China’s video gaming watchdog speaks out after spending rules roil market; Woman whose mystery poisoning captivated China for decades dies
Premium on dual-listed Chinese firms’ shares at home seen widening; Furnace explosion at Chinese-owned nickel plant in Indonesia kills 13; BYD uses Shanghai mansion as a boutique to sell high-end cars
Welcome to this issue of The China Brief. Today is December 24, 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 video gaming watchdog speaks out after spending rules roil market
South China Morning Post
China's regulator has released draft rules aimed at promoting "healthy development" in the online gaming industry. The rules include provisions to protect minors and consumer rights, such as prohibiting games from forcing players to fight each other and offering rewards that encourage excessive play and spending. The regulator is seeking public comments on the draft until January 22. The announcement of the rules sent shockwaves through the gaming sector, with gaming-related stocks falling and Tencent's shares losing about HK$300 billion in value. The industry is still recovering from previous government crackdowns on gaming addiction and restrictions on game time for minors. The slow resumption of game licensing in China has also affected the release of new titles.
Furnace explosion at Chinese-owned nickel plant in Indonesia kills 13
Associated Press
An explosion at a Chinese-owned nickel plant on Indonesia’s Sulawesi island has killed at least 13 workers and injured dozens more. The incident is the latest in a series of deadly accidents at nickel smelting plants in Indonesia that are part of China’s Belt and Road Initiative. Nickel is a key component in global battery production for electric vehicles.
BYD uses Shanghai mansion as a boutique to sell high-end cars
Nikkei Asia
Chinese electric vehicle (EV) manufacturer BYD is launching a campaign for its premium Yangwang EVs, in a bid to tap into the growing class of wealthy Chinese consumers. The company is increasing the number of outlets specialising in the brand to over 90 nationwide by the end of the year. The Yangwang flagship store launched in Shanghai with only one car on display: the plug-in hybrid SUV Yangwang U8. The store is designed to build a new brand image and differentiate itself as an independent luxury brand. BYD plans to sell Yangwang cars mainly at dedicated stores.
Christmas spirit — and consumers — return to Shanghai
Financial Times
Christmas is making a comeback in Shanghai, China, after being virtually forgotten about due to the COVID-19 pandemic. Inflatable Santas, Christmas trees, and other decorations can now be seen across the city. The return of Christmas is seen as a positive sign for sentiment and a gauge of the government's approach. However, there is uncertainty over whether the decorations are officially endorsed or a spontaneous phenomenon. The revival of Christmas in Shanghai comes after a difficult year for international business in China and tensions with the US.
Woman whose mystery poisoning captivated China for decades dies
CNN
Zhu Ling, a woman who became incapacitated after being poisoned as a student in a high-profile cold case in China, has died at the age of 50. In 1994, Zhu was a second-year chemistry major at Tsinghua University when she began experiencing stomach pain and hair loss. These symptoms were found to be signs of thallium poisoning, which left Zhu blind and with the mental capacity of a six-year-old. Despite suspicion of foul play and a police investigation, no one has ever been charged. Zhu's case has sparked outrage and calls for justice and accountability in China.
China Earthquake Inflicts $75 Million Loss on Hardest-Hit Region
Bloomberg
China's recent 6.2-magnitude earthquake has caused an estimated economic loss of 532 million yuan ($74.6 million) for the northwestern province of Gansu, according to officials. The losses include 345 million yuan on animal husbandry and 102 million yuan on crop production. The earthquake has resulted in the death of 148 people and injured 781 as of Friday. Gansu, an underdeveloped province, is already facing financial challenges, and the earthquake is expected to further burden its finances.
Premium on dual-listed Chinese firms’ shares at home seen widening in 2024
South China Morning Post
Chinese companies listed on domestic exchanges are commanding higher valuations for their shares than their counterparts listed in Hong Kong. On average, yuan-based stocks are trading 51% higher than their Hong Kong-listed counterparts. This premium is expected to widen next year due to policy tailwinds. The Hong Kong stock market has been the worst performer among major world equity markets in 2018, with the Hang Seng Index losing 17%. Foreign investors have been selling Hong Kong stocks, with US$2.3bn sold in December alone.
Woman dies decades after unsolved China poisoning
BBC
Zhu Ling, a Chinese woman who was poisoned with the highly toxic chemical thallium in 1994, has died at the age of 50. Zhu Ling was a chemistry student at Beijing's Tsinghua University when she was poisoned, leaving her paralysed, almost blind, and with brain damage. No one has been charged in the case, although her classmate and roommate, Sun Wei, was investigated but not charged. Sun Wei has repeatedly claimed her innocence and changed her name. Zhu Ling's family and supporters have suggested that Sun Wei was envious of her beauty and achievements, but Sun Wei denies any personal animosity. A petition in 2013 demanded that the US investigate Sun Wei and have her deported from the US, where she was living at the time. The petition alleged that Sun Wei had the motive and access to the deadly chemical, and claimed that her family had powerful political connections. The White House responded to the petition by saying that Zhu Ling's poisoning was a tragedy, but did not comment on the request. The Beijing Public Security Bureau defended its investigation in 2013 but said that the amount of time that had passed and the limited evidence made it difficult to reopen the case.
