No big surprises in the NPC work report; Xi talks new productive forces with Jiangsu delegation; Second Thomas Shoal; TikTok
No big surprises in the NPC work report; Xi talks new productive forces with Jiangsu delegation; Second Thomas Shoal; TikTok
Summary of today’s Essential Eight:
Li Qiang delivers his first government work report - Li delivered his first work report as Premier. I highlight some of the key targets and tasks and include links to the full reports. There were no big surprises, it tracked well with the outcomes of the December Central Economic Work Conference and other meetings and propaganda since. The GDP growth target was ambitiously set to “around 5% 5%左右”, but the proposed fiscal support and deficit were not enough to get markets excited. Hong Kong stocks dropped, as did onshore ones, until the state apparently started buying again. Premier Li Qiang said in his report that “We owe our achievements in 2023 to General Secretary Xi Jinping, who is at the helm charting the course”. In his final work report last year the Premier Li Keqiang said in his report “We owe our achievements in these five years to the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core”.
Xi talks new productive forces with the Jiangsu delegation - Xi, who is a Jiangsu delegate to the NPC, held his first breakout sessions with the delegation from that province. The theme was developing new productive forces 新质生产力. According to the readout Xi told the delegates that “that it is necessary to firmly grasp high-quality development as the primary task and develop new productive forces according to local conditions. In the face of a new round of technological revolution and industrial transformation, we must seize the opportunity, increase innovation efforts, cultivate and grow emerging industries, plan ahead for the construction of future industries, and improve the modern industrial system. Developing new productive forces does not mean neglecting or abandoning traditional industries. It is important to prevent rushing in and creating bubbles, and not to adopt a one-size-fits-all approach. Local areas should adhere to starting from reality, establishing new approaches before breaking old ones, adapting measures to local conditions”. Cai Qi went with Xi to the Jiangsu meeting. Cai is a delegate from Qinghai but so far there has been no report of him meeting with that delegation, as he did last year. Perhaps he will meet with that group Wednesday.
Amending the Organic Law of the State Council - The NPC will pass the first revision of the Organic Law of the State Council since 1982. Based on the proposed revisions and an official explainer, this revision looks to be in part yet another move towards the Party eating the State.
Work report language about Taiwan - This year’s work report did not include language about “peaceful reunification” in the section about Taiwan. Instead it said “be firm in advancing the cause of China’s reunification”. Given the tweaks to the language in the readout of the Taiwan Work Conference to “It is crucial to resolutely combat "Taiwan independence" separatism 要坚决打击“台独”分裂” from “It is crucial to resolutely oppose "Taiwan independence" separatist activities 要坚决反对“台独”分裂活动”, are we seeing hints of a more impatient and assertive policy towards Taiwan in the works?
Philippines sailors injured by PRC water cannon - There was another attempt by the Chinese Coast Guard (CCG) to prevent a resupply of the grounded Sierra Madre at Second Thomas Shoal, Ren’ai Jiao. There were two boat collisions and the CCG used water cannons to try to prevent the Philippines boats from reaching the Sierra Madre. A CCG water cannon shattered the glass windshield on one of the Philippines vessels and four crewman were injured. The situation around this shoal is getting more and dangerous.
Draft US bill to decouple TikTok from the PRC - I have been skeptical that Congress would find the political will to actually match legislative attempts to force a divestment of Tiktok or shut it down with the all rhetoric, but a new bipartisan bill from the House Energy and Commerce and China Select Committees may be a sign of the shifting political mood against Bytedance/TikTok. People who understand Congress far better than I do say this has a chance of at least passing the House, which would be remarkable given the dysfunction in the House is at 11, but the Senate will be harder and even then it is not likely the Biden Administration wants it to pass, at least before the November election. There has been a wave of lobbying / law firms dropping PRC clients, if they are also now dropping Bytedance/TikTok, and perhaps investors lobbying on their behalf, then the odds of passage may go up a lot.
PRC-EU - Based on the readouts it does not sound like Li Hui, PRC special envoy for the Ukraine crisis, had an easy meeting with officials from the European External Action Service. And in spite of German efforts there are increasing signs that the EU may push back hard on several trade-related issues in the near future.
Thanks for reading.
The Essential Eight
1. Li Qiang delivers his first government work report
The main targets for development this year are projected as follows 今年发展主要预期目标是:
GDP growth of around 5 percent 国内生产总值增长5%左右;
over 12 million new urban jobs
surveyed urban unemployment rate of around 5.5 percent
CPI increase of around 3 percent
growth in personal income in step with economic growth
a basic equilibrium in the balance of payments
grain output of over 650 million metric tons
a drop of around 2.5 percent in energy consumption per unit of GDP
continued improvements in the environment
Pekingnology has provided a good comparison chart from the work reports since 2020:
Major Tasks for 2024 2024年政府工作任务:
1. Striving to modernize the industrial system and developing new quality productive forces at a faster pace 大力推进现代化产业体系建设,加快发展新质生产力;
2. Invigorating China through science and education and consolidating the foundations for high-quality development 深入实施科教兴国战略,强化高质量发展的基础支撑;
3. Expanding domestic demand and promoting sound economic flows 着力扩大国内需求,推动经济实现良性循环;
4. Continuing to deepen reform and boosting internal momentum for development 坚定不移深化改革,增强发展内生动力;
5. Pursuing higher-standard opening up and promoting mutual benefits 扩大高水平对外开放,促进互利共赢. This section concludes with this:
We will work for the implementation of free trade agreements that have come into force and conclude high-standard free trade agreements and investment treaties with more countries and regions. We will move forward with negotiations on building a Version 3.0 China-ASEAN Free Trade Area and work toward joining the DEPA and the CPTPP. We will get fully involved in the reform of the World Trade Organization and promote the building of an open global economy, so that the fruits of mutually beneficial cooperation will benefit people around the world.
推动落实已生效自贸协定,与 更多国家和地区商签高标准自贸协定和投资协定.推进中国—东 盟自贸区30版谈判,推动加入 «数字经济伙伴关系协定»、«全 面与进步跨太平洋伙伴关系协定».全面深入参与世贸组织改 革,推动建设开放型世界经济,让更多合作共赢成果惠及各国 人民.
6. Ensuring both development and security and effectively preventing and defusing risks in key areas 更好统筹发展和安全,有效防范化解重点领域风险;
7. Making sustained efforts to deliver in work relating to agriculture, rural areas, and rural residents and taking solid steps to advance rural revitalization 坚持不懈抓好 “三农”工作,扎实推进乡村全面振兴;
8. Promoting integrated development between urban and rural areas, advancing coordinated development between regions, and optimizing regional economic layout 推动城乡融合和区域协调发展,大力优化经济布局;
9. Enhancing ecological conservation and promoting green and low-carbon development 加强生态文明建设,推进绿色低碳发展;
10. Ensuring and improving the people’s wellbeing and promoting better and new ways of conducting social governance 切实保障和改善民生,加强和创新社会治理. This section concludes with:
We will apply and further develop the Fengqiao model for promoting community-level governance in the new era to better prevent and resolve disputes and promote law-based handling of public complaints. Better public legal services will be provided. We will take a holistic approach to ensuring law and order, combat organized crime and root out local criminal gangs on an ongoing basis, and crack down on illegal and criminal activities of all types in accordance with the law, so as to better pursue the Peaceful China Initiative.
