China’s memory chip efforts face stiff headwinds as foreign rivals race ahead on AI; China's Ukraine peace talks gambit shows shifts amid hard realities
Why ‘Barbie’ Became a Sleeper Hit in China; Philippines slams China for use of water cannon on boat
Welcome to this issue of The China Brief. Today is August 06, 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’s memory chip efforts face stiff headwinds as foreign rivals race ahead on AI
South China Morning Post
China's ambitions to become a leading memory-chip maker and reduce its reliance on imports are at risk due to US sanctions, according to analysts and industry insiders. Chinese chip makers Yangtze Memory Technologies Corporation (YMTC) and ChangXin Memory Technologies (CXMT) are struggling to catch up with international competitors in advanced memory chips due to export restrictions. This could hinder China's ability to develop large artificial intelligence (AI) models, as the country relies on US suppliers such as Nvidia for sanctions-compliant versions of graphics processing units (GPUs).
The China tech threat already here – and on our roads
Telegraph
China has become the world's biggest exporter of cars, overtaking Germany and Japan. The country exported 1.07 million cars in Q1 2023, with over a quarter of them being battery-electric vehicles (BEVs). China's dominance in the BEV market has been driven by its emergence as a powerhouse in the sector, supported by years of planning and state subsidies. It is estimated that the number of BEVs exported from China will reach 1.3 million in 2023. This is expected to have a significant impact on the European car manufacturing industry, with Chinese manufacturers set to offer cars at significantly lower prices than their European, Japanese, and American counterparts.
Analysis: China's Ukraine peace talks gambit shows shifts amid hard realities
Reuters
China's decision to join international talks in Saudi Arabia aimed at ending Russia's war in Ukraine does not signal a change in its support for Moscow, but rather reflects Beijing's need to be involved in credible peace initiatives. China has refused to condemn Russia's invasion of Ukraine and has offered its own peace plan, but knows that its plan is unlikely to be embraced by the West. China wants to be involved in non-Western-led peace initiatives and is seeking international cooperation while not accelerating any collapse in Russia.
North Korean leader Kim tours weapons factories and vows to boost war readiness in face of tensions
The Hill
North Korea's leader, Kim Jong Un, has visited the country's key weapons factories, including those producing artillery systems and ballistic missile launch vehicles. Kim pledged to speed up the development of North Korea's military readiness. The country is currently preparing for its next round of combined military exercises with South Korea and the US, which are planned for later this month. Tensions on the Korean Peninsula are at a high due to the pace of North Korea's missile tests and the military drills. Some experts believe Kim may be seeking military cooperation with Moscow.
HSBC’s exit from London’s Canary Wharf seen triggering home-price slide: agency
South China Morning Post
Property prices in London's Canary Wharf area, which is also known as the city's second financial district, could see further declines as a result of HSBC's decision to move its headquarters to the City of London in 2026, according to property agency London Central Portfolio (LCP). Prices in the area have already fallen by 3.2% over the past three years, compared to a 3.5% increase in central London, LCP said. The agency added that developers will need to reconsider their asking prices, particularly as rising interest rates and cost-of-living increases squeeze buyers' budgets and reduce demand. The Bank of England has raised interest rates 13 times since December 2021, taking financing costs to 5% from 0.1%. The latest average price in Canary Wharf is down 4% compared to the previous 12-month period, and 3% lower than in 2020. The area may also struggle to sell off new projects, creating opportunities for investors to pick up bulk purchases on new developments, LCP said.
Why ‘Barbie’ Became a Sleeper Hit in China
NY Times
Despite its limited availability, the feminist film "Barbie" has become a surprise hit in China. The film, directed by Greta Gerwig, has been widely discussed on Chinese social media, trending at one point on Weibo, the Chinese version of Twitter. On the movie rating site Douban, it has a rating of 8.3, higher than any other currently showing live-action feature. Despite earning less than "Mission Impossible," it has earned $28m in China, more than the latest "Indiana Jones". This success is in part due to the fact there are few movies about women's rights or women's independence, in China. However, the film has also faced criticism from some who believe it hasn't gone far enough in its portrayal of women's rights. Public awareness of women's rights is growing in China, despite censorship, and there is an increasing number of discussions about gender equality.
