Breaking: Former Chinese Defense Ministers Li Shangfu and Wei Fenghe Expelled from Communist Party for Corruption and Misconduct
China's long-awaited third plenum set for July 15-18,;China advises ‘softer approach’ to law enforcement to ease jitters in private sector
Welcome to this issue of The China Brief. Today is June 27, 2024. Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.
Breaking: Former Chinese Defense Ministers Li Shangfu and Wei Fenghe Expelled from Communist Party for Corruption and Misconduct
On June 27, 2024, the Central Political Bureau of the Communist Party of China reviewed and approved a report by the Central Military Commission on the investigation and handling of Li Shangfu's case. Li Shangfu, former member of the Central Military Commission and former Minister of National Defense, was expelled from the Communist Party and stripped of his 20th National Congress delegate status.
The investigation, initiated on August 31, 2023, by the Central Military Commission's Discipline Inspection Commission, found that Li Shangfu committed serious violations of political discipline, including resisting organizational scrutiny and abusing his power for personal and others' gain. He was found guilty of bribery and other serious offenses that severely harmed the Party's work, national defense, and military integrity.
The decision to expel him from the Party and pursue legal action was confirmed in the Central Political Bureau meeting, with formal acknowledgment to be made at a future Central Committee plenary session. Additionally, Li Shangfu had already been expelled from the military and demoted from his rank of General.
On June 27, 2024, the Central Political Bureau of the Communist Party of China reviewed and approved a report by the Central Military Commission on the investigation and handling of Wei Fenghe's case. Wei Fenghe, former member of the Central Military Commission and former Minister of National Defense, was expelled from the Communist Party and stripped of his 20th National Congress delegate status.
The investigation, initiated on September 21, 2023, by the Central Military Commission's Discipline Inspection Commission, found that Wei Fenghe committed serious violations of political and organizational discipline, including resisting organizational scrutiny and using his position to benefit others improperly. He was also found guilty of bribery and receiving gifts in violation of regulations, severely damaging the Party's work, national defense, and military integrity.
The decision to expel him from the Party and pursue legal action was confirmed in the Central Political Bureau meeting. Wei Fenghe had already been expelled from the military and demoted from his rank of General in the Rocket Force.
China's long-awaited third plenum set for July 15-18, state media says
Nikkei Asia
China's Communist Party leaders will hold the third plenum, a key meeting to discuss economic policies, from July 15-18. The plenum will bring together about 200 members of the Communist Party Central Committee in Beijing, and is expected to focus on long-term economic policy. The meeting comes as China deals with a property crisis and trade tensions with the West, while President Xi Jinping aims to achieve technological self-sufficiency. The third plenum in 1978 introduced the "reform and opening up" policy that led to China's rapid economic growth.
https://asia.nikkei.com/Politics/China-s-long-awaited-third-plenum-set-for-July-15-18-state-media-says
China advises ‘softer approach’ to law enforcement to ease jitters in private sector
South China Morning Post
An editorial in China's Study Times has called for a "softer approach" to law enforcement, joining other government bodies in demanding a pullback from the heavy-handed treatment of some firms which has generated panic in the private sector. The editorial called for the creation of a "fair, just, stable and predictable" environment for law enforcement, and emphasised "agility" in terms of the capability of law enforcement. The State Taxation Administration has denied that it would launch a national investigation, however, several joint task forces between police and tax authorities have made businesses wary of what may come next.
https://www.scmp.com/economy/china-economy/article/3268257/china-advises-softer-approach-law-enforcement-ease-jitters-private-sector?utm_source=rss_feed
Prospect of low-priced Chinese EVs reaching US from Mexico poses threat to automakers
Associated Press
Chinese EVs could pose a potentially “extinction-level event’’ for the US auto industry, according to the Alliance for American Manufacturing. The fear is that China uses its trade deal with Mexico to export EVs at ultra-low prices to the US, which US-made EVs could struggle to compete against. In the past, China has dumped highly subsidised goods in markets to undermine domestic manufacturing, leading US Senator Sherrod Brown to call for a ban on Chinese EVs. The US has several potential options to prevent the import of Chinese EVs, including ruling that they don’t qualify for low-duty or duty-free benefits of being assembled in Mexico.
