Rui Chenggang, former CCTV anchor, resurfaces on YouTube, dismisses ‘various scandals’
Tim Cook makes low-key visit to China as Apple Intelligence roll-out remains uncertain
Welcome to this issue of The China Brief. Today is October 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.
Rui Chenggang, former CCTV anchor, resurfaces on YouTube, dismisses ‘various scandals’
South China Morning Post
Rui Chenggang, a former CCTV presenter, reappeared after a decade of absence due to corruption allegations. In a 17-minute YouTube video, he dismissed rumors of espionage and scandals, claiming they were "fake news." Rui, who was reportedly sentenced to six years in prison in 2016, expressed regret for losing years of his life and stated he now works as an investor. He plans to share his experiences on the platform, which is blocked in China. Rui's return mirrors that of other former CCTV personalities who have also turned to YouTube for continued engagement.
https://www.scmp.com/news/china/politics/article/3283386/rui-chenggang-former-cctv-anchor-resurfaces-youtube-dismisses-various-scandals?utm_source=rss_feed
Tim Cook makes low-key visit to China as Apple Intelligence roll-out remains uncertain
South China Morning Post
Apple CEO Tim Cook visited Beijing for the second time this year, amid speculation about the launch of Apple's on-device AI system in China. He met with students and customers, but there were no official statements from Chinese authorities regarding his visit. Analysts suggest that consumer interest in the iPhone 16 is low due to the delayed release of Apple Intelligence. In contrast, Chinese Android brands are rapidly integrating AI features into their devices. Cook emphasized the importance of regulatory compliance before introducing AI features in China, where 188 generative AI services have already been approved.
https://www.scmp.com/news/china-future-tech/ai/article/3283384/tim-cook-makes-low-key-visit-china-apple-intelligence-roll-out-remains-uncertain?utm_source=rss_feed
China’s home sales gain momentum as Beijing’s support revives confidence, reports show
South China Morning Post
Home sales in China are experiencing a resurgence in October, driven by Beijing's recent measures to stimulate the housing market. Data from the Lingping Real Estate Data Research Institute indicates a 24% increase in new home transactions across 15 cities, totaling 24,287 units last week, while secondary home sales rose 20% to 20,724 units in 10 major cities. This surge marks a significant improvement compared to earlier averages of approximately 15,497 units per week prior to the policy announcement.
Beijing's interventions included cutting mortgage rates, reducing down payment requirements, and easing residency restrictions to counteract a four-year slump in the housing sector. Additionally, the housing ministry has allocated an extra 4 trillion yuan for "white-listed" projects and plans to renovate 1 million older homes in major cities. Notably, cities like Shanghai and Shenzhen are witnessing strong sales, with rapid sell-outs of new developments.
This increase in home sales is being viewed as a benchmark for the effectiveness of Beijing's policies and the overall economic recovery. The property sector, which once contributed significantly to China’s GDP, has struggled due to previous restrictive policies that limited financial support for developers. Analysts are growing more optimistic, with UBS raising its GDP growth forecasts for China in the coming years, attributing part of this positive outlook to the recent stimulus measures.
https://www.scmp.com/business/china-business/article/3283370/chinas-home-sales-gain-momentum-beijings-support-revives-confidence-reports-show?utm_source=rss_feed
Philippines’ chip industry group courts TSMC, UMC in bid to move up value chain
South China Morning Post
The Philippines is seeking partnerships with Taiwanese semiconductor companies like TSMC and UMC to enhance its chip manufacturing capabilities, aiming to compete with regional leaders like Malaysia and Singapore. The country plans to attract these firms by offering to train Filipino workers in exchange for used equipment. With a projected global shortage of over one million skilled workers by 2030, the Philippines hopes to leverage its low costs and workforce. Additionally, the government is working to improve incentives for foreign investors, as the electronics sector faces challenges due to competition from neighboring countries.
