Mistral点评

• China’s giant solar industry is in turmoil | Business
• US lawmakers meet Tibet’s Dalai Lama, say won’t let China influence choice of successor
• [Sport] China changed village names 'to erase Uyghur culture'
• [Sport] China is the true power in Putin and Kim’s budding friendship
• South China Sea: photos show Chinese coastguard encircled, boarded Philippine boat
• [Sport] Filipino soldiers fought off Chinese coast guard 'with bare hands'
• Why did a Chinese nuclear-powered submarine suddenly surface in the Taiwan Strait?
• In ‘2+2’ talks, China and South Korea agree to push for more ‘political trust’
• China needs consumption surge for full-blown economic recovery, researcher says
• Stanford PhD physicist gets his dream job as a rural clerk in central China
• China cracks down on seeds of cyberbullying after suicides linked to online abuse
• China calls EU tariff hikes ‘protectionism’, urges talks to resolve EV dispute
• Philippines accuses China of ‘piracy’ after ship boarded, sailor injured
• China cultivated high-rolling crime families before turning on them
• US and allies clash with China and Russia over North Korea’s launches and threats to use nukes
• Why China takes young Tibetans from their families | China
• Can the Philippines challenge China’s dominance in the South China Sea? | Podcasts
• China’s ramming of Philippine ship stops short of invoking US defence treaty
• Malaysia’s Melaka turns to actress Fan Bingbing to reel in 1 million Chinese tourists
• China’s central bank vows supportive monetary policy but dismisses dramatic easing measures
• Quirky world news: cat pain app, China robbers’ booze rethink, Japan ‘wage slave’ voyeurs
• Tech war: US seeks help of allies Japan and Netherlands to curb China’s AI chip progress
• China says US tip led to suspect, a ‘prime example’ of cooperation amid fentanyl crisis
• China KOL who claims to be champion of working classes in videos exposed as ‘heartless boss’ in real life
• Malaysia banks on China’s love of mala hotpot to spice up palm oil exports
• China’s Li Qiang opens Malaysia visit ‘ready’ to build closer economic, development ties
• Philippines says navy personnel injured in confrontation with China coast guard
• South China Sea: will Beijing make Manila ‘pay a price’ for its latest territorial claim?
• IMF unveils plans for China-based regional centre in Shanghai
• China’s new Shenzhen-Zhongshan mega link carries high hopes for Greater Bay Area economy
• Taiwan firms keen to explore mainland Chinese opportunities despite political tensions, say industry representatives
• China has renamed hundreds of Uyghur villages and towns, say human rights groups
• China’s trade-in for homes scheme misses mark as middle class prefers to save, not spend

China’s giant solar industry is in turmoil | Business

https://www.economist.com/business/2024/06/17/chinas-giant-solar-industry-is-in-turmoil

In a factory in a smoggy corner of China’s inland Shaanxi province, the country’s world-leading solar industry is on display. Robots scoot around carrying square slices of polysilicon, a crystalline substance usually made from quartz. The slices, each 180mm across and a hair’s breadth thick, are called wafers. They are bathed in chemicals, shot with lasers and etched with silver. All that turns them into solar cells, which convert sunlight into electricity. Several dozen of these cells are then bundled together into a solar module. The factory, owned by LONGi Green Energy Technology, can churn out about 16m cells a day.

US lawmakers meet Tibet’s Dalai Lama, say won’t let China influence choice of successor

https://www.scmp.com/news/world/united-states-canada/article/3267298/us-lawmakers-meet-tibets-dalai-lama-say-wont-let-china-influence-choice-successor?utm_source=rss_feed

A group of US lawmakers who met the Dalai Lama in India on Wednesday said they would not allow China to influence the choice of his successor, comments expected to anger Beijing, which calls the exiled Tibetan spiritual leader a separatist.

The remarks come as Washington and Beijing seek to steady rocky ties while India pushes China to secure lasting peace on their disputed Himalayan frontier, four years after a military clash strained ties.

The lawmakers also signalled that Washington would pressure Beijing to hold talks with Tibetan leaders, stalled since 2010, to resolve the Tibet issue, with a bill they said US President Joe Biden would sign soon.

Although Washington recognises Tibet as a part of China, the bill appears to question that position and any change would be a major shock to Beijing, analysts said.

The bipartisan group of seven, led by Michael McCaul, a Republican congressman from Texas, who also chairs the House foreign affairs committee, met the Nobel peace laureate at his monastery in the northern Indian town of Dharamsala.

“It is still my hope that one day the Dalai Lama and his people will return to Tibet in peace,” McCaul told a public reception after the meeting.

Beijing has even attempted to insert itself into choosing the successor of the Dalai Lama, he said, but added: “We will not let that happen.”

The Dalai Lama fled to India in 1959 after a failed uprising against Chinese rule in Tibet. The 88-year-old, who has battled health problems for years, is set to fly to the United States this week for medical treatment.

The question of the Dalai Lama’s successor has been a thorny issue, which analysts say highlights the power and influence of the role, fuelling Beijing’s tussle to control it.

Tibetan tradition holds that the Dalai Lama is reincarnated after his death, and the current leader has said his successor may be found in India.

Beijing has said the tradition must continue, but its officially atheist Communist leaders have the right to approve the successor, as a legacy inherited from China’s emperors.

The US group, which includes Democratic former House speaker Nancy Pelosi, arrived on Tuesday for a two-day visit.

Pelosi said Congress approval of the legislation, titled “Promoting a Resolution to the Tibet-China Dispute Act”, or the Resolve Tibet Act, sent a message to China that Washington was clear in its thinking on the issue of Tibet.

“This bill says to the Chinese government: things have changed now, get ready for that,” she said to cheers from hundreds of Tibetans at Wednesday’s event.

Photographs on the Dalai Lama’s website showed him holding a framed copy of the bill as the lawmakers stood alongside.

Beijing, which calls the Dalai Lama a dangerous “splittist” or separatist, has said it was seriously concerned about the bill and the lawmakers’ visit, urging them not to contact what it calls the “Dalai clique” and Biden not to sign the bill.

The Indian foreign ministry offered no immediate comment on the lawmakers’ visit.

Ties between the Asian rivals have been strained over their long mountainous border since army clashes in 2020 killed 20 Indian and four Chinese troops.

At the same time, concerns about China’s growing might, among others, have nudged New Delhi and Washington closer in the last two decades.

While Chinese officials chafe at any interactions of the Dalai Lama with officials of other countries, Biden has not met the Tibetan leader since taking office in 2021 and it is not clear if his treatment plans will allow time for engagements.

“Presidential assent for the bill would be far more concerning for China than whether Biden or any other leader meets the Dalai Lama,” said Tibet specialist Robert Barnett of London’s School of Oriental and African Studies (SOAS).

Congressional approval of the bill was a “significant breakthrough”, Penpa Tsering, the political leader of the exiled Tibetan government, said in an interview.

He said he believed it would put pressure on Beijing to negotiate and that it could serve as a precedent for other nations to adopt similar policies to Washington.

“This will give us a tool to work with other governments,” he said in his office in Dharamsala.

But the Dalai Lama had always sought “autonomy or a middle way, not independence” for Tibet, he added.

[Sport] China changed village names 'to erase Uyghur culture'

https://www.bbc.com/news/articles/cxrrkl6ve39o

Reuters

[Sport] China is the true power in Putin and Kim’s budding friendship

https://www.bbc.com/news/articles/c1vv196pe3eo

Reuters

Getty Images

South China Sea: photos show Chinese coastguard encircled, boarded Philippine boat

https://www.scmp.com/news/china/diplomacy/article/3267279/south-china-sea-photos-show-chinese-coastguard-encircled-boarded-philippine-boat?utm_source=rss_feed

Four Chinese vessels surrounded a Philippine navy boat as coastguard crew boarded during a tense stand-off in the disputed South China Sea on Monday, photos released by Chinese state media show.

The rigid-hulled inflatable boat was on a supply mission to a grounded Philippine warship on the Second Thomas Shoal, which is part of the Spratly Islands claimed by both Beijing and Manila.

It was the first “boarding inspection” carried out since China introduced new law enforcement procedures for its coastguard on Saturday. The amended guideline allows the coastguard to inspect cargoes during ship checks in “Chinese territory”.

Photos released by Chinese state broadcaster CCTV on Wednesday showed the Philippine supply boat surrounded by Chinese vessels, including a small coastguard ship, with several crew boarding the boat.

Manila has a handful of troops stationed on the World War II-era navy ship it deliberately grounded in 1999 to stake its claim to the Second Thomas Shoal, called Renai Jiao by China and Ayungin Shoal in the Philippines.

Beijing says supply missions to the outpost for food and basic living items are allowed, but it draws the line at using “this as an excuse for delivering construction materials in an attempt to permanently occupy Renai Jiao”.

The Philippine military accused the Chinese side of “intentional high-speed ramming” in the incident early on Monday. Chinese coastguard forces towed and then abandoned two of Manila’s rubber boats while also confiscating firearms from them, media reports said.

Eight Filipino sailors were injured in the face-off, including one who lost a thumb, according to Associated Press.

The Chinese coastguard earlier said that measures were taken against Philippine vessels, including warnings and interceptions, boarding inspections and forced evictions, as they had “illegally entered” the waters and “dangerously approached” a Chinese ship. The responsibility for the “slight collision” lay “entirely with the Philippine side” it said.

Beijing and Manila also traded blame over the skirmish, the latest in a string of confrontations over the past year in the busy, resource-rich waterway.

The Philippine foreign ministry called the Chinese actions “illegal and reckless”. “[Manila] has been exerting efforts to rebuild a conducive environment for dialogue and consultation with China on the South China Sea,” the ministry said on Wednesday. “This cannot be achieved if China’s words do not match their actions on the waters.”

Beijing rejected the charge, saying no direct measures were taken against Philippine personnel.

“Law enforcement measures taken by the Chinese coastguard on the spot were professional and restrained, aimed at stopping the illegal replenishment by Philippine vessels, and no direct measures were taken against Philippine personnel,” Chinese foreign ministry spokesman Li Jian said.

Blaming the incident on the Philippines, Lin said Manila had been trying to send construction materials and even weapons and ammunition to the troops stationed on the shoal as part of plans to occupy the disputed reef in the long term.

Confrontations in the South China Sea over the past year have included alleged ramming, and the use of water cannons and sometimes military-grade lasers against Philippine ships. The frequent clashes have heightened fears of a hot conflict in the strategic waterway, especially as the Philippines leans closer to its treaty ally, the United States.

Washington on Monday said it stood with its long-time defence ally, and condemned Beijing’s “escalatory and irresponsible actions” in the South China Sea.

The US also reiterated that armed attacks on Philippine armed forces, public vessels, aircraft, and coastguard would invoke their mutual defence treaty.

[Sport] Filipino soldiers fought off Chinese coast guard 'with bare hands'

https://www.bbc.com/news/articles/cgee719kqpdo

Getty

Getty

Why did a Chinese nuclear-powered submarine suddenly surface in the Taiwan Strait?

https://www.scmp.com/news/china/politics/article/3267228/why-did-chinese-nuclear-powered-submarine-suddenly-surface-taiwan-strait?utm_source=rss_feed

Taiwan said it “closely monitored” the passage of a PLA Navy nuclear-powered submarine in the sensitive Taiwan Strait after fishermen spotted it surfacing abruptly early on Tuesday.

The submarine was seen at about 5am just west of the median line that separates the island and the mainland, about 46km (25 nautical miles) from Taiwan-controlled Quemoy Island, also known as Kinmen, according to news reports. The sighting was about 200km (120 miles) from Taiwan’s west coast.

Soon after, another PLA warship was seen escorting the submarine towards the mainland. The submarine did not submerge again, the reports quoted fishermen as saying.

“The military had a comprehensive understanding of the situation through relevant intelligence and reconnaissance methods,” Taiwanese Defence Minister Wellington Koo said, without giving further details or speculating on the crew’s intentions.

Taiwanese military experts suspected the submarine was a Type 094, based on photos taken by the fishing crews. They said the submarine could have surfaced for routine maintenance, a technical malfunction, changes in underwater topography, or a deliberate show of force.

“Nuclear submarines like the Type 094 have specialised missions and typically avoid surfacing due to their sensitivity and the need for stealth,” said Ying-yu Lin, a professor of international relations and strategic studies at Tamkang University in New Taipei.

However, he did not rule out the possibility of “navigational problems or technical issues causing the submarine to surface”.

Zivon Wang, a military analyst at the Chinese Council of Advanced Policy Studies think tank in Taipei, said the submarine’s position indicated it was sailing within the 12 nautical mile limit of the mainland’s territorial waters.

“It was likely a routine transit for a mission switch or maintenance at the shipyard in the Bohai Sea, given its northward trajectory from its base on the southern coast of Hainan in the South China Sea,” Wang said.

He said the fact that only one PLA warship escorted the submarine reduced the likelihood of a technical malfunction. “Typically, in the case of a malfunction, additional vessels would be dispatched to provide assistance,” he said.

“The submarine’s navigation within mainland waters suggests a desire to avoid unintended conflict, especially if such a powerful vessel were to appear within Taiwanese waters.”

The rare surfacing of a nuclear-powered submarine, which can operate underwater for long periods, raised concerns in Taiwan, and prompted questions about whether it was another display of Beijing’s sabre-rattling against the self-ruled island or simply a routine transit.

Taiwanese lawmakers expressed concerns about whether it was an attempt by the People’s Liberation Army to increase military pressure on Taiwan, particularly after the war games were staged in May that simulated a blockade of the island.

The PLA drills were held just three days after William Lai Ching-te assumed office as the island’s new leader and declared that Taiwan and the mainland “are not subordinate to each other”. Beijing sharply criticised Lai, the head of the independence-leaning Democratic Progressive Party, labelling him an “obstinate separatist” whose leadership could lead to war.

Beijing sees Taiwan as part of its territory to be reunited by force if necessary. Like most countries, the United States does not recognise Taiwan as independent, but is opposed to any unilateral changes to the status quo and remains committed to supplying arms to Taipei.

Su Tzu-yun, a senior analyst at the Institute for National Defence and Security Research, a government think tank in Taipei, said the appearance of the submarine could be interpreted as a show of force not only directed at Taiwan but also aimed at the United States and its Indo-Pacific allies. The allies, which include Japan, the Philippines and Australia, have joined forces to counter Beijing’s military expansion in the region.

“Another possible reason for the submarine’s surfacing is to avoid grounding,” he said.

The decision to surface the Type 094 submarine, a heavy tonnage Jin-class vessel, may have been precautionary to avoid the risk of running aground, especially given the shallow waters of the Taiwan Strait, he said.

Military experts also said that because this was the height of the squid fishing season, surfacing in the area could reduce the chance that such a vessel became entangled in fishing nets.

Type 094 submarines were also observed surfacing in the Taiwan Strait in 2021 and 2020.

Jin-class submarines are equipped with JL-2 ballistic missiles that have a range of 7,000km, putting the continental US within reach. The newest version of the submarine, the Type 094A, entered service in April and reportedly carries the even more potent JL-3 ballistic missiles, which have a range of more than 10,000km.

Wednesday marks the 70th anniversary of the PLA’s submarine force.

