Chinese defence industry exec Liu Weidong under investigation for alleged corruption
World’s biggest EV battery maker seeks blockbuster listing in Hong Kong；Will China and the US head into a full-blown trade war?
Welcome to this issue of The China Brief. Today is Feb 12, 2025. 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.
World’s biggest EV battery maker seeks blockbuster listing in Hong Kong
CNN
China's Contemporary Amperex Technology (CATL), the largest electric vehicle battery producer, has applied for a Hong Kong listing aiming to raise at least $5 billion. This follows a $6.7 billion IPO on China's Shenzhen exchange in 2022. CATL plans to use the funds for global expansion, including a plant in Hungary. The company faces geopolitical challenges, including tariffs and a recent Pentagon blacklist designation, which it claims will not significantly impact its business. CATL currently holds a 38% share of the global battery market, powering about one-third of EVs worldwide.
https://edition.cnn.com/2025/02/12/tech/hong-kong-catl-ipo-hnk-intl/index.html
Will China and the US head into a full-blown trade war?
Al Jazeera
Beijing has implemented retaliatory tariffs on nearly $14 billion worth of U.S. imports in response to Donald Trump's recent decision to impose a 10 percent tariff on hundreds of billions of dollars of Chinese goods. While this exchange of tariffs marks a significant escalation in trade tensions between the two countries, the situation remains relatively restrained, allowing for potential negotiations. Additionally, Trump has proposed shutting down the United States Agency for International Development (USAID) and has halted aid to South Africa, raising concerns about the weaponization of foreign aid.
https://www.aljazeera.com/program/counting-the-cost/2025/2/12/will-china-and-the-us-head-into-a-full-blown-trade-war
Chinese defence industry exec Liu Weidong under investigation for alleged corruption
South China Morning Post
Liu Weidong, the deputy general manager of China South Industries Group Corporation (CSGC), is under investigation by China’s Central Commission for Discipline Inspection (CCDI) for suspected violations of Communist Party discipline and law, likely related to corruption. CSGC is a major state-owned manufacturer of armaments for the People's Liberation Army (PLA) and has been recognized as a leading arms producer globally. Liu, who has a background in the automotive industry, was appointed to his current position in 2018 and has recently participated in corporate events. This investigation is part of a broader anti-corruption campaign within China's defense industry, which has resulted in numerous executives from state-owned defense firms facing scrutiny, as well as the downfall of several military generals and high-ranking officials since 2023. The CCDI has not disclosed specific allegations against Liu, amidst ongoing restructuring discussions at CSGC that may impact its financial situation.
https://www.scmp.com/news/china/military/article/3298417/chinese-defence-industry-exec-liu-weidong-under-investigation-alleged-corruption?utm_source=rss_feed
How Did DeepSeek Build Its A.I. With Less Money?
NY Times
Last month, U.S. financial markets experienced a decline after the Chinese start-up DeepSeek announced it had developed a powerful artificial intelligence system using significantly fewer computer chips than expected. While typical A.I. systems rely on supercomputers with over 16,000 specialized chips, DeepSeek managed to create its system with just about 2,000 chips, requiring only $6 million in computing power—much less than the approximately $60 million spent by Meta on its latest A.I. technology. DeepSeek's engineers utilized various technological innovations to achieve this reduced cost. The foundation of these A.I. technologies is built on neural networks, which require analyzing vast amounts of data, typically involving GPUs initially designed for video game graphics but also effective for A.I. computations.
https://www.nytimes.com/2025/02/12/technology/deepseek-ai-chip-costs.html
Baidu plans robotaxi service in Dubai as China’s tech giants expand across the Middle East
South China Morning Post
Baidu, China's internet search and AI giant, is considering expanding its robotaxi service, Apollo Go, to Dubai after receiving a license for autonomous vehicle testing in Hong Kong. Baidu CEO Robin Li discussed the future of autonomous driving at the World Government Summit in Dubai, promoting the safety of Apollo Go, which has already provided 8 million rides across 11 cities in China. This potential expansion aligns with a trend of Chinese tech companies entering the Middle Eastern market; for example, WeRide is partnering with Uber for a driverless service in Abu Dhabi, and Tencent Cloud recently launched its first Middle East Cloud Region in Saudi Arabia. Additionally, food delivery service Meituan is expanding its operations in the region.
