China Detained Communist Party Newspaper Editor After Meeting With Japanese Diplomat Last Year; Exclusive Insight: Lu Shaye's statements may not simply be unintended gaffes
China Says Chatbots Must Toe the Party Line; At U.S. behest, Ukraine held off anniversary attacks on Russia; Chinese digital currency stocks surge amid new efforts to promote e-CNY
Welcome to this issue of The China Brief. Today is April 24, 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.
And here’s today’s exclusive insight:
Exclusive Insight: Lu Shaye's statements may not simply be unintended gaffes
One may ponder whether the commentary of Lu Shaye, the Chinese Ambassador to France, regarding the sovereignty of Crimea and the former Soviet republics stems from his personal whims or represents a new diplomatic frontier for China.
I am inclined to believe that although Lu Shaye may have made an impulsive remark, his statements serve as a purposeful challenge to the Western narrative on a broader scale. This is consistent with Beijing's recent confrontations with the leaders of the Philippines and South Korea, which are part of the same overarching strategy.
Lu Shaye's statements diverge from China's prior official position. The Chinese government has neither repudiated the sovereignty of the former Soviet republics following the dissolution of the USSR, nor acknowledged Russia's claim over Crimea.
The tumultuous situation arises from China's apparent decision to engage the United States on multiple diplomatic fronts. The extraordinary power Xi Jinping attained at the 20th National Congress illustrates how previously held international skepticism about his authority was misplaced.
Perceptions of China within the Global South may not necessarily coincide with the Western perspective. Although a small number of countries support Russia's incursion into Ukraine, a larger contingent decline to impose sanctions on Russia, much less supply Ukraine with arms and equipment.
While China does not lead the Global South, its audacity to challenge the United States echoes the skepticism felt in many developing countries towards the West. Lu Shaye’s assertions contravene the prevailing definition of international order. Nevertheless, for many individuals within the Global South, the Western-led international order is not immune to scrutiny, even if the dissenting voices are abrasive or seemingly ludicrous.
(The author of this article is Pin Po, an analyst for The China Brief.)
China Detained Communist Party Newspaper Editor After Meeting With Japanese Diplomat Last Year
WSJ
Chinese journalist Dong Yuyu, a senior editorial writer and editor at a Communist Party newspaper, has been charged with espionage and has been held in custody since February 2021. Dong's family have described the allegations as trumped up, and believe that the Chinese authorities are trying to silence intellectuals and deter them from meeting foreigners. More than 60 foreign academics and journalists have called on the Chinese government to "reconsider the harsh charges" against Dong.
Hillary Clinton: Republicans Are Playing Into the Hands of Putin and Xi
NY Times
The speaker of the House, Kevin McCarthy, is holding the US economy to ransom according to the former US secretary of state, Hillary Clinton. Republican congressmen who have refused to raise the federal government's debt ceiling during previous Democratic administrations are now requesting huge cuts to services such as education and healthcare in order to do so, putting the US and global economy in danger. Republicans must stop playing games with the debt ceiling as this undermines America's credibility and the pre-eminence of the dollar, Clinton says. Defaulting on debts could lead to a worldwide financial meltdown, would undermine American foreign policy, reinforce autocrats’ claims, and jeopardise the dollar's pre-eminent position in the global economy. Tensions with China are continuing to rise and Putin's recent aggression towards Ukraine mean the world is looking to the US for strong, steady leadership. Reuters recently reported that America's rising debt level over many decades is a longer-term risk to US power, leadership and influence on the world stage.
China Says Chatbots Must Toe the Party Line
NY Times
The Cyberspace Administration of China has introduced draft rules for generative artificial intelligence systems, like ChatGPT, to ensure they adhere to state and censorship regulations. The text AI sector has become more valuable and more competitive since ChatGPT sparked a wave of interest in the technology. China is now attempting to establish rules governing chatbot use, ahead of governments around the world. Analysts believe that it will be impossible for developers to comply with China's stringent censorship rules, and some chatbots have already been shut down. Other tech sectors targeted for regulation include data ownership, use of underlying data and content, and facial recognition technology. The establishment of the new National Data Bureau will improve state capacity to define and control data ownership rights. However, critics say that the new AI sector regulations risk undermining China's competitiveness at a time when it is facing increasing pressure from rising competition and sanctions on semiconductors.