坚持和发展新时代 “枫桥经 验”,推进矛盾纠纷预防化解,推动信访工作法治化.加强公共 法律服务.强化社会治安整体防控,推进扫黑除恶常态化,依法 打击各类违法犯罪活动,建设更高水平的平安中国
The key draft documents:
REPORT ON THE WORK OF THE GOVERNMENT (2024)
2024 National Development and Reform Commission Report
REPORT ON THE IMPLEMENTATION OF THE 2023 PLAN FOR
NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT AND
ON THE 2024 DRAFT PLAN FOR NATIONAL ECONOMIC AND
SOCIAL DEVELOPMENT
Ministry of Finance Report (2024)
REPORT ON THE EXECUTION OF THE CENTRAL AND
LOCAL BUDGETS FOR 2023 AND ON THE DRAFT CENTRAL
AND LOCAL BUDGETS FOR 2024
A useful explainer from
- China Govt Work Report: Analysis & Official InterpretationLi Qiang in his first work report as Premier:
Fellow Deputies,
We owe our achievements in 2023 to General Secretary Xi Jinping, who is at the helm charting the course, to the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, to the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, and to the concerted efforts of the whole Party, the armed forces, and Chinese people of all ethnic groups.
各位代表!
过去一年取得的成绩,根本在于习近平总书记领航掌舵,在 于习近平新时代中国特色社会主义思 科学指引,是以习近平同 志为核心的党中央坚强领导的结果,是全党全军全国各族人民团 结奋斗的结果。
Li Keqiang in his final government work report last year:
Fellow Deputies,
We owe our achievements in these five years to the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and the concerted efforts of the whole Party, the armed forces, and Chinese people of all ethnic groups.
各位代表！
这些年我国发展取得的成就，是以习近平同志为核心的党中央坚强领导的结果，是习近平新时代中国特色社会主义思想科学指引的结果，是全党全军全国各族人民团结奋斗的结果
2. Reporting on the first day of the NPC
Observers said a 5-percent GDP growth aligns with the long-term development goals laid out by the 14th Five-Year Plan (2021-25) and the Long-Range Objectives through 2035, which stated that the country's GDP should double by 2035, compared with its 2020 level. It also provides a necessary condition for China to achieve its goal of "creating over 12 million new urban jobs" in 2024 listed in the Government Work Report.
Yicai - China’s Fiscal Spending to Jump This Year, Economists Say
The budget deficit, special bonds, and ultra-long-term special government bonds that China plans for this year total CNY8.96 trillion (USD1.24 trillion), up about CNY280 billion (USD38.9 billion) from last year, said Luo Zhiheng, chief economist at Yuekai Securities.
The CNY1 trillion (USD139 billion) of special government bonds issued in the three months ended Dec. 31 will be mainly used this year, so fiscal spending will be higher, Luo added.
National general public budget expenditure will likely be CNY28.5 trillion, up CNY1.1 trillion on last year, according to the Government Work Report delivered by Premier Li Qiang at the National People's Congress in Beijing today.
The government has set this year’s targeted fiscal deficit-to-gross domestic product ratio at 3 percent, resulting in a deficit of CNY4.06 trillion, an increase of CNY180 billion. It has also set a special bond issuance quota of CNY3.9 trillion, a CNY100 billion rise.
China raises defense budget by 7.2% for 2024, 'conducive to peace, stability' - Global Times
China's defense budget has maintained single-digit growth for nine consecutive years since 2016. The growth rate was also set at 7.2 percent in 2023, while stably moved between six and eight percent in recent years.
Zhang Junshe, a Chinese military expert, told the Global Times that China's defense expenditure has been stable in recent years, and the consecutive single-digit growth showed that the increase is moderate and reasonable
China Focus: Chief drafter expounds on gov't work report-Xinhua
Huang Shouhong, head of the group for drafting the Chinese government work report this year, on Tuesday elaborated on the key points of the document and unveiled the process of its formulation..
Huang said the government set the 2024 growth target of around 5 percent by comprehensively taking into account various factors, including both domestic and international situations, as well as both the necessity and possibility of reaching such a rate.
He pointed out three reasons that underpin China's confidence and capability to realize the target, with the first being the country's unchanged fundamental driving forces that powered a 5.2 percent growth in 2023, as well as many advantages such as a gigantic market, a complete industrial system and numerous highly qualified workers.
The second is weakening adverse factors, including improving property investment and sales, easing local government debts, and quickening steps taken by small and medium-sized financial institutions to curb risks.
Thirdly, the official also noted that pro-growth policies rolled out in the second half of last year will kick in this year.
China's R&D expenditure exceeds 3.3 trln yuan in 2023: minister-Xinhua
China's research and development (R&D) expenditure exceeded 3.3 trillion yuan (about 458.5 billion U.S. dollars) in 2023, an 8.1-percent year-on-year increase, Minister of Science and Technology Yin Hejun said Tuesday.
Yicai - China Work Report Couples Steady Capital Market With Macro Policy for First Time
Placing the stability of the capital market in the same section as monetary policy in the work report means that markets used to trade financial assets such as stocks and bonds will not be considered in isolation but as an important factor when formulating macroeconomic policies, Li Huiyong, general manager of research development at Changjiang Pension Insurance, said to Yicai.
The State Council released the work report today, calling for an "increase of inherent stability in the capital market" closely together with the topic of a “prudent monetary policy.”
“It is very likely that the announcements will disappoint the market,” said Ding Shuang, chief economist with Greater China at Standard Chartered.
“However, the government has reiterated several times that it will not launch a strong stimulus.”
Instead, the work report and the budget released by the National Development and Reform Commission on Tuesday signalled the government was doubling down on structural change, channelling more funds to the science and technology needed to make that wholesale economic transition.
“Beijing’s budget inclination on technology, education, national defence and agriculture is in line with its current moves to ward off external shocks and increase strategic investment,” Ding added.
China Sets Ambitious GDP Growth Target of Around 5% at NPC 2024 - Bloomberg
Adding to the challenges, the 3% inflation target announced at the National People’s Congress means the country is aiming for nominal growth of about 8% again this year. In reality, China is battling the longest period of deflation since the late 1990s, meaning the economy only expanded 4.6% last year, before adjusting for inflation. With prices still falling, a strong expansion will be hard to achieve...
Xi’s mantra that “housing is for living in, not speculation” was omitted from the work report for the first time since 2019, as top leaders try to stabilize a property market that once drove about a quarter of GDP. That slogan has consistently been used by officials since 2016, and became an important way for Beijing to signal its intention to cool a then-overheating market.
China Plans $139 Billion Special Ultra-Long Debt for Economy - Bloomberg
It’s only the fourth such sale in the past 26 years, with the most recent one in 2020 when authorities issued 1 trillion yuan worth of those bonds to pay for pandemic response measures.
China aims to issue such ultra long-term special bonds for several consecutive years, though Li’s report didn’t include a target beyond 2024. Li said the government will “appropriately enhance the intensity of our proactive fiscal policy.”
Xi’s Name, Favored Slogan Dominate Key Government Report - Bloomberg
Xi Jinping’s name appeared in his government’s annual work report 16 times this year, the most since he took office more than a decade ago, underscoring the Chinese leader’s paramount status.
Premier Li Qiang name checked his boss on Tuesday more than his predecessor did in the 10 reports he delivered to the annual gathering of the National People’s Congress, according to Bloomberg-compiled data.
