Xi bristles as Macron and von der Leyen urge China to do more on Ukraine; Who’s who on Xi’s Europe trip: Chinese president accompanied in Macron meeting by top party and ministerial officials
2 Chinese men convicted in Singapore’s largest money laundering case deported to Cambodia
Welcome to this issue of The China Brief. Today is May 7, 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.
2 Chinese men convicted in Singapore’s largest money laundering case deported to Cambodia
South China Morning Post
Two men convicted in Singapore's largest money laundering case have been deported to Cambodia. Su Wenqiang and Wang Baosen were sentenced to 13 months' jail in April and are barred from re-entering Singapore. Su admitted to 11 charges of money laundering and possessing proceeds from illegal remote gambling offences, while Wang pleaded guilty to possessing almost SGD600,000 ($442,000) in illegal proceeds and money laundering. The two men were among 10 people arrested in August 2023 after police were tipped off about possible illicit activities by a group of foreign nationals. More than SGD3bn in assets have been seized or frozen in relation to the case.
Xi bristles as Macron and von der Leyen urge China to do more on Ukraine
Japan Times
French President Emmanuel Macron and European Commission chief Ursula von der Leyen have urged Chinese President Xi Jinping to reduce support for Russia as it invades Ukraine. They called on China to curtail the transfer of dual-use materials to Moscow that are being used in the conflict. Von der Leyen stated that the war in Ukraine affects EU-China relations due to the existential threats it poses to both Ukraine and Europe.
South China Morning Post
Chinese President Xi Jinping is being accompanied by a group of senior diplomats and officials who oversee the country’s economic and trade affairs on his trip to Europe. The five-day trip to France, Serbia and Hungary is Xi’s first visit to Europe in five years, and his third trip to France since taking office as president in 2013.
How Alibaba is leading the evolution of online luxury shopping
South China Morning Post
Alibaba's Tmall Luxury Pavilion has partnered with brands participating in the Watches and Wonders fair to allow Chinese consumers to view and compare the latest watch releases and shop directly from the offerings in Geneva via the Taobao app. Tmall Luxury Pavilion is becoming the platform of choice for luxury brands looking to enter the Chinese market, offering a mix of offline and online offerings to engage with digitally-savvy Chinese shoppers. The platform is particularly popular among younger consumers, who are actively engaging with brands in the digital realm and looking for emotional connections and investment pieces such as jewellery and watches. Tmall Luxury Pavilion offers a range of digital features and services, including interactions with metaverse idols, virtual try-on services, and one-on-one live-stream consultations, to enhance the shopping experience and capture the attention of Chinese consumers. The platform also attracts customers through celebrity ambassador broadcasts and appearances, giveaways of limited-edition gifts, and immersive digital experiences, such as a digital re-creation of Place Vendôme in Paris.
Australia PM blasts China for ‘unacceptable’ use of flares near military helicopter
South China Morning Post
Australian Prime Minister Anthony Albanese has condemned China for endangering Australian defence personnel during an operation to enforce UN sanctions on North Korea. On Saturday, a Chinese fighter jet dropped flares in front of an Australian military helicopter in the Yellow Sea, prompting Australia’s Defence Minister Richard Marles to describe the action as “unsafe and unacceptable”. China’s foreign ministry said the helicopter was flying “in a threatening way” near Chinese airspace and that the necessary measures had been taken to warn the Australian helicopter.
At least 10 killed or injured in hospital attack in China
South China Morning Post
At least 10 people have been killed or injured in an attack on a hospital in Zhenxiong county, Yunnan province in southwest China. The details of the victims, the attacker, and the motive are currently unknown. The incident is being investigated, and it is unclear whether the suspect has been apprehended by the police. Zhenxiong county, which borders Guizhou and Sichuan provinces, was classified as "poverty-stricken" until 2020 and recently experienced an avalanche that claimed the lives of 44 people.
