Why China’s young people are quitting their jobs and throwing ‘resignation parties’; Evergrande crisis tests Beijing's fallout management as creditor jitters mount
Taiwan to probe suppliers helping Huawei with China chip plants; Belgium's intelligence service monitors Alibaba hub in Europe over 'espionage' concerns
Welcome to this issue of The China Brief. Today is October 5, 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.
Why China’s young people are quitting their jobs and throwing ‘resignation parties’
CNN
The "Great Resignation" trend, which saw millions of workers quitting their jobs in the US, is now beginning to take hold in China. According to China's LinkedIn equivalent Maimai, 28% of the 1,554 employees surveyed from January to October 2022 resigned from their jobs. This disillusionment among young people, who have spent their lives competing academically and climbing the corporate ladder, is a cause for concern in China, as it could exacerbate the country's already challenging economic situation. The mismatch between education levels and job skills is also a contributing factor, as many employees are overqualified for their positions. China's labor market is likely to face long-term issues as the country's fertility rate continues to decline, resulting in a shrinking working-age population and a rising elderly population. The resignation trend could potentially affect fertility rates, either by giving young adults more time to focus on relationships and starting families, or by further delaying the process due to income loss and depressed emotions.
Asian Games: Yao Ming sorry after China team skip media grilling over defeat
South China Morning Post
Yao Ming, the president of the Chinese Basketball Association, has apologised to reporters after the Chinese men's basketball team seemingly cancelled their post-match press conference following their loss to the Philippines at the Asian Games. The cancellation led to speculation that the team had been unhappy with the media's angry response to the defeat. However, the team later held a press conference where coach Aleksandar Djordjevic took responsibility for the loss, and captain Zhao Jiwei apologised to fans. The Chinese men's team will now play in the bronze medal match against Chinese Taipei.
Bearish bets on Asian currencies firm on hawkish Fed rhetoric, rate woes
Reuters
Bearish bets on most Asian currencies have increased as a result of the possibility of higher US interest rates and the surge in oil prices. Short positions on the Singapore dollar reached their highest level since October 2022, while bearish bets on the Indonesian rupiah touched their highest level since December. The Thai baht also saw an increase in bearish bets due to concerns about fiscal stability as the new government plans to issue large fiscal stimulus and increase borrowing. However, foreign exchange strategists are still forecasting a weaker US dollar in the future.
Japan begins second round of Fukushima wastewater release
Deutsche Welle
Japan has started releasing a second batch of treated radioactive wastewater from the damaged Fukushima nuclear power plant into the ocean. The first discharge began on 24 August and ended on 11 September, with a total of 7,800 tons of treated water being released. The plant plans to release another 7,800 tons over 17 days in the second phase. Since the 2011 disaster, around 1.34 million tons of radioactive wastewater has been stored in about 1,000 tanks at the plant. The government has said that the first release was conducted safely and with no abnormalities detected.
The Chinese author who could win the Nobel prize
BBC
Chinese author Can Xue is a nominee for this year's Nobel prize in literature. Born in 1953, she experienced China's Cultural Revolution as a child when her parents were persecuted and denied an education. Can Xue taught herself English and began reading Western literature extensively. She has since published hundreds of novels, novellas, and short stories, with some translated into English. Can Xue's work is influenced by prominent Western writers and Chinese culture. She would be only the second Chinese person to win the Nobel prize in literature if she is successful.
China to double size of space station, touts alternative to NASA-led ISS
Reuters
China plans to expand its space station, Tiangong, to six modules from three in the coming years. The operational lifetime of Tiangong will be more than 15 years, surpassing the previously announced 10-year lifespan. The Chinese space station will offer astronauts from other nations an alternative platform for near-Earth missions as the International Space Station (ISS) nears the end of its lifespan. China aims to become a major space power by 2030, around the same time the ISS is expected to be decommissioned. However, China's aspirations for space diplomacy suffered a setback when the European Space Agency (ESA) announced it did not have the budget or political approval to participate in Tiangong. The United States has also banned any collaboration between NASA and Tiangong, further isolating China from the international space community.
China struggles to wean itself off bear bile farming
Nikkei Asia
The demand for bear bile in China has surged following a research paper published in December 2022 that suggested ursodeoxycholic acid (UDCA), a compound found in bear bile, could help prevent the SARS-CoV-2 virus that causes COVID-19 from infecting human cells. Bear bile has been used in traditional Chinese medicine (TCM) for centuries and is believed to have medicinal properties. The increased demand has raised concerns about the welfare of bears on farms, where bile is extracted from live animals. While the Chinese government has made efforts to develop synthetic alternatives to bear bile, progress has been slow and the process to obtain licenses for synthetic bear bile has become more complicated. Synthetic substitutes have been developed using avian bile as a base and adding enzymes found in bear bile. However, the new national medicine registration system introduced in 2020 does not include a category for synthetic TCM or references to substitutes, meaning that synthetic bear bile products need to go through the lengthy process of registering as new medicines. The Chinese government has recently reiterated its support for research and development of substitutes for medicines derived from rare and endangered animals and has announced that new medicines with "a clear clinical positioning and significant clinical value" will be given priority for review and approval.
Taiwan to probe suppliers helping Huawei with China chip plants
Japan Times
The Taiwanese government will investigate whether Taiwanese companies assisting Huawei with chipmaking plants in China have violated U.S. sanctions. The investigation comes as tensions between the U.S. and China over technology continue to rise. The Taiwanese Minister of Economic Affairs, Wang Mei-hua, confirmed that her agency will launch the probe in response to a request from a lawmaker. The investigation will examine whether the companies are conducting their businesses within the scope of an original application approved by Taipei.
