• US exports to China declined 4.3% year on year in 2023 amid trade tensions: report
• China rejects further restraints on trade with Russia ahead of top US envoy’s arrival in Beijing
• EU targets Chinese surveillance kit maker in latest use of foreign subsidies regulation
• US is ‘stubbornly’ trying to contain China, Beijing says ahead of Blinken visit
• China shows off nuclear might ahead of top US diplomat Antony Blinken’s visit
• Hong Kong gears up for 800,000 mainland Chinese visitors over Labour Day ‘golden week’ holiday
• China, Europe can look past disputes to cultivate food trade, EU agriculture commissioner says
• Germany arrests staffer at E.U. Parliament over China spying suspicion
• Heavy rains continue to batter China’s Guangdong province as forecasters warn more storms are coming
• China’s ‘extreme’ national security focus a drag on business, US trade group says
• China tourist dies in plunge from cliff while posing for photo next to famous tree at Indonesia volcano
• China leads improvements in fossil fuel engine efficiency to fill electric gap
• Cross-border synergy with China can help US more quickly adopt EVs
• Filipinos more concerned about inflation and jobs as Marcos Jnr focuses more on South China Sea, survey finds
• Apple adds suppliers in China despite efforts to spread out production, underscoring country’s major supply chain role
• [World] German far-right party aide held in China spy probe
• German EU lawmaker’s aide is arrested on suspicion of spying for China
• AfD politician’s employee arrested on suspicion of spying for China
• Taiwan pledges to remove 760 statues of Chinese dictator Chiang Kai-shek
• Disabled Chinese mother hits back after suffering ‘hurtful’ online abuse that she is ‘unfit’ to be parent
• South China Sea: as tensions mount, Wang Yi vows Beijing to be by Cambodia’s side no matter what
• Tech war: China acquired US-restricted Nvidia AI chips built in Super Micro, Dell and Gigabyte Technology servers, tenders show
• Balikatan 2024: missiles, military aid, China tensions in focus as ‘biggest ever’ US-Philippines drills begin
• China floods: four killed in Guangdong sparking concerns over extreme weather defences
• Canton Fair: overseas buyers pour in, leaving Chinese exporters to ask ‘why so many foreigners?’
• Japan extends anti-China coastguard training push from South China Sea to Pacific islands
• China KOL with inferiority complex owns 7 homes worth US$110 million, wears only branded clothes and jewellery
• How the internet has transformed China in the past 30 years, and vice versa
• Antony Blinken highlights China’s Uygurs as victims of ‘genocide’ at US human rights report launch
• China’s campaign to win investment wavers as overseas capital plays waiting game
• Environmental report on planned Hong Kong tech hub near mainland China border gets conditional green light
• Germany arrests three on suspicion of spying for China, as Britain charges two
• Chile’s tariffs on Chinese steel products boost local steelmaker CAP’s stock
• New force for China’s PLA eyes modern warfare information support
• China doping case leaves serious questions just months before Olympics

US exports to China declined 4.3% year on year in 2023 amid trade tensions: report

https://www.scmp.com/news/china/article/3260107/us-exports-china-declined-43-year-year-2023-amid-trade-tensions-report?utm_source=rss_feed

Led by a decline in agricultural goods and semiconductor shipments, the volume of American goods exported to China fell in 2023 amid continuing tensions between the world’s two largest economies, according to a report released on Tuesday.

The United States exported a total of US$144.9 billion in goods to China last year, marking a 4.3 per cent decline from a year earlier when the figure reached a record-high US$151.4 billion, said the report by the US-China Business Council.

While US exports to most other foreign economies dipped in 2023 owing to geopolitical tensions like the war in Ukraine, stunted economic growth in China and Sino-American government-level challenges also weighed on the bilateral trade relationship, the USCBC said, separate from long-standing barriers such as tariffs.

“It is important for us to remind US lawmakers and those in influential positions that every state and congressional district in the US maintains its own economic and trade relationship with China,” said Craig Allen, president of the non-profit group representing more than 270 American companies.

“Changes in US-China trade policy should be considered very carefully.”

“Trade between the US and China also contributes to geopolitical stability and must be factored into policy decisions related to the future of the bilateral relationship,” he added.

In 2023, China was the third-largest goods export market for the US, trailing only Canada and Mexico. Also last year, the Asian country was dethroned by Mexico as the top source of US imports after 17 years.

Oilseeds and grains remained America’s top export to China last year, despite plunging US$7 billion from 2022, according to the report.

Challenges in the agricultural trade could worsen if producers in other countries like Brazil continued becoming more competitive or if American exports were targeted in a future US-China tariff spat, it said.

US tests China’s metal with steel tariff plan, opening new front in trade war

“Any new US tariff increases on imports from China, which many lawmakers and political leaders are actively proposing, could adversely impact the American agriculture sector if they trigger retaliatory actions,” the report added.

US President Joe Biden last week called for tripling the existing tariff rate on Chinese steel and aluminium, just as the US Trade Representative’s office announced the launch of yet another Section 301 investigation into China’s maritime, logistics and shipbuilding sectors.

Section 301 investigations aim to determine whether a foreign government’s policies or acts are discriminatory and whether they burden or restrict US commerce.

Last year US exports of semiconductors and their components to China fell to their lowest level since 2016 to US$6.8 billion, dropping 52 per cent compared with the peak level in 2021.

China’s weak economic recovery as well as expanding US export controls on advanced semiconductors and chip manufacturing equipment both curtailed demand and inhibited exports, the report said.

US review of US$300 billion worth of Chinese imports almost done: trade envoy

On services trade, US exports to China rose in 2022 but had not yet recovered from the impact of the coronavirus pandemic.

Travel services have traditionally been among the largest American services exported to China, with their 2022 level reaching just 10 per cent of their pre-pandemic value, it added.

Education exports, which include money that Chinese students studying in the US pay for tuition, housing and books, were among the largest categories of American services exported to China in 2022. They held their standing as important contributors to local American economies, according to the report.

While Chinese students comprise the largest contingent of international students at US universities, their share is losing ground among other foreign nationals, it said.

In 2022, the number of students from China rose by just 1 per cent, compared with growth rates of 8 per cent for India, 22 per cent for South Korea and 36 per cent for Brazil.

China rejects further restraints on trade with Russia ahead of top US envoy’s arrival in Beijing

https://www.scmp.com/news/china/diplomacy/article/3260105/china-rejects-further-restraints-trade-russia-ahead-top-us-envoys-arrival-beijing?utm_source=rss_feed

China said it would “resolutely defend” its “inviolable” rights to trade with Russia, as the United States reportedly considers sanctioning Chinese banks during US Secretary of State Antony Blinken’s three-day trip to Beijing.

Just a day ahead of Blinken’s arrival, The Wall Street Journal reported on Tuesday that Washington was drafting sanctions against Chinese banks to provide him with the leverage to persuade Beijing to stop its commercial support of Russia’s military production.

The proposed sanctions would cut some Chinese banks off from the global financial system, among Washington’s strongest financial coercive tools, according to the report, citing sources. Russian banks have been cut off since the war against Ukraine started in February 2022.

In response to the report, Chinese foreign ministry spokesman Wang Wenbin said that Beijing had already set export restrictions on dual-use products – products that could have military applications – and rejected any criticism.

“China’s right to conduct normal economic and trade exchanges with all countries in the world – including Russia – on the basis of equality and mutual benefit cannot be interfered with or undermined, and China’s legitimate rights and interests cannot be infringed upon,” Wang said.

Blinken highlights China’s Uygurs as ‘genocide’ victims at US report launch

Two months after Russia invaded Ukraine in 2022, the Chinese Ministry of Commerce issued a draft regulation on dual-use items export control, and in 2023 further tightened export restrictions on drones that could have potential military uses.

Wang called it “extremely hypocritical and irresponsible” of the US to pass a bill on large-scale assistance to Ukraine while making accusations against China’s normal economic and trade exchanges with Russia.

He said that China was neither the creator nor a party to the Ukraine crisis, and that it had never taken advantage of the conflict.

“We firmly oppose the hypocritical practice of the United States of pouring fuel to the fire while blaming China,” Wang said.

US review of US$300 billion worth of Chinese imports almost done: trade envoy

Commenting on Blinken’s visit on Monday, Beijing said the US should “immediately stop” imposing unilateral sanctions on Chinese companies and individuals, and reflect on its own responsibility in the Ukraine crisis.

“The Ukrainian issue is not an issue between China and the United States, and the United States should not turn it into an issue between China and the United States,” the Chinese foreign ministry said.

China has consistently claimed to be neutral in the Russia-Ukraine war and continuously called for a ceasefire. But the US and its European allies regard China as siding with Russia, since Beijing has refused to condemn Russia’s invasion and maintained close ties with Moscow, especially boosting trade with its neighbour despite Western sanctions.

During his trip, Blinken is expected to convey to Chinese leaders the dissatisfaction of the US and its allies about China’s continued supply of key technologies and products such as chips and engines to Russia, which they say enables Moscow to replenish its military industries.

EU targets Chinese surveillance kit maker in latest use of foreign subsidies regulation

https://www.scmp.com/news/china/article/3260102/eu-targets-chinese-surveillance-kit-maker-latest-use-foreign-subsidies-regulation?utm_source=rss_feed

The European Union has targeted another Chinese company under its foreign subsidies regulation, the Post can reveal.

On Tuesday morning, EU officials entered the premises of the Dutch and Polish subsidiaries of a Chinese company involved in the manufacture of surveillance equipment, sources familiar with events said.

There, they accessed the ICT system and staff phones in a dramatic utilisation of an economic tool that has struck fear into the hearts of Chinese businesses operating in Europe.

The European Commission released a statement saying it was “carrying out unannounced inspections at the premises of a company active in the production and sale of security equipment in the EU”.

However, it did not provide details of the company name, nationality or details on the sector in which it was involved.

“The commission has indications that the inspected company may have received foreign subsidies that could distort the internal market pursuant to the foreign subsidies regulation,” the statement read.

It added that they were “accompanied by their counterparts from the national competition authorities of the member states where the inspections were carried out”.

“Unannounced inspections are a preliminary investigative step into suspected distortive foreign subsidies,” it said, noting an-depth investigation would be the next step.

The EU has already used the foreign-subsidies regulation to investigate state handouts in the solar, wind turbine and rolling-stock industries. The tool entered law last year.

Foreign firms play waiting game as China’s pro-investment campaign falters

In Bulgaria, a Chinese train maker withdrew from a public tender after being targeted with an investigation into a bid the commission said was undercutting local firms. The inquiry, announced in February, was the first of its kind and marked the maiden use of the tool.

CRRC Qingdao Sifang Locomotive Co, a division of state-owned rolling-stock manufacturer CRRC Corporation, had hoped to provide 20 electric push-pull trains and their maintenance.

Its bid was reported to be about half that of a Spanish competitor, with the European Commission announcing that the Chinese company had withdrawn its bid. Brussels had alleged that CRRC had received almost US$2 billion in state subsidies.

Subsequent investigations were launched into whether two Chinese-linked companies used state subsidies to undercut rival bids in a Romanian solar project, while Brussels is also looking into subsidies in China’s wind-turbine sector

The Chinese government and lobbyists for Chinese businesses in Europe have railed against the foreign-subsidies regulation, which has fast become the commission’s tool of choice as it attempts to crack down on economic grievances with Beijing.

Its quick-fire deployment has marked a ratcheting up in Brussels’ use of the economic weapons at its disposal.

EU to launch first procurement probe over China’s medical devices sector: sources

On Wednesday, the commission was expected to announce the first-ever use of its public procurement instrument (IPI) – an investigation into European firms’ access to public tenders in China’s medical-devices sector.

The IPI was adopted in June 2022 but has yet to be used. Its aim is to prise open lucrative procurement markets that are closed to EU firms. Firms from countries whose tendering markets are closed to European companies will be penalised.

Other weapons are on the way. On Tuesday, the European Parliament gave its backing to a ban on products made using forced labour, which has been developed with the Chinese region of Xinjiang in mind.

The new regulation will enable the EU to prohibit the sale, import and export of goods made using forced labour, once it is given final approval by the European Council, made up of the bloc’s 27 member states.

In a landslide vote, 555 lawmakers voted in favour of the ban, with just six voting against and 45 abstaining.

China has been accused of operating a sophisticated system of forced labour in Xinjiang Uygur autonomous region. Beijing has repeatedly denied the allegations.

US is ‘stubbornly’ trying to contain China, Beijing says ahead of Blinken visit

https://www.scmp.com/news/china/diplomacy/article/3260085/us-stubbornly-trying-contain-china-beijing-says-ahead-blinken-visit?utm_source=rss_feed

Beijing accused Washington of “stubbornly” pushing to contain China and hit out over the South China Sea and trade, a day before US Secretary of State Antony Blinken is due to arrive in the country.

In a briefing on Tuesday, a foreign ministry official said the US had taken measures to suppress China’s economy and trade, which had “seriously harmed” Chinese interests, according to a report on state broadcaster CCTV.

“This is not removing risks but creating risks,” said the official from the foreign ministry’s North American and Oceanian affairs department, who was not named.

“The United States is stubbornly advancing its strategy to contain China and continues to adopt wrong words and deeds that interfere in China’s internal affairs, smear China’s image, and harm China’s interests.”

Blinken’s visit – from Wednesday to Friday – comes as the US has aired growing concerns over China’s industrial overcapacity.

Earlier this month, US Treasury Secretary Janet Yellen pressed her Chinese counterparts on “unfair practices” and pushed for a level playing field for American firms during her China visit.

Washington has since called for a tripling of import tariffs on Chinese steel and aluminium, and launched an investigation into China’s alleged subsidies in the shipbuilding, logistics and maritime industries.

The foreign ministry official dismissed Washington’s allegations of Chinese overcapacity as a “false narrative”, saying it was “outright economic coercion and bullying”.

“Behind it is the evil intention of curbing and suppressing China’s industrial development, aiming to seek a more favourable competitive position and market advantage for the country,” the official said.

“We firmly oppose the US politicising economic, trade and science and technology issues, and warn the US that suppressing China’s science and technology is … depriving the Chinese people of their legitimate rights to development. China will respond resolutely.”

The official was outlining areas Beijing will focus on during Blinken’s visit – his second in less than a year. They included seeking more dialogue with the US, deepening cooperation, and working together on global issues as major powers including the conflicts in Ukraine and the Middle East.

He said ties had stabilised since Xi Jinping and Joe Biden met in November but “negative factors” remained.

“China’s door to dialogue and communication is always open,” he said. “At the same time, the United States must realise that it cannot communicate for the sake of communication, cannot say one thing and do another, let alone have any illusions about dealing with China from the so-called position of strength.”