In Europe, Xi looks to counter claims it’s aiding Russia in Ukraine
CNN
Chinese President Xi Jinping has denied allegations that China is supporting Russia’s war in Ukraine, stating during a joint press conference with French President Emmanuel Macron that China is “neither the creator of the crisis, nor a party to it or a participant.” Xi’s visit to Europe comes amid increasing tensions between China and the continent, spurred by concerns of Beijing’s close ties to Moscow. The Chinese President will also visit Serbia and Hungary.
In China, ruled by men, women quietly find a powerful voice
Japan Times
Women in Shanghai and other major cities in China are navigating the difficult landscape of expressing themselves publicly. The ruling Communist Party has deemed feminism as a threat to its authority and has imprisoned female rights activists. Issues such as harassment and violence against women are often ignored or silenced. Despite these challenges, women in China are finding ways to gather and discuss their place in society through events such as public vows of commitment to themselves, film screenings, and book clubs.
BYD Americas CEO says EV maker is not TikTok or Huawei
Nikkei Asia
BYD CEO Stella Li has argued that Chinese electric vehicle maker BYD should not be blocked from doing business in the US. Speaking at the 2024 Milken Institute Global Conference, Li stated that it is unfair to automatically associate a Chinese company with the Chinese government and that BYD operates in a different industry from TikTok and Huawei. Li also highlighted that BYD is well positioned to become a global company and that the US should allow its companies to choose the best supplier for their needs.
South China Morning Post
Beijing will work in tandem with Hong Kong authorities to make the city more attractive to talent from mainland China and the rest of the world, the country’s top official overseeing labour policies has said. Wang Xiaoping, the country’s human resources and social security minister, made the pledge at Hong Kong’s two-day Global Talent Summit on Tuesday as the city’s labour chief said local authorities would focus on attracting more professionals from Southeast Asia and Europe. Wang also reiterated the country’s support for Hong Kong’s efforts to become an international talent hub, as well as its drive to become a more entrepreneur-friendly environment.
The Secret to Japanese and South Korean Innovation
Foreign Affairs
Japan and South Korea have adopted an open innovation model that emphasizes collaboration between startups and existing conglomerates, challenging the myth of Silicon Valley's individual genius-driven innovation. Both countries believe that cooperation between startups and large companies is crucial for boosting economic competitiveness in frontier technologies. By working together, startups inject new ideas and talent into large firms, helping them compete globally. This approach has proven successful in sectors such as semiconductors, robotics, energy-efficient shipping, and electric batteries.
In contrast, the US still holds onto the Silicon Valley myth, which promotes the idea that startups should work independently to disrupt existing companies. However, the reality is that the US technology sector is dominated by a few large firms that act as technology platforms for startups. These firms host research campuses, run accelerators, and acquire new inventions. Despite this, US policy remains antagonistic towards large tech companies, while small startups are celebrated. This approach limits the potential benefits of collaboration between startups and existing firms in boosting the country's economic and technological competitiveness.
US policymakers should embrace the power of open innovation and actively engage large firms as partners in startup policy. This would involve facilitating collaboration between startups and incumbents, rather than viewing large firms as threats. Government support for startups in sectors crucial to future growth and prosperity should also be considered, even if success is not guaranteed. By adopting a more open approach towards large firms and promoting collaboration, the US can harness the full potential of its startup ecosystem and increase its competitiveness in the global economy.
America’s China Strategy Has a Credibility Problem
Foreign Affairs
The United States must develop a clearer sanctions strategy to effectively deter China's aggressive foreign policy and potential military actions, according to an article in Foreign Affairs. While the US has many powerful sanctions at its disposal, it has opted for a more limited approach, imposing controls on a few Chinese firms and personal sanctions on Chinese officials. This restrained response may be seen as a lack of credibility, encouraging China to assume it would not face harsh sanctions even in the event of a conflict. The article argues that the US and its allies should focus on keeping China in the global financial system, using the leverage of the US dollar. However, it also notes that imposing severe financial sector sanctions could provoke resistance from other major economies and impact global supply chains. The US must therefore strike a delicate balance, using financial sector sanctions enough to be taken seriously without pushing China out of dollar-based systems. The article emphasizes the importance of building a credible sanctions threat with the support of US allies and partners, and highlights the need for economic resilience and deeper economic integration with close partners. It also calls for the transformation of the US bureaucracy to prepare for potential crisis or conflict scenarios with China, and to institutionalize a strategic planning process for economic statecraft.
