Why China’s latest corruption probes hint at fury, betrayal over political disloyalty;U.S. Allies Watch the Debate With Shaking Heads and a Question: What Now?
Hong Kong’s IPO proceeds plunge to 2-decade low, pushing city down the global rankings
Welcome to this issue of The China Brief. Today is June 28, 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.
Why China’s latest corruption probes hint at fury, betrayal over political disloyalty
South China Morning Post
The Chinese Communist Party has expelled and launched criminal charges against two former defence ministers, Wei Fenghe and Li Shangfu, in a corruption probe. The party has accused the two men of betraying the trust of the party and causing great damage to China's national defence. The unprecedented move comes as part of President Xi Jinping's anti-graft campaign, which has seen more Chinese generals sacked for corruption during Xi's tenure than killed in the 20th century.
https://www.scmp.com/news/china/military/article/3268434/why-chinas-latest-corruption-probes-hint-fury-betrayal-over-political-disloyalty?utm_source=rss_feed
U.S. Allies Watch the Debate With Shaking Heads and a Question: What Now?
NY Times
Many countries in Asia were disappointed and concerned after watching the first presidential debate between President Biden and former President Trump. The chaotic and contentious nature of the debate raised questions about the stability of U.S. politics and its impact on the region. Countries in Asia have been working to rebuild ties with the U.S. after President Trump's first term strained alliances, and the debate brought these concerns back to the forefront. Observers noted that the quality of the debates has deteriorated compared to previous ones, and the lack of civility and factual inaccuracies were unsettling for those who rely on the U.S. as a trusted global partner.
https://www.nytimes.com/2024/06/28/world/asia/biden-trump-debate-allies.html
Hong Kong’s IPO proceeds plunge to 2-decade low, pushing city down the global rankings
South China Morning Post
Hong Kong fell to 13th place in the ranking of global IPO markets, as funds raised from new share listings dropped to a 20-year low. A total of 27 companies raised $1.5bn via IPOs on the main board of the Hong Kong stock exchange in H1 2024, compared to $802m raised in the first half of 2003 when the Sars virus derailed the city’s markets. However, the funds raised in Q2 2024 were 40% higher than in the first three months, suggesting things may be improving.
https://www.scmp.com/business/banking-finance/article/3268422/hong-kongs-ipo-proceeds-plunge-2-decade-low-pushing-city-down-global-rankings?utm_source=rss_feed
Biden and Trump spar over China, economy and security in debate about America’s future
South China Morning Post
During the first presidential debate of 2024, US President Joe Biden criticized former President Donald Trump's proposed tariff hikes. Biden accused Trump of planning to make the average American pay an additional $2,500 per year with his proposal to impose a tariff of 10% or more on all imports. Trump defended his plan, claiming it would lead China to pay the US a lot of money and reduce the deficit. The debate also touched on other topics such as alliances, job creation, and US reputation in the world. The debate was held five months before the election, making it the earliest ever.
https://www.scmp.com/news/china/article/3268418/biden-and-trump-spar-over-china-economy-and-security-debate-over-americas-future?utm_source=rss_feed
China ousts two ex-defense ministers from party over graft
Japan Times
China's ruling Communist Party has expelled two former defense ministers, Li Shangfu and Wei Fenghe, on corruption charges. The decision was made by the 24-man Politburo, who accused both men of taking bribes and failing to cooperate with investigations. Wei served as defense minister from 2018 to 2023 before being replaced by Li, who was then fired after just seven months in the role.
https://www.japantimes.co.jp/news/2024/06/28/asia-pacific/politics/china-ousted-ministers-graft/
Google Translate now supports Cantonese after its biggest language expansion, driven by AI
South China Morning Post
Google Translate has added Cantonese to its service as part of its largest-ever expansion, which saw support for 110 new languages. Users can now translate between 243 languages, including Cantonese, which is widely spoken in Hong Kong, Macau, Guangdong province in China, and Chinese migrant communities worldwide. The addition of Cantonese was made possible by Google's generative artificial intelligence (GenAI) technology, which allows the translation of text and voice. Google Translate's ability to learn closely related languages has been improved by its PaLM 2 large language model. Other languages added to Google Translate include Punjabi, Awadhi, and Marwadi.
https://www.scmp.com/tech/big-tech/article/3268410/google-translate-now-supports-cantonese-after-its-biggest-language-expansion-driven-ai?utm_source=rss_feed
Bank of New York Mellon sues to liquidate Sino Ocean for US$400 million debt and interest
South China Morning Post
The Bank of New York Mellon has filed a lawsuit in Hong Kong to liquidate Chinese developer Sino-Ocean Group. Sino-Ocean is the guarantor of a $400m debt and accrued interest and has received a petition from the bank's London branch. Sino-Ocean said it will "oppose the petition vigorously" and is working with its financial and legal advisers to put together a plan to repay its creditors. This comes as a growing number of Chinese property developers are facing liquidation lawsuits amid a nationwide deleveraging campaign that has caused severe liquidity issues for the industry.
