From Zhu Rongji to Wang Qishan, reins pass at a back channel of Chinese diplomacy
Huawei founder Ren Zhengfei: US tech is great, but we have to build our own；A new intellectual hub for Chinese émigrés in Washington
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From Zhu Rongji to Wang Qishan, reins pass at a back channel of Chinese diplomacy
South China Morning Post
Wang Qishan has succeeded Zhu Rongji as honorary chairman of Tsinghua University's advisory board, a key platform for "track 1.5" diplomacy. The board, founded by Zhu in 2000, facilitates dialogue among global business leaders, academics, and Chinese officials. At the recent annual meeting, Apple CEO Tim Cook and other prominent figures discussed economic opportunities in China. Ding Xuexiang, China's vice-premier, assured support for global economic integration. Wang, a significant political figure and former vice-president, hosted a dinner for board members, while Zhu, now 96, has been absent from public events due to health issues.
https://www.scmp.com/news/china/politics/article/3284682/chinas-key-track-15-diplomacy-channel-sees-reins-pass-zhu-rongji-wang-qishan?utm_source=rss_feed
Huawei founder Ren Zhengfei: US tech is great, but we have to build our own
South China Morning Post
Huawei Technologies founder and CEO Ren Zhengfei expressed admiration for the openness of the US tech community while explaining that the company had to develop its own tools due to US sanctions. Despite Huawei's recent advancements in self-sufficiency, including AI chips and a mobile operating system called HarmonyOS, Ren acknowledged that the company is still struggling and lacks access to superior American technologies and chips. He emphasized the importance of open innovation and learning from the US to advance in science and technology. Ren has consistently praised the US tech industry and called himself an "Apple fan," highlighting the need for a receptive culture to foster technological progress.
https://www.scmp.com/tech/tech-war/article/3284684/huawei-founder-ren-zhengfei-us-tech-great-we-have-build-our-own?utm_source=rss_feed
A new intellectual hub for Chinese émigrés in Washington
Economist
Jifeng Books, a bookstore located in the metro station beneath Shanghai’s city library, was founded in 1997 by Yan Bofei and was known for its focus on humanities and social sciences, as well as hosting lectures on democracy and labor rights. After being purchased by Yu Miao in 2012, the store aimed to continue as a liberal forum. However, in 2018, the Chinese government declined to renew its lease, indicating dissatisfaction with the ideas promoted by Jifeng Books, highlighting the increasing suppression of liberal thought in Xi Jinping's China.
https://www.economist.com/china/2024/10/31/a-new-intellectual-hub-for-chinese-emigres-in-washington
China is tightening its grip on the world’s minerals
Economist
To achieve decarbonization and support the growth of data centres for advanced AI models, a significant demand for minerals is anticipated globally. China is positioning itself to take advantage of this demand, having invested approximately $16 billion in overseas mining ventures last year, excluding minority stakes.
https://www.economist.com/business/2024/10/31/china-is-tightening-its-grip-on-the-worlds-minerals
North Korea’s aid to Russia raises difficult questions in China
Economist
Chinese officials have refrained from openly commenting on North Korea's deployment of troops to Russia, which may assist in a conflict perceived as a challenge to U.S. dominance. While China is an important, albeit unofficial supporter of Russia’s war in Ukraine, offering technological aid to its defense sector, there may be private concerns among Chinese officials regarding North Korea's actions.
https://www.economist.com/china/2024/10/31/north-koreas-aid-to-russia-raises-difficult-questions-in-china
Janet Yellen and Chinese central banker discuss financial monitoring and money laundering
South China Morning Post
US Treasury Secretary Janet Yellen recently met with China's deputy central bank governor Xuan Chengneng in Washington to discuss financial market monitoring and money laundering coordination. This meeting was part of a series of discussions in a bilateral economic working group and coincided with the annual meetings of the World Bank and International Monetary Fund. The talks continued from a previous meeting Yellen had with China's vice-minister of finance, where they discussed Beijing's stimulus measures and macroeconomic issues. Key topics included international macroeconomic data reporting, banking stress communication, and climate risk. Additionally, the two sides held their third meeting on anti-money laundering, during which they raised concerns. China's legislative body is currently reviewing revisions to its Anti-Money Laundering Law to address new risks associated with technologies like cryptocurrency.
https://www.scmp.com/news/china/diplomacy/article/3284699/janet-yellen-and-chinese-central-banker-discuss-financial-monitoring-and-money-laundering?utm_source=rss_feed
China rounds up Batman, Donald Trump and the Buddha
Economist
Halloween in China has become a subtle form of protest against the Communist Party, as young adults express their frustrations through costumes. Last year, in Shanghai, revelers dressed up as surveillance cameras and covid-19 testers, while one individual donned a costume resembling Winnie-the-Pooh, a character that has been used to mock Xi Jinping. The Chinese government has shown increasing disdain for Halloween, reflecting its broader intolerance for dissenting expressions.
https://www.economist.com/china/2024/10/31/china-rounds-up-batman-donald-trump-and-the-buddha
China investigation of drug firm exec deals latest blow to foreign business confidence
South China Morning Post
AstraZeneca's China president, Leon Wang, is under investigation, raising concerns over foreign business confidence in China. This investigation, linked to aggressive sales tactics in the oncology sector, marks a rare scrutiny of a foreign executive. Observers criticize the lack of transparency, emphasizing the need for fair investigations to foster foreign investment. The case aligns with China's ongoing anti-corruption campaign in the pharmaceutical sector, which has impacted numerous executives. Experts warn that continued ambiguity in regulations and investigations could deter foreign companies from operating in China, further complicating the business environment.
