Why China's Chip Industry Still Has Power Despite Export Curbs; Exclusive Insight: AUKUS Fallout: France's Quest for Autonomy Amid Geopolitical Upheaval
Bangladesh finds way to pay Russia for nuclear plant: with yuan; Why America Still Needs Europe
Welcome to this issue of The China Brief. Today is April 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.
And here’s today’s exclusive insight:
Exclusive Insight: AUKUS Fallout: France's Quest for Autonomy Amid Geopolitical Upheaval
In September 2019, Australia, the United Kingdom, and the United States astutely established the "AUKUS" security agreement, encompassing intelligence sharing, state-of-the-art military defense technology, and reciprocal access to advanced technology, industries, and markets.
Addressing the ascent of China, this security accord carries substantial geopolitical implications for the Asia-Pacific region. France, however, found itself unprepared for the consequences. Economically, the US and UK supplanted France's contract to manufacture nuclear submarines for Australia. Politically, France uncovered its exclusion from the core group of "true allies," which demanded a measured response.
France grappled with the ramifications of this perceived treachery when the Russia-Ukraine conflict ensued. Sanctions imposed on Russia resulted in the European Union losing crucial energy supplies, putting the EU's economic stability at risk. The situation worsened with the explosion of the Nord Stream gas pipeline. Under these circumstances, not only sustaining but also advancing the EU's economy appeared increasingly challenging. Europe now confronts the prospect of purchasing energy from the US at escalated prices, while EU nations shoulder the responsibility of providing continuous, costly assistance to Ukraine.
Macron's compelling speech, a product of profound reflection and genuine sentiments, underscores France and Europe's pursuit of economic and political self-determination and their endeavors to reestablish historical significance amid a formidable expedition.
Macron, facing millions of domestic protesters, has incited extensive criticism across the Atlantic with his stance of "not being an American vassal." Fortunately, as Biden is 79, Trump is 77, Putin is 71, and Macron is a mere 46 years old, the possibility of forming alliances beyond traditional spheres may arise.
(This article represents the fourth entry in the series "Why Macron Shows Goodwill to Xi Jinping at This Time," penned by Ma Ya, author of the biography of Ma Hong, and is exclusive to The China Brief.)
Bangladesh finds way to pay Russia for nuclear plant: with yuan
Nikkei Asia
Bangladesh will pay Russia the $110m it owes for the under construction Rooppur nuclear power plant in Chinese yuan due to US and EU sanctions that limit Russia's access to the international banking system. The decision was reached between Russia and Bangladesh's Ministry of Finance.
Beijing says envoy to Manila ‘misquoted’ on Filipino workers’ safety in Taiwan
South China Morning Post
The Chinese ambassador to the Philippines, Huang Xilian, has said his call for Manila to unequivocally oppose "Taiwan independence" was misconstrued. The ambassador's remarks stirred controversy after he highlighted Manila's decision to grant the US wider access to certain military bases that were causing "grave concern among Chinese people". Huang Xilian pointed out that the Philippines should not stoke tensions by offering the US access to military bases near the Strait of Taiwan if it cares about the 150,000 overseas Filipino workers currently there. However, Filipino officials rebuffed the comments, reiterating that the One China Policy was being observed.
Ukraine updates: Chinese defense minister meets with Putin
DW
China and Russia's military cooperation is of "special" and "strategic" importance, China's defence minister, Li Shangfu, has said at a meeting with Russian President Vladimir Putin. China, which has presented itself as a neutral party regarding Russia's invasion of Ukraine, has been accused of tacitly supporting Russia's campaign by Western governments. Putin said that "trusting" and "strategic" military cooperation between the two nations would continue. The trip will last until 19 April.
What does the Shanghai Auto Show have in store for Chinese consumers?
South China Morning Post
Over 70 new electric vehicles (EVs) will debut at this year's Shanghai Auto Show, signalling the country's continued push towards EVs as big car manufacturers are set to display their answer to Tesla's Model 3 and Model Y in Shanghai. Exhibitors at the show will highlight digitalisation, intelligence, and electrification through their innovative products, as well as autonomous driving technology in the coming years. This year's event is expected to attract over one million people, further highlighting the increasing demand for EVs in China.
