Xi at BRICS; Real Estate; Huawei chips; Not everyone can be a cadre
Xi reappeared for the dinner after he missed the BRICS business forum, so whatever was going does not appear to have been anything serious.
Summary of today’s Essential Eight:
Xi speech to BRICS - He hit on the expected themes, no mention of the US explicitly but clearly criticizing the US in many places and laying out an alternative view for how the world should be structured. And he again leaned towards Putin’s side in discussing Ukraine - “All nations long for a sound security environment. International security is indivisible [国际安全不可分割]. Attempts to seek absolute security at the expense of others will eventually backfire. The Ukraine crisis has evolved to where it is today because of complex reasons.”
Huawei rebuilding its chip-making capacity - Bloomberg has a report on an April presentation by the Semiconductor Industry Association (SIA) to its members discussing five companies Huawei has set up and/or is using to rebuild its chip capacity, despite the US export controls. Nikkei Asia had a long story last December discussing Huawei’s relationship with several of these companies, so these moves by Huawei have been known for many months, not just by industry but also by the Biden Administration. The timing of this leak of the SIA presentation just days before Commerce Secretary Raimondo heads to Beijing seems unlikely to be a coincidence. My understanding is that Commerce has been sitting on additional Huawei-related export controls for a while and this Bloomberg story is likely to raise the pressure on the Biden Administration to do more against Huawei.
US-China - Raimondo to visit Shanghai on her trip, Kerry and Xie have a video chat about climate cooperation, the US is looking for a six month extension to the US-PRC Science and Technology Agreement (STA), and the State Department has approved another $500 million arms sale to Taiwan.
Signals about real estate policy - Regular Economic Daily columnist Kang Shu 亢舒 writes that "the positioning of 'houses are for living in, not for speculation' will not change”. Kang does not make policy, but it would not be unreasonable to see this appearing in the authoritative Economic Daily as another signal that while some housing purchase restrictions are being removed on a city by city basis, there should be no expectations of a return to the go-go days. Also on August 23 an article published on the front page of the Securities Times said the government needs to give more room for developers to adjust selling prices in a bid to tackle their capital crunch. According to the newspaper, close to 20 local governments have announced moves to restrict how much discount developers can offer since 2022. “Now the demand and supply relationship in the real estate market has changed. Home developers have had a difficult time selling and operating their businesses. Given the financing difficulties, (they) need more autonomy in determining prices in order to destock and save themselves.”
US was watching Philippines resupply of the Sierra Madre - The Philippines invited several journalists along, one photo in particular is interesting, that of a US P-8 plane circling overhead. After the incident earlier this month in which a China Coast Guard vessel attacked a Philippines boat with a water canon, the US issued a statement on August 5th that among other things said “The United States reaffirms an armed attack on Philippine public vessels, aircraft, and armed forces—including those of its Coast Guard in the South China Sea—would invoke U.S. mutual defense commitments under Article IV of the 1951 U.S. Philippines Mutual Defense Treaty.” Construction supplies need to get to the Sierra Madre or it will rot away and then the PRC will move in and claim control of Second Thomas Shoal/Ren'ai Reef, but it seems highly unlikely the Philippines can deliver those supplies without more US assistance. Are we walking up to that, and how would the PRC react?
Not everyone can be a cadre - An article from China Youth Daily - "Not everyone is suitable to work inside the system" - caused quite an online uproar, as it prompted discussion about why civil servant jobs seem so much more stable and desirable. A sign of the times.
Earlier today I published this week’s episode of the Sharp China podcast - The World Gets Bearish on China; MSS and CIA Spies; US-Japan-South Korea; Complications for Intel and ARM. From the show notes:
On today's show Bill and Andrew begin with an unexplained absence for Xi Jinping in Johannesburg before turning to the multi-faceted problems facing Beijing policymakers as the PRC economy continues to sputter. Topics include: Why a giant stimulus package remains unlikely, whether Xi is the right leader to manage a restructuring of the world's second-largest economy, the "takeover or collapse" false binary, and what to make of the disappearing youth unemployment data. From there: The Ministry of State Security proudly identifies two PRC nationals who were allegedly working with the CIA, while the Biden Administration successfully executes a Camp David summit with the South Korea and Japan. At the end: Beijing scuttles Intel's Tower Semiconductor plans, ARM has myriad risks in China, the Wall Street Journal goes deep on the Village Basketball League, and James Harden's wine helps stimulate consumer spending.
You can listen to it here.
Thanks for reading, and listening.
The Essential Eight
1. Xi’s BRICS speech
Full Text: Remarks by Chinese President Xi Jinping at the 15th BRICS Summit-Xinhua
We gather at a time when the world has entered a new period of turbulence and transformation. It is undergoing major shifts, division and regrouping, leading to more uncertain, unstable and unpredictable developments.
BRICS is an important force in shaping the international landscape. We choose our development paths independently, jointly defend our right to development, and march in tandem toward modernization. This represents the direction of the advancement of human society, and will profoundly impact the development process of the world. Our track record shows that we have consistently acted on the BRICS spirit of openness, inclusiveness and win-win cooperation, and taken BRICS cooperation to new heights in support of our five countries' development. We have upheld fairness and justice in international affairs, stood up for what is right on major international and regional issues, and enhanced the voice and influence of emerging markets and developing countries. BRICS countries invariably advocate and practice independent foreign policies. We always address major international issues based on their merits, making fair remarks and taking fair actions. We do not barter away principles, succumb to external pressure, or act as vassals of others. We BRICS countries share extensive consensus and common goals. No matter how the international situation changes, our commitment to cooperation since the very beginning and our common aspiration will not change...
We should help reform global governance to make it more just and equitable, and bring to the world more certainty, stability and positive energy.
-- We should deepen business and financial cooperation to boost economic growth. Development is an inalienable right of all countries, not a privilege reserved for a few...We BRICS countries should be fellow companions on the journey of development and revitalization, and oppose decoupling and supply chains disruption as well as economic coercion...
We should expand political and security cooperation to uphold peace and tranquility. As a Chinese saying suggests, "Nothing is more beneficial than stability, and nothing is more detrimental than turmoil." The Cold War mentality is still haunting our world, and the geopolitical situation is getting tense. All nations long for a sound security environment. International security is indivisible [国际安全不可分割]. Attempts to seek absolute security at the expense of others will eventually backfire. The Ukraine crisis has evolved to where it is today because of complex reasons. What is pressing now is to encourage peace talks, promote deescalation, end the fighting, and realize peace. No one should add fuel to the fire to worsen the situation...
We should increase people-to-people exchanges and promote mutual learning between civilizations. There are many civilizations and development paths in the world, and this is how the world should be. Human history will not end with a particular civilization or system...
We should uphold fairness and justice and improve global governance. Strengthening global governance is the right choice if the international community intends to share development opportunities and tackle global challenges. International rules must be written and upheld jointly by all countries based on the purposes and principles of the U.N. Charter, rather than dictated by those with the strongest muscles or the loudest voice. Ganging up to form exclusive groups and packaging their own rules as international norms are even more unacceptable. BRICS countries should practice true multilateralism, uphold the U.N.-centered international system, support and strengthen the WTO-centered multilateral trading system, and reject the attempt to create small circles or exclusive blocs. We need to fully leverage the role of the New Development Bank, push forward reform of the international financial and monetary systems, and increase the representation and voice of developing countries.
