Is China’s Economic Predicament as Bad as Japan’s? It Could Be Worse; In risky hunt for secrets, U.S. and China expand global spy operations
China police detain some Evergrande wealth management staff; Li Qiang vows ‘practical’ cooperation with Asean in bid to reassure neighbours
Welcome to this issue of The China Brief. Today is September 17, 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.
Is China’s Economic Predicament as Bad as Japan’s? It Could Be Worse
WSJ
China's economic problems are more intractable than Japan's were in the 1990s, according to economists. China's public debt levels are higher, its demographics are worse, and it is facing geopolitical tensions that go beyond trade frictions. Furthermore, China's government, which has been cracking down on the private sector, seems ideologically less inclined than Tokyo was to support growth. While China's economic growth is expected to be higher than Japan's in the 1990s, economists warn that if Beijing does not act more forcefully, the country could get stuck in a protracted period of economic sluggishness similar to Japan's.
In risky hunt for secrets, U.S. and China expand global spy operations
Japan Times
The United States and China are engaged in a shadow war of espionage, with both nations taking bold steps to collect intelligence on each other's leadership thinking and military capabilities. This espionage battle is a part of the ongoing rivalry between the two countries.
Li Qiang vows ‘practical’ cooperation with Asean in bid to reassure neighbours
South China Morning Post
Chinese Premier Li Qiang has reassured Southeast Asian leaders that China will pursue "practical" cooperation with the region, seeking to allay concerns about territorial disputes and US influence. Speaking at the China-Asean Business and Investment Summit, Li emphasised the importance of trustworthiness and fair market policies in trade and economic cooperation. He also expressed hopes for advancing talks on a "free trade area version 3.0" with the Association of Southeast Asian Nations. Li held meetings with several Southeast Asian counterparts during the summit, including Vietnam and Laos.
China’s banks fear stimulus moves will fail to stem tide of mortgage prepayment
South China Morning Post
China's commercial banks are concerned that the central bank's recent cut to outstanding mortgage rates will not be enough to prevent a flood of mortgage prepayments and protect bank margins. The People's Bank of China (PBOC) announced new guidance last month requiring banks to lower interest rates on outstanding mortgages for first-home loans. The move was designed to stimulate consumption and reduce the incentive for households to pay down their mortgages early. However, banks fear that the lower rates will not be sufficient to prevent prepayments and protect their profits.
South Korea’s Yoon under fire for trying to play down anti-Japanese moves
South China Morning Post
South Korea is facing disputes over how to treat its anti-Japanese independence fighters as President Yoon Suk-yeol seeks closer ties with Japan to deal with North Korea. Historians and politicians have criticised the Yoon administration's attempt to soften Japan's brutal narrative and downplay anti-Japanese feats for improved relations with Tokyo. In a joint statement, 51 historian associations accused the government of belittling the roles of leftist pro-independence fighters to fit Yoon's new foreign policy vision.
China police detain some Evergrande wealth management staff
Reuters
Police in Shenzhen, China, have detained staff at China Evergrande Group's wealth management unit, according to a statement released by the police. The statement did not specify the number of people detained, the charges they face, or the date they were taken into custody. It is unclear if Du Liang, the general manager and legal representative of Evergrande's wealth management division, is among those detained. Evergrande, the world's most indebted property developer, is currently undergoing a debt restructuring process. The company's stock resumed trading on August 28 after a suspension of 17 months. Moody's recently downgraded the outlook on China's property sector to negative, citing economic challenges.
WHO chief pushes China for ‘full access’ to solve Covid’s origins
Financial Times
The head of the World Health Organization (WHO), Tedros Adhanom Ghebreyesus, has called for China to provide more information on the origins of Covid-19. He stated that the WHO is pressing China to give full access and is ready to send a second team to investigate if allowed. The origins of the pandemic remain unclear, with two prominent theories suggesting it either jumped from animals to humans via wet food markets in Wuhan or stemmed from an accidental leak at a virology laboratory in the city.
