China’s solar panel industry seeks to curb ‘vicious competition’ with M&As and easy exits to control capacity as EU, US turn up heat
US jails 2 for life over Chinese new year execution-style killing of businessman;China’s high-dividend stocks in demand as falling bond yields, rate-cut hopes add to their lure
Welcome to this issue of The China Brief. Today is May 23, 2024. 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.
South China Morning Post
Leaders of China's solar cell industry are calling for more mergers, acquisitions and curbs on domestic competition to control capacity. Western countries are resisting Chinese exports due to industrial overcapacity. The China Photovoltaic Industry Association said the proposals emerged at a meeting it held due to falling prices and operational pressures. The association will push for creating price-index models and exploring more reasonable price-formation mechanisms at home and abroad.
US jails 2 for life over Chinese new year execution-style killing of businessman
South China Morning Post
Two men named Qing Ming Yu and Zhe Zhang have been sentenced to life in prison in the US following their roles in a murder-for-hire case in Flushing, New York. They were found guilty of murder-for-hire and murder-for-hire conspiracy, and were given life sentences by US District Judge Carol Bagley Amon. The murder-for-hire case involved a professional rivalry, millions of dollars' worth of property, and an after-hours karaoke party. The men hired a hitman to carry out the execution-style murder of Xin "Chris" Gu, who started a rival business to Yu's company.
China’s high-dividend stocks in demand as falling bond yields, rate-cut hopes add to their lure
South China Morning Post
Chinese government bonds have seen a record-breaking rally, resulting in yields falling below those of dividend-paying stocks. The CSI Dividend Index, which tracks the 100 companies with the highest dividend yields on the mainland’s exchanges, has risen 14% this year. This has prompted investors to seek out cash-rich companies’ shares as a haven amid uncertainty in the Chinese economy. The dividend index has consistently outperformed the main CSI 300 benchmark every year since 2021.
Hong Kong stocks slide as investors rattled by patchy earnings, hawkish US Fed minutes
South China Morning Post
Hong Kong stocks fell for the third consecutive day as investors reacted to weak corporate earnings and hawkish comments from US Federal Reserve officials. The Hang Seng Index dropped 1.9%, breaching the 19,000 floor. The Tech Index fell 2.1% and the Shanghai Composite Index weakened 0.9%. E-commerce giant Alibaba declined 4.2% and JD.com lost 1.9%. Other Asian markets also traded lower, with Australia’s S&P/ASX 200 dropping 0.7% and South Korea’s Kospi weakening 0.2%. Japan’s Nikkei 225 added 0.6%.
China sending ‘lethal aid’ to Russia, UK defence secretary says, in split with US
Guardian
China is sending "lethal aid" to Russia for use in its war against Ukraine, according to Britain's defence secretary, Grant Shapps. Shapps did not provide evidence to support his assertion, but he said there had been a 64% increase in trade between the two countries since the start of the Ukraine conflict and "they are covering each other's back". Joe Biden's national security adviser, Jake Sullivan, challenged Shapps's comments, stating that the US has not seen evidence of China directly providing weapons to Russia, although it is concerned about China's support of Russia's defence industrial base.
Japan, South Korea and China to hold first summit in four years
Japan Times
The leaders of South Korea, China, and Japan will hold their first trilateral summit in over four years in Seoul on Sunday and Monday. The three leaders will adopt a joint statement on various areas including the economy, science and technology, and people-to-people exchanges.
China has launched new drills encircling Taiwan. Why now?
CNN
China has launched military drills around Taiwan following the election and inauguration of the self-governing island's new President, Lai Ching-te, whose ruling party has championed democracy in the face of growing threats from its authoritarian superpower neighbour. The drills are being conducted in the Taiwan Strait as well as north, south and east of Taiwan, and in areas around Taiwan's outlying islands of Kinmen, Matsu, Wuqiu and Dongyin. In a statement, China's Eastern Theater Command of the Chinese People's Liberation Army said the exercises were "a strong punishment for the separatist acts of Taiwan independence forces and a serious warning against interference and provocation by external forces." Taiwan's Defense Ministry said in a statement that it had dispatched sea, air and ground forces to respond to China's drills, expressing regret at "such irrational provocations and actions that undermine regional peace and stability."
With Ukraine losing ground, allies debate how to squeeze cash for Kyiv out of frozen Russian assets
Associated Press
Finance officials from the Group of Seven (G7) rich democracies are discussing how to unlock Russian assets frozen in response to the invasion of Ukraine to support Kyiv's war efforts. The European officials are hesitant to confiscate the assets, citing legal and financial stability concerns, but a proposal to use the interest on the funds would only provide a small amount of money each year. US Treasury officials are suggesting a bond that would be repaid by future interest income, giving Ukraine immediate funding. The G7 ministers will meet with Ukrainian Finance Minister Sergii Marchenko on Saturday to discuss the issue.
South China Morning Post
China Evergrande New Energy Vehicle Group (Evergrande NEV) has been asked by local governments to return CNY1.9bn ($267.7m) of subsidies after the company failed to produce cars. Evergrande NEV entered into investment cooperation agreements with local authorities in 2019 and the governments now want to terminate these contracts and demand repayment. Evergrande NEV is in deep financial trouble, with total comprehensive loss for 2023 standing at CNY12.3bn and liabilities at CNY72.5bn. The company produced 1,700 cars and sold only 1,389 units last year.
Seven hours in Geneva hotel highlight U.S.-China struggle on AI
Japan Times
Top officials from the US and China recently met in Geneva to discuss their fears and concerns around artificial intelligence (AI). This marked the first government discussions on AI between the two countries, with both sides expressing a desire to prevent worst-case scenarios involving AI, such as a computer-triggered nuclear war. However, the coffee machine at the venue broke down during the talks, highlighting the irony of discussing advanced technology while dealing with a basic mechanical issue.
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