Chinese version - 习近平在金砖国家领导人第十五次会晤上的讲话（全文） — 中华人民共和国外交部
China Works to Expand its Sway in Africa Amid Rivalry With the U.S. - The New York Times
“For Xi, the goal is to try to discredit the West and show that there is an alternative out there,” said Eric Olander, the chief editor of The China-Global South Project website. “He’s trying to tap into this incredible well of grievance and frustration among many Global South countries over what they perceive as this massive duplicity and hypocrisy on the part of rich countries.”..
At the meeting on Wednesday, the leaders sought to project a common position. Warnings against a return to the Cold War were a common refrain. Several leaders criticized the United Nations Security Council for what they described as its failures to bring an end to Russia’s war in Ukraine — while avoiding any criticism of President Vladimir V. Putin of Russia, a BRICS leader, for the invasion.
China, Russia Deliver Broadsides Against the West at Brics Summit - WSJ
Leaders of Brics nations Brazil, India, China and South Africa, gathered in Johannesburg with Putin, who faces an international arrest warrant for alleged war crimes in Ukraine, joining by video.
“Our actions in Ukraine are dictated by only one thing, to bring an end to the war that was unleashed by the West,” he said, with the flags of other Brics countries behind him...
China and Russia also set out the case for strengthening the Brics capabilities as a political entity and independent trading bloc, part of an effort to boost its clout as a counterweight to the West.
Strengthening the group, Beijing and Moscow argue, would also give the developing world a stronger voice more equal to its size, putting it on a footing with Western powers whom they accused of holding back development in some of the world’s most vulnerable countries.
BRICS Bank Aims to Increase Local-Currency Borrowing to 30% - Bloomberg
“We will increase the use of local currencies,” CFO Leslie Maasdorp told Bloomberg on the sidelines of the BRICS meetings in Johannesburg on Wednesday. “It does not mean we are de-dollarizing or moving away from the dollar. It just means that we are raising more local-currency financing.”
No new BRICS bank members to be announced at summit: CFO | Reuters
"There will be no announcements this week," he said, adding that it was "likely" there would be more new members applying this year, but that the timing was dependent on political processes in the countries that want to join.
At least 15 potential new member countries - including Saudi Arabia, Algeria and Argentina - are under consideration by the governments that are the bank's shareholders, Maasdorp said.
Top EU official warns West needs to act to avoid losing developing world's trust | Reuters
Werner Hoyer, the European Investment Bank's President, said this week's BRICS summit in South Africa and a push to make the group's New Development Bank - known as the BRICS bank - an alternative to established Western multilateral lenders, underscored the need to significantly increase lending.
Wednesday CCTV Evening News reports on Xi's speech to the BRICS business forum, does not mention he did not attend or that Wang Wentao read it out for him
Xi meets Cuban president in Johannesburg
Xi meets Senegalese president in Johannesburg
Xi meets Bangladeshi PM in Johannesburg - CGTN
2. Xi’s South Africa state visit
During the visit, President Xi Jinping held talks with President Cyril Ramaphosa. The two heads of state had an in-depth exchange of views on the development of China-South Africa and China-Africa relations and international and regional issues of mutual interest, and reached important common understandings on a number of issues. President Ramaphosa personally greeted President Xi Jinping at the airport, held a welcoming ceremony for President Xi at the President's official residence, and conferred on President Xi the Order of South Africa, the highest decoration and honor South Africa awards to the heads of state of friendly countries. The two heads of state jointly witnessed the signing of 11 cooperation documents on Belt and Road, new energy power, agricultural product, special economic zone, industrial park, blue economy, scientific and technological innovation, and higher education, and met the press together.
South Africa Joins China’s Space Alliance in Race Against US - Bloomberg
Two agreements on official cooperation were signed during Chinese President Xi Jinping’s state visit to South Africa on Tuesday, the first tie-up of its kind between the nations, according to the official Xinhua News Agency. One covers human spaceflight and the other involves the International Lunar Research Station, a plan to build a base on the moon that’s backed by China and Russia.
People's Daily - Chinese President Xi Jinping's state visit to South Africa resulted in a list of accomplishments…25 agreements or MOUs
China, Africa trade sees steady growth in Jan-July | Xinhua
China's trade with Africa reported steady growth in the first seven months of the year, official data showed Wednesday.
Trade between China and Africa rose 7.4 percent year on year to 1.14 trillion yuan (about 158.36 billion U.S. dollars) during the January-July period, data from the General Administration of Customs showed.
China has remained Africa's largest trading partner over the past decade, with bilateral trade totaling 1.87 trillion yuan in 2022, up 14.8 percent year on year.
In the first seven months, the country's exports to Africa grew 20 percent year on year to 709.59 trillion yuan, while imports reached 426.65 billion yuan, customs data showed.
Top item of Wednesday CCTV News was on the South Africa welcoming ceremony for Xi
3. Huawei rebuilding its chip-making capacity
Huawei Building Secret Chip Plants in China to Bypass US Sanctions, Group Warns - Bloomberg
Huawei, a controversial telecommunications gear maker at the heart of US-China tensions, moved into chip production last year and is receiving an estimated $30 billion in state funding from the government and its hometown of Shenzhen, according to the Washington-based Semiconductor Industry Association. It’s acquired at least two existing plants and is building at least three others, the group said in a presentation to its members seen by Bloomberg. Huawei has not disclosed its role in this expansion, according to people close to the SIA, who asked not to be identified sharing non-public information...
The US Commerce Department put Huawei on its entity list in 2019, eventually prohibiting it from working with American companies in almost all circumstances. But if Huawei is constructing and buying facilities under the names of other companies without disclosing its involvement, as the SIA contends, the telecom giant may be able to circumvent those restrictions to indirectly purchase American chipmaking equipment and other supplies that would otherwise be prohibited...
The SIA presentation has set off alarm bells at member companies and within the Biden administration since it was published in April. The US is weighing more stringent export controls on China.
December 2022 - China's chip industry fights to survive U.S. tech crackdown - Nikkei Asia
Fujian Jinhua Integrated Circuit Co. (JHICC), a memory chipmaker, had to halt operations after the U.S. accused it of stealing trade secrets in late 2018. But it has been gradually resuming production after a mysterious new client emerged.
JHICC's campus of sleek glass buildings looks stately again, its trees pruned and its lawn mowed since it reopened. Earlier this year, busloads of engineers and procurement and financial staff began arriving from the new customer to help the company restart production. They ask JHICC counterparts to call them by their English names, rather than their Chinese ones, in order not to draw attention to themselves, four people with knowledge of the situation told Nikkei Asia.
Their identities, however, are an open secret within JHICC. They come from Huawei Technologies, China's technology champion, whose chip supplies have been crippled for two years, a victim of U.S. sanctions imposed in 2020...
JHICC and Quliang are just two examples of Huawei's domestic supply chain ambitions. With help of local governments across China, Huawei and its partners are working on a new chip production and assembly network in Beijing, Wuhan, Qingdao and Huawei's home base Shenzhen, with investments estimated at more than 400 billion yuan ($55.8 billion). The goal is simple: to replace foreign manufacturers and suppliers, and bring back Huawei's key chip production for telecom base stations, surveillance cameras and smartphones -- and venture into the automotive chip business...
