China Stock Bulls Hit Reset Button After $1.5 Trillion Rout; Exclusive: The Significance of Bao Choy's Triumph
Messi mania grips Beijing as football superstar arrives in China for friendly; Canada official probing China election claim quits; OpenAI’s CEO Calls on China to Help Shape AI Safety Guidelines
Welcome to this issue of The China Brief. Today is June 10, 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.
The Significance of Bao Choy's Triumph
Hong Kong's highest court has reversed the conviction of journalist Bao Choy, who was previously accused of making false statements to access vehicle registration data for a documentary on the 2019 attack on pro-democracy protesters. Choy, who was seeking to identify the assailants involved in the violent Yuen Long district incident, was fined HK$6,000 in 2021. The Court of Final Appeal found that inferring she knowingly made false statements constituted a "substantial and grave injustice". This ruling is seen as significant for investigative journalism and freedom of the press.
Bao Choy's triumph in her final appeal challenges the claim that Hong Kong's rule of law is dead. Predictions of Hong Kong's downfall have proven wrong in the past, as evident in Fortune magazine's articles in 1995 and 2002. While there are concerns that the central government aims to dismantle Hong Kong's social foundations, the advantages of maintaining the "one country, two systems" framework are apparent. Beijing is vigilant about national security and opposition politics, leading to strict handling of landmark cases.
The Bao Choy case set a precedent in Hong Kong, marking the first use of unauthorized access to vehicle data to charge a journalist. Yet, her successful appeal demonstrates that Hong Kong's court system retains its independence to some degree and hasn't been fully politicized, except in particular national security cases.
Bao Choy's victory might signify Beijing's intent to preserve its image by showing leniency where possible. Individuals like Jimmy Lai face harsh sentences, but lesser political figures may receive lighter punishment.
The central government wouldn't want heavy sentences for nearly 50 people to damage its international reputation. With Hong Kong and China both working on image restoration, the severity of these sentences remains uncertain.
Messi mania grips Beijing as football superstar arrives in China for friendly
South China Morning Post
Argentina’s world-famous No 10, Lionel Messi, arrived in Beijing for the seventh time in his career to a warm welcome from hundreds of devoted fans. The national football team, which won the World Cup in December after a thrilling final encounter with France, will play its first match against Australia in three years on June 15. The Covid-19 pandemic led to a blanket ban on international sporting events and saw stadiums emptied and competitions cancelled across the world. The match between the two nations is a repeat of the Round of 16 encounter in the 2018 World Cup, where Argentina emerged as 2-1 winners. Messi himself will play in another friendly when Argentina takes on Indonesia in Jakarta on June 19. His arrival excited many on the Weibo social network, while fans among the crowds said they were still revelling in the emotions of the national team’s previous victory.
Canada official probing China election claim quits
BBC
David Johnston, the Canadian official appointed in March to investigate claims of Chinese election interference in 2019 and 2021, has resigned, citing criticism from opposition parties. Johnston was accused of bias due to his personal ties to Canadian Prime Minister Justin Trudeau, with whom he has a holiday home. Johnston recommended hearings rather than a public inquest into allegations of interference, which mostly stem from reports in Canadian media on leaked intelligence. China has repeatedly denied the claims, and has accused Canada of "slander and defamation" after the expulsion of a Chinese diplomat.
OpenAI’s CEO Calls on China to Help Shape AI Safety Guidelines
Bloomberg
OpenAI CEO, Sam Altman, has said that China has a crucial role to play in crafting AI regulation that will ensure the safety of transformative systems, in comments made during a Beijing conference on Saturday. Altman's company launched ChatGPT in China in 2020, sparking significant Chinese interest in the technology potential. As AI pushes forward, regulatory frameworks are coming under increasing scrutiny, with governments often diverging on oversight standards. With skills and investment accumulating in both China and Silicon Valley, leading thinkers like Altman believe collaborative efforts are needed.
China Stock Bulls Hit Reset Button After $1.5 Trillion Rout
Bloomberg
Goldman Sachs, Nomura Holdings and Morgan Stanley strategists have reduced their MSCI China Index targets for various periods by at least 11%, suggesting it will struggle to reclaim the high seen in January. The recalibration followed multiple data misses that cast a doubt over the economic recovery, US tensions and China's property market and poor stimulus measures. Even though Goldman Sachs and Morgan Stanley have kept their overweight recommendations, JPMorgan Asset Management and Invesco Asset Management are reluctant to invest despite attractive valuations. Meanwhile, Societe Generale SA's head of Asia equity strategy suggests that it's likely to see a rebound.
Sequoia China goes solo as US venture funds pull out of Chinese tech start-ups
South China Morning Post
Venture capital giant Sequoia Capital has separated its Chinese operation from its US parent to create HongShan, a move that has been described as “the beginning of the end” for intermediaries between the US and China. The development, a fresh sign of decoupling between the two economies, is part of a global restructuring by Sequoia that will also see it make its Indian and Southeast Asian operations independent under the name Peak XV Partners. Sequoia China was established in 2005 and quickly became China’s preeminent venture capitalist, backing the country’s top internet players, including Alibaba. It was the sole investor in the A-round funding of food delivery platform Meituan in 2010 providing $20m to founder Wang Xing and helping it win a brutal price war. Sequoia’s Chinese operation had around 42 managing directors, partners and senior executives, all Chinese, listed on its website.
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 www.6dobrief.com