In ‘2+2’ talks, China and South Korea agree to push for more ‘political trust’

https://www.scmp.com/news/china/diplomacy/article/3267275/22-talks-china-and-south-korea-agree-push-more-political-trust?utm_source=rss_feed

Beijing and Seoul agreed to more dialogue to foster “political trust and promote practical cooperation” during high-level foreign affairs and defence talks in the South Korean capital on Tuesday.

As part of the “2+2 dialogue” in Seoul, Chinese foreign vice-minister Sun Weidong and Zhang Baoqun, deputy director of the Chinese military’s international cooperation office, met South Korean foreign vice-minister Kim Hong-kyun and Lee Seung-beom, director general for international policy at the defence ministry.

The two sides “had a candid and in-depth exchange of views on the bilateral relations and international regional issues of mutual interest” and outlined their diplomatic and security policies, the Chinese foreign ministry said on Wednesday.

The Chinese delegation also met South Korean Foreign Minister Cho Tae-yul.

The 2+2 dialogue was set up in 2002 and has been held five times. Tuesday’s meeting was the first since it was upgraded to the vice-ministerial level in 2020 under the administration of former South Korean president Moon Jae-in.

It coincided with Russian President Vladimir Putin’s first visit to North Korea in two decades.

However, Beijing said the date for the 2+2 dialogue “was agreed upon at an early stage” and it had “no special relevance to other countries”.

Beijing also noted that North Korea and Russia “as friendly neighbours have their normal need to have exchanges and cooperation and develop their relations, and the high-level exchanges are the bilateral arrangements of two sovereign countries”.

According to the Chinese foreign ministry, Beijing and Seoul agreed on Tuesday to carry out dialogue and exchanges at various levels and fields, and “to enhance communication and political trust, and promote practical cooperation” through high-level strategic dialogue.

This included the 2+2 dialogue, and the “track 1.5 dialogue”, discussions that involve government officials and non-government experts.

They also agreed to improve local government and youth exchanges.

The ministry said China promoted global security cooperation through dialogue and negotiation, and opposed hegemony, unilateralism and power politics.

“China and South Korea are both beneficiaries of economic globalisation, and therefore they should jointly safeguard global industrial supply chains, and oppose politicisation of economic issues and … any kind of trade protectionism and barriers,” it said.

China and South Korea enjoy robust trade ties but these have been tested in recent years by Seoul’s closer security and political relations with Washington.

There were signs of improvement last month when Chinese Premier Li Qiang met South Korean President Yoon Suk-yeol in Seoul on the margins of a trilateral summit with Japan. During those talks, negotiations resumed on upgrading a free-trade agreement.

In the meeting on Tuesday, the officials also discussed the Korean peninsula issue, with China saying that safeguarding peace and stability on the peninsula was “in line with the common interest of all sides, including China and South Korea”.

“The situation and the development of the situation is clear, and the priority is to cool the situation and avoid escalation of the confrontation, and uphold the right direction of political settlement,” the Chinese foreign ministry said.

“China always draws our own conclusions on issues based on the right and wrong of the matters, and we will continue to play a constructive role in Korean peninsula affairs in our own way.”

The ministry also said Beijing made clear its position on Taiwan and other core interests, and “asked Seoul to properly handle them”.

In addition, South Korea reiterated that its position of respecting China’s position on Taiwan had not changed, according to the ministry.

China needs consumption surge for full-blown economic recovery, researcher says

https://www.scmp.com/economy/china-economy/article/3267227/china-needs-consumption-surge-full-blown-economic-recovery-researcher-says?utm_source=rss_feed

The third plenum of the Central Committee of China’s Communist Party, scheduled for next month, is expected to set the tone for the country’s economic policy for the next several years. In advance of that meeting, the Post is reviewing the work of notable scholars and observers about their own expectations – as well as their thoughts on China’s economy at large. The first part of this series can be found .

China should increase household incomes and improve its social security system to stimulate consumption, a former Communist Party research official has said, adding that authorities should not hastily impose restrictions on the purchase of big-ticket items like houses and cars.

“The market conditions of products like homes and cars have a greater impact on economic stability,” said Zheng Xinli, former deputy director of the party’s Central Policy Research Office.

He made the remarks in a commentary last month for the Study Times – an organ of the Central Party School, the country’s top ideological training centre for up-and-coming officials.

“We need to improve management of production and sales channels, not impose administrative restrictions hastily, and create a favourable policy environment for sustainable growth of the real estate and automobile industries.”

The piece was published ahead of the landmark third plenum of the party’s Central Committee, scheduled for July. Expectations are high for economic reform as ebbs in factory output, property purchases and consumer spending are holding back a full-throated post-pandemic recovery for the world’s second-largest economy.

Last month, Beijing announced several measures to help stabilise its property market, including an injection of 300 billion yuan (US$41.3 billion) to help clear excess stock. Many cities have lifted previously imposed purchase restrictions, leaving only the southern island province of Hainan and five urban centres – including Shanghai and Beijing – maintaining some curbs as of May, China News reported.

However, the government’s rescue package has yet to make an impact as new home prices saw a further decline in May, the steepest drop in nearly 10 years.

The researcher also called for expanding service sectors like education, tourism, culture, law and sports, saying all carry “huge potential” to serve as new growth drivers as traditional stalwarts falter.

China is tangling with concerns over deflationary pressure as domestic demand remains weak. The country’s consumer price index (CPI) has broken ranks with most Western economies, holding at near-zero since last April in contrast to those countries’ high inflation. It expanded by 0.3 per cent year-on-year in May, still falling far short of the government’s target of 3 per cent.

Meanwhile the China Retail Performance Index, a barometer of retail sector sentiment, stood at a 12-month high of 50.4 per cent in April, reflecting assurances from Beijing it would expand domestic demand and buoy the wider economy – a role previously filled by manufacturing.

All levels of education should be improved to develop “new productive forces”, Zheng said in his Study Times piece. The term has been used more frequently in official rhetoric to describe emerging industries that could become pillars of economic growth, feature advanced labour and technological standards and will require a highly skilled and educated workforce.

To address the current shortage of skilled personnel and high rates of unemployment among college graduates, China should step up vocational education, increase salaries and offer opportunities for upward mobility among skilled workers, Zheng said.

The economist further recommended forming “super strong” technology research teams and enterprises with the capacity for innovation, using taxation and finance policy to support investment in hi-tech research and development.

Zheng, 79, was an early advocate for the creation of the Beijing-based Asian Infrastructure Investment Bank, a multilateral development bank which now has 109 member nations. In an interview with the Ma Hong Foundation, he said he took part in the drafting of four reform documents produced at earlier plenary sessions.

Stanford PhD physicist gets his dream job as a rural clerk in central China

https://www.scmp.com/news/china/science/article/3267261/stanford-phd-physicist-gets-his-dream-job-rural-clerk-central-china?utm_source=rss_feed

A Stanford physics PhD graduate has been selected to work as a grass-roots civil servant in rural China, an unusual career step that has attracted widespread attention and discussion in Chinese society.

On Sunday evening, the civil servant bureau of Suzhou, a city in the southwestern province of Anhui, published its second intake of recruits for the year.

Among the 330 new employees who will join the city’s public service workforce, Su Zhen stands out for his impressive education.

He is the only new hire with a doctorate and, while other candidates attended little-known colleges and vocational schools in China, Su graduated from a leading American institution ranked third in the Best Global Universities list.

Of the six candidates competing with him for the same position, Su came first in the written test, interview and final score.

He will not be working in a city, but instead will be in a rural town. The list shows he applied for the post of township basic affairs management in Lingbi, a county of nearly 1 million people in northern Anhui province that comes under the jurisdiction of Suzhou.

According to the recruitment notice published in January, two people would be recruited to work in towns in Lingbi county. The job description includes public service, rural revitalisation and the promotion of social civility, which usually refers to encouraging decent behaviour and eliminating outmoded rural customs, such as extravagant funerals.

Xu Xuchu, a professor at the China Academy for Rural Development at Zhejiang University, said township-level officials in China were at the forefront of local governance.

According to Xu, although there is a professional division of labour in rural posts, in most cases grass-roots administration requires staff to take on broader responsibilities.

For example, clerks might be responsible for economic matters in the town, such as industrial development planning, as well as improving rural living conditions, ecological protection, ideological propaganda and the election of rural cadres, Xu said.

Su’s career choice is seen by many as inexplicable. One of Su’s high school classmates, who goes by the username Hyman, expressed surprise at the news on the social media site Zhihu, a Quora-like online content platform, this month.

“I think his intelligence and diligence make him a better academic researcher than me, and there is no doubt that he has a bright future ahead of him,” he said.

Su came from Xiao county, a region of around 1 million people in northern Anhui province. He enrolled in the PhD programme in applied physics at Stanford’s prestigious physics department in 2016, and his dissertation on serial X-ray crystallography was submitted in August 2022.

Before that, he completed undergraduate studies in physics at the University of Science and Technology of China (USTC) where he was awarded the Guo Moruo Scholarship, the university’s most prestigious scholarship.

The Post has attempted to contact Su to ask him about his life experiences and career path, but has not yet received a reply.

Professor Xu said people should not judge Su’s personal choice from a worldly perspective without knowing his thoughts and experiences.

In Xu’s opinion, Su’s recruitment was neither a waste of talent nor a misallocation of resources – using his talents to build his hometown might be Su’s ideal career – or else he might have chosen to work in a more developed city.

And on a personal growth level, Xu believes Su’s unusual career path could hold promise. He said that in rural China, where talent is scarce, Su’s impressive background made it difficult for governors not to notice him and give him important roles.

China cracks down on seeds of cyberbullying after suicides linked to online abuse

https://www.scmp.com/news/china/politics/article/3267211/china-cracks-down-seeds-cyberbullying-after-suicides-linked-online-abuse?utm_source=rss_feed

Four Chinese government departments have issued regulations to crack down on cyber violence from its earliest stages, after victims in a number of cases took their own lives.

China’s top internet watchdog, the Cyberspace Administration of China (CAC), published regulations aimed at tackling cyberbullying on its website on Friday.

The regulations, which were jointly issued by the CAC and the Ministry of Public Security, the National Radio and Television Administration and the Ministry of Culture and Tourism, will take effect in August.

They reaffirm the requirement for internet users to be identified by their real names and asked internet information service providers – such as the parent companies of social media and newsfeed platforms – not to provide services to anonymous users.

The rules also call for online news publishers to promote public awareness of online abuse, censor comments in advance and cut off live broadcasts containing violent information. Publishers must immediately correct any news related to cyber violence that is “untrue” or “unfair”, according to the provisions.

Online abuse of minors will receive special attention and priority under the new rules.

The regulations refer to cyber violence as “text, images, audio and video” that are “insulting, slanderous, defamatory, inciting hatred, threatening, violating privacy, and ridiculing, degrading and discriminating against others, affecting their physical and mental health”.

In a follow-up statement on Sunday, the CAC said the regulations were in response to proposals made by delegates during the “two sessions” in March – the annual gathering of the National People’s Congress and the Chinese People’s Political Consultative Conference.

The CAC added that the provisions were based on a number of existing laws and would “effectively improve the efficiency of governance”.

China does not yet have a specific anti-cyberbullying law. It regulates online violence through guidelines issued by various government departments and provisions scattered in other legislation, including a guideline introduced in September urging law enforcement agencies to crack down on cyberbullying involving minors.

The 34-point regulations revealed on Friday are the latest move to tackle online abuse after some serious cases sparked public anger.

In February last year, in a tragedy that led to a wave of online protests, a 23-year-old woman who had been bullied online for dyeing her hair pink committed suicide after months battling depression.

And in June last year, a mother in the central city of Wuhan was attacked for wearing flashy clothes after her six-year-old son died in a school bus accident. Her suicide prompted a flood of calls for cyberbullying to be punished, including from several official media outlets.

The Ministry of Public Security said in May that police in China had handled 453,000 cases of online crimes over the past five years, including personal information violations, online rumours and cyber violence.

Other official attempts to combat cyberbullying include a campaign by the ministry in December and another by the CAC in November to combat “hostility online”.

China calls EU tariff hikes ‘protectionism’, urges talks to resolve EV dispute

https://www.scmp.com/news/china/diplomacy/article/3267235/china-calls-eu-tariff-hikes-protectionism-urges-talks-resolve-ev-dispute?utm_source=rss_feed

China has slammed EU tariffs hikes as “protectionism”, with Vice-Premier Ding Xuexiang calling for dialogue to resolve their dispute over Chinese-made electric vehicles.

Co-chairing bilateral climate talks in Brussels on Tuesday, Ding urged the 27-nation bloc to remove barriers on China’s green products, citing shared “extensive common interests and broad space for cooperation” in green transformation.

“Electric vehicles are iconic products in the green and low-carbon transformation of energy,” he told the fifth High-Level Environment and Climate Dialogue between China and the European Union.

“The EU’s imposition of additional tariffs on Chinese EVs is a typical example of protectionism, which is not conducive to the EU’s green transformation and undermines global cooperation in combating climate change,” the first-ranking vice-premier was quoted as saying by Chinese state news agency Xinhua.

Ding ranks No 6 in China’s Communist Party hierarchy and is a member of its all-powerful Politburo Standing Committee.

He also urged the EU to “enhance the consistency of its cooperation policies with China in the fields of environment, climate and economy and trade … [and] avoid setting up green barriers that interfere with normal economic and trade cooperation”.

“The two sides should resolve trade frictions through dialogue and consultation. China is unwavering in its determination to safeguard its legitimate and legitimate interests,” Ding said.

Ding kicked off his Brussels visit on Monday as part of a five-day trip to Europe that will also take him to Luxembourg.

His trip comes days after the EU imposed high-profile tariff hikes of up to 38 per cent on Chinese EVs.

The bloc blames China’s state subsidies for flooding the European market with cheap products that undercut local competitors. It is also carrying out anti-subsidy investigations into Chinese solar panel and wind turbine manufacturers.

In response to the hikes, China on Monday announced an anti-dumping investigation into EU pork, after launching a similar probe into French brandy in January.

Maros Sefcovic, executive vice-president of the European Commission – the EU’s executive arm, co-chaired the climate talks with Ding.

The Slovak diplomat, who also leads the EU’s green agenda, said the bloc was willing to properly resolve differences on EVs with China through dialogue.

“China has a decisive influence in global affairs, and maintaining good relations with China is vital to the EU,” Sefcovic was quoted as saying in the Xinhua report.

“The EU appreciates China’s strong measures and obvious results in promoting green and low-carbon development, and is willing to deepen cooperation with China in areas such as addressing climate change and protecting the ecological environment,” he said.

Trade tensions between China and the EU have continued to grow as the bloc pushes for a supply chain “de-risking” agenda targeting Beijing in a bid to address their long-standing trade imbalance. The EU’s largest trade deficit is with China, hitting about 280 billion euro (US$300.6 billion) last year.

On climate, China has set itself an ambitious goal of reaching peak carbon before 2030 and becoming carbon neutral by 2060. This has prompted a surge in the domestic production of clean-energy products, including EVs. Of nearly 1.8 million Chinese EVs exported worldwide last year, more than a quarter went to Europe.

The EU, which has been pushing for a green transformation and aims to become carbon neutral by 2050, has also ramped up measures to support local energy sectors. However, its green agenda has faced challenges at home from economic problems since the Ukraine war hit supply chains and trade, and the rise of populism and trade protectionism.