Blinken highlights China’s Uygurs as ‘genocide’ victims at US report launch

He said Washington was “obsessed” with forming an anti-China bloc and Beijing would make clear its position on issues including Taiwan, trade, science and technology, and the South China Sea during this week’s talks.

He said China opposed American interference in the South China Sea and the US “sowing discord” between Beijing and its Southeast Asian neighbours.

Beijing’s claims to most of the South China Sea overlap with those of other countries. Tensions between China and the Philippines over the waterway have risen in recent months, pushing Manila closer to Washington. The two long-time allies this week began their largest combat exercise in years, involving more than 16,000 military personnel.

“The United States is not a party to the South China Sea issue and should not intervene, let alone disrupt the situation,” the official said.

For the drills, the US deployed a medium-range missile launcher to the Philippines, a move the official described as exacerbating tensions and increasing the risk of miscalculation in the region.

China’s ambassador to the US Xie Feng made similar remarks last week.

“It would be self-deluding to suppress and encircle China in the name of competition on one hand, and try to manage competition and avoid direct conflict on the other,” he said in a conversation with Harvard professor Graham Allison.

“If we only aim at the minimum goal of avoiding conflict in China-US relations, then we would not be far away from going into one.”

Xie also claimed the two powers had agreed to hold talks on “national security boundaries” after Xi and Biden met in San Francisco, but the US was reluctant to have a detailed discussion.

Those consultations have not previously been mentioned and were not in statements from either side following the leaders’ meeting in November.

Observers say the latest remarks from Beijing reflect growing frustration over Washington’s recent actions.

Lu Xiang, a research fellow at the Chinese Academy of Social Sciences, said the atmosphere this week was likely to be “tense”.

He said US actions – including a trilateral summit with the Philippines and Japan this month – were viewed as targeting China and had stoked tensions in the region. “Tensions are dangerously high. [China and the US] are very close to triggering a conflict,” he said.

Lu also said the new round of potential tariffs aimed at Chinese exports was a “very unfriendly” move.

Jeremy Chan, a senior analyst at political risk consultancy Eurasia Group, said it appeared “patience is wearing thin” with the state of US-China ties.

He said Xie was right to point out that the two countries had “only done the bare minimum” to stop relations from deteriorating further, and that would leave them “not far away from a more precipitous downturn in relations whenever the next crisis moment appears”.

Chan expected Beijing to raise the issue of US trade curbs, particularly in the tech sector, in this week’s talks. He said Blinken was likely to raise Chinese firms’ support for Russia’s defence industrial base and the crisis in the Middle East.

He did not expect much from the visit, but noted that “the two sides are communicating again at almost every level”. “These ‘guard rails’ won’t by themselves prevent a rupture in the relationship, but they will serve as shock absorbers to soften the blow when the next crisis moment arrives.”

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China shows off nuclear might ahead of top US diplomat Antony Blinken’s visit

https://www.scmp.com/news/china/military/article/3260089/china-shows-nuclear-might-ahead-top-us-diplomat-antony-blinkens-visit?utm_source=rss_feed

China showed off its nuclear second-strike capability – the ability to hit back after an enemy launches an initial nuclear attack – just two days before US Secretary of State Antony Blinken’s visit to Beijing and Shanghai.

On Monday, the Chinese navy released rare footage of the launch of a JL-2 ballistic missile from a nuclear submarine. The video shows China’s Shandong aircraft carrier fleet, including four submarines, during a simulated exercise.

Near the end of the video, a ballistic missile is shown being launched after a narrator states that “the submarine has arrived at the scheduled launch location … and is commanded to carry out a fatal strike”.

While the video does not identify the type of missile or submarine, nationalist tabloid Global Times on Monday said the missile in the video is the JL-2 submarine-launched ballistic missile (SLBM), which was displayed for the first time during a Chinese military parade in 2019.

With a range of 7,400km (4,600 miles), the JL-2 became China’s first credible sea-based nuclear deterrent when it was deployed on Type 094A nuclear submarines in 2015.

Compared to land-based missiles, SLBMs generally allow for a greater chance of surviving an initial strike by an enemy and conducting a second strike.

The JL-2, if operated in the mid-Pacific Ocean, is able to threaten targets in the western half of the continental United States, as well as Hawaii and Alaska, and it can threaten targets on the east coast of the US if deployed east of Hawaii, according to an annual Pentagon report on China’s military power published last year.

The video was released to celebrate the 75th anniversary of the Chinese navy and came just ahead of Blinken’s visit to China starting on Wednesday. While in the country, he will meet senior Chinese officials in Shanghai and Beijing and discuss issues ranging from the Ukraine war to the South China Sea.

Amid Taiwan tensions, Beijing reveals it is building aircraft carrier No 4

The video shows a simulated exercise between two aircraft carrier groups, including one led by the Shandong, China’s second aircraft carrier, which was launched in 2017.

The footage is the first confirmation that the Shandong carrier strike group includes at least four submarines, including a nuclear one.

The video shows the three submarines conducting “cover-up” missions, with one of them launching an unmanned underwater vehicle before a fourth nuclear submarine successfully launches the missile.

According to the Pentagon report, the Chinese navy now operates six nuclear-powered ballistic missile submarines (SSBN), six nuclear-powered attack submarines, and 48 diesel-powered attack submarines.

China’s Jin-class Type 094 SSBNs can also deploy JL-3 SLBMs, which would allow one of the submarines armed with this missile to target parts of the continental US from Chinese waters, the report said.

Hong Kong gears up for 800,000 mainland Chinese visitors over Labour Day ‘golden week’ holiday

https://www.scmp.com/news/hong-kong/society/article/3260090/hong-kong-gears-800000-mainland-chinese-visitors-over-labour-day-golden-week-holiday?utm_source=rss_feed

Hong Kong is gearing up for at least 800,000 mainland Chinese visitors and about 5.9 million people crossing border checkpoints over the Labour Day “golden week” holiday, the city leader has said, while a popular tourist area is planning a shopping festival.

The government’s forecast on mainland tourist numbers and immigration traffic for the five-day holiday marked 28 per cent and 75 per cent increases respectively on the figures for the same period last year.

Hong Kong’s Temple Street draws 1.5 million people, will run until end of year

Chief Executive John Lee Ka-chiu said on Tuesday that the government had been making “comprehensive preparations” for the golden week holiday, which falls from May 1 to 5, by keeping in close contact with transport operators, working with businesses to offer promotions, and ensuring good management of tour groups.

“We will make good use of this opportunity to show that Hong Kong is a vibrant city. We welcome tourists,” he said.

“Hong Kong will give tourists good experiences that they will not just enjoy, but when they finish their business, they will tell their friends and neighbours within their home cities.”

Lee said the government would make further announcements on arrangements for border control points nearer to the start of the peak holiday period.

“We will be in full gear to ensure that there will be good and smooth service for visitors,” he said.

The Hong Kong Tourism Board earlier said a pyrotechnics display would be held at Victoria Harbour on May 1 and a drone show on May 11.

A source familiar with holiday arrangements said a shopping festival would be held in Yau Tsim Mong district, with various retailers and restaurants offering perks and discounts.

Details of these initiatives are expected as early as Wednesday.

Yau Tsim Mong District Council had suggested the festival as a promotional platform for businesses to reach potential customers, councillor Chris Ip Ngo-tung said.

“We hope that through the activity or the publicity, there will be more business for shops in the area,” Ip said.

He said the council had invited different stakeholders in the district to take part, and did not impose any requirements on what they had to offer.

“This festival is to complement the performances the Tourism Board is organising. We hope there will be synergy together with the increased number of tourists over the golden week period,” he added.

Influencers, celebrities among 2,000 invited to Hong Kong in tourism drive

Ip said while the festival coincided with the golden week, it was not aimed solely at mainland customers but also tourists from elsewhere as well as locals.

The festival could run beyond the five-day period, he added.

Hong Kong Tourism Association executive director Timothy Chui Ting-pong said the government’s forecast on mainland arrivals was realistic based on past experience, and that the visitors would give a boost to the retail, tourism, and food and beverage sectors.

“This time around it is like the reverse of the Easter holidays when most Hongkongers left the city to spend across the border or overseas,” Chui said.

“[Labour Day] is not a long holiday in Hong Kong, but there will be an influx of visitors to the city to spend.”

Easter is not a public holiday on the mainland.

Hong Kong wants a slice of the Mideast-visitor pie, but is city ‘halal’ enough?

Chui said that while prices in Hong Kong were not as low as in Shenzhen, local businesses should be working on providing better services and products so customers felt they were getting value for their money.

Separately, Hong Kong airport handled 4.36 million passengers and 29,840 flight movements last month, representing year-on-year increases of 56.7 per cent and 48.2 per cent, respectively.

The Airport Authority also said that all passenger segments saw growth, which was partly driven by the long Easter holidays at the end of March, with traffic to and from Southeast Asia, the mainland and Japan recording the most significant increases.

China, Europe can look past disputes to cultivate food trade, EU agriculture commissioner says

https://www.scmp.com/economy/china-economy/article/3260045/china-europe-can-look-past-disputes-cultivate-food-trade-eu-agriculture-commissioner-says?utm_source=rss_feed

Despite souring relations, there is still great potential for China and the European Union to boost their agri-food trade, the EU’s chief agricultural official said while urging Beijing to increase its purchases from Ukraine.

Janusz Wojciechowski, the EU agriculture commissioner, said on Monday that he intends to reduce trade barriers and encourages both sides to remain open to each other’s agricultural products even as other industries grow fractious, most notably electric vehicles.

“Food products should be excluded from problems in other sectors. Open food trade is very important for food security at the global level,” he said in an interview with the Post in Shanghai.

The visit was made in an environment of tense trade relations following EU anti-subsidy probes into several of China’s exports, including electric vehicles and wind turbines. China has responded with its own investigation into imported brandy.

Leading a delegation of over 70 business representatives from the agri-food sector, the largest in his tenure, Wojciechowski said the size of the entourage “shows how important China is as our trade partner”.

While China exports a large volume of goods to Europe, such as solar panels and new energy vehicles, the EU has a significant trade surplus when it comes to the agri-food sector.

China is the third-largest destination for food from the EU and the fifth-largest source of the EU’s food imports, according to 2022 figures from the European Commission.

But EU exports to China in this category have been on a downward trend since 2020, mainly due to the Covid-19 pandemic and Russia’s invasion of Ukraine. Wojciechowski said he hoped trade volume could return to 2020 levels.

The EU exported about €17.7 billion (US$18.9 billion) worth of agri-food products to China in 2020, and imported over €5.1 billion worth of those goods from the country the same year.

China is finalising approval for a second batch of geographical indications (GI) covering 175 agricultural products from the EU, said the commissioner, following an agreement signed in 2020 to use the label to protect 100 European products in China and 100 Chinese products in the EU.

A type of intellectual property right, the GI label identifies a product as carrying a specific geographical origin and can codify other distinguishing characteristics.

Representing a total business value of €350 billion, Wojciechowski’s delegation is also attending a major food and beverage trade fair in Shenzhen later this week, with eyes on expanding their presence in the China market – and its voracious consumer base eager to try a variety of high-quality food.

“In China, we can observe more interest in the quality of food, safe and healthy food. Chinese consumers are more sensitive to this,” he said, adding that high quality standards are the main value of food produced in Europe.

The most popular items China imports from the EU include infant food, cereals, pork and wine, while the EU mainly purchases – in comparatively lower volume – animal products such as meats and fats from China.

Despite China’s recent acceptance of genetically modified (GM) crops – with dozens of GM varieties of soybeans and corn approved to be commercially planted late last year – the generally GM-conservative EU remains open to Chinese products as long as those which include GM crops are clearly labelled, Wojciechowski said.

As Beijing places greater emphasis on self-sufficiency in food amid more pronounced geopolitical uncertainties, the commissioner said there was no contradiction between China’s ambition for food security and desire for open trade relations, considering its population of over 1.4 billion.

The commissioner also implored China to return to previous trade levels with Ukraine. The war-ravaged country counted China as its largest grain importer, but this status was disrupted after Russia pulled out of the Black Sea Grain Initiative last summer.

“I hope that you will return to this position, [with Ukraine as] a big exporter to China, the Asian and African market. This is very important for the stabilisation of the situation in the global market,” he said.

The Black Sea initiative was implemented in July 2022 to ensure that Ukraine, one of the world’s breadbaskets, could safely export its grain from its southern ports, but it expired a year later after Russia chose not to renew. Ukraine has since redirected a large share of exports to the EU and shipments to China have slumped.

Germany arrests staffer at E.U. Parliament over China spying suspicion

https://www.washingtonpost.com/world/2024/04/23/european-parliament-arrest-china-spying-afd/2024-04-23T09:16:05.513Z

BERLIN — German authorities have detained the aide of a far-right European lawmaker on suspicion of spying for China in the city of Dresden, prosecutors said in a statement. The European Parliament said Tuesday that it has suspended the person in question “with immediate effect.”

The aide was arrested Monday amid mounting concern in Europe over Chinese espionage activity. Less than 24 hours earlier, three other German nationals were detained on suspicion of having worked for a Chinese intelligence service. Britain also charged two men on Monday with spying for China.

According to German prosecutors, the suspect repeatedly passed on information about negotiations and decisions in the European Parliament to his intelligence client in January this year.

“He also spied on Chinese opposition figures in Germany for the intelligence service,” the statement said.

Maximilian Krah, a member of the European Parliament for the German far-right Alternative for Germany (AfD) party since 2019, later confirmed media reports that the suspect was his employee.

“I learned about the arrest of the member of my staff, Jian Guo, from the press this morning,” Krah said in a statement. “I don’t have any additional information. Spying for a foreign state is a serious accusation. If the allegations prove true, it will result in the immediate termination of Mr. Guo’s employment with me.”

A spokesperson for the AfD described reports of the arrest as very disturbing.

German Interior Minister Nancy Faeser called for the “extremely serious” allegations to be “rigorously cleared up.”

“If it is confirmed that spying for Chinese intelligence services happened from in the European Parliament, then that is an attack on European democracy from within,” she said.

The accusation of spying on members of the Chinese opposition in Germany is just as serious, Faeser said, adding that “anyone who employs such a staff member also bears the responsibility for them.”

The Chinese Foreign Ministry on Tuesday described the “so-called Chinese espionage activities” reported in Germany and the United Kingdom as “hype.”

“We urge relevant parties to stop spreading fake news about this so-called ‘Chinese espionage threat’ and stop this anti-China political manipulation and slander,” said spokesman Wang Wenbin.

In Germany, the arrest sparked renewed criticism of Krah — even from his own party ranks.

“He has been a problem for the delegation for the last five years with his aloof attitude toward China, Russia, the USA, Israel, women and much more,” tweeted Sylvia Limmer, Krah’s AfD colleague in the E.U. Parliament.