Not far away from Huawei's headquarters, cranes and excavators are working on a new chipmaking facility for PengXinWei Integrated Circuit Manufacturing Co. in the northern suburbs of Shenzhen. The site will become a key production base make chips used Huawei, industry executives told Nikkei.
PengXinXu Technology Co., another chip startup with a similar name that formed this year, is also aggressively recruiting engineers and plans to build a chip plant in Shenzhen, executives briefed on the matter said. Huawei is a potential top client...
Huawei also hopes to buy chips from SwaySure Technology, a dynamic random-access memory (DRAM) chip startup that was also founded this year and counts industry veterans such as former TSMC and Elpida Memory executives among its top management, two people told Nikkei. PengXinWei, PengXinXu, and Swaysure are fully owned by the Shenzhen government.
4. US-China
A source with knowledge of Raimondo’s trip told the Post that she will meet with the Shanghai party secretary and the American Chamber of Commerce in Shanghai, along with visits to New York University Shanghai and, tentatively, Shanghai Disneyland.
Chinese ambassador to U.S. meets U.S. commerce secretary on economic ties-Xinhua
Chinese Ambassador to the United States Xie Feng met with U.S. Secretary of Commerce Gina Raimondo on Tuesday, exchanging views on China-U.S. economic and trade ties and Raimondo's upcoming visit to China.
Xie said that China's policy toward the United States is consistent. "Our fundamental guidance are the three principles outlined by President Xi Jinping: mutual respect, peaceful coexistence and win-win cooperation," Xie said.
He said people are living in a turbulent world, with global recovery remaining sluggish, and crises continuing to pop up. "China and the United States share the same planet and the same sky. As all are in the same boat, no one can stay aloof, still less profit at others' expense," said Xie, adding, "The only right way forward is to pull together."
US approves possible sale of F-16 search and track systems to Taiwan | Reuters
The U.S. State Department has approved a possible $500 million sale to Taiwan of infrared search and track systems for F-16 fighter jets, as well as other equipment, the Pentagon said on Wednesday.
U.S. seeks short extension to key China science pact - NBC News
A six-month extension to the Science and Technology Agreement (STA) will keep the pact in force as the U.S. seeks “authority to undertake negotiations to amend and strengthen the terms,” a State Department spokesperson told NBC News on Wednesday.
胡春华出席美中贸易全国委员会50周年庆典晚宴--新闻报道-中国共产党新闻网
CPPCC vice chairman and former vice premier and Politburo member Hu Chunhua was the PRC VIP guest to the 50th-anniversary celebration dinner of the US-China Business Council (USCBC) in Beijing. Hu is a political zombie after the destruction of the Communist Youth League's political power and his demotion at the 20th Party Congress, so it seems a little disappointing the PRC could not have sent someone more relevant to current policymaking to attend
China, U.S. climate envoys hold video talks on climate-change cooperation | Reuters
China's climate envoy Xie Zhenhua and U.S. counterpart John Kerry held a video call on Wednesday, exchanging views on topics such as climate change dialogue and cooperation between the two countries, Beijing's Ministry of Ecology and Environment said. Both sides agreed to continue to maintain close communication, the ministry said
The Global Times learned exclusively from a source on Wednesday that in July 2023, the vessel Zhenhua 28, a Hong Kong-registered Chinese cargo ship under Shanghai Zhenhua Heavy Industries Company, encountered unreasonable searches and harassment by US law enforcement in Jacksonville, Florida. Members of the US Coast Guard boarded the ship to carry out an inspection from its anchorage to the port and accompanied it in the entire course.
Upon arrival at the port, US Customs and Border Protection personnel boarded the ship for inspection, collected biometric information such as faces and fingerprints of the crew members, and even questioned them about whether they were members of the Communist Party of China, soldiers, or government officials.
Finding Safe Harbors for Development Impact: Navigating U.S.-China Stormy Waters for the Global Public Good - Steve Davis
Shaping a new narrative in the midst of hardline government policies is difficult. But it is critical to emphasize an effort mission-driven by social impact concerns, rather than politics. At a minimum, a new framing can outline the ways in which non-state actors (such as NGOs, philanthropies, and businesses) are uniquely well positioned to continue shaping collaborative programs in areas of mutual self-interest, all without violating their respective governments’ policies or approaches. Most importantly, the narrative must make plain that these relationships are not part of a zero-sum game, where one side wins and the other loses. Rather, in thinking about climate change mitigation, global public health, food security, and development financing, it is more effective—and realistic—to advance an “all boats rising” perspective. Mutual self-interest in Washington and Beijing can drive progress in all of these areas.
Those pushing for more engagement with China argue that the United States should “test the proposition” that diplomatic overtures could kick-start a cycle of cooperation with China, as the scholar Jessica Chen Weiss proposed in Foreign Affairs last year. But that proposition has been tested many times in recent decades, and the results have been far from reassuring. The United States made concessions during that era of engagement that would be unthinkable today, including fast-tracking China’s integration into Western supply chains, transferring weapons to China’s military and advanced technology to CCP-owned firms, welcoming China’s entry into major international organizations, quietly encouraging Taiwan to consider peaceful unification, and downplaying CCP human rights abuses. Yet internal documents reveal that top Chinese leaders repeatedly interpreted such U.S. overtures as insincere or even threatening.
5. Signals about real estate policy
Kang’s commentary - “房住不炒”定位不会改变
An excerpt:
According to the latest data on housing prices in 70 large and medium-sized cities released by the National Bureau of Statistics, the real estate market is still in deep adjustment, and some cities' real estate markets still face downward pressure. Currently, from the central government's relevant deployment to local policies tailored to individual cities, the emphasis is on better meeting rigid and improvement housing needs and promoting stable and healthy market development. In this context, some people feel that the principle of "houses are for living in, not for speculation" was raised in response to rapidly rising house prices, and now that the supply-demand relationship has undergone significant changes and there is less speculation, reiterating the "housing is for living, not for speculation" principle is no longer timely. Is this really the case?
从国家统计局公布的最新70个大中城市房价等数据来看，房地产市场仍处于深度调整中，一些城市的房地产市场仍存下行压力。当前，从中央的有关部署到各地因城施策，都在强调更好满足刚性和改善性居住需求，促进市场平稳健康发展。在这种情况下，有人觉得，“坚持房子是用来住的、不是用来炒的”，是针对房价过快上涨时提出来的，当前供求关系发生重大变化，炒房的没那么多了，再提“房住不炒”已不合时宜。果真如此吗？
The fact is, the positioning of "housing is for living, not for speculation" must still be adhered to. The Central Political Bureau meeting pointed out that it is necessary to adapt to the new situation of significant changes in the supply-demand relationship in China's real estate market and to adjust and optimize real estate policies in a timely manner. China's real estate market has developed over more than twenty years, and the overall shortage of commercial housing has been alleviated, with some cities even experiencing a supply greater than demand, and many cities are shifting from a seller's market to a buyer's market. However, the positioning of "housing is for living, not for speculation" must still be adhered to and has not become outdated. This is because China's real estate market is clearly differentiated, and in some hot-spot cities, the situation of supply falling short of demand still exists. If house prices are speculated again, it may lead to a return to excessive reliance on real estate, which would have adverse effects on economic and social development.