The True Cost of a $12 T-Shirt
NY Times
The apparel industry is at risk of rampant exploitation with underpaid and mistreated workers being forced to pay "exorbitant recruitment fees" to unscrupulous recruiters exacerbating the situation. The industry's current purchasing habits, with the emphasis on fast fashion for those who are "progressive and skeptical of received wisdom", appear to be at odds with a marked concern among millennials, who represent the best hope for change, for moral consumption, transparency and true working conditions at suppliers. To turn the tide, companies must invest in listening to and responding to workers themselves while consumers must ignore the superficial "greenwashing" that is rife and look for companies which are transparent and which have signed up to responsible recruitment. No workers should be paying entering into broker positions for them to acquire a job, which is the first pledge of the Commitment to Responsible Recruitment which corporate apparel and footwear companies must sign. The second pledge of the Commitment is that migrant workers must have full and engaged access to information in their native language about their terms of employment."
‘Mott Street’ Chronicles 4 Generations of Chinese American Life
NY Times
"Mott Street: A Chinese American Family's Story of Exclusion and Homecoming," by Ava Chin is a memoir that tells the story of Chin's family's history, with a particular focus on their life of exclusion in America. The memoir examines four generations of the family's Chinese-American experience, exploring the perilous journeys to America, the racism that forced Chinese immigrants into menial jobs, and the Chinese exclusion laws. The book also scrutinizes the rise of urban tongs and examines the politic of America that have historically hurt or helped Chinese Americans. Chin's family has a long and prosperous connection with Mott Street, which is generally considered to be the main street of New York's Chinatown. Many members of both sides of her family were born, lived and died there. While the memoir is heavily peopled, Chin occasionally interrupts the story to provide lengthy commentary and to offer her own personal feelings, which can detract from the narrative. The memoir also delves into issues such as misogyny, racism, and discrimination.
University of Waterloo advises researchers they aren’t obligated to talk to CSIS agents
The Globe and Mail
The University of Waterloo has told its researchers that they do not have to talk to CSIS agents or give them access to faculty equipment if approached by the Canadian spy agency for information on joint research projects with foreign countries such as China. Guidelines sent to faculty and researchers from the University of Waterloo said they may be approached by CSIS agents who may have “questions about some of your activities” but that they “do not have a legal obligation to talk to a CSIS agent”.
China’s envoy to EU says relations shouldn’t be tied to Ukraine crisis
South China Morning Post
China's ambassador to the European Union has called for the EU’s relationship with China to be kept independent from the Ukraine conflict. In an interview with Chinese media, Fu Cong said that China and Europe should continue a dialogue as two major markets and strategic partners, and the current situation between China and Russia is a result of misconceptions and prejudices which have developed in the West. Fu added that Beijing’s policy considered China and Europe as “two major forces, two major markets” and that maintaining dialogue and cooperation is “of great significance to the world”.
At U.S. behest, Ukraine held off anniversary attacks on Russia
Washington Post
A new article published by the Washington Post reveals that in February, the head of Ukraine’s military intelligence directorate, Major General Kyrylo Budanov, instructed one of his officers “to get ready for mass strikes on 24 February … with everything the HUR had,” said to be the day of the first anniversary of Russia’s invasion of Ukraine. The article continues to state that officials were “actively monitoring the Ukrainians’ plans” and citing privately-leaked information that “mysterious explosions and drone strikes continue to happen in Russia…” Although the Ukrainians did appear to have held fire for 24 February, a week after the anniversary, Moscow accused Kiev of attempting drone strikes on infrastructure in Russia, including near the capital.
EU leaders will discuss China relation during June summit
Reuters
EU leaders will discuss the bloc's future relations with China during their next summit in June, according to EU Council President Charles Michel. The foreign affairs ministers of the EU have expressed concern over recent remarks made by China's ambassador to France, who questioned the sovereignty of former Soviet states such as Ukraine. Michel said that foreign affairs ministers would prepare for the discussion under the leadership of the High Representative Josep Borrell.