Konstantin von Notz, a German Greens party lawmaker, said the arrest of Krah’s employee is further evidence of the far-right AfD’s authoritarian tendencies.

“[The AfD] makes no secret of its contempt for our democracy and our constitutional state. And that obviously makes their politicians very vulnerable to influence and control from China and Russia,” von Notz told German media outlet RND.

Earlier this month, the AfD was accused in Parliament of boosting Russian propaganda and undermining German security following reports of a Russian disinformation campaign via the pro-Russian platform Voice of Europe. Interviews with Krah and fellow AfD politicians Petr Bystron had been published on the site.

German media also reported last week that Krah was grilled by the FBI in December over possible payments from pro-Russian patrons — accusations that Krah characterized as “absurd and fabricated.”

Beatriz Rios in Brussels and Lily Kuo in Taipei contributed to this report.

Heavy rains continue to batter China’s Guangdong province as forecasters warn more storms are coming

https://www.scmp.com/news/china/politics/article/3260074/heavy-rains-continue-batter-chinas-guangdong-province-forecasters-warn-more-storms-are-coming?utm_source=rss_feed

Heavy rainfall continued in the Chinese province of Guangdong in the wake of floods that have killed at least four people and displaced tens of thousands more.

The main rainbands moved south to the coast with the cities of Shenzhen, Zhuhai, Jiangmen and Yangjiang experiencing the heaviest rain on Tuesday morning.

Over a hundred weather observation stations recorded 50mm to 100mm (2-4 inches) of rain in the space of three hours, according to the Guangzhou Meteorological Service.

Previously the worst affected areas were in the north of the province, with floods and landslides displacing more than 110,000 people along the Bei River, a tributary of the Pearl River.

State news agency Xinhua said the Bei had recorded its highest levels in over 50 years years on Monday, although the floodwaters have now started to recede, according to Guangzhou-based news site dayoo.com.

The National Meteorological Centre said the rain would lessen on Tuesday evening and Wednesday, but warned there would be further storms later in the week which will last until Friday.

Central parts of Shenzhen, which sits on the border with Hong Kong, saw the worst rainfall on Tuesday with the city authorities issuing a red alert, the highest level in the country’s four-tier warning system.

Residents were also warned to be alert to the risk of “waterlogging, flash floods, landslides, mudslides and other disasters that may be caused by heavy rains”.

The Guangdong provincial authorities also warned there was a “high risk of geological hazards during heavy and frequent rainfall”.

The weather took its toll on travel, with some rail services having to reduce their speed during the worst storms. Dozens of flights have also been delayed at Guangzhou Baiyun International Airport, the country’s busiest, in recent days, including at least 66 on Tuesday morning.

The meteorological service in the provincial capital Guangzhou said that the past six days had seen the heaviest April rainfall in 10 years.

It also said that 581.9mm of rain had fallen between the start of the month and Sunday, the worst in 66 years.

It warned residents to brace for further storms and be alert to natural hazards near rivers, slopes and cliffs.

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China’s ‘extreme’ national security focus a drag on business, US trade group says

https://www.scmp.com/economy/china-economy/article/3260067/chinas-extreme-national-security-focus-drag-business-us-trade-group-says?utm_source=rss_feed

China should dial down its “extreme” emphasis on national security and keep foreign companies in mind when crafting industrial policy to give them the incentive to expand their presence in its market, a US business lobby has said.

In a 600-page document featuring numerous policy reviews and recommendations, the American Chamber of Commerce in China called for the country to allow foreign organisations to compete on a level playing field with domestic firms and clarify how the country’s national security laws apply to business.

“As much as China wants to attract more foreign investment, there are forces within the government which lean in the direction of impeding foreign investment because of an extreme emphasis on national security,” Lester Ross, chair of the chamber’s policy committee, said on Tuesday as its annual white paper was released.

Beijing’s revised state secrets law widening the scope of restricted sensitive information to “work secrets” will come into force on May 1, following an anti-espionage law in effect since last April that has often been named by foreign chambers as a deterrent to business interests.

“This spills over to work security or occupational security,” Ross said. “We have a law, we do not yet have regulations defining what a work secret is … it’s a serious problem.”

China’s far-reaching laws on national security have been implemented while the government has also pushed policies to drive foreign investment, part of an overall effort to stimulate growth and restore trust in the country’s economic prospects.

However, in the chamber’s document – which outlined concerns and made proposals to both the Chinese and US governments – surveyed American firms said they remain “cautious” in their investments.

Chamber chairman Sean Stein said “changing sentiment” among foreign investors would be beneficial, as members have seen “limited implementation” of Beijing’s 24-point policy, a framework released in August to boost foreign investor confidence.

“We are in a stage now where promises and policies don’t move markets, and they don’t lead to investment,” Stein said. “Action leads to investment … that will really change sentiment.”

Stein said another impediment to foreign investment can be seen when the Chinese government blocks competition from foreign firms in certain sectors due to a preference for products made in China.

“[But] made in China doesn’t always mean made in China. Often it means made in China by a Chinese company,” Stein said. “What we are seeing is the number of sectors where that applies seems to be growing, not contracting.”

The report highlighted the medical device industry as one sector that has struggled in this regard, despite healthcare being listed in the 24-point document as a priority for greater market access.

US firms in China are more worried about bilateral tensions: AmCham survey

The chamber also called on the US government to clear up details on its expansive export controls with their Chinese counterparts, particularly the “entity list” governing activity in the tech sector.

“The absence of explicit restrictions pertaining to investments in non-sensitive technology sectors in China has cast a shadow of ambiguity over planning and fundraising efforts by US companies and those of US allies and partners,” said the chamber in its report, which was crafted with contributions from over 100 members.

The sluggish state of China’s economy remains a hurdle for American investors. An ailing property market and growing tension in China-US relations, complete with calls from Western governments for businesses to “de-risk” and diversify their supply chains, have all contributed to a loss in confidence from overseas capital.

“The era when American companies or foreign companies, frankly, can invest in China and get returns greater than they receive in other markets is disappearing,” Stein said. “The advantage … has largely disappeared in most sectors.”

The report said tensions in the bilateral relationship were still cited as the top roadblock to business for a fourth consecutive year, though it did welcome the resumption of high-level US-China official talks, including Secretary of State Antony Blinken’s visit to China this week.

China tourist dies in plunge from cliff while posing for photo next to famous tree at Indonesia volcano

https://www.scmp.com/news/people-culture/trending-china/article/3259972/china-tourist-dies-plunge-cliff-while-posing-photo-next-famous-tree-indonesia-volcano?utm_source=rss_feed

A tourist from China who was posing for photos at a famous volcano in Indonesia has died after she accidentally stepped on her dress and tumbled down a cliffside.

The 31-year-old woman, surnamed Huang, and her husband were part of a tour group to Ijen – a volcano tourism park in the province of East Java.

They climbed to the edge of the crater to see the famous “blue fire” scenery and watch the sunrise on April 20, the Xiaoxiang Morning Herald reported.

Huang stood next to an upright dead tree – a famous landmark at the park that has been filmed and posted many times on social media – for her husband to take photos of her with the volcano as the backdrop.

She ignored warnings from the tour guide who told her it was “very dangerous” on that spot, the report said.

The woman’s long dress caught on something, and she tripped and plummeted about 75 metres down a cliff.

The accident happened just after 6am and it took local rescuers two hours of searching for Huang, who was pronounced dead when they found her.

Rescuers carried her body down the mountain at about 11pm.

Police ruled Huang’s death an accident, noting the woman had suffered multiple injuries and a fractured left leg.

“The victim fell 75 metres after slipping from the edge of a ravine. She was seriously injured after hitting rocks, and died of severe injuries to her head and body,” an officer said.

In his distress Huang’s husband repeatedly banged his head against the hospital’s walls while calling relatives to tell them the tragic news, the report said.

Ijen has become a well-known tour destination on mainland social media since last year thanks to the popularity of a documentary, Fire of Love, about a French couple travelling to volcanoes around the globe.

Many tourists flock to Ijen’s crater to witness the “blue fire” phenomenon, which is blue light emitted from the combustion of sulphuric gases.

On Xiaohongshu, China’s Instagram, some users shared their experience of visiting Ijen and highlighted the dangers there, but said the breathtaking view and the trip are worthwhile.

Huang’s death has reminded people of a number of similar tragedies in China during the past few years resulting from people posing for photos in dangerous places.

In 2019, a China university student died from falling down Huashan Mountain in the northwest of the country when she was leaning her head back to take a selfie.

Last year, after a man released pictures of himself sitting on the edge of a crag in Fujian province in southeastern China with the comment: “It’s too cool to take photos near a cliff,” some of his followers on Xiaohongshu said they would do the same.

China leads improvements in fossil fuel engine efficiency to fill electric gap

https://www.scmp.com/news/china/science/article/3259991/china-leads-improvements-fossil-fuel-engine-efficiency-fill-electric-gap?utm_source=rss_feed

China continues to break fossil fuel engine efficiency records with new technology, at the same time as a growing number of car companies ceases to fund combustion engine research.

Weichai Power marked a new industry milestone on Saturday, unveiling the world’s most efficient commercial diesel engine – with a thermal efficiency of more than 53 per cent – at the World Congress on Internal Combustion Engines in China.

The diesel engine developer and manufacturer, based in the eastern province of Shandong, is a leader in breakthrough technologies, such as high-expansion combustion and high-efficiency fuel injection, that underpinned the achievement.

Speaking at the opening ceremony, conference president Jin Donghan noted that internal combustion engines are the dominant driving force in land transport, engineering machinery and long-distance shipping.

They promise “the biggest potential” in promoting energy conservation and carbon reduction, said Jin, who is also the president of Tianjin University and a Chinese Academy of Engineering (CAE) academician.

Based on current estimates of Chinese diesel engine ownership, the new engine translates into annual fuel savings of about 31 million tonnes and a reduction in carbon emissions of about 97 million tonnes, according to a state-run newspaper.

The article, published on Monday by Science and Technology Daily, said the engine could slash fuel costs, estimating that the owner of a heavy-duty tractor covering 250,000km (155,343 miles) a year would save about 98,000 yuan (US$13,532).

CAE researcher Zang Jiyuan said that with most commercial vehicles still powered by diesel engines, and given that the transition to electric cars will take 10-20 years, “these savings are going to be big numbers”.

Zang pointed out that the production of commercial vehicles – such as trucks, buses and trailers – in China alone can be counted in the millions.

Since the inception of the diesel engine more than 120 years ago, scientists and engineers around the world have been striving to improve thermal efficiency – a key indicator of engine performance.

Thermal efficiency of diesel engines stagnated at around 46 per cent for a long time, despite international research efforts. The barrier was broken in 2020 by Weichai Power, which achieved a diesel engine with a body thermal efficiency of 50.23 per cent.

The company said the advancement would have uses beyond transport, including in construction machinery, agricultural equipment, ships and power generation.

China’s electric car boom is also contributing to the development of fossil fuel engine technology.

In 2020, Shenzhen-based BYD, the world’s leading electric car manufacturer and the second-largest producer of EV batteries, launched what it claimed was the most thermally efficient petrol engine then in production.

The engine, with a thermal efficiency of 43 per cent, takes advantage of electrification to eliminate the traditional front-engine accessory drive – belts and all – to further reduce wear and improve efficiency.

A scientist specialising in engine research at a mainland university said that the development of electric vehicles had “not directly led” to efficiency improvements in the internal combustion engine.

However, “the two are technologically beneficial, which in turn boosts the car industry”, said the scientist, who asked not to be named.

In contrast, some overseas carmakers are phasing out internal combustion engines and heading into an all-electric future.

According to a Nikkei report in 2022, Nissan intends to become the first major Japanese carmaker to make the break, announcing that it will stop funding their development in all of its major markets except the US and focus its resources on electric vehicles

Audi CEO Markus Duesmann told a German newspaper in 2021 that the manufacturer would “no longer develop a new combustion engine”, but adapt existing combustion engines to new emissions regulations.

Although Duesmann affirmed that “the future is electric”, he noted that demand for conventional engines will remain significant in certain regions of the world for some time to come.

Cross-border synergy with China can help US more quickly adopt EVs

https://www.scmp.com/opinion/china-opinion/article/3259881/cross-border-synergy-china-can-help-us-more-quickly-adopt-evs?utm_source=rss_feed

Is there an overcapacity problem in green tech? Whatever the case of may be, it matters little to trade between China and the United States. Regardless of whether it’s a leading or modest exporter, China does not sell that many solar modules or electric vehicles (EVs) to the US. While Tesla’s market share in the US has dropped to barely above 50 per cent, its dominance is challenged mainly by German, Korean and other American competitors.

The US is making an issue over China’s capacities in green tech not as a market but as a competitor under threat. At issue is not whether there is overcapacity, but rather where the most competitive capacities are, in terms of quality, costs and technology.

Unlike basic commodities like steel, which are largely interchangeable, cars are highly differentiated products. No matter how well-made, the cheap Chinese cars of old were no threat to premium brands like BMW. But not so the latest EV models that are both technically impressive and affordable. And as EVs gain prominence, petrol cars will indeed face global overcapacities.

Around 18 million EVs are projected to be made next year, up from 10.5 million last year. But growing capacity alone does not quite equate with overcapacity. Unlike the solar industry a decade ago, the dynamics for the EV industry are far more complex. With high-cost producers in a high-priced market, the US faces more severe challenges within its own EV sector.

Most new industries go through stages of growth, proliferation and consolidation. EVs are no exception. China has been consolidating its EV industry. From a height of about 500 EV assemblers in 2018, there are an estimated 140 car companies (of all types) in China – a third of which may exit this year.

In the US, after Lordstown went bust last year, Faraday Future and Fisker may soon follow suit. Other US EV start-ups like Lucid and Rivian, despite respectable growth, have struggled with low sales volumes.

The proliferation of EV start-ups is shaped more by the forces of global capitalism than the support of governments. Venture capitalists are driven by an exuberant outlook on the trillion-dollar market potential and sky-high valuations of market leaders like Tesla and BYD.

Rivian hit a valuation of US$150 billion, far exceeding Ford’s, before falling to US$10 billion. Since Tesla, the US’ market economy has yet to produce another success of its kind. Meanwhile, GM and Ford have scaled back their EV ambitions.

Plug-in hybrid electric vehicles (PHEVs), which have a much wider range than pure EVs, are arguably more suited for the US market. Up until recently, the US was more focused on pushing full EVs. Demand for PHEVs in the US is still lower than that of pure EVs. But this gap can be bridged by Chinese suppliers, who lead in the world in affordable PHEVs.