Despite divisions with the EU over trade and Russia’s invasion of Ukraine – Beijing’s position on which has been harshly criticised by Brussels – China has been seeking to improve its relations with the bloc amid deepening rivalry with the United States.

Chinese President Xi Jinping travelled to France last month for meetings with French counterpart Emmanuel Macron and EU Commission President Ursula von der Leyen. Macron and von der Leyen also visited China last year as high-level exchanges on pragmatic concerns increased.

“We need to work together to implement the important consensus reached by Chinese and EU leaders, push for more fruitful cooperation on green transformation, and consolidate the momentum of stable and sound China-EU relations,” Ding told Sefcovic at the climate talks.

The annual High-Level Environment and Climate Dialogue mechanism between China and the EU was launched in 2020.

In Luxembourg, a founding member of the EU, Ding is expected to meet leaders of the grand duchy and attend the Second Zhengzhou-Luxembourg “Air Silk Road” Forum for International Cooperation on Thursday.

The air silk road programme aims to connect Zhengzhou, the capital of China’s central Henan province, with cities in Europe and Southeast Asia for exchanges of “goods, people and ideas”. The airfreight route between Zhengzhou and Luxembourg opened in 2014.

---

Philippines accuses China of ‘piracy’ after ship boarded, sailor injured

https://www.washingtonpost.com/world/2024/06/19/philippines-south-china-sea-sailor/2024-06-18T08:22:48.065Z

MANILA — The Chinese coast guard boarded a Philippine navy vessel and damaged and confiscated equipment in a confrontation that left a sailor severely injured earlier this week, the Philippines announced Wednesday in a stark escalation of tensions over the disputed South China Sea.

According to Philippine officials, Chinese vessels on Monday rammed Philippine ships to stop them from resupplying a warship, the Sierra Madre, which has long been beached on a half-submerged reef 120 miles away from the Philippine province of Palawan and is at the center of the dispute between the two countries.

Chinese coast guard used knives and machetes to puncture Philippine rubber dinghies that were attempting to reach the outpost and confiscated equipment on Philippine navy vessels, officials said. One sailor’s hand was severely injured because it was caught in one of the rubber dinghies.

“This is piracy,” Gen. Romeo Brawner Jr., the Philippine armed forces’ chief of staff, said in a news conference held in Palawan. “They boarded our boats illegally, they took our equipment. They are like pirates with the actions they carried out.”

Chinese coast guard officials, in turn, said a Philippine supply ship had “deliberately and dangerously” approached a Chinese ship, causing a minor collision.

China has sought to dominate the South China Sea, a highly strategic waterway that is also claimed in part by six other governments. As the Philippines has ramped up its efforts to push back against the Chinese, it has been met with an increasingly forceful response that security analysts say could spur broader conflict in the Pacific.

The United States shares a mutual defense treaty with the Philippines and has stressed in recent months that an armed attack on Philippine military vessels or personnel in the South China Sea could trigger a U.S. military response. The U.S. ambassador to the Philippines, MaryKay Carlson, on Tuesday condemned China’s “aggressive, dangerous maneuvers” at sea but did not say whether or how the United States would respond. A spokesman for the U.S. Embassy in Manila declined to answer questions on a potential U.S. response.

Earlier this month, President Ferdinand Marcos Jr. said at a security summit in Singapore that the death of a Filipino citizen through a “willful act” would be “close to an act of war” that could prompt a military response. “Our treaty partner holds that same standard,” he said, referring to the United States.

Tan reported from Singapore.

China cultivated high-rolling crime families before turning on them

https://www.washingtonpost.com/world/2024/06/19/china-online-scams-myanmar-trafficking/2024-04-02T15:27:59.097Z

For the scion of a crime family linked to human trafficking and enslavement, money laundering and global cyberscams, Wei Qingtao was brazenly public. His Douyin account, the Chinese-language version of TikTok, flaunted the excesses of his life in a remote corner of Myanmar by the border with China: Bentleys and Lamborghinis, rare cigars and private jets.

When the 27-year-old partied at the multistory, glass-walled nightclub he owned in a region called Kokang, he’d throw crisp Chinese yuan bills into the crowd as international techno DJs, chauffeured in along dirt roads, performed their sets.

In November, the good times rolled to a stop. Wei’s social media presence vanished. He soon appeared in a different kind of video: reading a scripted confession while in Chinese custody.

“The money we make from cyberscams comes from the pensions of everyday Chinese people,” Wei said, a baggy gray sweater replacing his bespoke blazers. “This time, the Chinese government has made up its mind. … We must not cling to any illusions.” Within weeks, his uncle was in cuffs on a plane to China, flanked by dozens of police officers.

The detention of Wei and at least 15 other alleged senior crime family members and their associates was lavishly covered by Chinese media, designed to showcase Beijing’s reach. This was proof, Chinese officials said, of their determination to crush transnational criminals victimizing their citizens, no matter where they are based.

The official Chinese Communist Party news outlet called the arrests a “death knell” for the scams, which tried to dupe people into giving up their money including through bogus investments schemes and fake online romances. “No matter how … big you become,” the People’s Daily wrote, “you cannot escape the severe punishment of the law.”

That crusading narrative is incomplete, however.

A Washington Post investigation found that Kokang’s criminal networks — principally led by the Wei, Bai and Liu families, according to U.N. officials, Chinese court records and analysts — had for more than a decade enjoyed close relations with Chinese officials, primarily in neighboring Yunnan province, along with support from Beijing and the military government in Myanmar. The Myanmar military chief, Min Aung Hlaing, further solidified the families as political and economic brokers after taking power in a 2021 coup.

Evidence of the Kokang families’ deep cooperation with Chinese state officials has partially been scrubbed from the Chinese internet and social media but some of it was archived and verified by The Post. Statements, news releases and photos on the official websites and social media pages of the Kokang authorities, and the Myanmar and Chinese governments show that they worked together on multiple economic projects worth hundreds of millions of dollars.

Kokang is effectively off-limits to journalists but video footage, photos and interviews with more than two dozen people who had worked in Kokang offered a window into the more than 300 scam compounds operating in a region that the United Nations estimates tens of thousands of people were trafficked into. That made Kokang a key hub in what Interpol estimates is a $3 trillion online scam industry operating in different parts of the world.

Workers, mostly Chinese nationals or ethnic Chinese, were bought, sold and traded; and then beaten, tortured or killed when they didn’t reach financial targets or tried to escape, according to firsthand accounts, in some cases supported by verified video footage, photos and screenshots of text messages supplied by victims. The Post also reviewed Chinese court records and found more than 1,100 criminal cases linked to Kokang, some specifically to the compounds and businesses operated by the three clans, over the past decade. Almost all focused on low-level operatives involved in illegal gambling, human trafficking and narcotics, the records show, while the heads of the families continued to work with Chinese officials.

The Kokang families, which ran both legitimate and illicit businesses, often from the same property, were useful partners and guarantors of stability as Chinese leader Xi Jinping pursued his massive Belt and Road Initiative, a $1-trillion bet that infrastructure projects along China’s border and beyond would build regional and global influence. Being Han Chinese, the families set up companies in China and obtained identity papers usually reserved for Chinese nationals, corporate records show.

As recently as May 2023, the Lius, for instance, were distinguished guests at a high-profile China-Myanmar border trade fair promoting “mutually-beneficial cooperation,” held in the Myanmar capital. The Lius’ company had a booth alongside Chinese firms such as Huawei and China Telecom. Chinese officials such as the ambassador to Myanmar and the governor of Lincang in Yunnan province were also present.

That umbrella allowed the clans to lord over Kokang, a majority ethnic Han Chinese region, and turn it into the center of a sophisticated criminal network that generated multiple billions of dollars annually, according to an estimate by the U.N. Office on Drugs and Crime (UNODC).

“They were among the most powerful and profitable casino and scam operators in the region,” said Jeremy Douglas, regional representative for Southeast Asia and the Pacific for UNODC, “and were perceived as untouchable.”

The scam operations, however, led to growing outrage among hundreds of thousands of Chinese victims bilked of their money as well as among the families of trafficked workers. China was finally forced to move against its associates as the theft and trafficking became a domestic political issue, officials and analysts said. China’s Anti-Fraud Center in late May said police intercepted $157 billion in funds related to scams since 2021. Many more cases have gone unresolved.

Spokesmen for Myanmar’s State Administration Council and the Myanmar military did not respond to requests for comment. China’s Foreign Ministry, Yunnan’s provincial government and Lincang’s city government also did not respond to requests for comment. The Post emailed the companies run by the Kokang families, including the Lius’ Fully Light Group, Warner International, the Gobo East subsidiary and the Weis’ Hanley Group, at addresses still listed on their websites, and did not receive any response.

Despite Beijing’s ongoing crackdown, these criminal networks have proved difficult to eradicate. Subsidiaries and operations linked to the Kokang families remain intact, according to an analysis of their cryptocurrency wallets by the firm Chainalysis and in-person visits to the families’ offices in Yangon, Myanmar’s commercial capital. Scam operations run by rival groups continue to grow in other parts of Myanmar and Southeast Asia.

“The Kokang families were engines for the Chinese-Myanmar economic relationship. Their economic sway came from [illicit businesses] but also from this massive web of relationships that they built with economic and political elites all across China,” said Jason Tower, director of the Myanmar program at the U.S. Institute of Peace.

China, he added, has helped create “a Frankenstein monster that it now can’t control.”

Vast casinos

Far from the Myanmar heartland, Kokang has long been synonymous with vice — from heroin and methamphetamine production to gambling dens, all of which thrived under warlord Peng Jiasheng and his Myanmar National Democratic Alliance (MNDAA) rebel army.

In 2009, the Myanmar military moved against the MNDAA, defeating the group after co-opting some of Peng’s top men. For bringing the territory under central control, the commander who led the operation — Min Aung Hlaing — was handpicked to lead the military two years later. And the MNDAA leaders who flipped — members of the Bai, Wei and Liu clans — were rewarded with control over the region and its underground economy, analysts said. They became leaders of the Kokang Border Guard Force, a subdivision of the Myanmar military, and of the Kokang regional administration.

The clans controlled every aspect of life in Kokang, becoming lawmakers, militia heads, local administrators and powerful business executives. They “got involved in all kinds of illegal businesses that were already there, and built up much more,” said Richard Horsey, the International Crisis Group’s senior adviser for Myanmar.

At the same time, their ethnic Chinese identity strengthened their position as Xi encouraged regional investment, and as ties between the Myanmar junta and the Chinese Communist Party deepened.

Local authorities in Yunnan worked with the families on investment opportunities such as an expanded port and two cross-border economic zones, according to official Chinese statements. In 2017, as Xi gathered foreign leaders in Beijing for the first Belt and Road Forum, China’s state broadcaster featured the newly expanded Qingshuihe port connecting Yunnan to Kokang as a model project. Soon afterward, China allocated $6 million in central government subsidies to the border trade zone. China’s Finance Ministry organized funding from the Asian Development Bank, which eventually approved $250 million in loans for roads and other infrastructure after Chinese officials visited the border in April 2018.

It was an extension of Beijing’s overall approach in restive borderlands: development as a path to stability.

“China’s chief objective for Kokang is to secure the border, and to do that you have to help the other side resolve economic and livelihood problems,” said Liu Yun, a fellow at Taihe Institute, a Chinese think tank in Beijing.

A spokesperson for the Asian Development Bank said the Yunnan-Lincang project was “designed to improve the economic growth potential and the standard of living” of residents in those parts of China and “surrounding areas,” and that the project was developed “in compliance with ADB policies and procedures.”

The families grew their holdings into diversified conglomerates. The Liu family’s Fully Light Group, in particular, became involved in every lucrative industry in Myanmar, including real estate, hotels, gems, agriculture, cigarettes, pesticides and more, and opened subsidiaries in China and Cambodia, corporate records show.

But at the heart of the Kokang empire were casinos, underground banking and money laundering, according to U.N. officials and U.S. diplomatic cables released by WikiLeaks.

High-rollers and ordinary Chinese gamblers flocked to the porous border between Yunnan and Kokang. Newly built mega-casinos in the Kokang capital, Laukkaing, opened 24 hours a day. The Kokang clans planned to build an airport and pitched themselves as a Macao-like destination for foreign tourists.

Behind the vast casino floors, a more sinister industry started to grow. Chinese court documents show that from at least 2018 “criminal syndicates” were smuggling people into the Crouching Tiger Villa, a banquet hall and hotel, and forcing them to work as scammers. The compound is owned by the Ming family, henchmen for the Bai clan, according to Chinese state media and a person who worked at the villa.

Border closures that followed the outbreak of the coronavirus pandemic shut off the cash flow to the casinos, accelerating a shift to this new scam economy. But it was the 2021 military coup in Myanmar that supercharged Kokang. Min Aung Hlaing turned to the families for an economic and political lifeline, including large tax payments, as Western sanctions mounted against his government. The families donated lavishly to the general’s pet projects, such as building marble Buddha statues and pagodas, and leveraged their ties to China to keep bilateral trade and infrastructure projects going, according to the Kokang administration’s social media posts and Myanmar state media. Clan patriarchs became among the most decorated citizens of Myanmar, honored with a number of awards, and represented Myanmar at major regional summits.

The families “felt they could do anything,” said Horsey at the ICG.

Snipers on the rooftop

The scammers — from just across the border in China and as far away as Malaysia — were effectively imprisoned in Kokang’s purpose-built compounds. Sitting at computer screens in large dormlike rooms that resembled call centers, they were trained to cultivate people who could be drained of their savings.

Scammers were to talk up business trips and ties with elderly relatives to “establish an image of responsibility, kindness and respect” while sprinkling in “light discussion” of an “investment” opportunity, according to notes found inside the Crouching Tiger Villa and posted on Douyin. In courting romance, they were to assess if the mark preferred talking about their day or just sex, a scammer said.

Many of the compounds for running scam operations were hosted in the same hotels and casino complexes long established by the clans. Others were purpose built, but had telltale signs like barred windows, high walls and even Myanmar military snipers on the rooftops, witnesses said.

A handyman, hired to build soundproof phone booths within a scam compound in a hotel owned by the Liu family, said he was interrupted by screams as he worked. He said he saw a supervisor beating three men, their hands tied behind their back, with lead pipes. A Taiwanese woman, who was trafficked into Laukkaing, told The Post she was waterboarded when she tried to escape. A Chinese man, who was forcibly brought into Kokang by knife-wielding men after responding to an acting job online in China, said he saw others in his compound chained and beaten. At one point, four people were shot when they fought back during beatings and tried to seize guns from the guards, he added in an interview.

The Crouching Tiger Villa was among the most brutally run compounds, witnesses said. There, caged lions, tigers and bears were used to threaten workers who stepped out of line, according to a person who led a team of workers there.

Clans also hired foreign security personnel to protect their interests. Alex Klisevits, a former Estonian navy officer, was among a team of 11 who arrived in Kokang after responding to a job ad seeking close protection officers for a “Chinese businessman.” Klisevits said he was smuggled in and soon realized he was not free to leave. The first day on the job, Klisevits said he saw a chained man beaten unconscious.

“When I saw how they punished people … I thought, ‘where the hell am I?’” Klisevits said.

Confession videos

By 2023, Beijing was coming under growing domestic and international pressure to act against these operations. The United Nations estimated in a report last year that more than 120,000 people were being forced to work in Myanmar. Rescue groups said this was a conservative estimate.

