year-on-year. China is also going full steam ahead on ensuring fuel supply for thermal power plants. From January to June this year, the country produced 2.3 billion tonnes of raw coal, 4.4% more than in the same period last year, while coal imports were up by 93%, at 220 million tonnes.
NW China’s Qinghai prohibits illegal crossing uninhabited areas for exploration following fatalities - Global Times The latest case is that one of the vehicles carrying four people on a driving holiday has gone missing while crossing the Xinjiang Lop Nur Wild Camel National Nature Reserve without authorization, resulting in four deaths, according to media reports and local police from Ruoqiang County in Northwest China's Xinjiang Uygur Autonomous Region on July 28.
Overseas arrivals with monkey pox symptoms, case contacts required to declare before entry into China - ECNS The General Administration of Customs of China (GMC) announced Tuesday that overseas arrivals who have monkeypox symptoms or have had contact with monkeypox cases should report before entering China.
Yicai - Beijing to Toughen Rules on Online Diagnosis and Treatment, Ban AI-Generated Prescriptions For online diagnosis and treatment by medical institutions, doctors must write prescriptions themselves, which will only be released to patients after being examined by pharmacists, according to the measures. AI-generated prescriptions are banned, and doctors cannot give patients any drugs before prescribing them. Real-name authentication is required for medical staff seeing patients online to ensure they are legally qualified
>How important is it for Xi to “overtake the US 超美”?
Probably not as important as overtaking Taiwan, which provides him with the obvious personal benefits. But he may believe that is also a tool to further the economic goal, by exacting greater tribute from his regional neighbors once he has the first island chain secure.
Are there any further readings on ARM China?