Production capacity is only half the equation in supply-demand balance. Overcapacity is a result of unrealised market demand as much as industry proliferation. While European and Korean-made EVs are able to make use of US tax credits, Chinese EVs are largely locked out.

If EV pricing in the US can approach the level of China’s, demand will mushroom, absorbing much of the expanding capacity. Trade restrictions imposed by the US are arguably just as responsible for any unfolding EV overcapacities as China’s industrial output.

While the Biden administration supposedly puts a high priority on tackling climate change, a zero-sum mindset trumps US-China cooperation. The most effective way to increase EV demand in the US is to attract the likes of BYD to set up passenger vehicle manufacturing in the US, perhaps in partnership with GM or Ford.

How the US, home of trailblazer Tesla, lost the EV race to China

Just like South Korea, Japan and the US, China had adopted industrial policies to promote certain industries at their early stages. Particularly, local governments in China have been key drivers. But relatively mature industries like solar and EVs are no longer dependent on government support in China. They have entered virtuous cycles of evolution, both improving technologies and reducing costs.

In the annals of economic development, industrial policies aimed at undermining the industries of rival states are rarely seen. The US is a unique exception exemplified by what it did to Japan’s semiconductor industry in the 1980s, and more recently to China’s 5G and green tech industries.

If China were to use the visible hand of the state to accelerate industry rationalisation, to comply with American wishes, it would only make Chinese market leaders stronger at an ever faster pace. Culling marginal players will boost the profitability of industry champions, making them more formidable rivals.

At issue is not so much the quantity of green tech capacities in China, but the quality of its highly competitive capabilities.

The rapidly evolving green technology landscape represents an ecosystem straddling economic ambitions, environmental imperatives and escalating geopolitical rivalries. US-China duels over techno-industrial strategies are pulling their green tech ecosystems apart. Balkanisation into fragmenting spheres is distorting resource flows, suffocating entrepreneurship and deterring cross-border synergy that is vital for green innovation.

Beyond narrow industry interests and the push to “buy American”, the overall effectiveness of the US’ green transition is at stake. The US needs to quickly expand its EV charging infrastructure, supply of EV batteries and availability of quality EVs (particularly PHEVs) at affordable prices – all areas where China is well-suited to effectively support the costs.

These complex challenges demand that enlightened self-interest transcend outmoded zero-sum mentalities. Frameworks for cooperative competition of carefully instituted win-win interconnectedness may help synergise the green industry ecosystems of US and China.

Filipinos more concerned about inflation and jobs as Marcos Jnr focuses more on South China Sea, survey finds

https://www.scmp.com/week-asia/economics/article/3260019/filipinos-more-concerned-about-inflation-jobs-marcos-jnr-focuses-more-south-china-sea?utm_source=rss_feed

Filipinos were more concerned about inflation and other economic issues such as poverty and unemployment, reflecting public expectations of President Ferdinand Marcos Jnr to fulfil his election manifesto even as he directed his focus on tensions in the South China Sea, according to a survey.

Philippine-based independent polling firm WR Numero told This Week in Asia its findings also showed the Philippine public was “not a foreign-policy-type of population” and that its demands of the president were no different than other elected public officials.

The report published on April 3 found that seven in 10, or nearly 70 per cent of 1,500 respondents said the Philippine Congress should focus immediately on rising commodity prices. About 52.7 per cent of those polled said lawmakers should prioritise hunger and poverty while 50.3 per cent cited the lack of jobs and opportunities as their key concerns, according to the survey.

Only 14 per cent of respondents said Congress should focus on China’s aggression in the West Philippine Sea.

Other issues such as rising criminality and more illegal drug users – both of which were prevalent during the previous administration under strongman Rodrigo Duterte – were at 22 per cent and 27 per cent, respectively.

Escalating Marcos vs Duterte family feud brings a plague on both their houses

The survey was conducted between November and December last year.

While Marcos Jnr remains popular among the Filipino majority, recent surveys have shown his clout may be in decline – his trust and approval ratings saw a double-digit drop earlier this year from 68 per cent in December to 55 per cent in March, according to a poll by Pulse Asia.

Cleve Arguelles, a political scientist and head of WR Numero, told This Week in Asia that while the state of the economy was a constant concern for Filipinos, the firm’s survey was reflective of public expectations of Marcos Jnr and his administration, whose electoral platform in 2022 focused on economic recovery.

For instance, Marcos Jnr had repeatedly vowed to lower the price of rice to 20 Philippine pesos (US$0.35) a kilogram. In August, agriculture officials said Marcos was unlikely to meet his campaign promise in the next two years, citing a 15-year-high in global rice prices.

The Philippines is the world’s top rice importer with the crop being a staple of the Filipino diet.

Speed thrills: Philippine president urges delay in ban on light vehicles

“For the average Filipino, there’s an overriding concern about the state of the economy and how that affects them on a day-to-day basis,” Arguelles said.

He added that it was crucial to contextualise the Marcos administration’s claims that it had uplifted the Philippines’ economic state after the pandemic.

Speaking to diplomats in January, Marcos Jnr announced that the Philippines had recovered “from the reeling effects” of the pandemic and geopolitical conflicts in Ukraine and the Middle East.

He said the Philippines was one of the fastest-growing economies last year, citing data from organisations such as the Asian Development Bank, the World Bank, and the International Monetary Fund.

Inflation in the Philippines rose slightly in February to 3.4 per cent, as prices of rice – which surged by 23.6 per cent – and other items pushed the headline figure higher. However, government authorities said this was still within its target range of two to four per cent.

“But I think it’s also worth asking whether that’s also true for many Filipinos. If we look at what their top concerns are, it appears that promise of economic recovery isn’t fully reflected on the ground yet,” Arguelles said.

Despite Marcos Jnr earning international recognition for his actions countering aggression from China coastguard vessels in the South China Sea, Arguelles said Filipinos likely did not view this issue as urgent compared with the country’s economic issues.

“We’re not exactly a foreign-policy type of population. There are countries where voters do judge their chief executives on the basis of foreign policy and that weighs a lot on their considerations of whether they like the president or not.

“The United States is a good example of that – what the US president does outside the country and how it relates to the rest of the world, voters give weight to that,” Arguelles said.

This was seen in Filipinos’ support for former president Rodrigo Duterte, who continued to enjoy popularity until the end of his term despite favouring China in his foreign policy.

Philippine universities defend Chinese students on Taiwan-facing province

Duterte, however, was criticised recently over his “gentleman’s agreement” with Chinese President Xi Jinping regarding the South China Sea.

Harry Roque, a former spokesman of the Duterte administration, said earlier this month that Duterte had agreed with China to maintain the status quo around the disputed Second Thomas Shoal, a move slammed by Philippine politicians including Marcos Jnr and security analysts. Following Roque’s comments, Duterte confirmed the existence of such an agreement and arranged a media conference to defend his actions.

Despite Filipinos disagreeing a lot with Duterte on his position on the West Philippine Sea, it didn’t affect his popularity among them,” Arguelles said.

As for Marcos Jnr, he could regain public support by doubling down on his economic promises during his 2022 presidential campaign and achieving “inclusive recovery”, according to Arguelles.

“It’s a matter of ... the amount of resources that the government can mobilise to get back on track in terms of their economic agenda,” he said.

Apple adds suppliers in China despite efforts to spread out production, underscoring country’s major supply chain role

https://www.scmp.com/tech/big-tech/article/3260024/apple-adds-suppliers-china-despite-efforts-spread-out-production-underscoring-countrys-major-supply?utm_source=rss_feed

Apple added eight Chinese suppliers and removed four contractors on the mainland during its past financial year ended September, the first time since 2021 that the US tech giant introduced more suppliers from the country than it cut, according to its newly published supplier list.

Despite Apple’s recent efforts to diversify its supply chain and shift more production elsewhere in Asia amid geopolitical risks, mainland China remains the firm’s main manufacturing base, home to over a third of the factories run by its 187 disclosed suppliers, according to a Post analysis.

A total of 157 contractors conducted manufacturing in mainland China, up from 151 the previous year. The list represents 98 per cent of Apple’s direct spending on materials, manufacturing and assembly of its products worldwide. Data on each supplier’s production value and capacity was not disclosed.

Chinese suppliers remain key to Apple, according to CEO Tim Cook, who went on a charm offensive in the country last month. In an interview with state media China Daily, he was quoted as saying “there’s no supply chain in the world that’s more critical to us than China”.

Apple’s newly added mainland suppliers include Baoji Titanium Industry, an alloy manufacturer based in western Shaanxi province that counts aircraft makers like Boeing and Airbus as clients and also serves the shipbuilding sector.

Another addition was San’an Optoelectronics, a display technology company based in Xiamen city in southeastern Fujian province. It is believed to be supplying mini-LED chips for Apple’s iPad Pro and MacBook Pro, according to Chinese media.

Other additions include Shenzhen BSC Technology, which provides smart manufacturing solutions, Zhejiang Tony Electronic, which specialises in semiconductor materials, and Jiuquan Iron & Steel.

Apple, which is known to adjust its contractor list every year based on reasons such as quality issues and environmental concerns, also signed back three Chinese suppliers that were previously dropped.

They were smart electronics devices solutions provider Jones Tech, metal and plastic chassis assembler Zhenghe Group and printing and packaging company Paishing Technology.

Mainland China accounts for the lion’s share of Apple’s 13 new suppliers last year. Two were from Taiwan, while Japan, Norway and India each contributed one.

Still, Apple has been working to reduce its reliance on Chinese suppliers by increasing production in South and Southeast Asia.

Tata Electronics, an arm of India’s salt-to-steel conglomerate Tata Group, made its debut on Apple’s latest supplier list.

While the country contributes just under 2 per cent of the factories where Apple’s suppliers conduct manufacturing, its shipments are skyrocketing.

iPhone exports from India are set to nearly double to US$12.1 billion this financial year from US$6.27 billion a year earlier, according to intelligence firm The Trade Vision.

[World] German far-right party aide held in China spy probe

https://www.bbc.co.uk/news/world-europe-68880086

German EU lawmaker’s aide is arrested on suspicion of spying for China

https://apnews.com/article/germany-china-spying-european-parliament-lawmaker-employee-85e07313ec9580d5845cd9fd999e760eFILE - A country's flag flies in front of the embassy of China in Berlin, Germany, Monday, April 22, 2024. A man who works for a German lawmaker in the European Parliament was arrested on suspicion of spying for China, German prosecutors said Tuesday, April 23. (Hannes P. Albert/dpa via AP, File)

2024-04-23T07:11:46Z

BERLIN (AP) — A man who works for a German lawmaker in the European Parliament has been arrested on suspicion of spying for China, German prosecutors said Tuesday.

The suspect, identified only as Jian G. in line with German privacy rules, was arrested Monday in Dresden, federal prosecutors said in a statement. They said that he has worked for a German lawmaker in the European Union’s legislature since 2019.

The statement didn’t specify which lawmaker employed him, but German public broadcaster ARD and magazine Der Spiegel reported that he works for Maximilian Krah of the far-right Alternative for Germany, who is that party’s top candidate in the European Parliament election in early June.

Jian G. is accused of working for a Chinese intelligence service and of repeatedly passing on information on negotiations and decisions in the European Parliament in January. Prosecutors allege that he also snooped on Chinese dissidents in Germany.

News of the arrest came a day after three Germans suspected of spying for China and arranging to transfer information on technology with potential military uses were arrested in a separate case.

AfD politician’s employee arrested on suspicion of spying for China

https://www.theguardian.com/world/2024/apr/23/afd-politician-employee-arrested-germany-on-suspicion-of-spying-for-china

German police have arrested an employee of an Alternative für Deutschland politician in Dresden on suspicion of espionage for China, the broadcasters ARD, RBB and SWR have reported.

The employee, named as Jian G, worked as an assistant for the AfD’s top candidate in the European parliament elections, Maximilian Krah, and lived in Brussels as well as Dresden, the broadcasters report.

Investigators suspect he passed on information on parliamentary operations to China’s ministry of state security (MSS), with a particular focus on Chinese opposition members, according to the reports.

The AfD was not immediately available for comment.

The suspect was arrested on Monday night, hours after three German nationals were arrested on suspicion of working with MSS to hand over technology that could be used for military purposes.

The arrests come a week after the chancellor, Olaf Scholz, travelled to China to press Beijing on its support for Russia’s wartime economy and to raise issues of intellectual property theft and fair market access.

Taiwan pledges to remove 760 statues of Chinese dictator Chiang Kai-shek

https://www.theguardian.com/world/2024/apr/23/taiwan-pledges-to-remove-760-statues-of-chinese-dictator-chiang-kai-shek

Taiwan’s government has pledged to remove almost 800 statues of Chiang Kai-shek, the Chinese military dictator who ruled the island for decades under martial law, but whose legacy remains a point of contentious debate.

In 2018 the government established a transitional justice committee to investigate the rule of the former generalissimo, who was president of the Republic of China (ROC) – in China and then in Taiwan – until his death in 1975. Among its recommendations was to remove the thousands of statues from public spaces.

Speaking to Taiwan’s legislature on Monday, cabinet official Shih Pu said the ministry of interior would quickly remove the 760 still remaining. The pledge was in response to criticism that the government was not moving fast enough.

Taiwan is dotted with statues of Chiang, and for years government and society has been embroiled in debate over what to do with them, in particular the largest inside Taipei’s Chiang Kai-shek memorial hall. Many have already gone – often moved to a park in northern Taipei, which is now famous for the thousands of Chiang likenesses arranged around the grounds.

On Monday Shih said the military in particular had been slow to take-up subsidies provided as an incentive to remove the statues.

“The defence ministry has said it needs to take into account the military tradition,” Shih told the legislature.

The defence minister last week said it was ROC military tradition to honour Chiang, who had founded its training academies in China and then Taiwan, and that he considered military sites to be private property, the South China Morning Post reported.

The pledge to remove the remaining statues comes after calls for progress on the stalled decision about a statue of Chiang in Taipei that is more than six metres high and protected by a military police honour guard.

The debate over Chiang’s legacy is largely split along party lines, with the ruling Democratic Progressive Party advocating a move away from ongoing tributes, while Chiang’s KMT Party – now in opposition – accuses them of wanting to erase history.

Chiang’s legacy has long been a point of political contention in Taiwan. At the end of China’s civil war in 1949, Chiang, the KMT and millions of supporters fled to Taiwan in defeat. He established the Republic of China government in exile, and ruled Taiwan’s population under a brutal martial law for decades until his death in 1975, when power was transferred to his son. By the end of martial law in 1987 as many as 140,000 people were estimated to have been imprisoned and another 3,000 to 4,000 executed for actual or perceived opposition to the KMT.

But some in Taiwan say that legacy must be weighed against Chiang’s successes, noting that he also oversaw Taiwan’s path to economic prosperity, fought against the Communists and the Japanese, and founded Taiwan’s military academies. The KMT also still exists as a major political party.