https://www.scmp.com/tech/big-tech/article/3283366/philippines-chip-industry-group-courts-tsmc-umc-bid-move-value-chain?utm_source=rss_feed
Son of Singapore founder says ‘campaign of persecution’ forced him to seek asylum in UK
Guardian
Lee Hsien Yang, a senior member of Singapore's founding family, has been granted asylum in the UK after fleeing what he describes as a campaign of persecution by the Singaporean government. In an interview, he criticized the authoritarian regime, noting that despite its economic prosperity, it suppresses dissent and harbors a dark side. Following a family rift and his endorsement of the opposition, he faced numerous legal actions based on what he claims were baseless allegations against him and his family, leading him to seek safety abroad. Lee Hsien Yang's father, Lee Kuan Yew, established Singapore as a powerful nation but also implemented repressive measures. Tensions within the family escalated over their father's estate, resulting in legal disputes and government scrutiny of Lee Hsien Yang’s family. He believes these actions were politically motivated and linked to his brother, former Prime Minister Lee Hsien Loong. While Singaporean officials deny allegations of persecution and assert that the legal system is fair, Lee Hsien Yang continues to call for greater scrutiny of Singapore's role in facilitating illicit financial activities.
https://www.theguardian.com/world/2024/oct/22/son-of-singapore-founder-says-campaign-of-persecution-forced-him-to-seek-asylum-in-uk-lee-hsien-yang
Envoy says US tech restrictions against China may ‘plunge the world into the abyss’
South China Morning Post
During a UN session, Chinese envoy Fu Cong criticized the US's technology restrictions, warning that such actions could lead to global confrontation. He accused certain countries of attempting to monopolize technology under the guise of national security, destabilizing supply chains and hindering progress. Fu emphasized the dangers of these "man-made divisions" compared to the risks posed by technology itself. He also condemned the misuse of technology in conflicts and called for respecting international humanitarian law. The ongoing tech rivalry between the US and China is expected to persist, regardless of the upcoming US presidential election outcome.
https://www.scmp.com/news/china/diplomacy/article/3283350/envoy-says-us-tech-restrictions-against-china-may-plunge-world-abyss?utm_source=rss_feed
China Turns Up the Heat on Taiwan With Live-Fire Drills
NY Times
China is set to conduct live-fire military drills in the Taiwan Strait on Tuesday, escalating tensions in the region. This follows recent large-scale military exercises by China aimed at simulating a blockade of Taiwan and comes after American and Canadian warships passed through the strait. The drills will occur near Niushan Island, which is close to Taiwan, and are expected to last four hours. In response, Taiwan's premier downplayed the significance of the drills, calling them a "pointless threat" and warning that such military displays only create unnecessary tension.
https://www.nytimes.com/2024/10/22/world/asia/china-taiwan-live-fire-drills.html
Shanghai ports to break 50 million container barrier, set global shipping record in 2024
South China Morning Post
Shanghai's container ports are projected to handle over 50 million TEU containers this year, aiming to maintain their status as the world’s largest container port. Despite a four-month decline in China’s exports, Mayor Gong Zheng announced plans to liberalize the shipping industry, enhance legal frameworks, and promote clean energy and digital technology. The city is also developing facilities for green methanol production from food waste. The automation at Yangshan deep water port will increase efficiency in handling cargo. However, falling ocean freight rates are anticipated due to an oversupply of container vessels.
https://www.scmp.com/business/china-business/article/3283396/shanghai-ports-break-50-million-container-barrier-set-global-shipping-record-2024?utm_source=rss_feed
More than 60% of Chinese over 60 are empty nesters, survey finds
South China Morning Post
A nationwide survey in mainland China reveals that nearly 60% of individuals aged 60 and over are empty nesters, a significant increase over the past decade. Many cannot afford nursing home care, with costs in major cities exceeding 5,000 yuan monthly, while most can only pay up to 1,000 yuan. The survey highlights a decline in the average number of children per household and increased independence among the elderly. With a rapidly aging population, the government is encouraging older individuals to work and participate in volunteer activities, while addressing the need for improved care services and policies.
