Universities in China change course to meet government’s need for hi-tech workforce; Alibaba swaps its listing status in Hong Kong, clears the way for mainland investments
China’s big ball of money has nowhere else to go
Welcome to this issue of The China Brief. Today is August 23, 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.
Chinese scientists devise method to get water from the moon’s surface
South China Morning Post
Chinese scientists have developed a method to extract water from lunar soil, crucial for establishing a lunar research base. This technique involves heating lunar soil, particularly ilmenite-rich minerals, to high temperatures to release hydrogen and oxygen, producing water vapor. A gram of lunar soil can yield 51 to 76 milligrams of water, potentially enough for 50 people daily. The researchers propose using focused sunlight to heat the soil, while by-products could aid in creating lunar infrastructure. Ongoing missions will further investigate water sources on the moon, which may also support future deep space exploration.
https://www.scmp.com/news/china/science/article/3275521/chinese-scientists-devise-method-get-water-moons-surface?utm_source=rss_feed
Universities in China change course to meet government’s need for hi-tech workforce
South China Morning Post
Chinese universities are revamping their engineering and technology programs to focus on high-tech fields like artificial intelligence (AI) and big data, in response to government demands for enhanced talent development. As of July 31, 19 universities had eliminated 99 majors, with notable changes including Sichuan University contemplating the removal of 31 traditional disciplines to create a new major in biomass science and engineering. This shift aligns with directives from the Ministry of Education to tailor university programs to better support China's modernization efforts and emerging industries. Over the past decade, the landscape of engineering majors has evolved significantly, with traditional fields being replaced by innovative areas such as robotics, blockchain, and cybersecurity. The government is emphasizing the need for educational programs to align with industrial needs, as part of broader initiatives to foster a self-reliant, innovation-driven economy amid global competition.
https://www.scmp.com/news/china/article/3275503/universities-china-change-course-meet-governments-need-hi-tech-workforce?utm_source=rss_feed
Alibaba swaps its listing status in Hong Kong, clears the way for mainland investments
South China Morning Post
Alibaba Group Holding will change its listing status in Hong Kong to a dual-primary listing on August 28, allowing it to sell shares to mainland China's investors through the Stock Connect program. This move aims to attract significant capital inflow and increase liquidity for Alibaba's shares, which have seen a substantial decline in market value since 2020. With a market capitalization of HK$1.58 trillion, Alibaba could see up to US$12 billion in investment within six months post-inclusion. This transition reflects Alibaba's strategy to engage more with domestic investors amid ongoing challenges in its business operations.
https://www.scmp.com/business/china-business/article/3275548/alibaba-swaps-its-listing-status-hong-kong-clears-way-mainland-investments?utm_source=rss_feed
China’s big ball of money has nowhere else to go
Reuters BreakingViews
Beijing's warnings have tempered the rush into government debt as investors seek refuge from weak stock markets and declining home prices. With the U.S. expected to lower interest rates, opportunities for foreign investment exist, but capital controls may hinder this. Historically, Chinese households would shift their investments between property and stocks, or save when both sectors faltered. This year, with low savings rates and poor performance in both markets, government bonds have emerged as a preferred investment, resulting in significant price spikes and a rally following a surprise rate cut by the People's Bank of China.
Warnings from the central bank have led to a cooling in speculative bond buying, but investment funds have accounted for a large portion of bond purchases. There is a push for domestic banks to offer more investment products linked to international markets, especially as U.S. rate cuts may enhance the appeal of overseas investments. However, it is likely that Beijing will maintain strict controls, preventing significant capital outflow and keeping the focus on domestic bonds, which could again place pressure on the central bank.
https://www.breakingviews.com/considered-view/chinas-big-ball-of-money-has-nowhere-else-to-go/
Chinese imports of chip gear hit record US$26 billion this year
South China Morning Post
Chinese imports of semiconductor manufacturing equipment reached a record US$26 billion in the first seven months of this year, as companies in China increase purchases in anticipation of further restrictions from the US and its allies. This figure surpasses the previous high from 2021, amidst efforts from American, Japanese, and Dutch officials to impose tighter controls on Chinese firms. Chinese companies have notably increased purchases from suppliers like Tokyo Electron, ASML, and Applied Materials, focusing more on lower-end equipment due to these restrictions.