The DPP has faced accusations of seeking to “de-sinicise” Taiwan in pushing to end memorialisation of Chiang. The party holds a pro-Taiwan sovereignty position, in contrast to the KMT’s continuing embrace of Taiwan’s historical and cultural ties with China. The KMT has also expressed opposition to the transitional justice commission, and its adverse findings against the party.

Hsu Yu-chien, the KMT’s assistant director of international affairs, said Taiwan was a diverse society and the DPP should not be “imposing [its] ideology”.

“We believe it’s very important for the current government to contemplate more on the various groups of people’s historic memory.”

Disabled Chinese mother hits back after suffering ‘hurtful’ online abuse that she is ‘unfit’ to be parent

https://www.scmp.com/news/people-culture/social-welfare/article/3258492/disabled-chinese-mother-hits-back-after-suffering-hurtful-online-abuse-she-unfit-be-parent?utm_source=rss_feed

A loving disabled mother in China who walks on her hands has been subjected to a barrage of offensive and hurtful verbal attacks online, questioning her suitability as a parent.

The 31-year-old, who identifies herself as Haiyan on Douyin, lives in the suburb of Zhanjiang in Guangdong province in southeastern China, and regularly shares her rural life on the platform where she has 23,000 followers, reported The Paper.

Her videos are mostly about her interactions with her five-year-old daughter who often helps with household or farm chores.

In March, Haiyan was criticised and abused online, with many internet users leaving hurtful messages, such as one that read: “A person like you are unfit to have a child”.

Another online observer wrote: “Look at how you look. How dare you give birth to a child? Do you want your child to share your burdens?”

“Have you considered your child’s interest? Her life will be very tough. It’s unfair for her to have you as her mother. You are so selfish,” said a third person.

Others doubted the authenticity of the videos, speculating they were set up by a marketing team to attract online traffic for live-streaming sales.

Haiyan said the videos were a genuine record of her life that were filmed by her daughter or relatives who occasionally visited her home.

“Those people posting online violence do not know me well. Their comments have hurt me. But what I ought to do is to adjust my own mindset,” she said.

“I live positively and well. I cherish every day I live because who knows what accident will happen tomorrow.”

Haiyan was not born disabled. Her condition was caused by polio contracted at eight months old when she became seriously unwell and was bedridden for five years.

She has been living her “hands replacing legs” life for more than two decades.

Her marriage status is not clear, and she never mentions her daughter’s father in her videos.

“Some people say I am selfish and I am harming my child. You do not see the other side of me, striving to live well. You do not know how much hardship I have endured,” Haiyan said.

“My daughter is the hope of my life. She is the only reason I continue to live. My life is full of regrets, but her arrival has completely changed it.

“Although I am not like everybody else, I am able to take care of and educate my kid well,” she said.

Haiyan’s story has melted hearts on mainland social media.

“Salute this strong mother. I am sure your life will become better and better,” one person said online.

“You are a great mother and a strong beauty,” said another.

---

South China Sea: as tensions mount, Wang Yi vows Beijing to be by Cambodia’s side no matter what

https://www.scmp.com/news/china/diplomacy/article/3260009/south-china-sea-tensions-mount-china-vows-be-cambodias-side-no-matter-what?utm_source=rss_feed

China will be Cambodia’s “most reliable friend and the firmest supporter”, regardless of the international environment, Foreign Minister Wang Yi told Cambodian leader Hun Manet on Monday amid growing tensions in the Asia-Pacific region.

During the meeting in Phnom Penh, Wang said China would continue to invest more in Cambodian infrastructure and promote production capacity cooperation, according to China’s foreign ministry.

In response, Hun Manet said Phnom Penh’s China policy had been “consistent”, adding that his country would firmly support China’s position on Taiwan, Hong Kong and Xinjiang. There was no mention of the South China Sea in China’s official readout from the meeting.

As China’s investment flow exceeded a quarter of Cambodia’s GDP in 2021, Hun Manet added that Phnom Penh would continue to take part in the Belt and Road Initiative, a Beijing-led infrastructure project.

Wang also met Hun Manet’s father Hun Sen, the President of the Senate, who was prime minister of Cambodia for nearly 40 years.

Hun Sen reaffirmed that Phnom Penh’s stance towards Beijing remained friendly and unchanged and he called the two countries “close friends and strategic partners”.

After taking office last year, Hun Manet visited China and met President Xi Jinping, sending a clear message that Phnom Penh’s China-friendly policy prevailed despite growing rivalry in the Asia-Pacific region related to the South China Sea.

Xi and Hun Manet met twice in September and October last year. Foreign Minister Wang met with his counterpart Chenda Sophea Sok in Beijing in December.

Wang’s high-profile visit to Cambodia this week also included meeting King Norodom Sihamoni, Deputy Prime Minister Sun Chanthol and Chenda Sophea Sok.

China’s ties with Cambodia remain among the closest of the Asean countries. The two have no territorial disputes and Phnom Penh largely depends on China’s trade and investment.

In 2023, trade between the two countries reached $12.26 billion, marking a 5 per cent increase compared to 2022, according to Cambodia’s customs and excise department.

Chinese warships’ ‘exclusive’ access at Cambodia port stokes US concerns

The weight China affords Asean relationships was highlighted by Wang’s itinerary – which included stops in Indonesia and Asean observer state Papua New Guinea before his Cambodia stay – and visits to Beijing by Vietnam and Laos this month.

Beijing’s relations with the Philippines have deteriorated as the Asean member has drawn closer to Washington amid South China Sea disputes. Other Asean members seek to avoid being caught in the crossfire of the US-China rivalry.

In Washington, there has been concern about China’s involvement in upgrading Cambodia’s Ream naval base on the Gulf of Thailand following Phnom Penh’s dismantling of a US-built facility at the same base in 2020.

Tech war: China acquired US-restricted Nvidia AI chips built in Super Micro, Dell and Gigabyte Technology servers, tenders show

https://www.scmp.com/tech/tech-war/article/3260021/tech-war-china-acquired-us-restricted-nvidia-ai-chips-super-micro-dell-and-gigabyte-technology?utm_source=rss_feed

Mainland Chinese universities and research institutes recently obtained high-end Nvidia artificial intelligence (AI) chips through resellers, despite Washington widening a ban last year on the sale of such technology to the country.

A Reuters review of hundreds of tender documents shows 10 Chinese entities acquired advanced Nvidia chips embedded in server products made by Super Micro Computer, Dell Technologies and Taiwan’s Gigabyte Technology after the United States government on November 17 expanded the export restrictions to subject more semiconductors and countries to licensing rules.

Specifically, the servers contained some of Nvidia’s most advanced chips, according to the previously unreported tenders fulfilled between November 20 and February 28. While the US bars Nvidia and its partners from selling advanced semiconductors to China, including via third parties, the sale and purchase of the chips are not illegal on the mainland.

The 11 sellers of the Nvidia chips were little-known Chinese retailers. Reuters could not determine whether, in fulfilling the orders, they used stockpiles acquired before the US tightened chip-export restrictions in November.

Contacted by Reuters, Nvidia said the tenders specify products that were exported and widely available before the restrictions. “They do not indicate that any of our partners violated the export control rules and are a negligible fraction of the products sold worldwide,” a company representative said.

The server makers said they complied with applicable laws or would investigate further.

Among the buyers were the Chinese Academy of Sciences, the Shandong Artificial Intelligence Institute, Hubei Earthquake Administration, the Shandong and Southwest universities, a tech investment firm owned by the Heilongjiang provincial government, a state-run aviation research centre, and a space science centre.

None of the Chinese buyers and retail sellers responded to questions from Reuters about the matter.

Daniel Gerkin, a Washington-based partner at law firm Kirkland & Ellis, said Nvidia chips could have been diverted to China without a manufacturer’s knowledge, given a lack of visibility into downstream supply chains.

If the manufacturer had performed sufficient due diligence, “it presumably would be challenging for the US government to pursue an enforcement action”, Gerkin said.

The US Commerce Department told Reuters it could not comment on any potential ongoing investigations, but said its Bureau of Industry and Security monitored diversions of restricted chips, conducted end-use checks and examined potential breaches.

Officials would investigate credible allegations of violations, including through the use of shell companies, a Commerce Department representative said.

Nvidia said systems built with its graphics processing units (GPUs) – chips that break computer tasks into smaller pieces and process them together – and resold by third parties must comply with US restrictions.

“If we determine that any product was subsequently resold in violation of US export control rules, we’ll work with our customers to take appropriate action,” the Nvidia spokesman said.

Super Micro said it complied with US requirements on the sale and export of GPU systems to regions and parties that require licences.

“If we become aware that a third party has exported or re-exported without the required licences, we investigate the matter and take appropriate action,” it said.

In a letter to Reuters on behalf of Super Micro, US law firm Clare Locke said its client “goes above and beyond what US export restrictions require” by proactively taking steps to ensure its customers do not violate the curbs.

In relation to the tenders that identified its products, Super Micro said they represent “older generation or general-purpose servers not capable of the largest scale AI operations that were available in China prior to the export control regulations”. The awarded suppliers “are not known Super Micro customers”, the company said.

A Dell spokesman said the company “found no evidence of shipping products configured with the restricted chips you listed to the entities you named”, but that it would continue to investigate.

“Our distributors and resellers are required to comply with all applicable global regulations and export controls. If we become aware of a distributor or reseller that is not complying with these obligations, we take appropriate actions, including termination of our relationship,” the spokesman said.

Gigabyte said in an email that it complied with Taiwanese laws and international regulations. It did not respond to subsequent questions about tenders that identified its products as a source of banned Nvidia chips. Taiwan’s Ministry of Economic Affairs said it expected Taiwanese companies to respect US export controls.

The transactions were disclosed in a dozen of the tenders, which Reuters found on public databases that cover only a fraction of purchases by mainland Chinese state entities. But the small snapshot shows China still has access to advanced chips that US officials said could support AI for military applications, such as the modernisation of Chinese defence forces or for developing weapons like hypersonic missiles.

Each of the purchases were limited to several servers and several dozen banned chips. Still, they could be useful for training models and conducting advanced research, according to seven analysts and industry executives.

The tenders, valued at between 71,500 yuan and 1.86 million yuan (about US$10,000 and US$259,000), did not specify the intended uses.

Under Chinese law, procuring agencies representing state or state-affiliated buyers must check that a supplier can fulfil the tender before it is announced as the winner and a contract is signed.

Reuters only analysed tenders whose winners had been announced.

Companies and people accused of violating America’s export controls can face civil or criminal penalties in the US, including fines of hundreds of thousands of dollars and up to 20 years in prison for individuals.

Reuters last year reported that an underground trade of Nvidia chips had emerged in China, as evident at Shenzhen’s Huaqiangbei electronics market in June, before the US widened its curbs. On a return visit in December, the vendors who had spoken to Reuters months earlier had gone, and other sellers said they did not know why they left.

Reuters could not establish why the vendors were no longer at the market.

Balikatan 2024: missiles, military aid, China tensions in focus as ‘biggest ever’ US-Philippines drills begin

https://www.scmp.com/week-asia/politics/article/3259951/balikatan-2024-missiles-military-aid-china-tensions-focus-biggest-ever-us-philippines-drills-begin?utm_source=rss_feed

The start of this year’s annual joint US-Philippines military exercises on Monday coincided with Manila’s acquisition of several new missile systems – and a proposal from Washington to send an additional US$2.5 billion in military aid to the Southeast Asian nation.

It comes at a time of increased tensions between Manila and Beijing in the South China Sea, with the Philippines looking to counter Chinese expansionist efforts by bolstering defensive capabilities, both through the purchase of new equipment and strengthened cooperation with allies such as the United States and Japan.

Can US-Philippine-Japanese military ties really protect regional security?

The 39th Balikatan (“shoulder to shoulder” in Tagalog) exercises, which will continue through May 8, are set to involve 16,000 armed-forces personnel and observers from 14 countries.

Speaking at the opening ceremony on Monday, Philippine armed forces chief General Romeo Brawner Jnr said the drills represent “the essence of unity, collective responsibility and enduring partnership” between the Philippines and the US “and our partners”.

“It is not a partnership of convenience but rather a clear reflection of our shared history, unwavering commitment to democracy and respect for international law in our pursuit of peace and security in the Indo-Pacific region,” he said.

Although none of the speakers at the opening ceremony mentioned China, Beijing’s presence has loomed large in advance of this year’s exercises, given the numerous run-ins its naval forces have had with Philippine vessels in recent months, particularly around the highly contested Second Thomas Shoal in the South China Sea.

Brawner made special mention of the fact that, for the first time, “a number of troops from the special action force of the Philippine National Police and six vessels from the Philippine Coast Guard”, were part of the Balikatan exercises. Navies from Australia and France are also taking part this year.

Some drills will take place on and around the island of Palawan, as well as within waters off the Philippine’s central and northern coasts closest to Taiwan. A schedule of the exercises has not been released for security purposes.

As part of the Balikatan drills, Filipino soldiers will familiarise themselves with US military hardware and test the Philippines’ newly-acquired assets and equipment.

Military Sealift Command, the US Navy’s replenishment and transport arm, said it had delivered 554 pieces of equipment and shipping containers for the exercises to Subic Free Port, northwest of Manila, and would conduct a separate bilateral exercise with the Philippine military. It gave not further details about the equipment.

Two sophisticated missile systems, the Spyder and Typhon, are set to be demonstrated for the first time in the Philippines as part of the drills.

The Spyder – a mobile, ground-based, air defence system – is currently in use by the Philippine Air Force’s 960th Air and Missile Defence Group.

Will China hold back during the US-Philippine Balikatan military drills?

Army Colonel Michael Logico, the Philippine military’s spokesman for this year’s Balikatan exercises, told reporters on March 5 that the drills would “test the interoperability between our weapon systems and that of the United States.”

For its part, the US military has brought its Typhon systems, designed to launch Standard SM-6 and Tomahawk missiles, to be deployed at Laoag International Airport in Ilocos Norte, the home province of President Ferdinand Marcos Jnr.

The Philippines on Friday received the first of three batteries BrahMos cruise missile batteries from India. The medium-range supersonic cruise missile, produced by Indian-Russian multinational aerospace and defence corporation BrahMos Aerospace, can be launched from submarines, ships or fighter aircraft.

The 18.9 billion-peso (US$328.3 million) deal for the missiles was signed during the administration of Rodrigo Duterte, Marcos’ predecessor as Philippine president.

Renato de Castro, an international-relations professor at De La Salle University in Manila, described the purchase as part of the Philippine military’s shift from internal security to external defence.