事实是，当前仍要坚持“房住不炒”定位。中央政治局会议提出，适应我国房地产市场供求关系发生重大变化的新形势，适时调整优化房地产政策。我国房地产市场历经二十余年发展，商品房总体告别短缺，有的城市甚至出现供大于求，很多城市正在从卖方市场向买方市场转变。然而，“房住不炒”定位仍然要坚持，没有过时。这是因为我国房地产市场分化明显，在一些热点城市，供不应求的情况依然存在，一旦炒作房价重来，又可能重走过度依赖房地产的老路，对经济社会发展会产生不利影响。
The Securities Times article - 缓释资金压力 给房企更多定价空间
In the past two years, some local governments have imposed restrictions on real estate companies' price reduction behaviors. For example, in August 2021, Yueyang, Hunan, issued the country's first "price drop restriction order" of the year, requiring that price reductions should not exceed 15%. Subsequently, similar regulations were introduced in various places, and there were reports of real estate companies being interviewed or temporarily suspending online signings for reducing prices. According to statistics, nearly 20 places across the country issued "price drop restriction orders" in 2022.
前两年，对于房企的降价行为，一些地方政府是有限制的。比如，2021年8月，湖南岳阳发布当年全国首个“限跌令”，要求降价不得超15%；随后，多地出台类似规定，多地爆出有房企降价被约谈或暂停网签。据统计，2022年全国有近20个地方出台了“限跌令”。
With the deep adjustment of the property market, various home-buying support policies have been introduced by local governments since the second half of last year, including support for real estate companies to offer group purchase discounts to specific groups. However, there are requirements for the discount range, with some places setting it at 3% to 5%, some at 10%, and others explicitly stating that sales should not be lower than the cost price.
随着楼市深度调整，去年下半年以来，地方政府出台了各种购房支持政策，其中就包括支持房企给予特定群体团购优惠，但优惠幅度是有要求的，有的3%~5%，有的10%，还有的明确提出不得低于成本价销售。
In the past, local governments restricted the decline in housing prices to prevent real estate companies from maliciously reducing prices, disrupting market prices, and market expectations. Now, the supply and demand relationship in the real estate market has changed, and real estate companies are facing sales obstacles and operational difficulties. With financing constraints, they need more pricing autonomy for de-stocking and self-rescue. This was also the reason for the controversy caused by the punishment of two projects in Kunshan City in May this year for significant price reductions.
过去，地方政府限制房价跌幅，目的是防止有房企恶意降价、扰乱市场价格和市场预期。现在，房地产市场供求关系已经发生变化，房企销售受阻、经营困难，在融资不畅的情况下，去化自救需要更多定价自主权。这也是今年5月昆山市两个项目因大幅度降价销售遭到处罚引起争议的原因。
According to data recently released by the National Bureau of Statistics, from January to July, the decline in indicators such as real estate development investment, commercial housing sales area, and funds available to real estate companies has further expanded. Among them, commercial housing sales turned positive year-on-year in March this year but fell again in July. Both the sales area and amount in July changed "from positive to negative," and the decline exceeded 40%. The funding sources for real estate companies further deteriorated, with funds available to real estate companies falling by 11.2% this year after a 25.4% decline in the same period last year. July's housing price data for 70 cities also showed that housing prices in some cities have entered a downward adjustment phase, determined by the supply and demand relationship.
从国家统计局近日公布的数据来看，1~7月，房地产开发投资、商品房销售面积、房企到位资金等指标降幅均进一步扩大，其中，商品房销售额自今年3月同比转正后，7月再次负增长。7月销售面积和金额环比均“由正转负”，且降幅均超过四成。房企资金来源进一步恶化，1~7月房企到位资金在去年同期下跌25.4%的情况下，今年再跌11.2%。7月70城房价数据也显示，部分城市房价进入下行调整阶段，这是由供求关系决定的。
Recently, places like Ya'an, Sichuan, and Shaowu, Fujian, have explicitly stated that the group purchase discount prices reached with real estate companies for specific groups will not be included in the range of commercial housing record price decline ratios when encouraging real estate companies to carry out commercial housing group purchase activities. This move gives real estate companies more flexible pricing space, is conducive to local inventory de-stocking, and can alleviate some of the financial pressure on real estate companies, making it worth learning from in other places.
近期，四川雅安、福建邵武等地在鼓励房企针对特定群体开展商品房团购活动中明确，与房企达成的团购优惠价格不计入商品房备案价格跌幅比例范围。此举给了房企更灵活的定价空间，有利于当地的库存去化，能够缓解部分房企资金压力，值得其他地方借鉴。
Yicai - Builders Powerlong, Youngor Halve Prices at Housing Complex in China’s Zhuhai to Spur Sales
Developers Powerlong Real Estate Holdings and Youngor Real Estate have halved the price of homes in a residential apartment complex that they are building in Zhuhai, a city in China’s southern Guangdong province, in response to the sluggish property market.
Apartment in Powerlong City of Jinwan are now priced at as little as CNY14,000 (USD1,920) per square meter, half of what the firms told the authorities they would ask for in February, local realtors told Yicai
新房成交量创十年同期新低！武汉楼盘争相“打折”，每平米降价超2000元 | 每经网
In Wuhan, property developers are lowering prices amid weak home sales, with many lowering by over 2000 rmb / square meter. According to official data, home sales in that city totalled 4881 units in July, a decline of 21% compared to last month. July’s number was the lowest on record in ten years.
7月武汉市新建住房网签备案仅4881套，环比6月下降21%，连续两个月大幅下滑，创近十年同期新低。
6. US was watching the Philippines resupply of the Sierra Madre
Chinese ships chase, block Philippine boats in disputed sea - AFP
A team of AFP journalists on board the BRP Cabra, one of the two Philippine Coast Guard vessels, watched as the Chinese vessels chased, blocked and corralled the four Philippine vessels.
One of the Chinese coast guard ships came within several metres of the Cabra.
Philippine officials release footage of sea standoff, as senator pushes for inquiry — RFA
Two Philippine Coast Guard (PCG) ships, the BRP Cabra and BRP Sindangan, escorted the convoy. They had arranged a rendezvous with civilian boats contracted by the military on Monday before setting off for Ayungin Shoal the following day, Commander Jay Tarriela said.
The PCG spokesman challenged Chinese claims that its ships allowed the supply mission to proceed peacefully, and said that when the Philippine ships were within 2.5 nautical miles of reaching the shoal “we experienced dangerous maneuvers by four China Coast Guard vessels backed by four Chinese maritime militia.
“They executed different ways for the Philippine Coast Guard to be separated from the supply boats so that they would be able to prevent (them) from entering the shoal,” Tarriela told reporters.
August 5th statement by US State Department - U.S. Support for the Philippines in the South China Sea
The United States stands with our Philippine allies in the face of dangerous actions by the Coast Guard and maritime militia of the People’s Republic of China (PRC) to obstruct an August 5 Philippine resupply mission to Second Thomas Shoal in the South China Sea. Firing water cannons and employing unsafe blocking maneuvers, PRC ships interfered with the Philippines’ lawful exercise of high seas freedom of navigation and jeopardized the safety of the Philippine vessels and crew.
