China’s spate of violence prompts outburst of economic anxiety; New U.S. Okinawa unit to counter 'China aggression': Marine chief
German automakers pressure EU leaders to drop China EV tariffs
Welcome to this issue of The China Brief. Today is June 22, 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.
Blind Spots of People Like Ma Ying-jeou
Wen Ruolin
Recently, I stumbled upon a podcast featuring Gita Wirjawan and TSMC’s VP of R&D, Philip Wong. A particularly amusing snippet emerged when Wong recalled a late '90s proposal to IBM about integrating camera chips into mobile phones, only to be met with, “Who wants a camera on a cellphone?”
This echoes an incident from two months ago, during Ma Ying-jeou’s delegation tour to mainland China in April 2024. While visiting BYD, the guide introduced the new Denza M9 model, boasting its in-car video conferencing capabilities via a retractable rear camera and integrated screen. Ma, with a dismissive chuckle, quipped, “Is that necessary?” His entourage, evidently in agreement, shared a laugh.
Ironically, just two weeks prior, I found myself in a WeChat video call with a Denza M9 owner in China. Not by design, but due to time zones and preset schedules, the owner was on the highway, and the rear-seat occupants needed to join the call. The car’s camera and screen setup smoothly facilitated this video conference. This experience underscored how Ma Ying-jeou and his cohort, products of an environment lacking in industrial prowess and fierce business acumen, are lagging in judgment.
Certainly, not every flashy feature in cars today is essential, but over time, competition and user experience will distill the truly needed functionalities. Like mobile phones that once boasted numerous now-obsolete features, only the truly vital ones persist. In today's intensely competitive Chinese business landscape, coupled with China's dominance in manufacturing across key industrial sectors, only Chinese-made end products dare to boldly incorporate innovative features to win consumer favor. This trend is redefining product categories globally.
Meanwhile, in Taiwan, despite leading the world in cutting-edge semiconductor manufacturing, this advantage has not translated into competitive end products. Beyond Taiwan's shores, Taiwanese brands lose their competitive edge, whether in smartphones, computers, tablets, or digital gadgets. Even in the realm of electric scooters—a category Taiwan should theoretically dominate—the industry's slow response is puzzling. Holding the world’s leading chips yet unable to produce competitive Taiwanese goods using them is a profound embarrassment. Ma Ying-jeou’s dismissive laughter reflects a broader inability among Taiwan’s elites to grasp the intensity of global business competition, casting serious doubts on the future of Taiwan’s industries.
Recalling Ma’s first visit to mainland China in March 2023, the Taiwanese delegation later expressed surprise at a tea session with local media over the sophistication and expertise of senior officials from the Yangtze River Delta cities during informal meals, despite their rigid, rote speeches in official settings. Both my peers and I were astonished—not at the officials' level, which had been the standard in mainland metropolises for over two decades, but at the staggering disconnect of Taiwan’s elites regarding the mainland.
China’s spate of violence prompts outburst of economic anxiety
Japan Times
Chinese social media users have expressed their discontent about the country's economic downturn following a spate of recent violent attacks. The attacks have exposed widespread dissatisfaction as economic pressures mount. The most recent attack, a stabbing at a metro station in Shanghai, became a top trending item on social media platform Weibo. Users speculated on the attacker's motive, with some suggesting that the culprit was a stocks investor who had been affected by the country's market meltdown earlier this year.
https://www.japantimes.co.jp/news/2024/06/22/asia-pacific/crime-legal/china-crime-economic-anxiety-outburst/
New U.S. Okinawa unit to counter 'China aggression': Marine chief
Nikkei Asia
The US Marine Corps has created a new unit called the Marine Littoral Regiment (MLR) on the Japanese island of Okinawa in order to counter Chinese aggression in the region. The MLR is designed to provide long-range sensing and fire capabilities, using mobile missile batteries to strike adversary ships in strategic sea lines of communication. The unit's purpose is to protect Japan, the Philippines, and South Korea. The MLR has around 2,000 troops and would be deployed to surrounding islands in the event of an emergency to attack Chinese naval vessels and disrupt military activities. The US Marine Corps also plans to establish an MLR unit on the Pacific island of Guam in the future.
https://asia.nikkei.com/Politics/Defense/New-U.S.-Okinawa-unit-to-counter-China-aggression-Marine-chief
German automakers pressure EU leaders to drop China EV tariffs
Nikkei Asia
German automakers and industry associations have called on the European Commission (EC) to abandon a proposal to apply punitive import tariffs on Chinese electric vehicles (EVs), citing damage to local industries and business opportunities in China. The Commission had backed France in unveiling import tariffs of up to 48% on Chinese EVs, having found the country’s manufacturers were unfairly benefitting from state subsidies. German automakers argue they will be more affected than French and Italian competitors, as the German and Chinese car markets are closely linked. Around 14% of the 111,000 EVs registered in Germany in Q1 2019 were made in China, and 10% of the 337,000 EVs produced by German firms in China in 2018 were exported to the EU.
https://asia.nikkei.com/Business/Automobiles/German-automakers-pressure-EU-leaders-to-drop-China-EV-tariffs
China-France satellite launched to monitor most powerful explosions in space
South China Morning Post
China and France have successfully launched a joint space mission to study gamma-ray bursts, the universe's most powerful explosions. The Space-based multi-band astronomical Variable Objects Monitor (SVOM) was launched into a low-Earth orbit on a Long March 2C rocket from China's Xichang Satellite Launch Centre. The probe, developed over two decades by hundreds of scientists and engineers, will accurately measure the location and energy of gamma-ray bursts, which are produced during energetic events in the distant universe. SVOM is equipped with four instruments, two built in France and two in China, to observe the explosions in different wavelengths.
https://www.scmp.com/news/china/science/article/3267503/china-france-satellite-launched-monitor-most-powerful-explosions-space?utm_source=rss_feed
Weapons of choice in China’s territorial disputes? Axes, knives, ‘jostling.’
