Mistral点评

• Chinese-led team creates a squirting bot that can shoot like a bullet when it meets light
• China sends international crew on mission to explore underwater mountains in submersible
• Dongfeng joins stampede of Chinese EV makers abroad with its Voyah Zhiyin all-electric SUV
• China couple reunite with son given away by grandmother 37 years ago due to poverty
• Hong Kong must be ‘3 centres and 1 hub’, as stated in China’s third plenum: Paul Chan
• Mainland China tour group arrives in Taiwan’s Matsu as Beijing eases travel curbs
• China best actress history-maker Ma Li says comics should be considered serious artists
• South China Sea: Philippines slams ‘reckless’ actions of Chinese air force over Scarborough Shoal
• Communist Party exhibitions lean on honour and obligation among young Chinese
• Japan appetite for themed outlets from vampire bars to ninja restaurants spreads to China
• What Marco Polo and Matteo Ricci can teach China and Italy today
• Chinese project in Indonesia’s Kalimantan brings opportunities, controversy over growing clout
• Starbucks feels chill in China as prices, vibes lose favour with thrifty coffee fans
• South China Sea: Beijing ‘wary’ as Japan deepens defence ties with Vietnam, Philippines
• China has turned inward to sell Xinjiang cotton after a trade ban. Will it be enough?

Chinese-led team creates a squirting bot that can shoot like a bullet when it meets light

https://www.scmp.com/news/china/science/article/3273802/chinese-led-team-creates-squirting-bot-can-shoot-bullet-when-it-meets-light?utm_source=rss_feed

Scientists have developed a light-driven launch system for miniature robots inspired by squirting cucumbers, a development that could have applications in medicine, agriculture, aerospace – and even ballistics.

The team’s soft hydrogel and graphene launcher can release energy in just 0.3 milliseconds, allowing the device to rapidly take off from both wet and dry surfaces and travel a distance 643 times its own body height.

It could be used to develop miniature medicinal robots for deep tissue sampling, smart-seeding agriculture robots, and it could even have the potential to be used like a soft bullet.

“Robotic tasks that require robust propulsion abilities such as jumping, ejecting or catapulting require power-amplification strategies where kinetic energy is generated from pre-stored energy,” the researchers from China and the United States said in a paper published last month in peer-reviewed journal Nature Materials.

“Such devices typically need the energy release over short time durations,” in order to produce an adequate driving force, said lead author Wang Xin, a doctoral student at the Chinese University of Hong Kong (CUHK).

But existing methods relying on chemical or elastic energy such as latch-spring or buckling instability mechanisms can have limitations, Wang said, such as insufficient energy storage, long energy release periods and complicated fabrication.

“Here we report an engineered accumulated strain energy-fracture power-amplification method that is inspired by the pressurised fluidic squirting mechanism of Ecballium elaterium,” the team wrote in the paper, referring to squirting cucumber plants.

The fruit of the squirting cucumber plant builds up pressure and elastic energy as it grows, eventually bursting open when ripe as a method to rapidly disperse its seeds.

In a similar way, when exposed to high-energy light irradiation, graphene embedded in the team’s hydrogel launcher heats up, causing water in the gel to turn into vapour. The hydrogel expands from the growing vapour pressure and eventually fractures, launching itself into the air.

The small, disk-shaped launcher has a diameter of just 7mm (0.27 inches) and a thickness of 3mm, but it is able to travel more than 1.93 (6.33 feet) metres vertically, said the researchers from CUHK, Zhejiang University, Harbin Institute of Technology (Shenzhen) and Carnegie Mellon University.

Wang said the G-hydrogel launcher’s motion performance exceeded “all the current engineering miniature robot systems with jumping/launching motions”.

“The power amplification strategy may be applied to medical robots for scenarios that require force output, such as deep tissue sampling, stent delivery and [deployment], tissue resection [and more],” he said.