South China Morning Post
Shenzhen and Wuhan have become the latest Chinese cities to ease home purchase restrictions to boost sales, as a growing number of major metropolises take steps to support the country’s slumping property sector and shore up confidence. Shenzhen, China’s technology hub, said it has lowered the thresholds for the personal income tax and social insurance payments of non-local individuals and families seeking to buy a property in certain districts, while allowing local families with two or more young children to buy additional homes in those areas.
US, UK, most EU nations to boycott Putin inauguration
Al Jazeera
The US and most EU countries have said they will not send envoys to Vladimir Putin's inauguration for a fifth term as Russian president. The UK, Canada, the Baltic states and the Czech Republic have all confirmed they will not send representatives to the ceremony, while Germany has said its representative will not attend. Despite this, France, Hungary and Slovakia are all expected to send representatives, while China's president, Xi Jinping, will be in attendance. France has said that it does not want regime change in Moscow.
South China Morning Post
The Short Shorts Film Festival & Asia is set to showcase films that shed light on global issues such as conflicts and disasters. The festival, which is eligible to nominate films for the Academy Awards, will feature a variety of movies, including Palestine Islands, a French film that tells the story of a young Palestinian girl trying to convince her blind grandfather that the Israeli wall has fallen. The festival will also include films on the Ukraine-Russia conflict and the aftermath of the Turkey-Syria earthquake. Additionally, the festival will showcase films created with the help of artificial intelligence (AI), including the first AI-generated film to be featured at the festival. The festival will take place from June 4-17 in Tokyo.
South China Morning Post
Alibaba is carrying out a revamp of its Taobao e-commerce platform ahead of China's second-largest online shopping festival, aiming to improve the user experience and regain business momentum. The upgrade will simplify the website's layout, improve the search and buying process, and extend the time users can stay logged in. The overhaul comes as Alibaba faces rising competition and a difficult business restructuring, and follows CEO Eddie Wu Yongming's push to focus on consumer services and experiences. The revamp will also complement Taobao's popular app as the company seeks to attract new users and regain its top position in China's e-commerce sector.
Hong Kong stocks stall near 8-month high as traders mull cashing in on bull run
South China Morning Post
Hong Kong stocks wavered near an eight-month high as traders debated whether to cash in on the bull run. The Hang Seng Index slipped 0.7% to 18,453.20, having gained as much as 0.3% earlier in the session. The Tech Index declined 1.7%, while the Shanghai Composite Index was little changed. Prior to the dip, the Hang Seng Index had risen for 10 consecutive trading days, the longest winning streak since 2018, with the rebound from a January low of more than 20%, which technical traders view as a bull market. However, the Hang Seng Index’s 14-day relative strength index has risen above 70, a threshold that suggests stocks are overbought and due for a correction.
China’s belt and road, once a hotspot for European investment, is getting the cold shoulder
South China Morning Post
European companies are finding it increasingly difficult to participate in China's Belt and Road Initiative due to geopolitical complications and growing tensions. While some European firms are still involved in projects aligned with the initiative, they face challenges including fundamental differences of opinion on how best to build infrastructure and concerns over geopolitical risks. Furthermore, the Covid-19 pandemic has made the domestic market in China less friendly to foreign investors. German multinationals have previously offered components and expertise to Chinese projects in Africa, but have faced difficulties finding partners due to hesitation from numerous companies over approaches and standards. China's preference to work alone has also been highlighted. China has shifted its focus to smaller-scale infrastructure projects with initiative partners, and European participants would require a certain level of environmental protection and proof of a nation's capacity to repay loans.
South China Morning Post
TikTok CEO Shou Zi Chew and his wife, Vivian Kao, attended the Met Gala 2022 and have received attention due to Chew's commitment to fighting US lawmakers' decision to force TikTok to separate from its parent company or face a ban. Chew, who previously worked at Goldman Sachs and DST Global, has an estimated net worth of $200 million. The couple met while studying at Harvard Business School and have three children.
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