Dutch exports to China have also seen significant growth, with July sales exceeding US$2 billion for only the second time on record. ASML's revenue from China surged by 21% in the second quarter, primarily from older, unrestricted equipment, as China seeks to produce more mature semiconductor types. China's Semiconductor Manufacturing International Corp (SMIC) used ASML's older lithography machines to achieve technological advancements. The semiconductor output from Chinese manufacturers is expected to grow by 14% by 2025, indicating a substantial share of the global production. The US continues to enforce export controls that limit China's advancements in critical technologies, including semiconductors and AI.
https://www.scmp.com/tech/tech-war/article/3275562/chinese-imports-chip-gear-hit-record-us26-billion-year?utm_source=rss_feed
China’s tech hub Shenzhen prime for property tax trial at ‘critical moment’: top adviser
South China Morning Post
A senior government adviser, Yin Zhongli, has suggested that China expand its property tax trial to Shenzhen and lower-tier cities to address local government debt and improve property rights recognition. The property tax, initially piloted in Shanghai and Chongqing, could provide stable revenue amid rising debts estimated at 42.6 trillion yuan. Yin warns that implementing a nationwide property tax now could exacerbate the real estate market's challenges. The central government aims to refine the property tax system, although current trials mainly target high-priced homes, limiting broader application and impact.
https://www.scmp.com/economy/china-economy/article/3275477/chinas-tech-hub-shenzhen-prime-property-tax-trial-critical-moment-top-adviser?utm_source=rss_feed
In a Likely Overture to China, Nepal Lifts Ban on TikTok
NY Times
K.P. Sharma Oli, the new prime minister of Nepal, has lifted a ban on the social media app TikTok that was imposed by his predecessor in November. The ban was initially implemented due to concerns about hate speech and social harmony. Oli's decision to reinstate TikTok is seen as a move to strengthen Nepal's ties with China, especially amid geopolitical tensions with India, which has also banned the app. The Nepalese government has set conditions for TikTok's operation, including promoting Nepali tourism and addressing digital safety issues. Additionally, Nepal and China have agreed to expand development projects, including upgrading a highway in Kathmandu as part of China's Belt and Road Initiative. Oli, who leads Nepal's largest communist party, has historically opposed Indian influence in the country.
https://www.nytimes.com/2024/08/22/world/asia/nepal-tiktok-china.html
Europe’s America Problem
Foreign Affairs
In a recent speech, U.S. Vice President Kamala Harris emphasized the United States' strong commitment to NATO allies, suggesting continuity in support for Ukraine under a potential Harris presidency. In contrast, Donald Trump has expressed a more dismissive attitude towards NATO, suggesting that member countries not meeting defense expenditure targets could face Russian aggression without U.S. intervention. As the November elections approach, European nations are grappling with the implications of either outcome, emphasizing the need for a united European strategy to engage with the United States, regardless of the election's results.
Europeans must collectively define their strategic interests in relation to the United States, considering the evolving global political landscape and diminishing U.S. appetite for international commitments. The uncertain future of U.S. engagement in Europe, particularly if Trump is reelected, poses risks to European security, especially regarding support for Ukraine. European leaders are already exploring ways to fortify their defense capabilities, emphasizing the importance of shared security interests with the U.S. and the necessity for a coherent approach to transatlantic relations moving forward.
To enhance the transatlantic partnership, European countries should avoid transactional relationships with the U.S. and instead pursue a unified front that articulates their collective interests and expectations. This strategy should prioritize deterring Russian aggression, reinforcing NATO, and addressing broader global challenges such as China and Middle Eastern stability. By fostering cooperation on economic and environmental issues, Europe can establish a more robust role in the international arena while ensuring that U.S. policies align with European interests. Ultimately, a coordinated European approach can strengthen the transatlantic alliance and promote a stable, rules-based global order.
https://www.foreignaffairs.com/europe/europes-america-problem
China’s cruise ship services 220,000, sailing full steam into uncharted market
South China Morning Post
China's first domestically produced cruise ship, the Adora Magic City, has successfully completed 54 voyages and served 220,000 passengers within seven months of operation, marking a significant achievement for the country's cruise industry. The ship, which can accommodate 5,246 passengers in 2,125 cabins, is a joint project between China State Shipbuilding Corp (CSSC) and American operator Carnival. It is set to offer 86 international cruises from Shanghai this year, mainly to Japan and South Korea, and has consistently been fully booked.