DeSantis meets with Japanese leader in first stop of international trip
Washington Post
Florida Governor Ron DeSantis met with Japanese Prime Minister Fumio Kishida during a trip to Japan, South Korea, Israel and the United Kingdom as part of an international trade mission with Enterprise Florida. However, political commentators say that the trip is part of a larger effort by DeSantis to bolster his foreign policy credentials ahead of a potential presidential bid in 2024. During his meeting with Kishida, DeSantis discussed the importance of the US-Japan alliance as well as Japan's economic and defence relationships with the US.
China plans to send probe to near-Earth asteroid around 2025
Reuters
China plans to send an uncrewed probe to millimeter-wide spacecraft to collect samples from an asteroid about 300ft across in 2025. After collecting the samples from the asteroid it will continue its journey to explore a nearby comet. If the mission is successful, it will be China's first samples collected from interplanetary space. The chief goal of the Tianwen-2 mission is to send a probe to the asteroid 2016HO3 to retrieve samples, and a spacecraft will be sent to fly around and land on the asteroid to collect the samples. Once samples have been collected, China will be the third country, after NASA and the Japan Aerospace Exploration Agency (JAXA), to retrieve a sample of an asteroid. NASA's OSIRIS-REx spacecraft landed on the asteroid Bennu and retrieved a sample in 2020. JAXA's Hayabusa2 mission returned samples from the asteroid Ryugu in 2020.
China Stocks Post Biggest Two-Day Drop This Year on Geopolitics, Growth Woes
Bloomberg
Chinese stocks have slumped to their biggest two-day loss this year, as geopolitical tensions and an uneven economic recovery prompted investors to sell-off ahead of the Golden Week holiday. The CSI 300 declined by 1.2%, closing below a key technical level, after seeing a 2% dip on Friday. The Biden administration’s plans to limit investments in key areas of China’s economy contributed to the fall, as did concerns of a new round of Covid cases. Investors have become cautious amid these risks and less liquidity support from the central bank.
India and China Discuss Border Issue Ahead of Regional Meeting
Bloomberg
Indian and Chinese military commanders have held talks in a bid to resolve longstanding border disputes, ahead of a planned meeting of their defence ministers at the Shanghai Cooperation Organisation conference later this week. The two Asian neighbours have been locked in a bitter dispute since last summer, which has driven both sides to amass troops and military hardware along a 3,488km border. While India wants troops to pull back from friction points, Beijing wants them to return to their barracks, with the disputed areas to be discussed later. Previous negotiations have yielded only incremental progress.
Australia overhauls defence strategy to respond to China’s build-up
Financial Times
Australia is changing its defence strategy to prepare for the “rise of the missile age” and China’s military build-up in the Indo-Pacific region. A major strategic overhaul warns that China's military programme is now “the largest and most ambitious of any country since the end of the second world war”. The rise of “major power strategic competition” in the region, and America's response, leaves Australia in a different strategic position than in the past. Funding for the four-year scheme is likely to come at a cost of $12.7bn, with project cancellations and revisions accounting for a large portion of the money.
Philippines' Marcos to seek specifics from Biden on US defence commitment
Reuters
Philippine President Ferdinand Marcos Jr plans to ask US President Joe Biden for clarification on the extent of Washington's commitment to defend the Philippines under the 1951 Mutual Defence Treaty, as regional tensions continue to climb. The move comes amid concerns from the past two administrations that the US has not been specific enough about when it would defend an ally. Tensions have risen following a steady escalation of military forces by Beijing in the South China Sea, with artificial islands in the Spratly archipelago equipped with missile systems within range of the Philippines.
China’s Covid Drugmakers Surge Amid Concern Over New Virus Wave
Bloomberg
Shares of Chinese drugmakers surged on Monday amid growing concerns over a potential new wave of COVID-19 infections in the country. Concerns spread on social media despite official statistics showing that the daily infection tally and the number of visits to fever clinics have remained stable. The Chinese Centre for Disease Control and Prevention suggested people should be prepared for the arrival of new variants, however, with one expert advising that vulnerable groups should get a booster shot and citizens should stock up on drugs.
