Xi’s China proves a hard sell at officials’ overseas roadshows
Is Xenophobia on Chinese Social Media Teaching Real-World Hate? BYD comes to Thailand and China stakes its rare earths claims
Welcome to this issue of The China Brief. Today is July 4, 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.
Xi’s China proves a hard sell at officials’ overseas roadshows
Japan Times
Chinese officials are facing doubt and skepticism when pitching foreign capital investment opportunities abroad. This was evident at a recent event in Singapore, where officials from China's Inner Mongolia autonomous region promoted their rare earths sector to potential investors. One attendee questioned whether Beijing truly welcomed foreign investment in such minerals, given the tensions between the US and China surrounding them.
https://www.japantimes.co.jp/business/2024/07/04/economy/xi-china-overseas-roadshows/
Is Xenophobia on Chinese Social Media Teaching Real-World Hate?
NY Times
The Chinese internet is rife with xenophobic hate speech towards various groups, including Japanese, Americans, Jews, Africans, and Chinese critics of the government. Despite China's sophisticated system of internet censorship, hate speech continues to flourish online. Some Chinese citizens are now questioning the role that online speech plays in inciting real-world violence, following a recent incident in which a Chinese man stabbed a Japanese mother and her son. The rise of nationalism in China under President Xi Jinping has exacerbated tensions and contributed to the spread of hate speech online.
https://www.nytimes.com/2024/07/04/business/china-hate-speech-xenophobia.html
Is India sending a message to ‘China’s show’ as Narendra Modi skips SCO summit?
South China Morning Post
Indian Prime Minister Narendra Modi will not attend the annual summit of the Shanghai Cooperation Organisation (SCO) in Kazakhstan, instead sending his foreign minister in his place. Modi's absence is seen as a signal that India is distancing itself from the SCO and its alignment with China and Russia. The move comes as India seeks to strike a delicate balance in its foreign policy, aligning more closely with the West and competing with Beijing for leadership of the Global South. Relations between India and China remain strained due to a long-standing border dispute.
https://www.scmp.com/news/china/diplomacy/article/3269029/india-sending-message-chinas-show-narendra-modi-skips-sco-summit?utm_source=rss_feed
Taiwan says China seizure of trawler may be psychological warfare
Japan Times
A top Taiwan security official has suggested that China's recent seizure of a Taiwanese trawler might be an act of psychological warfare. The trawler was seized for illegal fishing in Chinese waters near the Taiwan-controlled Kinmen islands. This incident comes amid increasing tensions between China and Taiwan.
https://www.japantimes.co.jp/news/2024/07/04/asia-pacific/politics/taiwan-china-psychological-warfare/
Singapore hooks Taiwan companies shunning China's investors
Nikkei Asia
Taiwanese companies are increasingly looking to Singapore for investment opportunities as tensions between China and Taiwan continue to rise. At least two Taiwanese business delegations visited Singapore in April, with the Taiwan Stock Exchange (TWSE) leading some of its most valuable companies, including Foxconn and Acer, to court investors in the city-state. The TWSE cited Singapore's political stability, strong rule of law, and efficient governance as key factors in attracting Taiwanese companies and investors. Singapore has become a hub for multinational corporations and family offices in Asia, with over 4,000 regional headquarters and 1,400 single-family offices based in the city-state. Taiwanese enterprises are keen to avoid political tensions with China while still attracting backing, and Singapore's appeal as a neutral venue hosting global investors has become increasingly significant. Taiwanese companies are also restricted from receiving Chinese investment in certain sectors, such as technology, making Singapore a more attractive option for fundraising and capital allocation.
https://asia.nikkei.com/Politics/International-relations/Taiwan-tensions/Singapore-hooks-Taiwan-companies-shunning-China-s-investors
China worker takes tipping to new level at noodle shop with a heart
South China Morning Post
A young construction worker in China has left a $28 tip in response to a sign at the door of a restaurant inviting people who are struggling to pay for their food to eat for free. The restaurant owner, Xu Yuliang, who has been offering free meals for three years, chased the worker, Zheng Liuzhuang, into the street to find him. After hearing what he had done, Zheng's employer awarded him a certificate of merit, calling him a "positive-energy model." Zheng returned the money to his employer.