Trafficked people working in scam centers in the region have been recorded from at least 35 countries, including the United States, Uganda and Brazil, according to the State Department’s Office to Monitor and Combat Trafficking in Persons, but most are from China.

The scamming became such a public matter in China that it was fictionalized in one of the country’s highest grossing movies last year. The film, “No More Bets,” follows a Chinese software engineer trafficked into a place that closely resembled northern Myanmar, where he was forced to work as a scammer.

Signs of official Chinese concern burst into the open in August when the Chinese ambassador warned Myanmar authorities to “eradicate the cancer of gambling and scams” that was “deeply loathed by the Chinese people.”

Compounds in Laos and Cambodia were raided by local police, accompanied by officers from China. In Myanmar, the Kokang clans vowed to conduct their own crackdown, claiming they would never tolerate such activities in their region. The raids and arrests that followed were performative, U.N. officials and researchers said.

“China did send lots of signals to the Myanmar military beforehand,” said Xu Peng, a PhD candidate at the SOAS University of London who has extensively researched the Myanmar-China borderlands. “[Min Aung Hlaing] either did not understand these signals, or had no willingness to crack down, because of his personal history. Kokang was what he perceived as the beginning of his rise.”

Word began to reach workers that China wanted them home and escape attempts rose. At the Crouching Tiger Villa on Oct. 20, guards opened fire when over 100 people tried to leave. The Post could not verify how many died, but four undercover Chinese police officers were among those killed, according to accounts from Kokang residents and Sammy Chen, an independent consultant who worked with dozens of families and authorities in China and Thailand to extract people from scam compounds.

Confession videos featuring Wei Qingtao and two others — individuals from the Liu family and the Ming family — began to appear on Chinese media. Their video statements were almost identical. Two of the Mings were arrested in Myanmar by local police and handed over to China. The patriarch, a former military-allied lawmaker, Ming Xuechang, died during a Myanmar police raid from a “self-inflicted gunshot wound from his own pistol,” according to Myanmar state television. In December, China issued arrest warrants for 10 more heads of the Bai, Wei and Liu families, and their children.

Emboldened by Beijing’s crackdown, the MNDAA formed an alliance with two other ethnic armed groups and attacked junta positions nationwide. The MNDAA’s slogan was designed to appeal to Beijing: “wipe out the scammers, rescue our compatriots.”

On Jan. 6, Laukkaing, the capital of Kokang, fell to the MNDAA, returning full control of the region to the rebel group for the first time in 15 years. The MNDAA did not respond to requests for comment.

It was the Myanmar military’s most significant loss of territory since the country’s independence. And it would have been impossible, analysts say, without the explicit or tacit support of China. The MNDAA has since worked with China to repatriate foreigners from Kokang, according to diplomats involved. Since last July, 49,000 scam workers have been returned home to China, according to the Ministry of Public Security.

Several senior clan figures are now facing fraud and potentially other charges in China, officials said, carrying a maximum sentence of life in prison, but many have slipped away.

The Post provided verified addresses of cryptocurrency wallets linked to the Lius’ Fully Light Group and its subsidiaries, including an online casino operator, Warner International, to Chainalysis, a blockchain analysis firm. Chainalysis found that these businesses continued to move millions around through intermediary wallets as recently as April.

“These crime organizations are too complex to be taken down in a single action,” said Xue Yin Peh, a senior intelligence analyst at Chainalysis.

The cryptocurrency of choice, said Douglas of the UNODC, is Tether, the world’s largest stablecoin whose value is pegged to the dollar. Fully Light subsidiaries such as its Gobo East casino in Cambodia are still trading in Tether, Douglas said.

“Key parts of the corporate empire are still up and running.” he added.

Lights go down

Cyberscam operations, many operated by other ethnic Chinese gangs, continue to expand into other parts of world — especially Cambodia and Laos, but also as far away as Dubai, South Africa and Georgia, according to the U.N. researchers and anti-trafficking rescue groups.

“What began as a regional crime threat in Southeast Asia has become a global human trafficking crisis, with millions of victims, both in the cyberscam centers and as targets,” Jürgen Stock, the Interpol secretary general, said in March.

Beijing’s crackdown has nonetheless had at least one major effect on the scam industry. Operations run by ethnic Chinese gangs, researchers and rescuers say, are now targeting English speakers, including Americans, over Chinese victims to avoid Beijing’s wrath.

“They’re moving out of Kokang to areas that are less vulnerable to Chinese law enforcement expansionism,” said Jacob Sims, formerly of International Justice Mission, an anti-trafficking NGO, and now a visiting expert at USIP.

Even in Kokang, analysts say, illicit businesses and human rights violations are likely to persist — shifting only to take account of Chinese domestic sensitivities. The MNDAA in late April posted a video showing the public trial of some of its own fighters, three of whom were executed after the hearings for crimes including kidnapping and murder. The European Union condemned the executions, which it said were the “ultimate denial of human dignity.”

“The issue for Beijing [in Kokang] is not the illicit economy, it is illicit activity that targets Chinese nationals,” said Morgan Michaels, a research fellow at the International Institute for Strategic Studies who studies conflict in Myanmar.

The casinos and hotels owned by the Kokang crime families still stand, but have gone dark. Hanley Interstellar, Wei’s club, is deserted. So too is the Crouching Tiger Villa, its walls crumbling and pockmarked with bullet holes, verified videos show.

But some of the exotic animals — a tiger and five bears — survived the conflict. They still roam their cages, depending on rebel soldiers to bring their daily meal of chicken.

Alicia Chen in Taipei, Taiwan and two Myanmar-based reporters contributed to this report.

---

US and allies clash with China and Russia over North Korea’s launches and threats to use nukes

https://apnews.com/article/un-us-north-korea-china-russia-missiles-f727819e571907aec028cecdb7884d05A North Korean military guard post, top, and South Korean post, bottom, are seen from Paju, South Korea, near the border with North Korea, Friday, May 31, 2024. North Korean leader Kim Jong Un supervised firing drills involving nuclear-capable, multiple rocket launchers to show the country's ability to carry out preemptive attacks on rival South Korea, state media reported Friday. (AP Photo/Ahn Young-joon)

2024-06-01T00:46:05Z

UNITED NATIONS (AP) — The United States and allies South Korea and Japan clashed with China and Russia Friday over North Korea’s latest satellite and ballistic missile launches and threats to use nuclear weapons that have escalated tensions in northeast Asia.

The scene was an emergency open meeting of the U.N. Security Council called after North Korea’s failed launch of a military reconnaissance satellite on May 27 and other launches using ballistic missile technology in violation of U.N. sanctions.

Since the beginning of 2022, the Democratic People’s Republic of Korea – the North’s official name – has launched over 100 missiles using this banned technology as it has advanced its nuclear weapons program. In response, the U.S. and its allies have carried out an increasing number of military exercises.

U.N. Assistant Secretary-General Khaled Khiari briefed the council meeting saying sovereign states have the right to benefit from peaceful space activities – but the DPRK is expressly prohibited from conducting launches using ballistic missile technology and its continuing violations undermine global nuclear disarmament and non-proliferation treaties.

“We remain deeply concerned about growing tensions on the Korean Peninsula,” Khiari said. “There is a need for practical measures to reduce tensions, reverse the dangerous dynamic, and create space to explore diplomatic avenues.”

North Korea’s U.N. Ambassador Kim Song insisted that its satellite launches – and it had a successful one last November – are “the legitimate and universal right of a sovereign state” under international law and the Outer Space Treaty. He stressed that reconnaissance satellites are not only needed to strengthen its self-defense capabilities but to defend its sovereignty.

Kim told the Security Council that the “massive deployment of strategic assets and aggressive war exercises” by the United States on the Korean Peninsula and in the region have broken all records and destroyed the military balance.

This has turned the Korean Peninsula “into the most fragile zone in the world, fraught with the danger of outbreak of war,” he said, claiming that joint military exercises since the beginning of the year are “a U.S.-led nuclear war rehearsal.”

The DPRK ambassador said the Security Council shouldn’t waste time debating the legitimate rights of a sovereign state, but should direct its attention to putting an immediate end to the killing of civilians in Gaza, “which continues unabated under U.S. patronage.”

South Korea’s U.N. Ambassador Joonkook Hwang said it should be his country – not the DPRK – that should claim the right to self-defense.

He said the DPRK’s nuclear policy and its rhetoric “are getting increasing aggressive and hostile,” and Pyongyang no longer views its nuclear arsenal as just a deterrent against the United States, “but instead as a means to attack my country.”

He quoted DPRK leader Kim Jong Un’s sister, Kim Yo-jong, saying two weeks ago that the only purpose of their tactical nuclear weapons “is to teach a lesson to Seoul.”

U.S. deputy ambassador Robert Wood urged the Security Council to condemn the DPRK’s launches and hold it accountable for violating U.N. sanctions.

“But two council members, China and Russia, continuously block the Security Council from speaking against the DPRK’s behavior with one voice and makes us all less safe,” he said.

Wood also accused the DPRK of unlawfully transferring dozens of ballistic missiles and over 11,000 containers of munitions to Russia to aid its war against Ukraine, “prolonging the suffering of the Ukrainian people.”

He rejected as “groundless” and disingenuous” claims by the DPRK and its supporters on the council that its missile launches are a response to U.S.-led military exercises.

Russia’s U.N. Ambassador Anna Evstigneeva countered that “one of the key catalysts for the growing tensions in the region has been and remains the build-up of military activity by the U.S. and its allies.”

U.S.-led military drills against the DPRK and numerous other hostile acts with a threatening military component “are provoking countermeasures from North Korea, which is forced to take action to strengthen its national defense capacity,” she said.

Evstigneeva claimed “the unstable situation around the Korean Peninsula is of benefit to Washington, which continues to confidently and deliberately pursue the path of confrontation instead of dialogue.”

She also dismissed claims that Russia is engaging in illegal military and technical cooperation with the DPRK as “absolutely unfounded.”

China’s U.N. ambassador, Fu Cong, called the situation on the Korean Peninsula “highly tense, with antagonism and confrontation escalating,” and called on all parties to exercise restraint and avoid any actions or rhetoric that might increase tension.

He warned that a planned large-scale joint military exercise on the peninsula in August “practicing a scenario involving a nuclear war” will only increase tensions.

U.S. envoy Wood retorted that “the United States is in no way a threat to the DPRK,” stressing that the U.S. offer to reach out “an open hand” and hold talks with the DPRK without preconditions over the past few years “has been met with a clenched fist.”

---

Why China takes young Tibetans from their families | China

https://www.economist.com/china/2024/06/13/why-china-takes-young-tibetans-from-their-families

AN AIR OF quiet piety hangs over Rongwo Monastery in the western province of Qinghai. The streets near this ancient complex draw pilgrims and Tibetan Buddhist monks in dark red robes. Local believers make circuits around the monastery’s yellow walls, turning a line of wooden prayer-wheels as they walk.

On a recent Monday afternoon, though, chattering schoolchildren thronged this sacred neighbourhood in the heart of Tongren, a small mountain city known to Tibetans as Rebkong. Youngsters in red scarves and uniform tracksuits bought fruit and snacks from market stalls, most without a parent in sight. Teenage high-schoolers and pupils half their age hauled small suitcases or sat in weary groups beside piles of schoolbags, bringing the bustle of a railway station to streets around the monastery.

---

Can the Philippines challenge China’s dominance in the South China Sea? | Podcasts

https://www.economist.com/podcasts/2024/06/18/can-the-philippines-challenge-chinas-dominance-in-the-south-china-sea

The Philippines could be the next big flashpoint in the South China Sea, the world’s most contested waters. China claims nearly the entire sea as its territory, asserting rights over waters and islands that South-East Asian countries consider their own. While most neighbouring countries avoid confronting China, Ferdinand “Bongbong” Marcos, the Philippines’ president, is taking a stand.

David Rennie, The Economist’s Beijing bureau chief, and Sue-Lin Wong, our South-East Asia correspondent, ask: what is China up to in the South China Sea? And can the Philippines do anything about it?

Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+.

For more information about how to access Economist Podcasts+, please visit our FAQs page or watch our video explaining how to link your account.

China’s ramming of Philippine ship stops short of invoking US defence treaty

https://www.scmp.com/week-asia/politics/article/3267208/chinas-ramming-philippine-ship-stops-short-invoking-us-defence-treaty?utm_source=rss_feed

A recent skirmish in the South China Sea between navy personnel from the Philippines and the Chinese coastguard in which the Philippine side sustained injuries is not severe enough to invoke a defence treaty between Manila and Washington, observers say.

They warn, however, that the Philippines would have to register its strong approval of China’s actions to Beijing and discuss strategies with the US to continue Manila’s resupply missions in the disputed waters.

The Philippine military has accused China of “intentional high-speed ramming” in the incident on Monday, in which eight Filipino sailors were injured and one suffered a severed thumb. China’s coastguard also reportedly seized two lifeboats used for the resupply missions from the Philippine vessel.

Manila and the United States are bound by the long-standing 1951 Mutual Defence Treaty (MDT) that calls on both sides to help each other in times of aggression by an external power.

In a statement on Tuesday, Philippine military chief General Romeo Brawner said the Chinese coastguard “has no right or legal authority to interfere with our legitimate operations or damage our assets within our exclusive economic zone (EEZ)”.

“This reckless and aggressive behaviour has caused bodily harm and constitutes a blatant violation of international maritime law, Philippine sovereignty, and sovereign rights,” Brawner added, noting that China’s actions also “pose significant risks to regional stability”.

Despite the incident, Brawner said his side remained committed to upholding the rule of law and would collaborate with international partners “to ensure and secure peace and stability across the West Philippine Sea and the Indo-Pacific Region”.

Beijing has blamed Manila for the incident in the Second Thomas Shoal, a flashpoint in the South China Sea that has seen numerous clashes between both sides over territorial disputes. The Chinese said the Philippine vessel had “ignored repeated solemn warnings”.

Jose Antonio Custodio, a defence analyst and fellow at the Consortium of Indo-Pacific Researchers, told This Week in Asia that Monday’s incident did not warrant the activation of the MDT, noting the loss of a thumb of a sailor, though regrettable, did not qualify as life-threatening.

According to Custodio, President Ferdinand Marcos Jnr’s administration needs to rethink the way it conducts resupply missions to the BRP Sierra Madre, an old warship run aground in the shoal to serve as a Filipino outpost, by strengthening personnel and assets during such missions.

“Loss of life and sinking of vessels or downing of aircraft of the Philippines by China would be considered enough to warrant US heightened involvement. But even that will follow a lot of diplomatic exchanges between Manila and Beijing,” he said of a likely scenario in which the treaty would be observed.

US Deputy Secretary of State Kurt Campbell spoke about the incident in a phone call with his Philippine counterpart Maria Theresa Lazaro. They agreed that China’s “dangerous actions threatened regional peace and stability”, according to State Department spokesman Matthew Miller.

Campell reaffirmed the MDT, saying it “extends to armed attacks on Philippine armed forces, public vessels, or aircraft – including those of its coastguard – anywhere in the South China Sea,” Miller said.

US Vice-President Kamala Harris, who in 2022 visited Palawan, an island in the Philippines facing the South China Sea, said the US had a “profound stake in the future” of the region and stood ready to support the Philippines.