Such actions by the PRC are inconsistent with international law and are the latest in repeated threats to the status quo in the South China Sea, directly threatening regional peace and stability. By impeding necessary provisions from reaching the Filipino servicemembers stationed at Second Thomas Shoal, the PRC has also undertaken unwarranted interference in lawful Philippine maritime operations.
As made clear by an international tribunal’s legally binding decision issued in July 2016, the PRC has no lawful claim to the maritime area around Second Thomas Shoal, which is located well within the Philippines’ exclusive economic zone.
The United States reiterates, pursuant to the 1982 Law of the Sea Convention, the arbitral decision is final and legally binding on the PRC and the Philippines. The United States calls upon the PRC to abide by the arbitral ruling as well as to respect the freedom of navigation – a right to which all states are entitled.
Foreign Ministry Spokesperson Wang Wenbin’s Regular Press Conference on August 23, 2023
AFP: AFP reporters onboard the Philippine Coast Guard vessel BRP Cabra witnessed eight Chinese ships chasing and blocking Philippine boats during a mission to resupply the Sierra Madre in the South China Sea. One of the Chinese ships came within several meters of the vessel that AFP journalists were on. Can you explain the actions of the Chinese ships?
Wang Wenbin: The spokesperson of China Coast Guard (CCG) has issued a statement regarding the Philippines’ illegal trespassing into waters near China’s Ren’ai Jiao, and you may refer to that. Let me stress that in response to what the Philippines did, China Coast Guard took necessary law enforcement action in accordance with the law. We also demand that the Philippines immediately stop any action that may complicate the situation on the ground.
Indo-Pacific defense chiefs ‘shocked’ at China’s WPS moves – Brawner | Global News
The defense chiefs and senior military leaders of 24 countries in the Indo-Pacifice Region were surprised when they saw a video of the China Coast Guard firing a water cannon at a Philippine Coast Guard ship at the Ayuing Shoal...
“I showed them the video of the water cannoning of our supply ships. They were shocked,” Brawner said in Filipino. “In our presentation, we showed how the Philippines was following an international rules-based order.”
Related: PLA Southern Theater Command holds fighter exercise from islet-based airfield - Global Times
Based on an analysis of the report footage, a Beijing-based military expert who requested anonymity told the Global Times on Wednesday the fighter jets that took part in the exercise were two variants of the J-11B, one of an older configuration with a black nose and one of a newer configuration with a gray nose...
The latest exercise shows that this upgraded version of the J-11B is now operable on islets in the South China Sea, the expert added.
The report:
7. Not everyone can be a cadre
央媒：并非所有人都适合体制内工作 - China Youth Daily - "Not everyone is suitable to work inside the system". Some excerpts:
Nowadays, many college students choose to pursue graduate studies due to difficulties in finding employment, and after completing their studies, they are keen to take civil service exams, eventually 'landing' a job. This phenomenon is becoming increasingly common, raising concerns: Are there hidden dangers in the development direction of contemporary young talents? In this context, how to create a better environment for innovation and entrepreneurship in society, encourage young people to make life choices without burden and in accordance with their true selves, and enable highly educated talents to specialize and apply their knowledge, has become a crucial issue.
时下，不少大学生因为就业难选择考研，读研之后又热衷考公考编，从而最终“上岸”。这种现象日益普遍，使人不免担忧：当代青年人才发展方向是否存在隐患？在这一背景下，如何在社会上营造更好的创新创业环境，鼓励年轻人更无负担、更遵从本心地作出人生选择，使高学历人才专业对口、学以致用，就成为至关重要的课题。
The reason why people are eager to take civil service exams is largely related to the advantages of working within the system. Such jobs offer strong security and stability, as well as good social status and benefits. Currently, the world is experiencing unprecedented changes in a century, and China is also facing domestic and international challenges in the 'post-pandemic era.' The high uncertainty brought about by this makes civil service exams highly favored.
之所以人们对考公考编趋之若鹜，在很大程度上同体制内工作的优越性有关。因为此类工作的保障性和安全性较强，而且社会地位和福利待遇也较好。当前，全球处于百年未有之大变局，我国也面临“后疫情时代”的国内外挑战，由此带来的高度不确定性，也使考公考编备受青睐。
However, beneath the craze, many students lack sufficient understanding of the actual situations of various employers. They often simply believe in the benefits of civil service exams without paying enough attention to potential limitations and problems. In fact, not everyone is suitable for working within the system, and graduate students should not blindly 'follow the crowd' and take civil service exams. Rationally assessing personal characteristics and choosing more compatible work departments and positions is the best talent allocation plan.
然而，热潮之下，不少学生对各类用人单位的实际情况缺乏足够了解，往往单纯听信考公考编的好处，而对其可能存在的局限和问题不够关注。实际上，并非所有人都适合在体制内工作，研究生也不应盲目“随大流”，跟风考公考编。理性评估个人特征，并选择更加匹配的工作部门和岗位，才是最好的人才配置方案。
8. More on alleged PRC interference in Canada’s elections
Exclusive: Beijing allegedly tried to run candidate against popular Canadian mayor -
Mayor Brad West, arguably Beijing’s sharpest critic in Canadian politics, says he was provided evidence the Chinese Communist Party plotted to run a candidate against him in British Columbia’s 2022 municipal elections, and CSIS warned him that diplomats in China’s Vancouver Consulate were concerned West’s political trajectory could “represent a real threat to their aims and objectives.”
In an exclusive interview, the two-term Port Coquitlam mayor disclosed toThe Bureau that CSIS is aware of posts on WeChat suggesting Beijing tried to unseat him in last year’s election...
Specifically, The Bureau has learned CSIS intelligence alleges China’s top diplomats in Vancouver and Toronto have funded and directed Chinese community associations that are co-opted by Beijing’s United Front interference arm, to transfer financial, media and volunteer support to favoured candidates, because China wants to promote so-called “friends” up through the ranks of Canadian politics, in order to fulfill its objectives.
Business, Economy and Trade
China releases preferential tax policies to support healthy capital market development-Xinhua The preferential policies, including individual income tax and value-added tax exemptions or cuts, were jointly issued by the Ministry of Finance and related departments. The policies are aimed at promoting the two-way opening-up and healthy development of the capital markets on the Chinese mainland and Hong Kong, supporting the opening-up of the goods futures market, ramping up the implementation of the innovation-driven development strategy and boosting the development of venture capital enterprises, according to the ministry.
Wall Street’s China Dreams Slip Away - WSJ BlackRock’s underwhelming start is emblematic of other Wall Street titans whose dreams of riches from China appear to be slipping away. Deal flow for many American investment banks in China has slowed to a trickle with local companies increasingly turning to their Chinese peers. Meanwhile, a slowing Chinese economy and growing difficulty in securing data have damped foreign investors’ appetite for Chinese assets...“Western business models that were operating freely in China just a couple years ago are being challenged every month,” said Stephen Roach, former chairman of Morgan Stanley Asia and a senior fellow at Yale Law School’s Paul Tsai China Center. “The environment is much, much tougher today than it was.”