The US-Mexico-Canada Agreement (USMCA) potentially allows vehicles assembled in Mexico to enter the US with a much lower tariff or none at all. However, Chinese EV makers would have to demonstrate that assembling their EVs in Mexico involved a “substantial transformation’’ that essentially turned them from Chinese to Mexican cars. US Customs officials could reject this notion, but if the decision were challenged in the US Court of International Trade, the US could struggle to prevail. The “most effective and quickest’’ way to keep out Chinese EVs would be to block them on national security grounds, due to concerns that they could be remotely accessed or disabled.
https://apnews.com/article/china-vehicles-mexico-evs-automakers-tariffs-f526c5e52b95b624bb4b15d2038e289a
Microsoft maintains AI services in Hong Kong, as OpenAI curbs API access from China
South China Morning Post
Microsoft has confirmed that it will continue to allow customers in Hong Kong to use OpenAI's artificial intelligence (AI) models through its Azure cloud computing platform. This comes after OpenAI announced that it would be restricting access to its services from unsupported regions, including mainland China and Hong Kong. OpenAI's decision to block access from these regions is likely due to the US government's efforts to limit China's access to advanced AI technology. Industry insiders predict that this ban will push users towards domestic platforms in China. Other companies, including Alibaba and Baidu, are offering incentives to attract developers affected by OpenAI's new measures.
https://www.scmp.com/tech/big-tech/article/3268233/microsoft-maintains-ai-services-hong-kong-openai-curbs-api-access-china?utm_source=rss_feed
Taiwan warns against travel to China after execution threat
Japan Times
Taipei has raised its travel warning for China, advising Taiwanese citizens not to visit the country unless absolutely necessary. The decision comes after a threat from Beijing to execute those deemed 'diehard' supporters of Taiwanese independence. The raised travel warning also applies to the Chinese-run cities of Hong Kong and Macau. China views Taiwan as its own territory and has expressed its dislike of Taiwanese President Lai Ching-te, whom it sees as a 'separatist'.
https://www.japantimes.co.jp/news/2024/06/27/asia-pacific/politics/taiwan-china-travel-warning/
China says U.S. can’t stop it from taking ‘giant steps’ in space
Washington Post
China has become the first country to collect samples from the far side of the moon, a move that could have a significant impact on our understanding of the moon's origins. The Chang'e 6 lunar probe returned to Earth on Tuesday after a 53-day mission, bringing back rocks and other materials from the little-known lunar hemisphere. Chinese officials said the samples could tell a "completely different geological story" and would help boost the country's long-term space capabilities. China's recent space missions have raised concerns among US officials, who worry that the country's advances in space exploration could strengthen its military capabilities. However, despite China's success, the US remains on track to return astronauts to the moon ahead of its rival. Research collaboration between the two countries on space projects is rare due to a long-standing US law that prohibits direct space research cooperation with China. While US researchers could potentially gain access to the latest lunar samples, it would take years before they could study them.
https://www.washingtonpost.com/world/2024/06/27/china-far-side-moon-lunar-probe/
China’s sovereign bonds soar as shaky economic growth outlook dampens risk appetite
South China Morning Post
Chinese government bonds are experiencing a powerful rally, pushing yields to their lowest level in two decades. This is due to concerns about the economic outlook, weak domestic demand, a declining property market, and slowing wage growth. The yield on 10-year sovereign bonds fell to 2.21% on Thursday, its lowest level since 2002, and yields on 20-year and 30-year bonds are hovering around record lows. The poor performance of risk assets and worries about tariff risks from the US are further eroding investor confidence.
https://www.scmp.com/business/markets/article/3268285/chinas-sovereign-bonds-soar-shaky-economic-growth-outlook-dampens-risk-appetite?utm_source=rss_feed
China calls on scientists of all nations to study lunar samples, but notes obstacle with the US
Yahoo US
China has invited scientists around the world to apply to study lunar rock samples that its Chang'e 6 probe has brought back to Earth. However, cooperation with US scientists is contingent on the US removing a law that bans direct bilateral cooperation with NASA. The Wolf Amendment, enacted in 2011, prevents direct US-Chinese bilateral cooperation unless the FBI can certify that there is no national security risk to sharing information with China.
