China’s Spy Agency Turns Focus to Finance in Quest for Security; China Wants to Build Advanced Humanoid Robots by 2025；China’s Party Cadres Banned From Private Equity Investments
China warms to U.S. chipmaker Micron, as tensions with Washington ease; How BRICS Became a Club That Others Want to Join
Welcome to this issue of The China Brief. Today is November 3, 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 Spy Agency Turns Focus to Finance in Quest for Security
Bloomberg
China's Ministry of State Security has pledged to help prevent financial sector risks from jeopardising national security. The ministry stated that state security organs should attach greater importance to preventing and defusing financial risks, and should actively participate in the development of national security systems in the economy and finance sectors. The statement emphasised that "financial security is an important component of national security". This comes as China's spy agency has taken on a higher profile since joining the popular WeChat social media app in the summer, posting frequently on its efforts to protect national security in a variety of areas.
China Wants to Build Advanced Humanoid Robots by 2025
Bloomberg
China aims to produce its first humanoid robots by 2025, according to a blueprint laid out by the Ministry of Industry and Information Technology. The government will nurture more young companies focused on the field, set industry standards, develop talent, and deepen international cooperation. China, the world’s No. 1 electronics manufacturer, targets breakthroughs in environment sensing, motion control, and machine-to-human interaction capabilities in the next two years. The government is encouraging the use of artificial intelligence in robotics and called for more research into the development of dexterous robot hands, arms, and feet.
China’s Party Cadres Banned From Private Equity Investments
Bloomberg
China's Communist Party has warned its cadres against investing in private equity (PE) due to concerns over corruption. The practice of investing in PE funds creates doubts about the integrity of officials and opens the door to abuse of power for personal gain, according to an article published by the Central Commission for Discipline Inspection. Officials were found to have set up PE funds after gaining key information on firms looking to go public, enabling them to profit from the firms' initial public offerings. The crackdown on corruption in the party has resulted in the downfall of more than 1.5 million government officials.
Elon Musk and Rishi Sunak chat China, killer robots and the meaning of life
South China Morning Post
Elon Musk has expressed his desire for China to align with the United States and the UK on artificial intelligence (AI) safety. Speaking at the AI Safety Summit in London, Musk welcomed China's participation in the event and stated that if the three countries were aligned on safety, it would be a positive development as they are the leaders in the field. Musk also discussed the need for physical "off-switches" for robots to prevent them from becoming dangerous, referencing science fiction films such as The Terminator. He described AI as "the most disruptive force in history" and speculated that it could make employment as we know it obsolete.
China’s Confucius Institutes are disappearing from U.S. campuses
Japan Times
A new report has found that almost all of the China-funded Confucius Institutes in the U.S. have closed. The institutes, which were created to promote Chinese language, were once seen as a cheap way for U.S. universities to offer Chinese classes. However, souring relations between Beijing and Washington have led to their closure. In 2019, there were 96 Confucius Institutes operating in 44 states, but now only five remain. The closure of the institutes reflects the increased tension between the U.S. and China in recent years, including export-controls, sanctions, tariffs, and diplomatic incidents.
Hong Kong Student Jailed for Comments Made in Japan, Local Media Says
Bloomberg
A Hong Kong court sentenced a student to prison because of pro-independence social media posts she made while studying abroad, local media reported.
West Kowloon Court on Friday handed a two-month prison term to the 23-year-old student over online comments calling for the city’s separation from China, Ming Pao reported. She pleaded guilty to sedition last month following her arrest in March after she returned to the city, according to the South China Morning Post .
What we learned from the Bletchley Park summit
Guardian
The Global AI Summit held in London this week saw the UK government call for international cooperation on regulating artificial intelligence (AI), with the US, China and other countries signing a declaration outlining shared principles for AI. The event was criticised for focusing on hypothetical risks rather than more immediate concerns, such as AI's impact on employment and insurance. The US Vice-President, Kamala Harris, unveiled an executive order on AI, which included plans for a new government body to regulate the technology, while Elon Musk called for more oversight of AI development.
China warms to U.S. chipmaker Micron, as tensions with Washington ease
Reuters
China's commerce minister, Wang Wentao, has indicated that Beijing would welcome Micron Technology expanding its presence in the Chinese market. The statement comes just months after China's cyberspace regulator accused Micron of failing a network security review, resulting in Chinese operators being barred from buying from the US semiconductor company. The recent thaw in tensions between the US and China has led to discussions about a meeting between US President Joe Biden and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit later this month.
China's wine market ready to welcome likely return of Aussie wine as ties improve
Reuters
The recent announcement that China will review the punitive tariffs on Australian wine has been welcomed by industry insiders. The tariffs, which were introduced in 2021, caused trade between the two countries to collapse. Australian winemakers are hopeful that the removal of the tariffs will allow them to re-enter the Chinese market, although they do not expect an immediate return to pre-tariff levels of business. Chinese consumers are said to still have a positive perception of Australian wine and will be eager to try it again once it becomes available.
How BRICS Became a Club That Others Want to Join
Bloomberg
The BRICS group of emerging market nations, which consists of Brazil, Russia, India, China, and South Africa, is expanding by inviting major energy producers such as Saudi Arabia, Iran, and the United Arab Emirates, among others, to join the club in 2024. The BRICS group was formed in 2001 to draw attention to the economies of Brazil, Russia, India, and China, and it has since established a multilateral lender, the New Development Bank, and a liquidity facility for emergencies. The expansion will enhance the group's economic clout and potentially challenge the US-dominated world, particularly in oil and gas trading. However, the BRICS countries have diverging interests and have struggled to agree on pressing global issues such as climate change. Trade between the existing members has surged in recent years, with natural resources and farm products from Brazil and Russia making them natural partners for Chinese demand. China's GDP has been more than twice the size of the four existing members combined, but India, with its population surpassing China's, has provided a counterweight. The expansion of the BRICS group is driven by China's desire to increase its global clout, with the backing of Russia and South Africa. However, India has expressed concerns that a larger BRICS group could become a mouthpiece for China, while Brazil is worried about alienating the West.
Biden will host Americas summit that focuses on supply chains, migration and new investment
Associated Press
President Joe Biden is hosting the Americas Partnership for Economic Prosperity Leaders’ Summit in Washington, D.C., to discuss supply chains and migration issues with leaders from countries across the Americas. The summit aims to shift more global supply chains to the Western Hemisphere and address the shared migration challenge. The focus on trade comes as competition intensifies between the US and China. The US has exported $1.2tn worth of goods and services to other countries in the Western Hemisphere in 2022, but the majority of that trade was with Canada and Mexico. Treasury Secretary Janet Yellen outlined the Biden administration’s goals of diversifying supply chains with trusted partners and allies in Latin America and the Caribbean. The Inter-American Development Bank, the largest multilateral lender to Latin America, would support new projects through grants, lending, and new programs.
China set for abrupt switch from warm to freezing weather in year of extremes
Yahoo US
Northern China is set to see temperatures plunge by as much as 20 degrees Celsius following an unusually warm autumn. A stream of cold air will combine with existing cold air to bring freezing conditions to the region next week, with daily maximum temperatures forecast to drop to single digits in most areas. This is an abrupt reversal of the recent “big warming” and is the latest in a series of unpredictable weather events to hit China this year, including typhoons and extreme flooding.
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