In May last year, US President Joe Biden reassured Marcos Jnr that Washington’s commitment to defending its Southeast Asian ally remained “ironclad”.

Abdul Rahman Yaacob, a research fellow in the Southeast Asia Programme at the Lowy Institute, said the US might not want to escalate the situation.

“Any US military intervention may lead to a military confrontation with China. In turn, such a scenario may lead to a wider military conflict across the Indo-Pacific region between the two powers,” Yaacob said.

“At this point, the US is providing massive arms supply to Ukraine and Israel and is involved in the Red Sea to keep the sea lanes there open. I do not think Washington is keen to open up a new front when it is already bogged down in Europe and the Middle East.”

The Chinese government is also keen to avoid a conventional war with the US, according to Yaacob.

“Their navy, although the largest in the world in terms of number, could be a paper tiger in an actual military conflict with the US,” he said.

A red line that China would have to cross for the US to enter the fray would be if Beijing were to use military firepower such as missiles and guns to cause injury or even death to Filipino servicemen, Yaacob said.

“However, China is less likely to do so. China will likely use grey-zone tactics without firepower to intimidate the Philippines. The seizure of the two Philippines lifeboats is just a start.

“If there is no strong response from Manila, China will be emboldened to step up its tactic and begin seizing and damaging Filipino vessels from now on,” he warned.

One possible option for Manila to indicate to China that the incident is serious is by expelling a Chinese diplomat or recalling Manila’s ambassador to Beijing for consultation, according to Yaacob.

Another option was for the US and the Philippines to work out operational and tactical strategies to ensure the continuous resupply of the Filipino troops deployed on the Second Thomas Shoal, Yaacob said.

“They have to be creative, for example, should Filipino boats be equipped to ram and damage Chinese boats? Are there non-lethal weapons that can be used to repel Chinese boats and personnel when they come nearer to Filipino boats? What about deploying a helicopter operating from a ship for supply runs?”

Political analyst Edmund Tayao, president and CEO of the Political Economic Elemental Researchers and Strategists, said it was anybody’s guess as to whether the US would comply with the MDT.

“The US recently has been consistently resolute with its pronouncements of commitment but if we are to review statements before, at least with the past four presidents or so, we have been getting mixed signals.

“So we can only hope they will be consistent and in a difficult event of a shooting incident actually respond promptly on our side,” Tayao told This Week in Asia.

There were similar incidents in the past that did not elicit a firm response from the US and it was not clear what would be “the trigger” for Washington to live up to its pronouncements, he added.

American security analyst Raymond Powell, also director of SeaLight – a project based in Stanford University that aims to track maritime grey-zone activities – told This Week in Asia that Manila and Washington should begin formal consultations on the MDT immediately.

“That would offer a mechanism for formal consultation at levels senior enough to take concrete action, and would alert China that it is in danger of bringing the US deeper into this dispute,” Powell said.

China’s aggressive actions suggest it believes the Philippines would ultimately back down and the US would not intervene, according to Powell.

Suharto Ambolodto, a parliamentary member of the autonomous Muslim region in the southern Philippines, said Manila and Beijing needed to return to negotiations before it was too late.

“The question is not whether an incident has ripened invocation of the US-PH Mutual Defence Treaty. It’s what we have done to avoid the situation deteriorating. Parties should have exercised utmost caution that grey zone situations do not breach the threshold of armed conflict,” Ambolodto told This Week in Asia.

“The risk will be present and will become more imminent when the perpetrator becomes more aggressive. The parties will only know they have crossed the Rubicon when they will note that they have already mistakenly breached the threshold.”

Additional reporting by Associated Press

Malaysia’s Melaka turns to actress Fan Bingbing to reel in 1 million Chinese tourists

https://www.scmp.com/week-asia/economics/article/3267185/malaysias-melaka-turns-actress-fan-bingbing-reel-1-million-chinese-tourists?utm_source=rss_feed

In its bid to lure one million Chinese tourists this year, Malaysia’s Melaka state has turned to the tried and trusted combination of star power and local durian, deploying actress Fan Bingbing in the hope of leveraging her 63 million Weibo followers into a surge in visitor numbers.

Fan, who mysteriously disappeared for four months as allegations of tax evasion swirled around her in 2018, spent last weekend in Melaka hosted by the government to sample the spiky fruit and local desserts as it seeks to persuade a large slice of the five million Chinese visitors for the whole of Malaysia to travel to the southwestern coast.

Tourism is the third-largest contributor to Malaysia’s economy behind the manufacturing and commodities sectors and the Southeast Asian has frantically been working to raise visitor numbers back to pre-pandemic levels when the industry constituted as much as 16 per cent of the gross domestic product.

“After the Covid-19 pandemic, my mind was very unsettled, and I had not travelled abroad,” Fan, dressed in a traditional pink Nyonya kebaya dress, told reporters.

“However, post-pandemic tourism has become lively again, and people will surely choose places they have never visited before.”

With a mix of local, Portuguese, and Dutch influences, the modern day city of Melaka does well with tourists, with over 116,000 Chinese people visiting between January to April, according to authorities.

Melaka has been closely tied to the Ming dynasty in China since the 15th century, who offered the Malay sultanate of Melaka protection from other regional powers, particularly the Siamese.

This long historical tie continues to be cited today as proof of good relations between Malaysia and China.

On Wednesday, Chinese Primer Li Qiang held talks with Malaysian Prime Minister Anwar Ibrahim, as the countries marked 50 years of diplomatic ties.

Fan’s appointment echoes previous attempts by Melaka to use celebrities from Jackie Chan to Bollywood star Shah Rukh Khan in the hope of promoting Malaysia to their large fan base.

With over 1.47 million Chinese nationals visiting the country in 2023, Malaysia now hopes to entice many times that number this year, as both countries ease visa requirements between each other in commemorating the diplomatic relations milestone.

“We are positive about reaching over five million tourists from China because the current flight frequency is more than 247 flights weekly, and in terms of seat capacity, there are almost 4.9 million seats available from China to Kuala Lumpur,” Tourism Malaysia director general P. Manoharan said in April.

While lower than the Malaysian target, Chinese People’s Association for Friendship with Foreign Countries (CPAFFC) President Yang Wanming is confident that the number of Chinese tourists travelling to Malaysia by the end of 2024 will surpass the pre-pandemic figures recorded in 2019.

“It is expected that the number of Chinese tourists visiting Malaysia this year will reach 3.36 million by the end of this year compared to 3.1 million in 2019,” Malaysian national news agency Bernama quoted Yang as saying in April.

Signs of a Chinese tourism rebound were seen as early as February with the arrival of sightseers for the long Lunar New Year holiday this year surpassing that of last year by over tenfold, and twice as many as there were in 2019.

This is according to Chinese payment gateway Alipay, which reported that Malaysia is the fifth most popular destination globally for Chinese tourists, based on the number of transactions from Chinese nationals recorded in the country.

The Ant Group-operated Alipay is an affiliate of Alibaba Group Holding, owner of the South China Morning Post.

These holidaymakers also injected almost 1.5 billion ringgit (US$320 million) in spending into the Malaysian economy, according to The Malaysian Chinese Tourism Association.

Nigel Wong, the president of the Malaysian Association of Tour and Travel Agents (Matta), said the group has been seeing a rise in tourist arrivals from China, but is still waiting for the exact number from the government.

“There has been an increase ever since the relaxation of visa requirements although a substantial amount of in-kind tourists are also made up of independent travellers,” Wong told This Week in Asia.

According to him, this uptick in solo travellers is a sign that the trend in tourism from China is shifting from the usual Chinese tour group holidaymakers from previous years.

Malaysian island resorts as well as the Borneo territory of Sabah are some of the popular spots for Chinese tourists, alongside the national capital of Kuala Lumpur and the food haven destination of Penang.

Aside from short-term revellers, Chinese nationals have topped the list of applicants in the Malaysia retirement residency visa programme dubbed Malaysia My Second Home (MM2H) with over 24,000 active participants or around 44 per cent of the total.

Across the narrow Johor Strait dividing Malaysia and Singapore, the fledgling Chinese-funded property development project of Forest City is being given a potential second lease of life after being made a Special Financial Zone (SFZ) last August.

MM2H participants choosing to set up base in Forest City – alongside other special economic zones – will now enjoy a much more relaxed list of requirements which include a revised minimum age of as young as 21 years old “to spur foreign investments”.

China’s central bank vows supportive monetary policy but dismisses dramatic easing measures

https://www.scmp.com/economy/china-economy/article/3267210/chinas-central-bank-vows-supportive-monetary-policy-dismisses-dramatic-easing-measures?utm_source=rss_feed

China’s central bank governor has pledged to continue accommodative monetary policies to jolt the economy, but he also doubled down on long-maintained intentions to avoid Western-style quantitative loosening.

Speaking at the 15th Lujiazui Forum in Shanghai on Wednesday, Pan Gongsheng said the People’s Bank of China (PBOC) will avoid drastic policy changes while taking into account other objectives such as risk controls and promoting a moderate rise in consumer prices.

Meanwhile, Pan revealed for the first time that the PBOC is in talks with the finance ministry for treasury bond purchases in the secondary markets, emphasising that it will be a gradual process and that details have yet to be worked out.

“It should be noted that incorporating bond trading into the policy toolbox does not mean quantitative easing,” the governor said at the forum, which is regarded as an influential finance industry gathering and which represents Shanghai’s ambitions to become a global financial centre.

Pan said it should be viewed as a liquidity-management tool – one that will be utilised with others to foster a suitable liquidity environment.

“This process is gradual, since the pace of bond issuance, maturity structure and custody system need to be studied and optimised,” he explained.

Pan’s comments came amid market discussions about whether stronger support is needed, and about whether the central bank’s expected bond purchase would equate to quantitative loosening.

The latest key economic metrics present a mixed picture of the economy after some policy-easing measures, like those for the property sector, appear to have fallen short of their intended effects.

The Chinese economy is still struggling to regain momentum following the pandemic, and property investments contracted further in the first five months of 2024, falling by 10.1 per cent year on year.

Meanwhile, industrial output and export growth also face headwinds from the new tariffs proposed by the United States and by the European Union on Chinese products such as electric vehicles.

Gary Ng, senior economist with Natixis Corporate and Investment Bank, said it will be “a bit difficult” for China to reach its GDP target of around 5 per cent for this year.

“The estimation right now is that the economy will reach a growth rate of 4.8 per cent in 2024 if we do not see more policy measures,” he said.

The PBOC has been sticking to accommodative policies, through structural tools such as relending, open market operations and cuts to the reserve requirement ratio in recent years.

Beijing has indicated that the central bank needs to expand its policy toolbox.

The Post reported in March that President Xi Jinping had instructed the central bank to restart the treasury bond trade after a two-decade hiatus.

The PBOC has not bought bonds for years because monetary authorities did not want to fuel market speculation of a major stimulus.

Li Xuenan, a finance professor with the Cheung Kong Graduate School of Business in Beijing, said that, quantitative easing aside, the PBOC still has many tools to reflate the economy, and that Beijing remains convinced accommodative policies are adequate and will gradually pay off.

“Whether there is such a quantitative easing or not depends on the result of a combination of multiple tools,” Li said. “Beijing sees no need for big changes or big easing.

“It is also essential to prevent policy from fluctuating greatly, given the lessons we learned from the 4 trillion yuan package of 2008, when we threw in trillions in just a few months and then tightened the policy too quickly. A lot of the money released went into the property sector, while the rapid tightening brought unnecessary liquidity risks to enterprises.”

Speaking at the forum on Wednesday, Zhu Hexin, head of the State Administration of Foreign Exchange, said the management of funds of qualified foreign institutional investors will be simplified to help foreign investors invest in domestic securities.

Quirky world news: cat pain app, China robbers’ booze rethink, Japan ‘wage slave’ voyeurs

https://www.scmp.com/news/people-culture/trending-china/article/3267102/quirky-world-news-cat-pain-app-china-robbers-booze-rethink-japan-wage-slave-voyeurs?utm_source=rss_feed

It can be a weird and wonderful world, full of delights, disappointments and surprising developments.

Here, the Post highlights some strange goings on in the news around Asia.

A Japanese AI-powered app can detect cat pain through the facial expressions of the animal.

CatsMe! was developed by the tech startup Carelogy and researchers at Nihon University, who trained the artificial intelligence model using 6,000 pictures of cats.

The developers say it is more than 95 per cent accurate and expect that to improve as more feline faces are added.

Studies show that cats are very adept at hiding pain.

Only subtle changes to their behaviour occur when they feel pain, making it difficult for owners to notice.

CatsMe! aims to help fix that and allow them to take timely action.

An aging population and declining birth rate have seen pets become more important in Japanese households.

Last year, there were nearly 16 million pet cats and dogs in the country, according to the Japan Pet Food Association, outnumbering children under the age of 15.

Since its launch in 2023, CatsMe! has been used by more than 230,000 customers.

A robbery gang from the southwestern city of Chongqing in China smashed the windows of a Porsche sportscar in a garage in high-end residential community and stole 18 bottles of Maotai liquor.

However, an online search revealed that their loot was super expensive and the lightweight thieves returned the alcohol to the garage, fearing the punishment they would face, according to The Paper.

Maotai is a type of baijiu, a Chinese liquor, produced in Guizhou province in southwest China. It is renowned for its unique salty aroma and high brand value.

Older vintages of have a collectible and investment value, with a 30-year-old bottle typically worth as much as 20,000 yuan (US$2,760).

Police said the gang targeted high-end residential areas, searching cars in garages for valuables. A total of seven suspects have been detained.

A café in Japan has set up a vantage point so that customers can observe one of the country’s best known, so called salary men or “wage slaves” on their way to and from work.

Also known as shachiku, they are employees who obediently work for their company, never complain about overwork and are exploited like livestock.

The Blue Bottle Coffee outlet is on the third floor of Shinagawa Station in southern Tokyo, a well-known hub for office workers, with a daily traffic volume of up to one million.

Through its floor-to-ceiling windows, customers can enjoy their coffee while overlooking the bustling crowd of commuters.

Many foreign visitors claimed on social media that watching people commute is more enjoyable than drinking coffee.

However, some view the activity as disrespectful.

An online observer on X described the pastime as “misery tourism” a form of behaviour by which people derive pleasure from the suffering of others.

The café has now posted a notice that reads: “No photography. We know this view is irresistible, but out of respect for our fellow travellers, please refrain from photographing the commute below.”

---

Tech war: US seeks help of allies Japan and Netherlands to curb China’s AI chip progress

https://www.scmp.com/tech/tech-war/article/3267204/tech-war-us-seeks-help-allies-japan-and-netherlands-curb-chinas-ai-chip-progress?utm_source=rss_feed

A senior American official is set to visit Japan and the Netherlands to ask the two countries to add fresh restrictions on China’s semiconductor sector, including on its ability to make the high-bandwidth memory (HBM) chips needed for artificial intelligence (AI) development.

US Under Secretary of Commerce for Industry and Security Alan Estevez will press his counterparts in Tokyo and The Hague to put more limits on the activities in mainland China of Dutch supplier ASML Holding and Japan’s Tokyo Electron, according to people familiar with the matter.

Those requests, part of an ongoing dialogue with US allies, will highlight Chinese semiconductor factories developing HBM chips, said the people, asking not to be identified because the discussions are private.