The BrahMos missiles would serve as a “backup through coastal defence”, he explained in an interview on state broadcaster PTV, while the military was still developing its naval capabilities to guard the country’s territorial waters and exclusive economic zone and the air force was honing its aerial-denial capabilities.

De Castro added that since “we don’t have the resources, the technical know-how and training” to conduct external defence, the country’s armed forces were using the Balikatan exercises to gain these skills. There has been no announcement on whether BrahMos missiles will be used during the joint drills.

To assist the rapid switch from internal to external defence, the Philippine military is now drawing up a lengthy wish list, with two American senators from rival parties signalling their intention to help make these wishes come true.

Republican Bill Hagerty and Democrat Tim Kaine, both members of the Senate Foreign Relations Committee, jointly filed a bill to the US Congress on April 11 “to modernise the defence capabilities of the Philippines and for other purposes.”

The Philippines Enhanced Resilience Act of 2024 aims to authorise grant assistance of US$500 million per year for five years starting from 2025 under the US Foreign Military Financing programme, for a total of US$2.5 billion.

Under the proposed measure, all purchases would be made exclusively from American companies. The goal is to enhance the Philippines’ defence capabilities across a range of areas, including coastal and air defence, maritime security, intelligence, surveillance, reconnaissance, and cybersecurity.

It’s unclear at this point when, or if, the US Congress might pass the bill.

Surveys indicate that most Filipinos approve of closer military cooperation with the US, but a statement criticising the drills was issued on Monday by Bayan Muna (Country First), a member of the left-wing Makabayan political coalition.

“The warmongering thrust of the biggest Balikatan ever is mainly for the advancement of US geopolitical interest in the Asia-Pacific region,” said the statement attributed to party executive vice-president Carlos Zarate.

“[It is] a pretext for training the Philippine forces as US pawns in its proxy war with China.”

China floods: four killed in Guangdong sparking concerns over extreme weather defences

https://www.theguardian.com/world/2024/apr/23/china-floods-death-toll-guangdong-province-pearl-river-delta

Heavy rainstorms that swept across southern China over the weekend killed at least four people as floods swamped cities in the densely populated Pearl River Delta, state media reported.

A search was under way for 10 others missing after record-breaking rains sparked concerns about the region’s defences against bigger deluges induced by extreme weather events.

By Monday, about 110,000 people had been evacuated across the province, while 25,800 people were in emergency shelters, according to Xinhua.

In Guangzhou, the capital of Guangdong province, the government said the city had logged a cumulative rainfall of 60.9cm in April, the highest monthly rainfall since record-keeping began in 1959.

The official Xinhua news agency said three people died in Zhaoqing city while one rescuer died in Shaoguan city. It didn’t provide details about when or how they died. The two cities in Guangdong province are among the worst hit areas of sustained torrential rains that began late last week.

Footage on state broadcaster CCTV showed rescuers in rubber boats evacuating residents from inundated shopping streets and residential areas.

Floods also battered neighbouring Jiangxi province where local media reported 459 people had been evacuated, while rains and floods have affected 1,500 hectares of crops and caused financial losses of more than 41 million yuan ($5.7m).

Guangdong, once dubbed the “factory floor of the world”, is prone to summer floods. Its defences against disruptive floods were severely tested in June 2022 when the province was pounded by the heaviest downpours in six decades. Hundreds of thousands of people were evacuated.

Since Thursday, Guangdong has been battered by unusually heavy, sustained and widespread rainfall, with powerful storms ushering in an earlier-than-normal start to the province’s annual flooding season in May and June.

Over the weekend, waterways in the province overflowed, including in some villages where flood waters reached the second storey of houses after washing out paddy and potato fields.

In Qingyuan, a relatively small city of 4 million, rescuers tackled neck-high waters to extract residents including an elderly lady trapped in waist-deep water in an apartment building.

Others remained on the upper floors of their houses, waiting for the waters to recede as friends delivered food by boat.

Weather events in China have become more intense and unpredictable because of global warming, scientists say, with record-breaking rainfall and drought assailing the world’s second-largest economy, often at the same time.

In Qingyuan residents counted their losses, with one farmer telling Reuters that their rice fields had been “fully flooded”.

“I won’t be making any money this year, I will be making losses,” Huang Jingrong said, estimating his losses at about 100,000 yuan ($13,800).

“What can we do? We won’t get reimbursed for our losses.”

The Associated Press and Reuters contributed to this report

Canton Fair: overseas buyers pour in, leaving Chinese exporters to ask ‘why so many foreigners?’

https://www.scmp.com/economy/global-economy/article/3259893/canton-fair-overseas-buyers-pour-leaving-chinese-exporters-ask-why-so-many-foreigners?utm_source=rss_feed

South China Morning Post economy desk reporter He Huifeng has been reporting on the semi-annual China Import and Export Fair in Guangzhou since the early 2000s. She recounts her experiences from the ongoing 135th session of China’s largest trade exhibition, widely known as the Canton Fair.

I have witnessed waves of highs and lows in export orders at the Canton Fair over the years, but this year, what hit me was the surprisingly strong return of foreign importers.

Even the heavy downpours, which are very rare in the spring in the southern manufacturing hub of Guangzhou, did little to dampen their desire to attend.

Among the four halls in the giant exhibition centre, the one featuring new energy vehicles and smart mobility displays has been the most crowded, which I have not seen in many years.

The booths were full of buyers from various countries and territories, with almost every Chinese attendee wondering: why are there so many foreigners this year?

Some exporters said the surge may be due to the need to restock and even to front-load inventories to cope with risks of trade sanctions on Chinese products, which have become a target of attack during or even after a US presidential election.

More interestingly, some overseas attendees said that despite the reports in the West of the threats caused by China’s overcapacity in the new energy sector, they cannot resist the temptation to see how cheap and affordable the Chinese products are.

“To buy or not to buy. I finally had first-hand experience of Chinese electric vehicles – so many brands and models, and they are not expensive. Very impressive,” said a foreign importer.

Last year, when the Canton Fair fully resumed on-site participation as China reopened its borders after three years of restrictive zero-Covid controls, I was able to talk to exporters during their lunch break.

But this time, long and detailed talks are impossible as they are too busy.

“Previously, we had to wait for guests and we had to reach out to attendees proactively, but now they are waiting in queues for us,” said an exporter.

The biannual event, which has been held every year since 1957, is widely seen as a barometer for China’s exports, while it also serves as a mirror of its progress in moving up the ladder of the industrial chain.

Back in 2008, the fair provided 160,000 square metres (1.7 million sq ft) of indoor exhibition space, with labour-intensive industries and low-end industrial products, including construction materials, electronics, furniture and textiles the main themes.

US importers attend China’s Canton Fair in droves, despite trade curb threats

Nowadays, the exhibition area has expanded to 1.55 million square metres (16.7 million sq ft), featuring not only traditional manufacturing goods, but also increasingly advanced electronics, new energy vehicles and other green products.

Chinese exporters also said buyers from Russia, the Middle East and South America have increased, and that they are willing to settle more transactions in the yuan.

A short video clip also went viral after a female American buyer filmed a BYD-branded electric vehicle priced at US$9,000 (65,000 yuan). She was astonished at the incredibly low price of the car, which is banned in the United States.

Wang Yunlong, the public affairs director of Chinese electric vehicle maker Aion, said the fair offered a great opportunity for more foreign merchants to see Chinese new energy vehicles up close.

“The experience, coupled with price comparisons, is the most convincing,” said Wang.

“An electric SUV costing about 150,000 yuan (US$20,700) outperforms foreign brands costing over US$50,000.

“There have been many potential clients visiting our factories these days, from Southeast Asia, South America and Europe, one after another.”

On the other hand, manufacturers of traditional goods, such as home appliances, lamented that the number of European and American customers has continued to fall in recent years.

And that the purchasing power of new customers from emerging markets, like Russia, the Middle East and South America, still cannot make up for the loss of orders.

“They still cannot afford those high-end lighting products for the Western markets,” said an LED lighting trader who focuses on Western markets.

And despite the overall upbeat sentiment, it is still unclear what the final transaction value from the fair this year will be.

Organisers said around 198,000 overseas buyers attended the last session of the fair in November, up by 6.4 per cent from the pre-pandemic session in the autumn of 2019.

They signed export deals worth US$22.3 billion, representing a modest 2.8 per cent rise from the spring session in April and May last year, but it still fell short of US$7 billion from the pre-Covid year in 2019.

The heavy rains are set to continue to fall in Guangzhou for the next two weeks, but organisers and exports will hope it does not dampen the spirit of the overseas buyers who have brought a ray of sunshine to China’s hopes of an economic recovery this year.

Japan extends anti-China coastguard training push from South China Sea to Pacific islands

https://www.scmp.com/week-asia/politics/article/3259940/japan-extends-anti-china-coastguard-training-push-south-china-sea-pacific-islands?utm_source=rss_feed

Japan’s coastguard has extended an initiative designed to help other nations’ counter Chinese expansion in the South China Sea to two Pacific island countries: the Marshall Islands and Micronesia.

The Mobile Cooperation Team (MCT) initiative was first set up in 2017 as part of Tokyo’s efforts to train and equip the coastguards of Southeast Asian nations that felt threatened by China’s presence in the disputed waterway.

With Beijing actively looking to expand its sphere of influence further into the Pacific, Japan has now enlarged the project and two MCT units were dispatched on one-week missions to the Marshall Islands and Micronesia in January, the Yomiuri newspaper reported on Sunday.

The initial sessions involved exercises to locate and rescue small groups of people adrift at sea and lectures on international law for more than 60 local officials, the paper reported, with a senior official of the Micronesian maritime police expressing hope that further exchanges would be possible in the future.

“The primary reason that the Japan Coast Guard first set up these units was to compete with Chinese efforts to increase the presence of their coastguard units in the South China Sea,” said Masafumi Iida, a leading China analyst at the National Institute of Defence Studies in Tokyo.

“More recently, China has been actively expanding its areas of influence into the Pacific islands and the creation of an MCT specifically for this region is a reflection of that Chinese expansion,” he told This Week in Asia.

The Mobile Cooperation Teams have provided assistance on 105 missions to 20 countries since their creation seven years ago, advising local officials on how to conduct stop-and-search operations at sea, arrest techniques and methods to prevent oil spills from worsening. They have also offered advice on dealing with pirates and search-and-rescue operations.

A February mission to Indonesia included programmes on improving maritime law enforcement capabilities.

Japanese officials would provide similar support to the Pacific nations, Iida said, as well as capacity-building and lectures on international maritime law, while Japan’s assistance could also be expanded to include the provision of patrol vessels.

Beijing has been working hard in recent years to cultivate new diplomatic relationships with a number of key Pacific states, notably the Solomon Islands, Fiji and Tuvalu. Earlier this year, it was able to convince tiny Nauru to switch diplomatic recognition and cut ties with Taiwan.

Japan, the United States, Australia and New Zealand are all concerned that Beijing is “picking off” strategically important island groups across the Pacific, often with generous offers of financial aid, according to Stephen Nagy, a professor of international relations at Tokyo’s International Christian University.

“Japan has seen the Chinese coastguard operating in the South China Sea and treating those waters as its own domestic territory, conducting enforcement actions against the Philippines as if this is a domestic situation,” he said. “Japan does not want to escalate the situation by sending ‘grey hulls’ [warships] so the coastguard is being used instead.”

Japan and other regional governments have been “deeply concerned” about the security agreement that Beijing signed with the Solomon Islands in 2022, with that worry heightened by reports that China now intended to establish a port facility there, Nagy said, primarily because it would be easy for Chinese navy and coastguard units to later use the port.

“Nauru has just switched its allegiance to China and there is concern that other holdouts could similarly be convinced to turn towards Beijing,” he said.

Japanese Prime Minister Fumio Kishida held talks in Washington with President Joe Biden earlier this month, during which 70 bilateral agreements were reached across a wide range of issues. But, Nagy points out, there is a “clear trend for Japan to take up more of the burden in its own backyard specifically to free the US up to focus its resources on Taiwan”.

“The US can’t do it all alone,” he said, adding that Japan would also have consulted Australia, New Zealand and other regional governments on the expansion of its MCT programme, which could potentially turn into a multilateral effort in the future.

According to Nagy, one area Pacific nations are particularly keen to receive assistance on is in dealing with illegal, unreported and unregulated fishing within their territorial waters by fishing boats – often Chinese – that “go dark” by turning off their location transponders to avoid detection while they operate illegally.

“This is going to be a big area of cooperation with Japan because these Pacific states are concerned about the depletion of their fisheries and food security,” he said.

“There is a strongly held view in Tokyo that everything that can be done must be done to prevent the Pacific islands states from falling into the Chinese camp as this would allow the exploitation of their vast EEZs [exclusive economic zones] and, potentially, threaten the shipping routes across the Pacific.”

China KOL with inferiority complex owns 7 homes worth US$110 million, wears only branded clothes and jewellery

https://www.scmp.com/news/people-culture/china-personalities/article/3258609/china-kol-inferiority-complex-owns-7-homes-worth-us110-million-wears-only-branded-clothes-and?utm_source=rss_feed

An online influencer in China has once again stunned people on mainland social media with the level of his wealth.

In his latest interview with the mainland media outlet Phoenix News, Wang Hongquanxing revealed that he owns seven properties in the high-end Beijing residential compound, Star River.

The total worth of the properties is 800 million yuan (US$110 million).

Wang said he chose to live in a smaller property of around 700 sqm in the compound because the larger, 991 sqm one he owns lacks natural light.

Jewellery dealer Wang said he never goes out unless he is wearing an outfit and jewels worth at least 10 million yuan (US$1.4 million).

His small team of eight staff include four people dedicated to his protection.

The wealth-flaunting videos Wang posts have earned him the tag “China’s Kim Kardashian”.

Originally named Wang Hongquan, the 30-something influencer added “xing”, which means “star”, to the name of his online persona.

Wang rose to fame in a 2022 video of him lying on all fours asking for lucky money from his mother.

The casual style of the video, in contrast to the luxurious interior decorations and the sizeable jadeite stones they wore, attracted many to follow his Douyin account.

His account now has 4.4 million followers.

But Wang wants more. He was crystal clear about why he became a KOL: “I don’t care how much I can make. I just want to be in the spotlight.”

He admits to being vain and says he knows nothing but spending money, adding that his wealth makes up for an inferiority complex over his appearance.

Wang rarely speaks about his background. The sparse information he gave was he came from a family who built up their wealth in the coal mining business, and later in the jadeite jewellery business.

Wang is a neighbour and close friend of renowned Chinese actress Fan Bingbing. He also has a wide circle of showbusiness friends and acquaintances.

In March, his 1,000 square-metre boutique, Quranus, had a grand opening in the heart of Beijing’s luxury district.