The vessel is projected to generate an annual purchase volume of 220 million yuan (around US$30.8 million) for services and supplies, supporting related industries. Despite its success, some passengers have criticized the ship's food supply and entertainment options on social media, citing issues such as long queues and lackluster activities. Nonetheless, the Adora has captured a significant portion of China's cruise market, accounting for 42% and serving nearly 180,000 passengers in the first half of 2024. China aims to increase its global cruise market share to over 10% by 2030, with projections of 4.5 million cruise passengers and significant economic contributions from the industry.
https://www.scmp.com/economy/china-economy/article/3275648/chinas-cruise-ship-services-220000-sailing-full-steam-uncharted-market?utm_source=rss_feed
China’s Xi Jinping and Britain’s Keir Starmer speak in first official phone call
South China Morning Post
Chinese President Xi Jinping and British Prime Minister Keir Starmer had a phone conversation on Friday, as requested by Starmer. This marks the first communication between Xi and a British prime minister since March 2022, when he spoke with Boris Johnson. Further details are expected to follow.
https://www.scmp.com/news/china/diplomacy/article/3275676/chinas-xi-jinping-and-britains-keir-starmer-speak-first-official-phone-call?utm_source=rss_feed
China considers higher tariffs on large petrol cars as EU tensions escalate
South China Morning Post
Chinese carmakers and industry associations met with commerce officials to discuss potential import tariff increases on large engine petrol-powered vehicles, seen as a retaliatory measure against the EU’s tariffs on Chinese electric vehicles (EVs). The Chinese government is responding to the EU's revised tariffs while also launching investigations into EU dairy products. The discussions reflect a broader trade conflict, with China seeking to target European automotive advantages. In 2022, China's vehicle imports declined, while the value of large engine imports from the EU rose. China's EV exports to the EU also fell by 15% in the first half of the year.
https://www.scmp.com/economy/global-economy/article/3275650/china-considers-higher-tariffs-large-petrol-cars-eu-tensions-escalate?utm_source=rss_feed
Shein reveals child labor cases at its suppliers
CNN
In its 2023 sustainability report, Shein acknowledged two instances of child labor at its suppliers in China, leading to the suspension of orders and implementation of stricter audits. The company has enhanced its supplier policy to terminate relationships immediately for severe violations. Shein conducted nearly 4,000 audits in 2023, reporting a decrease in serious violations. Additionally, the company’s carbon emissions from product transport surged, prompting efforts to source closer to consumers. Shein aims for transparency and improved governance amid preparations for a potential IPO.
https://edition.cnn.com/2024/08/23/business/china-shein-child-labor-audit-hnk-intl/index.html
Huawei’s polar code beats Nato protocol in South China Sea submarine communication test
South China Morning Post
Chinese tech company Huawei Technologies has achieved a breakthrough in underwater communication, collaborating with the People’s Liberation Army and Xiamen University. In tests conducted 3,000 meters deep in the South China Sea, they successfully transmitted data over 30 kilometers at 4,000 bits per second using a new encoding method called higher-order polarization weight (HPW). This technology surpasses existing protocols, allowing for efficient data transmission without the need for splitting data streams, thus reducing power consumption and complexity. The advancements are significant for military applications and highlight China's expanding capabilities in underwater communication amid growing tensions with NATO.
https://www.scmp.com/news/china/science/article/3275418/huaweis-polar-code-beats-nato-protocol-south-china-sea-submarine-communication-test?utm_source=rss_feed
China's robot makers chase Tesla to deliver humanoid workers
Japan Times
China is leading the electric vehicle market and is now focusing on developing battery-powered humanoid robots that could replace human workers on assembly lines. At the World Robot Conference in Beijing, numerous Chinese companies showcased humanoid robots designed for factory and warehouse work, along with the necessary precision parts. This initiative follows the successful strategy used in China's initial electric vehicle push, which involved government support, intense price competition from numerous new companies, and a robust supply chain.
https://www.japantimes.co.jp/business/2024/08/23/tech/china-robot-makers-humanoids/
‘Millions benefited’: why generations see Deng Xiaoping as the architect of modern China
South China Morning Post
As China marks the 120th anniversary of Deng Xiaoping's birth, his legacy remains significant across various generations. The second part of a three-part series highlights the transformative impact of Deng’s policies, particularly the economic reforms initiated in the late 1970s. Mindy Guo, who left her secure job in Beijing for Shenzhen in 1990, epitomizes the bold spirit of her generation, which ventured into new economic landscapes shaped by Deng’s opening-up policies. Guo’s career trajectory from an assistant earning 8,400 yuan to a general manager with a salary of 800,000 yuan illustrates the opportunities created by Deng’s reforms, which are fondly remembered by many as a time of unprecedented growth and stability.