China’s New Economic Agenda, a Lot Like the Old One: Takeaways - The New York Times
Some people believed — or hoped, at least — that Tuesday’s reports would telegraph that China was ready to take bigger steps to resuscitate the economy, for example by bailing out local governments, rescuing the property companies that have not collapsed, or offering handouts to households to spur spending.
Instead, the government said it would make available a similar amount of money as last year in special bonds for local governments. It offered no new measures for the property market and only talked about the need to boost consumer confidence.
“They could have done more, and the support could have been greater,” said Tao Wang, chief China economist at UBS. “They need bigger explicit central government support,” she said.
3. Xi talks new productive forces with the Jiangsu delegation
Xi stresses developing new quality productive forces-Xinhua
Xi Jinping on Tuesday stressed developing new quality productive forces according to local conditions during the second session of the 14th National People's Congress, China's national legislature.
Xi...made the remarks when he participated in a deliberation with fellow lawmakers from east China's Jiangsu Province.
Xi called for focusing on high-quality development as the top priority, urging efforts to step up innovation, foster emerging industries, adopt forward-thinking plans for developing future-oriented industries and improve the modernized industrial system.
Developing new quality productive forces does not mean neglecting or abandoning traditional industries, Xi said. It is necessary to prevent a headlong rush into projects and the formation of industry bubbles, and avoid adopting just a single model of development, he noted...
Work must be done to support the growth of the private sector and private enterprises and spur the intrinsic impetus and innovative vigor of various business entities, Xi noted.
He also stressed deepening reforms in sci-tech, education and talent management systems to remove the bottlenecks and obstacles to the development of new quality productive forces.
It is also important to foster a world-class business environment that is market-oriented, law-based and internationalized, and create new strengths of a higher-standard open economy, he said.
Note: Xinhua does not seem to have decided if the official translation for 新质生产力 should be new productive forces or new quality productive forces. I am going with new productive forces.
CCTV/Xinhua on Xi’s Jiangsu delegation discussion - 习近平在参加江苏代表团审议时强调 因地制宜发展新质生产力_2024全国两会大型融媒体专题_新华网
Xi Jinping, General Secretary of the Communist Party of China Central Committee, President of the State, and Chairman of the Central Military Commission, emphasized on the afternoon of the 5th, while participating in the deliberation of the Jiangsu delegation at the Second Session of the 14th National People's Congress, that it is necessary to firmly grasp high-quality development as the primary task and develop new productive forces according to local conditions. In the face of a new round of technological revolution and industrial transformation, we must seize the opportunity, increase innovation efforts, cultivate and grow emerging industries, plan ahead for the construction of future industries, and improve the modern industrial system. Developing new productive forces does not mean neglecting or abandoning traditional industries. It is important to prevent rushing in and creating bubbles, and not to adopt a one-size-fits-all approach. Local areas should adhere to starting from reality, establishing new approaches before breaking old ones, adapting measures to local conditions, and providing categorized guidance. Based on local resources, industrial bases, and research conditions, selectively promote the development of new industries, new models, and new dynamics. Use new technologies to transform and upgrade traditional industries, and actively promote the high-end, intelligent, and green development of industries.
中共中央总书记、国家主席、中央军委主席习近平5日下午在参加他所在的十四届全国人大二次会议江苏代表团审议时强调，要牢牢把握高质量发展这个首要任务，因地制宜发展新质生产力。面对新一轮科技革命和产业变革，我们必须抢抓机遇，加大创新力度，培育壮大新兴产业，超前布局建设未来产业，完善现代化产业体系。发展新质生产力不是忽视、放弃传统产业，要防止一哄而上、泡沫化，也不要搞一种模式。各地要坚持从实际出发，先立后破、因地制宜、分类指导，根据本地的资源禀赋、产业基础、科研条件等，有选择地推动新产业、新模式、新动能发展，用新技术改造提升传统产业，积极促进产业高端化、智能化、绿色化..
The Jiangsu delegation's deliberation was enthusiastic and lively. Representatives Cui Tiejun, Gao Jifan, Song Yan, Wu Huifang, Wu Xinming, and Sun Jingnan spoke on issues such as achieving a high level of technological self-reliance and self-improvement, promoting high-quality development of China's photovoltaic industry, strengthening the protection and inheritance of cultural heritage, building happy villages for common prosperity, serving the integrated development of the Yangtze River Delta, and promoting the spirit of craftsmanship. Xi Jinping interjected from time to time, exchanging views with everyone.
江苏代表团审议热烈，气氛活跃。崔铁军、高纪凡、宋燕、吴惠芳、吴新明、孙景南等6位代表分别就实现高水平科技自立自强、推动中国光伏行业高质量发展、加强文化遗产保护传承、建设共同富裕的幸福村、服务长三角一体化发展、弘扬工匠精神等问题发言。习近平不时插话，同大家交流。
Chinese leaders attend deliberations at annual legislative session -Xinhua
Li Qiang, Zhao Leji, Wang Huning, Ding Xuexiang, Li Xi and Han Zheng on Tuesday attended deliberations at the second session of the 14th National People's Congress (NPC), China's national legislature.
Here are the reports on the breakout sessions of the other Standing Committee members and Han Zheng:
李强在参加云南代表团审议时强调 充分发挥优势彰显特色 更好融入国家区域协调发展大局_2024全国两会大型融媒体专题_新华网
赵乐际在参加四川代表团审议时强调 结合实际认真贯彻落实党中央决策部署 扎实推进中国式现代化四川实践_2024全国两会大型融媒体专题_新华网
王沪宁在参加贵州代表团审议时强调 全面贯彻落实党中央决策部署 奋发有为推进中国式现代化_2024全国两会大型融媒体专题_新华网
丁薛祥在参加辽宁代表团审议时强调 紧紧围绕新时代新征程党的中心任务 推动高质量发展取得实实在在的成效_2024全国两会大型融媒体专题_新华网
李希在参加福建代表团审议时强调 纵深推进纪检监察工作高质量发展 为强国建设民族复兴伟业提供坚强保障_2024全国两会大型融媒体专题_新华网
韩正在参加山东代表团审议时强调 深入贯彻党中央决策部署 全力以赴抓好各项工作落实_2024全国两会大型融媒体专题_新华网
4. Amending the Organic Law of the State Council
Chinese lawmakers deliberate draft revision to Organic Law of the State Council -Xinhua
It marks the first revision of the law, which was adopted in December 1982 when the country's current Constitution was formulated...
The draft revision, which contains 20 articles, adds provisions concerning the nature and position of the State Council per the Constitution, which stipulates that the State Council, namely, the Central People's Government, is the executive organ of the highest state organ of power, and it is the highest state administrative organ.
The draft explicitly outlines the State Council's commitment to building a law-based, innovation-driven, and service-oriented government of integrity, among others.
It also refines the expressions regarding the functions and powers of the State Council and adds a provision that the State Council exercises unified leadership over the work of local state administrative organs at all levels nationwide.
The draft revises provisions on the members of the State Council, further clarifying the duties of vice premiers and state councilors. It adds the governor of the People's Bank of China as a member of the State Council.
Now, amendments to an organic law, which governs the State Council and has not been updated since it was promulgated in 1982, will be reviewed this week and eventually passed.
