Exclusive: Wu Zhenglong, the new steward of the State Council of China, is untainted by the Bo Xilai and Sun Zhengcai scandals
US-China Meeting Only Worsens Tensions; Beijing Wants to Meet EU Leaders as US Ties Fray; Dollar funding for Chinese start-ups dries up; China plays catch-up to ChatGPT as hype builds around AI
Welcome to today's issue of "The China Brief." Tensions between the US and China continue to rise over the recent "spy balloon" incident, with talks between the two nations failing to lead to a compromise. China is looking to improve ties with Europe amid worsening relations with the US, and Chinese tech giants are racing to develop artificial intelligence that can compete with OpenAI's ChatGPT. Meanwhile, authorities in Hangzhou have dismissed suggestions of a new wave of Covid-19, and Hong Kong film director Johnnie To has been censored by Chinese social media after making comments about "fighting for freedom" at the Berlin Film Festival. Lastly, the World Meteorological Organization reports that around 1,000 weather balloons are released daily from 900 locations worldwide to provide vital data for weather forecasting and climate research.
And here’s today’s exclusive insight:
Exclusive: Wu Zhenglong, the new steward of the State Council of China, is untainted by the Bo Xilai and Sun Zhengcai scandals
Wu Zhenglong is a member of the current cabinet and serves as the Secretary-General of the State Council. He is from Nanjing, Jiangsu Province and shares a similar background with Ding Xuexiang, who was born in Nantong, Jiangsu Province. He has also worked alongside Li Qiang, who served as the party secretary of Jiangsu. In the past, Wu has held positions as the Secretary of the Nanjing Municipal Committee and the Governor of Jiangsu Province.
No matter how big the conflict between Ding and Li, Wu can communicate with both sides and coordinate the work of the State Council, serving as a great steward.
Looking closely at Wu's resume, he does have this ability. Wu was the secretary of Bao Xuding, also from Jiangsu, and followed Bao from the Ministry of Machinery Industry to the National Development and Reform Commission (formerly the State Planning Commission) and Chongqing. After Bao retired as Chongqing Mayor in 2002, Wu, who carried strong Bao imprints, not only remained unaffected in his career, but also rose steadily.
When Bo Xilai was the Secretary of Chongqing, Wu was a member of the Municipal Committee and the secretary of the Wanzhou District Committee. After Bo's downfall, Wu was also unaffected, rising to become the Secretary-General of the Chongqing Municipal Committee, serving under then-Secretary Sun Zhengcai. In 2014, Wu left Chongqing and, like most of the Xi Jinping camp, changed jobs every year or two, including crossing career paths with Li Qiang in Jiangsu as mentioned earlier.
Looking back at Wu's career, he has always been able to survive, be promoted, and be reused in the vortex. He has always been able to meet hot people at the right time and is always immune to the influence of unlucky people. Such talent can reconcile the conflicts between Li and Ding, and even between the Premier and several Vice Premiers, which is a piece of cake.
Interestingly, Li Qiang's hometown of Zhejiang, Ding Xuexiang's birthplace of Jiangsu and workplace of Shanghai, together were called "Wu" in ancient times. Will Li and Ding, two "Wu" prime ministers, prosper under Wu Zhenglong's assistance?
For those who are frustrated in the officialdom, instead of complaining about choosing the wrong people or not advancing in their careers, it would be more beneficial to study Wu Zhenglong's approach to navigating the political landscape.
Apart from Wu, several State Councilors have specific areas of responsibility.
At present, the remaining councilors include Wang Xiaohong, Minister of Public Security, Qin Gang, Minister of Foreign Affairs, Chen Yiqin, who recently stepped down as Secretary of the Guizhou Provincial Committee, and Li Shangfu, the new Minister of National Defense. Chen Yiqin is a minority womon who may be responsible for cultural and educational affairs, as well as women's organizations.
(Authored by Lao Zong, a special analysis expert for "The China Brief")
Bloomberg: US-China Meeting Only Worsens Tensions Over Balloon, Russia
The US and China held talks in Germany to ease tensions following the uproar over a Chinese balloon, but the meeting between their top diplomats revealed that it would be difficult to reach a compromise. Secretary of State Antony Blinken accused China of considering providing weapons to Russia for its war in Ukraine, which would exacerbate tensions further. The meeting also covered issues such as Taiwan, North Korea, and Russia. The talks did not lead to an agreement, and China refused to refer to them as a formal meeting. The tension between the two nations has prompted other leaders to warn about the military and economic spillovers of a prolonged clash between the world's two largest economies.
Bloomberg: Beijing Wants to Meet EU Leaders as US Ties Fray
China's top foreign policy official, Wang Yi, has urged the European Union to resist decoupling and help "bring bilateral exchanges back to pre-epidemic levels as soon as possible" during a meeting with EU counterpart Josep Borrell on the sidelines of the Munich Security Conference. This is a sign of China's efforts to improve ties with Europe amid worsening relations with the US. Wang has also been lobbying other countries to cooperate on technology, which could take on added urgency amid tensions with the US. Wang met with US Secretary of State Antony Blinken and Ukrainian Foreign Minister Dmytro Kuleba during the conference, and warned the US against helping Russia evade sanctions linked to the invasion of Ukraine.