Defence strategy for Australia will be shaped by the potential for US-China conflict
Telegraph
Australia has warned of the potential for conflict as it focuses on long-range precision strike weapons and domestic production of guided weapons after releasing its keenly awaited Defence Strategic Review. The review found that the US is no longer the "unipolar leader of the Indo Pacific" and instead intense competition between the country and China will shape the region. There is a major focus on potential adversaries to Australia as well as on protecting trade routes and communications. Domestic production of weapons will be established and the Australian Government will work more closely with the US and Japan, among others, to strengthen regional defence co-operation.
China to test out 3D printing technology on moon to build habitats
Reuters
China is exploring the possibility of using 3D printing technology to construct buildings on the moon as it finalizes plans for long-term lunar habitation. China's Chang'e 8 probe will conduct on-site investigations of the environment and mineral composition, and also determine whether technologies such as 3D printing can be deployed on the lunar surface. China wants to start building a lunar base using soil from the moon in five years. This comes as the US intensifies efforts to return to the moon, with NASA recently naming four astronauts for the Artemis II mission, planned for late 2024.
Taiwan Defense Stocks Emerge as Hot Trade on Tension With China
Bloomberg
Small-cap defense stocks in Taiwan are gaining popularity among retail investors due to the rising tensions between the island and China. Aviation parts makers Chenfull Precision and Aero Win Technology have surged 65% and 37% respectively over the past month, compared with a 1.8% drop in the Taiwanese benchmark index and one of 0.8% tracking defense firms across Asia. Thunder Tiger, which makes unmanned vehicle systems, and ceramics producer for bulletproof materials Hocheng have climbed more than 23% during the same period.
China Bond Selloff Eased in March as Global Volatility Spiked
Bloomberg
Foreign interest in Chinese bonds picked up for the first time in 13 months last month in light of concerns over the global banking system. In March, total foreign ownership of Chinese domestic debt in the country's interbank market rose by CNY 3.5bn ($507m) to CNY 3.2tn, reflecting a brighter outlook for the yuan and China's economy. Despite the marginal increase, ongoing unattractive yields mean the overall outlook for foreign investment into Chinese sovereign debt remains muted.
Australia buying more missiles to counter China
BBC
Australia will purchase longer-range missiles to counter increased regional tension amid China's growing military might, the largest overhaul of Australian defence since World War II, according to the 110-page Defence Strategic Review. The report also warns that Australia cannot be protected by geographic isolation in the 'missile age.' The government will spend around $12bn on delivering the report's immediate recommendations, which include increased focus on longer-range strike capability, giving the ADF greater operating ability from northern bases, and boosting Australia's anti-ship missile capacities.
Chinese digital currency stocks surge amid new efforts to promote e-CNY
Reuters
Chinese stocks linked to digital currencies jumped on Monday as multiple measures are enacted to promote the use of China's CBDC, the digital yuan. From 1 May, civil servants and state sector employees will receive salary payments in digital yuan in a trial initially introduced in Changshu, a city located in the Jiangsu province. Other digital-related stocks to see rises included Newland Digital Technology and Chutian Dragon. The digital yuan is a central bank digital currency (CBDC) that is of particular interest to China as it would help maintain its control over the Renminbi and prevent capital flight.
Tesla readies export of Model Y to Canada from China: source
South China Morning Post
Tesla has begun production of a version of the Model Y that will be sold in Canada, marking the first time Tesla will ship cars to North America from China. The move aims to connect the company's largest and most cost-efficient factory in the world with North America, its largest market. The Model Y is Tesla's bestselling model globally. Customers in Canada could take delivery of the new version between May and July 2021. Tesla's Shanghai plant will use lithium-iron phosphate batteries for the Model Y version produced there for sale in China and for export to Europe and other markets.
US war games touch nerve in northern Philippine backwater
Financial Times
The US and Philippine armed forces have conducted their largest joint military drill in more than 30 years in exercises designed to strengthen military cooperation in the region in response to China's increased assertiveness with its South China Sea territorial claims. This year's drills are focused on the northern Philippines and will deal with contingencies based on the modern threat environment in the Indo-Asia-Pacific region, according to a US statement. The exercises are expected to conclude on Friday.
