Ukraine blows up Siberian railway linking Russia-China trade corridor; Chinese president’s family appear in documentary about Xi Jinping’s father
Toyota says it halts some Tianjin operations after report of weak sales; U.S. and China butt heads over investment in Southeast Asia
Welcome to this issue of The China Brief. Today is December 2, 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.
U.S. and China butt heads over investment in Southeast Asia
Nikkei Asia
Foreign direct investment (FDI) in Southeast Asia is rapidly increasing as businesses from the US and China are attracted to the region's political stability and large markets. FDI in the region reached a record $222.5bn in 2022, with companies such as Marvell Technology, Synopsys and Amkor Technology expressing interest in investing in countries such as Vietnam. Meanwhile, Chinese carmaker Zhejiang Geely Holding Group is investing $10bn in Malaysia to build an automobile production base. FDI in Southeast Asia increased by 40% between 2017 and 2022, outpacing investment in China, Latin America and Africa.
Toyota says it halts some Tianjin operations after report of weak sales
Reuters
Toyota has halted production on some ageing lines at a joint venture in China, however, operations at the venture with China's FAW continue as normal. The production halt is a planned move and Toyota is adjusting production based on changes in vehicle models. This move comes as a response to weak sales of gasoline-engine cars in China. Toyota is facing challenges in China as slowing sales are affecting its business in the country.
Ukraine blows up Siberian railway linking Russia-China trade corridor
South China Morning Post
Ukrainian media outlets have reported that Ukraine's spy agency, the Security Service of Ukraine (SBU), staged two explosions on a key railroad line in Siberia that connects Russia and China. The attacks targeted trains loaded with fuel on the Baikal-Amur Mainline and caused a fire in a tanker train and an explosion on another train crossing a bridge. The SBU has not confirmed the reports. Ukrainian authorities have previously claimed responsibility for attacks on infrastructure facilities in Russia. The attacks highlight Moscow's vulnerability amid the ongoing conflict in Ukraine.
Australia to put AI to the test tracking Chinese submarines
ABC
Australia will join the US and UK in testing artificial intelligence technology to track Chinese submarines. The technology will be deployed by the US Navy's surveillance and attack aircraft during Pacific patrols, using data gathered from sonobuoys. The move comes after Australian naval divers were injured in an incident with a Chinese warship last month. The announcement is part of the AUKUS defence agreement, which also includes a $3 billion military training and equipment package for Australia from the US. The deal will involve training navy personnel in submarine navigation and ship control.
Chinese president’s family appear in documentary about Xi Jinping’s father
South China Morning Post
Chinese President Xi Jinping’s mother and sister have made a rare appearance in a documentary series as part of a publicity campaign about the family and Xi’s upbringing around the 110th anniversary of the birth of his father, Xi Zhongxun. Xi’s mother Qi Xin, 97, is featured among interviewees in the documentary which aired on state broadcaster CCTV this week.
Welcome to the Tiny Island Paradise Fending Off China
WSJ
The residents of Thitu Island in the South China Sea are caught between the territorial claims of the Philippines and China. The island is controlled by the Philippines but China has grown increasingly assertive in the region and accuses the Philippines of illegally occupying the island. Thitu's population of 255 people is therefore on the front line of the Philippines' efforts to protect its interests in the South China Sea. The Philippine military has stationed soldiers on Thitu, but they are relying on a non-military strategy to bolster their position: keeping civilians on the island. The Philippines is investing in infrastructure and services on Thitu, including Wi-Fi, paved roads, an airstrip, a sheltered port and a solar power plant. The government also provides rice and employment opportunities. However, life on Thitu remains difficult due to the lack of natural resources, the need to travel to the mainland for medical treatment, and the security risks posed by Chinese militia boats. Despite these challenges, the residents of Thitu are determined to stay and defend their island.
Manila risks Beijing’s wrath with ‘non-starter’ South China Sea mini pact plan
South China Morning Post
The Philippines risks damaging its relationship with China and undermining negotiations for a South China Sea code of conduct by pursuing separate rules for the disputed waterway with other claimant states, according to analysts. The country's President Ferdinand Marcos Jnr recently announced that he had approached Vietnam, Malaysia, and others to discuss their own code of conduct, separate from the ongoing talks between China and the Association of Southeast Asian Nations (ASEAN). Security experts have warned that China will not respond well to attempts to "gang up" on it, and any parallel talks could derail the process. China and ASEAN have been working on a code of conduct for the South China Sea for more than two decades, but progress has been slow. Analysts have suggested that any separate code of conduct without China's involvement could result in Beijing perceiving the claimant states' intent negatively and threatening to withdraw from negotiations on a wider pact.
U.S. sets limits on Chinese content to receive EV tax credits
Japan Times
The Biden administration has released rules aimed at preventing electric vehicle (EV) manufacturers from sourcing battery materials from China and other foreign adversaries. The guidelines establish a 25% ownership threshold for a company or group to be classified as a foreign entity of concern (FEOC). The restrictions will apply to battery components next year, and suppliers of key battery raw materials, such as nickel and lithium, in 2025. Vehicles containing battery components manufactured or assembled by FEOCs will no longer qualify for the $7,500 tax credit starting in 2024. The rules aim to balance the goal of reducing reliance on Chinese materials while still incentivizing EV adoption.
China's respiratory illness rise due to known pathogens -official
Reuters
China is experiencing a surge in respiratory illnesses, but health officials have stated that these are caused by known pathogens and there is no sign of new infectious diseases. The spike in illness has attracted attention from the World Health Organization, but doctors and experts in China and abroad are not alarmed, as other countries have also seen similar increases in respiratory diseases after easing pandemic measures. Chinese authorities are taking steps to address the situation, such as opening more pediatric outpatient clinics and encouraging flu vaccinations and mask-wearing.
New Sunway supercomputer hints at how China sidestepped US sanctions
South China Morning Post
China has unveiled a new supercomputer, named Sunway OceanLight, which was built under US sanctions. The system, powered by a home-grown chip, has a performance that is second only to the US Department of Energy’s Frontier system. The new Sunway has a speed of a billion billion operations per second (5 exaflops) and has more than 41 million CPU cores, nearly five times as many as Frontier. Although the home-grown chips in the new Sunway are not as powerful as the US version, Chinese scientists have increased the number of cores in the machine to boost performance. While this increases the energy consumption, size and cost of running the supercomputer, the system maintains over 85% of its peak performance in regular operation, ranking highest among all heterogeneous systems and second among all systems. According to a Chinese computer scientist, this new Sunway system is not the most powerful supercomputer in China at present, and other supercomputing chips are also under development.
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