Call for diplomacy with China reveals rift among Philippine business leaders
South China Morning Post
The Philippine business community is divided over President Ferdinand Marcos Jnr's handling of rising tensions in the South China Sea. Teresita Sy-Coson, head of the country's largest conglomerate, has spoken out against the government's increasingly aggressive approach, advocating instead for peaceful negotiations with China. Sy-Coson's concerns over the situation were expressed at a Christmas dinner earlier this month, at which she warned that tensions in the South China Sea could adversely affect the Philippines' business prospects. However, many top business executives and tycoons silently favour a closer military alliance with the US to ward off China's aggression.
How Russian and Chinese Interference Could Affect the 2024 Election
NY Times
The US government is bracing itself for intensified efforts by foreign adversaries to influence American voters in the upcoming 2024 presidential election. Russia, China, and Iran are among the countries expected to engage in these efforts. A recent intelligence report on the 2022 midterm elections provided insights into possible tactics. Russia is likely to focus on denigrating Democrats to weaken support for Ukraine, which it opposes. China, on the other hand, may seek to magnify social divisions in the US to portray the US model as chaotic. The extent of China's involvement remains uncertain, but experts warn about the potential use of artificial intelligence to create hyper-realistic fake videos for disinformation campaigns. Foreign countries are increasingly turning to influence campaigns as hacking voting systems has become more difficult.
Chinese carmakers overtake Japanese, European rivals in South African market
South China Morning Post
Chinese car brands are gaining ground in South Africa, with Haval and Chery selling more family SUVs than some Japanese, European and American brands, according to data from the Automotive Business Council. The analysis found that Haval's H6 was the country's top-selling SUV in the first 11 months of 2023, with 5,032 units, while the Chery Tiggo 8 Pro was in third place, with 2,195 units. Analysts said value for money was the key factor in the market shift towards Chinese cars, with Haval and Chery offering more features at slightly lower prices than their rivals.
Nio unveils ET9 executive sedan, its most expensive EV yet
South China Morning Post
Chinese electric vehicle (EV) maker Nio has unveiled a new pure electric model to take on hybrids by Mercedes-Benz and Porsche. The ET9, an executive sedan with a host of cutting-edge technologies Nio has developed, including high-performance automotive chips and a unique suspension system, will be priced at about $112,151, and is expected to be delivered to customers in Q1 2025. Nio's battery-swapping stations allow owners of its vehicles to exchange a spent battery pack for a fully charged one, and the company plans to build another 1,000 battery-swap stations in 2024.
How Taiwan’s disillusioned youth feel about a pivotal election
Financial Times
The upcoming Taiwanese presidential election has brought to the forefront concerns about the country's relationship with China. The ruling Democratic Progressive Party (DPP) candidate, Lai Ching-te, claims that the opposition Kuomintang party's plans for closer ties with China put Taiwan's sovereignty and democracy at risk. Meanwhile, the Kuomintang's Hou Yu-ih has suggested that a victory for Lai would drag Taiwan into war with China. The two parties' competing visions of the Taiwanese nation and a broader Chinese identity have become a matter of survival for Taiwan. Young voters are particularly disillusioned with politics and uncertain about how to handle China. The three main candidates are trying to appeal to this demographic. Surgeon-turned-politician Ko Wen-je of the Taiwan People's party has disrupted the race by offering an alternative to the familiar DPP and Kuomintang script. The younger generation is concerned about rising prices and salaries that cannot keep up. They are also worried about the country's lack of renewable energy, education system, and corruption. Many are uncertain about who to vote for and are considering voting for Ko or not voting at all.
Fashion retailer Shein leads the pack of Chinese tech IPOs to watch in 2024
South China Morning Post
Several Chinese technology start-ups are expected to pursue IPOs in 2024 or early 2025, with most of them planning to make their trading debut in Hong Kong. The most high-profile company in this group is e-commerce firm Shein, which is expected to go public in the next 12 to 18 months. Six mainland Chinese companies are on the list of firms expected to go public, while 153 US companies and 31 Indian firms are also planning an IPO.
No Christmas cheer for Hong Kong restaurants as patrons head across the border
South China Morning Post
Hong Kong restaurant owners are facing a bleak Christmas season, with slow reservations as customers appear to be making holiday plans across the border. The strong Hong Kong dollar is driving residents to neighbouring Shenzhen, where there are reportedly more attractive and higher-quality dining options. Restaurant owners are concerned that business will not improve during the holiday season and expect the same for New Year's Eve and Lunar New Year. The Immigration Department estimates that more than 9 million people will cross the border between Hong Kong and mainland China during the Christmas and New Year holidays.
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