Ten years of China’s Belt and Road: what has $1tn achieved? Kweichow Moutai’s sell-off augurs a rebound for China’s stock market; Australian PM to visit China in November to meet with Xi
Beijing and Manila accuse each other of ‘provocative’ actions in South China Sea； Chinese beer maker Tsingtao opens probe after worker urination video goes viral
Welcome to this issue of The China Brief. Today is October 22, 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.
Beijing and Manila accuse each other of ‘provocative’ actions in South China Sea
South China Morning Post
China and the Philippines have accused each other of “provocative” actions at a disputed shoal in the South China Sea. A “minor collision” took place between a Chinese coastguard vessel and a Philippine resupply boat, according to a statement from the China Coast Guard. Two hours later, a Philippine Coast Guard vessel “ran into” a Chinese fishing boat. The Philippine National Security Council accused the Chinese side of causing the morning collision. The exchange of accusations came hours after Beijing announced that it had “lawfully” blocked Philippine vessels transporting “illegal construction materials” to a warship “illegally grounded” in the shoal.
Australian PM to visit China in November to meet with Xi
Japan Times
Australian Prime Minister Anthony Albanese will visit China in early November to meet with President Xi Jinping. The trip comes as the two countries work to repair their strained relationship. China has agreed to suspend a World Trade Organization dispute over tariffs on Australian wine, and the visit follows the release of Australian journalist Cheng Lei, who was detained in China for three years on politically motivated espionage charges.
Chinese beer maker Tsingtao opens probe after worker urination video goes viral
South China Morning Post
Tsingtao Brewery, China's second-largest brewer, has opened an investigation after a video of a factory employee urinating on raw ingredients went viral. The video shows a male worker climbing into a high-walled container and relieving himself onto its contents. Tsingtao said it had contacted the police and the batch of malt in question had been sealed. The company has sought to capitalise on the changing tastes of younger Chinese drinkers by diversifying into craft ales and other products.
China seeks to deepen cooperation with Gulf countries in various fields
Reuters
China's Commerce Minister, Wang Wentao, has expressed a desire to deepen oil and gas cooperation with Gulf countries and explore potential collaborations in the new energy vehicle industries. In a meeting with officials from the Gulf Cooperation Council, Wang emphasized the importance of industrial collaborations to promote stable and smooth industrial and supply chains.
For Rwandan-Chinese couples, language and culture are no barriers to love
South China Morning Post
Chinese and Rwandan couples face various challenges in transnational marriages, including cultural differences, language barriers, and religious disagreements. However, many have found love and built successful lives together. Some Chinese have moved to Rwanda to start businesses, while Rwandans have pursued education in China. The couples have found acceptance and support from their families, but public sentiment in China can be less welcoming. Despite the challenges, those in transnational marriages believe that their relationships are worthwhile.
NATO admiral says growing China-Russia ties raise risk in Arctic
Japan Times
NATO is growing worried about China's activities on Russia's Northern Sea route, fearing that its commercial and scientific interests could potentially lead to a Chinese military presence in the Arctic. Admiral Rob Bauer, who chairs NATO's Military Committee, expressed concerns about China's intentions and highlighted the presence of military scientists on Chinese ships in the region. NATO is particularly alarmed due to China's expanding relationship with Russia, including cooperation in energy and transportation, which has resulted in a significant increase in Russian crude shipments to China via Arctic waters.
Kweichow Moutai’s sell-off augurs a rebound for China’s stock market: analysts
South China Morning Post
Shares in Chinese alcohol giant Kweichow Moutai posted their biggest decline in nearly a year, leading analysts to predict a market bottom is imminent. Over the past decade, major declines in the stock have been followed by gains in the benchmark, the CSI 300 Index. Following a 19% slump in 2013, the index rose 6% over the next year, while a 25% decline in October 2018 preceded a 23% gain in the benchmark. The CSI 300 rallied 15% in the six months following a 23% slump in the stock last October.
Ten years of China’s Belt and Road: what has $1tn achieved?