Exclusive: Hikvision internal review found contracts targeted Uyghurs
Axios
Hikvision, the Chinese video surveillance giant, has known since at least 2020 that contracts it signed with police agencies in the north-western region of Xinjiang included requirements such as targeting ethnic Uyghurs and installing cameras in religious facilities, according to a recording of a recent company meeting obtained by IPVM, a technology trade publication, and seen by Axios. Procurement documents reveal that Hikvision cameras have been installed throughout Xinjiang, including in mass detention facilities, and subsequently have led to the detention of Uyghurs. The footage has also been used by the authorities to justify the areas’ security measures. Hikvision denies complicity in human rights abuses in the region. The Chinese government has been accused of committing genocide and widespread detention of Uyghurs in Xinjiang.
Chinese basketball teams fined 5 million yuan, officials banned over match-fixing
South China Morning Post
The Shanghai Sharks and Jiangsu Dragons basketball teams have both been fined CNY5m ($727,135), their officials banned for years, the clubs kicked out of the competition and their results for the season erased following revelations of match-fixing in the play-offs. Sharks head coach Li Chunjiang and Dragons head coach Li Nan were both banned from coaching for five and three years, their general managers banned from any basketball-related activity for three and five years. The CBA declared the clubs had played "in a negative way". Fans largely supported the decision, although a few felt the punishments needed to be harsher.
EU climate chief cancels China trip after positive Covid-19 test
South China Morning Post
Frans Timmermans, the European Union’s top climate official, has cancelled his planned visit to China due to testing positive for Covid-19. Timmermans was due to resume talks with Beijing’s climate chief Xie Zhenhua about bilateral collaboration on climate-related areas. However, the trip had to be postponed after Timmermans failed a PCR test. It comes after EU foreign policy chief Josep Borrell also cancelled a trip to China last week after testing positive for Covid-19. Both officials want to reschedule their trips to China, but it is unclear when they will be able to take place due to busy schedules and logistical challenges.
FTSE 100 hits over one-month high on commodity boost; Network International soars
Reuters
The FTSE 100 rose for the seventh consecutive session, driven by gains in miners and oil stocks as investors monitored Chinese economic data for signs of recovery. Energy stocks added 1.3% on steady crude prices, while metal miners rose 1%. The FTSE 100 has gained for four straight weeks, with investors showing interest in commodity-linked and recession-safe sectors. The FTSE 250 added 0.6%, largely due to a surge in shares of Network International on a buyout offer.
‘I am Taiwanese’: China threat toughens island’s identity
Japan Times
Taiwan has forged a unique identity separate from China's. Polling from Taiwan's Election Study Center shows that 60% of residents feel that they are distinctively Taiwanese, three times as many as in the 1990s, while attachment to Chinese identity has fallen dramatically from 25% to less than 3%. Taiwanese people have responded to the increasing threat from Beijing by asking themselves who they are and what they are defending. However, opposition to China is not the sole driving force; "political reformation" has created "the roots for a more open and prosperous society", said Sydney Yueh from the University of Missouri.
Chinese national arrested on blasphemy charges in Pakistan
Toronto Star
Police in Pakistan have arrested a Chinese national on blasphemy charges after he was accused of insulting Islam and the Prophet Muhammad. Under Pakistan's controversial blasphemy laws, the offense carries the death penalty. The man was identified only as Mr. Tian from China and was arrested after hundreds of residents and laborers working on a dam project rallied to demand his arrest. Videos circulating on social media showed an angry mob demonstrating outside a compound housing Chinese and Pakistani construction workers.
Hong Kong bishop visits Beijing in historic trip amid Sino-Vatican tension
Reuters
Hong Kong's top Catholic bishop, Stephen Chow, is due to visit Beijing on Monday, the first visit by a bishop of the former British colony to the Chinese capital in almost 30 years. The visit comes after China unilaterally appointed a new bishop to Shanghai, a move that angered the Vatican, which had not been consulted. The Vatican has accused China of violating a bilateral agreement over the appointment of bishops, renewed last year. Vatican officials have said the agreement does not apply to Hong Kong. The visit by Bishop Chow was arranged by the Bishop of Beijing.