The adaptable launch system, which the team tested on still and moving surfaces including leaves, bark and viscous liquids, could be used to develop untethered medical robots that require a high force output to enter deep tissue.

Within the paper, the team demonstrated the use of the launcher in a smart seed robot by attaching a seed and radio-frequency identification (RFID) to the hydrogel matrix. When launched into a smart seed bed, the RFID is read by sensors to identify the seed type and broadcast care instructions.

Wang said the system could potentially be applied in ballistic weapons as well, though the researchers “have not conducted in-depth research in this direction”.

The team’s launcher is activated by a near-infrared laser, however they also tested the use of focused sunlight to activate the launcher, “suggesting the potential for natural light as a power source”.

Wang said the use of sunlight would expand the potential applications of the launchers, including for use in lunar or space exploration robots.

The launcher was also tested to see if it had a predictable launch pattern, and results indicated that it could be used to develop “soft robots capable of motion with prescribed trajectories and transportation to prescribed locations”.

Wang said a growing number of breakthroughs were being reported in bionics, the science of making artificial systems inspired by existing living systems.

He added that nature had gone through billions of years of evolution, and therefore could offer inspiration for scientists to draw from to solve real-world problems.

China sends international crew on mission to explore underwater mountains in submersible

https://www.scmp.com/news/china/science/article/3274083/china-sends-international-crew-mission-explore-underwater-mountains-submersible?utm_source=rss_feed

A Chinese research ship has embarked on a deep-sea expedition with an international team on board, heading to the western Pacific on a mission to explore the ocean’s depths in one of the most advanced Chinese submersibles.

The 45-day mission, launched on Saturday, aims to explore seamounts – underwater mountains that are among the least-surveyed places on Earth.

The international crew of 60 aboard the Shenhai Yihao, the mother ship of the Jiaolong submersible, includes researchers from mainland China and Hong Kong as well as eight scientists from Australia, Spain, Canada, Mexico, Singapore, Bangladesh, Nigeria and Colombia

The non-mainland scientists will be led by Qiu Jianwen, professor and associate head of the biology department at Hong Kong Baptist University.

Shenhai Yihao and the Jiaolong will make a port call in Hong Kong from September 23 to 25 during the return leg of the trip. It will be the first time for the crewed submersible to visit Hong Kong.

The international team will get a close look at the sprawling Magellan Seamounts on board the Jiaolong, which can dive up to 7,000 metres (22,966 feet). Eighteen dives have been arranged for the mission, according to state news agency Xinhua.

The group of seamounts stretches east from the Mariana Trench, the deepest part of the world’s oceans. The location of the mission, in the waters between Japan and the island of New Guinea, was chosen due to its unique geological features, which may help scientists improve their understanding of biodiversity, topography, ocean island volcanoes, mineral resources and the impact of climate change and human activities.

“Other than the Jiaolong, deep-sea samplers, landers and other equipment will also be deployed to investigate seamount biology and habitats,” said Xu Xuewei, the mission’s lead scientist and deputy director of the Ministry of Natural Resources’ National Deep Sea Centre.

China is in a race with the West to develop its maritime and marine exploration abilities. It aspires to lead global oceanic studies and exploration missions in a range of fields, from deep-sea mining to intelligence.

The country has launched advanced vessels and submersibles in nearby waters such as the South China Sea as well as missions much further afield.

In 2020, China’s Striver submersible, designed to dive more than 10,900 metres, reached the deepest known spot in the Mariana Trench.

In a controversial move in 2010, the Jiaolong’s robotic arm unfurled a Chinese flag at the bottom of the South China Sea, drawing ire from neighbours with competing territorial claims in the contested waters.

The seamount expedition is part of scientific efforts under the United Nations Ocean Decade study and preservation programme.

Xinhua said Jiaolong performs well at sampling and has a low environmental impact. The submersible will be used to capture deep-sea organisms, seawater, sediment, corals and microorganisms.

In April 2018, China sent a team to the Magellan Seamounts where they sampled rocks and marine life using a deep-sea robot.