Chinese budget shopping app Temu opens in Europe amid rapid expansion
South China Morning Post
Chinese budget shopping app Temu, Pinduoduo’s international offshoot, has expanded into six European countries, marking a new phase of global growth. The app is now available in France, the Netherlands, Germany, Spain, Italy and the UK, after debuting in Australia, Canada and New Zealand earlier this year. Temu offers a selection of budget items, with some products costing less than $1, and has been downloaded 33 million times since its inception. The app's success has proved a rival to similar shopping platforms such as Chinese-founded fast fashion retailer Shein, which has 23 million active users.
China, Singapore to launch joint military drills as Beijing seeks to counter US
South China Morning Post
China and Singapore are set to hold their first combined military exercises since 2021, as Beijing bolsters its defence and security ties in Southeast Asia. The drill will take place with the deployment of a missile-carrying frigate and a minehunting ship by the Chinese navy. Both countries say the exercises are defensive in nature, but they come at a time of heightened tensions in the South China Sea, where regional disputes over ownership are often traversed by Western navies including US vessels conducting freedom of navigation operations.
DeSantis, an Enigma on Foreign Policy, Praises U.S.-Japan Ties in Tokyo
NY Times
Florida Governor Ron DeSantis, who is tipped to run for US President, has met with Japan's Prime Minister Fumio Kishida, saying he hopes the US will back Japan "every step of the way" in the context of rising challenges from China and North Korea. DeSantis applauded Japan's recent efforts to double its military spending, calling for more military investment from the US, and sought to establish new economic ties between Florida and Japan, the state's seventh-largest trading partner.
Analysis: China rebound buoys hopes for stronger-than-expected US, Europe earnings
Reuters
Chinese pent-up demand after COVID-19 restrictions will help to cushion quarterly results in large companies, investors say, raising hopes for a two-month winning streak. While the US and Europe appear to be heading for a corporate recession, LVMH’s upbeat comments about China have given investors hope. Despite concerns about tightening credit denting the global economy, investors claim there is “room for a positive earnings surprise”. Margin erosion may be offset by higher wages in Europe, which could support demand, according to a fund manager at Invesco.
Inside the race to break Putin’s grip on nuclear fuel
Telegraph
The UK, US, Canada, Japan and France have formed a partnership to reduce Russia's share of the world's nuclear exports. Russia's nuclear industry has so far escaped Western sanctions aimed at punishing President Putin for leading an invasion of Ukraine. Rosatom, the Russian state monopoly, remained untouched by western sanctions despite its key role in the takeover of the Zaporizhzhia nuclear power plant in eastern Ukraine. Experts have pointed to the dominant role Russia plays in nuclear supply chains from uranium supply to reactor construction, which complicates the matter. The White House has also warned of Moscow's capability to exert political and economic influence via its global nuclear network. The new partnership aims to become independent from Russia and help other countries do the same. It is expected to require time, resources and close collaboration.
HSBC Activist Investor Lobbies Shareholders Ahead of Meeting
Bloomberg
HSBC’s activist shareholder in Hong Kong, Ken Lui, has lobbied institutional investors to vote in favour of restructuring the bank’s operations at its AGM on 5 May. Lui, leader of the “Spin Off HSBC Asia Concern Group,” has hired Alliance Advisors to identify and contact HSBC investors. The meeting will determine investor support for improving dividends and seeking information on potentially restructuring the bank’s Asian division, adding pressure to HSBC as its conflict with its largest shareholder Ping An continues to escalate. Ping An has publicly called for the creation of a separate list Asia business, and stated its support for the two proposed resolutions. These include devising and implementing a long-term and stable dividend policy and developing a strategy to increase value by making structural reforms to its operations in Asia. Institutional Shareholder Services and Glass, Lewis & Co have advised shareholders to vote against the proposals, stating the minimum dividend was too restrictive and disclosing the spin-off proposal’s potential capital and revenue losses was incomplete.
