China's Evergrande share plummet by more than 80%; Factory strikes flare up in China as economic woes deepen
China bombards Japan businesses with spam phone calls over Fukushima; China says will conduct joint military training with Singapore in coming weeks; US commerce secretary visits China
Welcome to this issue of The China Brief. Today is August 28, 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 bombards Japan businesses with spam phone calls over Fukushima
The Independent
Japan has summoned the Chinese ambassador to protest against harassing phone calls from Chinese numbers received by Japanese institutions and businesses. The calls were in response to Japan's decision to release treated radioactive water from the Fukushima nuclear plant into the Pacific Ocean. Stones were also thrown at a Japanese school in Qingdao and another school was pelted with eggs. China has called Japan's decision "selfish and irresponsible" and Hong Kong and Macau have banned imports of aquatic products from 10 Japanese regions. Japan has advised its citizens in China to take precautions and avoid demonstrations.
China says will conduct joint military training with Singapore in coming weeks
Reuters
China and Singapore will be conducting joint military training from the end of August to mid-September. The training will take place in Singapore and will cover a range of courses from close combat to hostage rescues. This joint training is part of their annual plans and is aimed at enhancing cooperation between the two armies.
US commerce secretary visits China, calls for ‘stable’ ties
Al Jazeera
US Commerce Secretary Gina Raimondo met with Chinese officials in Beijing as part of the Biden administration's efforts to stabilize relations between the two countries. Raimondo emphasized the importance of a stable economic relationship between the US and China, acknowledging that while there will be disagreements, progress can be made through direct, open, and practical communication. This visit follows other high-level meetings between US and Chinese officials this year, as both sides seek to improve relations after years of tension. The US has imposed restrictions on Chinese trade and industry, citing national security concerns, while China has accused the US of anti-globalization efforts aimed at impeding its economic growth.
European shares rise as fresh Chinese measures lift mood, tech stocks rally
Reuters
European shares opened higher on Monday, with technology stocks leading the gains. The pan-European STOXX 600 rose by 0.7% following its first weekly gain in four. Technology stocks were up 1.5%, tracking an overnight rally on Wall Street. China-exposed sectors such as automakers and industrials also saw gains after Beijing announced measures to aid its struggling stock market. Interest rate expectations in the euro zone remained subdued following European Central Bank President Christine Lagarde's speech at the Jackson Hole symposium.
South Korea to toughen punishments for technology leaks in chips, displays
Reuters
South Korea plans to toughen sentencing for the theft of industrial secrets, in an effort to combat technology leaks. The move comes amid concerns that current regulation is not strong enough to deter attempts to funnel technologies from companies such as Samsung. South Korea's Sentencing Commission, overseen by the Supreme Court of Korea, decided to increase punishments and lengthen jail times for leaking South Korean technology. The industry ministry did not specify which country it is targeting, but analysts believe that China is the suspected destination for most South Korean technology leaks. Details on the new sentencing guidelines will be released early next year.
Ukraine latest: Russia charges ex-employee of U.S. consulate with spying
Nikkei Asia
Russia's FSB security service has charged a former employee of the U.S. Consulate in the Russian Far East with collecting information on the war in Ukraine and other issues for Washington, state news agency TASS says. The man relayed information to U.S. embassy staffers in Moscow on how Russia's conscription campaign was impacting political discontent ahead of the 2024 presidential elections in Russia, TASS quoted the FSB as saying.
China's Evergrande share plummet by more than 80%
Deutsche Welle
Shares of Chinese property giant Evergrande plummeted by over 80% after trading resumed on Monday, following a 17-month suspension. The drop reflects the challenges faced by China's real estate sector as the country attempts to recover from the impact of the pandemic. Evergrande had its shares suspended by the Hong Kong stock exchange in March 2022 after it failed to publish its 2021 financial results. The company, which was once China's largest real estate firm, has over $300bn in liabilities and reported losses of CNY33bn ($4.53bn) for H1 2022. It has recently filed for bankruptcy protection in the US.
China-linked assets squeezed as slowdown ripples across markets
Reuters
Investors are increasingly nervous about the state of China's economy, as informal indicators, including current account surpluses, PMI surveys, and growth estimates, paint a gloomy picture. Many investors are pulling out of global assets exposed to the China slowdown, impacting stock markets around the world. The lack of a sustainable recovery in consumer spending, as well as a stagnant property market, has led analysts to predict that China will miss its 5% growth target this year.
Xi orders religious crackdown despite human rights abuse denial
The Sydney Morning Herald
Chinese President Xi Jinping has urged officials in Xinjiang to promote the assimilation of Muslims and crack down on illegal religious activities during a visit to the autonomous region. Over the past decade, Xi has increased China's control over the region, which is home to millions of Muslim Uyghurs, with heightened state surveillance and an expansion of a labor program that critics say amounts to forced labor. China denies any human rights abuses in Xinjiang. The visit marked Xi's first to the region since July 2022. Stability in Xinjiang is seen as crucial for economic development, Xi said.
