G7 unveils new plan to fight economic coercion but doesn’t single out China; The Greater Bay Area economy is almost as big as Italy’s: Paul Chan
No joke: China's backlash against stand-up stirs fear of comedy clampdown; China rejects India’s invite to G20 meet in ‘disputed’ Kashmir
Welcome to this issue of The China Brief. Today is May 20, 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.
G7 unveils new plan to fight economic coercion but doesn’t single out China
South China Morning Post
Leaders from the G7 countries have agreed to launch an initiative aimed at countering "economic coercion" and vowed to ensure any such efforts will fail and face consequences. While the statement did not name China, Western officials have said that is understood to be its target. The new Coordination Platform on Economic Coercion will use an early warning system and rapid information-sharing tools. The G7 leaders also vowed to support the supply chain of middle and low-income countries so they will be more resilient and less vulnerable.
The Greater Bay Area economy is almost as big as Italy’s: Paul Chan
South China Morning Post
The southern Chinese economic hub of the Greater Bay Area, which includes Hong Kong, Macau and nine mainland cities in Guangdong province, has a combined gross domestic product (GDP) that is now comparable to Italy’s at close to $2tn. The GDP of the area climbed 25% from $1.65tn in 2019, according to Financial Secretary Paul Chan Mo-po. If considered as a standalone economy, the Greater Bay Area would have been the world’s ninth-largest economy in 2023, just below Italy, according to the IMF.
G7 urges China to press Russia to end war in Ukraine, respect Taiwan's status, fair trade rules
The Independent
Leaders of the seven wealthiest countries, known as the G7, have called on China to pressure Russia to end its war on Ukraine. The G7 members praised China and sought “constructive and stable relations” whilst also urging cooperation to face challenges of climate change, biodiversity, global health concerns, debts and financing needs of vulnerable countries, and economic stability. However, the statement’s release coincided with the group’s expression of their “serious concern” about the situation in the East and South China Seas. There was no legal basis for China’s expansive maritime claims in the South China Sea and the G7 opposes China’s militarization activities in the region the group said. The G7 leaders also expressed worries about human rights in China, including Hong Kong, Tibet, and Xinjiang and vowed to counter types of “economic coercion” while also avoiding “unduly limiting trade and investment.”
China ‘expels ship’ near Fiery Cross Reef in the South China Sea
South China Morning Post
Chinese state broadcaster CCTV has reported that PLA troops stationed on a man-made South China Sea island expelled an incoming ship. The nationality and nature of the ship was not identified. The report featured a re-enactment, but no video footage of the incident was shown. Soldier deployment and communication with battalion commanders were supposed highlights of the programs. Tensions are rising globally concerning regional powers’ territorial claims in the South China Sea.
China rejects India’s invite to G20 meet in ‘disputed’ Kashmir
The Independent
China has rejected India's invitation to a G20 tourism summit to be held in Kashmir due to the region being a "disputed territory." New Delhi, however, stated that it was "free to hold meetings on its own territory." India is the chair of G20 this year by rotation and is organising a chain of meetings with its allies across the country leading to the final event of the summit in the capital city in September. Several countries have not yet registered for the event, including Turkey and Saudi Arabia.
India and China are frequently at odds in the Himalayan sector's Jammu and Kashmir and the union territory of Ladakh along the shared border, resulting in the deaths of their troops over a number of clashes.
No joke: China's backlash against stand-up stirs fear of comedy clampdown
Reuters
A joke at an Xiaoguo Culture Media-coached stand-up comedy show has reduced its industry to fear for the future, with cancelled events and police investigations. The professional standards bureau fined Xiaoguo over $2m and forbid it from holding shows in Beijing and Shanghai, following comments which ridiculed Chinese military veterans. The media company, which was reported to be censoring sensitive content prior to the show, claims the incident occurred due to “major loopholes in management” and terminated the comedian involved, Livestreamer Li Haoshi, with a sincere apology.
Taiwan’s Tsai Puts China, Chip Power Center-Stage in Final Year
Bloomberg
Cross-Strait security and reinforcing Taiwan’s position in the global supply chain are key priorities for Taiwanese President Tsai Ing-wen in her final year, as she lays the path for her deputy's ascendancy. Tsai reaffirmed her commitment to dialogue with China and promoting orderly exchanges, warning that "war is not an option". Further challenges include Taiwan's ongoing recession and its position as part of the deteriorating relations between the US and China. Both Vice President Lai Ching-te, of the incumbent Democratic Progressive Party, and New Taipei City Mayor Hou Yu-ih of the opposition Kuomintang are in the running for the January elections.
Ukraine’s Zelensky lands in Japan, says G7 meet will bring peace ‘closer’
South China Morning Post
The US will allow Ukraine to buy F-16s after the White House overruled concerns from military officials over the risk of escalating the conflict with Russia. President Joe Biden said the jets would help Ukraine deter Russian aggression. Ukrainian President Volodymyr Zelensky said on social media that the decision would bring peace closer, and Zelensky had already arrived at the G7 summit in Japan to hold important meetings with his allies. Military experts said the aircraft would be a significant upgrade from Ukraine’s ageing Soviet-era fleet, offering greater ability to strike targets in the air or on the ground.