Russians brag that only 1 per cent of fake social media profiles are caught, leak shows
The Sydney Morning Herald
The Russian government is successfully using social media and search engines to promote lies about Ukraine’s military and vaccine side effects, according to an analysis cited in leaked documents. The reports suggest that Russian propaganda is being disseminated through hundreds of thousands of fake social media and online search accounts that are detected only 1% of the time. The documents were circulated in a Discord chatroom and were presented to US military leaders. The analysis is undated, but is believed to cite Russian activity in late 2022. The documents suggest that Russia has improved its dissemination of propaganda worldwide, with botnets appearing to allow the country’s messages to evade detection. Experts have called for platforms to work with each other and the US government to assess the situation.
Macron is wrong to see China and Russia as separate concerns
Nikkei Asia
French President Emmanuel Macron's recent trip to China highlighted his vision of strategic autonomy for Europe, which prioritizes security within the continent while seeking economic benefits from Beijing. Macron's visit also emphasized his stance on not getting involved in any conflict over Taiwan.
Porsche posts record Q1 sales rise boosted by China
Reuters
Porsche has reported a YoY sales increase of 18% in Q1 2021, boosted by sales in China, where the German luxury carmaker delivered 21,365 vehicles, a YoY increase of 21%. This result helped to drive worldwide deliveries up to 80,767 cars during the period, with an increase posted in every region. SUV models such as the Macan and Cayenne as well as the Porsche 911 sports car proved the most popular among customers.
In break from past, ByteDance buy-back price for staff shareholders sees no rise
South China Morning Post
ByteDance has offered a share buyback programme for its employees at a steady $155 per share price, which has remained the same since late 2021, and is its rare instance of not raising the buy-back price since it began making such offers in 2017. The move comes as the company's total valuation is in decline. In August 2022, CFO Julie Gao told employees that ByteDance had no plans for a public listing. TikTok is facing mounting pressure after the US threatened to ban the app, citing national security concerns.
Australia says Chinese relations won’t improve to past highs
Associated Press
Australia's foreign minister, Penny Wong, has said that while steps to stabilise relations with China are being made, the country's economic relationship with its biggest trading partner cannot return to the level it was at under conservative Prime Minister John Howard from 1996 until 2007. During that time, the economic relationship with China was separated from political and strategic priorities, which Wong said cannot be replicated in a world where there is no clean separation between the countries. Trade relations have been impacted by China's series of official and unofficial trade barriers to Australian exports in response to Australia's call for an independent investigation into the causes of and responses to the COVID-19 pandemic.
Baijiu distiller eyes up to US$811 million in biggest Hong Kong IPO of year
South China Morning Post
Beijing-headquartered Chinese baijiu (distilled liquor) maker ZJLD has kicked off an IPO that could raise $811m and become Hong Kong's biggest flotation this year. ZJLD is selling up to 490.7 million shares at HK$10.78 ($1.38) to HK$12.98. The offering would give shareholders international access to a market that operates at higher P/E multiples than local-listed market leaders Kweichow Moutai and Wuliangye Yibin, analysts said. The listing is expected to begin share trading on 27 April.
Chinese property prices rise ahead of first-quarter GDP release
Financial Times
New home prices in China rose at the fastest month-on-month pace in 21 months in March, following figures that showed a positive trend in exports. The latest figures provide a glimmer of hope for China's property sector, which has been blighted by a liquidity crisis in the past two years that has caused several developers to default. However, economists warn of an uneven recovery, with concern that a driver of economic and jobs growth - services - has still not fully picked up. China last week reported lower than expected consumer prices for March.
EV batteries: Can the West catch up with China?
DW
Chinese firms, including BYD, Geely and Nio, will showcase electric vehicles (EVs) at the upcoming Shanghai Auto Show in China, having cemented their position in the world’s biggest EV market. As many as two-thirds of all new cars sold in the US by 2032 will need to be electric, under new rules proposed by the Biden administration to help combat climate change. Meanwhile, the EU plans to effectively ban the sale of new petrol and diesel vehicles from 2035. These ambitious plans are set to cause a surge in demand for EV batteries; to stay ahead, governments and firms are racing to secure their own supplies. Although Europe is lacking scale and its raw materials sector is dependent on East Asian firms, the EV battery industry remains in flux, with opportunities open for firms advancing new technologies, such as solid-state batteries.
