China’s new home prices in May saw sharpest fall in nearly 10 years despite rescue package; China’s anti-corruption watchdog investigates former Tibet party boss Wu Yingjie
Chinese officials’ attempt to ‘block’ formerly detained journalist mars Australia goodwill tour; China opens tit-for-tat anti-dumping probe into European pork
Welcome to this issue of The China Brief. Today is June 17, 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.
China’s new home prices in May saw sharpest fall in nearly 10 years despite rescue package
South China Morning Post
New home prices in China fell 0.7% in May, the most in nearly 10 years, as government efforts to rescue the sector failed to make a significant impact. On a year-on-year basis, prices fell 4.3%. The disappointing data followed ambitious plans announced by Beijing to rescue the sector, including a $41.3bn relending facility to help local governments buy unsold homes from distressed developers.
https://www.scmp.com/business/china-business/article/3266873/chinas-new-home-prices-may-saw-sharpest-fall-nearly-10-years-despite-rescue-package?utm_source=rss_feed
China keeps lending rate unchanged as data show housing market is still struggling
Associated Press
The People's Bank of China (PBOC) has kept its key lending rate unchanged at 2.5% in an effort to focus on high-tech industries, despite signs of weakness in the Chinese manufacturing and real estate sectors. Factory output fell 5.6% in May, compared to 6.7% in April, and property investments declined 10% YoY. The slump in the property industry follows a crackdown on excessive borrowing by property developers, which led to many defaulting on their debts and struggling to deliver apartments.
https://apnews.com/article/china-economy-property-rates-81aa6fd5e86fd180f65319a31ba97707
China opens tit-for-tat anti-dumping probe into European pork
Nikkei Asia
China has opened an anti-dumping investigation into imported pork and its by-products from the European Union (EU), particularly targeting Spain, the Netherlands, France, and Denmark. The move is seen as retaliation for the EU's decision to impose anti-subsidy duties on Chinese cars. The investigation will focus on pork intended for human consumption and will begin on 17 June. China imported $6bn worth of pork in 2019, with the EU accounting for over half of that figure.
https://asia.nikkei.com/Economy/Trade/China-opens-tit-for-tat-anti-dumping-probe-into-European-pork
As Shein heads towards IPO, its Chinese billionaire founder stays under cloak of secrecy
South China Morning Post
The CEO of Chinese fast-fashion app Shein, Xu Yangtian, has deliberately avoided the public eye, due to fears over attracting attention as the company seeks to raise £50bn ($64bn) from an IPO in London. Xu has never had photos of him released or made any public speeches throughout his career. The company has also not released any IPO prospectus or details about its business operations. Xu is said to be humble and prefers to focus on getting things done rather than feeding his ego.
https://www.scmp.com/tech/big-tech/article/3266882/shein-heads-towards-ipo-its-chinese-billionaire-founder-stays-under-cloak-secrecy?utm_source=rss_feed
Chinese officials’ attempt to ‘block’ formerly detained journalist mars Australia goodwill tour
CNN
Chinese officials have been accused of trying to block a Sky News Australia reporter from the cameras during an event attended by Chinese Premier Li Qiang and Australian Prime Minister Anthony Albanese. Cheng Lei, a TV anchor at the network who was detained in China for more than three years before her release last year, said the officials went to “great lengths” to prevent her from participating in the press conference. Li’s visit to Australia was meant to be focused on improving strained relations between the two countries.
https://edition.cnn.com/2024/06/17/australia/australia-china-cheng-lei-blocked-intl-hnk/index.html
China’s anti-corruption watchdog investigates former Tibet party boss Wu Yingjie
South China Morning Post
Wu Yingjie, a former Communist Party chief of China's Tibet autonomous region, is under investigation as part of the country's anti-corruption campaign. Wu, who spent 47 years in Tibet and served as the top official for five years, is facing scrutiny from the Central Commission for Discipline Inspection (CCDI) and the National Supervisory Commission. Details of his alleged crimes were not released, but "serious violations of discipline and laws" is often used as a euphemism for corruption or political misdeeds. Wu is the eighth ministerial-level official to be investigated by the CCDI since October 2022.
https://www.scmp.com/news/china/politics/article/3266891/chinas-anti-corruption-watchdog-investigates-former-tibet-party-boss-wu-yingjie?utm_source=rss_feed
China preps plane research refuel after C919’s first year in the air
South China Morning Post
China has established a research fund to support the development of new widebody planes and expand the domestic production of essential parts. The fund, established by China’s Ministry of Industry and Information Technology and the National Natural Science Foundation, aims to reduce China's reliance on foreign sourcing for advanced components, such as engines and avionics. The size of the fund has not been disclosed, but industry insiders have estimated it to be in the billions of yuan. The fund will focus on basic research to help China close the gap with the West in making bigger jets.
https://www.scmp.com/economy/china-economy/article/3266945/china-preps-plane-research-refuel-after-c919s-first-year-air?utm_source=rss_feed
Philippines’ Chinese visa clampdown: a response to South China Sea tensions?