利好！国资委部署行动！ China Securities Journal has learned that a package of policies to support the development of strategic emerging industries by central enterprises (state-owned enterprises) is expected to be accelerated, and a special fund for the development of strategic emerging industries is also being quickly established. Currently, the State-owned Assets Supervision and Administration Commission (SASAC) is actively deploying actions to rejuvenate central enterprises' industries and launch future industry initiatives. 中国证券报记者获悉，支持央企战略性新兴产业发展的一揽子政策料加快出台，战略新兴产业发展专项基金也在加快设立。目前，国资委正积极部署央企产业焕新行动和未来产业启航行动。
Caixin In Depth: China’s Auto Exports Belie Roadblocks to Conquering Europe, U.S. Chinese automakers’ growing presence in Europe is evident in Germany, the region’s largest car market. As of the first quarter of 2023, there were six Chinese carmakers selling EVs in Germany, compared with only two from the same time last year, according to the report. The firms’ sales accounted for 3.7% of all EV sales in the country in the first three months of the year, up from 1.2% a year ago.
Stellantis Said to Weigh Tie-Up With EV Maker to Expand in China - Bloomberg The carmaker has explored potentially working with Chinese EV makers including Zhejiang Leapmotor Technologies Ltd., the people said, asking not to be identified because the matter is private. Following in the footsteps of its rivals, Stellantis is weighing options such as investing in a local EV firm and a business partnership that would help it grow in China, the people said.
Exclusive: China's Xiaomi wins state planner nod to make EVs amid glut in autos | Reuters The National Development and Reform Commission (NDRC), which regulates new investments and production capacity in China's auto industry, gave the nod for EV manufacturing to Beijing-based Xiaomi earlier this month, said the people. Xiaomi's venture is only the fourth since end-2017 to win NDRC approval.
East China's Hefei to build up NEV industrial cluster-Xinhua Hefei, the capital of east China's Anhui Province, aims to cultivate an industry cluster of new energy vehicles (NEVs) with annual revenue of over one trillion yuan (about 138.91 billion U.S. dollars) by 2027. The NEV industry in Hefei has ushered in explosive growth in recent years, attracting nearly 100 enterprises engaged in the industry chain to settle in the city, local authorities said Tuesday.
太原楼市出新政：支持居民换购住房退还个人所得税|界面新闻 · 快讯 Tax incentives in Taiyuan for buying a new home - To support residents in exchanging and purchasing new homes, a personal income tax refund policy will be implemented. Starting from October 1, 2022, until December 31, 2023, for taxpayers who sell their existing homes and repurchase new homes within the jurisdiction of Taiyuan City within one year after the sale of their current homes, the personal income tax already paid on the sale of their current homes will be refunded as a tax incentive.
Caixin - 寿险业继续压降负债端成本 监管要求上报银保渠道费用 _金融频道_财新网
The issue of excessively high expense ratios in the life insurance industry has previously caught the attention of regulators, with the expense ratio of the bank-insurance channel becoming a particular target of criticism...
寿险业费用率过高的问题此前已引起监管注意，其中银保渠道费用率成为众矢之的
Recently, the Personal Insurance Supervision Department of the China Banking and Insurance Regulatory Commission (CBIRC) issued a "Notice on Regulating Insurance Products through Bank Agency Channels" (hereinafter referred to as the "Notice"). The Notice requires all life insurance companies to clearly explain the assumptions about costs and the cost structure in the actuarial reports of bank agency products, and to list the maximum commissions, starting from the date of the notice when registering products.
日前，金监总局人身保险监管部下发《关于规范银行代理渠道保险产品的通知》（下称《通知》），要求各家人身险公司应当从即日起，在产品备案时，要将银行代销产品的精算报告中明确说明费用假设、费用结构，并列示佣金上限。
China Clarifies How Businesses Should Account for Data Resources - Caixin China’s Finance Ministry issued new rules applying business accounting standards to data resources as part of the country’s push to expand the digital economy, which accounts for 17% of GDP. The rules take effect Jan. 1, 2024, and clarify accounting for businesses’ data resources as intangible assets and as inventory. If a business’s use of data resources meets the definition of intangible assets as stipulated in corporate accounting standards, they should be so recognized under the new regulations. If a company uses the data in daily business activities and ultimately intends it for sale, the data should be counted as inventory, according to the new rules. // 2024年起数据资产可“入表” 财政部明确会计处理规定_经济频道_财新网
China UnionPay More Than Triples Registered Capital to $1.37 Billion - Caixin Such a capital increase usually is intended to improve a payment institution’s risk control system and ensure the safety and stability of the business, a senior analyst in the payment industry said. People at UnionPay told Caixin that the capital increase was a distribution of unrealized shareholder equity and was a normal financial adjustment with no impact on its shareholding structure.
China Stocks Trade at Big Discount in Hong Kong as Mood Sours - Bloomberg according to the AH Premium Index, which tracks the price difference between the largest shares listed in both markets. The gauge has reached its highest since November, when the government’s revamp of its Covid policy helped extend a massive reopening rally. A-shares now trade at a 50% premium over its Hong Kong peers, compared to a five-year average of 35%
China Blue Chips See $9.3 Billion Selloff as Global Investors Flee - Bloomberg Overseas funds have been fleeing the mainland market, offloading the equivalent of $10.7 billion in a thirteen-day run of withdrawals through Wednesday, the longest since Bloomberg began tracking the data in 2016.
Chinese printer firm sues US agency, demanding implementation of Xinjiang-related entity list be rescinded - Global Times Chinese printer producer Ninestar Corp filed a lawsuit against a US agency on Tuesday (US time) over a Xinjiang-related entity list and demanded the implementation of the list be rescinded, the company said in a statement on Wednesday. According to the company's website, Ninestar is the world's fourth-largest laser printer manufacturer.
Exclusive: German guarantees for China investments plummet - document | Reuters The volume of investment guarantees provided by the German government to companies investing in China has collapsed this year, a government document showed, highlighting the impact of Berlin's efforts to end over-reliance on the country.
Only 51.9 million euros ($56.26 million) in guarantees have been issued so far this year, a document seen by Reuters showed, less than a tenth of the 745.9 million euros in guarantees issued over the whole of last year.
GQG Fund That Exited China Internet Stocks Is Making a Comeback - Bloomberg “We are seeing growth coming back in terms of the quarterly results, and the crackdown is likely coming towards an end, like we saw some high-profile announcements made about the importance of the Internet platform sector,” Murthy said. “We are slightly more optimistic on China than we were three months ago.”
Caixin - Schroders China Unit Seeks Approval for First Mutual Fund The China Securities Regulatory Commission (CSRC) on Monday received application materials from Schroder Fund Management (China) Co. Ltd. for a mutual fund that will mainly invest in bonds, the regulator’s website shows. The focus on bond investments suggests the Schroders’ China subsidiary is playing it safe, market sources said.
China-Argentina Currency Swap Poses Risks and Opportunities, Economist Says - Caixin The currency swap deal between China and Argentina that the Latin American country recently tapped to repay a portion of an international debt in yuan poses risks that need to be examined, prominent economist Yu Yongding told Caixin. The primary risk in such a swap deal is that the other country may default, rather than the possibility that it will lead the yuan to depreciate, said Yu, who is a member of the Chinese Academy of Social Sciences.