Financial Times
China's Belt and Road Initiative (BRI), the largest multilateral development programme ever undertaken by a single country, is facing criticism as many projects have been mothballed, resulting in developing countries building up unsustainable debts and corruption has besmirched the programme's image. Pakistan, the biggest national recipient of BRI funding, has struggled to realise the ambition that new infrastructure would help turn the country into a global manufacturing hub. The $62bn China-Pakistan Economic Corridor (CPEC) has fallen far short of its vision, with 40% of the projects running into trouble, according to data from defence intelligence company Janes. Furthermore, fewer Chinese businesses have shown an interest in setting up factories in Pakistan, depriving the government of foreign currency earnings needed to service its non-rupee borrowings. Despite this, Pakistan's foreign debts have nearly doubled since 2015 to $100bn last year, with Chinese lenders collectively the largest creditors at around $30bn, according to the IMF. In a bid to expand BRI's influence, China's President Xi Jinping announced that the programme would be broadened to increase scientific exchanges and co-operation and even "institutional building".
EU Backs Ukraine But Has Qualms About Israel. That Won’t Work.
Bloomberg
The European Union (EU) is out of touch with its target audience when it comes to the ongoing conflict between Israel and Hamas, writes Niall Ferguson in Bloomberg Opinion. While EU leaders have been critical of Israel's actions, the majority of European voters, including in Germany, Austria, and Italy, believe that Israel has the right to defend itself against terrorist attacks. Ferguson argues that EU leaders are disconnected from their target audience due to a combination of factors. Firstly, they fear a new wave of refugees and a resurgence of terrorism. Secondly, they are concerned about the impact of the conflict on energy prices. Lastly, they want to avoid distracting the US from the situation in Ukraine. However, Ferguson suggests that the EU's strategy is flawed, as the conflicts in Ukraine and the Middle East are intertwined and China poses a greater threat to European security than EU leaders realize. In contrast, US President Joe Biden has effectively addressed his target market by expressing support for Israel's security. However, Ferguson warns that Biden's approach may not be effective in the long term, as he questions what the US will do if Iran and China continue to pursue aggressive actions.
Xi and Putin think they’re winning — and maybe they are
Japan Times
The article discusses the current state of the relationship between Russian President Vladimir Putin and Chinese President Xi Jinping. It suggests that their previous confidence in shaking up the international order has backfired, with Russia's military strength halved and China's economy slowing down. However, the article warns against underestimating the bond between Putin and Xi, and emphasizes the importance of paying attention to their game plan.
In Taiwan, finding solace — and identity — in traditional healing
Washington Post
Taiwan’s Indigenous communities still lack equal access to modern health care and suffer worse overall health outcomes than their Han Chinese counterparts, who make up about 97 percent of Taiwan’s population. The remainder are from Indigenous groups, of which the Amis are the largest, with about 200,000 people. This is partly about addressing inequalities: Taiwan’s Indigenous communities still lack equal access to modern health care and suffer worse overall health outcomes than their Han Chinese counterparts, who make up about 97 percent of Taiwan’s population. The remainder are from Indigenous groups, of which the Amis are the largest, with about 200,000 people. But it is also occurring at a pivotal political moment as Taiwan’s government under President Tsai Ing-wen, pushing back against Chinese claims to the island democracy, has increased efforts to support Indigenous politics and culture. Supporting the island’s Indigenous tribes helps prove Taiwan’s historical and cultural distinction from China and adds weight to the government’s ongoing sovereignty claims.
China snaps up ASEAN's green, digital investment opportunities
Nikkei Asia
China is expected to become the biggest investor in key business projects in ASEAN nations, according to Indonesian Deputy Foreign Minister Pahala Mansury. During the ASEAN-Indo-Pacific Forum held in September, ASEAN pitched 93 projects worth $38.2bn to partner countries, with China, the US, the UK, France, and Australia contributing the most. The projects, which focus on green infrastructure, digital economy, sustainable financing, and tourism, aim to foster economic cooperation and development in the Indo-Pacific region. ASEAN hopes the projects will be realized by 2025.
Japan to name former Asian affairs chief Kanasugi as envoy to China
Nikkei Asia
The Japanese government is preparing to appoint former top bureaucrat Kenji Kanasugi as the next ambassador to China. Kanasugi, who is currently the ambassador to Indonesia, will be Japan's first ambassador to China in seven years to not undergo Chinese language training. The appointment comes at a time when Japan-China relations remain strained, with disagreements over the release of radioactive water from the Fukushima nuclear power plant and the arrest of an employee of Japanese drugmaker Astellas Pharma on suspicion of espionage. Kanasugi has held several high-ranking positions within the foreign ministry, including senior deputy foreign minister for economic affairs and head of the Asian and Oceanian Affairs Bureau.