Deng Xiaoping is credited with revitalizing China after the political chaos of the Cultural Revolution, implementing extensive reforms that prioritized economic growth over strict adherence to Maoist ideology. By loosening state control, allowing private ownership, and encouraging foreign investment, Deng fostered an environment where entrepreneurship could thrive. The introduction of special economic zones and the resumption of higher education, including the reinstatement of the gaokao exam, enabled many to pursue their aspirations, thereby transforming the socio-economic fabric of the country. While older generations appreciate the stability and growth Deng facilitated, younger generations often take these advancements for granted, lacking direct experience of the struggles faced prior to his reforms.
Today, under Xi Jinping's leadership, the challenges confronting China are markedly different. Economic slowdowns, widening wealth gaps, and increasing dissatisfaction among the populace highlight a divergence from Deng's era of optimism and opportunity. While Deng's policies encouraged risk-taking and individual growth, the current atmosphere is characterized by a preference for state-sector employment amidst high unemployment rates and a growing sense of disillusionment among younger citizens. Xi’s nationalistic vision contrasts with Deng's approach of fostering individual prosperity, creating a disconnect between the aspirations of the populace and government objectives. This shift raises questions about the future trajectory of China as it navigates both internal and external challenges.
https://www.scmp.com/news/china/politics/article/3275485/millions-benefited-why-generations-see-deng-xiaoping-architect-modern-china?utm_source=rss_feed
Harris adviser Deese calls for Marshall Plan on clean energy
Yahoo US
Brian Deese, an economic adviser to Vice President Kamala Harris, proposed a new economic program to provide loans to allies for purchasing U.S. green energy technologies, akin to a modern Marshall Plan to combat climate change. Deese emphasized the need for a Clean Energy Finance Authority to facilitate these loans and promote U.S. leadership amid global tensions. He also advocated for tariffs favoring countries that reduce emissions and the establishment of a strategic mineral reserve to secure essential materials for clean technologies. His ideas reflect potential policies for a future Harris presidency.
https://www.yahoo.com/news/harris-adviser-deese-calls-marshall-213639590.html
Court to decide who can see secret evidence U.S. has filed against TikTok
NPR
The U.S. government and TikTok are fighting over who should be able to see secret evidence at the core of the government's push to ban the popular social media app.
For more than four years, federal officials in Washington have outlined a case against TikTok in broad and general terms: that since the app’s parent company, ByteDance, is based in China, TikTok’s algorithm and data-collection practices could potentially be weaponized by the Chinese Communist Party.
But when pressed for specific examples of this, or smoking-gun evidence that China would manipulate what TikTok’s 170 million Americans view every day, the government cites none. Instead, in a recent filing the Justice Department relies on unspecified fears that “ByteDance could be expected to comply with demands by the Chinese government to manipulate the algorithm,” referring to laws in China that would leave TikTok no choice but to bend to the demands of Beijing.
On Thursday, TikTok’s lawyers filed a new submission in its lawsuit against the Biden administration seeking to halt the law that would shut down the app by January unless it is sold. In it, TikTok’s legal team asks for a “special master” to be appointed to sift through the government’s classified materials about TikTok.
TikTok has estimated that up to 30% of certain government filings have been redacted.
“The government then faces a choice: comply with the procedures, or withdraw the secret evidence,” TikTok’s lawyers wrote in the Thursday filing.
Justice Department lawyers are fighting back, arguing that a special master, who would be a federal judge, would cause delay in a case that needs to be resolved quickly.
A three-judge federal appeals court panel in Washington is set to rule on the issue in the coming weeks.
Former Justice Department officials say the law will likely be on the government’s side in keeping the classified material about TikTok secret, but underscore the necessity for the public to know why the hugely popular app is being targeted.
“It’s about the public’s legitimate interest in being informed about the nature of the threat posed by Chinese ownership of the app,” said Carrie Cordero, a former Justice Department national security lawyer. “On that front, from a policy perspective, Congress should have required more transparency before passing the law. But it didn't.”