https://www.scmp.com/business/article/3268397/bank-new-york-mellon-sues-liquidate-sino-ocean-us400-million-debt-and-interest?utm_source=rss_feed
Chinese woman dies after stabbing near Shanghai that injured Japanese
Nikkei Asia
A Chinese woman has died after trying to stop a knife attack at a bus stop in Suzhou, China. Hu Youping, a Japanese school bus attendant, sustained severe injuries in the attack and died in hospital two days later. The attack also injured a Japanese mother and her son, who were waiting for another child at the bus stop. The injuries are not life-threatening. Hu attempted to restrain the assailant, allowing the Japanese boy to escape, before being stabbed herself. The attacker was subdued by passersby and police. There is no evidence to suggest that the assailant specifically targeted Japanese nationals. The Chinese government has pledged to protect the safety of all foreign nationals in China.
https://asia.nikkei.com/Spotlight/Society/Crime/Chinese-woman-dies-after-stabbing-near-Shanghai-that-injured-Japanese
Singapore's CapitaLand focuses on Vietnam as supply chains leave China
Nikkei Asia
Singapore-based property manager CapitaLand Investment plans to invest up to $110m in Vietnam over the next two years to build or acquire industrial factories. As industries look to diversify supply chains to counteract the effects of the US-China trade war, the company expects demand from manufacturers to follow supply chains out of China. CapitaLand Investment also plans to make similar investments in Malaysia and Thailand.
https://asia.nikkei.com/Spotlight/Supply-Chain/Singapore-s-CapitaLand-focuses-on-Vietnam-as-supply-chains-leave-China
Malaysia 1MDB scandal: Jho Low, US reach secret deal to try to ‘forever’ resolve forfeiture case
South China Morning Post
The US Department of Justice (DOJ) has reached a confidential agreement with fugitive financier Jho Low in an attempt to resolve the asset forfeiture campaign linked to the 1MDB corruption scandal. The global settlement agreement will resolve US civil, criminal and administrative asset forfeiture actions or proceedings relating to the disposition of 1MDB assets, according to documents reviewed by reporters. The DOJ signed the agreement in early June with Low’s family lawyers and their financial trustees. The agreement will involve the surrendering of assets previously identified by the authorities and those not previously claimed or captured by prosecuting agencies globally. The deal could bring closure to one of Washington’s longest-running asset forfeiture cases. The latest agreement is the second asset forfeiture deal between the DOJ and Low, following a separate $700m deal in October 2019. Low remains one of the most wanted criminal suspects in the 1MDB affair. The settlement agreement does not release any entity or individual from criminal charges.
https://www.scmp.com/news/asia/southeast-asia/article/3268455/malaysia-1mdb-scandal-jho-low-us-reach-secret-deal-try-forever-resolve-forfeiture-case?utm_source=rss_feed
India is losing interest in the Shanghai Cooperation Organization
Nikkei Asia
India's involvement in the Shanghai Cooperation Organization (SCO) is increasingly at odds with its pro-Western foreign policy, according to Brahma Chellaney in Nikkei Asia. The SCO's orientation towards China and Russia contrasts with India's close ties to the West and its support for a democratic-led Indo-Pacific region. India's growing discomfort also arises from China's expanding influence in the SCO, its rivalry with Pakistan, and the group's lack of cohesion. While the SCO's presence has symbolic value for India, it fails to provide any strategic benefit, leading Chellaney to conclude that India's involvement is diminishing in value. Prime Minister Narendra Modi is expected to skip this year's SCO summit, highlighting India's second thoughts about its participation and the declining salience of the SCO for India's foreign policy.
https://asia.nikkei.com/Opinion/India-is-losing-interest-in-the-Shanghai-Cooperation-Organization
Chinese developer Sino-Ocean hit with liquidation petition by U.S. bank
Nikkei Asia
Sino-Ocean Group Holding, a midsize state-backed Chinese developer, has received a winding-up petition from the London branch of the Bank of New York Mellon to the Hong Kong High Court. The petition was brought because a subsidiary of the Chinese group, Sino-Ocean Land Treasure IV, failed to make a payment on a bond due in 2026 with interest of 3.25%. Sino-Ocean Group Holding has been struggling to sell properties, with contracted sales and sales area falling during the first five months of 2024.
https://asia.nikkei.com/Business/Markets/China-debt-crunch/Chinese-developer-Sino-Ocean-hit-with-liquidation-petition-by-U.S.-bank
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