Notably, the draft text makes it very clear that the State Council is an administrative body that upholds the leadership of the Communist Party, while the 1982 version, released when the Chinese leadership then was advocating the separation of party and government functions, did not have a single mention of the party.
“The party and the state are no longer parallel systems.
“Now, by design, Xi takes care of everything and simply authorises the premier to take care of very specific areas,” said Associate Professor Alfred Wu of the Lee Kuan Yew School of Public Policy.
“I’m always cautious about calling Li Qiang the No. 2 because he’s like a secretary to Xi.”
Xinhua - Explanation of the "People's Republic of China State Council Organization Law (Revised Draft)- 关于《中华人民共和国国务院组织法（修订草案）》的说明
An excerpt:
The 19th National Congress of the Communist Party of China proposed the important task of "improving the National Institutional Organization Law." In 2018, the First Session of the 13th National People's Congress passed the constitutional amendment, and the National People's Congress and its Standing Committee formulated and amended the Supervision Law, the National People's Congress Organization Law, the Local Organization Law, the People's Court Organization Law, and the People's Procuratorate Organization Law. The comprehensive leadership system of the Party was further perfected, and the institutionalization, standardization, and procedural level of the national institutional organization were further enhanced. The 20th National Congress of the Communist Party of China emphasized "transforming government functions, optimizing the government's responsibility system and organizational structure, and promoting the legalization of institutions, functions, powers, procedures, and responsibilities," making a clear deployment for advancing the legalization of government organizational institutions. To adapt to new situations, tasks, and requirements, it is necessary to amend the State Council Organization Law based on a careful summary of practical experience. This includes incorporating important content such as adhering to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guideline, upholding the comprehensive leadership of the Party, and reflecting the spirit and achievements of deepening the reform of the Party and state institutions through legal provisions. This further perfects the organizational system and working mechanisms of the State Council, ensures the correct political direction, comprehensively strengthens the government's self-construction, and provides a solid legal guarantee for building a government that satisfies the people, is governed by law, innovative, clean, and service-oriented.
党的十九大提出“完善国家机构组织法”的重要任务。2018年十三届全国人大一次会议通过宪法修正案，全国人大及其常委会制定修改监察法、全国人大组织法、地方组织法、人民法院组织法、人民检察院组织法，党的全面领导制度体系进一步健全，国家机构组织制度化、规范化、程序化水平进一步提高。党的二十大强调，“转变政府职能，优化政府职责体系和组织结构，推进机构、职能、权限、程序、责任法定化”，对推进政府组织机构法定化作出明确部署。为了适应新形势新任务新要求，有必要在认真总结实践经验基础上修改国务院组织法，将坚持以习近平新时代中国特色社会主义思想为指导、坚持党的全面领导等重要内容载入国务院组织法，将深化党和国家机构改革的精神和成果通过法律规定予以体现，进一步健全国务院组织制度和工作制度，确保正确政治方向，全面加强政府自身建设，为建设人民满意的法治政府、创新政府、廉洁政府和服务型政府提供坚实法治保障
NPC Observer posted the explainer as well as a chart comparing the current law and the proposed revisions - 关于《中华人民共和国国务院组织法（修订草案）》的说明
5. Work report language about Taiwan
The language about Taiwan:
We will implement our Party’s overall policy for the new era on resolving the Taiwan question, stay committed to the one-China principle and the 1992 Consensus, and resolutely oppose separatist activities aimed at “Taiwan independence” and external interference.
We will promote the peaceful development of cross-Strait relations, be firm in advancing the cause of China’s reunification, and uphold the fundamental
interests of the Chinese nation. By advancing integrated cross-Strait development, we will improve the wellbeing of Chinese people on both sides so that together, we can realize the glorious cause of national rejuvenation.我们要坚持贯彻新时代党解决台湾问题的总体方略,坚持一 个中国原则和 “九二共识”,坚决反对 “台独”分裂和外来干涉, 推动两岸关系和平发展,坚定不移推进祖国统一大业,维护中华 民族根本利益.深化两岸融合发展,增进两岸同胞福祉,同心共 创民族复兴伟业.
This year's Government Work Report omitted the term "peaceful reunification" when talking about the Taiwan question. Instead, it says we will "be firm in advancing the cause of China's reunification."
Chinese observers believed this signals that countering secessionism has already become a priority in addressing the Taiwan question and opposing foreign interference, which is also a practical approach in regard of the status quo. Yet the central government's overall stance on the Taiwan question remains consistent and unchanged.
They said that in this year's Government Work Report,the terms for the Taiwan question are more concise than those seen in previous years and this implies that more will be done than said in addressing this question in the near future. ..
Omitting "peaceful reunification" doesn't mean that the Chinese mainland will drop its pursuit of this goal; it signals that fighting secessionism will be a more urgent and practical task for the mainland in the coming years when addressing Taiwan question, replacing the priority of peaceful reunification, Xin Qiang, deputy director of the Center for American Studies at Fudan University, told the Global Times on Tuesday.
He contributed the reasons for such change to candidate of the Democratic Progressive Party Lai Ching-te's victory over Taiwan's regional election, and the flaring cross-Straits tension, including violent chasing by the Taiwan side of a mainland fishing boat, which resulted in the tragic deaths of two fishermen.
Hu Xijin tweeted his interpretation of the changed language:
6. Philippines sailors injured by PRC water cannon
Philippines says crew hurt, vessels damaged by China Coast Guard | ABS-CBN News
The BRP Sindangan, along with a sister ship, had been deployed to support the military chartered Unaizah May 4 and Unaizah May 1 boats carrying replacement soldiers and supplies to Second Thomas Shoal, where Filipino troops are stationed on a grounded Philippine navy vessel, the BRP Sierra Madre...
Four crew on board the Unaizah May 4 were injured when two China Coast Guard ships simultaneously fired water cannon at it, shattering the windshield, the National Task Force for the West Philippine Sea said in a statement.
It said a China Coast Guard vessel also caused a "minor collision" with the Unaizah May 4, which turned back to shore without delivering its cargo.
Earlier in the morning, the task force added, a China Coast Guard vessel caused a separate "minor collision" with one of the Philippine Coast Guard ships that was escorting the supply boats.
China Coast Guard spokesman Gan Yu accused the Philippine Coast Guard ship of "intentionally" ramming the Chinese boat, causing a "minor scrape".
The Unaizah May 1 was able to unload its provisions
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Philippines Coast Guard says ship damaged in collision with Chinese vessel - YouTube
PIA - Statement of the National Task Force for The West Philippine Sea
Once again, China's latest unprovoked acts of coercion and dangerous maneuvers against a legitimate and routine Philippine rotation and resupply mission to Ayungin Shoal, have put the lives of our people at risk and caused actual injury to Filipinos on board UM4. The systematic and consistent manner in which the People's Republic of China carries out these illegal and irresponsible actions puts into question the sincerity of its calls for peaceful dialogue and lessening of tensions.
The China Coast Guard (CCG) on Tuesday took restriction measures, including the use of water cannon, against Philippine vessels that had trespassed into waters off China's Ren'ai Jiao (also known as Ren'ai Reef) in the South China Sea, during which a Filipino vessel intentionally rammed into a Chinese ship and causing a minor scrape.
The Philippines' moves are unprofessional, irrational and immature that broke the status quo, escalating the tensions to an extremely dangerous level, experts warned, urging the Philippine side to return to the negotiating table as soon as possible.