ASML and Tokyo Electron machines are used to produce dynamic random access memory dies, which are stacked together to make HBM chips.

Chinese companies working on HBM chips include Wuhan Xinxin Semiconductor Manufacturing Co, a subsidiary of the mainland’s leading memory chip maker Yangtze Memory Technologies Corp, according to domestic corporate data provider Qichacha. Huawei Technologies and ChangXin Memory Technologies are also reportedly developing HBM.

The Biden administration has tried for years to limit China’s ability to buy and produce advanced semiconductors, arguing such steps are necessary for national security. Yet results have been mixed, with Huawei and others making significant advances.

The US is seeking support from allies, who have implemented their own less stringent controls, to create a more effective global blockade.

“The United States is the most critical player in the global semiconductor equipment industry, but it’s far from the only country that matters. Japan and the Netherlands are also key providers of semiconductor equipment,” said Gregory Allen, director of the Wadhwani Centre for AI and Advanced Technologies at Washington’s Centre for Strategic and International Studies. “The Netherlands and Japan have restrictions on exports but not on servicing, and that’s a critical limitation in the overall technology controls architecture.”

Estevez is expected to repeat a standing US request for the two countries to tighten restrictions on ASML and Tokyo Electron’s ability to maintain and repair their other advanced chip-making equipment in China as well, the people said. The US has already imposed such restrictions on those companies’ American rivals, such as Applied Materials and Lam Research Corp.

The US delegation’s visit to the Netherlands is expected to take place after the new Dutch cabinet is sworn in the first week of July. Reinette Klever of far-right lawmaker Geert Wilders’ Freedom Party is set to become the minister for foreign trade and development aid, a role that typically oversees the country’s export control policies.

The Dutch and Japanese governments have been resisting the US pressure, people familiar with the matter said earlier. The two countries want more time to evaluate the impact of current export bans on high-end chip-making equipment and to see the outcome of the US presidential election in November.

It is uncertain how the new Dutch government led by Wilders will react to US demands for additional measures. Klever is co-founder of a far-right television channel Ongehoord Nederland, which stirred controversy for its pro-Russian reporting and climate-change scepticism.

The outgoing Foreign Trade Minister Liesje Schreinemacher paid a farewell visit to the US last week to lobby for the interests of ASML. Dutch King Willem-Alexander joined Schreinemacher in a meeting with New York Governor Kathy Hochul.

A representative of the US Commerce Department’s Bureau of Industry and Security declined to comment. A spokesman for the Dutch foreign trade ministry declined to comment. Japan’s Ministry of Economy, Trade and Industry did not respond to requests for comment.

HBM chips are an indispensable part of the AI hardware ecosystem because they speed up access to memory, helping AI development. AI accelerators, made by Nvidia Corp and Advanced Micro Devices, need to be bundled with HBM chips for them to work. US officials are having early-stage conversations about restricting the export of HBM chips, Bloomberg has reported.

SK Hynix is the world’s leading producer of HBM chips, with Samsung Electronics and US-based Micron Technology pressing to catch up. SK Hynix relies on equipment from ASML and Tokyo Electron, according to Bloomberg’s supply chain data.

South Korean equipment makers including Hanmi Semiconductor Co and Hanwha Precision Machinery Co also play a critical role in the HBM supply chain. Earlier this year, Washington asked Seoul to restrict the flow of equipment and technologies for making high-end logic and memory chips to China, Bloomberg News has reported.

Chinese companies can no longer buy the most advanced AI chips from Nvidia, but Huawei is developing its own AI accelerators, called Ascend. It is unclear which company or companies are providing advanced memory chips to Huawei. SK Hynix, Samsung and Micron all stopped supplying Huawei with chips after the US tightened sanctions against the Chinese company in 2020.

Officials in Washington have also grown worried about China’s own progress in chip-making equipment. Lawmakers on Tuesday introduced a bipartisan bill to ban companies that receive US funding for semiconductor factories from purchasing Chinese tools for those facilities.

China says US tip led to suspect, a ‘prime example’ of cooperation amid fentanyl crisis

https://www.scmp.com/news/china/diplomacy/article/3267202/china-says-us-tip-led-suspect-prime-example-cooperation-amid-fentanyl-crisis?utm_source=rss_feed

In what they called a “prime example” of bilateral anti-narcotics cooperation, Chinese authorities have detained a suspect on drugs and money laundering charges using a tip-off from Washington.

News of the detention came as Beijing reiterated its “utmost” support for the US to solve the fentanyl crisis that it said was not “caused by China”.

Investigations are under way after Chinese police “following a US clue” detained a suspect surnamed Tong for taking part in “illegal foreign exchange transactions”, according to a report from state news agency Xinhua on Wednesday.

Tong allegedly opened a car showroom in the US in 2017 and offered currency exchange services to his customers. The operation later “evolved into criminal activities” that included the illegal trade of foreign exchange, China’s public security ministry said, according to Xinhua.

The ministry, which oversees all the country’s law enforcement officers, called the case a “prime example of recent China-US anti-drug cooperation”.

The news came days after China’s ambassador to Washington, Xie Feng, held talks with Rahul Gupta, director of the White House Office of National Drug Control Policy, who was in Beijing on Wednesday.

On Friday, the two sides discussed promoting counternarcotics cooperation on the basis of “mutual respect, equality and mutual benefit”, according to a statement from the Chinese embassy.

The US’ opioid-fuelled drug crisis has led to the deaths of more than 100,000 Americans a year for the past few years and continues to worsen, according to the Centres for Disease Control and Prevention.

“The fentanyl problem is not China’s problem, nor was it caused by China. But out of humanitarian considerations, China has been doing its utmost to help the US side deal with the fentanyl issue,” said Xie, adding that his country had “made great efforts” and “demonstrated its sincerity for cooperation”.

The synthetic drug fentanyl is among the most potent opioids – up to 100 and 50 times stronger than morphine and heroin, respectively. It is often added to other drugs and used unknowingly.

“The US side needs to move in the same direction with China, take China’s concerns seriously and earnestly address them, so as to create a favourable atmosphere for cooperation,” Xie said.

The House Select Committee on the Chinese Communist Party, which has the stated goal of building consensus on and defending the US against “the threat posed by [Beijing]”, has accused China of “directly” subsidising those who make and export fentanyl.

The panel in April alleged that Beijing encouraged the production of precursor chemicals by providing “monetary grants and awards”, including state tax rebates and other financial incentives after the product is exported.

The Chinese embassy in turn highlighted Beijing’s anti-drug campaigns, investigations and joint efforts with Washington.

A counternarcotics working group was launched in January, two months after a meeting between Chinese President Xi Jinping and his US counterpart Joe Biden hailed “breakthroughs” in bilateral ties. Deputy homeland security adviser Jen Daskal led an inter-agency delegation to Beijing for the inauguration.

China KOL who claims to be champion of working classes in videos exposed as ‘heartless boss’ in real life

https://www.scmp.com/news/people-culture/china-personalities/article/3264519/china-kol-who-claims-be-champion-working-classes-videos-exposed-heartless-boss-real-life?utm_source=rss_feed

A social media influencer in China with 16 million followers – famous for her portrayal of a nanny speaking up for the working classes – has been exposed as a hypocritical and heartless boss in real life.

Known online as Seven Gorillas, or Qi Ke Xingxing in Mandarin, the influencer, based in central China’s Hubei province, plays a rebellious nanny in the online short video series Reborn: I Became a Nanny in a Feel-Good Drama.

Her character, Wang Ma, exposes workplace injustices and promotes equality, while satirising situations in which workers are exploited and oppressed by their bosses.

Her portrayal is viewed by many workers as giving a voice to their struggles in real life.

Since its debut in March, the series has released 21 episodes, helping the influencer gain about 1 million followers within a month of its debut, while also significantly boosting the profits of her multichannel network company, Wild Culture.

According to data from Xingtu, a prominent China influencer marketing platform, the company’s 20-second advertising videos are priced at 450,000 yuan (US$63,000) while those from 21-60 seconds and longer than one minute are priced at 500,000 yuan and 600,000 yuan, respectively.

However, Wild Culture was recently exposed for exploiting its staff.

It was revealed that core positions recruited online, such as directors, are paid only 4,000 yuan (US$560) a month and the company does not provide social insurance during the probationary period.

Additionally, employees had to bring their own computers to work, extras appearing in short videos were unpaid and the company followed a schedule of alternating six and five-day working weeks.

On May 26, Wild Culture responded and acknowledged the allegations, stating that it would rectify the situation.

The company said it would implement a double weekend shift system so employees who work on Saturday and Sunday have two rest days during the week.

It also said it would provide social insurance during the probationary period.

The company also announced an increase in the minimum salary for all positions.

“For both current and newly hired employees, the minimum salary will be no less than 6,000 yuan (US$850). Additionally, from now on, the company will only recruit extras through formal channels and ensure they are paid on time.”

Social media observers have called out what they call hypocrisy.

“Using interviews to exploit applicants to write scripts for her without hiring them was the worst part. The other issues are just the final straw,” one person said.

“Offering two-day weekends and immediate insurance upon hiring are basic rights for workers, yet they’re being touted as highlights. Ridiculous!” said another.

“Exploiting her employees – what a disgraceful display,” a third person wrote.

---

Malaysia banks on China’s love of mala hotpot to spice up palm oil exports

https://www.scmp.com/week-asia/politics/article/3267184/malaysia-banks-chinas-love-mala-hotpot-spice-palm-oil-exports?utm_source=rss_feed

Malaysia’s palm oil industry is hoping to get a fresh kick from China’s insatiable appetite for mala hotpot as the world’s second-largest producer of the vegetable oil looks to diversify markets for a sector that faces possible sanctions under deforestation rules imposed by the European Union.

On Wednesday, during Chinese Premier Li Qiang’s first official visit to Malaysia to coincide with the 50th anniversary of diplomatic ties, the two countries renewed a five-year economic and trade pact and expanded cooperation across sectors such as green technology and cross-border crime.

China is the second-largest importer of Malaysian palm oil, buying last year nearly 3.1 million tonnes of the controversial commodity that environmental groups have said is responsible for mass deforestation and the destruction of the habitat of critically endangered animals such as the orangutan.

But Malaysia thinks there is plenty more room to grow demand in China, which counted nearly 400,000 restaurants across the country that specialise in Sichuan hotpot in 2021, according to the official data.

The government has cooked up a plan to convince the hundreds of thousands of hotpot operators in China to consider palm oil as an alternative base for the tongue-numbing broth, which is often made from beef tallow and can be so spicy that some versions purportedly cause hallucinations.

“Palm oil is not only abundant but also versatile and stable under high heat, which is ideal for the intense cooking process of mala hotpot,” Malaysia’s Plantation and Commodities Deputy Minister Chan Foong Hin told This Week in Asia.

Chan said the government had already set up partnerships with Chinese enterprises in a bid to embed palm oil as deeply as possible in the hotpot industry supply chain, while actively promoting the benefits of using palm oil in China’s culinary traditions.

“The feedback so far has been very positive, indicating a strong potential for growth in this market segment,” he said.

Malaysia’s hotpot push began last year, when domestic restaurant operators and commercial producers of the mala hotpot soup base sought alternative fats to offset a shortage in beef tallow, which is traditionally used due to its flavour and texture.

The shift coincided with complaints filed to the World Trade Organization by Malaysia and Indonesia, the world’s largest producer of palm oil, against the EU’s deforestation regulation that the two nations said placed unfair restrictions on palm oil in favour of vegetable oils grown in Europe.

The WTO in March ruled in favour of the EU’s move to exclude palm oil as a renewable source of biofuel by 2030 under its deforestation regulation, which was formally adopted in 2021 to drop imports of crops grown on deforested land or where there is a high risk they would displace food crops.

Once in full effect, the EU’s regulation would ban the import of vegetable oils deemed to have contributed to recent deforestation. Malaysia and Indonesia have said that it places unreasonable requirements on smallholders, who can ill afford to implement technology such as GPS tracing on their produce.

Malaysia has argued that it no longer allows land clearing or deforestation to expand oil palm plantations in the country.

In 2015, it launched its Malaysian Sustainable Palm Oil (MSPO) certification to promote sustainable practices in the industry and counter the deforestation narrative that has been a common thread in diplomatic and public discussions in Europe.

The EU remains a major market for Malaysian palm oil and palm oil products.

The region imported nearly 2.8 million tonnes in 2023, but demand has seen a steady decline as EU member states face sustained public resistance to the ubiquitous oil, used in everything from making lipsticks and soaps to pastries and the popular Nutella spread.

Malaysia was actively promoting the use of MSPO-certified palm oil and palm oil products to China, deputy minister Chan said, adding that the now-mandatory certification for Malaysian-produced palm oil showed “Malaysia’s commitment to sustainable palm oil production”.

“China has shown a positive view of MSPO and is accepting imports of MSPO-certified products. More Chinese companies are expected to import MSPO-certified palm oil products in the future,” he said.

China’s Li Qiang opens Malaysia visit ‘ready’ to build closer economic, development ties

https://www.scmp.com/news/china/diplomacy/article/3267194/chinas-li-qiang-opens-malaysia-visit-ready-build-closer-ties-economic-development-ties?utm_source=rss_feed

Chinese Premier Li Qiang hailed the “sound momentum of growth” in China-Malaysia relations over the past five decades, as he embarked on his three-day trip to the Southeast Asian country.

In a statement released on his arrival in Kuala Lumpur on Tuesday evening, Beijing’s No 2 official also praised the “consolidated strategic trust” between the two neighbours, which are celebrating 50 years of diplomatic ties.

“China is ready to work with Malaysia … to further synergise development strategies, deepen mutually beneficial cooperation, and increase exchanges and mutual learning between civilisations,” Li said.

It is Li’s first visit to Malaysia since he took office in March last year, and is part of high-level visits between the two countries as part of the 50th anniversary celebrations.

Beijing has also been forging closer bonds with regional capitals like Kuala Lumpur which have refused to pick a side in the geopolitical rivalry between the US and China, instead signalling a readiness to expand interactions with the world’s No 2 economy.

In an exclusive interview with the South China Morning Post ahead of Li’s visit, Malaysian Prime Minister Anwar Ibrahim said it made sense for Malaysia to carry on doing business with China.

Anwar stressed that he had neither any intention of antagonising the US nor of being swayed by the unilateral action of one country against another, saying that it was no longer about neocolonialism or colonial rule. “We are an independent nation,” he said.

“If they have compelling evidence to suggest that any company or any country is causing mischief, then all right. They should adduce evidence … But otherwise, we will not succumb to that sort of pressure.”

The Chinese foreign ministry commended Anwar on Monday for his remarks and said China “firmly supports” Malaysia and the other Association of Southeast Asian Nations members in “upholding their national strategic independence”.

On Sunday, Chinese news outlet Guancha aired an interview with Anwar in which he announced that Malaysia intends to join the Beijing-backed Brics bloc of emerging economies.

“We have made a decision. We are placing the formal procedures soon,” Anwar said. Malaysia is the latest of a growing number of countries to join the bloc’s original members Brazil, Russia, India, China and South Africa.

Li was personally welcomed by Anwar on Wednesday his itinerary also includes a meeting with Malaysia’s King Ibrahim Iskandar, according to details released by the Malaysian foreign ministry on Tuesday.

Li and Anwar also witnessed the exchange of several cooperation documents, including the export of Malaysian agri-commodities to China.

