Chinese stocks poised for ‘another leg up’ after ‘healthy correction’: Goldman Sachs;Four American college educators attacked in park in China
Welcome to this issue of The China Brief. Today is June 11, 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.
Chinese stocks poised for ‘another leg up’ after ‘healthy correction’: Goldman Sachs
South China Morning Post
Chinese stocks are expected to rally following a recent pullback, with a key meeting in Beijing next month set to introduce more supportive measures into the market. The recent consolidation is seen as a healthy correction, according to Goldman Sachs and Bank of America, as the stimulus-powered rally became overheated. Policymakers are expected to make further announcements on the property market at the third plenum in July.
https://www.scmp.com/business/markets/article/3266147/chinese-stocks-poised-another-leg-after-healthy-correction-goldman-sachs?utm_source=rss_feed
Four American college educators attacked in park in China
Washington Post
Four American instructors from Cornell College in Iowa were attacked while teaching in China, according to the Chinese Foreign Ministry. The lecturers, who were teaching at Beihua University in the city of Jilin, were attacked in a park, the ministry said. The US State Department said it was aware of reports of a stabbing and was monitoring the situation. China's foreign ministry said the incident was an isolated one and that the country was considered one of the safest in the world. Details of the instructors' identities and their injuries have not been released.
https://www.washingtonpost.com/world/2024/06/11/college-instructors-attack-china-cornell-iowa/
In Singapore’s brewing election battle, immigration anxiety takes centre stage
South China Morning Post
Singapore's opposition parties are expected to use the issue of foreign talent as political ammunition against the ruling People's Action Party (PAP) in the upcoming election. The Singapore Democratic Party has already launched its campaign centred around the issue of foreign workers, arguing that an increasing reliance on this workforce threatens national identity and worsens income inequality. The presence of foreign professionals has long been a hot-button political issue in Singapore, particularly during election season. The PAP lost a Group Representation Constituency for the first time in the 2011 general election, with political analysts citing the debate around foreign talent as a factor contributing to the victory of the opposition Workers' Party. A 2021 survey found that over 70% of Singaporeans believed the government should place strict limits on the number of foreign workers entering the country. Opposition parties will need to provide credible policy alternatives on the foreign talent issue to win over voters in the next election.
https://www.scmp.com/week-asia/politics/article/3266097/singapores-brewing-election-battle-immigration-anxiety-takes-centre-stage?utm_source=rss_feed
Brics countries can promote peace, stand against ‘new cold war’: China’s Wang Yi
South China Morning Post
The foreign ministers of the BRICS nations, along with representatives from Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates, have met in Russia to discuss world affairs. Chinese Foreign Minister Wang Yi called on the nations to promote peace and unity, and to take greater responsibility in global affairs. He also called for a ceasefire in Gaza and for support for Palestine's full membership at the United Nations.
https://www.scmp.com/news/china/diplomacy/article/3266144/brics-countries-can-promote-peace-stand-against-new-cold-war-chinas-wang-yi?utm_source=rss_feed
Thailand's rail network to link to Laos-China high-speed train
Nikkei Asia
Thailand is set to connect its national railway with the Laos-China rail network, aiming to boost trade among the three countries and establish Thailand as the region's logistics hub. The Thai-Lao rail network is scheduled to open in July and will connect Thailand and China by rail for the first time. The railway will facilitate the transport of goods, speed up customs procedures, and reduce delivery times to China. Thai exports that are likely to benefit from the rail connection include food, seasonal products, and perishable goods such as durian. The Kasikorn Research Center forecasts that Thai exports to China via the rail link will expand 17% this year.
https://asia.nikkei.com/Business/Transportation/Thailand-s-rail-network-to-link-to-Laos-China-high-speed-train
China risks falling behind in the AI race, but can a cutthroat price war balance the scales?
South China Morning Post
Chinese AI start-ups are battling each other in a price war, with prices for AI services dropping significantly. ByteDance, Alibaba, Baidu, Tencent, iFlytek, and SenseTime are all slashing prices for their AI models, in some cases by as much as 99.8%. The price war has been sparked by ByteDance's Doubao models, which are priced at 99.8% less than OpenAI's GPT-4 models. The Chinese tech firms are competing on price as they don't have access to the latest advanced semiconductors due to US sanctions. By offering cheaper services, the companies hope to attract more clients and build their brands.
https://www.scmp.com/economy/global-economy/article/3266096/china-risks-falling-behind-ai-race-can-cutthroat-price-war-balance-scales?utm_source=rss_feed
Mainland Chinese man claiming to be ex-navy captain breaches Taiwan defences in speedboat
South China Morning Post
A mainland Chinese man has been arrested by Taiwan's coastguard after he drove his speedboat directly to a ferry pier outside Taipei. The man, identified only as Ruan, claimed to be a former mainland Chinese navy captain and said that he had fled China due to persecution by mainland authorities. The incident has raised concerns about security and prompted New Taipei mayor Hou You-yi to call it a "serious security lapse." Ruan has been turned over to prosecutors for questioning and investigation.
