Australian Journalist Cheng Lei Says China Jailed Her for Sharing Document; China’s state companies to spend US$547 million on share buy-backs
Baidu says AI chatbot Ernie now matches OpenAI’s GPT-4; 'Aggressive' Chinese fighter jets spook Canadian plane on U.N. mission
Welcome to this issue of The China Brief. Today is October 17, 2023. 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.
Australian Journalist Says China Jailed Her for Sharing Document
Bloomberg
Australian journalist Cheng Lei revealed in an interview with Sky News that she was jailed by China for sharing an official briefing document shortly before the government released it. Cheng said that she had been detained for breaking an embargo by a few minutes. She spent almost three years in a Chinese jail before being released last week.
Orban meets Xi in Beijing, attends Belt and Road Forum
Yahoo US
Hungarian Prime Minister Viktor Orban has met with Chinese leader Xi Jinping in Beijing. Orban wrote on Facebook: “Connectivity instead of decoupling: this is the Hungarian model. Our aim is to strengthen Hungarian-Chinese relations.” The two-day BRI forum will highlight the successes of China’s Belt and Road Initiative. Orban is the only leader from the EU to attend the summit.
'Aggressive' Chinese fighter jets spook Canadian plane on U.N. mission
Japan Times
A Canadian general has criticized the Chinese air force after an incident off the coast of China, in which a fighter jet reportedly cut off a Canadian patrol plane and dropped flares in its path. The Chinese fighters also flew within 5 meters of the Canadian plane. The general described the actions as unsafe and unprofessional, and expressed concern over the potential for loss of life.
Recent warming in U.S.-China ties will not last long
Nikkei Asia
The recent improvement in US-China relations does not mean that the fundamental rivalry between the two countries has changed, writes Ian Bremmer in Nikkei Asia. While there have been positive signs of increased communication between US and Chinese officials, there are no diplomatic breakthroughs on the horizon. Both countries face urgent domestic challenges that make it difficult for them to afford a great power confrontation. However, there are structural reasons why the US and China are unlikely to significantly improve their relations. Both Democrats and Republicans in the US consider China a threat, particularly in terms of technology policy. The US has expanded its export controls on dual-use products, including advanced semiconductors, preventing China from accessing the components necessary for AI development. Meanwhile, Chinese President Xi Jinping remains determined to push back against perceived efforts by the US and its allies to stunt China's growth and contain its rise. The risk of a confrontation between China and Taiwan is growing, particularly if Taiwan's next president is Vice President Lai Ching-te of the Democratic Progressive Party.
China’s state companies to spend US$547 million on share buy-backs
South China Morning Post
Six Chinese state-owned companies, including Baoshan Iron and Steel and China Three Gorges Renewables, have unveiled stock repurchase plans worth around CNY4bn ($547m). These buy-back plans are part of the government's efforts to stabilise China's equity markets, which have been struggling recently. The state buying of Chinese stocks is expected to drive a year-end rebound, according to Goldman Sachs.
Here are the key leaders joining the Belt and Road forum and their wish lists to Beijing
Associated Press
China is hosting its third international forum centered around President Xi Jinping's Belt and Road Initiative (BRI). The forum brings together at least 20 heads of state and government, mostly from developing markets in Southeast and South Asia, the Middle East, Africa, and Latin America. Key leaders attending the forum include Russian President Vladimir Putin, Sri Lankan President Ranil Wickremesinghe, Kenyan President William Ruto, Indonesian President Joko Widodo, Hungarian Prime Minister Viktor Orban, and Argentine President Alberto Fernandez. The leaders will discuss their countries' involvement in BRI projects.
China Weight-Loss Drug Stocks Lose Shine on ‘Misleading’ Claims
Bloomberg
Shares of weight-loss drug companies in China have plunged after a company apologised for misleading investors on their connection to weight-loss treatments. Xingjiang Bai Hua Cun Pharma Tech saw its shares drop by the 10% limit after surging by the same magnitude over the past four sessions. Other companies that were expected to benefit from the main ingredient behind Novo Nordisk's diabetes drug also saw their shares drop. The global frenzy over weight-loss drugs had helped ignite a recent rally in Chinese stocks, but this warning from Bai Hua Cun could put a halt to the trade.
Hong Kong's family office push falls flat with global billionaires
Nikkei Asia
Hong Kong's efforts to attract family offices have had a lacklustre response from the ultra-rich, despite roadshows and changes to laws to exempt family office profits from tax. Industry insiders say the campaign is unoriginal and offers little fresh incentive to investors. Singapore, on the other hand, has attracted 1,100 family offices after launching its own push to attract the ultra-rich three years ago.
Baidu says AI chatbot Ernie now matches OpenAI’s GPT-4
South China Morning Post
Chinese internet search giant Baidu has introduced an updated version of its Ernie Bot, claiming it is as powerful as OpenAI's GPT-4. Baidu's co-founder and CEO, Robin Li Yanhong, showcased the bot's abilities in understanding complex questions, generating pictures, and handling basic arithmetic. Chinese tech giants have been developing their own AI products in the absence of foreign players. Baidu's Ernie Bot has surpassed OpenAI's GPT-3.5 in comprehension and even outperformed GPT-4 in some Chinese-language capabilities, according to the company. Baidu now has a user base of 45 million and 54,000 developers.
Putin arrives in China, his first trip outside former USSR over past year
Yahoo US
Russian President Vladimir Putin has arrived in Beijing to meet with Chinese leader Xi Jinping and participate in the Belt and Road forum. The talks between the two leaders are expected to cover a range of issues including trade, investment, and security. This is Putin's second trip abroad since an international arrest warrant was issued for him by the International Criminal Court in March. The purpose of the trip is to demonstrate trust and partnership between the two countries, despite the ongoing war in Ukraine.