According to the Malaysian statement, other cooperation documents covered areas such as the digital economy, green development, tourism, housing and urban development, higher education, science and technology.

Li will also attend a lunch with representatives of the business community from the two countries during his visit, Malaysia’s foreign ministry said.

Trade between China and Malaysia grew 11.4 per cent in both imports and exports in the first five months of 2024 from the same period a year earlier in US dollar terms, according to Chinese customs data.

China was Malaysia’s largest trading partner for the 15th straight year in 2023, while the US retained its spot as the Southeast Asian nation’s top investment partner over the same period.

Malaysia is China’s second largest trading partner and its largest source of imports among the Asean nations. Kuala Lumpur will take over the rotating chair of the 10-member bloc next year.

While in Malaysia, Li will also attend the groundbreaking ceremony for the East Coast Rail Link (ECRL) in the state of Selangor’s Gombak district, part of Beijing’s massive infrastructure programme the Belt and Road Initiative.

Malaysian authorities expect the 665km (413 miles) railway to be completed by the end of 2026 and operating from January 2027, forming a major transport artery between the country’s east and west coasts.

In his arrival statement on Tuesday evening, Li called on the two countries to take the jubilee celebrations as “a new starting point” to build a “community with a shared future” – a characterisation of the relationship agreed by China and Malaysia last year.

Li arrived in Kuala Lumpur on the last leg of a week-long tour which included New Zealand and a four-day visit to Australia, which wrapped up on Tuesday.

While in Australia, Li visited the Perth plant of Chinese-controlled Tianqi Lithium, as well as a research hub belonging to the Australian mining company Fortescue, which is also headquartered in the city.

Addressing a round table of Chinese and Australian business representatives in Perth on Tuesday, Li deemed the two countries as “a close community of shared interests” and called for them to work together to create a “competitive” new energy supply chain.

China’s technological advantages in new energy vehicles and lithium batteries are complementary to Australia’s richness in key minerals resources, he said.

Philippines says navy personnel injured in confrontation with China coast guard

https://www.theguardian.com/world/article/2024/jun/19/philippines-china-clash-south-sea-navy-injuries-coast-guard-second-thomas-shoal-severe-thumb

At least eight Filipino navy personnel were injured this week – including one who lost a thumb – in a confrontation with the Chinese coast guard while, delivering food and other supplies to a military outpost at a disputed South China Sea shoal, Philippine security officials said.

The Philippine foreign ministry denounced what it described as China’s “illegal and aggressive” actions, adding that “dialogue and consultation” could not be achieved if “China’s words do not match their actions on the waters.”

The shoal is occupied by a small Philippine navy contingent on board a long-grounded warship – the Sierra Madre – that has been closely monitored by China’s coast guard and navy in a years-long territorial standoff. China has become increasingly assertive in pressing its claim to virtually the entire South China Sea, which has led to a rising number of direct conflicts with other countries in the region, most notably the Philippines and Vietnam.

Two Philippine security officials with knowledge of the supply mission at the shoal told the Associated Press that on Monday, two rubber boats staffed by Filipino navy personnel had approached the Sierra Madre to deliver fresh supplies when several Chinese coast guard personnel on speedboats arrived to disrupt the mission, sparking a scuffle and collisions.

At least eight of the Filipinos were injured, including one who lost a thumb, said one of the two officials, who spoke on condition of anonymity because they were under orders not to discuss the high-seas confrontation publicly.

Five of the injured sailors were rescued by one of two Philippine coast guard patrol ships that were waiting at a distance to back up the navy’s supply mission at the shoal. The two rubber supply boats were towed away by Chinese coast guard personnel and then abandoned after being damaged and emptied of their contents, the two officials said.

The Chinese coast guard gave a different version of the events and said the Philippines “is entirely responsible for this.” It said a Philippine vessel “ignored China’s repeated solemn warnings … and dangerously approached a Chinese vessel in normal navigation in an unprofessional manner, resulting in a collision.”

China’s foreign ministry said the supply ship was accompanied by two Philippine speedboats that were attempting to deliver construction materials and other supplies to the Sierra Madre. It described the Chinese coast guard’s actions as “professional, restrained, reasonable and lawful.”

In response to the incident, the US warned that it was obliged to defend the Philippines, a treaty ally.

Several other incidents have occurred in recent months near Second Thomas Shoal, which is less than 370km from the Philippine coast and is where the Sierra Madre, now encrusted with rust, was deliberately grounded in 1999 to create a territorial outpost.

The ship remains an actively commissioned military vessel, meaning an attack on it could be considered by the Philippines as an act of war.

A new Chinese law which took effect Saturday authorises its coast guard to seize foreign ships “that illegally enter China’s territorial waters” and to detain foreign crews for up to 60 days. The law renewed a reference to 2021 legislation that says China’s coast guard can fire upon foreign ships if necessary.

South China Sea: will Beijing make Manila ‘pay a price’ for its latest territorial claim?

https://www.scmp.com/news/china/diplomacy/article/3267125/south-china-sea-will-beijing-make-manila-pay-price-its-latest-territorial-claim?utm_source=rss_feed

A bid by the Philippines to have the United Nations formally recognise the extent of its continental seabed in parts of the disputed South China Sea could encourage similar claims from rival claimant states, observers said.

The UN might not give what Manila wants, but the action will add layers of complexity to the already tangled regional disputes and possibly induce tougher countermeasures from Beijing, they added.

The Philippines last week filed a submission to the UN Commission on the Limits of the Continental Shelf (CLCS), seeking confirmation on the extent of its undersea continental seabed in the West Palawan Region facing the South China Sea, according to Manila’s foreign ministry.

“The seabed and the subsoil extending from our archipelago up to the maximum extent allowed by Unclos hold significant potential resources that will benefit our nation and our people for generations to come,” Philippine Foreign Assistant Secretary Marshall Louis Alferez said in a statement.

Unclos is the 1982 United Nations Convention on the Law of the Sea, which grants exclusive rights to exploit natural resources in continental shelf to a coastal state.

The move by the Philippines drew swift opposition from Beijing, which urged the commission not to review Manila’s submission as it involved disputed maritime space.

China’s foreign ministry spokesperson Lin Jian said on Monday that the commission should not consider or qualify the submission by the Philippines if it involves delimitation of disputed waters, in line with the rules of procedure of the CLCS.

Lin said Beijing was still gathering information, but Manila’s “unilateral submission” of an extended continental shelf infringes upon China’s sovereign rights and jurisdiction.

Maritime affairs experts held similar views, predicting that Manila’s bid was unlikely to succeed, and Beijing would view the move as a legal challenge that further complicated the South China Sea disputes.

“It seems unlikely that CLCS will be able to validate any such claim … the Commission has, as a rule, avoided making any delimitation decisions when there are outstanding jurisdictional or sovereignty disputes,” said Isaac Kardon, senior fellow for China studies at the Carnegie Endowment for International Peace.

Beijing would see the claim as “another legal and political challenge from Manila” just like the 2016 South China Sea arbitration, and view it as an attempt to undermine China’s extensive claims using a UN institutional approach, he added.

Mainland China claims almost the entire South China Sea, including parts claimed by the Philippines, Brunei, Malaysia, Taiwan and Vietnam.

In 2016, an international tribunal ruled in favour of the Philippines, dismissing China’s broad claims as having no legal basis. However, Beijing has rejected and criticised the ruling.

Experts said that even though the details of Manila’s submission had not yet been made public, its continental shelf claims might overlap with those of other coastal states in the South China Sea, and could potentially propel other claimant states to adopt similar tactics.

“The Philippines’ submission could be a potential risk that sets a precedent for other claimant states, and they may file similar ECS (extended continental shelf) submissions to assert their rights,” said Ding Duo, an associate research fellow at the National Institute for South China Sea Studies in Hainan.

He added that claimant countries could file their submissions separately, but joint submissions were also possible, and either situation would further complicate the South China Sea disputes.

“This will make the dispute even more complex and harder to resolve, and introduces a new point of contention for how Beijing and Manila should properly manage and handle their differences in the South China Sea,” Ding said.

“In a nutshell, Manila’s doings add more complexity to the already complicated South China Sea disputes, rather than simplifying it.”

But Lucio Pitlo III, the president of the Philippine Association for Chinese Studies, said the Philippines’ latest move and the 2016 arbitration were part of its efforts to use international law to protect its maritime claims.

“Both will affect the interests of other disputants in the semi-enclosed sea, although officially, the 2016 ruling only binds Manila and Beijing, a judgment China continues to reject. In like manner, a unilateral ECS submission may also impact the interests of other littoral states,” he said.

Maritime observers predicted that Beijing would retaliate against Manila with tough operational and diplomatic measures.

“China might also increase the intensity of their interdictions at Second Thomas Shoal or escalate elsewhere in the South China Sea against Philippines interests,” Carnegie’s Kardon said, adding that China might also choose to publish baselines around the Spratlys to refute the Philippines’ claims.

Baselines are an important concept in defining maritime boundaries and asserting jurisdictions over resources, which act as the starting points from which a country’s territorial sea, exclusive economic zone, and continental shelf are measured.

Beijing could opt for stronger countermeasures to safeguard its rights at sea, especially during stand-offs with Philippine vessels in the South China Sea, according to Ding.

“Beijing believes it is crucial to make Manila pay a price for its actions, or else it will continue to provoke and hit the nerve repeatedly,” he said.

The latest clash happened on Monday when the Philippines sent another resupply mission to an ageing ship that was deliberately grounded on the Second Thomas Shoal to assert Manila claims. Beijing said Manila had attempted to deliver construction supplies, which China has ruled unacceptable.

The Chinese coastguard said on Tuesday that it exerted control measures over the Philippine vessels during Monday’s collision, such as issuing warnings, boarding the Philippine ship and conducting inspections.

Ding said the move was a clear demonstration of Beijing’s resolve to implement effective control measures in response to the Philippines’ actions.

Quoting an anonymous source, the Philippine media reported that China Coast Guard towed one of the Philippines’ boats and confiscated the crew’s firearms during the Monday run-in, while also injuring some Filipino crew members.

---

IMF unveils plans for China-based regional centre in Shanghai

https://www.scmp.com/economy/china-economy/article/3267154/imf-unveils-plans-china-based-regional-centre-shanghai?utm_source=rss_feed

The International Monetary Fund (IMF) is opening a regional centre in Shanghai to strengthen its engagement and partnership in the Asia-Pacific region, it announced on Wednesday.

The Shanghai Regional Centre will serve as a hub to promote research that can inform policies in areas of interest to emerging market and middle-income countries, according to an IMF press release.

The centre will help deepen the IMF’s dialogue with member countries and other stakeholders in the region, including international financial institutions, academics, think-tanks, civil society organisations and the private sector, it said.

The IMF announcement was made on the first day of the annual Lujiazui Forum in Shanghai, and ahead of the Central Committee of China’s Communist Party’s third plenum in July – a highly anticipated political gathering that will roll out plans for the country’s economic development in the next decade.

The Lujiazui Forum is in its 15th edition and is regarded as an influential finance industry gathering.

“We welcome the establishment of the IMF Regional Centre in Shanghai,” said Pan Gongsheng, governor of the People’s Bank of China, at the launch ceremony.

“We believe the Shanghai Regional Centre will deepen cooperation between the IMF and China, enhance macroeconomic policy exchange and coordination among the Asia-Pacific countries, and support regional and global financial stability.”

IMF managing director Kristalina Georgieva welcomed “this important initiative with the People’s Bank of China to establish the Shanghai Regional Centre”.

“The centre will further strengthen the IMF’s engagement in the dynamic Asia-Pacific region, deepen our understanding of perspectives from member countries, and foster international economic cooperation,” she said.

More to follow…

---

China’s new Shenzhen-Zhongshan mega link carries high hopes for Greater Bay Area economy

https://www.scmp.com/news/china/politics/article/3267100/chinas-new-shenzhen-zhongshan-mega-link-carries-high-hopes-greater-bay-area-economy?utm_source=rss_feed

After seven years of construction, a massive connector spanning the Pearl River Delta – known as the Shenzhen-Zhongshan link – the newest component of a sprawling infrastructure plan for the Greater Bay Area, is due to open at the end of June, with hopes that it will stimulate closer economic integration in the mega city cluster.

The 24km (15 mile) cross-sea span, which will connect the city of Zhongshan with the tech hub of Shenzhen across the Pearl River estuary, comprises two bridges, two artificial islands and one undersea tunnel that is 6.8km long and 46 meters (151 feet) wide, making it the world’s largest and widest undersea steel shell concrete tube tunnel, according to the Shenzhen government website.

The Lingdingyang Bridge, a key part of the link, with a main span of 1,666 meters, is the world’s largest offshore steel box girder suspension bridge, the website said.

The two-way, eight-lane mega project is expected to shorten the drive from two hours to less than 30 minutes between the two cities, according to an article this month in China Highway, a magazine published by China Communications Construction Group.

The connector is situated between two other major bridges – the Humen Bridge 30km to the north linking Guangzhou and Dongguan, and the Hong Kong-Zhuhai-Macau Bridge 31km to the south.

The 44.69 billion yuan (US$6.16 billion) project is expected to be a key link in the Greater Bay Area, a mega city plan designed on the scale of similar metropolitan areas in Tokyo Bay, New York and San Francisco.

The Greater Bay Area is one of the world’s most densely populated bay areas, and consists of the special administrative regions of Hong Kong and Macau and nine major cities in the souther province of Guangdong: Guangzhou, Foshan, Zhaoqing, Shenzhen, Dongguan, Huizhou, Zhuhai, Zhongshan and Jiangmen.

In 2023, the region generated 14 trillion yuan (US$1.93 trillion) in economic output, equivalent to 11 per cent of China’s Gross Domestic Product (GDP).

Shenzhen is considered China’s Silicon Valley and is home to tech and manufacturing giants including DJI, Tencent and BYD, with many manufacturing plants located in the district of Baoan, the starting point of the bridge in Shenzhen.

Baoan has an average of 18 hi-tech enterprises per square km, 15 times the density of the rest of the Greater Bay Area, state broadcaster CCTV reported last year.

Zhongshan, at the other end of the bridge, is a traditional manufacturing city that is expected to directly benefit from the new link by providing a cheaper option to companies and industries wishing to locate away from the more expensive area of Shenzhen.

The city has floated the idea of a link connecting it to Shenzhen since the 1990s, according to a report by Zhongshan Daily last November.

The project was approved by the National Development and Reform Commission in late 2015 and construction started one year later.

Aside from improved connectivity within the Greater Bay Area, the link is expected to help address the imbalance in economic development between the eastern and western parts of the Pearl River Delta.

At the end of last year, the total GDP on the side of the Pearl River Delta, represented by Shenzhen and Dongguan, was five times that of the west side bank, represented by Zhongshan and Zhuhai, Hong Kong Commercial Daily said in a report on May 31.

---

Taiwan firms keen to explore mainland Chinese opportunities despite political tensions, say industry representatives

https://www.scmp.com/news/china/politics/article/3267120/taiwan-firms-keen-explore-mainland-chinese-opportunities-despite-political-tensions-say-industry?utm_source=rss_feed

Taiwanese entrepreneurs attending a seminar in mainland China have said they are still keen to do business there but warned that strained relations between Beijing and Taipei are having an impact.