South China Morning Post
The Philippines has added an additional requirement for Chinese tourists applying for visas, amid Beijing’s implementation of a controversial anti-trespassing regulation in the South China Sea. Some observers believe that the new visa restrictions are a response to Beijing’s threat to detain foreign nationals in the disputed waters, while others suggest that it is a security measure aimed at quelling concerns about illegal activities of Chinese nationals in the Philippines. Tourism industry representatives are concerned that the new requirements will have a negative impact on the economy as Chinese tourists are “a major source of income” for the country.
https://www.scmp.com/week-asia/politics/article/3266902/philippines-chinese-visa-clampdown-response-south-china-sea-tensions?utm_source=rss_feed
Beijing offers visa-free entry to Australians with defence talks flagged to avoid military clashes
Australian Broadcasting Corporation
China has offered visa-free entry to Australians for visits of up to 15 days, as Prime Minister Anthony Albanese declared relations between the two nations had been "renewed and revitalised". The announcement came after a formal meeting with Premier Li Qiang in Canberra, during which both leaders discussed improving military relations to avoid incidents such as last year's sonar attack on HMAS Toowoomba. The move is seen as a positive step in improving diplomatic relations between Australia and China, which soured during the COVID-19 pandemic.
https://www.abc.net.au/news/2024-06-17/beijing-offers-visa-free-entry-and-military-talks-flagged/103988394
China new home prices fall at fastest rate in nearly 10 years
Guardian
New home prices in China fell at the fastest pace in almost 10 years in May, despite efforts by Beijing to prop up the property sector. In annual terms, new home prices were down 3.9% from a year earlier, worse than the 3.1% slide in April. During May alone, prices dipped by 0.7%. Prices fell in 68 out of the 70 cities surveyed by the government. Policymakers have been trying to rein in the oversupply of housing and support debt-laden developers since the market went into freefall in 2020. However, a glut of unoccupied property continues to weigh on the market.
https://www.theguardian.com/business/live/2024/jun/17/china-new-home-prices-fall-french-political-uncertainty-markets-business-live
As China’s pressure on Taiwan rises, departing U.S. envoy urges steady hand
Japan Times
Sandra Oudkirk, the United States' chief representative in Taiwan, has advised against panicking over China's combative language and moves but urges caution over the risks. Oudkirk has been Washington's de facto ambassador to Taiwan during a period of heightened tensions between the US and China. China claims Taiwan as its territory and has threatened to use force to achieve unification. Oudkirk's advice comes as debate among politicians, officials and experts in both Taiwan and the US continues over the best tactics to reduce the risk of war.
https://www.japantimes.co.jp/news/2024/06/17/asia-pacific/politics/china-pressure-taiwan-us-envoy/
US falling far behind China in nuclear power, report says
Al Jazeera
China is 10 to 15 years ahead of the US in developing next-generation nuclear reactors, according to a report by the Information Technology and Innovation Foundation. The think tank found that China has 27 reactors under development, with each reactor taking an average of seven years to come online. The report also revealed that between 2008 and 2023 China's share of nuclear patents increased from 1.3% to 13.4%, with the country now leading the world in the number of nuclear fusion patent applications. The US has built only two new reactors in the past decade.
https://www.aljazeera.com/economy/2024/6/17/us-falling-far-behind-china-in-nuclear-power-report-says
As China’s Pressure on Taiwan Rises, Departing U.S. Envoy Urges Steady Hand
NY Times
As she nears the end of her three-year tenure as the US representative in Taiwan, Sandra Oudkirk has given some advice on how to handle China. Oudkirk said that it is important not to panic about China’s aggressive language and actions, but also not to become complacent about the risks that it poses. She also said that it was important to listen to what China is saying, as when a government tells you what they are thinking and planning, it is important to listen. Oudkirk added that Taiwan must find a steady path that avoids both hysteria and complacency.
