Zhang Xiaoming’s removal is a ‘normal leadership reshuffle’: Hong Kong delegates；China’s ‘two sessions’ 2024: economic planning chief puts focus on AI
China’s bureaucrats turn to AI, handwriting robots to cope with paperwork; To win back investor trust and confidence, China needs drastic reforms
Welcome to this issue of The China Brief. Today is March 3, 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.
Zhang Xiaoming’s removal is a ‘normal leadership reshuffle’: Hong Kong delegates
South China Morning Post
Beijing's removal of Zhang Xiaoming from his role as deputy secretary general of China's top advisory body was a "normal leadership reshuffle," according to representatives from Hong Kong. The reshuffle is seen as a response to the social unrest in Hong Kong in 2019. Zhang's removal was announced two days before the top advisory body convenes its annual session. The National People's Congress will begin its meeting the following day. Delegates from Hong Kong have called for improved policies to attract more mainland tourists to Hong Kong, including raising the duty-free shopping limit for mainland tourists.
To win back investor trust and confidence, China needs drastic reforms
South China Morning Post
China's securities market must undergo significant reforms to regain the trust of investors, according to James David Spellman, Principal of Strategic Communications LLC. These reforms include greater transparency in financial statements, more rigorous oversight, and fewer controls over local ownership. However, Spellman warns that these reforms will fail if Beijing's "common prosperity" policy stifles financial innovation and sweeps away free-market tenets. He also highlights the need for stronger regulatory oversight, improved risk management mechanisms, and upgrades to market infrastructure and trading systems. Ultimately, China must address public trust and confidence to attract both domestic and foreign investors.
China’s ‘two sessions’ 2024: economic planning chief puts focus on AI
South China Morning Post
China's head of economic planning, Zheng Shanjie, has urged companies in the country to develop and accelerate the artificial intelligence (AI) industry ahead of the annual National People's Congress and Chinese People's Political Consultative Conference meetings. However, Chinese AI firms are now struggling to keep up with US counterparts due to factors such as stringent state regulations, censorship and lack of access to advanced chips, which have been subject to US export controls.
India to open ‘strategically important’ navy base near China-friendly Maldives
South China Morning Post
India is increasing its military presence on strategically important islands near the Maldives in response to growing Chinese influence in the archipelago nation. The move comes after pro-China President Mohamed Muizzu won elections last year and promised to expel Indian forces. India has been suspicious of China's growing presence in the region, which lies on key international shipping routes. A new naval base on India's Lakshadweep islands will extend India's operational surveillance of the area. The base will open on 6 March, just days before the Maldives asks India to withdraw its troops.
What to watch for as China’s major political meeting of the year gets underway
Associated Press
The annual meeting of China's legislature will take place this week, with the economy being the most pressing issue. Analysts expect Premier Li Qiang to set a growth target of around 5%, affirming market expectations for moderate economic stimulus and measures to boost consumer and investor confidence. However, there are concerns that setting a lower target could dampen confidence, while a higher target of 5.5% would suggest more aggressive stimulus. The meeting will also be watched for signs of a new foreign minister and proposals to raise the retirement age.
Huawei’s AI chip prowess under scrutiny after Nvidia taps it as likely rival
South China Morning Post
US semiconductor company Nvidia has identified Huawei as a potential rival in artificial intelligence (AI) chips for the first time. Nvidia has been unable to ship its advanced graphics processing units to mainland China due to Washington's export restrictions, and insiders and analysts have said that Huawei's Ascend 910B chip could replace the US firm's Chinese products. The Ascend 910B is believed to be on a par with Nvidia's A100 data-centre GPUs in terms of computing power. US sanctions have limited Huawei's semiconductor development and hurt its smartphone business.
China’s bureaucrats turn to AI, handwriting robots to cope with paperwork
South China Morning Post
Chinese officials are turning to artificial intelligence (AI) to cope with the large number of documents they need to produce. The government has not yet established specific rules governing the use of AI, but many civil servants are using the technology to draft speeches and produce reports for inspection groups. The most popular AI writing tools include Miaobi, developed by Xinhua news agency, and Xinghuo from software company iFlyTek. However, the AI tools are limited in their capabilities, as they lack the ability to incorporate the latest policies and directions.
https://www.scmp.com/news/china/politics/article/3253662/chinas-bureaucrats-turn-ai-handwriting-robots-cope-official-paperwork
Chinese home sellers turn to social media to boost their chances in weak market
South China Morning Post
Homeowners in China are turning to social media platforms to sell their properties as the second-hand home market continues to struggle. The oversupply of homes has led to falling prices, prompting sellers to seek alternative methods of advertising their properties in the hope of finding a buyer more quickly and securing a better deal. While selling through social media is not new, it is becoming increasingly popular and allows sellers to market their properties in more diverse ways, according to Yan Yuejin, director of the E-house China Research and Development Institute.