An array of stars, such as Canadian actress Christy Chung and Bruneian singer and actor Wu Chun, showed up to celebrate his big day.

However, Wang said despite many celebrities trying to befriend him to buy jewellery cheaply, he treated them purely as customers, as many are hypocrites who “live a fake life”.

Wang’s style did not turn people off like other wealth-flaunting KOLs or fuerdai, meaning “second-generation rich”.

Instead, people said his honesty about his wealth and desires made him likeable.

“He is more real than most celebrities, true to his desire for money and fame, and acknowledging his inferiority complex despite owning so much more than ordinary people,” said one online observer on Douyin.

How the internet has transformed China in the past 30 years, and vice versa

https://www.scmp.com/tech/policy/article/3259923/how-internet-has-transformed-china-past-30-years-and-vice-versa?utm_source=rss_feed

April 20 is remembered in China for marking a milestone in the nation’s development: It was on this day in 1994 that the country officially connected to the internet through a 64 kilobit special line, thanks to the service of Sprint, a US telecoms company.

To commemorate the event’s 30th anniversary and celebrate China’s achievements since then, the state-backed internet society hosted a symposium over the weekend.

China has good reasons to pat itself on the back for embracing the web. The rise of the internet coincided with the country’s opening up and its strong desire to interact with the rest of the world.

During the 1980s and 1990s, one of the most read books in China was The Third Wave by American writer and futurist Alvin Toffler. The biggest takeaway for China was that it could not miss the third wave of transformation of human society, which involves the internet and information technology, after being left behind during the previous wave of industrialisation.

Three decades on, it is fair to say that China is one of the most successful countries in embracing the internet.

Once an economic and technological backwater, China now has the world’s largest population of internet users and leads the world in the adoption of some internet services such as e-commerce and cashless payments.

Behind the popularity of those services is a powerful and effective nationwide network that allows people to be connected anywhere via reliable and affordable systems.

China’s internet development has been a process of learning and adaptation, which shows the true entrepreneurship of the Chinese people. In the beginning, the country had to learn everything from scratch, whether it was hardware or software. Its start-ups had to look to their US peers when designing business models.

Sohu, one of China’s major internet portals, borrowed its page design from Yahoo. The interface of the Baidu search engine, which launched in 2000, resembled Google’s. The first popular service launched by Tencent Holdings, a chat tool introduced in 1999 called OICQ and later renamed QQ, was a thinly veiled clone of AOL’s ICQ.

But Chinese firms quickly proved that they were more than just quick learners. Once they started adapting the internet to the unique demands of Chinese users, their services saw explosive growth, resulting in the birth of tech giants.

For instance, China didn’t invent the QR code, but its application helped the country become a cashless society in a spectacular mobile payments revolution.

When Chinese internet firms unleash their services on the global stage, some of them have become formidable players, as in the case of Shein and Temu, which have risen on the back of the country’s manufacturing expertise. TikTok, the international version of ByteDance’s Douyin, has proven extremely capable in grabbing the attention of teenagers and older users.

In short, the internet has accelerated China’s economic rise and offered an arena for the country to shine.

Meanwhile, China has also changed how the internet is perceived and regulated. The country has developed a web of technological and legal barriers, known as the Great Firewall, to keep unwanted online content in check.

While Beijing’s efforts to tame the internet were initially ridiculed as “nailing Jell-O to the wall”, it has pushed ahead with its own model of internet governance.

Around the world, anonymity is regarded as a hallmark of the free internet, but it no longer exists under China’s internet regulation, with the state being able to identify almost every social media account set up in the country, and trace every piece of information and digital avatar to individuals in the real world.

Beijing is also trying to manage the flow of data on the internet across the border, like cargo imports and exports. Its track record of using the internet to foster economic growth while trying to minimise its disruptive effects has made the country confident in promoting its model to other nations.

China’s regulations sound like music to the ears of certain governments that are struggling to contain the impact of social media and generative artificial intelligence.

Still, even as China remains happy about its attempts at taming the internet and turning cyberspace into a walled garden, it should be aware of the potential costs, including the risk of being marginalised in future technological waves.

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Antony Blinken highlights China’s Uygurs as victims of ‘genocide’ at US human rights report launch

https://www.scmp.com/news/china/diplomacy/article/3259968/antony-blinken-highlights-chinas-uygurs-victims-genocide-us-human-rights-report-launch?utm_source=rss_feed

US Secretary of State Antony Blinken highlighted Uygurs in China’s Xinjiang region as victims of “genocide and crimes against humanity” while launching the State Department’s annual human rights report on Monday, days before he is expected to meet senior officials in Beijing.

Calling such atrocities and those occurring in Myanmar and Sudan “reminiscent of humanity’s darkest moments,” Blinken pledged to continue to raise them directly with the governments responsible.

“Countries that respect human rights are more likely to be peaceful, prosperous, stable,” America’s top diplomat said.

The State Department report, which assesses some 200 countries and territories based on standards enshrined in international human-rights agreements, contained an extensive catalogue of China’s alleged violations, as it has for several decades.

China, the report’s preface stated, “continues to carry out genocide, crimes against humanity, forced labour and other human-rights violations against predominantly Muslim Uygurs and members of other ethnic and religious minority groups”.

Blinken’s remarks come ahead of his trip to Beijing and Shanghai later this week, where he plans to raise the US’s concerns over China’s human rights record, its “unfair economic and trade practices” and the global consequences of the country’s “industrial overcapacity”.

The secretary will “raise human rights at the highest levels and in the clearest way” while in China, said Robert Gilchrist, a senior official at the State Department’s Bureau of Democracy, Human Rights and Labour, on Monday.

In meetings with senior Chinese officials, Blinken also plans to discuss a range of other issues, including the crisis in the Middle East, Russia’s war against Ukraine, Taiwan, and the South China Sea.

He further called out Afghanistan, Belarus, Cuba, Hamas, Iran, Israel, Nicaragua, Russia, Tajikistan, Uganda and Venezuela in his remarks at the report’s launch.

MSCI, BlackRock ‘funnelled’ billions to Chinese firms accused of abuses: panel

Blinken praised progress made in human rights in several countries, including Estonia, Jordan and Japan, and said, as he did last year, that the US “faces its own shortcomings”.

“The strength of democracies like ours is that we address those shortcomings, those imperfections openly, without sweeping them under the rug,” he said.

Monday’s report arrives a month after US President Joe Biden administration’s third “Summit for Democracy” – a gathering of officials from government, business and civil society to “advance democracy, fight corruption and counter authoritarianism”.

Beijing, uninvited, had condemned summit host South Korea’s invitation of Taiwan.

Beijing sees Taiwan as part of China to be reunited by force if necessary. Most countries, including the US, do not recognise Taiwan as an independent state, but Washington is opposed to any attempt to take the self-governed island by force and is committed to supplying it with weapons.

As in recent years, the report, which covers events from the previous calendar year, devoted some of its longest sections to China.

Beyond China’s treatment of Uygurs, it critiqued Beijing’s transnational repression of the Chinese diaspora, including students with pro-democracy views; the lack of an independent judiciary; the detention of citizens for “spreading fake news”; the “abusive application” of zero-Covid policy restrictions for journalists; and the harassment of domestic human-rights groups.

The report also noted Beijing’s continued “dismantling” of Hong Kong’s political freedoms and autonomy. In particular, it highlighted the authorities’ enforcement of the 2020 national security law, including the retroactive application of the law and the denial of bail to activists in national-security cases.

‘All ethnic groups matter’: Chinese textbook spells out integration policies

The Chinese embassy in Washington did not immediately respond to a request for comment.

Beijing has repeatedly denied Washington’s accusations of human-rights violations, particularly those concerning the Xinjiang Uygur autonomous region.

In recent years, China has issued its own report on US human-rights violations citing American racial discrimination, wealth polarisation and gun and police violence, among others.

“The United States, founded on colonialism, racist slavery and inequality in labour, possession and distribution, has further fallen into a quagmire of system failure,” the State Council Information Office wrote in March last year.

American politicians “wantonly use human rights as a weapon to attack other countries, creating confrontation, division and chaos in the international community”, it added.

China’s campaign to win investment wavers as overseas capital plays waiting game

https://www.scmp.com/economy/china-economy/article/3259918/chinas-campaign-win-investment-wavers-overseas-capital-plays-waiting-game?utm_source=rss_feed

The “new working models” of international enterprises in China and Beijing’s heavy focus on self-reliance have deterred a resurgence of foreign direct investment (FDI), business leaders said, as inflows fell more than a quarter from the previous year.

FDI movement into China from January to March was 301 billion yuan (US$41.6 billion), down 26 per cent from last year according to official numbers released last Friday. While Beijing hailed a reported gross domestic product growth of 5.3 per cent over the same period as an indication its economy is in stable recovery, notable figures in the field said firms are staying cautious for several reasons.

Ker Gibbs, former president of the American Chamber of Commerce in Shanghai, said American companies now operate in China based on a “new working model” – one where the localisation of their Chinese operations continues, but has became more pronounced after foreign staff members have left the country en masse as policies change and the bilateral relationship degenerates.

“Companies are separating their China operations so they function in more of a silo. Nobody is happy about this, but it’s the reality of the new working model,” said Gibbs, who is now an executive-in-residence at the University of San Francisco’s China Business Studies Initiative.

“It slows down investment. It reduces enthusiasm for investment. It’s a drag on business, but it’s not gonna shut anything down. It won’t cause them to withdraw from China. But it’s a drag on business.”

Gibbs added that the problem of communication has also become more prominent, as many executives still face challenges travelling to China due to visa problems and a lack of flights.

While the FDI change from the first quarter was a 41.7 per cent increase over the last quarter of 2023, the data for March showed slower growth compared to the first two months of the year.

New actual utilised foreign investment into China in March was 87 billion yuan, a deceleration from 113 billion yuan in January and 102 billion yuan in February. The March data was also a 38 per cent drop compared to the same month in 2023, according to the Ministry of Commerce.

The ministry, which has not published FDI figures in US dollar terms since last year, said the first quarter decline was due to a high baseline from the same period in 2023. That quarter saw a record inflow of investment after China first reopened its doors following three years of stringent Covid control policies.

The ministry added that 12,086 new foreign-invested firms were set up across the country from January to March, a 20.7 per cent increase compared with the same period last year.

Joerg Wuttke, president emeritus of the European Union Chamber of Commerce in China, said while the size of the Chinese economy remains a reason for many foreign investors to stay, their “appetite” for investing in China has been slow to come back.

“China has a real problem of having international participants in this economy. And the problem has to do with the fact that they are also still emphasising self-reliance in some business segments,” Wuttke said.

For example, he added, the automotive, machinery and chemical industries are areas where China wants foreign investment, while tech-related companies have a hard time in the Chinese market.

Zheng Yongnian, a prominent political economist and a long-time adviser to the Chinese government, had similar opinions, saying the next step for China to boost investment would be identifying new industries in which foreign companies could take part.

“Traditional areas for economic investments have reached saturation for both private and foreign investors. We should think about how to open up new industries for their investments as we attempt to find new productive forces for high-quality economic development,” Zheng said, referring to a phrase coined by Beijing to identify the economic sectors with the highest potential for growth and innovation.

Zheng, president of the Institute for International Affairs, Qianhai – a think tank based in Shenzhen – added that new growth drivers such as the digital and green economies should offer more opportunities for the participation of private and foreign investors.

Beijing has been pushing for the development of these “new productive forces” to boost economic activity as well as overseas confidence, as utilised FDI flows – which had continued to grow during the pandemic years – fell by 8 per cent in 2023, a year when direct investment liabilities saw their smallest increase in three decades.

China’s slowing economy and geopolitical tensions have been frequently cited as reasons foreign investors have remained wary of a full-scale return.

A survey from the American Chamber of Commerce published in February this year showed nearly half of all respondents had no plans to expand their investment in the country, even as some grew optimistic about stabilising US-China ties.

Environmental report on planned Hong Kong tech hub near mainland China border gets conditional green light

https://www.scmp.com/news/hong-kong/health-environment/article/3259955/environmental-report-planned-hong-kong-tech-hub-near-mainland-china-border-gets-conditional-green?utm_source=rss_feed

Government advisers have given a conditional green light to an environmental impact assessment for a planned Hong Kong technology hub near the border with mainland China despite objections from conservation groups.

The government-appointed Advisory Council on the Environment on Monday unanimously endorsed the report on the San Tin Technopole with eight conditions, including requiring authorities to outline mitigation measures for filling fish ponds that give way for development.

Approval was given despite 10 green groups urging the council to reject the assessment on the grounds that the study contained inaccurate information and might be subject to legal challenges.

Reject impact assessment for Hong Kong technopole project, green groups say

But council chairman Professor John Chai Yat-chiu said the advisers believed the project could strike a balance between conservation and development.

“Although the development will affect existing fish ponds and wetlands, mitigation measures can bring numerous environmental benefits,” he said.

One condition requires the Civil Engineering and Development Department to submit a “habitat creation and management plan” – outlining compensation measures, future management strategy and monitoring parameters – no less than nine months before it starts to fill 90 hectares of fish ponds for the project.

Terence Tsang Sai-wing, an assistant director of the Environmental Protection Department, said the plan would be subject to the approval of the council and director of environmental protection.

How environmental concerns may interrupt Hong Kong’s planned border tech hub

He said the civil engineering department was also required to set up an environment committee, composed of officials, green groups and academics, to advise on the plan. And the department had to report regularly to the committee on its progress implementing the plan.

“That is a very stringent mechanism,” Tsang said, adding that under the plan, the effectiveness of the mitigation measures would be monitored and authorities would need to take follow-up measures if they failed to reach the parameters.

The council also required the government to file a detailed design of wildlife corridors in the area, an implementation plan for enhancing wetlands in nearby Mai Po and an interim wetland enhancement proposal.

It also made seven recommendations to the government, including exploring the feasibility of adopting green building design in San Tin.

The council’s Environmental Impact Assessment Subcommittee endorsed similar conditions and suggestions at a closed-door meeting last month.

Despite the council’s conditional approval, the final decision on whether to pass the environmental impact assessment rests with the director of environmental protection.

“If there is a judicial review, we will handle it according to our established procedures,” Tsang said.

A spokesman for the Environmental Protection Department said the director would review the assessment and consider comments from the public and council before making a decision.

The project will take up more than 600 hectares of land near the border, with half of the site earmarked for developing the innovation and technology industry. The rest will become a town centre with 54,000 flats and the first residents to move there in 2031.

Half of the 90 hectares of fish ponds to be filled for the development are still active. A proposed 338-hectare wetland park at Sam Po Shue will compensate for the ecological loss.

Most council members on Monday voiced support for the development as the Technopole could advance the city’s innovation industry, with a few raising concerns on whether the mitigation measures would be implemented effectively.