https://www.scmp.com/news/china/politics/article/3266177/mainland-chinese-man-claiming-be-ex-navy-captain-breaches-taiwan-defences-speedboat?utm_source=rss_feed
The Taiwan question: 'Strategic ambiguity' and U.S. foreign policy
Japan Times
China appears to be taking a more aggressive stance towards Taiwan, as signaled by the removal of the word "peaceful" from its language regarding the island. Previously, China referred to "peaceful unification," meaning that Taiwan would willingly adopt the Chinese political system. However, it is unlikely that Taiwan, which currently enjoys a democratic system, would agree to this. The situation in Hong Kong, Xinjiang, and Tibet also makes the prospect of accepting Chinese rule unappealing. Therefore, China's idea of "unification" would likely involve the use of military force against Taiwan.
https://www.japantimes.co.jp/commentary/2024/06/11/world/china-national-peoples-congress/
Chinese Premier Li Qiang to visit Australia this week
Nikkei Asia
Chinese Premier Li Qiang is set to visit Australia, marking the first visit by a Chinese premier since 2017. The visit is seen as a sign of improving ties between the two countries. Li will visit Adelaide, Canberra, and Western Australia during his four-day trip. Both leaders will meet with Australian and Chinese business leaders at a roundtable in Western Australia. China is Australia's largest trading partner, with Australian resources and energy exports dominating trade flow. The visit comes after China imposed trade restrictions on Australian products during a diplomatic dispute in 2020, which have now largely eased. Australian Prime Minister Anthony Albanese plans to raise the case of Australian writer Yang Hengjun and an incident involving a Chinese military jet during his meeting with Li.
https://asia.nikkei.com/Politics/International-relations/Chinese-Premier-Li-Qiang-to-visit-Australia-this-week
China’s solar industry has entered ‘ice age’, needs state support: GCL founder
South China Morning Post
China's solar equipment industry, which holds 80% of the global manufacturing capacity, needs urgent intervention from the government to rescue it from its current downturn, according to Zhu Gongshan, founder and chairman of GCL Technology. The industry is experiencing an oversupply problem, driven by excess production capacity, leading to a decline in profit margins and the possibility of smaller manufacturers being forced out of the market. Trade barriers from Europe and the US have also exacerbated the issue.
https://www.scmp.com/business/article/3266159/chinas-solar-industry-has-entered-ice-age-needs-state-support-gcl-founder?utm_source=rss_feed
Can Apple Rescue the Vision Pro?
NY Times
Apple's Vision Pro headset, released earlier this year, has been deemed a flop by analysts. The $3,500 device has reportedly sold fewer units than expected, with many early adopters returning their headsets for refunds. The device is now selling for as little as $2,500 on resale websites. Despite this, Apple announced new features for the Vision Pro at its annual developer conference, including a new operating system and gesture controls. The company also revealed plans to sell the device in China, Japan, and Britain.
https://www.nytimes.com/2024/06/11/technology/apple-vision-pro-needs.html
Did Philippine police find China’s PLA uniforms in Pogo raid?
South China Morning Post
The Philippine military has dismissed concerns over national security after Chinese army uniforms were discovered at a Philippine Offshore Gaming Operator (Pogo) compound. Police raided the compound last week and rescued over 150 foreigners, mostly Chinese, while seizing equipment used for scamming activities and camouflage outfits with the initials "PLA" that officials suspected belonged to the Chinese military. However, a Philippine military colonel claimed that the uniforms were likely used as props for illicit activities rather than for any invasion preparations. Senators have demanded the closure of the Pogo sector due to concerns over national security and the industry's association with crime.
https://www.scmp.com/week-asia/politics/article/3266149/philippine-police-find-alleged-chinese-army-uniforms-pogo-raid-are-they-props?utm_source=rss_feed
China's defense ministry says Dutch ship incident 'heinous'
Japan Times
China's defense ministry has warned the Netherlands to restrain its naval and air forces after Chinese fighter jets approached a Dutch ship unsafely in the East China Sea. The Netherlands' defense ministry had previously stated that Chinese air force jets had circled a Dutch frigate and approached a Dutch helicopter in a way that "caused a potentially unsafe situation". The Chinese defense ministry has strongly deplored the Dutch side's actions and has lodged formal complaints with them.
https://www.japantimes.co.jp/news/2024/06/11/asia-pacific/politics/china-defense-ministry-dutch-ship/
Apple’s Vision Pro headset sets launch in China, where it faces ByteDance, Huawei
South China Morning Post
Apple's Vision Pro mixed-reality headset will be available for pre-order in China from Friday, four months after its US launch. The headset, which can be pre-ordered in Hong Kong as well, will start shipping on 28 June. The device is priced at CNY29,999 ($4,138), over $600 more expensive than the US price of $3,499 for the 256GB model. To prepare for the China launch, Apple has partnered with Chinese entertainment firms and said Tencent Video, the Chinese equivalent of Netflix, will be available on the headset. The device will face competition from low-cost headsets already available in the price-sensitive market.