Breaking its promise, the Philippines on Tuesday intentionally sent two coast guard ships and two cargo ships to trespass into waters off Ren'ai Jiao in China's Nansha Islands to send supplies to its illegally grounded warship, Gan Yu, a CCG spokesperson, said in a statement on Tuesday.
Philippines summons China diplomat over 'aggressive' actions in South China Sea | Reuters
The Philippines summoned China's deputy chief of mission in Manila on Tuesday to protest at what it called "aggressive actions" by Chinese naval forces against a resupply mission for Filipino troops stationed on a South China Sea shoal...
Chinese coast guard ships fired water cannon, shattering the windshield of one of the resupply boats and causing minor injuries to at least four crew members, the task force said.
Their "reckless" and "illegal" actions also led to a collision between a Chinese and Philippine ship, with the latter sustaining minor structural damage, Manila's coast guard spokesperson said separately.
The Philippine foreign ministry said it had summoned the Chinese diplomat on Tuesday to convey its protest and to demand that Chinese vessels immediately leave the vicinity of the Second Thomas Shoal, which Manila calls Ayungin.
Who are stirring up the situation in the South China Sea? Who are spreading “China threat”? Who are ganging up in small blocks? Who invented “economic coercion”? Where did it originate? Who weaponizes economic power and gets addicted to sanctions? The questions are self-explanatory.
Peace and development are the trend of the times and the common aspiration of countries in the region. Asian countries and people have the wisdom and ability to solve their own problems. Bringing in outside forces and forming “small circles” will not help resolve disputes in the South China Sea, but only complicate the regional situation, undermine regional peace and stability, and backfire on its own security.
For those who habitually pay lip service, whether their promises will be kept this time is for all to wait and see.
We urge the said individual to stop spreading erroneous “China threat” and “Sinophobia” remarks, refrain from serving as mouthpiece for another country and do more for the benefit of his own people and his country’s relations with China instead.
China urges Philippines to stop maritime infringement, provocation-Xinhua
China lodged serious representations to the Philippine side on its intruding vessels into the adjacent waters of Ren'ai Jiao, and once again urges the Philippines to stop maritime infringement and provocation, foreign ministry spokesperson Mao Ning said on Tuesday.
Mao made the remarks at a regular news briefing when asked to comment on the collision between Chinese and Philippine boats in the South China Sea.
Mao said that on March 5, two supply vessels and two Coast Guard vessels of the Philippines, without permission from the Chinese government, intruded into the adjacent waters of Ren'ai Jiao of China's Nansha Qundao, in an attempt to send materials, including construction materials, to the vessel illegally grounded at Ren'ai Jiao.
China Coast Guard took necessary measures toward the Philippine vessels in accordance with law. The actions taken at the scene were professional, restrained, justified and lawful, Mao added.
China firmly opposes Philippines approving "Maritime Zones Act": spokesperson-Xinhua
Spokesperson Mao Ning made the remarks in response to a related query at a daily news briefing.
Mao said China noticed the relevant developments. The "Maritime Zones Act" approved by the Senate of the Philippines has attempted to further enforce the illegal arbitral award on the South China Sea by domestic legislation and include China's Huangyan Dao, most islands and reefs of China's Nansha Qundao, and their adjacent waters into its maritime zones, which severely violates China's territorial sovereignty and maritime rights and interests in the South China Sea.
Oped by Yang Xiao, deputy director of Institute of Maritime Strategy Studies at China Institutes of Contemporary International Relations
Since 2024, the Philippines has maliciously broken its commitments and mutual agreements, and broken the status quo. It has increased the use of government vessels, dispatched coast guard and other law enforcement vessels to Huangyan Dao and Ren'ai Jiao respectively, and systematically mobilized a large number of maritime militia vessels to stay for a long time and make provocations. Furthermore, it has sent senior officials to board the grounded vessel in disguise, and unsafely and unprofessionally operated government vessels to dangerously collide with Chinese law-enforcement vessels. Escalating the confrontation to the extremely dangerous level of "paramilitary operations" with a series of complex and spillover irresponsible actions is an extremely irresponsible escalation of the crisis, moving it closer to the brink of conflict and war. Mankind has experienced too many tragic cases since the Cold War. Some politicians lacking strategic vision and political literacy are bent on stirring up strained regional nerves for their own selfish interests, creating extremely dangerous potential major crises. Eventually, they will definitely be abandoned by the people and humiliated in the long river of history.
7. Draft US bill to decouple TikTok from the PRC
Rep. Mike Gallagher (R-WI) and Rep. Raja Krishnamoorthi (D-IL), Chairman and Ranking Member of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, today introduced the Protecting Americans from Foreign Adversary Controlled Applications Act. The bill prevents app store availability or web hosting services in the U.S. for ByteDance-controlled applications, including TikTok, unless the application severs ties to entities like ByteDance that are subject to the control of a foreign adversary, as defined by Congress in Title 10.
In addition, the bill creates a process for the President to designate certain, specifically defined social media applications that are subject to the control of a foreign adversary—per Title 10—and pose a national security risk. Designated applications will face a prohibition on app store availability and web hosting services in the U.S. unless they sever ties to entities subject to the control of a foreign adversary through divestment.
The bill is co-led by House Republican Conference Chair Elise Stefanik (R-NY), Rep. Kathy Castor (D-FL), Rep. Bob Latta (R-OH), Rep. Andre Carson (D-IN ), Rep. Kevin Hern (R-OK), Rep. Seth Moulton (D-MA), Rep. Chip Roy (R-TX), Rep. Mikie Sherrill (D-NJ), Rep. Neal Dunn (R-FL). Rep. Haley Stevens (D-MI), Rep. Ralph Norman (R-SC), Rep. Jake Auchincloss (D-MA), Rep. Kat Cammack (R-FL), Rep. Ritchie Torres (D-NY), Rep. John Moolenaar (R-MI), Rep. Shontell Brown (D-OH), Rep. Ashley Hinson (R-IA), and Rep. Josh Gottheimer (D-NJ).
Bill Introduced to Force ByteDance to Sell TikTok - Pirate Wires
Today, a bipartisan group of lawmakers introduced a bill that would force ByteDance, the Chinese technology company that owns TikTok, to sell the app due to national security concerns.
Representative Mike Gallagher (R-WI), chair of the House select China committee, and Raja Krishnamoorthi (D-IL) co-authored legislation that would give ByteDance 165 days to divest from TikTok or face a ban from US app stores. The legislation would also expand the president's power to ban or restrict apps deemed concerning to national security.
The draft bill, heading for markup Thursday - Protecting Americans from Foreign Adversary Controlled Applications Act - Punchbowl News
New Energy and Commerce/China select committee bill that would effectively force ByteDance to sell TikTok if they want to stay in the U.S. market
US bill would ban TikTok from app stores unless ByteDance divests it - Financial Times
One congressional aide said the bill was a “monumental moment” and that there was a “huge groundswell of bipartisan support” for the measure on Capitol Hill.
Previous congressional efforts to ban TikTok have been unsuccessful, particularly after some lawmakers raised concerns about any prohibition infringing on free speech. Congressional aides said this bill was designed to overcome those barriers.
A second congressional aide said many lawmakers had shifted their view on TikTok and were more willing to risk the wrath of younger voters following classified briefings from officials on the security risks. The legislation would not ban app stores from distributing TikTok in non-US markets, another congressional aide noted.