US-China Tensions Amplify Global Trade Shifts, Shipping CEO Says
Bloomberg
Lower container shipments between the US and China are being exacerbated by political tensions and an ongoing reshaping of global trade, according to Jeremy Nixon, CEO of Ocean Network Express. Nixon explained that many US firms were reducing the amount of imports they received from China, whilst the US was forging stronger ties with other trade partners, particularly in Europe. The decline has contributed to the US importing from other parts of the world. Nixon added that shipping flows from India, the Mediterranean and Southeast Asia into the US were also boosted.
FirstFT: US asks South Korea not to fill market gap if China bans Micron chips
Financial Times
The White House has requested South Korea ask its chipmakers to avoid selling to China if Beijing bans US-based Micron from selling chips, ahead of a state visit by President Yoon Suk Yeol to Washington. China is currently reviewing Micron for national security purposes, one of three major players in the Dram memory chip market. President Joe Biden’s efforts to stop China from sourcing or producing advanced semiconductors may have triggered this apparent retaliation by China, though it is unclear whether any action will be taken upon the probe’s conclusion. Beijing’s reaction will demonstrate whether it is willing to take coercive economic measures against major US companies.
China's new private pension scheme draws $2.9bn in contributions
Nikkei Asia
Contributions to China's private pension accounts have reached CNY20bn ($2.9bn) since November's launch, with the majority of the funds invested. However, around $6.5bn of the funds are sitting idle in people's accounts. The apparent hesitation to invest the remaining money suggests that some participants are unfamiliar with the system.
Investors weigh up best ETFs to profit from China’s reopening
Financial Times
China-focused ETFs have experienced massive inflows at the start of 2021 but these have since leveled off due to impeding questions about whether China is investible, despite recent economic recovery signs. Strategists and analysts remain divided over which options to favour, with thematics and sector-specific funds concentrated around mid-cap and tech stocks in mainland China benefitting from policy support, BNP Paribas' Jason Lui says. Meanwhile, some investors predict the broader the based rally expected in China's consumer confidence and spending will lead to onshore stocks - the strongest way to play a broad recovery.
As Yoon heads to U.S., Russia’s war puts focus on huge South Korean artillery stockpiles
Japan Times
South Korea is in possession of probably more than one million artillery shells, a stockpile that has been highlighted as South Korean President Yoon Suk-yeol heads to Washington for a state visit. North Korea's huge stockpile of artillery has apparently also attracted the attention of Russia, with speculation about what supplies President Vladimir Putin could sell to North Korea in response to South Korea supplying arms to Ukraine. Despite this, the South Korean government's potential policy change about supplying lethal aid under certain conditions could contribute to a door opening for South Korea defense exports.
Brazil’s Lula pitches ‘peace coalition’ for Ukraine, but he treads a thin line
CNN
Brazilian President Luiz Inácio Lula da Silva is calling for peace in Ukraine and positioning himself and Brazil as a possible mediator in the conflict. Lula aims to form a coalition of countries to intervene and lead efforts for peace in Ukraine, with the proposal of creating “a G20 for peace.” Lula has discussed the idea with leaders such as German Chancellor Olaf Scholtz but has yet to make his proposal persuasive, and one idea he has floated for a potential resolution has faced controversy. Lula’s proposal is also at risk of isolating Brazil from friends and trading partners in the West if he does not clarify his stance on Ukraine. As Lula continues his world tour of “Brazil is back,” he also faces a variety of challenges at home. A strategy of preserving Brazil’s tradition of nonalignment and charting an independent path from great global powers could be good for both him and Brazilians. The sanctions imposed on Russia by the US, Japan, and EU countries have severely disrupted global commerce and agriculture and Brazil’s economy, still reeling from a pandemic.
Vietnam's VinFast debuts budget EV as Chinese rivals jump in
Nikkei Asia
Vietnamese automaker VinFast has launched its cheapest electric vehicle, the VF 5 Plus SUV, in its bid to reach a broad range of consumers. Priced at $23,000, it is about one-third of the cost of the company's higher-end electric vehicles. Despite the increasing popularity of Chinese EV brands, motorbikes remain the dominant method of transportation in Vietnam.
Does China have a role to play in helping to end Sudan’s crisis?
