China identifies 2nd set of projects in $140bn spending plan; China’s anti-money-laundering drive entangles legit remittances from Singapore
Japan's Patriot-missile transfer to U.S. stuns Indo-Pacific watchers; China’s top 100 storied brands fall in value as weak economy dents demand
Welcome to this issue of The China Brief. Today is December 23, 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 identifies 2nd set of projects in $140bn spending plan
Nikkei Asia
China's National Development and Reform Commission (NDRC) has identified a second batch of public investment projects, including flood control and disaster relief programs, as part of the country's plan to boost the economy. The projects, with a planned investment of over 560 billion yuan ($79 billion), are part of the 1 trillion yuan ($140 billion) in additional government bond issuance planned for the fourth quarter. China's economy has been struggling to recover from the impact of COVID-19, with weak consumer demand, falling foreign investment, and a real estate crisis. The funds will be used to improve China's flood control system, emergency response mechanism, and disaster relief capabilities.
China’s anti-money-laundering drive entangles legit remittances from Singapore
South China Morning Post
Cash remittances from Singapore to China may have been mixed with "dirty" money, according to experts. Singapore authorities announced earlier this month that nonbank and non-card platforms could not be used for remittances to China for three months, after Chinese consumers in Singapore had their mainland accounts frozen by Beijing. Cross-border payment experts say that money remitters in Singapore may have been caught up in a money laundering crackdown by China. Criminals can use "money mules" to launder money by using individual bank accounts to make small deposits and transfers.
China’s top 100 storied brands fall in value as weak economy dents demand
South China Morning Post
China's top 100 storied brands, including liquor distillers and commercial banks, saw their value drop by 4.5% in 2023 due to weak consumer sentiment and a gloomy economic outlook. The intangible assets of the brands were valued at CNY9.43tn ($1.32tn) in 2023, compared to CNY9.87tn the previous year. Sluggish domestic demand has affected the consumer market, with total spending on fast-moving consumer goods falling 0.9% YoY in Q3 2023. However, the brands' long history will help them weather the economic turbulence, said Eric Han, a senior manager at advisory firm Suolei.
China’s back-door crypto traders look more important than ever to Binance’s future
South China Morning Post
Binance, the world's largest cryptocurrency exchange, has been forced to defend itself in various markets, including the US, Germany, Japan, Singapore, and the UK, as regulators tighten their grip on the industry. However, despite claiming not to officially operate in China, Binance maintains a significant presence in the country through a widely-used workaround, where users sign up from within mainland China and list their location as Taiwan. Binance's sizeable presence in China is a clear advantage over its rivals, with China-based customers accounting for a fifth of crypto traded on the platform in May, valued at $90bn. China remains a critical market for Binance, particularly as the regulatory landscape shifts worldwide.
Biden signs $886bn defense bill to boost Indo-Pacific deterrence
Nikkei Asia
U.S. President Joe Biden has signed an $886 billion defense policy package that includes measures to counter Chinese military activity in the Indo-Pacific region and support Taiwanese forces. The National Defense Authorization Act for the fiscal year to September 2024 allocates $14.7 billion for the Pacific Deterrence Initiative, which aims to enhance military capabilities through drills with regional allies and partner countries. The law also supports Taiwan's military by requiring U.S. cooperation on military cybersecurity activities and authorizes the sale of nuclear-powered submarines to Australia through the AUKUS trilateral partnership. The bill also allows the U.S. to continue assisting Ukraine in repelling the Russian invasion and provides a 5.2 percent pay raise for service members and civilian workers.
Chinese man charged with trying to steal from bags on Singapore flight
South China Morning Post
A Chinese national has been remanded in Singapore on charges of attempting to steal from passengers on a flight from Cambodia’s capital Phnom Penh to the city-state. Yi Huaichun, 44, is accused of trying to steal from three passengers while on Cambodia Airways flight KR751 from Phnom Penh on 15 December. He will return to court for a pre-trial conference in January. If convicted, he faces up to three years’ jail, a fine, or both. Another Chinese national was charged earlier this week with stealing around S$31,000 (US$23,260) from three passengers on a Singapore-bound Scoot flight from Vietnam.
Japan's Patriot-missile transfer to U.S. stuns Indo-Pacific watchers
Nikkei Asia
Japan's decision to ship Patriot missiles to the US to help backfill stocks of air-defense systems for Ukraine has surprised analysts focusing on Indo-Pacific affairs. Many have questioned the rationale of taking weapons out of the Indo-Pacific for a battle in Europe when the administration of US President Joe Biden has said all along that China is the pacing threat. The transfer of Patriots was a request from the US side. This suggests that the Biden administration has concluded that a Chinese invasion of Taiwan is not imminent.
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