Andrew Weissmann, who served as a lead prosecutor in Robert Mueller’s Special Counsel Office, agrees that even if there is a principled case to be made for the public knowing the full case against TikTok, the app is going to have an uphill battle.
“The law in general is very favorable to the government if they can assert that something would affect the public’s national security interest,” Weissmann said. “The problem is, when someone’s rights are affected, the courts should play a role in assuring that the government’s assertions are factually supported and not overbroad.”
The DOJ has a counter proposal. Rather than appoint a special master, they recommend a one-sided approach called “ex parte,” where the secret evidence would be viewed only by the federal court and not TikTok.
“The classified information discussed in the government’s brief provides the additional, highly sensitive, and non-public context and grounding that helped Congress and the executive branch properly evaluate the magnitude and gravity of those publicly articulated risks. This Court should have the same opportunity,” the Justice Department wrote earlier this month in a court filing.
What’s more, the Justice Department argues that declassifying the evidence could cause “exceptionally grave” damage to American national security.
TikTok says it has spent more than $2 billion on a plan U.S. officials signed off on in 2022, but had never finally approved, known as Project Texas, aimed at allaying Washington’s national security concerns by tapping Austin-based software company Oracle to supervise the app’s data.
The company insists that with Project Texas in place, the TikTok Americans use cannot be meddled with by ByteDance employees. The Justice Department says this is not true.
According to the Justice Department, TikTok has gathered data on American users’ opinions on issues like gun control and abortion. And the company has shared that data with ByteDance employees in China. Justice officials also say Beijing-based employees can tinker with TikTok’s algorithm and amplify content.
Weissmann, the former Mueller prosecutor who was also the former general counsel for the FBI, said the Justice Department is requesting that the court view what Congress saw in classified briefings. Whether any of that material can be viewed by TikTok, or the public, will not be up to a three-judge panel.
“Whether something is a state secret should not be unilaterally decided by the government, but the courts,” he said. “But that doesn’t mean the public should be entitled to it.”
https://www.npr.org/2024/08/22/nx-s1-5085173/tiktok-ban-secret-evidence-u-s-classified-court
Panama unveils deportation flights to China, India and Ecuador to stem US-bound migration
South China Morning Post
Panama's government has announced new deportation flights for migrants apprehended in the country, targeting individuals from China, India, and Ecuador, as part of efforts to curb the flow of mostly US-bound migration. President Jose Mulino, who recently took office and promised to reduce Panama's role as a migrant transit hub, shared the news during a press conference. The deportation flights, funded by the US, began earlier this week with Colombian migrants. With the US presidential election approaching, unlawful migration has become a significant topic. Migrants often navigate the perilous Darién Gap jungle to reach the US. While Mulino mentioned scheduled flights to Ecuador on August 29, to Colombia on August 30, and to India on September 3, he did not clarify the legal status of the migrants involved or details regarding flights to China.
https://www.scmp.com/news/world/americas/article/3275536/panama-unveils-deportation-flights-china-india-and-ecuador-stem-us-bound-migration?utm_source=rss_feed
Black Myth: Wukong’s popularity brings unexpected windfall, fame to low-profile developer
South China Morning Post
Black Myth: Wukong, developed by Game Science, has emerged as China's first AAA video game, gaining immense popularity worldwide after six years of development. Founded in 2014 by Feng Ji, a former Tencent designer, the game is based on the Monkey King from the classic novel Journey to the West. With a small initial team, it grew to 140 members, successfully attracting global players and hitting 2.22 million concurrent users on Steam shortly after release. Despite China's strict gaming regulations, its success highlights a significant shift towards high-quality, single-player titles in the industry.
https://www.scmp.com/tech/big-tech/article/3275526/black-myth-wukongs-popularity-brings-unexpected-windfall-fame-low-profile-developer?utm_source=rss_feed
Beyond tech, the US-China AI race is a tussle over ethics
South China Morning Post
The US and China are competing for AI dominance, each with distinct strategies. The US leads in machine learning and workforce development, aiming to enhance its skilled labor force, while China has overtaken the US in AI research output and focuses on computer vision and health tech. Both nations invest significantly in AI for military applications and ethical frameworks, impacting global standards. The competition not only shapes technology and economic policies but also raises ethical concerns, with the US emphasizing responsible AI development and China prioritizing efficiency and state objectives.