https://www.scmp.com/news/china/politics/article/3283392/more-60-chinese-over-60-are-empty-nesters-survey-finds?utm_source=rss_feed
Yellen Rebukes Chinese Lending Practices in Call for Debt Relief
NY Times
Treasury Secretary Janet L. Yellen criticized China's "opaque" lending practices and called for quicker debt relief for low- and middle-income countries in an interview before the International Monetary Fund (IMF) and World Bank's annual meetings. She emphasized that rising debt burdens hinder these countries' ability to invest in sustainable development and address issues like pandemics and climate change. Yellen acknowledged the backlash against the IMF and World Bank for their slow response to economic crises and the harsh reform measures they often require. She plans to highlight positive developments, such as increased lending capacity and faster project approvals, in her upcoming speech. The U.S. is advocating for a broader international initiative to address global debt beyond just those nations at risk of default.
https://www.nytimes.com/2024/10/22/us/politics/janet-yellen-china-lending.html
Waiting for Trump? How EU’s China policy anticipates his return to the White House
South China Morning Post
As the EU prepared to vote on imposing tariffs on Chinese electric vehicles, US diplomats urged member states to support the duties, warning that a rejection could harm future negotiations on China policy if Donald Trump returns to power. The European Commission, feeling pressure from China, proposed tariffs up to 35.3%, fearing a failed vote would damage the EU's credibility as a tough actor on China. Ultimately, the tariffs passed, reflecting the EU's anxiety about Trump's potential return and his unpredictable foreign policy. EU bureaucrats have been strategizing to "Trump-proof" their stance, particularly regarding China, with plans for trade negotiations and retaliatory tariffs if necessary. Despite a shared concern over China, the EU aims to "de-risk but not decouple," contrasting with the US's more isolationist tendencies. Ursula von der Leyen's leadership could align with Trump on China, but her challenge will be navigating the EU's disparate member state interests and maintaining coherence in policy. As uncertainty looms over US-China relations, EU officials remain cautious about Trump's unpredictability and unilateralist approach, urging the bloc to prioritize its own needs regardless of the US political landscape.
https://www.scmp.com/news/china/diplomacy/article/3283297/waiting-trump-how-eus-china-policy-anticipates-his-return-white-house?utm_source=rss_feed
HSBC divides into four businesses in major overhaul of operations
Guardian
HSBC's new CEO, Georges Elhedery, has announced a major restructuring, dividing the bank into four businesses and establishing a geographical split between east and west to reduce costs amid rising geopolitical tensions. Notably, Pam Kaur has been promoted to CFO, marking the first woman to hold this role in HSBC's history. The revised structure focuses on core strengths in the UK and Hong Kong, while combining global commercial and institutional banking. The changes aim to simplify operations and enhance market share, taking effect on January 1, with some hiring paused and travel expenses reduced.
https://www.theguardian.com/business/2024/oct/22/hsbc-divides-into-four-business-in-major-overhaul-of-operations
China’s Agents of Chaos
Foreign Affairs
In June 2024, U.S. Secretary of State Antony Blinken and NATO Secretary-General Jens Stoltenberg expressed concern over the growing alliance between China, Iran, North Korea, and Russia, labeled as a new “axis of evil.” Analysts note that these four autocracies coordinate their military and diplomatic efforts and share a common goal of undermining U.S. global influence. China is seen as the central figure in this bloc due to its economic power and support for North Korea, Iran, and Russia, helping them navigate international sanctions and bolstering their economies.
China, however, is cautious about being perceived as the leader or a formal member of this axis. Chinese officials have publicly advocated for nonalignment and have refrained from signing defense treaties with Russia and Iran. This ambiguity allows China to maintain economic ties with its authoritarian partners while avoiding direct blame for their aggressive actions. Despite its support for these nations, Beijing has also been careful not to overly antagonize key U.S. allies, such as Japan and South Korea, which complicates Washington's strategic calculations.