Tony Cheung Ka-leung, project manager in the civil engineering department’s North Development Office, said the government would only start filling the ponds in 2026-27, when it had started construction for the Sam Po Shue wetland park.

The park is expected to have the first 150-hectare phase ready by 2031 and the rest by 2039.

Cheung said authorities would begin initial works that did not involve pond filling at San Tin in 2025 once the legislature granted funds by the end of this year.

He also said the government would commence other enhancement work before filling the ponds at San Tin, such as restoring grassland into fish ponds in nearby areas.

Environmental impact report on Hong Kong border project misidentified birds

The civil engineering department also dismissed the green groups’ criticism of the environmental impact assessment, stressing the contents were valid and sufficient.

Three environmental groups expressed disappointment with the council’s conditional approval and urged it to dismiss the environmental impact assessment.

“If the report was approved, we fear that it would bring irreversible damage,” their statement said.

Ten green groups said the environmental impact assessment was flawed, pointing to 35 violations of statutory requirements and guidelines, as well as 27 serious technical assessment and data errors.

Germany arrests three on suspicion of spying for China, as Britain charges two

https://www.scmp.com/news/china/diplomacy/article/3259959/germany-arrests-three-suspicion-spying-china-britain-charges-two?utm_source=rss_feed

In Europe, two Chinese spying scandals were developing on Monday, adding to deep concerns over Beijing’s alleged espionage activities on the continent.

Early in the day, federal prosecutors announced that three German nationals had been arrested on “strong suspicion” of spying for Chinese intelligence services.

Hours later, British authorities charged two men under the Official Secrets Act over allegedly spying for China. This case concerns Christopher Cash, a parliamentary researcher whose arrest last March made headlines.

The double whammy comes amid rising anxiety in some European capitals over the threat of Chinese surveillance practices and as authorities mull how to counter foreign interference in democratic institutions, industry and academia.

“We are aware of the significant threat posed by Chinese espionage in business, industry and science,” said Nancy Faeser, the German interior minister, in a statement.

In Germany, the suspects are accused of gathering sensitive industrial data with military uses, with a view to “expanding China’s maritime combat power”, the prosecutor said in a statement.

The arrest warrant alleges that one of the people, designated as Thomas R., was acting as an agent of Beijing’s state security ministry – its secret police service – and charged with obtaining information on “innovative technologies that could be used militarily”.

The news comes on the heels of German Chancellor Olaf Scholz’s state visit to China last week during which he pushed Chinese President Xi Jinping on economic concerns, even while pledging to bolster trade relations.

It also emerges amid a European debate on economic security, partly predicated on the desire to prevent hi-tech goods from falling into the hands of China’s military.

Germany’s China shock: as Scholz leaves Beijing, alarm raised about economic ties

Thomas R. was said to have enlisted a couple in the German city of Düsseldorf to gather technological intelligence. Through “Herwig F. and Ina F.”, the first suspect was able to collaborate with the German science and research sectors.

“The accused are strongly suspected of having worked for a Chinese secret service since a point in time that cannot be precisely determined before June 2022,” the prosecutor’s statement read.

They stand accused of forging a cooperation agreement with a German university for the purpose of transferring sensitive scientific information.

This included preparing a study for a “Chinese contractual partner on state-of-the-art machine parts that are also important for the operation of powerful ship engines, for example, in combat ships”, the statement added.

“Behind the Chinese contractual partner was the MSS employee from whom Thomas R. received his orders,” it continued, referring to the Beijing ministry. “The project was financed by Chinese state authorities.

“At the time of their arrest, the accused were in further negotiations about research projects that could be useful for expanding China’s maritime combat power.”

They are also alleged to have bought a “special laser from Germany” on behalf of Beijing’s state security ministry, and exporting it to China without seeking approval under the EU’s dual-use laws governing trade of the instrument.

The three were scheduled to appear before Germany’s Federal Court of Justice on Monday and Tuesday. They were also to be issued arrest warrants and adjudicated on the terms of their pre-trial detention.

“The three arrests for alleged espionage for a Chinese intelligence service are a great success for our counter-espionage efforts,” said Faeser, the German minister.

‘Disaster, regrettable’: why some are criticising German leader’s China trip

In Britain, it was announced on Monday that ex-researcher Cash would appear in court on Friday alongside a second man, Christopher Berry.

Cash had been an aide to Alicia Kearns, head of the British parliament’s foreign affairs committee, and previously worked for the China Research Group, an influential think tank launched by Tom Tugendhat, now the security minister.

According to a statement from the Crown Prosecution Service, the men are accused of working between January 2022 and February 2023 to “obtain, collect, record, publish or communicate … articles, notes, documents or information which were calculated to be, might be or were intended to be, directly or indirectly, useful to an enemy”.

The German and British cases could heighten suspicions of Chinese espionage activity in Europe.

Last month, for the first time in three years, the British government slapped sanctions on Chinese state-affiliated entities. The decision came in response to alleged “malicious cyber activity” directed at members of parliament.

British intelligence services accused China’s state-affiliated APT31 of “conducting reconnaissance activity” against a group of lawmakers who were “prominent in calling out the malign activity of China” in 2021, the government said on Monday.

Chile’s tariffs on Chinese steel products boost local steelmaker CAP’s stock

https://www.scmp.com/news/world/americas/article/3259962/chiles-tariffs-chinese-steel-products-boost-local-steelmaker-caps-stock?utm_source=rss_feed

The Chilean government’s decision to impose anti-dumping tariffs on two steel products from China boosted shares of the local steelmaker CAP on Monday, which decided to suspend an announced closure of a plant.

Shares of the local steel company rose up to 3.1 per cent on Monday morning on the Santiago Stock Exchange.

Chile’s finance ministry published a decree over the weekend that imposed a “provisional antidumping duty” of 24.9 per cent on steel bars to manufacture conventional grinding balls with a diameter of less than four inches and 33.5 per cent on steel balls of the same measurements coming from China.

In March, CAP agreed to suspend operations at the Compañía Siderúrgica Huachipato (CSH) in southern Chile for about three months, after it considered a move against Chinese imports by the local regulator as insufficient.

Then on Sunday, a letter to the securities regulator from the CAP board said the company “made the decision to reverse the indefinite suspension process”.

EU strikes deal with Chile in bid to beat China to vast lithium reserves

The measure was taken after a commission received appeals from the company and others interested in modifying recommendations for provisional measures on imports of steel bars and balls from China.

The statement by CAP said the decision “will imply the continuity of CSH’s steel operations while surcharges remain in force that allow CSH to operate in a competitive environment”, adding that will allow for continued employment for workers, suppliers and contractors.

The company said it was analysing the “irreversible costs” of the suspension process.

Tariffs against Chinese products may not exceed six months, counting from the end of March, according to the decrees.

New force for China’s PLA eyes modern warfare information support

https://www.scmp.com/news/china/military/article/3259938/new-force-chinas-pla-eyes-modern-warfare-information-support?utm_source=rss_feed

The Chinese military has created a new information support unit that analysts say will help boost its gathering and sharing of information to support other units.

The Information Support Force force, which was inaugurated in a ceremony hosted by President Xi Jinping on Friday, has taken over some of the functions of the Strategic Support Force (SSF).

That force, which was established in 2015 to expand the People’s Liberation Army’s cyber, space, electronic and psychological warfare capabilities, was disbanded at the same event.

Two of the SSF’s units– the military aerospace force and cyberspace force – will remain as independent forces, reporting directly to the Central Military Commission under a new command structure.

The aerospace force will be responsible for “strengthening the capacity to safely enter, exit and openly use space, enhancing crisis management and the efficacy of comprehensive governance in space”, according to Wu Qian, a spokesman for the defence ministry.

The cyberspace force will be tasked with enhancing national cyber defence, detecting and countering network intrusions and maintaining national cyber sovereignty and information security, he added.

East Asia joins global military spending surge over China concerns: report

The new Information Support Force will be led by Bi Yi, the former deputy commander of the SSF.

The new force will play a “crucial” role and is “a key pillar in coordinating the construction and application of the network information system”, Xi said during Friday’s ceremony.

He ordered the force to “effectively support combat operations … integrate information resources, strengthen information protection,” and “integrate deeply into the military’s joint operation system and carry out information support in a precise and effective manner”.

He added the new force should strengthen scientific innovation and build a “network information system” that meets the requirements of modern warfare and improves joint operations capabilities.

Last month Xi ordered the PLA to be well-prepared for information-focused warfare.

The new force will “focus on obtaining information and distributing [it] across platforms and forces, and ensuring the other side won’t be able to obtain our information,” Fu Qianshao, a former equipment expert with the PLA, said.

“In the past, different forces had independent data chains and it’s rather hard to integrate them.”

He added that the restructuring would better equip the information division to improve joint-forces operations.

The PLA has a set target of 2027 – the year of its centenary – to achieve its modernisation goals, paving the way for it to become a “world class” military power by 2049.

Ni Lexiong, a professor at the Shanghai University of Political Science and Law, said the new information support force will strengthen the PLA’s situational awareness, while weakening those of its enemies.

The restructuring is essential because of the “decisive” role information plays in modern warfare, but those functions overlapped among different units in the SSF, he added.

US joint drill with Japan, South Korea likely to unnerve China: experts

“When a certain military technology is very important to the outcome of a war, the troops in charge of this military technology will be separated from the original military branch and become a new branch of the military,” Ni said.

“Now information, intelligence, and electronic warfare have become decisive, so this is why the information support force became a separate force,” Ni explained.

The new force will work closely with the space and cyber forces, he also added.

The new force is probably the result of China enhancing “the division of labour” between the PLA’s branches, said James Char, a research fellow with the S Rajaratnam School of International Studies at the Nanyang Technological University in Singapore.

He said the SSF’s previous functions and the new force’s specialised role, powered by the increasing use of AI, means the PLA will be able to conduct information operations more effectively, Char said said

“The overhaul better reflects the importance the PLA has placed on speeding up the development of intelligentised ... warfare by delegating the task of developing new types of combat forces to a single, standalone entity, and according it pride of place in the military hierarchy by reconstituting it as a new branch,” Char said.

China doping case leaves serious questions just months before Olympics

https://www.washingtonpost.com/sports/olympics/2024/04/22/wada-china-swimmers-positive-tests/2024-04-22T16:36:53.873Z

Three months before this summer’s Paris Olympics, a simmering distrust between the World Anti-Doping Agency and its U.S. counterpart has exploded into allegations of selective policing and a volley of scorching statements, raising uncomfortable questions about how strongly doping is being controlled at the Games.

Following weekend reports that 23 Chinese swimmers tested positive for a banned substance before the Tokyo Olympics in 2021 yet escaped punishment, United States Anti-Doping Agency President Travis Tygart went on the offensive, questioning the commitment and motivations of global anti-doping leaders.

“All those with dirty hands in burying positive tests and suppressing the voices of courageous whistleblowers must be held accountable to the fullest extent of the rules and the law,” Tygart said in a statement, prompting a similarly vehement response from WADA.

“Mr. Tygart’s allegations are politically motivated and delivered with the intention of undermining WADA’s work to protect clean sport around the world,” the agency wrote, adding that it would send Tygart’s statement to its legal counsel.

None of the rage fully clarified the revelations surfaced in reports from the New York Times and the German broadcaster ARD that the 23 swimmers tested positive for the banned substance trimetazidine at the end of 2020 yet the results were never so much as identified publicly. Thirteen of those swimmers competed in the Olympics, according to the reports, and won several medals, including three golds.

In a 100-minute video news conference Monday, WADA officials acknowledged the tests and said they accepted explanations from China’s anti-doping agency, CHINADA, that the positive tests resulted from accidental contamination before an end-of-year competition. Part of the evidence WADA used to examine the case came from a report by Chinese investigators who found traces of trimetazidine in the exhaust and sink drains of the kitchen at a hotel where the swimmers had been staying.

WADA officials said that because pandemic restrictions prevented them from entering China, they had to rely on the internal reports, while consulting outside advice on the probability of such a contamination. Further, because the swimmers had already been cleared by China, WADA had to weigh the chances of successfully appealing to the Court of Arbitration for Sport to implement punishment. Because the athletes had been cleared, WADA declined to disclose the allegations.

“For me, I operate on evidence, and that’s what the CAS would have to operate on as well in assessing whether or not the explanation should be accepted,” said WADA general counsel Ross Wenzel, who did most of the talking during the news conference. “Certainly [CAS] would not draw any sort of adverse inference or assume skulduggery simply because we were dealing with Chinese authorities.”

Those explanations have seemed hollow to USADA and U.S. Olympic and Paralympic officials who have been worn down by the two-year saga involving Russian figure skater Kamila Valieva, who tested positive for the same substance (also known as TMZ) before the 2022 Beijing Olympics and whose four-year suspension remains tied up in CAS appeals.

Global Athlete, an athlete advocacy group run by former WADA executive Rob Koehler, issued a statement attacking WADA for not disclosing the positive tests and for failing to provide more transparency and to release all of its evidence.

“The alleged failures exposed over the past few days undermine the entire global system of fair and clean sport,” the Global Athlete statement said. “When leadership fails to comply with and enforce the rules, athletes are defrauded, their livelihood are put at risk and they lose the ability to succeed through talent, hard work and perseverance alone. If the allegations are true, WADA’s top leadership has harmed current and future athletes, billions of fans and the sporting community at large by diminishing the trustworthiness and value of international sport.”

The fact that the Chinese swimmers tested positive for trimetazidine further raised suspicion. One of China’s most decorated swimmers, three-time gold medalist Sun Yang, tested positive for the drug in 2014 and was banned for three months. In 2020, Sun was banned for eight years after he refused to cooperate with blood-sample collectors in violation of rules established by FINA, swimming’s governing body.

Trimetazidine, a heart medication designed for elderly people, has been used by athletes to improve blood flow and add stamina. Because it clears the system quickly, it can be hard to detect in tests.

Former WADA chief investigator Jack Robertson found the contamination explanation implausible. While cautioning that he no longer works for the agency and is looking at the case as an outsider, Roberston said he also questioned China’s explanation.

“How can a heart medicine, in pill form, possibly accidentally find its way into hotel food?” Robertson wrote in a text message. “And at quantities to cause 20-plus athletes to test positive? The likelihood just doesn’t compute. Did these athletes all eat the same dish? Not likely. Did TMZ contaminate multiple food dishes? Not likely. And China has a history of TMZ doping. Are we to accept the investigative result of the Chinese authorities and government?”

On Monday’s video news conference, WADA President Witold Banka said the agency had no evidence of wrongdoing and no credible way to disprove China’s conclusion that the drug had been ingested inadvertently.

“If we had to do it over again, we would do exactly the same thing,” he also said.

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