In May, the Jiaolong and its mother ship completed a 164-day, 57,000km (35,418-mile) excursion across the Indian and Atlantic oceans, where they carried out 46 dives. It was the first time Jiaolong was used in the western Atlantic Ocean.

Dongfeng joins stampede of Chinese EV makers abroad with its Voyah Zhiyin all-electric SUV

https://www.scmp.com/business/companies/article/3274066/dongfeng-joins-stampede-chinese-ev-makers-abroad-its-voyah-zhiyin-all-electric-suv?utm_source=rss_feed

Dongfeng Motor, one of China’s largest carmakers and the partner of Nissan Motor and Stellantis, has become the latest assembler to join the stampede abroad to survive the brutal price war in the world’s largest vehicle market.

Dongfeng’s premium electric vehicle (EV) brand Voyah will be released in mid-September an all-electric sports-utility vehicle called Zhiyin for the export market, the carmaker’s chief executive Lu Fang said in a post on Saturday on the Weibo social media platform.

“Original design is crucial for Chinese cars to go global,” Lu said on the X-like platform, adding that he is confident that Zhiyin would gain recognition in the global market.

Unveiled last Monday, Zhiyin is Voyah’s fourth model in the brand’s line-up, using the smart cockpit and smart driving system produced by Huawei Technologies, the world’s largest provider of telecoms infrastructure. With a driving range of up to 901 kilometres (560 miles) on a single charge, the five-seat Zhiyin will be produced at the Dongfeng-Nissan factory in Wuhan.

Dongfeng, known as the Second Auto Works before being renamed to represent the “easterly winds” in Chinese, did not disclose any pricing details, or the destinations that Zhiyin will be shipped to.

Chinese EV manufacturers are increasingly looking for business opportunities overseas as domestic competition and price war are intensifying in the world’s largest automotive market.

In February, BYD, the world’s largest EV maker, fired the first salvo in the price war, slashing the price of nearly all its cars by between 5 and 20 per cent for each model.

Other major Chinese EV brands such as Nio, Xpeng, and Li Auto have all offered heavy discounts to maintain their market share, while risking their profitability.

Voyah announced its global expansion strategy in April at China’s largest auto show in Beijing, with targets to set up 500 sales and services facilities in 60 countries across six continents by 2030, and sell at least 500,000 vehicles overseas at the same time.

The EV maker launched Voyah Free and Voyah Dream in Spain in June, and opened its first showroom in Madrid to mark its official entry into the Spanish market.

By the end of 2024, Voyah plans to further expand into European markets in Portugal, Belgium and Germany, according to the company.

As more Chinese EV makers eye on regions such as Southeast Asia and Europe to boost sales and offset their losses at home, a price war is also spreading to overseas markets.

Earlier this year, BYD slashed the prices of the updated versions of its flagship Atto3 sport-utility vehicle (SUV) in Thailand by 18 per cent to 899,900 baht (US$24,542). This was followed by similar discounts offered by Chinese rivals Changan Automobile and Hozon.

Duplicating the price competition abroad is not sustainable since consumers will start to doubt the quality and reliability of the cars if they are frequently discounted, according to Bain & Co.

“Chinese companies have the potential to redefine electric cars so that they can convince global customers of their products’ competitiveness in performance and technology,” Helen Liu, a Bain partner, told reporters at a media briefing in June. “The pricing advantage will eventually run out of steam. It is product quality, technology and brand awareness that hold the key to Chinese carmakers’ success.”

China couple reunite with son given away by grandmother 37 years ago due to poverty

https://www.scmp.com/news/people-culture/trending-china/article/3273829/china-couple-reunite-son-given-away-grandmother-37-years-ago-due-poverty?utm_source=rss_feed

A couple in China were recently reunited with their son 37 years after he was given away by his paternal grandmother who said they were too poor to raise another child.

In 1986, a woman gave birth to a baby boy in Weinan, Shaanxi province in northwestern China. He was their third son, the Jiupai News reported.