FT: Dollar funding for Chinese start-ups dries up
The amount of dollar investments in Chinese startups fell by almost 75% last year. In 2022, 19% of the total capital put into Chinese startups were in dollars, compared to 39% in 2021, according to data from ITJuzi. The geopolitical tensions between China and the US and Beijing's tech crackdown and Covid-19 policy are factors that pushed foreign investors away from investing in Chinese startups. As a result, many fledgling technology companies decided to list at home rather than on Wall Street. The US is also working to create a screening process to reduce the flow of money from US investors to Chinese companies or sectors that help the People's Liberation Army, making it harder for foreign investors to return.
FT: China plays catch-up to ChatGPT as hype builds around AI
Chinese tech giants such as Baidu, Alibaba, and NetEase are racing to develop artificial intelligence (AI) that can compete with OpenAI’s ChatGPT, which generates text answers to questions from humans. Despite the Chinese AI market being disrupted by Covid-19 and regulatory attacks, Chinese tech firms are focusing on AI development in the hope of matching the recent buzz around ChatGPT. Baidu, for example, plans to launch a chatbot named Ernie, which is similar to Microsoft and OpenAI’s Bing Chat. Analysts caution that replicating ChatGPT could be difficult for Chinese groups due to a lack of high-quality Chinese-language text on the internet and expensive computing costs for training and running large language models.
Nikkei: Pressuring Xi Jinping risks create 'another Putin'
China's Communist Party has been forced to acknowledge its mistake in imposing an export ban on rare-earth metals to Japan in retaliation for Japan's arrest of a Chinese fishing boat captain in 2010. Japan responded to the ban by developing technology to reduce its dependence on China and procuring the materials from other countries, leading to a reduction in China's share of rare-earth metal mining from 90% to 60%. The ban also forced Japan to release the captain after the crew members had been acquitted.
The US has taken a tough line with China in recent years, imposing export controls on Chinese semiconductor companies, while President Xi Jinping has emphasized the need for China to hasten its "independence and self-reliance" in science and technology to address areas in which it is beholden to other countries. However, Xi is starting to worry about being overtaken by India and about China's declining population and national power.
While the international community must unite against China's attempts to alter the status quo through force, it is risky to corner China politically and economically, and the US is aware of this. Biden has said that the competition with China will be responsibly managed so that it does not veer into conflict. China must not be allowed to become another Putin.
SCMP: China doesn’t want ‘prolonged’ Ukraine war, top diplomat Wang Yi says as crisis nears 1-year mark
China's top diplomat, State Councillor Wang Yi, met with Ukrainian Foreign Minister Dmytro Kuleba on the sidelines of the Munich Security Conference on Sunday. Wang reiterated China's commitment to peace and dialogue and called for an avoidance of the escalation of the conflict between Ukraine and Russia. Kuleba expressed Ukraine's appreciation for China's position on the political settlement of the crisis and requested Beijing's constructive role in the situation. The meeting occurred as China seeks to restore ties with Europe and follows Wang's earlier statement that China will release a position paper on the Ukraine war. The paper will reiterate important claims by President Xi Jinping, including respect for sovereignty and territorial integrity, legitimate security concerns, and a common opposition to the use of nuclear, biological, and chemical weapons. Wang is expected to visit Russia on Wednesday, two days before the one-year anniversary of Moscow's invasion of Ukraine.
SCMP: Fresh Covid fears in Chinese city as 2 schools report outbreaks
Authorities in Hangzhou, China, have dismissed suggestions that a new wave of Covid-19 is sweeping across the city. On Sunday, 10 pupils from a primary school tested positive for the coronavirus, leading the school to suspend the class for four days, and all pupils from that class were advised to rest at home. On Monday, the education bureau confirmed an outbreak at a primary school where 10 pupils tested positive. Hangzhou’s municipal government has said that 10 pupils from the primary school and five others from a middle school had been infected, but all were first-time infections. Another primary school reported 12 students with fevers but said they had influenza, not Covid-19. Authorities have suggested that the situation is normal and does not represent the start of a new wave of Covid-19. Some Hangzhou residents remain concerned that new outbreaks could lead to a re-imposition of Covid restrictions.
SCMP: Hong Kong movie maker Johnnie To censored by Chinese social media after ‘fighting for freedom’ comments at Berlin Film Festival
Renowned Hong Kong film director, Johnnie To Kei-fung, has been censored by mainland Chinese social media platforms following comments he made about “fighting for freedom” during a press conference at the Berlin Film Festival. When asked about the importance of film, To mentioned that when totalitarianism and loss of freedom occur, the cinema is the first to take the hit. He added that all countries and peoples fighting for freedom across the globe should support the cinema. Alfred Wu, an associate professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore, said that under President Xi Jinping, the domestic environment is very tight and censorship has evolved.
SCMP: 1,000 weather balloons take to the skies daily, UN agency says amid US-China ‘spy balloon’ row
Around 1,000 weather balloons are released daily from 900 locations worldwide to provide vital data for weather forecasting and climate research, according to a report by the World Meteorological Organization (WMO). The balloons, which are released simultaneously every day and gather weather measurements including pressure, temperature, and humidity up to heights of 35km, form part of a global observation system that includes space-based instruments such as ships, satellites and aircraft. The report was published as the US and China continue to dispute the shooting down of a Chinese “spy balloon” by the US earlier this month.