https://www.scmp.com/tech/big-tech/article/3298365/baidu-plans-robotaxi-service-dubai-chinas-tech-giants-expand-across-middle-east?utm_source=rss_feed
China blockbuster Ne Zha 2 director Jiao Zi reveals spending 3 years living off parents
South China Morning Post
Jiao Zi, director of the successful animated film Ne Zha 2, shared his struggles of being unemployed for over three years, relying on his mother's small pension. He infused themes of parental love into the Ne Zha series, reflecting his gratitude for his family's support. Ne Zha 2 has grossed 14 billion yuan (US$2 billion), becoming a major hit since its release on January 29. Jiao Zi's journey began with self-learning animation while studying pharmacy, leading to the creation of his studio and the Ne Zha franchise, which resonates deeply with audiences through its portrayal of unconditional love.
https://www.scmp.com/news/people-culture/china-personalities/article/3298201/china-blockbuster-ne-zha-2-director-jiao-zi-reveals-spending-3-years-living-parents?utm_source=rss_feed
When Will China’s Leader Talk to Trump?
NY Times
The leaders of the United States and China, President Trump and Xi Jinping, are struggling to establish communication, with conflicting messages about their interactions. Trump initially stated they would talk within 24 hours but later claimed he was not in a rush to engage. He has also suggested they spoke since his inauguration, a claim contradicted by China’s foreign ministry. Xi appears to be avoiding immediate discussions, possibly to assert his strength in light of ongoing tariffs imposed by Trump. Analysts suggest Xi is strategically waiting to see what Trump offers before agreeing to a conversation, aiming to avoid appearing submissive, unlike other leaders who quickly negotiated with Trump following tariff threats.
https://www.nytimes.com/2025/02/12/world/asia/trump-xi-china-talks.html
DeepSeek founder Liang Wenfeng skips Paris AI summit as China champions its global role
South China Morning Post
Liang Wenfeng, the founder of DeepSeek, did not attend the two-day Artificial Intelligence Action Summit in Paris, despite being invited, as Chinese experts highlighted the country's significant contributions to the global AI industry. They credited China's advancements, particularly DeepSeek's open-source AI models, for fostering wider technology adoption. Turing Award winner Andrew Yao noted that DeepSeek's models enable low-cost AI system development, benefiting the global community. Major companies like Lenovo and Geely have started integrating these models into their products. However, experts cautioned about the rapid adoption of AI, emphasizing the importance of understanding and mitigating potential risks, with calls for international collaboration on AI safety governance. China has initiated a global AI governance initiative and aims for broader participation. The summit also saw the launch of the Sustainability AI Coalition, which includes both Chinese and US companies.
https://www.scmp.com/tech/big-tech/article/3298367/deepseek-founder-liang-wenfeng-skips-paris-ai-summit-china-champions-its-global-role?utm_source=rss_feed
US Treasury Secretary Bessent to visit Kyiv as Trump seeks Ukraine’s rare earths
South China Morning Post
US Treasury Secretary Scott Bessent plans to visit Ukraine to meet President Volodymyr Zelensky, marking the first visit by a member of Donald Trump's cabinet. The trip aims to negotiate access to Ukraine's critical mineral resources in exchange for US military support against Russia. Ukraine possesses significant reserves of rare earth elements, vital for technology, but many resources remain untapped due to ongoing conflict. Both nations seek a partnership to reduce reliance on China for these minerals. Discussions on future US aid and strategies to end the war will occur, alongside potential land trade proposals from Zelensky.
https://www.scmp.com/news/world/europe/article/3298354/us-treasury-secretary-bessent-visit-kyiv-trump-seeks-ukraines-rare-earths?utm_source=rss_feed
In the US-China battle for critical minerals, where will Australia stand?