Arrested Australian feared Chinese spies were keeping tabs on him, court hears
South China Morning Post
An Australian accused of foreign interference and who is being held on remand was worried about two suspected Chinese intelligence agents while he was living in Shanghai before he returned to Australia after a decades-long career in China, according to his lawyer. Alexander Csergo, 55, was arrested in Bondi over the weekend in a case which relates to alleged acceptance of cash for the writing of reports which contained classified information for China relating to Australian defence, economic and national security arrangements. It is the second case brought under Australia’s 2018 foreign interference laws.
Why China's chip industry still has power despite export curbs
Nikkei Asia
China's Foreign Minister, Qin Gang, has warned Japan against limiting Chinese access to cutting-edge chip technology. The comments came as Japan announced export restrictions on equipment used to make semiconductors, thereby joining a US-led pact to limit access for Chinese companies to such technology. Qin criticised Japan, stating "Do not do unto others what you don't want done unto you". The US, the Netherlands, and Japan hold a near-monopoly on the global chip equipment market, and Chinese companies are some of their largest clients. The export restrictions could stimulate growth in China's domestic industry, but foreign chip equipment companies may find it difficult to fully cut ties with China, as they still generate significant revenue from the country.
King Dollar Isn’t Dethroned Yet, But There’s a Trade to Make Now
Bloomberg
Emerging market currencies may gain from a move away from the dollar towards alternative transaction schemes, according to Laurent Lequeu, head of portfolio management at Lumen Capital Investors in Singapore. The push away from the US currency is part of a long-term game, Lequeu said, but such a shift could be good news for local currency in emerging markets, especially in fixed income. The trend follows moves by several governments to try to establish alternative, non-dollar payment structures, including Brazil's Luiz Inacio Lula da Silva, who cited closer ties with China as a way to challenge US and European institutions and norms in global finance.
Factbox: Tesla's Shanghai plant, targeted by worker protest, is key hub for EV maker
Reuters
Workers at Tesla's Shanghai factory have posted on social media asking for Elon Musk and the Chinese public's help after being told that their performance bonus has been cut. Tesla's Shanghai plant, which began operations in late 2019, is the company's largest manufacturing hub that employs some 20,000 workers and accounted for over half of Tesla's global output in 2020. Tesla's Gigafactory in Shanghai extended a holiday period in January, then cut output in December, to respond to rising inventory. On 4 February, an accident in the welding workshop at the Shanghai plant had resulted in a worker's death, and Tesla workers were told their performance bonuses were being cut because of the accident.
PLA on ‘high alert’ after US sends warship through Taiwan Strait
South China Morning Post
China's military has said it is closely monitoring the USS Milius, a US guided-missile destroyer, which sailed on a "routine" transit through the Taiwan Strait on 19 May. Senior Colonel Shi Yi said troops were "on high alert at all times" and would "resolutely" safeguard national sovereignty and security, as well as regional stability. Beijing, which views Taiwan as a renegade province awaiting reunification with the mainland, has conducted three days of military drills around the island in a show of force after Taipei's President Tsai Ing-wen visited the US earlier this month.
Hong Kong activist Wong jailed for 3 months over information breach
Reuters
Hong Kong democracy activist Joshua Wong has been sentenced to three months in prison after breaching a court ban on disclosing personal information about a police officer who opened fire during a protest in 2019. Wong, 26, rose to prominence in 2014 during student-led democracy protests in Hong Kong that lasted 79 days. An international figure, Wong was nominated for a Nobel Peace Prize in 2018. He is one of 47 pro-democracy figures charged with conspiracy to commit subversion under a national security law imposed by Beijing in 2020.
Lithium in China May Be Bottoming as Low Margins Hit Producers
Bloomberg
The Lithium market in China is showing signs of bottoming out as smaller producers take steps to stop their heavy losses. There's hope that the price of lithium batteries will stabilise and demand will recover in Q2 2021. The market has undergone a rollercoaster ride over the last two years which led to the market rising to a record of $86,910 per tonne in November 2020 before falling to $27,180 in April 2021.