To effectively counter this emerging threat, the U.S. must recognize the interconnectedness of these autocratic states and treat them as a cohesive bloc. Rather than attempting to divide them, Washington should impose penalties on all members for misbehavior, thereby pressuring China to exert influence over its partners. Furthermore, the U.S. should broaden its diplomatic outreach to developing nations, emphasizing cooperation in areas aligned with their interests, such as healthcare and education. By reshaping its strategy and fostering alliances beyond the typical ideological divide, the U.S. can better position itself against the growing influence of the autocratic axis.
https://www.foreignaffairs.com/united-states/china-agents-chaos-russia-mastro
Southeast Asia deepening dependence on fossil fuels, think tank warns
Al Jazeera
Southeast Asia risks increasing its reliance on fossil fuels to meet rising electricity demand, according to a report by the think tank Ember. The region's electricity demand grew by 3.6% last year, entirely met by fossil fuels, while renewable energy's share fell from 28% to 26%. Carbon emissions rose by 6.6%, with top polluters including Vietnam and Malaysia. The International Energy Agency warns that Southeast Asia must invest $190 billion to meet climate goals by 2035, as clean energy technologies face institutional barriers and reliability issues. The region's electricity demand is expected to grow annually by 4%.
https://www.aljazeera.com/economy/2024/10/22/southeast-asia-deepening-dependence-on-fossil-fuels-think-tank-warns
China auto company VP faces backlash after video shows him eating hotpot in car
South China Morning Post
Yang Dacheng, Vice-President of Zeekr Intelligent Technology, faced backlash after posting a video of himself enjoying hotpot inside a new car model to promote its versatility. Critics condemned the idea of cooking in a vehicle, questioning hygiene and practicality. Yang later clarified that the intention was to showcase the car's multifunctional use and air filtration system, referring to the setup as a “new camping experience.” However, this response only fueled further criticism, with many arguing that the focus should be on genuine product quality rather than gimmicky marketing tactics in the competitive auto industry.
https://www.scmp.com/news/people-culture/trending-china/article/3282756/china-auto-company-vp-faces-backlash-after-video-shows-him-eating-hotpot-car?utm_source=rss_feed
US court awards Bahamas firm US$1.6 billion in case against China Construction America
South China Morning Post
A New York court has awarded BML Properties Ltd US$1.6 billion in a legal dispute against China Construction America regarding the Baha Mar tourism project in the Bahamas. The court found that construction delays, exacerbated by fraud from China Construction, caused BML's financial losses, totaling US$845 million in investments. The judgment included interest charges dating back to 2014. The project, initially announced in 2010, faced bankruptcy and was sold to Chow Tai Fook Enterprises in 2017. China Construction plans to appeal the decision. Baha Mar's original developer expressed satisfaction with the ruling.
https://www.scmp.com/news/china/article/3283301/us-court-awards-bahamas-firm-us16-billion-case-against-china-construction-america?utm_source=rss_feed
India announces deal with China on patrolling shared border, sparking hope of better ties
South China Morning Post
India has announced an agreement with China regarding patrolling arrangements along their shared border, a development that may help ease tensions stemming from a four-year military stand-off. Indian Foreign Secretary Vikram Misri stated that discussions over the past weeks led to this agreement, which aims to facilitate disengagement and resolve issues that arose in 2020, particularly in the eastern Ladakh and Aksai Chin areas. While the agreement has not yet been confirmed by China, it follows a history of conflicts between the two nations, including a serious clash in June 2020 that resulted in casualties on both sides. Diplomatic and military talks have been ongoing amid heightened tensions, affecting economic cooperation. Misri's announcement coincides with Indian Prime Minister Narendra Modi's upcoming attendance at the Brics summit, where he may meet with Chinese President Xi Jinping, although the details of a potential bilateral meeting are still being discussed.
https://www.scmp.com/news/china/diplomacy/article/3283289/india-announces-deal-china-patrolling-shared-border-sparking-hope-better-ties?utm_source=rss_feed
Tech war: Chinese official praises Xiaomi’s chip design as smartphone giant keeps mum
South China Morning Post
Xiaomi has reportedly designed China's first 3-nanometre smartphone chip, as announced by Tang Jianguo, a chief economist in Beijing's hi-tech sector. The news gained traction but was quickly removed from Chinese media without official clarification from Beijing Radio and Television Station. Xiaomi operates an in-house semiconductor unit that has previously designed various chips, including the S1 mobile chip and C1 image sensor. While the tech firm utilizes both self-designed and imported chips, its success comes amid increasing scrutiny over China's advancements in semiconductor technology, especially in light of US sanctions limiting access to global chip-making resources. Unlike Huawei, which faces strict export restrictions, Xiaomi maintains access to mobile chips from companies like Qualcomm, which has seen significant revenue growth from Chinese smartphone manufacturers.