When he was just a day old, his grandmother sent him to a man, surnamed Zhao, to be raised with his family.

The parents had not given their consent and had no idea about the older woman’s decision.

The grandmother later told the couple she had made the choice on their behalf because she thought it would be too difficult for them to bring up another child when they already had two sons.

It is not clear how much money Zhao paid the grandmother.

The boy’s father, surnamed Li, and mother said they only knew that Zhao’s hometown was in eastern China’s Shandong province.

After the grandmother died, Li and his wife spent three decades travelling around, searching for their lost son.

In February, the couple’s blood samples were found to match that of a man, with the surname Pang, living in Zaozhuang, Shandong province, according to the Ministry of Public Security’s database.

China’s police authority established a large DNA database in 2009 by collecting blood samples from couples whose children went missing, and adoptees who want to find their biological parents.

Police in Shaanxi asked Li, his wife and Pang to give blood twice before confirming that the couple are the biological parents.

On August 3, with the help of police officers, Pang met his parents in Weinan where he was born 37 years before.

“Son, dad and mum are sorry for you. How has your life been all these years?” the tearful couple said, hugging Pang and holding his hands tightly.

The video of their reunion has prompted an outpouring of emotion in China.

“The grandmother is so cruel. She abandoned her own grandson.It is hard to understand her actions,” one online observer wrote on Weibo.

Others took a different view: “The son appears embarrassed at the reunion event. He does not have any feelings for his biological parents who have not raised him,” one said.

Touching family reunions with long-lost children who have been given away or abducted, regularly make headlines in China.

One father, Sun Haiyang, found his son Sun Zhuo in 2021 after searching for him for 14 years. The boy had been abducted near his home in southern China’s Guangdong province in 2007 when he was four.

The parents’ search across the country, plus the aid of facial recognition technology and DNA testing, eventually led to their reunion.

Hong Kong must be ‘3 centres and 1 hub’, as stated in China’s third plenum: Paul Chan

https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3274064/hong-kong-must-be-3-centres-and-1-hub-stated-chinas-third-plenum-paul-chan?utm_source=rss_feed

Hong Kong must position itself as an international centre for finance, shipping and trade, as well as a prominent talent hub, according to plans laid out at China’s third plenum, the city’s finance minister has said.

In a blog post on Sunday, Paul Chan Mo-po wrote that Hong Kong’s strategic position as “three centres and one hub” was “clearly stated” in a resolution endorsed by the Communist Party’s 20th Central Committee, and achieving that position was something the city “must do well in the future”.

He called on the government to “think more deeply” about how to implement Hong Kong’s strategic positioning to China and integrate into the new development pattern of the country to contribute to Chinese- style modernisation.

The Central Committee resolved last month to promote high-quality development to build China into a modern socialist country at its third plenum, a gathering to lay out the country’s economic road map for the medium term.

Chan said the resolution mentioned leveraging the institutional advantages of Hong Kong’s “one country, two systems” governing principle to consolidate and enhance the city’s status as an international financial, shipping and trade centre.

The three centres have their own focuses yet mutually support one another, he added, with growth in the innovation and technology, trade and shipping industries stimulating demand for services and financial products.

The government was also developing the “headquarters economy” to attract enterprises to set up regional or international headquarters in Hong Kong for its strategic location in the Greater Bay Area, he added.

The bay area links Hong Kong and Macau with nine cities in Guangdong province and is a region Beijing wants to develop into an economic powerhouse.

Chief Executive John Lee Ka-chiu held a study session last Friday with top government officials to study the issues listed in the resolution of the third plenum, including their implications for Hong Kong’s future development.

Lee had earlier also called on officials to develop a thorough understanding of the “spirit” of the third plenum, and uphold it in their daily work.

In his blog post, Chan said Hong Kong needed greater market depth as a financial centre, offer a wider range of products and functions, and conduct more exchanges with different regions to expand its sources of funds.