Why hotter weather in China could mean more suicide deaths
South China Morning Post
Researchers from Fudan University in Shanghai have called for action to be taken in China to reduce the potential impact of hot weather on suicide rates as global temperatures continue to rise. The researchers recommend early intervention, education, social support, meteorological warnings, and long-term climate adaptation strategies. The study found that rising temperatures were linked to increasing death risks and that more than 65,000 suicide deaths in China between 2013 and 2019 were associated with non-optimal temperature. The researchers predicted that climate warming could result in an additional 24,000 suicides in China in the 2090s under a high-emission scenario.
China steps up scrutiny of Japanese in China after Fukushima decision
Japan Times
There are concerns that the more than 100,000 Japanese nationals living in China may be treated as potential hostages due to the increasing tensions between the two countries. The international community is worried about the safety and well-being of these individuals.
Kim Jong Un receives drones as gifts as he heads home from Russia
Al Jazeera
North Korean leader Kim Jong Un received five explosive drones, a reconnaissance drone, and a bulletproof vest as gifts from a regional governor during his visit to Russia, according to the official TASS news agency. The governor of the Primorye region, which borders China and North Korea, also offered Kim a set of bulletproof protection and special clothing not detectable by thermal cameras. The visit has raised concerns in the West that Russia and North Korea may defy sanctions and strike an arms deal. However, the Kremlin has stated that no agreement was signed during Kim's visit.
China spy scandal a boon to a Conservative government failing Britain
South China Morning Post
The recent arrest of a suspected Chinese spy in London has provided a welcome distraction for the UK government, which is currently facing numerous economic and political challenges. The arrest has highlighted the vulnerability of the UK in dealing with China and has led to calls for a tougher stance on the country. However, the article argues that the UK's economic woes are largely self-inflicted, and using the arrest as a distraction from internal problems is not a sustainable solution. The article also raises concerns about the impact on Sino-British trade relations.
‘Fantasy’: doubt cast over US-led infrastructure project given track record
South China Morning Post
A US-led infrastructure project involving India, Europe, and the Middle East aims to improve connectivity and integration between Asia, the Persian Gulf, and Europe. The project, which bears similarities to China's Belt and Road Initiative, includes a rail and shipping corridor connecting India with Saudi Arabia, the United Arab Emirates, and the European Union. However, some observers doubt the success of the US-led project, citing the lack of results from previous initiatives. The US may be seeking to counter China's growing influence in the Middle East through the project, but critics argue that it lacks precedent and is retaliatory and divisive.
World’s Largest ‘Baby Exporter’ Confronts Its Painful Past
NY Times
South Korea has the largest diaspora of intercountry adoptees in the world, with over 200,000 children sent abroad since the end of the Korean War in 1953. The country has now launched its first official investigation into its adoption industry, having long been reluctant to adopt children. Adoption firms have been accused of falsifying or obscuring documents, leading to many children being available for adoption without their birth parents' knowledge. Many unwed mothers were coerced into signing away their babies. The investigation was prompted by hundreds of adoptees returning to South Korea with the resources to seek answers about their background. Many have reported fabricated data, stolen babies and laundered identities, as well as abuse in adoptive families.
TikTok rankles employees with return-to-office tracking tools
The Sydney Morning Herald
Employees at TikTok in the US have expressed frustration over a new tool that tracks office attendance and threatens disciplinary action for failing to comply with in-person mandates. The app, called MyRTO, is built into the company's internal software and monitors badge swipes, requiring employees to explain any absences on office days. TikTok has faced backlash for its disciplinarian approach and the appearance of the MyRTO dashboard, which reminds employees that their daily whereabouts are being monitored. While many companies have settled into hybrid work arrangements, few have created custom tools and dashboards with daily logs of data to monitor employees' in-office attendance.
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