G7 diplomats discuss Chinese military threats to Taiwan at Japan summit
Axios
The US Navy has sailed a warship through the Taiwan Strait after China’s military conducted live-fire drills around the island. The issue of the exercises around Taiwan was high on the agenda as the US Secretary of State Antony Blinken joined G7 foreign ministers in the Japanese resort town of Karuizawa, Nagano Prefecture. The diplomats agreed they “oppose any unilateral attempts to change the status quo by force, as well as to reaffirm the importance of peace and stability across the Taiwan Strait”.
South Korea’s Samsung considers ditching Google for Bing
South China Morning Post
Samsung is in talks to replace Google with Microsoft’s Bing as the default search engine on its devices, according to The New York Times. If the South Korean firm were to make the change, Google could reportedly stand to lose approximately $3bn in annual revenue. Microsoft has boosted Bing’s capabilities by incorporating OpenAI software into the search engine. Samsung may yet opt to retain Google, the report noted.
Washington Post
China's defense minister, Gen. Li Shangfu, has hailed the "substantial achievements" of cooperation with Russian military, and said that China is ready to deepen the partnership to "make new contributions to stability and security." Li's trip to Moscow follows a series of similar recent visits by top Chinese leaders, which have heightened concerns that China is ready to provide lethal aid in support of the Ukrainian invasion. Meanwhile, Warsaw is holding emergency talks with Kiev over a temporary ban on the import and transit of Ukrainian grain, following protests by farmers complaining of deflated prices.
The West Is Preparing for Russia’s Disintegration
Foreign Policy
Western analysts and dissidents are considering the decolonization of Russia, with some suggesting the country should be split into 41 different countries. Western analysts argue that when the Soviet Union disintegrated, the West failed to capitalize on the opportunity and it must now strategize to end the Russian threat once and for all. The claim is strengthened by Russia’s poor performance on the Ukrainian battlefield and the growing belief that Russian President Vladimir Putin’s nuclear threat should not be taken at face value. However, others fear a rump Russia could be a severe threat to global peace and security, due to its possession of almost 6,000 nuclear warheads and vast resources.
There have long been murmurs of discontent and resentment in parts of the Russian Federation. However, Russian citizens in autonomous republics do not necessarily want to leave the country, being anti-Putin does not necessarily mean being anti-Russia. For those states that do desire to leave the Russian Federation, there is no guarantee what follows will be democratic or friendly to the West. Some experts fear many regions of the Russian Federation already lean towards China. Additionally, there are concerns of civil wars and regional dictators fighting over Russian nukes. Russia’s disintegration is “highly improbable,” according to some experts, and insinuations in the West will only increase Putin’s appeal while boosting anti-Americanism.
China's imports of Australian coal surge on price advantage: Russell
Reuters
China's coal imports jumped to a three-year high in March, and data compiled by commodity analysts Kpler show a surge in imports from Australia. Australian 5,500 kilocalories-per-kg coal at Newcastle port is competitively priced against domestic supplies, which will allow China to become an increasingly important coal customer for Australia as politics continues to warp the global coal market that has seen China diversify into more expensive Russian coal imports. The question for the seaborne coal market is whether China's renewed interest in Australian coal is a sustainable trend, or whether it is simply opportunistic buying that will wither if price advantage of Australian coal slips.
Australian man back from China charged with foreign interference seeks bail
Reuters
The trial of a second person charged under Australia's foreign interference law has begun. Alexander Csergo is alleged to have written reports containing information about Australian defence, economic and national security arrangements, which he submitted to alleged foreign intelligence agents "Ken" and "Evelyn" in China. He is said to have received cash for the reports. Csergo's defence lawyer has challenged the prosecution's argument, saying that the reports were based on publicly sourced information and that cash payments for reports were common business practice in China.
China Property Crash Would Cap Growth at 3%: Bloomberg Economics
Bloomberg
A 15% decline in China's property market sector over the next year would derail economic growth, according to a Bloomberg analysis. Such a downturn would rage through the markets, creating global shockwaves akin to the 2015 stock market crash and currency devaluation. Having shrunk by 3% last year, China's GDP would grow by just 1.9% this year, with a contraction of 0.4% forecast for 2022. However, Beijing would be willing to increase its fiscal deficit by 2% to counteract any crash to this industry, economists Chang Shu, Eric Zhu and Ana Galvao wrote.