Politics and Law
九部门发文，鼓励退休干部、教师、医生回乡定居！能买宅基地住吗？多地有明确说法 | 每经网 China is encouraging retired cadres, teachers and doctors to return to their home villages, part of a plan to revitalize rural regions. In an action plan released by nine ministries, these professionals are called upon to return to contribute in a host of ways. They will be encouraged to build houses with farmers but will not be able to buy or inherit homestead.
Caixin 人事观察｜上海市委副书记吴清兼任市委政法委书记_政经频道_财新网 Wu Qing, Deputy Secretary of the Shanghai Municipal Party Committee, Takes on the Additional Role of Secretary of the Municipal Political and Legal Affairs Committee
Former Chief of Bank of Beijing Out of Touch as Regulators Probe Dealings - Caixin
Yan Bingzhu, the powerful former chairman of Bank of Beijing Co. Ltd., has been out of contact amid swirling speculation that the veteran executive fell under investigation.
Yan, 70, retired from the top position at Bank of Beijing more than six years ago. With 3.5 trillion yuan ($482 billion) in total assets as of the end of March, the Beijing-based bank is China’s largest city commercial bank and one of 19 systemically important banks in the country.
Word circulated since last year that Yan was being targeted by investigators. Sources with knowledge of the matter said authorities detained Yan earlier this month and raided his home. Caixin made multiple calls to his personal cellphone without response...
Regulators have tightened scrutiny of Bank of Beijing after a 2019 inspection raised concerns of connected-party transactions, Caixin learned. Authorities have been examining the bank’s relationship with Cayman Islands-registered private investment company China Silk Road Group Ltd. and its Hong Kong subsidiary Silk Road Financial Holding.
Xi Jinping's selected works published in 7 ethnic minority languages - Xinhua The first two volumes of a book series of selected works of Xi Jinping have been translated into seven of China's ethnic minority languages, according to an official statement issued Wednesday. The seven languages are Mongolian, Tibetan, Uygur, Kazak, Korean, Yi and Zhuang.
Ex-Provincial Official Gets Life for Bribery and Aiding Crypto Mining - Caixin During his tenure in Fuzhou, Xiao made a name for himself promoting the city’s digital economy. According to a documentary produced by the country’s top anti-graft authorities and state broadcaster CCTV, Xiao knowingly supported a crypto mining company operating under the guise of a big-data center, enabling it to garner 20 billion yuan in investment. Xiao also helped the company falsify data to hide the fact that its power consumption accounted for 10% of Fuzhou’s total over a four-year period and illegally pushed authorities to provide it with financial support worth more than 2.4 billion yuan, the documentary said.
China Dissent Monitor 2023 Issue 4: April – June 2023 | Freedom House More than 2,800 dissent events over a one-year period. CDM has collected 2,803 dissent events since June 2022, of which 1,594 are fully coded and available on the CDM public website. At least 30,000 people cumulatively have participated in the events that have been coded. The forms of dissent include demonstrations (78 percent); obstruction, occupation, and noncooperation (5 percent); contentious petitioning (4 percent); strikes (3 percent); and artistic expression (1 percent). During the quarter from April to June 2023, CDM logged 535 events, led by labor (59 percent) and housing (22 percent) protest, with the remainder linked to issues like education and school safety, LGBT+ rights, ethnic and cultural rights, and religious freedom.
Chinese Discourse and Narrative System - China Media Project The precise aims of this “Chinese discourse and Chinese narrative system” remain nebulous. Still, by establishing a framework for how all stories from China’s past and present are understood, it offers something that merely “telling good China stories” cannot: the opportunity to establish a teleology not just of revolution but of Xi himself
Foreign and Defense Affairs
We don't want August 24 to become a catastrophic day for the marine environment: FM - Global Times "We don't want August 24, 2023 to become a catastrophic day for the marine environment," Chinese Foreign Ministry spokesperson Wang Wenbin said on Wednesday as both Chinese authorities and the public have expressed outrage and strong concerns over Japan's arbitrary decision to commence dumping nuclear-contaminated wastewater into the sea reportedly at 1 pm (local time) on Thursday.
Joint patrol with neighboring countries necessary and crucial in cracking down on cross-border telecom fraud: Chinese experts - Global Times As telecom fraud has become increasingly rampant along the southwestern border of China, multiple regions in Southwest China's Yunnan Province have launched a new round of intensive anti-fraud campaigns. Officials warned that if individuals are lured to scam dens on the border, they may be sold "like pigs" and subjected to torture, or even face life-threatening situations. To combat cross-border crime, the Mekong River joint patrol consisting of law-enforcement authorities from China, Laos, Myanmar, and Thailand are actively taking action, which experts said are necessary and crucial in cracking down on illegal activities, given the complex security situation in border areas and the high mobility of criminal gangs.
Caixin - 人事观察｜港澳办副主任杨万明履新全国对外友协会长_政经频道_财新网 Deputy Director of the Hong Kong and Macao Affairs Office Yang Wanming Takes Office as President of the Chinese People's Association for Friendship with Foreign Countries...His predecessor Lin Songtian hit retirement age of 63
China to hold live-fire artillery exercise off Fuzhou coast - China Daily The People's Liberation Army Ground Force will hold a live-fire artillery exercise on Thursday and Friday off the coast of Fuzhou, the capital of Fujian province, according to the local maritime authority. The Fuzhou Maritime Safety Administration said in an announcement on Tuesday that artillery units will carry out firing drills in waters in the Xinghua Bay area off the Fuqing city, which is administered by Fuzhou. The drill time will be from 7 am to 8 pm each day.
Exposed: the Chinese spy using LinkedIn to hunt UK secrets - The Times Asingle Chinese spy is using LinkedIn profiles to try to lure thousands of British officials to hand over state secrets in exchange for large sums of money and lucrative business deals, The Times has learnt. The intelligence officer for Beijing’s main spy agency created a string of aliases and fake companies to target security officials, civil servants, scientists and academics with access to classified information or commercially sensitive technology.
Biden to Host Costa Rica President for Talks on China, Migration - Bloomberg President Joe Biden plans to host Costa Rican President Rodrigo Chaves next week at the White House, according to people familiar with the matter. The two leaders plan to discuss their shared challenges in dealing with mass migration from Central and South America and the US’s desire to prevent China from expanding its influence in the Western Hemisphere, said one of the people, who requested anonymity to discuss the meeting before it was announced.
S’pore’s billion-dollar money laundering case: The criminal link to Fujian’s tea county in China | The Straits Times Nestled within the undulating mountains of Anxi County, a tea-growing area known for its Iron Buddha (Tieguanyin) tea, is Nandou village. The sleepy hamlet, with its one main road, consists of ramshackle single-storey farmhouses, many with their own flocks of chickens and ducks. But like other villages in the county, the signs of growing wealth are evident in the luxurious multi-storey mansions that now also punctuate the landscape. The village is also the last known address in China for Chen Qingyuan, one of 10 people from Fujian province who were recently arrested in Singapore for their alleged involvement in a money laundering case worth some $1 billion.