New US curbs on chip exports to China set to escalate battle for tech supremacy
South China Morning Post
The US has tightened its restrictions on China's access to cutting-edge computer chips and manufacturing equipment, according to the Commerce Department. The move is seen as an effort to close loopholes in previous curbs and prevent China's development of artificial intelligence for military use. China's commerce ministry said Beijing was "strongly dissatisfied" with the latest chip curbs, and warned that it will "take all necessary measures to resolutely safeguard its legitimate rights and interests". The US decision comes ahead of a possible meeting between the Chinese and US presidents at next month's Asia-Pacific Economic Cooperation forum in San Francisco. Observers noted that Beijing's response so far had been measured, signalling China's inclination to play down bilateral differences amid preparations for an anticipated meeting between Xi Jinping and Joe Biden. The new rules impose licence requirements on exports of advanced chips to more than 40 additional countries that could divert the technology to China.
Apple supplier Foxconn subjected to tax inspections by Chinese authorities
Yahoo US
Chinese tax authorities recently searched the offices of Foxconn, the Taiwanese electronics manufacturer, according to state media sources. The company employs hundreds of thousands of workers across China. The report did not give further details about the searches, which were conducted in Guangdong and Jiangsu provinces, as well as Henan and Hubei provinces. A Chinese expert quoted by the state-run Global Times newspaper said Taiwanese-funded firms operating in China should assume “corresponding social responsibilities”.
Maldives exposes India's backfiring China containment strategy
Nikkei Asia
India's diplomatic setback in the Maldives is a reminder of the challenges it faces in countering China's growing presence in the region, according to the Nikkei Asian Review. India's relationship with its smaller neighbours, including Nepal and Sri Lanka, has been strained by a perception that it seeks to dominate the region, the news site said. In last month's election, Indian President Ibrahim Mohamed Solih was replaced by opposition candidate Mohamed Muizzu, who had accused New Delhi of interfering in the Maldives' affairs. India had invested millions of dollars in the Maldives, funding projects to counter the influence of China. However, its efforts have been undermined by a perception in the region that India is seeking to protect its position against China rather than help its neighbours.
Beijing reviews wine tariffs ahead of Australian state visit
Financial Times
China has launched a review of the punitive tariffs imposed on Australian wine in 2020, signaling a potential thaw in relations between the two countries. The move comes ahead of Australian Prime Minister Anthony Albanese's visit to China next month, the first visit by an Australian leader in seven years. The review of the tariffs, which were as high as 175%, is expected to take around five months. The easing of tensions between Australia and China has also led to the lifting of trade restrictions between the two countries. The resumption of bulk wine exports to China would provide relief to Australia's red wine industry, which has been struggling with overcapacity.
China to bolster economic recovery and curb risks, central bank head says
Reuters
The People's Bank of China (PBOC) will focus on expanding domestic demand and fending off financial risks as it promotes a sustained economic recovery, according to PBOC Governor Pan Gongsheng. The central bank will make its policy "more precise and forceful" and guide financial institutions to cut real lending rates, reducing financing costs for firms and individuals. The PBOC will also activate capital markets, keep the yuan stable and prevent abnormal fluctuations in cross-border fund flows.
Alibaba, JD.com roll out low-price strategies for Singles’ Day amid tight economy
South China Morning Post
China's e-commerce giants, Alibaba Group Holding's Taobao & Tmall Group and JD.com, are hoping to draw in consumers with low prices during China's biggest online shopping event, Singles' Day, despite the country's slowing economy. Taobao & Tmall Group will begin presales for the 11.11 Global Shopping Festival on 24 October and expects to attract around 1 billion consumers. JD.com is offering best-price guarantees for over 800 million products for 30 days. However, the companies face competition from platforms such as Douyin and Pinduoduo, and are also affected by China's weakening economy.
Lithium wars: The global struggle for 'white diamonds'
Nikkei Asia
This article discusses the impact of geopolitical tensions on global supply chains and economic security, focusing on the case of lithium, a key material used in batteries for electric vehicles and renewable energy technology. The article analyzes how China has become a dominant player in the lithium supply chain, the efforts of the US to secure lithium-ion batteries and investments, and the actions taken by Japan and the EU in response. The article is part of a three-part series on economic security risks and strategic commodities.
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