Why Xi Jinping is afraid to unleash China’s consumers
At least 19 killed in China’s Guangdong province as highway caves in; China’s revised state secrets law has come into force. Here’s what to know; Beijing Braces for a Rematch of Trump vs. China
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Why Xi Jinping is afraid to unleash China’s consumers
FT
The article discusses the growing trade deficit between the EU and China and the EU's response, which includes wielding new anti-subsidy powers against Chinese companies like Nuctech. It highlights concerns about China's economy being too reliant on manufacturing and investment rather than domestic consumption, posing challenges for global financial systems. President Xi Jinping's focus on high-end manufacturing and technology investment, rather than stimulating consumption, is explored, along with ideological and geopolitical factors influencing China's economic direction. The construction of Xiongan, a new city showcasing Xi's development vision, is detailed, emphasizing investment in high-technology innovation. Critics argue that China's emphasis on manufacturing exacerbates overcapacity issues and hinders domestic consumption. Efforts to stimulate consumption, such as incentives to upgrade home appliances, are noted, but analysts suggest deeper reforms are needed to rebalance the economy. The article also discusses challenges in boosting consumer confidence and the potential risks of excessive manufacturing investment leading to deflationary pressures. Finally, it explores proposals for redistributing state-owned assets to citizens as a means of rebalancing the economy.
Beijing Braces for a Rematch of Trump vs. China
WSJ
The article delves into China's apprehension regarding the potential return of Donald Trump to the White House and its implications for U.S.-China relations. It recounts Trump's tumultuous presidency, characterized by trade tensions and tough rhetoric towards China, which Beijing viewed with concern. While Joe Biden's presidency has continued some of Trump's policies, his approach has been seen as less confrontational, leading to a degree of relief in Beijing. However, Chinese officials are preparing for the possibility of Trump's return and anticipate heightened tensions in bilateral relations. The article outlines Beijing's strategies for dealing with a potential Trump administration, including monitoring the election closely, accelerating efforts to advance technological self-sufficiency, and seeking to mitigate the impact of potential tariffs and export controls. Despite Biden's efforts to stabilize relations, the prospect of Trump's return presents uncertainties for both countries, with China wary of a resurgence of trade tensions and a more confrontational approach from the U.S.
At least 19 killed in China’s Guangdong province as highway caves in
South China Morning Post
At least 19 people have died after a section of a highway in China's southern province of Guangdong collapsed during heavy rain. The incident occurred at around 2am on Wednesday in Dabu County, trapping 18 vehicles and 49 passengers. Thirty victims have been taken to hospital while rescue workers continue to search for survivors. The cause of the collapse is currently under investigation. Guangdong province has experienced severe weather in recent weeks, including floods and a tornado.
China’s revised state secrets law has come into force. Here’s what to know
Al Jazeera
China has revised its state secrets law, prompting Taiwan to warn its citizens against travelling to China and causing concern among foreign companies. The changes come as President Xi Jinping’s government increases its focus on national security, including updating China’s anti-espionage law and scrutinising firms with foreign ties. The revised law broadens its scope to include "work secrets" and requires internet companies to cooperate with investigations into suspected leaks. The law has created uncertainty and compliance challenges for businesses operating in China, with fears it could be used to punish regular business activities.
South China Morning Post
Several universities and colleges in China have banned students from travelling alone during the May Day holiday due to "safety" reasons. The move has sparked controversy and accusations of excessive control, with some questioning whether it is appropriate to regulate the travel of adult students. Some universities have issued the strictest notices, forbidding students from organising any trips in the name of associations or individuals. The issue has highlighted the "overregulation" of Chinese universities and controversy about restrictions such as smoking, alcohol and food deliveries on campuses.
South Korea considers joining alliance for sharing military technology with Australia, US and UK
Associated Press
South Korea is considering sharing advanced military technology with the US, UK, and Australia through the AUKUS partnership, according to South Korean Defense Minister Shin Won-sik. The possibility of cooperation on a wider range of security technologies, including artificial intelligence, electronic warfare, and hypersonic systems, was discussed during meetings between South Korea and Australia's defense and foreign ministers. Japan is also moving towards formal talks to become part of AUKUS Pillar 2's technology development and sharing. Australian Defense Minister Richard Marles welcomed South Korean efforts to build on its relationship with Japan.
PM Lee says Singapore risks ‘serious trouble’ if it becomes ‘ordinary’ in final key speech
South China Morning Post
Singapore must avoid succumbing to populism and other divisive forces in order to maintain its economic strength and global reputation, according to Prime Minister Lee Hsien Loong. In his final Labour Day speech before handing over power to Deputy Prime Minister Lawrence Wong on 15 May, Lee warned that Singapore would be in "serious trouble" if it became an ordinary or average country, given its lack of natural resources and small size. He also highlighted potential divisions in society, including those between different generations and different types of citizens.
China tightens grip on social media companies
Yahoo US
New rules that tighten restrictions on China's internet companies have come into effect today. The expanded State Secrets Law compels firms - including social media giants Tencent, ByteDance and Weibo - to take action if users post sensitive information. The revised rules also broaden the definition of what may be deemed as sensitive information to include "work secrets", or information about the decision-making of state agencies, which could be particularly problematic for journalists, including foreign correspondents. Taiwan has voiced concerns about the new rules and said they could place visitors from the island to China at risk.
South China Morning Post
Beijing has relaxed some rules on multiple home purchases in an effort to stimulate the country's stagnant property market. Families that have reached their current ownership limits will be allowed to purchase one more home outside Beijing's fifth ring road. In addition, single adults with a Beijing hukou (permanent residence permit) or non-hukou holders who have paid social insurance or income tax for five or more years will be allowed to buy a second property in the area. The easing of the rules came on the same day that new statistics showed a continued slump in the property market.
Hong Kong welcomes 43,000 mainland Chinese visitors on first day of ‘golden week’ break
South China Morning Post
Over 40,000 mainland Chinese visitors crossed into Hong Kong on Wednesday morning as the city kicked off its Labour Day “golden week” holiday. The city is expected to welcome at least 800,000 mainland visitors over the extended weekend break, with 5.9 million arrivals and departures expected during the holiday. A 10-minute fireworks display was planned for Wednesday evening to welcome mainland tourists.
China’s Electric Cars Keep Improving, a Worry for Rivals Elsewhere
NY Times
Automakers in China are set to release 71 new battery electric models this year, as they look to gain a competitive edge in the global market. The new models will feature technological advancements such as smaller, more powerful batteries that are quicker to recharge, as well as taller hoods for a bolder appearance and more storage space. The changes are aimed at appealing to customers in China and making the cars more competitive abroad. China is also pushing ahead with the development of self-driving cars, with Tesla, BYD and Nio among the manufacturers receiving approvals for their autonomous vehicles.
HSBC, StanChart, DBS tap Golden Week visitors drawn to Hong Kong’s cash-for-residency scheme
South China Morning Post
Major Hong Kong banks, including HSBC, Standard Chartered, DBS and Hang Seng Bank, are offering incentives to mainland Chinese customers visiting the city during the Labour Day holiday, which runs between 1 and 5 May. HSBC is offering programmes for visitors interested in the city's Capital Investment Entrant Scheme (CIES), which allows wealthy individuals and their families to gain fast-track residency for investing at least HKD30m ($3.8m) through banks or brokers into stocks, bonds, deposits, funds, investment-linked insurance policies or non-residential properties.
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