China, Russia, Pakistan, others push Afghan Taliban on terrorism
Nikkei Asia
Representatives of Afghanistan's neighboring countries, including China, Russia, Pakistan, and Iran, have held meetings in Uzbekistan to develop a joint strategy for countering security threats from the country. The Taliban's foreign minister, who is under a travel ban imposed by the United Nations Security Council, also attended the meetings. The group has been criticized for its reluctance to take action against various militant groups, including the Islamic State.
Northwest China on water alert as Yellow River supplies run low
South China Morning Post
Water management authorities in northwestern China have warned of potential water shortages in the Yellow River this year, which could have adverse effects on agriculture in the Ningxia and Inner Mongolia regions, both significant producers of grain and home to a large artesian irrigation area. The area has built infrastructure for water conservancy in recent times but remains heavily reliant on the river. Water-intensive crops like rice are banned from certain planting areas by officials to reduce water usage.
Germany Still Hasn’t Stepped Up
Foreign Affairs
Despite Olaf Scholz’s pledge to turn Germany into a true geopolitical force, the country’s military remains underfunded and his efforts to modernize it have fallen short. Moreover, Germany’s tepidness about arming Ukraine and its naval exercises in the Black Sea have tarnished its credibility among its allies. As such, France and Poland, which are both vying for Europe’s leadership, have proved unsuccessful in gaining traction. Nonetheless, the Zeitenwende could make Berlin a better partner for Washington, one that can help guarantee European security. Despite the fact that the German military’s budget has yet to reach a target of 2% of GDP and its military’s modernization plan has yet to materialize, the new defense minister, Boris Pistorius, has established a rapport with the army and has requested more funding. If Pistorius can develop a better system of communication between the military and German manufacturers, he may be able to turn Germany into a leading arms exporter in Asia and Europe, bolstering the country's export potential. Regarding energy, Germany has erected liquified natural gas terminals at a rapid pace, allowing it to move away from Russian energy suppliers. The country is also driving growth in renewable energy; it may be poised to become a market leader in green hydrogen, which could serve as a climate-friendly link between Berlin and developing economies.
Why America Still Needs Europe
Foreign Affairs
A group of scholars, analysts, and commentators in the US are calling for a radical scaling back of commitments to Europe in order to enable a stronger focus on the increasingly competitive situation in the Indo-Pacific region. The call has been met with skepticism from some experts, due to the belief that the US would be sacrificing benefits at no great savings to itself. Advocates of disengagement from Europe are critical of this view, suggesting that the US needs to empower its allies in Europe to take greater defense responsibility. These policy makers, however, don't recommend entirely ditching NATO.
But the suggestion that the US should shift its priorities from Europe to the Indo-Pacific overlooks the fact that the military needs of the two regions can be complementary, and that NATO membership benefits extend beyond Europe itself. Strategic concerns are increasingly interconnected, with the bifurcation of US alliances creating opportunities for the countries that it seeks to counter. Moreover, while Europe is leaving its door open to cooperation with China on climate and other issues, a rising China poses a threat to democracies everywhere.
Ultimately, the US cannot expect to form strong partnerships on the global stage by focusing on its own interests, while failing to keep its promises to allies. Factors such as Republican reversal, the reality of NATO commitments, and reimagining US policy in a multipolar world all suggest that the US should not follow the recommendations of this group of analysts.
Man accused of foreign interference only dealt with open-source information, court told
The Sydney Morning Herald
A Bondi businessman accused of foreign interference after providing information to China claimed that the reports were based on publicly available documents during a consulting arrangement, his lawyer said at the Downing Centre Local Court. Alexander Csergo had worked with companies such as JCDecaux, Jaguar Land Rover and Telstra, and is accused of preparing information pertaining to Australia’s economic and national security interference. Lawyer Bernard Collaery, representing Csergo, criticised the fact that the AFP media release referred to espionage, which he was not charged with. Csergo is intending to pursue the Commonwealth for his career's damage.