South China Morning Post
Australian Prime Minister Anthony Albanese's recent trade discussions with US President Donald Trump have raised concerns in China, as Australia is rich in critical minerals important to both nations. While the US strengthens military ties through the Aukus partnership, China seeks to revive economic relations after previous tensions. Analysts caution Australia against conflating economic and security issues, fearing further deterioration of ties with China. Despite a decrease in Chinese investments, collaborations between Australian and Chinese companies are emerging, indicating a complex balance Australia must maintain amidst geopolitical pressures.
https://www.scmp.com/economy/china-economy/article/3298383/us-china-battle-critical-minerals-where-will-australia-stand?utm_source=rss_feed
Chinese tourists flock to Japan this Lunar New Year, drawn by snowy mountains and warming ties
South China Morning Post
Japan emerged as the top travel destination for Chinese tourists during the Lunar New Year, with reservations on Trip.com doubling compared to the previous year. This increase is attributed to the weakening yen and improved China-Japan relations, including recent diplomatic dialogues and eased visa regulations. Japan has extended multiple-entry visa durations from five to ten years and increased the maximum stay for tourist groups from 15 to 30 days. In 2024, inbound Chinese travelers to Japan reached almost 7 million, a significant rise, with spending led by Chinese tourists amounting to approximately 1.73 trillion yen (US$11 billion). Popular destinations included snowy areas and hot springs, particularly in Sapporo and Hokkaido, as many Chinese visitors sought winter sports experiences. While Thailand, South Korea, and other countries remain popular, travel to Thailand has declined due to safety concerns stemming from human trafficking incidents. Food continues to be a major travel motivation for Chinese tourists.
https://www.scmp.com/week-asia/lifestyle-culture/article/3298421/chinese-tourists-flock-japan-lunar-new-year-drawn-snowy-mountains-and-warming-ties?utm_source=rss_feed
OpenAI keen ‘to work with China’, CEO Sam Altman says, as DeepSeek rattles tech market
South China Morning Post
OpenAI's CEO Sam Altman expressed a desire to collaborate with China, marking a shift from the company's previous restrictions on access to its AI services in the country. Speaking at the Paris AI Action Summit, Altman highlighted the importance of working with China, despite uncertainties regarding U.S. government approval. This change follows the emergence of China's DeepSeek, which has developed powerful open-source AI models more efficiently than major tech firms. Altman's remarks also reflect a broader call for international collaboration on AI safety among global leaders, although OpenAI's services remain inaccessible in China and several other nations.
https://www.scmp.com/tech/big-tech/article/3298396/openai-keen-work-china-ceo-sam-altman-says-deepseek-rattles-tech-market?utm_source=rss_feed
US, UK decline to sign Paris AI summit declaration
Deutsche Welle
At a summit in Paris, France and India secured China's support for a joint declaration on artificial intelligence (AI), while the US and UK declined to sign. US Vice President JD Vance expressed concerns that excessive regulation could hinder the AI industry and emphasized the importance of keeping AI free from ideological bias. The UK cited a lack of clarity in the declaration regarding global governance and national security. French President Macron advocated for trustworthy AI but acknowledged the need for regulation. India is set to host the next summit on AI governance.
https://www.dw.com/en/us-uk-decline-to-sign-paris-ai-summit-declaration/a-71575536
Alibaba’s AI deal with Apple lifts Hong Kong shares by most in nearly 2 years
South China Morning Post
Alibaba Group's stock surged 8.5% in Hong Kong after announcing a partnership with Apple to develop AI features for iPhones, marking its best performance since March 2023. The collaboration aims to enhance Apple's AI capabilities in China, helping it compete with local rivals like Huawei. Analysts view this partnership as a validation of Alibaba's AI strengths and expect increased interest from other companies. Despite a 46% rise from January lows, Alibaba's stock remains over 60% below its October 2020 peak. The company will report earnings on February 20, with expected revenue growth of 6.6%.
https://www.scmp.com/business/china-business/article/3298343/alibabas-ai-deal-apple-lifts-hong-kong-shares-most-over-4-months?utm_source=rss_feed
Trump wants China to play a role in peace in Ukraine. Is Beijing willing to help?