Taiwan has gradually reduced economic dependence on mainland China in recent years, while the United States became the island’s main export market in the first quarter this year and Taiwanese investments approved for mainland China fell to a 22-year low in 2023.

But some tech industry figures believe Taiwan can still tap into a competitive edge across the strait.

Spencer Liang, honorary chairman of the Taiwan Internet of Things Association, said more Taiwanese businesses have purchased high-end but cheap electronic components such as chip sensors from the mainland in recent years.

There has been frequent cooperation, especially among small and medium-size enterprises in the Internet of Things sector, Liang said in an interview on the sidelines of the Straits Forum in Xiamen.

The Internet of Things involves networks that connect sensors embedded in devices ranging from fitness trackers to manufacturing equipment.

He said that given the nature of the industry “there are many vertically integrated companies … that have benefited from the complementary technologies from both sides of the strait”.

He said the industry “would be happy to” get involved in rapidly growing mainland industries such as electric vehicles and drones, but he admitted it would be difficult to develop supply chains involving sensitive technologies.

The industry is also expected to be affected by the mainland’s decision to halt preferential tariffs for some Taiwanese goods and “the impact would be especially huge on hardware, end products as the profit margin competition is keen,” Liang added.

Last month the mainland authorities announced they would suspend tariff cuts agreed under the Cross-Strait Economic Cooperation Framework Agreement in response to Taiwanese leader William Lai Ching-te’s inaugural speech in May, which Beijing denounced as a “confession of independence”.

The decision, which came into effect on Saturday, affects dozens of chemicals and related goods, lithium-ion batteries and machine tools.

Beijing sees Taiwan as part of China that must be reunited with the mainland – by force if necessary. Taiwan is not recognised as an independent state by most countries, including its main arms supplier the US, although Washington is opposed to any attempt to take the island by force.

However, Beijing has continued efforts to woo Taiwanese entrepreneurs.

Taiwanese agricultural businesses – known for their advanced cultivation and breeding techniques – have also been active on the mainland, but the investments are lopsided, according to Tom Hsu Tao, a supervisory board member of the Association of Taiwan Investment Enterprises on the Mainland.

“There are many agricultural cooperation projects between the two sides of the Taiwan Strait, … [but mostly between] Taiwanese farmers coming to China to develop and mainland farmers, or with agricultural groups.”

Hsu said Taiwan was not open to mainland investment in Taiwan agricultural projects.

Taiwan’s agricultural exports, originally highly dependent on Chinese consumers, plummeted since 2021 as Beijing began a series of food bans ranging from fruits to fish.

Despite trade and investment restrictions, Hsu, also the founder of a winery in Hebei province, said there is potential for technological cooperation said Taiwan should “work harder on” the use of artificial intelligence for quality control and monitoring to boost productivity.

But he said formal interactions between research and academic institutions across the strait are limited.

The ongoing tensions have also lowered hopes for the resumption of cross-strait tourism.

Liu Chi-fang, a village chief in Kaohsiung City, said it is unlikely that mainland residents will be allowed to travel to the island during Lai’s term in office.

“I do not think he thinks he cares about the tourism industry in his policy direction,” said Liu, adding he thought there was little discussion within the government about the impact of reopening tourism with the mainland.

Mainland tourists – once the largest group of travellers to Taiwan – need the approval of both mainland and Taiwanese authorities to travel there.

Beijing first allowed individual mainlanders to travel to Taiwan as tourists in 2011 but suspended travel to the island by individuals in 2019, citing cross-strait relations as the reason.

Beijing in April announced plans to allow groups from Fujian province to visit, but postponed a test tour scheduled in June until further notice.

The Straits Forum, which Beijing has described as the biggest platform for cross-strait people-to-people exchanges, is being held in the Fujianese city of Xiamen, which lies opposite Taiwan.

China has renamed hundreds of Uyghur villages and towns, say human rights groups

https://www.theguardian.com/world/article/2024/jun/19/china-has-renamed-hundreds-of-uyghur-villages-and-towns-say-human-rights-groups

Hundreds of Uyghur villages and towns have been renamed by Chinese authorities to remove religious or cultural references, with many replaced by names reflecting Communist party ideology, a report has found.

Research published on Wednesday by Human Rights Watch and the Norway-based organisation Uyghur Hjelp documents about 630 communities that have been renamed in this way by the government, mostly during the height of a crackdown on Uyghurs that several governments and human rights bodies have called a genocide.

The new names removing religious, historical or cultural references are among thousands of otherwise benign name changes between 2009 and 2023. According to the two organisations that conducted the research, the apparently political changes, which mostly occurred in 2017-19, targeted three broad categories. Any mentions of religion or Uyghur cultural practices were removed, including terms such as hoja, a title for a Sufi religious teacher, which was removed from at least 25 village names; haniqa, a type of Sufi religious building taken from 10 village names; and mazar, meaning shrine, which was removed from at least 41 village names.

The authorities also changed names that referenced Uyghur kingdoms, republics or leaders from before 1949 when the People’s Republic of China was founded. The report said there were no longer any villages in Xinjiang with the word “xelpe” or “khalifa” (ruler), or “meschit” (mosque) in their names.

Uyghurs are a Turkic ethnic group mainly found in Xinjiang. They have long had a fractious relationship with Beijing, which accuses many of them of wanting to break away from Chinese rule.

The report said the new village names were typically in Mandarin Chinese and expressed a “positive sentiment, which the government wants Uyghurs to embrace and express under the Chinese leadership”.

In 2018, Aq Meschit (White Mosque) village, in Akto County, was renamed Unity village, the report said. In 2022 the Karakax County village of Dutar – named for a Uyghur traditional instrument – was renamed Red Flag village.

“This is part of the broader efforts by the Chinese government to conflate Islam with terrorism,” said Elaine Pearson, the director of Human Rights Watch’s Asia division. “They see anything Islamic or Arabic sounding as threatening, so they renamed these things to be more in mind with [Chinese Communist party] ideology.

“We’ve seen this also in the way mosques have been demolished, changed, altered. We’ve seen many different examples in the way the Chinese government uses this to violate aspects of free expression and cultural identity and religious freedom.”

Rayhan Asat, a Uyghur activist whose brother disappeared into the Xinjiang detention regime in 2016, told the Guardian the changes were part of Beijing’s “overarching objective to eradicate the Uyghur culture and people entirely and create a system of apartheid”.

“The names of their villages serve not only as historical records but also embody the community’s ties, distinct town culture, and values. The state-imposed erasure and replacement policy aimed to sever Uyghurs from our history, culture, and civilisation.”

The practice of renaming locations – like many of the policies imposed in Xinjiang – was first done in Tibet. In 2023 the Chinese government began referring to Tibet as “Xizang” on official documents. Since 2017 it has also issued official Chinese names for locations in Arunachal Pradesh, the disputed Himalayan region where China claims territory.

In Tibet and Xinjiang the increasingly militarised and surveilled environment makes it extremely difficult for information to come out about human rights abuses, and the Chinese government rarely responds to requests for information.

Pearson said: “Part of the reason we know this is happening is that in one case a woman released from a re-education facility tried to get a bus ticket home but found her village didn’t exist any more.”

Since launching its “strike hard” campaign against Uyghur and other Turkic Muslims in 2014 in the name of counter-terrorism, the Chinese government has arbitrarily detained millions of people, in re-education camps and jails, criminalising religious acts such as growing beards or reading the Qur’an. Others have been persecuted for having contact with the international diaspora or travelling overseas.

There is evidence of enforced mass labour transfer programmes, enforced social re-education, torture and enforced disappearances, and coercive reproductive control.

In 2021, Human Rights Watch said the Chinese government had committed crimes against humanity. In 2022 the UN high commissioner for human rights determined that the Chinese government had been committing long-running human rights abuses, probably to the level of crimes against humanity.

Some governments have designated its acts as genocide. China denies the charges, claiming that its policies in Xinjiang are related to counter-terrorism and extremist threats.

China’s trade-in for homes scheme misses mark as middle class prefers to save, not spend

https://www.scmp.com/economy/china-economy/article/3266424/chinas-trade-homes-scheme-misses-mark-middle-class-prefers-save-not-spend?utm_source=rss_feed

When Crystal Zhang walked into a showroom to look at the latest electric vehicles (EV) last month, she was told by the sales agents that she would be eligible for an 8,000 yuan (US$1,104) subsidy if she sold her old car first.

It was a tempting offer. New-energy vehicles are of keen interest to Zhang and a topic she and her friends love to talk about. So without hesitation, she decided to sell her petrol-fuelled Mercedes-Benz that she had driven for seven years and spend 280,000 yuan on a Nio, a leading Chinese EV brand.

“It’s cooler to own the latest model of a new-energy vehicle than an imported petrol car,” said Zhang, who is the owner of a high-end restaurant in the southern city of Guangzhou. “Also, it will save a lot of money on fuel and maintenance.”

But while the consumption subsidy was certainly a trigger for Zhang’s car purchase, she has no desire to use the trade-in for homes programme, saying she prefers selling properties for cash.

“My restaurant has been losing money in recent years, and I need cash flow, not new debt. Swapping my old car for a new fancy electric car was appealing for the experience of new technology and design, but forget about new debt for a new property.”

Zhang was one of the first people in the southern megacity to participate in the trade-in scheme – a scheme which Beijing has high hopes will drive the country’s economic growth, as China struggles with a continuing property slump, slow private investment and falling exports amid external headwinds.

Nationwide, more than 40,000 applications have been registered for the trade-in subsidy since it was rolled out in late April, with many of those using it to switch to new-energy cars. January to May auto sales rose 11.1 per cent from a year earlier to 10.61 million units, while new-energy auto sales jumped 32.3 per cent to 2.94 million.

Expecting the scheme to raise trillions of yuan, Chinese authorities have doubled down on the subsidies: On May 28, the Ministry of Finance announced it would further invest 6.4 billion yuan (US$883 million) to provide auto trade-in subsidies, and earlier this month the Ministry of Transport urged for public buses to be replaced.

The trade-in programme has already expanded quickly to many other areas such as home appliances and even property. But according to David Wong, a lecturer in the department of management at the Hang Seng University of Hong Kong, it is still not as big as the first programme of its type, which was implemented in 2009.

“The trade-in subsidy scale this time is not as large as the one in 2009,” Wong said.

“The eventual boost to the retail sales of consumer goods may be unlikely to be as high as the previous one to boost confidence.”

When Beijing first initiated the trade-in programme in 2009, it did so in an attempt to tap its domestic market to offset declining export orders caused by the global financial crisis. From 2009 to 2011, 30 billion yuan in central government subsidies were rolled out, directly driving consumption by nearly 342 billion yuan, according to the Ministry of Commerce.

The home appliance boost measures have already been used many times in subsequent years, in the name of energy saving, “going countryside” or others.

While the government may be enthusiastic about the expected success of the scheme, though, some analysts have warned that it could all be undone by the cold shoulder of the Chinese middle class.

The majority of middle-class families are savers, not spenders, the analysts argued. They prefer to save for the future and only loosen their purse strings when absolutely necessary, remaining cautious about job and income prospects, while also worrying about increasing their debt.

Gavin Chiu, an associate fellow of the London-based Royal Historical Society, said the effect of the current subsidy is expected to be limited in the context of the ongoing local debt crisis.

“Back then [2009], household debt and urbanisation in China were much lower than now and the local government debt situation was also relatively reasonable,” he said.

“Now, the real estate market has become severely oversupplied and local government debt is sky high.”

China’s household debt rose to 64 per cent of the gross domestic product (GDP) by the end of March, up from 17.9 per cent back at the end of 2008, according to data from the National Institution for Finance and Development.

Local government is also overleveraged, with its proportion of debt in the national GDP rising to 32.8 per cent from 10.9 per cent in the same period, not to mention lots of liabilities hidden in state-owned enterprises, financing vehicles or other forms.

“A large number of households reported a decline of income. On the other hand, Chinese households have a growing need to save for retirement, and are becoming more and more cautious in their consumption,” Chiu said.

In particular, efforts to replace small downtown apartments with bigger new suburban homes, hit a wall.

Property purchase is largely viewed as an investment in China. It is often the biggest item of spending for a household, and can help drive up big-ticket items such as home appliances, furniture and decoration services.

Taicang, in China’s eastern Jiangsu province, is one of more than 70 cities nationwide that have launched trade-in for home schemes. Local authorities are encouraging residents to sell their existing homes to state-owned enterprises to be turned into public housing – and then pay the price difference for a new property.

At one point, George Lu, who worked as an executive for a foreign company in Taicang, was interested in selling his 4 million yuan property in the downtown area to the local authorities. But he ultimately abandoned the idea due to the limited new home options and the need for a new 1 million yuan loan.

“It is definitely a good deal for the government, as it reclaims land resources in downtown areas, the bank gains new loan business, and state-owned developers reduce their property stocks. But for me, buying this kind of new home only increases my debt and risk,” Lu said.

According to a state media report, as of late April, 40 of the first 200 trade-in quotas in Taicang had been sold, and more than 300 people had signed up for the second batch of 800 quotas, with the exact number of transactions unknown.

“Currently, the transaction volume driven by the trade-in programme is still very small, and at the same time the turnover in both the second-hand and new-home markets remains sluggish,” said Yan Yuejin, director of the Shanghai-based real estate think tank E-House China R&D Institute.

Yan noted that the use of replaced old homes is another challenge for local governments, requiring the government to find pragmatic ways to deal with it.

The transitions of trading in for new homes need to wait and see, and the policy’s demonstration effect so far can hardly dispel the younger generation’s worries about the long-term decline in housing prices.

In Zhengzhou, capital of central province Henan, a question mark hangs over the financial capability of government buyers. Local authorities made an ambitious trade-in target of 10,000 units with an estimated cost of around 10 billion yuan. However, Zhengzhou Urban Development Group, which is responsible for this trade-in programme round for the city, reported liabilities of 118.5 billion yuan by the end of September 2023, state media China News Weekly reported.

In April, the housing price index for newly built commercial residential properties in 70 large and medium-sized cities fell by 3.1 per cent year on year, according to the National Bureau of Statistics.

“We are still observing the situation to see if house prices will drop further,” said Yu Qian, a music teacher in her late 20s who had her first child last year. She is hoping to buy a property in the future, but is cautious about overstretching financially. “Another reason [to hold off buying] is that we don’t have enough of a stable income for the long-term future.”

Chiu of the Royal Historical Society said many Chinese households have lost confidence in consumption and investment due to significant concerns about the political situation and the economic outlook.

“The number of households willing to increase their indebtedness to buy a new home is very small, especially in the third and fourth tier cities where there is a huge amount of housing stock,” he said.

On the surface, China’s household saving keeps rising. Domestic household yuan deposits have risen from 71.6 trillion yuan in 2018 to 136.9 trillion yuan in 2023, indicating that most domestic residents prefer saving money over spending it.

According to a quarterly survey released last month by the Southwestern University of Finance and Economics in Chengdu, Sichuan province, only 6.8 per cent of households plan to buy property in the next three months, while 20.1 per cent will adopt a wait-and-see approach.

“The trade-in programme targets China’s middle-class or wealthy families, as they are the group that can take on more debt, but the fact is that the group is facing significant pressures from housing debt and income shrinkage,” Chiu said.

“If the trade-in policy fails, Beijing might introduce more aggressive financial policies.”

---