https://www.scmp.com/news/china/politics/article/3284686/china-investigation-drug-firm-exec-deals-latest-blow-foreign-business-confidence?utm_source=rss_feed
Chinese online retailer Temu faces EU investigation into rogue traders and illegal goods
The Globe and Mail
Chinese online retailer Temu is under investigation by the European Commission for failing to prevent the sale of illegal products on its platform. The inquiry follows Temu's addition to the list of "very large online platforms" that require strict oversight under the EU's Digital Services Act (DSA). Temu, owned by Pinduoduo Inc., has seen rapid growth in Europe by offering low-cost goods from Chinese sellers, amassing 92 million users in the EU. The investigation will assess whether Temu effectively curbs rogue traders and non-compliant goods and examine the platform's addictive design and compliance with DSA transparency requirements. Temu has stated its commitment to cooperating with regulators and enhancing compliance. The EU's scrutiny of tech companies has intensified since the DSA's implementation, with other platforms, including AliExpress, also facing investigations. Temu has previously faced criticism in the U.S. for not adequately addressing the sale of products made with forced labor.
https://www.theglobeandmail.com/business/international-business/article-chinese-online-retailer-temu-faces-eu-investigation-into-rogue-traders/
China outlook murky for executives as companies plan for Trump tariff blitz
South China Morning Post
A recent UBS survey indicates that more companies operating in China are contemplating closing factories and exiting the country due to the anticipated higher tariffs on Chinese goods if Donald Trump is re-elected as president. Among the 419 CFOs surveyed, over 90% expect additional tariffs, with nearly one-third considering factory closures or leaving China altogether. Executives showed a more pessimistic outlook for their businesses, particularly in the manufacturing sector, as they strategize to mitigate risks by expanding into other markets and relocating supply chains. The survey highlights a trend of companies already having around 40% of their production overseas, with Japan, the US, South Korea, Taiwan, and Southeast Asia identified as potential relocation destinations. The outlook for domestic orders and profit margins in China appears bleak, with expectations of declines in the first half of 2025. Analysts warn that a potential Trump re-election could jeopardize any recovery in export orders.
https://www.scmp.com/economy/china-economy/article/3284659/china-outlook-murky-executives-companies-plan-trump-tariff-blitz?utm_source=rss_feed
China’s eastern Zhejiang province rolls out platform to grow cross-border e-commerce
South China Morning Post
Zhejiang province in eastern China, which contributes significantly to the country's online trade, has launched the Zhejiang Cross-Border E-commerce Comprehensive Service Platform in Hangzhou. This initiative aims to simplify government processes and provide integrated services to enhance sales for merchants, addressing issues like fundraising and regulatory compliance. The platform is expected to serve 15,000 enterprises over the next three years, targeting a cross-border e-commerce export value of 35 billion yuan (US$4.9 billion). Currently, 69 companies, including those in logistics and payments, have joined the platform. The initiative reflects the growing importance of international markets for Chinese e-commerce businesses, especially amid weak domestic consumption and increasing overseas regulatory scrutiny. In 2022, Zhejiang's cross-border e-commerce accounted for over 20% of China's total, with a notable 38.5% increase in export value in the first half of this year. Hangzhou is home to Alibaba, which has been enhancing its global reach, while Yiwu is known as a major global wholesale hub.
https://www.scmp.com/tech/policy/article/3284644/chinas-eastern-zhejiang-province-rolls-out-platform-grow-cross-border-e-commerce?utm_source=rss_feed
China’s central bank holds steady with 200 billion yuan net bond purchase
South China Morning Post
In October, China's central bank, the People’s Bank of China (PBOC), purchased a net 200 billion yuan (US$28.07 billion) in treasury bonds to enhance liquidity amid economic challenges and to help meet its annual growth target. This purchase maintained the same level as September and aimed to strengthen countercyclical monetary policy adjustments. The PBOC's bond holdings rose to 2.26 trillion yuan (US$317.14 billion) by the end of September, representing 5% of its total assets. The central bank's bond purchases resumed in late August after a nearly two-decade hiatus, signaling a new monetary supply mechanism. Anticipation of increased government bond issuance next year, including special treasury bonds, is expected to address debt risks and fund construction projects. Additionally, bond yields have been under pressure due to a sluggish economic recovery, with the yield on 10-year government bonds fluctuating around 2.15% following stimulus measures.
https://www.scmp.com/economy/china-economy/article/3284680/chinas-central-bank-holds-steady-200-billion-yuan-net-bond-purchase?utm_source=rss_feed
Philippine coastguard hailed as ‘vigilant stewards’ against China - but why no new ships?
South China Morning Post
The Philippine Coast Guard (PCG) will not receive funding for new vessels in 2025, despite President Ferdinand Marcos Jr.'s commitment to strengthen the agency amid tensions in the South China Sea. The PCG's budget of 31.28 billion pesos mainly covers personnel costs, with only limited projects approved for maritime enhancement. While the U.S. and Japan are providing support for infrastructure and vessel acquisitions, the PCG's current personnel of around 30,000 is projected to grow to 137,000 by 2025, though some lawmakers doubt this is feasible. The Senate will review the budget before final approval.
https://www.scmp.com/week-asia/politics/article/3284679/philippine-coastguard-hailed-vigilant-stewards-against-china-why-no-new-ships?utm_source=rss_feed
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