Indian police widen probe into funding of news portal
Reuters
Indian police are investigating a news portal, NewsClick, for suspected illegal foreign funding. The police have accused the portal of attempting to create an incorrect map of India and sabotage the general elections in 2019. The investigation involves questioning nine journalists and social activists linked to NewsClick. The police raided the news site's office and the homes of journalists and writers, leading to the arrests of its founder and a senior administrative officer. NewsClick denies publishing propaganda and claims that its funding was received through appropriate banking channels. The police allege that NewsClick's founder conspired with a group to sabotage the electoral process during the 2019 general elections.
Vietnam is pointing the way for ASEAN to upgrade its exports
Nikkei Asia
China's loss of global market share in labor-intensive sectors reflects its shift towards higher value-added and technology-intensive sectors in line with its economic development strategy. Vietnam has been the primary beneficiary among ASEAN members, capturing a significant portion of the market share lost by China. However, Vietnam must strengthen the resilience of its supply chains to safeguard against potential disruptions as it integrates its production with China's. Other ASEAN economies have captured smaller market-share gains in China's declining sectors, but they should implement supportive policies to nurture new industries and diversify export markets.
From Twitter to X: Musk’s rebrand a brilliant idea poorly executed
South China Morning Post
Elon Musk's vision to transform Twitter into an "everything app" called X could revolutionise the way we interact with the internet, according to Sid Mohasseb, a best-selling author, serial entrepreneur and investor. While Twitter has struggled to turn a profit, Musk's plan to create a multifunctional platform that delivers unique value makes sense, Mohasseb said. However, Musk needs to learn how to attract the right audience and strengthen the platform's tech capabilities to make X a success, Mohasseb added.
Chinese scientists create low-carbon building materials inspired by worms
South China Morning Post
Chinese researchers have developed natural, low-carbon building materials inspired by sandcastle worms. The worms secrete an adhesive that binds together sand and shell pieces to create their colonies. The researchers replicated this binding mechanism using oppositely charged bio-polymers to bind different grains together. The resulting building materials have high resistance to breaking under compression, can withstand weathering, and can be waterproofed. They can be made from a variety of grains including desert and sea sand, coal cinder, brick rubble, mineral residue, and concrete slag. The materials also have unique recyclability and a shorter production time than traditional concrete.
Evergrande crisis tests Beijing's fallout management as creditor jitters mount
Reuters
China Evergrande Group's ongoing crisis has led some creditors, investors, and analysts to believe that Beijing will intervene to manage the fallout. The collapse of the heavily indebted developer could have significant consequences for China's economy, as there are hundreds of thousands of unfinished homes across the country and around $300 billion of liabilities. While Beijing has not yet directly bailed out any property developers that have defaulted on debt obligations, the criminal investigation into Evergrande's founder suggests that the central government will take control and formulate new plans to manage the situation.
Belgium's intelligence service monitors Alibaba hub in Europe over 'espionage' concerns - FT
Reuters
Belgium's intelligence service has reportedly been monitoring Alibaba's main logistics hub in Europe over concerns of potential espionage. The Belgian State Security Service (VSSE) is said to be working to detect "possible espionage or interference activities" by Chinese entities, including Alibaba. The VSSE has expressed concern over legislation that forces Chinese companies to share data with Chinese authorities and intelligence services. Alibaba denies any wrongdoing.
Foreign Policy
The concept of multipolarity, which suggests that there are many important global powers, is gaining attention in international affairs. Some argue that the world is moving towards a multipolar system, with middle powers such as Turkey, Brazil, South Korea, and Australia gaining importance. However, others argue that the world is still dominated by the United States and China, and that the idea of multipolarity is a myth.
In a recent study, researchers found that while the United States and China are still the two most powerful countries, power is also accumulating in other countries, such as France and Australia. These middle powers are becoming more influential and are shaping the international environment. A multipolar system does not require three powers of equal size, but rather significant power concentrated in more than two states.
The Biden administration's strategy of containing China may be suitable for a bipolar world where the United States and its allies control most of the power. However, in a more multipolar world, this strategy may isolate the United States from the middle powers it needs. Building a global bloc against China may also lead to weak partnerships based on lowest common denominator interests. Furthermore, the United States no longer has the economic might to convince countries to isolate China economically, and coercive measures may diminish US economic power in the long term.
Instead of resisting multipolarity, the United States should leverage the power of its allies, encourage burden-sharing, and focus on bilateral and minilateral agreements. The Biden administration should also be more open to mutually beneficial trade agreements and race against China in trade. Embracing multipolarity and leveraging it to their advantage can help the United States advance its security and sustain its global role.
TikTok Culls Social Media Business Platform in Indonesia
Diplomat
TikTok has announced that it will halt its online retail operations in Indonesia in compliance with the country's ban on e-commerce transactions on social media platforms. The ban, which aims to protect small businesses from e-commerce competition, was announced by the Indonesian government on September 28. TikTok Shop had captured around 5% of the e-commerce market in Indonesia since its launch in 2021. The decision is a significant blow to TikTok, which was expanding aggressively in Southeast Asian markets. The ban applies to all social media networks, but TikTok, owned by ByteDance, was the main target.
US budget fight could create opening for China in the Pacific
Reuters
The U.S. Congress recently passed a 45-day stopgap measure to avert a government shutdown, but it has left potential funding shortfalls for strategic Pacific island states that are U.S. allies. The funding programs for Micronesia, the Marshall Islands, and Palau were due for renewal by September 30, but the stopgap measure did not include approval for the new programs. This leaves the U.S. allies economically vulnerable and potentially more receptive to Chinese approaches. China has been offering financial incentives to the Pacific island states to oppose U.S. plans and build closer ties with Beijing.
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