Related - The China Threat: Silicon Valley and the Great Uncoupling - YouTube
Representatives Mike Gallagher (R-WI) and Jake Auchincloss (D-MA) discuss why the United States must strengthen its technological advantage in areas like AI, develop next-generation manufacturing capabilities domestically, and rethink how Silicon Valley does business with China. Gallagher is Chair of the House Select Committee on the CCP, on which Auchincloss also serves.
8. PRC-EU
Ukraine: EEAS Senior Officials meet Chinese Special Envoy | EEAS
The EU highlighted that Russia’s war is an existential threat for its security and that therefore China's position on the war inevitably impacts our bilateral relationship...
The EU expects China, as a Permanent Member of the UN Security Council, to play a constructive role and to use every occasion to uphold and promote the UN Charter and international law. The EU side stressed it expects China to call on to Russia to respect the principles of sovereignty, independence and territorial integrity immediately and unconditionally by withdrawing all forces and military equipment from the entire territory of Ukraine within its internationally recognised borders.
The EU side reiterated its serious concerns, which were also passed at the EU-China Summit on 7 December 2023, regarding significant volumes of dual use and advanced technology items being exported from China to Russia’s military industrial complex. In this context, the EU urged China to take effective steps within its jurisdiction to curb the flows of those most sensitive items.
They had a candid and in-depth exchange of views on the crisis situation in Ukraine and the peace talks. Head of the Chinese Mission to the European Union (EU) Ambassador Fu Cong and Minister Zhu Jing attended the meeting.
Li Hui also said that China firmly opposes the EU's inclusion of Chinese enterprises in the latest list of sanctions against Russia, urging the EU to unconditionally cancel the listing of Chinese enterprises and return to the right track of dialogue and consultation with China.
EU’s leading party gets tough on China – POLITICO
The Angela Merkel brand of European conservatism and Wandel durch Handel (change through trade) mantra toward China is now being formally consigned to the dustbin of history. The European People’s Party (EPP) — the frontrunner in June’s European Parliament poll — is now run by Merkel’s former German cabinet loyalist Ursula von der Leyen. As we reported last week, the past five years with von der Leyen as the European Commission president have seen the EU make drastic geostrategic readjustments on China, especially after the Russian war against Ukraine. This week, the EPP shows that — contrary to a widely-shared belief in Beijing — this toughness is not just about von der Leyen’s views but can be seen front-and-center in the party’s core thinking.
Manifesto mentions: In a final draft of the party’s manifesto, obtained by POLITICO’s Peter Wilke, the EPP makes more than a dozen mentions of China and Taiwan — compared with 10 “Russia” references or the three (easily missable) name-drops of “strategic autonomy.”..
For the EPP, the EU’s biggest trade enemy is now officially China. Saying that it would like to “trade with the entire world,” it adds that European countries should “foster a special cooperation with like-minded partners in a Union of Democracies to remain competitive vis-à-vis dominant competitors such as China.”
Watching China in Europe with Noah Barkin—March 2024 Edition
There is a clear understanding in Paris of what is at stake. “If we submit to China, it will be the end of the European car industry,” the senior French official told me. “Europe can’t shy away from taking action out of fear of Chinese retaliation.” But there still appears to be a disconnect between the Commission and Germany, whose carmakers fear that China’s anti-dumping investigation into French brandy is just an aperitif before they are served up as the main course. Scholz must avoid during his April 15-16 trip to Beijing the trap that Merkel fell into over a decade ago, when she torpedoed a Commission trade case against China on solar panels during a visit by Chinese Premier Li Keqiang to Berlin.
Back then, pushback from the Free Democrats (FDP), Merkel’s coalition partner at the time, played a role in undermining the Commission’s case. The same dynamic could play out this time, as the FDP pursues a wag-the-dog campaign to thwart any and all EU measures that displease German industry. Scholz should view the trip as an opportunity to strengthen Europe’s leverage with Beijing by making clear to his Chinese counterparts that his government, while concerned with EU-China trade tensions, stands fully behind the Commission’s push to level the economic playing field. “The Chinese side will put enormous pressure on Scholz to repudiate the EU measures,” said a German industry official who supports the Commission’s trade moves. “It would be an absolute disaster if he bowed to the pressure.”
COMMISSION IMPLEMENTING REGULATION (EU) …/... making imports of new battery electric vehicles designed for the transport of persons originating in the People’s Republic of China subject to registration - Laying the groundwork to retroactively levy tariffs if the EU anti-subsidy investigation decides they are needed? Who would buy a car if you thought you might owe a bunch more in taxes on it later?
EU reaches deal on forced labour ban, with China’s Xinjiang in its sights | South China Morning Post
The ban, which still needs to be approved by the European Parliament and the Council – made up of EU member states – will target specific economic sectors in places where state-imposed forced labour exists, based on a database drawn up by the European Commission. China is not named in the documentation, given the need to comply with World Trade Organization rules. But the initial proposal was driven by widespread allegations of state-sponsored forced labour in the Chinese region of Xinjiang, which Beijing denies.
Business, Economy and Trade
China Stocks Fall as 2024 Growth Target Unveiled at NPC Fails to Impress - Bloomberg Some exchange-traded funds tracking Chinese stocks saw a surge in turnover, a sign that state-backed funds are supporting the market after some investors expressed disappointment with the government’s growth target. The CSI 300 Index of mainland shares extended gains in the afternoon to close 0.7% higher, taking its advance this year to nearly 4%. In contrast, the Hang Seng China Enterprises Index slumped 2.6% on Tuesday, with tech and healthcare stocks leading the decline.
Caixin - China’s Services Sector Posts Slower Growth With Sharp Drop in Jobs, Caixin PMI Shows Activity in China’s services sector grew for a 14th straight month in February, but at a slower pace than the previous month, with the sharpest contraction in employment since December 2022, according to a Caixin-sponsored survey released Tuesday. The Caixin China General Services Business Activity Index, which provides an independent snapshot of operating conditions in industries such as retail and tourism, fell 0.2 points in February from the previous month to 52.5
Yicai - Vanke Says Chinese Builder Can Pay USD630 Million Bond Vanke is arranging the funds transfer, the Shenzhen-based company said in a statement today. The builder sold the bond, which carries a coupon rate of 5.35 percent, in December 2018. After March 11, Vanke's next debt payment deadline will be April 29, when a CNY2 billion (USD277.8 million) bond comes due.
Yicai - Chinese State Carmakers Jump After SOE Manager Seeks to Unshackle Their NEV Innovation
Shares in Dongfeng Automobile and two other Chinese state-backed carmakers surged today after the state assets manager said their new energy vehicle businesses will be assessed independently...
The new review process will aim to stimulate innovation at the three centrally-managed automakers and remove the institutional handicaps that are holding them back, said Zhang Yuzhuo, head of the State-owned Assets Supervision and Administration Commission.
Speaking in Beijing today at the so-called Two Sessions, China’s key annual policy-setting meetings, Zhang said the SASAC recognizes the significant initial investment required for NEV firms, and that using short-term profits as a way to review their performance could hinder their development.