Chinese tech could break barrier to making crucial defence and aerospace material | South China Morning Post China has developed technology for the mass production of ultra-strong carbon fibre, which could help break international monopolies to supply materials for the aerospace and defence industries. Changsheng Technology Co Ltd, based in the northern province of Hebei, worked with Shenzhen University to produce high-performance carbon fibre on a production line that can make 1,700 tonnes (1,874 tons) of the material per year.
Chinese-backed port project in Peru to be the 'gateway from South America to Asia,' official says | AP News The port of Chancay, 60 kilometers (37 miles) north of the Peruvian capital of Lima, will be “the gateway from South America to Asia,” said Mario de las Casas, institutional affairs manager of COSCO Shipping, a Chinese state-owned company that is the majority owner of the project. De las Casas said the $1.3 billion project will offer a direct route to China with a travel time reduction for ships of 10 days. COSCO officials say ships traveling from South America to China normally take more than 45 days with stops in Central America, Mexico or the United States.
Taiwan
Parlacen approving China's NPC as an observer highly commended - Global Times
After the Central American Parliament passed the resolution of expelling the Taiwan region's "Legislative Yuan" as a permanent observer and accepting China's National People's Congress (NPC) instead, the Chinese Foreign Ministry said China welcomes and highly appreciates the resolution, which once again fully demonstrates that adhering to the one-China principle is an unstoppable trend of the times and is the will of the people...
Except for Guatemala, which still has so-called diplomatic ties with the Taiwan region, the five other Parlacen members have broken off ties with the island to switch diplomatic recognition to the Chinese mainland in recent years.
On Sunday, Guatemalan anti-corruption crusader Bernardo Arevalo was voted in as president. Arevalo said earlier in June that he would pursue closer relations with China and a more independent foreign policy if he becomes the Central American country's new president.
Tech and Media
Analyzing an Expert Proposal for China’s Artificial Intelligence Law - DigiChina A team from the Chinese Academy of Social Sciences (CASS) this month released a scholars' draft of an AI Law for China. When the Chinese government announces that it will draft a law, the future of the effort is uncertain. In some cases, one or more groups of scholars drafts up a proposal. These sometimes feed directly into legislative work and their influence is seen in an official National People's Congress draft for public comment.
State-Owned Auto Giant Picks Huawei’s Smart Driving Tech - Caixin State-owned automaker Chongqing Changan Automobile Co. Ltd. has picked Huawei Technologies Co. Ltd. as a supplier of driver-assistance systems for one of its electric-vehicle (EV) lines, a source familiar with the matter told Caixin, as the U.S.-sanctioned giant accelerates the commercialization of its smart driving technology.
As Viewers Fret, China Vows to Streamline Fees for OTT Content - SixthTone Amid growing public frustration over confusing fees and difficulty accessing streaming content on smart TVs, Chinese authorities are launching a campaign to enhance users’ viewing experience. Government officials announced Monday that the campaign, set to launch by the end of the year, would tackle unfair fees associated with TV content. The move will allow users to access TV channels without advertisements as soon as they power on their cable or Internet Protocol TV.
China’s ‘pro-innovation’ AI regulations augur well for eventual public release of Ernie Bot and other local ChatGPT alternatives, Baidu CEO says | South China Morning Post Robin Li Yanhong, Baidu’s co-founder, chairman and chief executive, shared that positive view in a conference call with analysts on Tuesday after the Beijing-based company reported strong second-quarter financial results. “We are still awaiting the green light for the large-scale roll-out of Ernie Bot in consumer-facing apps,” Li said. “While we don’t have an exact date for everything … we’re quite optimistic about the future of a better regulatory environment.”
No good timing for speculation in Pinduoduo: escalated domestic competition and substantial overseas investment Pinduoduo's road ahead won't be smooth. As the low-hanging fruits are gradually picked, Pinduoduo will face a dual squeeze from traditional e-commerce platforms and livestreaming e-commerce platforms. Especially the livestreaming e-commerce platforms have begun to encroach upon Pinduoduo's core user base, establishing a strong low-price mindset among consumers. Furthermore, the aggressive expansion of Temu comes with undeniable cost pressures for the company. While Pinduoduo has proven itself victorious in the domestic market, overseas market localization is not as straightforward, and cultivating a market is not an overnight process.
TikTok Shop on Track to Lose More Than $500 Million in U.S. This Year — The Information TikTok Shop, the app’s nascent shopping service, is expected to lose more than $500 million in the U.S. this year, according to a person with direct knowledge of the matter. The loss reflects TikTok’s heavy investment in hiring, building a delivery network and subsidizing merchants that offer double-digit–percentage discounts and free shipping.
Society, Arts, Sports, Culture and History
On Taobao, Someone Will Yell at Your Hopeless Romantic Friend for a Fee - SixthTone That one friend who refuses to break up with their boyfriend or girlfriend despite having every reason to — it’s a familiar problem faced by friends everywhere. Now some young people in China, in a bid to get their friends to see the light, are signing them up to be yelled at by online “love counselors.” These “love counselors” can be found on e-commerce platform Taobao, with popular vendors seeing over 5,000 customers a month.
Empty Hall, Full Buzz: Civil Bureau's Chinese Valentine's Day Livestream Goes Viral Due to Couples Staying Away | What's on Weibo Alocal Bureau of Civil Affairs, where couples register and obtain their marriage certificate, launched a livestream to celebrate the marriage registration ceremony for new couples on August 22, marking the occasion of the Qixi Festival, often referred to as the Chinese equivalent of Valentine’s Day. The celebratory livestream gained immense traction on Chinese social media, albeit for all the unintended reasons.
Interview: Dechen Pemba on Centering Tibetan Voices Through Translation and Film Dechen Pemba is the founder and editor of High Peaks Pure Earth, a website that translates Tibetan social media and blog content into English. Born in the UK, Pemba has worked with the International Campaign for Tibet in Berlin and studied in Beijing for two years. She has a masters degree from SOAS in London, and also writes a personal blog. In an interview conducted by email, Pemba spoke to CDT about her work amplifying Tibetan voices, through both her website and the Tibetan Film Festival, while also offering her recommendations of recent Tibetan films, books, and resources for learning more about the region.
China's Xian sends 'sweet love' messages to encourage babymaking | Reuters Family planning authorities in the historic Chinese city of Xian texted residents this week wishing them "sweet love, marriage and childbirth", and to create "good fertility", in a new move to boost the country's flagging birthrate. The message was reported by local media, including on the official Weibo of China Newsweek, and coincided with the Qixi festival on Aug. 22, also known as China's Valentines Day, a traditional holiday celebrating love and romance.
Energy, Environment, Science and Health
Mpox: China’s health authorities fight surge in cases of unknown origin | The BMJ A World Health Organization mpox situation report published on 14 August singled out “sustained community transmission in China” as driving the rise in cases in the region,1 which has bucked a broad global decline. Confirmed cases of the viral infection, which primarily spreads through contact with infectious lesions, increased nearly fivefold to 491 on the Chinese mainland in July, according to China’s Center for Disease Control and Prevention (China CDC).2 That was up from 106 cases in June.2 No deaths were recorded. Four in five of the cases had no known origin, according to a post on the China CDC website on 9 August.3