https://www.scmp.com/opinion/china-opinion/article/3275130/beyond-tech-us-china-ai-race-tussle-over-ethics?utm_source=rss_feed
China, Russia plot course for Arctic cooperation, shipping routes to counter West
South China Morning Post
China and Russia are advancing their economic cooperation, especially in Arctic shipping routes, to counter Western pressures. During a meeting in Moscow, Chinese Premier Li Qiang and Russian PM Mikhail Mishustin signed a communique to enhance partnerships in oil, gas, science, and technology. Both nations emphasized mutual sovereignty and condemned unilateral sanctions. They aim to reduce reliance on the US dollar and expedite the Power of Siberia 2 gas pipeline project. Additionally, they discussed allowing Chinese ships access to the lower Tumen River, expressing caution about increased Chinese influence in the region.
https://www.scmp.com/news/china/diplomacy/article/3275490/china-russia-plot-course-arctic-cooperation-shipping-routes-counter-west?utm_source=rss_feed
China's self-driving startup WeRide delays U.S. IPO as deadline looms
CNBC
Self-driving technology company WeRide delayed its plan for an initial public offering in the U.S., citing its need for more time to complete documents.
"Updating transaction documents is currently taking longer than expected, and WeRide is working to complete the documentation necessary to move forward with the transaction," the company said in a statement Thursday.
WeRide was expected to offer 6.5 million ADS (American depositary shares) in the range of $15.50 to $18.50. It was looking to raise up to $440 million in a U.S. listing that had been set for this week.
The company, which develops self-driving technology for robotaxis, minibuses as well as freight sanitation vehicles, was last valued around $5.11 billion and has raised $1.39 billion, according to Pitchbook data.
Beijing approval for the deal will expire this week and it's unclear if the company would need to reapply for approval if it misses the deadline.
The firm was founded in Silicon Valley in 2017 and incorporated in the Cayman Islands, before it launched a robotaxi service in Guangzhou, China, in 2019. It filed for an IPO on the Nasdaq in July.
It has been a dry market for Chinese IPOs in the U.S. in recent years, and many were watching WeRide's potential listing for signs of pick up. If completed, the IPO would be one of the largest U.S. listings by a Chinese company since Didi's IPO in 2021.
https://www.cnbc.com/2024/08/22/chinas-self-driving-startup-weride-delays-us-ipo-as-deadline-looms.html
More than 150,400 Hongkongers have moved to UK using BN(O) pathway
South China Morning Post
Since the launch of a bespoke immigration pathway in 2021, over 150,400 Hongkongers have moved to Britain, with 26,400 emigrating in the past year. However, the number of applications and visas granted has been declining. In the second quarter of this year, the UK received 5,700 applications and granted 7,664 British National (Overseas) visas, a significant drop from the peak of nearly 40,000 visas granted in the same period three years ago. The decline in applications is notable as the pathway was established in response to the imposition of a national security law by Beijing in 2020, which prompted the UK to offer this visa option to residents of Hong Kong. The visa allows successful applicants and their dependents to live, work, and study in Britain for up to five years, after which they may apply for citizenship. The UK Home Office plans to review the visa policy in October next year. Additionally, in the latest quarter, there were only eight asylum seeker applications from Hong Kong, with no grants of protection issued.
https://www.scmp.com/news/hong-kong/politics/article/3275525/more-150400-hongkongers-have-moved-uk-using-bno-pathway?utm_source=rss_feed
In China, a woman’s custody battle spotlights challenges facing same-sex couples
South China Morning Post
Zhang Peiyi has been fighting for visitation rights to see her daughter after a difficult separation from her ex-wife, who has denied her custody of both children. Despite securing a court order for monthly visits, her ex-wife called off the meetings after Zhang’s first visit in July. The lack of legal protections for LGBTQ families in China complicates custody disputes, as same-sex marriage is not recognized, and laws around parentage are unclear. Courts typically favor biological parents in such cases, leaving non-biological parents like Zhang vulnerable. Each court ruling appears inconsistent, with some courts denying custody to non-biological parents entirely. Zhang's lawyer, Gao Mingyue, highlights the absence of legal standards for same-sex families, leading to ambiguous outcomes. To navigate this legal landscape, some LGBTQ couples are drafting agreements similar to prenuptial contracts to outline parental rights. Despite her struggles, Zhang remains determined to document her experience for her children, hoping they will understand her efforts one day. The emotional toll of her situation is evident, as she continues to fight for her rights while maintaining the children's privacy.