Zhang Yuzhuo’s comments - 国务院国资委：将调整政策对三家中央汽车企业进行新能源汽车业务单独考核 What the world needs is SOE EV firms ramping up to try to compete globally without concerns about profits…
NPC deputy: China needs to build globally recognized car brands - CGTN China needs to build globally recognized car brands as well as achieve high sales volume to become a major and strong automobile country, said Yin Tongyue, a deputy to China's 14th National People's Congress (NPC) and chairman of Chery Holdings Group, at the "Deputies' Corridor" in the Great Hall of the People in Beijing on Tuesday.
How Government Intervention is Transforming China’s Industrial Economy - IGCC In this policy brief, IGCC affiliate Barry Naughton explores the more aggressive role that China’s government is taking in techno-industrial policy, and the extent to which these new interventions are fundamentally reshaping the relationship between government and enterprise.
China’s excess savings are a danger - Martin Wolf -Financial Times
A current account surplus of 4 per cent of GDP does not look large by China’s past standards. But, since 2007, when China’s current account surplus peaked at 10 per cent of GDP, its share of the world economy (at market prices, which is what matters here) has jumped from 6 to 17 per cent. So, from the point of view of the rest of the world, a Chinese surplus of 4 per cent of GDP is far bigger than one of 10 per cent in 2007.
Who is going to run the offsetting deficits? Who, in particular, will run them when the concomitant rise in exports will be driven by investment in competitive manufactures, such as electric vehicles? The answer is not creditworthy high-income countries: they will view these as “beggar-my-neighbour” policies. The same will surely be true for big emerging economies, such as India. If China wants the mercantilist solution to excess savings it will have to fund smaller emerging and developing countries. It can pretend these are loans. But much of the money will be grants, after the fact. If it ends up funding renewable energy there, that could be good for the world. But, from China’s perspective, it would be a costly gift.
What ‘deep concerns’ were raised when Premier Li Qiang met US Chamber of Commerce? | South China Morning Post members of the US chamber were said to have expressed doubts on issues such as the effectiveness of working groups established by the US Department of Commerce and Treasury, as well as on China’s motivation to resolve problems in the pharmaceuticals market. “All capital expenditures moving forward are largely not in China,” the source said. “They are seeing a slow reorganisation of global capital expenditures flow.
Foreign investors are right to see China as a trade more than a long-term bet - Mohamed El-Erian - Financial Times China should find little solace in the recent performance of its stock market. These speculative “tourist flows” are not a leading indicator for more stable, long-term “resident flows”. To attract the latter, the government needs three elements: decisive reform measures to facilitate critically-needed economic transitions, reduced tensions with the US, and a shift away from the expensive expansion of international economic and financial influence. In the interim, foreign investors are justified in regarding their ventures into Chinese stocks as short-term.
CDT - Sun Liping’s “Three Simple Points” About Reviving the Economy Deleted From WeChat [W]e need to recognize that the extraordinarily fast-paced period of “remedial” economic development has come to an end. China’s future economic development needs to be predicated on a new foundation. But what is this new foundation? I believe that it is based on three salient points: effective rule of law, limitations on the exercise of power, and the functioning of a “normal” society. With this foundation in place, the economy is unlikely to grow by leaps and bounds as it did before, but our economic development will be built upon a healthier and more lasting foundation. Whether this foundation can be established will determine the future of China’s economy. // Sun is a sociologist at Tsinghua
Grassroots insights unveil trends in China’s consumption, real estate, industry, and employment by
This report features insights from grassroots research conducted by over 100 researchers across 23 teams in more than 100 towns and cities during the recent Spring Festival in China. The study covers consumer behaviors, real estate pressures, industrial activities under export pressures, and income and employment.Politics and Law
The Supreme People’s Court’s New Case Database | Supreme People's Court Monitor On February 27, 2024, the Supreme People’s Court (SPC) held a press conference to announce the new SPC case database 人民法院案例库 (People’s Courts Case Database). As of this writing, fewer than 4000 cases have been incorporated. This new case database provides a collection of edited cases (案例) rather than original judgments, rulings, or other judicial documents as collected in China Judgements Online (裁判文书网). I summarize below the process by which edited cases are selected for inclusion in the People’s Courts Case Database.
Foreign and Defense Affairs
New Frontiers in Foreign Propaganda - China Media Project
what Discovery stands accused of with regards to China is no laughing matter. According to a group of US Congressmen, the channel is “whitewashing genocide” against the Uyghurs and other ethnic minorities in far-western Xinjiang. In an open letter last month to the president and CEO of parent company Warner Bros. Discovery, six Republican representatives called World’s Ultimate Frontier — a new co-production between Discovery and CGTN, the international division of state-run broadcaster CCTV — “an obvious work of propaganda on the part of a totalitarian, adversary regime.”...
In an article published in May last year in the pages of Research on Ideological and Political Work (思想政治工作研究), a journal published by the CCP’s Central Propaganda Department, China Media Group chief Shen Haixiong (慎海雄) — himself a deputy propaganda minister — highlighted World’s Ultimate Frontier as an essential “external communication brand” for the Party.
“We have worked to build a Chinese discourse and a Chinese narrative system, so as to make the image of a credible, lovable and respected China more vivid and lively,” said Shen, directly referencing remarks on global propaganda Xi Jinping made at a collective study session of the Politburo two years earlier. Shen continued by saying that CMG would “optimize mechanisms of cooperation with international mainstream media, creating such foreign communication brands as Entering Xinjiang and Rooted in China.” This passage by the head of the group overseeing Discovery’s co-production partner, CGTN, clearly indicates that the Entering Xinjiang (World’s Ultimate Frontier) program was conceived on the Chinese side as directly serving the external propaganda goals of the state.
Question: Is Discovery CEO David Zaslav unaware of the background of the partnership, or does not care? Congress could probably have some fun with discovery of Discovery using its subpoena power
Lies, rumors fabricated over Xinjiang, Xizang to contain China's development: Chinese FM - Global Times In recent years, some Western countries have attacked and smeared China under the pretext of human rights. They have concocted a number of rumors and lies on issues related to Xinjiang and Xizang. What they did was not at all out of care for human rights, but for the purpose of holding back China's development, Mao Ning, spokesperson for the Chinese Ministry of Foreign Affairs, said on Tuesday, responding to the latest smear from the UN High Commissioner for Human Rights. Volker Turk, UN human rights chief, on Monday called on China to "amend laws that violate fundamental rights," naming China's Xinjiang and Xizang regions.
China Spurns Ukraine Diplomats at Home, Undermining Peace Push With Russia - Bloomberg Li Hui, China’s special envoy for Eurasian affairs, arrived in Russia on Saturday, the first port of call for a trip that will also take him to Poland, Ukraine, Germany, France and Belgium. This is Li’s second round of shuttle diplomacy since Russia’s invasion of Ukraine two years ago...Beijing’s outreach abroad appears to contrast with its actions at home. Ukraine’s ambassador, Pavlo Riabikin, has secured only a handful of meeting since his arrival in the Chinese capital last summer, despite sending requests to almost 40 different ministries and municipalities, according to a person familiar with the matter, who asked not to be identified discussing private information.
Australia’s Nuclear Subs Will Be Welcome in Singapore, PM Lee Hsien Loong Says - Bloomberg Australia’s future fleet of nuclear submarines will be welcome to dock in Singapore, Prime Minister Lee Hsien Loong said, as differences over how to handle China’s burgeoning military footprint dominated the early stages of a special Asean summit in Melbourne.
