China expels former Bank of China chairman from Communist Party;U.S. lawmakers led by Senate Majority Leader Schumer arrive in China on first such visit since 2019
Ex-Army sergeant accused of trying to hand defense secrets to China; Chinese tourist missing while snorkelling found drowned in Malaysia
Welcome to this issue of The China Brief. Today is October 7, 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.
China expels former Bank of China chairman from Communist Party
Reuters
The former chairman of the state-owned Bank of China, Liu Liange, has been expelled from China's ruling Communist Party on grounds of illegal activities and accepting bribes, according to the Central Commission for Discipline Inspection (CCDI). Liu, who resigned from his position in mid-March, is accused of illegally granting loans, causing financial risks, and bringing prohibited publications into the country. The CCDI is responsible for tackling corruption in the Communist Party, and President Xi Jinping has made fighting corruption a key policy since taking office in 2012.
U.S. lawmakers led by Senate Majority Leader Schumer arrive in China on first such visit since 2019
Associated Press
A delegation of U.S. lawmakers led by Senate Majority Leader Chuck Schumer arrived in China on Saturday in the first congressional visit to the country since 2019. The visit comes amid a sharp deterioration in relations between the two countries and as Chinese and American officials try to lay the groundwork for a possible meeting between Presidents Joe Biden and Xi Jinping in November. The delegation of six senators, which includes three Democrats and three Republicans, landed in Shanghai in the mid-afternoon. Schumer’s office said he would focus on the need for reciprocity from China for U.S. business in trade and on maintaining American leadership in advanced technologies for national security. He also hopes to discuss human rights, fentanyl production, and China’s role in the international community, as well as areas for potential cooperation. A smooth visit could help pave the way for a Biden-Xi summit during the Asia-Pacific Economic Cooperation leaders meeting in San Francisco next month.
Ex-Army sergeant accused of trying to hand defense secrets to China
Washington Post
Former US Army sergeant Joseph Daniel Schmidt has been arrested for allegedly attempting to deliver defense secrets to China. Schmidt, who was active from 2015 to 2020, had access to top-secret and secret national security information. He is charged with one count of attempting to deliver national defense information and one count of retention of national defense information, both of which carry a maximum penalty of 10 years in prison and a $250,000 fine. Schmidt is accused of trying to hand over Army intelligence training and practices, Army computer access information, and classified information to China.
Chinese cross-border trips beat pre-COVID level during major holiday
Nikkei Asia
China experienced a surge in inbound and outbound trips during the Golden Week holiday, beating pre-pandemic levels but falling short of an earlier government estimate. The average number of daily passenger trips reached 1.477 million during the holiday, an 85.1% increase from 2019. However, this was lower than the government's earlier estimate of 1.58 million daily trips. Chinese tourists' rebound in international travel will benefit tourism-dependent businesses worldwide. Domestic trip spending during the holiday also exceeded pre-pandemic levels.
Chinese tourist missing while snorkelling found drowned in Malaysia
South China Morning Post
A Chinese tourist has been found dead after going missing while snorkelling at an island resort off the coast of Malaysia. The victim, identified as 25-year-old Lin Jun Yong, had been snorkelling with a friend when he disappeared. A search and rescue operation was launched, and his body was found the following day by a patrol boat. The friend had returned to the resort after failing to find the victim. It has been reported that the two were not wearing safety jackets while snorkelling.
Japan gets new celebrity manual to help stars avoid being ‘cancelled’ in China
South China Morning Post
A Japanese entertainment agency has released a manual to help Japanese celebrities navigate China's online minefields. It advises stars on what not to mention on social media and provides sensitive dates to avoid when making major announcements. The manual addresses issues such as the one-China principle, politics, history, territory and the Yasukuni Shrine. However, experts warn that the guide may not be enough to guard against all the taboos, which are often vague and expand over time. Chinese fans are now an influential force and can either grow their idols' influence or shred it with "cancel culture".
US fears Canada-India row over Sikh activist’s killing could upend strategy for countering China
Associated Press
The US is concerned that a dispute between Canada and India could disrupt the strategy towards the Indo-Pacific, aimed at neutralising China’s influence. Canada has accused India of involvement in the murder of a Sikh separatist in Vancouver. The US has privately urged India to cooperate with the investigation, but Indian Prime Minister Narendra Modi has ignored these calls. US officials are concerned that Modi may be trying to silence opposition figures abroad, a tactic used by Russia, Iran, Saudi Arabia, and North Korea.
China’s flagging economy gets a temporary boost as holiday travel returns to pre-pandemic levels
Associated Press
Tourism in China has rebounded to pre-pandemic levels during the recent eight-day national holiday, providing a temporary boost to the country's struggling economy. Tourism revenues reached approximately CNY 753 billion ($103 billion) during the holiday period, up 1.5% compared to 2019 and 130% compared to last year when pandemic restrictions were in place. Domestic tourism benefited from a slower recovery in international travel, as people chose to travel within the country. However, China's economy still faces challenges such as a real estate crisis and high youth unemployment.
Chinese startup's robo-waiters ready to take orders around the world
Nikkei Asia
Chinese startup Pudu Robotics plans to build two factories in China's Yangtze Delta area to meet growing demand for its robot waiters. The factories, set to open by 2025, will triple Pudu's current capacity, enabling it to produce around 150,000 units per year. Pudu has delivered around 70,000 robots so far, with more than 10,000 delivered since February 2022. Overseas clients account for around 80% of Pudu's sales and the company expects to exceed 100,000 units in the next few years.
China forex reserves fall to $3.115 trln in September
Reuters
China's foreign exchange reserves fell by $45 billion in September, more than expected, due to the rise of the US dollar against other major currencies. China's reserves now stand at $3.115 trillion, compared to the predicted $3.13 trillion. The value of China's gold reserves also fell from $135.22 billion at the end of August to $131.79 billion at the end of September.
Yao Ming says Chinese basketball needs ‘major operation’ to end pain of failure
South China Morning Post
Chinese Basketball Association President Yao Ming has accused China's players of being "slackers" after the men's team won the bronze medal at the Asian Games. Yao also apologised after the team failed to qualify for the Paris Olympics, and said that "major operation" was required to repair China's game. Yao said the country's basketball community should have "an open platform" to discuss their shortcomings, and warned others that the road ahead will be difficult.
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