South China Morning Post
China may have the potential to mediate the conflict in Sudan, but any compromise remains distant, according to analysts. Battles between rival Sudanese military factions in April have left 350 dead thus far. Last year, China helped Saudi Arabia and Iran secure a diplomatic agreement because of its relationship with both countries. China has good relations with Sudan, including its military links, however, analysts were sceptical about Beijing acting as mediator, stating the two sides must show willing to reach a compromise. The conflict, which is internal, is reflected in Sudan's natural resources, making a political solution complicated.
JD.com stock underperforms amid competition from Pinduoduo, ByteDance
South China Morning Post
Chinese online retailer JD.com has fallen 37% since the start of the year, despite a post-Covid shopping surge in China. JD.com is facing increasing competition from its rivals and has seen analysts such as Goldman Sachs Group and UBS Group cut their estimates. Additionally, slow and uneven recovery from the pandemic slump and weak demand for big-ticket items is causing challenges for the company. JD.com is struggling to compete on price wars and promotions with other companies, despite succeeding in value-added services and after-sales support.
4 reasons investors expect US dollar to keep sliding
South China Morning Post
Professional investors expect the dollar to fall in the coming months as the market underestimates the Federal Reserve's "easing cycle", according to a survey by Bloomberg. Some 87% of respondents expected the Fed to cut interest rates to 3% or less, with some predicting a cut this year, while only 40% believe the easing cycle will occur. The survey showed a 17-percentage-point gap between bears and bulls for the dollar.
China's cooperation with Europe 'unlimited' as with Russia - Chinese envoy
Reuters
China's envoy to the European Union, Fu Cong, said in an interview that China's cooperation with Europe is "endless" and its relationship with Russia is "unlimited", reassuring the EU of China's neutrality in the ongoing conflict in Ukraine. The interview was published after controversial remarks by China's ambassador to France who questioned the sovereignty of former Soviet states including Ukraine during an interview with French television. EU diplomats have criticised China's refusal to describe Russia's war on Ukraine as an invasion, but Fu rejected talk of China's prior knowledge of the conflict or its potential involvement.
Chinese Leaders Highlight Economic Risks as Recovery Takes Hold
Bloomberg
China's President Xi Jinping has highlighted the importance of more innovation and self-reliance in key areas such as technology to ensure China is protected against increased competition from the US amid signs of economic growth. Xi said during a meeting with senior Communist Party officials last week that growth of Chinese businesses depended on the removal of institutional barriers that stop fair competition. Some economists have recently revised their forecasts up to close to 6% or higher, well above the government's target of around 5%, which means "targeted support" will be needed in certain sectors.
South Korea restores Japan’s preferred trade status, aiding U.S. efforts
Japan Times
South Korea has added Japan to its list of preferred trading partners, signalling an attempt to mend diplomatic ties and support US efforts to create a global supply chain less reliant on China. The move will shorten the review period for approval of strategic goods heading to Japan from 15 days to five, while the number of required documents falls from five to three. The effort to fix their strained relationship follows a disagreement over wartime compensation, as well as concerns about the sharing of sensitive technology, and marks an important step forward for two Asian economies that play crucial roles in the global supply chain and have strong ties to the US.
Central bankers face stiff new challenges in fragmenting and fractious world
The Sydney Morning Herald
Central banks have been found wanting by events of the past three years, including the pandemic and geopolitical tensions between major world powers, which has led to a fragmentation of the global economy into competing blocks, says this analysis. This has seen banks diversify sourcing, a rise in "friendshoring" and "reshoring" and increased protectionism. Central banks are now faced with a host of new issues, many beyond their control, and for which monetary policy tools are quite crude instruments. Christine Lagarde, European Central Bank president, says fiscal policies must complement monetary policies to resolve supply constraints created by the new geopolitics.
Stay informed about the latest news, analysis, and policy briefs from across the globe related to China with the China brief. Our team aggregates, synthesizes, and summarizes the most important information from various sources, including media outlets, think tanks, government agencies, and industry experts.
Our mission is to provide you with easily accessible and critically valuable information tailored to your specific field of interest. We understand the significance of staying up-to-date on developments related to China and aim to make this information comprehensible for our readers.
Join the conversation and stay informed about the latest news and developments related to China by visiting our website at https://6do.world.