U.S., China express support for better trade conditions
Nikkei Asia
U.S. Commerce Secretary Gina Raimondo and her Chinese counterpart, Commerce Minister Wang Wentao, expressed support for improving trade conditions during Raimondo's visit to Beijing. The visit is part of U.S. efforts to improve relations with China, which have been strained over issues such as technology, security, and human rights. Both sides expressed optimism about improving communication but did not announce any progress on these issues. China wants to revive foreign investor interest in the country to reverse its economic slump. Raimondo said that the two sides are working on establishing "new information exchanges" for "more consistent engagement." However, China has not indicated that it will change its trade, strategic, or market access policies that have caused friction with the U.S. and its Asian neighbors.
Chinese students frustrated by lengthy security checks as school year nears
CBC
Chinese international students studying at Canadian universities are complaining that their study permits are being delayed due to security screenings. Some students have been waiting for months after being admitted to universities, leaving them uncertain about their future and potentially causing them to miss opportunities to study in other countries. Experts believe that the worsening geopolitical situation between China and Canada and the increased use of algorithms may be contributing to the rise in delays. Some students are resorting to legal action to compel a government decision on their study permits.
Friends fear for health of Australian writer detained in China
Reuters
Friends of detained Australian writer Yang Hengjun, who has been on trial in Beijing on undisclosed national security charges, are expressing concern for his health as the verdict in his case continues to be delayed. Yang, an Australian citizen born in China, was arrested in 2019 and has denied working as a spy for Australia or the United States. The Australian Embassy in Beijing recently visited Yang and learned that he has a 10 cm cyst on his kidney that may require surgery. Yang's case, along with that of detained Australian journalist Cheng Lei, is being closely watched in Australia ahead of an anticipated visit by Prime Minister Anthony Albanese to Beijing this year. The Australian government has called for basic standards of justice and medical treatment for Yang and has consistently advocated for his release and reunion with his family.
Factory strikes flare up in China as economic woes deepen
Nikkei Asia
Worker protests and strikes have surged in China amid slowing demand and supply chain shifts, according to a report by China Labour Bulletin (CLB). The report counted 741 cases in the first half of this year, compared to just 830 for all of 2022. The manufacturing sector has become a significant driver behind the increase, with CLB finding 10 protests in the sector in January and a peak of 59 in May. Electronics and garment factory workers have been the hardest hit, with 66 protests at electronics factories and 38 at garment and apparel factories in the first six months, accounting for over half of all manufacturing sector protests. The decline in demand has hit China's exports, which fell 14.5% in July compared to the previous year. The report found a decline in orders was the main reason factory owners gave for idling or relocating factories.
Taiwan: Foxconn founder Terry Gou to run for president
Deutsche Welle
Terry Gou, the founder of electronics producer Foxconn, has announced his intention to run for president in Taiwan's 2024 election. Gou previously made a bid for the presidency in 2019 but withdrew after failing to win the nomination of the Kuomintang party. Gou, who stepped down as Foxconn chief in 2019, would need to collect 290,000 signatures to compete as an independent candidate in the January vote. Foxconn is a major contract producer of electronics and is one of Apple's largest suppliers.
Malaysia offers new incentives for Country Garden's $100 billion project
Reuters
Malaysia has announced plans to create a "special financial zone" in Chinese developer Country Garden's $100bn Forest City project. The project aims to house 700,000 people by 2035 and includes residential buildings, office towers, malls, and schools. The new incentives for Forest City include a special income tax rate of 15% for skilled workers and multiple entry visas. Country Garden has recently faced financial difficulties, with the company missing two dollar coupon payments totaling $22.5m earlier this month.
Heavy rains, floods inundate China; Hunan province sees record rain, thousands evacuated
Reuters
China is facing a series of torrential rain and flash floods as a result of heavy downpours. Over the weekend, more than 3,000 people were evacuated in Hunan province as a result of heavy rain. Sangzhi recorded the heaviest rainfall this year, with maximum precipitation reaching 256 mm overnight from Saturday to Sunday. China has been experiencing weeks of rain and floods, and the government has called for more precautions against flooding as Typhoon Saola makes its way across the South China Sea. There is uncertainty over the typhoon's path, but heavy rainfall is expected in coastal areas including Fujian and Zhejiang provinces.
‘Out here for a reason’: US forces eye Beijing’s South China Sea ‘aggression’
South China Morning Post
The commander of the US Navy’s Seventh Fleet, Vice-Admiral Karl Thomas, has called for China’s “aggressive behaviour” in the South China Sea to be challenged. Speaking in the wake of a Chinese coastguard ship using water cannon against a Philippine vessel, Thomas expressed his support for the Philippines in the face of “shared challenges” in the area. Thomas also expressed concern about China’s activities in the South China Sea, including the construction of militarised islands.
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