https://www.scmp.com/tech/big-tech/article/3283264/tech-war-chinese-official-praises-xiaomis-chip-design-smartphone-giant-keeps-mum?utm_source=rss_feed
Apple’s iPhone 16 sees price cuts on Chinese online platforms for Singles’ Day promotions
South China Morning Post
Apple has slashed prices for its iPhone 16 models by up to 1,600 yuan (US$225) on Alibaba's Tmall platform as part of its Singles' Day promotion, aiming to boost sales amidst fierce competition in China. The discounts include a 500-yuan voucher for all iPhone 16 models and an additional trade-in subsidy of up to 1,100 yuan. Tmall's pricing for the basic iPhone 16 starts at 5,499 yuan, while the iPhone 16 Pro Max begins at 9,499 yuan. Competitors like JD.com and Pinduoduo have also introduced similar discount schemes, with Pinduoduo offering pre-release discounts. These price cuts come in response to a lackluster initial market reaction and intensified competition, as Huawei's smartphone sales have recently surpassed Apple's for the first time in 46 months. Apple's market share in China has declined, with the iPhone dropping out of the top five smartphone vendors. Singles' Day sales have extended over several weeks, involving both online and physical retail outlets.
https://www.scmp.com/tech/big-tech/article/3283270/apples-iphone-16-sees-price-cuts-chinese-online-platforms-singles-day-promotions?utm_source=rss_feed
Beijing AI academy launches new multimodal model in ‘largest tech contribution’
South China Morning Post
China's Beijing Academy of Artificial Intelligence (BAAI) has introduced Emu3, a multimodal AI model capable of understanding text, images, and video. This launch positions BAAI among the first Chinese entities to develop such a versatile model, as the country aims to catch up with leading US firms in AI technology. Emu3 employs a unified architecture that simplifies the training process by converting various input types into tokens, enhancing efficiency and performance compared to traditional task-specific models. BAAI claims Emu3 outperforms established models like Stable Diffusion XL and LLaVA in image processing. The model is expected to facilitate advancements in multimodal AI in China and has potential applications in fields such as autonomous driving and robotics. BAAI has also made its technical paper public and open-sourced some technologies on HuggingFace to foster collaboration in the AI community.
https://www.scmp.com/tech/big-tech/article/3283274/beijing-ai-academy-launches-new-multimodal-model-largest-tech-contribution?utm_source=rss_feed
China could tap 12 trillion yuan in new debt for stimulus in 2025, economist says
South China Morning Post
China needs to implement more stimulus measures quickly to prevent a downward economic spiral of insufficient spending and declining income, according to Zhang Bin, a government adviser. He estimates that new government debts could exceed 12 trillion yuan (US$1.67 trillion) next year. Zhang advocates for aggressive interest rate cuts and emphasizes the urgency of policy implementation to combat insufficient demand. He notes that previous policies were not sufficient, and for a targeted 5% economic growth, government spending should increase by at least 7%. Investment should focus on infrastructure improvements rather than traditional large-scale projects.
https://www.scmp.com/economy/policy/article/3283240/china-could-tap-12-trillion-yuan-new-debt-stimulus-2025-economist-says?utm_source=rss_feed
TikTok owner sacks intern for allegedly sabotaging AI project
Guardian
ByteDance, the owner of TikTok, has dismissed an intern for allegedly sabotaging an internal artificial intelligence project by "maliciously interfering" with the training of AI models. The incident, which occurred in August, prompted widespread rumors on Chinese social media, but ByteDance clarified that its official commercial products and large language models were not affected. The company refuted exaggerated claims about the extent of the disruption, including reports of significant financial losses and damage to thousands of AI training chips. Amidst concerns regarding generative AI safety and ongoing scrutiny in the US over TikTok's national security implications, ByteDance has also notified the intern's university about their conduct.
https://www.theguardian.com/technology/2024/oct/21/tiktok-owner-bytedance-sacks-intern-for-allegedly-sabotaging-ai-project
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