“The financial market is connected to the mainland as well as the world, and can continue to play the role of a ‘test bed’ and ‘firewall’ in the process of China’s deepening financial reform, helping the country to promote high-level opening up of the financial sector,” he said.

The city should also fully leverage the role of an offshore renminbi business hub to promote the internationalisation of the yuan, he added.

Hong Kong has the biggest offshore pool of yuan as of the end of June, at 1.06 trillion (HK$1.15 trillion), according to the latest statistics of the Hong Kong Monetary Authority.

As a trade centre, Hong Kong should help mainland businesses go global in their production and supply chain, providing one-stop support from supply chain management to professional consultation services, Chan said.

“Especially as more mainland enterprises seek international development and set up production lines overseas to better serve the global market, this will generate more new trade service needs, bringing greater opportunities to Hong Kong,” he explained.

Chan also said the city should focus on growing sectors such as smart shipping, green shipping and professional services in the maritime industry.

The government laid out an action plan on maritime and port development last December with the stated aim of boosting Hong Kong’s status as a global shipping centre through tax incentives and innovation.

The third plenum resolution document also highlighted Hong Kong’s strength as a talent hub with many top universities and a society that blended Chinese and Western cultures.

Chan said the government’s various talent schemes have drawn over 340,000 applicants to the city so far since late 2022. Of these, 210,000 were approved and 140,000 successful applicants have arrived at Hong Kong.

“More high value-added positions brought by active investment promotion will also help us retain and utilise these talents well,” he said.

Chan said he was confident Hong Kong would attract more international talent to its shores, as long as the government had a “firm goal and clear thinking” and continued to improve policies and living support for such talent development.

Although the international political and economic environment was complex and volatile, Hong Kong would strive under its “greatest advantage” as a city governed under the “one country, two systems” principle, Chan concluded.

Mainland China tour group arrives in Taiwan’s Matsu as Beijing eases travel curbs

https://www.scmp.com/news/china/politics/article/3274065/mainland-china-tour-group-arrives-taiwans-matsu-beijing-eases-travel-curbs?utm_source=rss_feed

A small tour group from mainland China embarked on a three-day trip to a Taiwan-governed archipelago on Friday, becoming the first group tour to visit the islands since Beijing loosened travel restrictions following the Covid-19 pandemic.

A seven-member tour group departed from a pier in Fuzhou, capital of Fujian province, and arrived in the Matsu Islands. They will spend three days exploring tourist attractions including the Giant Matsu Statue, the Matsu Liquor Factory Industry Co, Qinbi Village and the Beihai Tunnel, according to Taiwan’s Central News Agency.

The mainland visitors are employed in industries such as trade and tourism, and they are hoping to explore business opportunities across the Taiwan Strait in addition to sightseeing, according to the news agency.

The trip was made possible by Beijing’s announcement in April that residents of Fujian, the coastal province that sits opposite the strait from Taiwan, would be the first from the mainland to be permitted to visit the Matsu Islands.

Rao Quan, mainland China’s vice-minister of culture and tourism, said in April that group travel for Fujian residents to Taiwan would resume once direct maritime passenger services from Fujian’s Pingtan county were restored.

In late June, a group of 22 people from Fuzhou embarked on a tourism inspection tour to Matsu, according to the mainland’s China News Service.

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

Mainland travellers were once the top contributor to tourism in Taiwan, but travel restrictions imposed by both sides have led to a sharp decline in tourist visits in recent years.

The mainland suspended individual travel to Taiwan in August 2019, citing the tense state of cross-strait relations. This was followed by both sides halting group travel in 2020 due to the Covid-19 pandemic.

The 2020 suspension also included the “mini-three links” – a policy that allows direct trade, transport and postal connections between Taiwan’s offshore islets of Matsu and Quemoy, also called Kinmen, and the mainland cities of Xiamen, Quanzhou and Fuzhou.