US general raises alarm over ‘breathtaking’ growth in China’s space tech
South China Morning Post
China is rapidly expanding its military space capabilities and could threaten US interests both on land and in orbit, according to General Stephen Whiting, the chief of the US Space Command. He told the US Senate Armed Services Committee that China was working to become a major global military force, extending its long-range fires and improving the precision and reach of its terrestrial forces. Whiting said China was making “breathtaking” growth in space technology and was focused on monitoring, tracking, and targeting US and allied forces. China’s defence ministry responded by accusing the US of using threats from other nations to expand its own military power.
Chinese-made phones beat global giants Samsung and Apple in African market
South China Morning Post
Chinese mobile phone brands Tecno, Infinix and iTel, which are all manufactured by Shenzhen-based Transsion, have become bestsellers in Africa, the Middle East and other emerging markets, surpassing Samsung and Apple in smartphone sales. Transsion has successfully targeted lower-income consumers by offering affordable handsets, such as the Tecno Pop 7 and the Camon 20 Pro. The company's success has been attributed to its marketing strategy, understanding of consumer needs, and investments in marketing and channel penetration. Transsion accounted for 36% of the shipments market share in the fourth quarter of 2023 and 32% across the whole year in the Middle East and Africa region. Tecno alone held 26% of the African smartphone market share in 2023. However, not all Chinese phone companies have had the same level of success in Africa. Huawei's market share in Africa dropped from 10% in 2019 to about 1% in recent years due to US sanctions that cut off access to Google Mobile Services and chipsets.
Chinese EV maker Leapmotor lures price-conscious buyers with deep discounts
South China Morning Post
Chinese electric vehicle (EV) manufacturer Leapmotor has lowered the price of its C10 SUV by almost 20% from its initial target price. The vehicle features autonomous driving technology and a digital cockpit, and will be aimed at middle-income consumers. Leapmotor's CEO, Zhu Jiangming, said the lower price was possible due to increased production efficiency. The C10 is Leapmotor's first model aimed at the global market, and will be exported to Europe, Asia-Pacific, South America and Africa from Q3 2024.
Ever more undocumented Indian migrants follow ‘donkey’ route to America
Washington Post
A recent report from The Washington Post details the growing trend of Indian immigrants using a network of agents to make illegal journeys to the United States. These undocumented Indian immigrants, many of whom are from middle-class families, are seeking better employment opportunities and a more secure future for their children. The report explains that the migrants typically sell their land to fund the journey, which can cost between $40,000 and $100,000 per person. These migrants are guided through a chain of countries with easy visa requirements, eventually reaching Latin America or Canada before walking across the US border. The journey, known as the "donkey route", can take up to a year and pass through up to a dozen countries. The report highlights the dangers of these trips, with migrants facing the risk of violence, theft, and exploitation. Despite these dangers, the report suggests that the demand for illegal migration remains high, with agents continuing to find ways to facilitate the journeys.
Across Asia, a new class of childless-by-choice couples emerge: meet the DINKs
South China Morning Post
The decision by couples in Asia to remain childless, known as the DINK (double income, no kids) lifestyle, is gaining popularity in the region. However, it is viewed as controversial due to the conservative, family-centric cultural values in many Asian countries. Couples who choose not to have children are often accused of being selfish, particularly at a time when low birth rates are a concern. The DINK lifestyle is more openly discussed on social media platforms, with TikTok videos featuring couples sharing their experiences going viral. While there is growing acceptance, a stigma against childless couples still exists in society. However, sociologists argue that the motivations for remaining childless can be varied, including spiritual reasons, concerns about overpopulation, and health concerns. In India, the number of DINK couples has been growing at a rate of 30% per year, with a significant proportion of rural couples choosing not to have children. In parts of East Asia, the stigma against childless couples may be connected to concerns about falling birth rates and demographic crises.
China's record-low yields flash deflationary warning signs
Nikkei Asia
China's benchmark yield on 10-year government bonds has fallen to a record low, reaching 2.341% on Thursday. The low yield is due to deflationary pressures and the slumping real estate market, which has weighed down inflation. Chinese authorities have implemented measures to boost share prices, but yields in the fixed-income market have fallen. The spread between 30- and 10-year yields has narrowed, suggesting deflationary pressures and population decline have dampened hopes of high growth and higher inflation in the long term.
How China’s C919 reflects aim to skirt US restrictions, elevate supply chains
South China Morning Post
Chinese aerospace manufacturer Commercial Aircraft Corporation of China (Comac) is targeting Southeast Asia's growing aviation market with its C919 narrowbody passenger plane. The region's strong trade ties with China and an expected post-Covid rebound in air travel have made it the main target for Comac outside of its home market. The company plans to carry out flight demonstrations in Laos, Cambodia, Malaysia and Indonesia after a two-week marketing campaign that kicked off in Vietnam. Analysts have said Comac will need to invest in the ability to service its planes and produce a wider range of aircraft offerings to secure more orders.
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