https://www.nytimes.com/2024/06/17/world/asia/taiwan-china-diplomacy.html
China’s tax man hands out decades-old bills to companies, hinting at funding shortage
South China Morning Post
Local governments in China are requesting companies to pay tax bills dating back to the 1990s, in an effort to increase revenue due to the slowing economic growth and struggling real estate market. Listed firms have warned investors that these demands could impact their earnings. The contracting real estate market has caused income from land sales to plummet and local governments are unable to leverage up further due to their existing high debt levels. As a result, the central government is having to borrow more and provide funds to local governments.
https://www.scmp.com/business/china-business/article/3266878/chinas-tax-man-hand-out-decades-old-bills-companies-hinting-funding-shortage?utm_source=rss_feed
China’s market watchdog calms investors as it dismisses sudden surge in short-selling
South China Morning Post
China's securities regulator, the China Securities Regulatory Commission (CSRC), has said that the spike in shorted stocks last week was mainly due to the semi-annual rebalancing of key stock indices. The CSRC moved to calm investors after a social media post hyped up the increase in short bets. The regulator stated that it will evaluate and fine-tune the rules on short selling, as well as strengthen counter-cycle adjustments. The move highlights the CSRC's determination to put a floor under China's stock market, which has shown signs of faltering after rebounding from a February low. The outstanding value of shorted stocks on China's exchanges totalled CNY33.6bn ($4.69bn) on Friday, the lowest in four years, according to Bloomberg data.
https://www.scmp.com/business/china-business/article/3266859/chinas-market-watchdog-calms-investors-it-dismisses-sudden-surge-short-selling?utm_source=rss_feed
Hong Kong's AI bet through Temasek-style fund signals strategic shift
Nikkei Asia
The Hong Kong government is investing in artificial intelligence (AI) company SmartMore as part of its strategy to transform the city into a tech hub amid challenges to its finance and property sectors. The government-owned Hong Kong Investment Corp. (HKIC) made its first public investment in SmartMore, which applies AI to production lines and has clients including Tesla, Huawei and Airbus. The amount invested was not disclosed, but SmartMore is valued at $1.28bn. The HKIC investment is significantly larger than previous investments made by the government through the Hong Kong Science and Technology Park and Cyberport. HKIC currently manages around $8bn. The move comes as Hong Kong's status as a global financial hub is under threat due to political instability and concerns over the erosion of impartiality within its legal system. The government aims to attract high-tech companies and foster growth as part of its efforts to establish Hong Kong as an international hub for innovation and technology.
https://asia.nikkei.com/Business/Technology/Hong-Kong-s-AI-bet-through-Temasek-style-fund-signals-strategic-shift
‘They’re treating us like we’re spies’: Florida property ban has Chinese citizens fuming
CNN
Chinese citizens without US green cards have been barred from purchasing property in Florida, leading some residents to consider leaving the state. Florida Senate Bill 264, which took effect on 1 July 2023, imposes a felony charge and possible prison time on Chinese citizens without green cards who purchase property in the state. The law also makes sellers and real estate agents liable. The American Civil Liberties Union has partnered with attorney Clay Zhu to challenge the law in court. Zhu has argued that it is discriminatory and likens it to the Chinese Exclusion Act. The law states that “any person who is domiciled in the People’s Republic of China and who is not a citizen or lawful permanent resident of the United States” is banned from purchasing property. The law does not define “domiciled”. The law is part of a broader climate of suspicion surrounding Chinese government activities in the US. The Chinese government has been accused of spying in the US, with fears of Chinese-owned apps such as TikTok being used for spying leading to calls for restrictions on Chinese purchases of US agricultural land.
https://edition.cnn.com/2024/06/17/homes/florida-law-bans-chinese-citizens-buying-homes/index.html
China says a Chinese vessel and Philippine supply ship collided in the disputed South China Sea
Associated Press
A Chinese vessel and a Philippine supply ship have collided near the disputed Spratly Islands in the South China Sea, according to China’s coast guard. The Chinese coast guard claims that the Philippine ship “ignored China’s repeated solemn warnings…and dangerously approached a Chinese vessel in normal navigation in an unprofessional manner, resulting in a collision”. However, the Philippines says the shoal on which the collision occurred falls within its internationally recognised exclusive economic zone. The Spratly Islands are also claimed by Malaysia, Vietnam, Taiwan and Brunei.
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