Imperial College London academics worked with Chinese military-linked institutions - Financial Times Academics at Imperial College London have worked with scientists at Chinese institutions linked to Beijing’s armed forces and defence sector on research with potential military applications. Since 2023, academics at the world-leading British university have been named as co-authors on at least five studies with figures from organisations at the heart of China’s military-industrial complex...The university, one of the UK’s top science and technology institutions, remains at the forefront of Sino-British links, including partnerships with Chinese telecoms company Huawei and Aviation Industry Corporation of China, a major state-owned defence and aerospace group.
Maldives signs China defence deal as India prepares exit - AFP The Maldives has signed a "military assistance" deal with China after ordering Indian troops deployed in the small but strategically-placed archipelago to leave, officials said Tuesday. Some 89 Indian military personnel in the country will be gone by May 10 after having been previously ordered out by pro-China President Mohamed Muizzu, who came to power last year on an anti-Indian platform.
China and Saudi Arabia Hold the Seventh Round of Consular Consultation On March 5, 2024, Director-General of the Department of Consular Affairs of the Foreign Ministry Wu Xi and Undersecretary of Ministry of Foreign Affairs for Consular Affairs of Saudi Arabia Ali Bin Yousef Abdulrahman Al Mulla co-chaired the seventh round of consular consultation between China and Saudi Arabia in Beijing. The two sides had an in-depth exchange of views on facilitating personnel exchanges and safeguarding the safety and legitimate rights and interests of overseas citizens, among others. The two sides agreed to take the important common understandings reached by leaders of the two countries as a guide to further deepen consular cooperation and promote the conclusion of relevant arrangements for visa facilitation, in a bid to boost the development of the comprehensive strategic partnership between China and Saudi Arabia // safeguarding the safety and legitimate rights and interests of overseas citizens about this? Turkish media reveal identities of alleged spies for China — Radio Free Asia Habertürk revealed the identities of four the six men arrested earlier this week, indicating they met with Chinese intelligence officials in Saudi Arabia
The Lawfare Podcast: The i-Soon Leaks with Winnona DeSombre Bernsen | Lawfare Eugenia Lostri, Lawfare’s Fellow in Technology Policy and Law, sat down with Winnona DeSombre Bernsen, nonresident fellow at the Atlantic Council, to talk through the leaks and her research into the key similarities and differences between the Chinese companies and their counterparts. They talked about how the Chinese government hoards vulnerabilities, the similar contracting headaches that firms in the U.S. and China suffer from, and how the findings from this leak can be used to develop better norms.
CDT - Chinese State Media, Others Highlight Contrasting U.S. Stances on Xinjiang, Gaza Several China-focused scholars and other observers have argued that continued American diplomatic, financial, and military support to Israel for its war in Gaza, despite the International Court of Justice (ICJ)’s finding that there is a plausible case that Israel’s conduct constitutes genocide, has weakened U.S. credibility on Xinjiang. The U.S. government has argued that the Chinese government is committing genocide against Uyghurs and other ethnic groups in the region. The Chinese government and state media have also picked up on this contrast, their criticism of the U.S. role in the war emboldened by what Human Rights Watch has termed “America’s hypocrisy” over human rights.
Paul Keating says ‘goon show’ spy chiefs have undermined relations with Asia | The Australian Paul Keating has blasted the government’s regional strategy, warned security tsars Mike Burgess and Andrew Shearer should have been sacked, and accused Foreign Minister Penny Wong of seeking to “rattle the China can” at ASEAN. In another intervention in the national debate from the former Labor prime minister, Mr Keating argued that Australian foreign policy towards Beijing and the broader region was conflicted because of the “Goon Show” led by Mr Burgess, who heads up ASIO, and Mr Shearer, who runs the Office of National Intelligence.
Hong Kong
Exclusive: Regina Ip refutes Roach’s claims on Hong Kong again; calling UK’s criticism on Article 23 legislation ‘most absurd’ - Global Times In the interview with the Global Times on Monday, Ip said that Roach did come to Hong Kong in 2023, but he completely ignored the fact that the departure of Western funds is the main reason for the short-term decline in trading volume and the Hang Seng Index in Hong Kong, like "capital embargo," she pointed out, and it takes time for Hong Kong to attract funds from the Middle East and Southeast Asia.
Tech and Media
Bloomberg Television launches 'Bloomberg: The China Show' | Editor and Publisher Airing weekdays from 9-11 a.m. HKT, the show will be anchored by Bloomberg TV hosts Yvonne Man and David Ingles live from Hong Kong. Man and Ingles also will be joined regularly by Bloomberg’s Chief North Asia correspondent, Stephen Engle. “The China Show” will cover breaking news and finance stories from Beijing to Hong Kong, and will give viewers in-depth analysis on themes shaping the country including politics, policy, tech and what’s trending in the mainland. All changes will be effective on March 4.
AMD Hits US Roadblock to Sell AI Chip for China as Part of Tech Crackdown - Bloomberg AMD had hoped to gain a green light from the Commerce Department to sell the AI processor to Chinese customers, according to the people, who asked not to be identified because the situation is private. The chip has lower performance than what AMD sells outside of China and was designed to meet US export restrictions, they said. But US officials told AMD that the chip was still too powerful and that the company must obtain a license from Commerce’s Bureau of Industry and Security in order to sell it, the people said. AMD didn’t have an immediate comment, while the Bureau of Industry and Security declined to comment. It’s not yet clear whether AMD is applying for a license.
Europe’s chips research champion is cutting China ties – POLITICO Belgium-based Imec, a world-leading research center in microelectronics, has soured on China. Imec has "drastically reduced" its Chinese partnerships, the Flemish Economy Ministry, which oversees the microchips research center, told POLITICO. The research center will continue to phase out ongoing obligations on more mature technology.
Yicai - Huawei Inks Global Patent Cross-Licensing Deals With Amazon, Vivo Chinese telecoms giant Huawei Technologies has entered into a multi-year patent cross-licensing agreement with Amazon, settling a patent dispute between them, and signed a similar deal with phone maker Vivo Communication Technology. The Amazon agreement resolves pending litigation the US technology company had with Huawei
Apple IPhone Sales in China Plummet 24% as Vivo, Not Huawei, Becomes Best-Seller - Bloomberg Shenzhen-based Huawei Technologies Co. has been a thorn in Apple’s side since the surprising debut of its homegrown Mate 60 Pro devices, which triggered a wave of patriotic buying and took share away from the US company. Huawei jumped to 16.5% of the Chinese market in the first six weeks, up from 9.4%. The company that split from Huawei in 2020, Honor Device Co., was the only other major maker to show unit sales growth, at 2%. Apple’s market share fell below 16%, from 19%, according to the researchers. “Despite a decline in consumer confidence, Huawei’s enhancements in production enabled the company to meet demand for its popular Mate 60 series,” said Counterpoint analyst Ivan Lam
Energy, Environment, Science and Health
Caixin Q&A: A Balancing Act to Build a Safe and Efficient Energy System The move to a green and low-carbon economy requires the concerted efforts of both traditional and new energy sectors. As China’s top legislators and political advisers are gathering in Beijing for this year’s “Two Sessions” meetings. Caixin interviewed some of the country’s top energy executives, from both state and private sectors, to talk about how energy companies can seize opportunities, balance energy supply and transformational development, and construct a clean, low-carbon and efficient energy system.
Brilliant newsletter - as usual