https://www.yahoo.com/news/china-calls-scientists-nations-study-090348077.html
Asia is going to need a lot more power to support spread of AI
Nikkei Asia
Data center companies in Asia are expected to invest over $100bn to expand their capacity in preparation for the wider adoption of artificial intelligence (AI). However, the power-intensive infrastructure required by these data centers will lead to a surge in electricity demand, with some countries seeing power consumption growth double. More investment will also be needed in power grids to support the growth of data centers and AI adoption. Southeast Asia is emerging as an attractive destination for data centers and AI infrastructure due to its affordable power and land, easy electricity grid connections, and planned power-sector investments.
https://asia.nikkei.com/Opinion/Asia-is-going-to-need-a-lot-more-power-to-support-spread-of-AI
China plucks suspected US Navy submarine detection probe from waters near South China Sea shoal
South China Morning Post
The Chinese coastguard has intercepted a device, dropped by a US military aircraft, that is believed to detect submarines in the South China Sea, according to a video posted on social media. The video, posted by Yuyuan Tantian, a social media channel affiliated with China Central Television, shows a US Navy plane releasing an object into the sea near the Second Thomas Shoal. The device, which has a battery specification label from British defence and security company, Ultra Electronics, could "detect" and "counter" Chinese submarine signals underwater. The video also claimed that the device could disturb marine life. China and the Philippines have competing sovereignty claims over the Second Thomas Shoal where both sides have clashed several times recently.
https://www.scmp.com/news/china/politics/article/3268263/south-china-sea-china-plucks-us-navy-probe-disputed-second-thomas-shoal-video?utm_source=rss_feed
What will it take for China to regain market confidence?
Japan Times
China's growth rate of 5.3% in the first quarter of this year surpassed expectations, but President Xi Jinping is still grappling with economic management challenges. The post-pandemic slowdown has raised doubts about China's ability to overtake the United States as the world's largest economy. The country is facing a prolonged real estate recession, hidden local debt issues, low business and household confidence, and concerns about deflation and overcapacity. While it would be unfair to solely blame the Xi administration for these problems, it inherited negative legacies from previous governments.
https://www.japantimes.co.jp/commentary/2024/06/27/china-xi-jinping-economy-issues/
Amazon to launch Temu-style bargain corner for Chinese sellers
Nikkei Asia
Amazon is reportedly launching a dedicated section on its primary website that will offer unbranded products priced below $20 and shipped directly from China, similar to Chinese cross-border bargain app Temu. Amazon's move is seen as an effort to attract Chinese vendors and compete with Chinese platforms such as Temu and Shein, which have gained a significant presence in the US by offering low-cost products. Unlike Temu, Amazon's new section will allow sellers to independently determine the pricing and category of their products.
https://asia.nikkei.com/Business/Technology/Amazon-to-launch-Temu-style-bargain-corner-for-Chinese-sellers
China’s Ding Xuexiang revealed as head of party science and technology body
South China Morning Post
Chinese Vice-Premier Ding Xuexiang has been revealed as head of the ruling Communist Party's Central Science and Technology Commission, a role he has held since March last year. Ding is also a member of the Politburo Standing Committee (PSC), and his appointment to the commission shows President Xi Jinping is delegating more power in his third term. Neil Thomas, a China politics fellow, said the appointment suggested that Xi is feeling more politically secure than in his first two terms.
https://www.scmp.com/news/china/politics/article/3268226/chinas-ding-xuexiang-revealed-head-party-science-and-technology-body?utm_source=rss_feed
New Tactic in China’s Information War: Harassing a Critic’s Child in the U.S.
NY Times
Deng Yuwen, a Chinese writer who has criticized China and its leader, Xi Jinping, has been targeted by a covert propaganda network linked to the country's security services. The network has bombarded both Deng and his teenage daughter with sexually suggestive and threatening posts on social media platforms. Users with fake identities have posted content in replies to Deng's posts on X, a social platform, as well as on community pages on Facebook, TripAdvisor, Patch, and Niche. The researchers have linked thousands of these posts to a network of social media accounts known as Spamouflage or Dragonbridge, which is part of China's propaganda apparatus. The campaign of online intimidation has raised concerns in Washington and other countries.