Washington Post
Videos shared by the Philippine military have shown Chinese Coast Guard personnel using pickaxes and knives to violently intercept Philippine naval ships in the South China Sea. Experts believe that the use of simple weapons is a tactical choice by China to avoid sparking escalation or drawing international attention. The tactic has been observed before, notably on China’s border with India, where Chinese and Indian forces reportedly engaged in hand-to-hand combat using stones and makeshift clubs. The use of such nonconventional weaponry may be a risky move by China, as it could blur the line between tools and weapons and potentially evoke a stronger response from the US. This week’s incident in the South China Sea saw the Chinese Coast Guard board Philippine navy vessels to damage and confiscate equipment, according to Philippine officials. China’s Embassy in Washington, however, claims that the Philippines illegally intruded into Chinese waters and violated international law.
https://www.washingtonpost.com/world/2024/06/22/china-weapons-territorial-disputes/
Putin Came to Asia to Disrupt, and He Succeeded
NY Times
During a recent trip to Asia, Russian President Vladimir Putin has managed to anger Washington, undermine Beijing, and unsettle a number of Indo-Pacific nations. Putin's visit to North Korea and Vietnam has left a redrawn map of risk in Asia, with North Korea empowered by Russian promises of military aid and a mutual defense pact. In Vietnam, Putin signed multiple deals and stated that "reliable security architecture" cannot be built with "closed military-political blocs". The trip has shown that the power struggle between the US and China is more complex than it appears, leaving many countries in the region feeling uneasy.
https://www.nytimes.com/2024/06/22/world/asia/putin-korea-china-disruption.html
Li Qiang’s visit spotlights Malaysia’s China-US diplomatic dance
South China Morning Post
Malaysia faces a challenge in balancing its economic interests with China and its defence and geopolitical interests supported by Western partners, experts have warned. Chinese Premier Li Qiang's visit to Malaysia was intended to celebrate 50 years of diplomatic ties, boosting trade in fresh durian, increasing tourism and green tech cooperation, and fighting transborder crime. China has been Malaysia's top trade partner for 15 years, however, the US remains its largest investment partner. Malaysia's semiconductor industry, which serves 13% of global demand in the packaging and testing sector, could be put at risk if it is seen to be too aligned with China, analysts warn. The US and its Western allies have warned Malaysia against partnering with Chinese telecommunications infrastructure giant Huawei, citing national security risks. The US and European Union have also cautioned Malaysia against aligning too closely with China, and the US has imposed sanctions restricting Chinese access to advanced chips.
https://www.scmp.com/week-asia/politics/article/3267592/li-qiangs-visit-spotlights-malaysias-china-us-diplomatic-dance?utm_source=rss_feed
EU tariffs on China not a 'punishment', says German economy minister
Yahoo US
Germany's Economy Minister, Robert Habeck, has told Chinese officials in Beijing that proposed European Union (EU) tariffs on Chinese goods are not a "punishment", but are intended to level the playing field with China. Habeck is on the first visit to China by a senior European official since the EU's proposed duties on imports of Chinese-made electric vehicles (EVs), which China has warned could trigger a trade war.
https://finance.yahoo.com/news/eu-tariffs-china-not-punishment-031619479.html
Beijing scraps reservation system for most tourist sites in time for summer travel season
South China Morning Post
Beijing has scrapped reservations for most of the city's major tourist attractions in an attempt to revive an industry hit hard by the pandemic. The decision aims to "improve the basic services of the city's tourism areas" and follows similar moves across the country to make it easier for both domestic and international tourists to plan holidays. Prior to the pandemic, reservations were required for many sites to control congestion and pressure on facilities. However, the reservation systems have been a source of frustration for tourists, and the barriers to entry have hindered China's soft power and tourism industry.
https://www.scmp.com/news/china/politics/article/3267653/beijing-scraps-reservation-system-most-tourist-sites-time-summer-travel-season?utm_source=rss_feed
Rescuers find family of 6 dead in landslide in eastern China, as severe weather warning extended
Associated Press
A family of six in China's Fujian province has been found dead after heavy rains caused landslides in the area. The family had sought shelter in a temple, which was later toppled by a landslide, killing them. The extreme weather has caused fatalities in other provinces, with authorities estimating billions of dollars in damage. The National Meteorological Center has issued a warning for more extreme weather across several provinces.
https://apnews.com/article/china-flooding-deaths-fujian-38e991e0a3633ce1819c5e018fe652f3
German vice chancellor warns China of consequences of Russia stance
Yahoo US
German Vice Chancellor Robert Habeck has warned the Chinese government of the potential economic consequences of its support for Russia in the war against Ukraine. Habeck, who is also Germany's economy minister, stated that German and European security interests are directly affected by Russia's war against Ukraine. He warned that Germany's relationship with China had already been negatively affected by the war. Habeck also called on the Chinese side to take the European Commission's findings on unfair subsidies seriously in a trade dispute over tariffs on cheap Chinese electric cars.
https://www.yahoo.com/news/german-vice-chancellor-warns-china-071651847.html
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