https://www.scmp.com/tech/big-tech/article/3266128/apples-vision-pro-headset-sets-launch-china-where-it-faces-bytedance-huawei?utm_source=rss_feed
Japan, U.S. form working group for joint missile production
Nikkei Asia
Japan and the US have agreed to set up working groups on joint missile production, ship and aircraft repair, and supply chain resiliency as part of efforts to promote defense industry cooperation. The talks, known as the Defense Industrial Cooperation, Acquisition, and Sustainment Forum (DICAS), are aimed at addressing the shortage of ammunition in the US and expanding its Patriot missile production capacity. The US is also seeking to leverage Japan's engineering, industrial, and manufacturing capacity to enhance its defense industry. The goal is to achieve concrete outcomes in defense industry cooperation by the time of the next Japan-US Security Consultative Committee meeting in July.
https://asia.nikkei.com/Politics/Defense/Japan-U.S.-form-working-group-for-joint-missile-production
HSBC adds over 300 to China headcount with Citi wealth acquisition
Nikkei Asia
HSBC has increased its workforce in China by over 300 employees as it completes the acquisition of Citigroup's consumer wealth portfolio in the country. The acquisition adds to other recent moves by the bank to expand in China, one of its key markets. HSBC has been focusing on its key revenue generator in Asia and exiting less profitable geographies. The acquisition of Citigroup's portfolio demonstrates HSBC's commitment to the Chinese market and helping clients diversify their assets and enhance long-term returns.
https://asia.nikkei.com/Business/Business-deals/HSBC-adds-over-300-to-China-headcount-with-Citi-wealth-acquisition
Land, sea and air: 5 visa-free ways to travel to mainland China from 72 hours up to 30 days
South China Morning Post
China has introduced several visa-free travel schemes in an effort to boost inbound tourism. These schemes include transit through 23 Chinese cities for 72 to 144 hours for passport holders from 54 nations, visa-free travel to Hainan province for 30 days for nationals from 59 countries, tour groups from Hong Kong or Macau to Guangdong province for 6 days for citizens of any country with diplomatic ties with China, visa-free travel to Guilin for citizens of the 10 Association of Southeast Asian Nations countries, and visa-free entry for 15 days for passport holders from 12 countries in western Europe. These schemes aim to make it easier for foreigners to visit China, as the visa application process can be time-consuming and expensive. The government hopes that by allowing visa-free travel, it can attract more tourists and boost the economy. However, it is important for travelers to follow the specific rules and regulations of each scheme in order to qualify for visa-free entry.
https://www.scmp.com/economy/china-economy/article/3266106/land-sea-and-air-5-visa-free-ways-travel-mainland-china-72-hours-30-days?utm_source=rss_feed
Joe Biden’s agonizing wait as a jury deliberates his son’s fate
CNN
For the first time in history, two former presidential families are both facing legal issues at the same time. In the case of Donald Trump and his family, the former president is facing criminal charges, including falsifying financial records and obstructing justice. Meanwhile, Joe Biden's son, Hunter, is on trial for gun charges, which includes allegations of buying a firearm while addicted to crack cocaine. While both cases have received significant media attention, there are notable differences in how the two families have responded. Trump has been vocal about his belief that his trial is politically motivated and has publicly criticized the judge overseeing his case. In contrast, Biden has pledged not to interfere in his son's trial and has been more measured in his public statements. The trials have also had an impact on the families involved. The Trump family has attended court proceedings and has been active on social media, while the Biden family has kept a lower profile. The trials are taking place against the backdrop of a deeply divided political climate, with Republicans accusing Democrats of politicizing the legal system and Democrats arguing that Trump and his family have not been held accountable for their actions. The outcome of both trials could have significant implications for the future of both families and the wider political landscape.
https://edition.cnn.com/2024/06/11/politics/joe-biden-son-trial-analysis/index.html
French Polynesia has a culinary secret. It’s home to mouth-watering Chinese fusion food
CNN
Chinese food has become one of French Polynesia's favorite cuisines due to the country's large Chinese population. The first group of Chinese immigrants arrived in French Polynesia in 1865, and many stayed to forge new lives after the plantation they were working on went bankrupt. Chinese immigrants had to adapt their cooking to the local ingredients available, such as fresh seafood, coconut, and taro. They also had to make do with limited ingredients, which led to the creation of Chinese-Tahitian fusion dishes like Ma’a Tinito, which is considered one of the region’s earliest Chinese culinary creations.
Today, Chinese-Tahitian cuisine is a unique fusion of Chinese and Tahitian flavors and ingredients. Chinese cooks in French Polynesia have embraced local ingredients and tastes to create innovative and delicious dishes. Chinese-Tahitian fusion dishes often have a sweet twist, as French Polynesians have a collective sweet tooth and prefer slightly sweeter dishes. Chinese-Tahitian fusion dishes can be found in restaurants throughout French Polynesia, and tourists can also explore the flavors by visiting the Papeete Sunday Market, which offers an incredible array of Chinese dim sum.
Overall, Chinese food has become popular in French Polynesia due to the country's large Chinese population and the fusion of Chinese and Tahitian flavors and ingredients. Chinese-Tahitian cuisine offers a unique and innovative culinary experience for locals and tourists alike.
https://edition.cnn.com/travel/chinese-food-evolution-french-polynesia/index.html
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