Confrontation hangs in the air at BRICS summit after addresses by Putin, Xi; Wall Street’s China Dreams Slip Away
Water-logged northern China faces threat of more disasters; US commerce secretary meets China envoy before trip to stabilise ties
Welcome to this issue of The China Brief. Today is August 23, 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.
Confrontation hangs in the air at BRICS summit after addresses by Putin, Xi
The Sydney Morning Herald
Chinese President Xi Jinping did not attend a meeting in South Africa where he was expected to deliver a speech defending China's economy and its support for emerging markets, as concerns rise that China's struggles could cause global turbulence. Commerce Minister Wang Wentao read the speech on behalf of Xi, which emphasised the resilience and potential of the Chinese economy. The speech also criticised a "certain country" for attempting to cripple emerging markets and developing countries, which was seen as a reference to the US and the economic friction between the two powers.
Wall Street’s China Dreams Slip Away
WSJ
Major U.S. financial institutions, including BlackRock, are encountering challenges in their efforts to expand and prosper in the Chinese market. Despite initial optimism, BlackRock's attempt to establish a wholly owned mutual fund business in China has been lackluster, with the company ranking poorly among domestic mutual fund houses. Other Wall Street giants are also facing setbacks, as deal flow diminishes, local companies favor Chinese counterparts, and various economic and political factors erode foreign investors' interest in Chinese assets. The recent executive order by President Biden further compounds the difficulties. While China had initially eased ownership restrictions for U.S. institutions, the environment has become tougher, hindering the once-promising expansion plans. As a result, U.S. companies are witnessing revenue declines in their Chinese ventures, while local peers thrive. Cross-border business is also suffering due to diminishing foreign investor enthusiasm for Chinese stocks and bonds. The challenges stem from difficulties in competing with established local rivals and changing market dynamics. Despite initial positive projections, the Chinese market has proven more complex and less lucrative than anticipated for U.S. financial institutions.
Water-logged northern China faces threat of more disasters
Reuters
Authorities in northern China have warned that the risk of landslides and mudslides will remain high until early September. The warning comes following historic rains and floods in the province of Hebei, which have displaced thousands of people. The country is currently experiencing its main flooding period, with heavy rain, floods and typhoons saturating the soil in some mountainous areas. The Chinese government has pledged to assist local governments in evacuating and relocating people from at-risk areas.
US commerce secretary meets China envoy before trip to stabilise ties
Al Jazeera
US Commerce Secretary Gina Raimondo is set to visit Beijing and Shanghai next week for talks on economic issues and to cool tensions between the US and China. The visit comes as Washington seeks to stabilise relations, which have soured over a range of issues including national security, Ukraine, trade, and Taiwan. The US has imposed restrictions on Chinese trade and industry over alleged national security concerns, and earlier this month, President Joe Biden signed an executive order restricting US firms from investing in certain areas of China's tech sector. The Chinese embassy in Washington said Beijing's policy is based on "mutual respect, peaceful coexistence, and win-win cooperation."
Chinese tech could break barrier to crucial defence and aerospace material
South China Morning Post
Chinese company Changsheng Technology has developed a technology for mass-producing ultra-strong carbon fibre. The breakthrough could help China break international monopolies on supplying materials for the aerospace and defence industries. Carbon fibre is an essential strategic material used in various industries, including aerospace, defence, transport, new energy, and marine engineering. China had been largely blocked from carbon fibre production due to US and Japanese bans on exporting manufacturing equipment to the country. However, China has overcome many obstacles and its carbon fibre industry is expected to account for about one-third of global production by 2022.
China’s Huawei gains ground as market for mobile-network gear shrinks
South China Morning Post
The global market for radio access networks (RAN) experienced its fastest decline in almost seven years in the last quarter, according to a report from Dell'Oro Group. This decline is bad news for 5G equipment vendors, who are already struggling due to sluggish customer demand and economic conditions. The report suggests that the magnitude of the decline was "much steeper than anticipated" and predicts a full-year decline in global RAN revenues. Ericsson and Samsung both saw a decline in RAN market share, while Nokia recorded the largest revenue-share gain. Chinese vendor Huawei saw its quarterly share reach the highest level in three years. The poor performance in the quarter was attributed to "the clouds forming in North America" and the accumulation of extra inventory over the past couple of years. This data adds pressure on suppliers already struggling with stagnating sales and a weaker demand outlook.
China should stick to 'houses are for living, not for speculation' - state media
Reuters
China should continue to adhere to the principle that "houses are for living in, not for speculation" in order to avoid negative impacts on economic and social development, according to an editorial in the state-run Economic Daily. The editorial comes amid an economic downturn in the property sector, with the risk of default among some developers and a faltering economic recovery. The rising risk of default has led investors to expect more stimulus to revive the housing market, but they were disappointed when the People's Bank of China held the five-year loan prime rate steady. The housing sector's contribution to GDP growth is expected to be a drag of 1.5 percentage points this year, according to Goldman Sachs analysts.
IPO of chip firm Arm turns into tug of war for influence among tech giants
South China Morning Post
Clients of Arm Holdings are reportedly considering buying shares in the company's upcoming initial public offering (IPO) in order to expand their commercial relationship with Arm and prevent rivals from gaining an advantage. Arm's customers include Apple, Amazon.com, Intel, Nvidia, Google's parent company Alphabet, Microsoft, Samsung Electronics and TSMC. Arm's IPO, which will launch on the Nasdaq next month, is expected to value the company at up to $70bn.
China's Xian sends 'sweet love' messages to encourage babymaking
Reuters
Family planning authorities in the city of Xian, China have sent text messages to residents encouraging them to have children, in an effort to boost the country’s birthrate. The message was sent by the Health Commission and Family Planning Association of Xian, and coincided with the Qixi festival, a traditional holiday celebrating love and romance. The government is attempting to encourage young couples to have children as increasing numbers of women choose to delay starting a family or not have children at all. Many women cite the high cost of raising children, difficulties in continuing their career, gender discrimination, and a desire not to get married as reasons for not wanting children.
China’s government to increase green tech funding, extend global dominance
South China Morning Post
China's central government plans to allocate part of its budget to fund pilot projects featuring advanced green and low-carbon technologies. The aim is to support the country's 2060 carbon-neutral goal, boost the economy, and gain a competitive edge in the global green tech market. Pilot projects will focus on non-fossil energy usage, clean and efficient use of fossil energy, advanced power grids, energy storage, green hydrogen, decarbonisation in emissions-heavy industries, and advanced carbon capture and storage technologies. The government will fund qualified projects using budgetary finances and incentives. China already dominates the global green tech supply chain and aims to drive the development of a world-leading green tech industry by 2030.
China urges US to revoke visa curbs on officials over Tibetan 'assimilation' issue
Reuters
China's foreign ministry has urged the United States to revoke its decision to impose visa restrictions on Chinese officials over the treatment of Tibetan children at boarding schools. The ministry warned that if the decision is not reversed, China will respond with a "resolute and forceful" action.
'Chinese activist' makes 300-km jet ski ride to South Korea
Reuters
A Chinese man who rode a jet ski from China to South Korea was jailed several years ago for making fun of Chinese President Xi Jinping, according to South Korean activist Lee Dae-seon. The man, identified as Kwon Pyong, was detained by South Korea's Coast Guard on 16 August. Lee said he visited Kwon in a detention centre and that he appeared to be considering seeking refuge in a third country. The man's journey from China to South Korea reportedly took 14 hours.
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