Yuan May Rally More Than 5% as Economy Rebounds, Pictet Says
Bloomberg
The Chinese yuan may increase by 5.5% this year against the US dollar, reaching 6.5 per dollar, as the US backs off from raising interest rates and the Chinese economy strengthens, according to Pictet Asset Management. Despite other Asian currencies performing better so far in 2018, the yuan is forecast to benefit from China's significant current account surplus. The Swiss asset manager's forecast outstripped that of a Bloomberg survey in January of analysts.
South Korea, US, Japan to hold missile defence drills to counter North Korea
Reuters
The United States, Japan, and South Korea will conduct joint naval missile defence exercises as part of efforts to increase security cooperation and counter North Korean missile threats. Taking place on Monday, the drills will involve a South Korean Aegis destroyer, a US guided-missile destroyer and a Japanese destroyer with Aegis radar systems. The three nations will run response procedures, from detection to tracking to information sharing, using a virtual target under the hypothetical scenario of a North Korean ballistic missile provocation, according to the South Korean navy.
China Rolls Out Electromagnetic Weapon to Quell Violent Protests
Bloomberg
China showcased the CS/LW21, an electromagnetic gun that shoots coin-shaped projectiles, which could potentially break up violent protests without causing death. Based on coilgun technology, the electromagnetic gun uses electromagnets to launch the coin-shaped projectile, with the technology used previously to launch projectiles from warships. The gun has been developed by China North Industries Group Corp. The electromagnetic weapons allow the user to set the intensity and frequency that the gun fires, which can reduce the danger, however, the gun still has the potential to cause injury. The use of such weaponry is akin to the use of guns that fire rubber bullets.
China willing to work with Russia to maintain global security, defense minister says
Washington Post
China's defense minister, Li Shangfu, has expressed his satisfaction with his country's "mutual trust" with Russia and hailed the “substantial achievements” of "close co-operation" with them, adding that China is ready to deepen the partnership to make new contributions to globally security and stability. Li's visit is part of China's continued support for its Russian allies, and his comments will deepen the fears that China is ready to provide military aid and support to Russia’s aggressive behaviour in the Ukraine.
China self-driving startup seeks to cut vehicle costs with road sensors
Nikkei Asia
Chinese start-up Allride.ai has created an artificial intelligence (AI) system that uses external sensor data to control autonomous vehicles, rather than relying on built-in sensors. The company hopes to reduce the cost of self-driving cars as well as improve their safety using the approach. The technology collects data at various points on a road, which is then analysed by cloud-based AI software in order to guide the vehicle.
Hong Kong stocks hit a 6-week high before China data as HSBC, Xpeng advance
South China Morning Post
Hong Kong stocks rose to a six-week high as government reports suggested China's economy improved in the last quarter as the manufacturing sector expanded. At the midday trading break, the Hang Seng Index rose 0.5% to 20,548.84, which will limit gains as geopolitical tensions rise following the G-7 foreign ministers meeting in Japan, with China and Taiwan being discussed. JD.com slumped 0.5%, limiting gains as analysts from UBS and Blue Lotus Capital Advisors warned of potential operating losses with increased competition. China’s likely Q1 2016 expansion of 4% is expected to break the slump of 2.9% in Q4 2015, based on econometrics tracked by Bloomberg.
Tesla Shanghai factory workers appeal to Elon Musk after being told of bonus cut
Reuters
Workers from Tesla's Shanghai factory are calling on Elon Musk and the Chinese public to help prevent the planned reduction of their performance bonuses, according to online forums and workers. The appeals were made on platforms such as Baidu Tieba or Twitter, though the latter is blocked in China. Two workers told Reuters they were informed of the cut by supervisors, who said that it was linked to a safety incident. Reports suggest that staff at the Shanghai location are being penalized following an alleged event earlier this year in which one worker died. Neither Musk nor Tesla executives commented on the matter.
G-7 envoys urge tough stance on Chinese, N Korean aggression
Associated Press
The Group of Seven (G7) wealthy democracies will address China's threats to Taiwan and North Korea's long-range missiles, at its current meeting in Japan. The foreign ministers of G7 member countries - the UK, US, Germany, Canada, France, Italy and Japan, plus the European Union - will also discuss Russia's campaign in Ukraine. Russia is seen by the G7 as posing a challenge to the post-World War II international order. The diplomats are also aiming to coordinate their actions on China, after France and Germany most recently visited the country.
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