https://www.nytimes.com/2024/06/27/business/china-disinformation-critics-harassment.html
First panda pair to enter the United States in 21 years take off from China
CNN
China has sent two giant pandas, Yun Chuan and Xin Bao, to the San Diego Zoo in California, marking the first time in two decades that China has granted new panda loans to the US. The rare loan was finalised in February and is seen as a symbol of friendship between the Chinese and American peoples. The loan comes as US-China relations have worsened in recent years. The San Diego Zoo was the first US institution to carry out cooperative research on giant pandas with China and has been working with the Sichuan conservation centre since 1994.
https://edition.cnn.com/2024/06/26/world/china-pandas-san-diego-zoo-intl-hnk/index.html
Have China’s Wolf Warriors Gone Extinct?
Foreign Affairs
China's diplomatic approach has shifted from its aggressive "wolf warrior" diplomacy to a more traditional approach in recent years. The change is likely due to orders from President Xi Jinping, who has instructed diplomats to tone down their public statements and focus on improving relations with the US, western Europe, and the developing world. The rise of wolf warrior diplomacy was driven by a sharp increase in foreign criticism, particularly from the US, which China perceived as a threat to the rule of the Communist Party. As foreign criticism has softened, China's approach to diplomacy has also softened. However, the wolf warrior approach could return if China believes itself to be under siege once again, damaging the prospects of constructive dialogue between China and the US.
The term "wolf warrior" refers to a communicative style employed by Chinese diplomats that is acerbic, sarcastic, and negative. This style aims to disarm foreign critics through public confrontations and emotionally evocative language. Critics describe wolf warrior diplomacy as impolite and tactless, while Chinese diplomats see it as a defensive response to the hostility directed at China. The rise of wolf warrior diplomacy coincided with a period of increased foreign criticism of China, particularly in relation to issues such as the internment camps in Xinjiang and the crackdown on protests in Hong Kong. However, as foreign criticism has tempered, China's diplomats have shifted to a more subdued approach.
US policymakers must consider the effects of their public comments on China's diplomatic approach. If Beijing perceives criticism as a threat to its domestic legitimacy, it may respond with aggressive wolf warrior tactics. While it is important for the US to speak out against actions that contravene its values, policymakers should be mindful of the tradeoffs and consider whether the costs to diplomatic channels are worth it. The US should also be aware that China's diplomatic approach could shift again if it feels under siege.
https://www.foreignaffairs.com/china/have-chinas-wolf-warriors-gone-extinct
Cracks start to emerge in Philippines’ South China Sea stance
South China Morning Post
The Philippines may be changing its response to China's actions in the South China Sea after its latest clash with the country. Manila's Defence Secretary, Gilberto Teodoro, has adopted a more aggressive stance than that of President Ferdinand Marcos Jnr's administration. However, analysts argue that Manila needs to demonstrate unity between its defence and political leadership in order to effectively counter Beijing's assertiveness in the region.
https://www.scmp.com/week-asia/politics/article/3268159/cracks-start-emerge-philippines-south-china-sea-stance?utm_source=rss_feed
Hong Kong stocks slide as China industrial profit data rekindles recovery concerns
South China Morning Post
Hong Kong stocks fell on Thursday after data showed a slowdown in industrial profits for Chinese companies, adding to concerns about growth prospects. The Hang Seng Index fell 1.7%, the Hang Seng Tech Index dropped 1.8%, and the Shanghai Composite Index retreated 0.8%. Profit for Chinese industrial companies increased 0.7% from a year earlier in May, slowing from a 4% gain in the previous month. Analysts at Nomura said Beijing's measures to shore up the property market came slower than expected.
https://www.scmp.com/business/china-business/article/3268201/hong-kong-stocks-slide-china-industrial-profit-data-rekindles-recovery-concerns?utm_source=rss_feed
Stay informed about the latest news, analysis, and policy briefs from across the globe related to China with the China brief. Our team aggregates, synthesizes, and summarizes the most important information from various sources, including media outlets, think tanks, government agencies, and industry experts.
Our mission is to provide you with easily accessible and critically valuable information tailored to your specific field of interest. We understand the significance of staying up-to-date on developments related to China and aim to make this information comprehensible for our readers.
Join the conversation and stay informed about the latest news and developments related to China by visiting our website at www.6dobrief.com