Report: Chinese swimmers were allowed to compete at Tokyo Olympics despite positive doping tests
Are Chinese electric vehicles taking over the world?; Beijing half-marathon winner stripped of medal after 'pacesetter' plot
Welcome to this issue of The China Brief. Today is April 20, 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.
Are Chinese electric vehicles taking over the world?
Al Jazeera
Western car manufacturers are facing fierce competition from Chinese electric vehicle (EV) makers, who are investing heavily in the sector. Tesla saw a 20% drop in sales in Q1 2024 compared to the same period in 2023, while Xiaomi, a Chinese smartphone manufacturer, recently launched its first EV. Chinese manufacturers already account for 60% of global EV sales, with Tesla and BYD competing for market share. Chinese EVs tend to be cheaper than Western-made cars, partly because a large proportion of the manufacturing process for EV batteries is carried out in China. The Chinese government also offers generous subsidies to both consumers and manufacturers. Western car makers receive some tax breaks for producing EVs, but the US government is considering increasing import tariffs on Chinese EVs to protect the US auto market. The EU is also considering whether to impose tariffs on Chinese car manufacturers. The raw materials needed for EV batteries are becoming cheaper to mine, which is helping to reduce EV manufacturing costs. The Indian EV market is also growing rapidly, with a 91% YoY increase in sales in 2023-24. Indian-made EVs are also being exported.
Beijing half-marathon winner stripped of medal after 'pacesetter' plot
Nikkei Asia
Chinese runner He Jie has been stripped of his first place medal in the Beijing Half Marathon after it was revealed that three African runners slowed down to let him win. The four runners were disqualified and had to return their medals and prize money. Chinese online users had shared a video of the race's final moments, which showed the three African runners deliberately reducing their pace to let He win. The race organisers issued an apology and revoked the right of the main organiser, Zhong'ao Lupao Sports Management, to host the Beijing Half Marathon.
China's drugmakers can't sell mRNA shots but haven't quit yet
Japan Times
Chinese vaccine developers, including Walvax Biotechnology, CSPC Pharmaceutical Group, and Stemirna Therapeutics, are exploring new targets for messenger RNA (mRNA) technology. These companies had developed mRNA COVID-19 vaccines that received limited emergency approvals in Asia. However, they are currently facing challenges due to a lack of revenue and are not manufacturing three of their China-market shots. Despite the difficulties, these Chinese companies are optimistic about the potential of mRNA technology and are seeking opportunities in other areas.
Hong Kong accounting watchdog initiates probe into PwC audits of bankrupt developer Evergrande
South China Morning Post
Hong Kong's accounting watchdog, the Accounting and Financial Reporting Council (AFRC), has announced that it will investigate PwC for alleged auditing fraud related to Chinese developer China Evergrande Group. The investigation comes after an anonymous letter raised concerns about potential deficiencies in PwC's systems of quality management and the quality of Evergrande's audit. The AFRC stated that it would not hesitate to take enforcement action if misconduct or violations of the Accounting and Financial Reporting Council Ordinance were found. PwC has refuted the allegations and said it has taken measures to investigate the origins of the "false information".
Report: Chinese swimmers were allowed to compete at Tokyo Olympics despite positive doping tests
Associated Press
A total of 23 Chinese swimmers were allowed to compete at the Tokyo Olympics despite testing positive for the heart medication trimetazidine, according to The Daily Telegraph. The swimmers tested positive at a training camp before the Games, but Chinese anti-doping authorities ruled that the tests had been contaminated and cleared the athletes without any penalties. The World Anti-Doping Agency (WADA) and World Aquatics also agreed with Chinese authorities and did not sanction any of the athletes. The Chinese swim team won a total of six medals at the Tokyo Olympics.
Former China central bank official warns against miscategorising ‘virtual economy’
South China Morning Post
Sheng Songcheng, former chief of the central bank’s statistics department, has warned against miscategorising what the “virtual economy” entails. He also wants to see more drastic measures taken to enhance R&D and high-end producer services. He argued that high-end elements of manufacturing, including research and development, design, patents, branding, and sales, also fall into the realm of producer services. China’s producer services account for 31.4% of the national GDP, compared with 47.7% for the US. To spur the development and deployment of advanced manufacturing, Sheng said China must increase the share of high-end producer services in the broader economy.
Panama Papers trial’s public portion comes to an unexpectedly speedy end
Associated Press
A trial of individuals accused of helping the world’s wealthiest people hide their wealth has concluded in Panama. The trial followed the 2016 “Panama Papers” scandal, which revealed details of around 240,000 shell companies created by the Mossack Fonseca law firm. The trial will now move into a private phase before a verdict is issued in around 30 working days. The scandal resulted in the resignation of Iceland’s prime minister, as well as drawing attention to the financial affairs of figures including Russian President Vladimir Putin.
South China Morning Post
Foreign investors are starting to return to China's stock market after a six-month exodus, encouraged by new regulations aimed at boosting market discipline. The appointment of Wu Qing as chairman of the China Securities Regulatory Commission (CSRC) has led to a rise in benchmarks tracking China's onshore stocks. Overseas investors are taking a more favourable view of the market due to lower delisting thresholds, stronger regulations, and increased oversight of high-frequency trading and the mutual fund industry. Wu's focus on investor protection and market discipline has impressed the market, and the CSRC has implemented draft rules to raise the bar for company listings and tighten oversight of trading. However, the stock market still faces challenges, including a lack of investor confidence and the lingering property crisis. To attract further investment, more long-term institutional flows are needed, along with improvements in the economy and earnings forecasts.
South China Morning Post
Major global technology companies, including Ericsson, Tesla, Amazon, and Intel, have announced job cuts, causing concern in the Chinese tech industry. Ericsson plans to cut 240 positions in China, while ByteDance has begun layoffs affecting around 1,000 employees. Other Chinese tech companies that have initiated job cuts include Tencent, Xiaomi, JD.com, Kuaishou Technology, Didi Chuxing, Bilibili, and Weibo. Meanwhile, Tesla's job cuts in China will mostly affect sales staff and will not impact production at its Gigafactory 3 in Shanghai. Amazon Web Services (AWS) has also made undisclosed job cuts.
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