China tightens curbs on foreign travel by bankers, state workers
Japan Times
Chinese civil servants and employees of state-linked enterprises are facing stricter restrictions and scrutiny on private travel abroad and their foreign connections. The measures, which have been implemented since 2021, include bans on overseas travel, tighter limits on trips' frequency and duration, onerous approval processes, and pre-departure confidentiality training. The increased scrutiny is part of Beijing's campaign against foreign influence and is not related to COVID-19. The measures apply to civil servants, employees of state-owned enterprises, and those in the public sector.
Hongkongers in UK fear long reach of Chinese government
The Guardian
Hong Kong pro-democracy activists living in the UK have reported feeling ignored and unprotected by the UK government. The activists, who were forced to leave Hong Kong due to the pro-democracy protests, have experienced a series of incidents involving Chinese activists, including physical attacks and threats. Many of them have had their personal information shared online and have been followed and monitored by individuals they suspect to be Chinese agents. They have also faced cyber-attacks and have had their social media accounts banned. The activists have reached out to the Home Office for support but have received no assistance. They fear abduction or assassination by Chinese agents and do not feel safe in the UK. They are calling on the UK government to do more to protect Hong Kong people living in the country.
Military deterrence alone will not dissuade China, experts warn
Japan Times
Analysts are warning that tensions between the US and China could result in open conflict unless diplomatic solutions are pursued. The failure of East Asian governments to be more proactive in pressing for diplomatic solutions is increasing the likelihood of conflict, according to experts. They argue that exacerbating the competition with Beijing and prioritising deterrence over engagement will not make the world safer. Responding to threats with threats traps both sides in a negative spiral that could lead to war, warns Gregory Kulacki, China project manager at the Union of Concerned Scientists.
Chinese Vice Premier to Address Top Business Executives at Forum
Bloomberg
Chinese Vice Premier He Lifeng will deliver a major speech at the third Belt and Road Forum, as China seeks to revitalise its flagship infrastructure project and support its slowing domestic economy. He is President Xi Jinping’s go-to person for the nation’s struggling property and financial sectors. The forum comes as China celebrates the 10th anniversary of the Belt and Road initiative, which has attracted $1tn of investment in its first decade. Concerns about debt sustainability have caused momentum to slow in recent years. He has held meetings with high-level foreign officials, including US Commerce Secretary Gina Raimondo and International Monetary Fund Managing Director Kristalina Georgieva.
Vladimir Putin to meet Xi Jinping in Beijing: Five things to know
Al Jazeera
Russian President Vladimir Putin has arrived in Beijing for bilateral talks with Chinese President Xi Jinping. The two leaders have developed a strong personal friendship over the years and have deepened ties between Russia and China. Putin's visit to China marks the first time this year that he has travelled to a country beyond the former Soviet Union. The visit is seen as important for Moscow in terms of legitimizing Russia in the international arena and creating a positive image of Putin. The friendship between Xi and Putin began in 2013 when they shared cake and vodka shots to celebrate Putin's birthday. Since then, they have become closer and have expressed admiration for each other. The relationship between China and Russia has also grown stronger, with China becoming Russia's second-largest trade partner outside Asia. The two countries have also collaborated on military technology and civilian nuclear plants. The talks between Putin and Xi are expected to cover a range of issues, including the conflict in Ukraine and the crisis in the Middle East.
Cash-strapped Chinese retailer Suning receives another bailout
Nikkei Asia
Chinese retail giant Suning.com is set to receive a CNY5bn ($685m) lifeline from state-backed Citic Trust and China Huarong Asset Management to help revive its struggling business. The funds will be invested in Suning over a 10-year period, with the initial tranche of funding being used to restructure and revitalise the company's logistics park projects. Suning has been battling a debt crisis after borrowing heavily to fund an acquisition spree. In 2020, the company reported a net loss of CNY3.9bn on revenue of CNY258.4bn.
Country Garden fights to avert default as US$15 million debt deadline looms
South China Morning Post
Chinese developer Country Garden Holdings is facing the possibility of its first-ever default on offshore debt as the grace period for a $15.4m payment comes to an end. The company missed an initial deadline for the dollar-bond coupon payment last month, triggering a 30-day grace period that ends between October 17 and 18. Country Garden has warned that it may not be able to service all of its offshore borrowings on time. The company has hired China International Capital Corp and Houlihan Lokey as its joint financial advisers, and Sidley Austin as its legal adviser, to evaluate its capital structure and liquidity.
Biden didn’t make Israeli-Palestinian talks a priority. Arab leaders say region now paying the price
Associated Press
The Biden administration's decision to deprioritize the Israeli-Palestinian conflict and adopt a policy of "quiet diplomacy" is facing criticism as violence between Israel and Hamas escalates. The administration has focused on more modest improvements in Palestinian living conditions and freedoms under Prime Minister Benjamin Netanyahu's government. However, the recent Hamas attack on Israel and Israel's heavy bombardment of Gaza has highlighted the risks of sidelining the conflict. Arab leaders have warned that the war could destabilize the entire Middle East, and there is concern that the conflict could spread. There are also fears that the violence will lead to an influx of Palestinian refugees into Egypt. Arab leaders have criticized the lack of international pressure on Netanyahu's government and the Palestinians to return to negotiations. Critics argue that ignoring the core issues of the conflict will not make them go away. However, supporters of the Biden administration's approach argue that brokering alliances between Israel and Arab countries could stabilize the region without the need for an Israeli-Palestinian peace accord.
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