CNN
As the war in Ukraine approaches its fourth year, former US President Donald Trump has expressed optimism that Chinese leader Xi Jinping can help broker peace between Russia and Ukraine. Speaking at the World Economic Forum in Davos, Trump highlighted China's potential influence over the conflict, despite recent tensions stemming from a 10% tariff on Chinese imports. Analysts note that while China seeks to maintain its partnership with Russia, it also has an interest in improving relations with the US, particularly given the stakes involved. The upcoming Munich Security Conference is expected to address the conflict, with US Vice President JD Vance meeting Ukrainian President Volodymyr Zelensky and Chinese Foreign Minister Wang Yi attending. Trump has questioned American support for Ukraine, suggesting a transactional approach that includes access to Ukraine's resources. While Zelensky is open to negotiations, any agreement would require continued Western support. Observers caution that any peace deal could leave Russia entrenched in occupied territories, potentially prolonging the conflict. The dynamics of US-China relations and the complex interplay of interests among Trump, Xi, and Putin will be crucial in shaping future negotiations.
https://edition.cnn.com/2025/02/12/china/china-trump-ukraine-war-putin-xi-jinping-intl-hnk/index.html
Modi Hopes a White House Visit Will Keep India Out of Trump’s Cross Hairs
NY Times
As Indian Prime Minister Narendra Modi prepares for his meeting with President Trump, he aims to maintain and strengthen the positive relations established during Trump's first term. Key issues on the agenda include trade, with discussions expected about increasing Indian purchases of American energy supplies and expanding defense spending on U.S. equipment. Modi will highlight India's recent tariff reductions on American products, such as high-end motorcycles, in an effort to address Trump's concerns over the trade deficit and high import duties. Additionally, Modi is expected to offer cooperation on illegal immigration, as India is the largest source of illegal migrants to the U.S. outside of Latin America.
https://www.nytimes.com/2025/02/12/world/asia/modi-trump-white-house-visit.html
China tops list of countries trying to silence exiled dissidents over past decade, study shows
Guardian
A recent report by Freedom House reveals that 25% of countries have engaged in transnational repression against political exiles over the past decade, with 1,219 incidents recorded from 2014 to 2024. China is the leading offender, responsible for 22% of incidents, followed by Russia, Turkey, and Egypt. High-profile cases include the assassination of journalist Jamal Khashoggi. Muslims, particularly Uyghurs, are disproportionately targeted. The report highlights that even democracies are not immune to these threats, with incidents reported in the US, UK, and other democratic nations, illustrating the global nature of repression.
https://www.theguardian.com/global-development/2025/feb/12/quarter-countries-exiled-dissidents-china-governments-transnational-repression
Hong Kong stocks hit 4-month high as DeepSeek-driven revaluation takes hold
South China Morning Post
Hong Kong stocks surged on Wednesday, with the Hang Seng Index rising 1.6% to its highest level in four months, driven by excitement over DeepSeek's AI developments. The Hang Seng Tech Index gained 1.2%, with Alibaba's shares jumping over 7% due to a partnership with Apple. Semiconductor Manufacturing International Corporation (SMIC) also saw a rise in its stock after reporting a 28% revenue increase. Mainland investors have significantly increased their purchases of Hong Kong stocks this year, contributing to the market rally. Other Asia-Pacific markets showed mixed results, with minor gains in Japan and South Korea.
https://www.scmp.com/business/china-business/article/3298307/hong-kong-stocks-hit-4-month-high-deepseek-driven-revaluation-takes-hold?utm_source=rss_feed
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