https://www.scmp.com/news/people-culture/social-welfare/article/3266133/china-worker-takes-tipping-new-level-noodle-shop-heart?utm_source=rss_feed
BYD comes to Thailand and China stakes its rare earths claims
Financial Times
Chinese electric vehicle (EV) manufacturer BYD is opening a $486m factory in Thailand as new European Union (EU) tariffs on Chinese EVs come into effect. The factory, BYD's first in Southeast Asia, has an annual capacity of 150,000 units and will serve both the local market and export to neighbouring countries and Europe. However, industry insiders predict the factory will not reach full capacity in its first year due to low demand. Meanwhile, Amazon is looking to copy the direct-from-China discount model used by rivals Temu and Shein as it faces rising competition. The online giant aims to airship goods to US shoppers from warehouses in China, bypassing import tariffs through the de minimis rule, which allows Americans to receive packages valued at under $800 without incurring import taxes. Finally, Singapore's CapitaLand Investment plans to invest up to $110m in Vietnam to attract manufacturers looking to diversify their supply chains away from China.
https://www.ft.com/content/5725f4aa-799d-4e15-bd3c-0dc3fac051dd
Philippines demands China pay $1m over South China Sea clash in June
Nikkei Asia
The Philippines is demanding China pay $1m in reparations for property that was damaged when China Coast Guard personnel boarded a Philippine inflatable craft in June. The incident occurred on 17 June when Chinese Coast Guard personnel disrupted a routine resupply mission to an outpost on Second Thomas Shoal. The Philippine Navy is also considering charging China for the restructuring of the hand of a Navy serviceman who lost his thumb in the incident.
https://asia.nikkei.com/Politics/International-relations/South-China-Sea/Philippines-demands-China-pay-1m-over-South-China-Sea-clash-in-June
China economists forecast GDP growth slowdown to 5.1% in Q2
Nikkei Asia
Economists predict that China's GDP growth will slow in the coming months and years due to the country's property crisis and escalating trade tensions. A survey by Nikkei and Nikkei Quick News, which included 30 local experts, shows that the consensus forecast is for 5.1% year-on-year growth in China's GDP in April to June, which follows a strong 5.3% increase in the first quarter. The economists expect the quarter-on-quarter growth rate for the April to June period to slow to 0.8%. Economists cited stronger-than-expected investment and exports in the first quarter as the reason for upgrading their predictions for the full year. The average full-year GDP forecast increased by 0.2 of a percentage point from the previous survey to 4.9%, inching closer to the official government target of "around 5%". China's property sector is in a "protracted malaise", and the central government is uninterested in reversing this.
https://asia.nikkei.com/Economy/China-economists-forecast-GDP-growth-slowdown-to-5.1-in-Q2
China showcases AI prowess at Shanghai forum
Nikkei Asia
Chinese Premier Li Qiang has called for global collaboration to ensure the safety of artificial intelligence (AI) development. Speaking at the World Artificial Intelligence Conference in Shanghai, Li emphasised the need for countries to work together to ensure AI reliability, adding that AI's values should be "in line with the fundamental interests of mankind". Huawei, Alibaba and Tencent are among the companies showcasing AI products at the three-day event. Li added that China's core AI industry is worth over $68.7bn, placing it among the world's top AI players.
https://asia.nikkei.com/Business/China-tech/China-showcases-AI-prowess-at-Shanghai-forum
Putin touts ‘stabilizing’ force of China-Russia ties as Xi hails ‘lasting friendship’ at security summit
CNN
Russian President Vladimir Putin and Chinese President Xi Jinping have declared their countries' relations as the best they have ever been, as they met at the Shanghai Cooperation Organization (SCO) summit in Kazakhstan. The two leaders have deepened their ties since 2022 and have been strengthening their political, economic, and military links. China has become Russia's top trade partner and the two nations have continued to hold joint military exercises. Both countries are seen as trying to create an alternative world order that is no longer dominated by the West.
