How China’s latest government overhaul is shaping up, and what it says about the Communist Party’s priorities
China to nurture stock rally by masking live foreign flows data; ‘Let Japanese politicians drink radioactive waste water.’ How nationalism helped a Chinese drinks firm rise – briefly
Welcome to this issue of The China Brief. Today is May 12, 2024. 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.
SCMP
The article discusses China's recent government overhaul, focusing on the establishment of new party organs to address key policy areas such as financial risk, social stability, and science and technology. These reforms reflect President Xi Jinping's efforts to centralize party control and streamline bureaucracy. New bodies, including the National Administration of Financial Regulation and the Central Science and Technology Commission, have been set up to assert party influence and manage risks. The article highlights the secrecy surrounding some of these new party organs, particularly those related to science and technology. Additionally, it mentions efforts to extend party control down to the grassroots level and emphasizes China's concerns about scrutiny from the West. Overall, the reforms aim to enhance party control, manage risks, and promote technological development, although their effectiveness remains to be seen.
China to nurture stock rally by masking live foreign flows data
South China Morning Post
China is set to switch off a live feed of foreign flows for stocks as early as Monday, the latest policy move to shore up confidence by removing a potential source of negative data. The Shanghai and Shenzhen exchanges plan to cease displaying real-time figures on purchases or sales of local stocks through trading links with Hong Kong.
South China Morning Post
Chinese beverage company Xiang Piao Piao has capitalised on anti-Japanese sentiment surrounding the discharge of nuclear waste water from the disabled Fukushima plant. A photo of Xiang Piao Piao's Meco fruit tea, with packaging urging Japanese politicians to drink the radioactive water, went viral on Chinese social media platforms. The company's stock prices and sales surged as a result. Critics have accused Xiang Piao Piao of exploiting nationalist sentiment for commercial gain, and question whether the boost to sales will be a long-term solution to the company's problems.
Ahead of Olympics, World Anti-Doping Agency Faces a Trust Crisis
NY Times
The World Anti-Doping Agency (WADA) is facing accusations that it helped cover up positive drug tests for Chinese swimmers participating in the 2016 Summer Olympics. The allegations have raised concerns about the agency's ability to maintain a level playing field in future Olympic Games. The US, which is a major funder of WADA, has called for an independent investigation into the matter and an emergency meeting of the agency's executive board. Athletes have expressed concerns about the fairness of competition in the upcoming Paris Olympics.
China's Confucius Institutes flourish in ASEAN after West's freeze-out
Nikkei Asia
Confucius Institutes in Southeast Asia are continuing to thrive, even as their numbers dwindle in the West. The Chinese government-funded institutes, which ostensibly promote Mandarin and Chinese culture, have been criticised in the West for spreading propaganda and have been shut down in many countries. However, they have found a more receptive audience in Southeast Asia, where China is a leading investor. The region is also generally less willing to challenge China. There are now 42 Confucius Institutes in the Association of Southeast Asian Nations bloc, up from 33 in 2021.
China-Middle East link is creating an ‘untapped world’ of investment potential, MSCI director says
South China Morning Post
China and the Middle East have the potential to strengthen their historical ties through financial collaborations, but more mutual understanding is needed, according to Zhen Wei, a managing director at MSCI. As the relationship between China and the Middle East deepens, capital market investors will be presented with more financial products and investment opportunities. China has become the largest greenfield foreign direct investor in Saudi Arabia, with its investment in the kingdom increasing 11 times to $16.8bn in 2023 compared with the previous year. MSCI has a portfolio construction tool that helps investors screen securities with high or low exposure to the renewable energy sector.
South China Morning Post
Chinese scientists have developed an artificial intelligence (AI) system for military air combat that can explain its decision-making process to humans. The breakthrough technology allows the AI to communicate the motives behind its moves during intense battles, providing transparency and understanding for human pilots. The system, developed by a team at Northwestern Polytechnical University, has been tested in ground simulators and demonstrated a nearly 100% win rate with only 20,000 rounds of combat training. In contrast, conventional AI achieves a 90% win rate after 50,000 rounds. The technology is expected to be extended to realistic air combat environments in the future. The development highlights the growing intensity in the AI arms race between the US and China, as both countries explore the use of AI in military applications. The US has also been testing AI in air combat, but it is unclear whether it has solved the same AI hurdle that China claims to have overcome.
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