G7 issues strongest condemnation of China as it intensifies response to Beijing
Financial Times
The G7 has urged Beijing to exert pressure on Russia to withdraw troops from Ukraine in its strongest communique criticizing China. Members expressed concern about the situation in the East and South China Seas, opposing unilateral attempts to change the status quo by force or coercion, and supporting a peaceful resolution of growing tension in the Taiwan Strait. The G7 members stated that they were prepared to build stable relationships with Beijing and to voice their concerns directly, despite the growing military and economic security threats posed by China.
China's exports to North Korea surge in April
Reuters
Chinese exports to North Korea rose 69% YoY in April to $166m with wigs, hair (used in wig manufacturing), fertilizer and rice amongst the top export items. From January to April this year, Chinese exports to North Korea increased from $270.59m to $603m. The nation has been under UN sanctions since 2006 for their missile and nuclear programs.
China's Russian oil imports rise in April but Saudi is top supplier
Reuters
China's crude oil imports from Russia rose 8.6% from a year earlier in April. Deliveries from Russia, including seaborne shipments and supplies via pipelines, totaled 7.1 million tons or 1.73 million barrels per day, according to customs data. While large private integrated refiners have joined smaller independent plants in snapping up cheaper Russian oil, overall crude oil imports in China have dropped 16% from March due to weaker orders from smaller importers affected by Beijing's measures to stem the coronavirus outbreak.
Zelenskyy set to confront Putin’s enablers at G7
Financial Times
Ukrainian President Volodymyr Zelenskyy is to attend the G7 summit on Sunday, allowing him to confront Indian Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva, two crucial developing countries that have maintained close ties with Moscow despite the country’s invasion of Ukraine, about their lack of support for sanctions against Russia, with their obfuscation over who is to blame for the conflict in which Kyiv is preparing to push for battlefield gains. Experts believe Zelenskyy’s presence should serve as a ‘symbol of unity’ against Russia.
Taiwan’s Tsai Ing-wen vows to maintain cross-strait status quo
South China Morning Post
Taiwanese President Tsai Ing-wen has affirmed her commitment to maintain peace and stability across the Taiwan Strait in the face of escalated tension with Beijing. Tsai announced in a speech that Taiwan would not succumb to Chinese pressure, alongside restating its commitment to the sovereignty of the island. China considers Taiwan to be its own, originating in the Chinese Civil War. Beijing has intensified military and diplomatic pressure against Taiwan, attempting to force the island to accept its sovereignty. Tsai has pledged multiple times to stand alongside democratic governments in defense of Taiwan's democracy.
China’s barbecue boomtown: how Zibo fanned its fortunes with a food festival
South China Morning Post
Zibo, a formerly debt-ridden industrial Centre in China’s Shandong province, has turned around its fortunes with a heavily-advertised “barbecue festival” designed to draw holidaymakers on a budget. Campaigners from the city government used discount vouchers, an interactive WeChat map and monitored pricing in hotels and restaurants to create a buzz around the event, which drew more than 120,000 visitors over the Labor Day holiday. While the measure may have contributed to an increase in the number of young people storming the city for the low cost option, doubts have been raised about whether barbecue can truly revive Zibo's local economy, which has recently experienced weakening export demand along with Covid-related disruptions in its chemical business. To maintain growth, the city must diversify its service industry, according to Chen Ji from the Capital University of Economics and Business.
Hong Kong must do its homework to profit from warmer-than-ever China-Saudi ties
South China Morning Post
As China-US relations become more strained and geopolitical complexity rises, Hong Kong businesses are recognising the investment possibilities in Saudi Arabia. Hong Kong business trips to Saudi Arabia have resulted in the recognition of the potential benefits the country possesses for foreign investment and diversification. During a trip to Saudi Arabia, the chairman of the non-profit Better Hong Kong Foundation, Ronnie Chan, and a local business delegation had first-hand interactions with senior Saudi officials, business leaders and academics. They returned with insights that should provide food for thought as Hong Kong seeks to compete in the global market. While Saudi Arabia is keen to welcome Hong Kong investors, major projects are government-driven and Saudi Arabia actively seeks foreign direct investment. However, the Hong Kong business sector differs from other investors; it is privately owned and the Hong Kong government needs to make it easier for local entrepreneurs to venture into the relatively unknown Saudi market.
China tells Canada to stop following US as election meddling row rumbles on
South China Morning Post
China’s Ambassador to Canada, Cong Peiwu, has called on Canada to boost diplomatic and economic ties. Cong urged Canadian Prime Minister Justin Trudeau to correct past mistakes and not provoke confrontation, adding that Ottawa should return to a more independent foreign policy of its own. Cong suggested relations between Canada and China had deteriorated in recent years, since the arrest in Vancouver of Huawei Chief Financial Officer, Meng Wanzhou, and China’s subsequent detention of Canadians Michael Kovrig and Michael Spavor. The Chinese Ambassador accused Canada of making further provocative moves, in a dispute that dates back to December 2018. Canada has expelled a Chinese diplomat who was under suspicion of targeting a Conservative legislator and his family in Hong Kong. Cong also criticized moves by the US to settle scores with China on trade.
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