https://edition.cnn.com/2024/07/04/asia/putin-xi-russia-china-alignment-sco-astana-intl-hnk/index.html
Chinese Premier Li Qiang calls for nations to bridge ‘intelligence gap’ in AI
South China Morning Post
Chinese Premier Li on Thursday called for more inclusive development of artificial intelligence (AI), saying that many developing economies have been left behind and the “intelligence gap” needs to be bridged. Li said nations should work together to foster a “fair and open” environment for AI development so that more countries can benefit from the emerging technology. Li cited data suggesting that some 2.5 billion people in the world are still offline, and said many developing countries “have not really benefited from the development of artificial intelligence”.
https://www.scmp.com/news/china/diplomacy/article/3269127/chinese-premier-li-qiang-calls-nations-bridge-intelligence-gap-ai?utm_source=rss_feed
PwC names new China head amid Evergrande audit scrutiny
Nikkei Asia
PricewaterhouseCoopers (PwC) has appointed Daniel Li as its new China head as the firm faces investigations by financial regulators in mainland China and Hong Kong. Li, who has been with PwC for over 30 years, assumes the role of chairman of PwC China and Asia Pacific from 1 July, taking over from Raymund Chao who recently retired. PwC has been under scrutiny for its role as the auditor of troubled property company China Evergrande Group, which resulted in a record fine and potential office closures. Li becomes the first executive from mainland China to lead one of the Big Four accounting firms in China.
https://asia.nikkei.com/Business/Companies/PwC-names-new-China-head-amid-Evergrande-audit-scrutiny
EU mulls closing off duty exemption for cheap goods that helps Shein, Temu, AliExpress
South China Morning Post
The European Union is reportedly considering imposing import duties on cheap goods bought from online platforms outside the bloc, primarily targeting Chinese retailers such as Temu, AliExpress, and Shein. Currently, the EU has a duty-free threshold of €150 for online purchases, which has led to a surge in small-value imports from these platforms. The proposal aims to stem this flow and would apply to all non-EU e-commerce platforms. This move adds to the growing protectionism against Chinese companies as their cheaper goods threaten local producers. The US is also considering closing off or lowering its duty exemption for low-value personal packages.
https://www.scmp.com/tech/tech-war/article/3269103/eu-mulls-closing-duty-exemption-cheap-goods-helps-shein-temu-aliexpress?utm_source=rss_feed
More steps in visa measures to come after non-Chinese mainland permit for Hong Kong permanent residents: John Lee
South China Morning Post
Hong Kong's Chief Executive, John Lee Ka-chiu, announced that "more steps" in visa liberalisation measures are coming after Beijing's new five-year travel permit for the city's permanent residents holding foreign passports to enter mainland China. The new travel permit is seen as a "big policy breakthrough" and a second step in visa liberalisation after the fast-track application process for multiple-entry visas for foreign employees was introduced last October. The business community has called for seamless travel to other mainland cities for non-permanent residents as well.
https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3269102/more-visa-measures-expected-after-non-chinese-mainland-permit-hong-kong-permanent-residents-john-lee?utm_source=rss_feed
How China and Russia compete, and cooperate, in Central Asia
Japan Times
China is expanding its influence in Central Asia, a region that was once in Russia's sphere of influence. With Russia's current conflict in Ukraine and increasing dependence on China for supplies, China is moving quickly to assert its dominance in the region. This is evident as the leaders of Central Asian countries meet with the presidents of China and Russia in Astana, Kazakhstan this week.
https://www.japantimes.co.jp/news/2024/07/04/world/politics/china-russia-central-asia/
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