Philippines slams China for use of water cannon on boat
Deutsche Welle
The Philippines has accused China of using water cannons in an "excessive and offensive" manner to stop a Filipino supply boat from reaching a Philippine-occupied shoal in the disputed South China Sea. The Philippine Coast Guard condemned the actions of the Chinese coast guard, saying they violated international law and put the safety of the people on board at risk. China has claimed that its actions were lawful and that the Filipino boat was trespassing and carrying illegal construction material. Maritime disputes in the South China Sea are a regular occurrence and often lead to conflicts between China and its neighbors.
Safety row hits Chinese high-speed railway. How serious is the issue?
South China Morning Post
China Construction Eighth Engineering Division, a state-owned construction company, has been accused of cutting corners and compromising safety while building a high-speed rail bridge. The allegations, made by the state-owned Economic Information Daily, claim that the foundation pillars of the bridge were significantly shorter than the design length, raising concerns about the safety and reliability of China's high-speed rail. While some industry experts argue that shorter-than-design pile lengths are normal in engineering, others suggest that the allegations may be more about a bureaucratic dispute than a safety issue. The construction project is part of the Lai Rong high-speed railway in Shandong province and is an integral part of the province's high-speed railway network. The allegations are drawing national attention, as they involve a sector that China prides itself on—infrastructure development. The ongoing investigation will reveal the results and clarify the extent of the safety concerns.
China earthquake wrecks dozens of homes and injures more than 20
The Independent
A magnitude 5.5 earthquake struck Pingyuan county in Shandong province, China, on Sunday morning. The earthquake resulted in the collapse of at least 126 homes and left 21 people injured. The tremors were the most significant seismic activity the province has experienced in the past ten years. Tremors were felt in Beijing, Tianjin, Henan, and Hebei, causing residents to rush outdoors. The Beijing-Shanghai high-speed rail line experienced delays and suspensions due to the earthquake's impact on the region it passes through.
China raises emergency response level for floods in northeast
Reuters
Authorities in northeastern China have raised their emergency response level as tributaries of the Songhua river have risen to dangerous levels following heavy rain caused by Typhoon Doksuri. China's Ministry of Water Resources raised the response for flooding to Level III in Inner Mongolia, Jilin and Heilongjiang. Heilongjiang, known as China's "great northern granary", is among the areas suffering the aftermath of the typhoon, which has killed at least 20 people and displaced thousands. The government has allocated an additional CNY350m ($48.8m) to support rescue efforts and house repairs in the affected regions.
3 barriers to China’s hi-tech self-sufficiency quest – and 1 potential pay-off
South China Morning Post
China is looking to develop its own advanced technology as Western countries increase legal barriers in an attempt to limit China's access to global technology trade. China faces several challenges in achieving self-sufficiency, including a lack of investment, limited access to foreign expertise, and inefficiencies in its state sector. However, if China can overcome these barriers, it could lead to significant economic growth and market opportunities for Chinese companies. China is aiming to reduce its dependence on imported technology and become a global leader in sectors such as semiconductors and artificial intelligence.
Alarming photos show typhoon floods engulfing Asia
BBC
East Asia has been hit by storms causing heavy rain and strong winds, with China being particularly badly affected. In Beijing, the amount of rainfall in the past week has broken a 140-year-old record. At least 10 people have died and 18 are missing, with millions of people being evacuated. The floods have caused damage to roads, bridges and construction sites. The storms have also affected the Philippines, exacerbating seasonal monsoon rains and causing problems with flooding in Manila and its suburbs. India is also experiencing heavy rainfall, with floods and landslides killing nearly 100 people in the north in the first two weeks of July.
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