What is behind the 40% drop in China's U.S. Treasury holdings; Gallup withdrawing from China
Japan, Philippines, U.S. team up in South China Sea, Kishida says; Ex-Taiwan military chief says U.S. help will take 'weeks' in crisis
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What is behind the 40% drop in China's U.S. Treasury holdings?
Nikkei Asia
China's holdings of US Treasuries fell to their lowest level in 14 years at the end of August. Some analysts believe that China's monetary authorities are selling US Treasuries to support the yuan, while others blame them for the recent bond rout in the US. China's stockpile of US government debt totalled $805.4bn in August, down 40% from a decade earlier. If China continues to reduce its Treasury holdings, it could push up bond yields and be a matter of concern for the US Federal Reserve.
Why China and Australia Are Reconciling. Sort of.
NY Times
Australia's prime minister, Anthony Albanese, is visiting Beijing for a three-day meeting with China's President, Xi Jinping, as a small step towards economic and diplomatic stability after years of tension between the two countries. Although the two countries are seeking to stabilise their relationship, there is still anxiety and security concerns. However, since the new Australian government came into power, there has been a recalibrated pitch for improving relations from China's ambassador to Australia. As a result, China has agreed to review or remove the tariffs and trade bans that cost several Australian industries billions of dollars. The products on the way back to China include coal, barley and timber, with wine and lobster exports potentially resuming in a few months. However, tensions remain and the recent survey found that 75% of Australians see China becoming a military threat to Australia in the next 20 years.
US consultancy Gallup withdrawing from China -FT
Yahoo US
Consultancy firm Gallup is closing its operations in China, according to reports. The Washington-based company has informed clients that it will be shutting down its offices in Beijing, Shanghai, and Shenzhen. It is unclear whether Gallup will retain any of its local employees. The firm provides research and analysis to companies for marketing purposes.
China Accuses US of Encouraging Provocations in South China Sea
Bloomberg
China has accused the US of encouraging provocations by other countries in the South China Sea during talks on maritime issues. Chinese officials expressed concerns over increased US military deployment in the region and close reconnaissance. The talks aimed to ease tensions and both sides called for better communication and management of the maritime situation. China called on the US to respect its territorial sovereignty and maritime rights and to stop intervening in regional maritime controversies. US President Joe Biden and China's leader, Xi Jinping, are preparing to meet during the Asia-Pacific Economic Cooperation summit later this month.
France frets as China strengthens ties with allies in South Pacific
RFI
China's economic influence over Pacific island nations is diminishing due to better loan deals offered by countries allied with the US, particularly Australia, according to the Lowy Institute. The report highlights concerns about China's growing influence in the South Pacific, following a security pact with the Solomon Islands. The decline in Chinese aid is driven by a lack of interest from Pacific governments in Chinese loans, which have left many nations heavily in debt. The US has warned that Chinese finance is a debt trap that threatens the sovereignty of poor countries.
7-Eleven Japan to use generative AI to speed production planning
Nikkei Asia
Seven-Eleven Japan, the country's largest convenience store chain, will begin using generative artificial intelligence (AI) for product planning. The company will use AI to generate texts and images for new products based on analysis of store sales data and consumer feedback through social media. This is expected to reduce the time required for product planning by up to 90% and align product distribution with emerging trends and customer needs. The AI system will process data from customer sales, product manufacturers, and social media. The company expects AI to generate draft proposals for new products, streamlining the product development process and saving time for employees.
Japan, Philippines, U.S. team up in South China Sea, Kishida says
Nikkei Asia
Japanese Prime Minister Fumio Kishida has said that Japan, the Philippines and the US are cooperating to protect the freedom of the South China Sea. Kishida also announced that Japan will provide the Philippines with coastal surveillance radars, the first cooperation project under its Official Security Assistance programme. Kishida's visit to the Philippines follows a meeting with the president, Ferdinand Marcos Jr, during which they agreed to start negotiations on a reciprocal troop access deal to strengthen military cooperation, as China becomes more assertive in the region.
Ex-Taiwan military chief says U.S. help will take 'weeks' in crisis
Nikkei Asia
The US would likely take weeks to reach Taiwan should China invade, former Taiwanese military chief Lee Hsi-min has said. He urged Taiwan to focus more on smaller, mobile weapons to better fend off an initial attack. Lee argued that Taiwan's forces should shift away from their current focus on large warships, tanks, and fighter jets, and instead build a large arsenal of mobile precision weapons. The former admiral also suggested targeting Chinese troops with ground-to-ship missiles and missile boats as they approach Taiwan's coast and using guerrilla tactics once they land.
UK university returns warrior skulls to Taiwan’s Indigenous Paiwan people
Al Jazeera
The University of Edinburgh has returned the skulls of four Paiwan warriors to Taiwanese Indigenous leaders, marking the first repatriation of its kind for Taiwan. The move comes as the university and other European institutions grapple with their colonial past. The skulls were returned to representatives of Taiwan’s Council of Indigenous People and the head of Mudan township, where the warriors were killed in 1874. The skulls had been taken to Japan as trophies by an American military adviser before being given to the university in 1907. The Paiwan are Taiwan’s second-largest Indigenous community.
Australian premier to protest blogger’s vague detention conditions while meeting Chinese president
Associated Press
Australian Prime Minister Anthony Albanese has said he will raise the case of detained Australian democracy blogger Yang Hengjun, who has been held on espionage charges without conviction in Beijing for almost five years, when he meets with Chinese President Xi Jinping on Monday. Yang’s family fears he is dying. The Chinese Foreign Ministry has defended Yang’s prosecution, insisting the case has been handled in strict accordance with the law.
China basic pension fund posts 0.33% investment gain in 2022
Yahoo US
China's basic pension fund, managed by the country's social security fund, saw a gain of 5.1 billion yuan ($770 million) in 2022, a decrease from the 4.9% gain in 2021, according to the National Council for Social Security Fund. The decrease in yield was attributed to changes in the global economic and political situations and increased market volatility. China's stock benchmark CSI 300 fell 21.6% in 2022 and is down 7.4% so far this year. The basic pension fund managed a total of 1.62 trillion yuan by the end of 2022 and has seen an average annual gain of 5.4% since 2016.
Albanese's trip to China reignites trade talks with Xi Jinping amidst improving ties
ABC
Australian Prime Minister Anthony Albanese is set to become the first Australian leader to visit China since 2016, as he travels to Shanghai and Beijing. The trip has been hailed as evidence of improving relations between the two countries. The PM's main objective will be to lobby for China to remove trade tariffs on Australian wine. The Chinese government announced last month that it would review the 220% tariffs, which led to a significant decrease in the value of Australian wine exports to China. The detention of Australian writer Yang Hengjun will also be discussed.
Chinese cancer drug makes historic foray into US amid medicine crisis
South China Morning Post
The US Food and Drug Administration (FDA) has approved the first Chinese antibody drug, toripalimab, to treat nasopharyngeal carcinoma, a form of cancer that starts behind the nose in the upper part of the throat. The approval marks a shift in US reliance on China for cancer drugs, as the country has experienced shortages and has increasingly turned to China for research and development of drugs. The drug is designed to bind to the PD-1 receptor on immune cells to allow the immune system to activate and kill tumours. Shanghai Junshi Biosciences developed the drug in partnership with California-based Coherus BioSciences. The drug may also be approved to treat other forms of cancer in the future. Toripalimab received approval from the Chinese National Medical Products Administration in 2018 and has been approved for melanoma, bladder, oesophageal and non-small cell lung cancer.
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