https://www.scmp.com/news/china/article/3275509/china-womans-custody-battle-spotlights-challenges-facing-same-sex-couples?utm_source=rss_feed
Ping An Insurance surprises market with profit report on growth in life, general policies
South China Morning Post
Ping An Insurance, China's largest insurer by market value, reported better-than-expected interim results for the first half of 2024, with a net profit increase of 6.8% to 74.62 billion yuan (US$10.5 billion), marking its best half-year performance in four years. Analysts had anticipated a 12% decline. The company's life and health insurance divisions saw an 11% growth in new business value, reaching 22.32 billion yuan. Despite challenges, Chairman Peter Ma noted the stability of China's economy and the company's focus on high-quality development and digital transformation.
Ping An's property and casualty insurance profits rose by 7.2% to 9.95 billion yuan, while the banking division increased earnings by 1.9% to 25.88 billion yuan. These gains offset declines in asset management profits (down 14.7%) and technology-related ventures (down 61.2%). The insurer maintained an interim dividend of 0.93 yuan per share. Ping An has benefited from China's monetary easing policies, which increased demand for investment-linked insurance, and has seen growth in rental income from its investment properties. The company has also expanded its healthcare initiatives, partnering with top hospitals and employing numerous healthcare professionals.
Despite a slight decline in stock performance this year, analysts expect steady growth for Ping An's core businesses in the second half, though interest rate trends may impact investment performance.
https://www.scmp.com/business/article/3275511/ping-insurance-surprises-market-profit-report-growth-life-general-policies?utm_source=rss_feed
China names healthcare, education, tech as likely venues for more foreign investment
South China Morning Post
China has pledged to enhance market access in sectors such as healthcare, education, and technology to attract foreign and private investment, aiming to stabilize economic growth. A new negative list detailing restricted sectors was approved, alongside a 10-point guideline promoting better alignment of domestic and foreign investment access. The guidelines emphasize orderly openings in non-security-related service industries and highlight "new industries" like deep-sea technology and artificial intelligence. This initiative follows a significant decline in foreign investment and slower GDP growth, with businesses calling for tangible actions to support these promises.
https://www.scmp.com/economy/china-economy/article/3275500/china-names-healthcare-education-tech-likely-venues-more-foreign-investment?utm_source=rss_feed
Baidu, SenseTime lead China’s market for business-focused large language models, says IDC
South China Morning Post
A report from market research firm IDC indicates that Chinese AI companies Baidu, SenseTime, and start-up Zhipu AI are leading providers of business-oriented large language model (LLM) services in China. Baidu AI Cloud holds the largest market share at 19.9%, generating 350 million yuan ($49 million) in revenue in 2023, followed by SenseTime with 16% and Zhipu AI, although its exact share was not disclosed. The overall size of China's LLM market for business was 1.76 billion yuan in the previous year, which is considered small due to nascent investments and a cautious approach by many companies.
LLMs are crucial for generative AI services like ChatGPT, and IDC predicts significant changes in the market over the next few years. Baidu's Ernie LLM platform serves 150,000 clients and has facilitated the development of 55 applications. Competition is fierce among Chinese AI firms, with ByteDance and Alibaba also being major players in AI infrastructure. Despite the growth in enterprise use, consumer interest in generative AI appears to have leveled off, with only Baidu's Ernie Bot and ByteDance’s Doubao surpassing 10 million monthly active users. However, a survey indicated that 83% of respondents in China have used generative AI, suggesting a strong engagement compared to the global average of 54%.
https://www.scmp.com/tech/tech-trends/article/3275475/baidu-sensetime-lead-chinas-market-business-focused-large-language-models-says-idc?utm_source=rss_feed
Japanese citizen indicted on suspicion of espionage, China confirms
Japan Times
Chinese prosecutors have indicted a Japanese citizen on suspicion of espionage, according to the Chinese foreign ministry. The indictment pertains to a Japanese employee of Astellas Pharma, and the ministry emphasized that the rights of the individuals involved will be protected. This development comes amid strained relations between China and Japan, which have been exacerbated by territorial disputes and Japan's decision to release treated water from the Fukushima No. 1 nuclear plant into the ocean.
https://www.japantimes.co.jp/news/2024/08/22/japan/japanese-citizen-china-espionage-indictment/
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