The mini-three links resumed in early 2023 after both sides lifted Covid-19 controls, allowing Taiwanese residents, their mainland spouses and children, and mainland Chinese students studying in Taiwan to use ferry services.

Taiwanese authorities pushed to resume the tourism exchanges, but said in February that Beijing had been unwilling to reciprocate by allowing mainland group tours to visit Taiwan.

In response, Taiwan prohibited tour groups from the island from visiting mainland China, reversing its previous plan to allow local agencies to organise tour groups to the mainland after the Lunar New Year holiday.

Taiwanese travellers may visit mainland China as individual tourists, but Taipei authorities have issued travel alerts for the mainland, Hong Kong, and Macau over safety concerns.

In a notable exception to the travel restrictions, mainland tourists living in a third country or region have been permitted to visit Taiwan under a policy that went into effect in September of last year.

Taiwan’s Mainland Affairs Council told Central News Agency that it was pleased to see the tour group’s arrival to Matsu and welcomed more mainland travellers to visit Matsu and Quemoy.

---

China best actress history-maker Ma Li says comics should be considered serious artists

https://www.scmp.com/news/people-culture/china-personalities/article/3273822/china-best-actress-history-maker-ma-li-says-comics-should-be-considered-serious-artists?utm_source=rss_feed

Chinese actress Ma Li – who recently became the first comedian to win the Hundred Flowers Award for Best Actress – says too often comics are not considered serious artists.

Established in 1962 and decided by audience votes, the Hundred Flowers Award is one of China’s oldest and most prestigious film awards.

Internationally renowned actresses such as Gong Li, Zhang Ziyi, and Zhou Xun are previous winners.

On August 4, Ma, from Liaoning province, northeast China, won the award for her portrayal of the character Li Maojuan in director Zhang Yimou’s film Article 20.

She plays a brave and protective mother, a character which deeply resonated with the mainland audience.

The 42-year-old kissed the trophy at the awards ceremony and tearfully delivered her speech.

“It took me 20 years from stage plays to films to this Hundred Flowers Award. The process was arduous, and I even thought about giving up because comedy is often unrecognised in the film industry. But I love acting too much, so I persevered,” Ma said.

“This award is a recognition for all comedians. I will carry this honour forward.”

One online observer praised Ma’s win as a “highlight moment” for comedians.

“Her comedic roles have broken people’s prejudices about comedy. Her films always make people reflect on life after laughing.”

In 2013, she made her debut in the country’s Spring Festival Gala, performing a skit with the famous comedian Shen Teng.

That year, the gala attracted a staggering audience viewing rate of 31 per cent on Lunar New Year’s Eve.

In 2017, Ma won the Golden Dragon Award for Best Actress for her role as a sports reporter who swaps souls with a male boxer in the comedy film Never Say Die.

Then, in 2019, Forbes released their China 100 Celebrities List, ranking Ma at 59.

However, the talented star’s life has not been without challenges.

In 2021, she told CCTV that she had suffered from depression and had retreated from the outside world for a year.

She expressed anxiety about her appearance and said that being labelled as “funny” prevented her from being cast in serious roles, which caused her significant distress.

With the support of friends and family, and with effective treatment, she gradually overcame her depression and returned to the comedy stage.

In July, the latest data showed that the total box office revenue of films starring Ma exceeded 22 billion yuan (US$3 billion), making her the highest-grossing Chinese actress.

She has 9.5 million fans on Weibo.

One online user wrote on the platform: “Congratulations to Ma. We look forward to seeing more of your excellent films.”

“The characters Ma portrays are full of the breath of life. She is like the friendly and humorous big sister living next door,” said another.

South China Sea: Philippines slams ‘reckless’ actions of Chinese air force over Scarborough Shoal

https://www.scmp.com/news/asia/southeast-asia/article/3274060/south-china-sea-philippines-slams-reckless-actions-chinese-air-force-over-scarborough-shoal?utm_source=rss_feed

Philippine President Ferdinand Marcos Jnr on Sunday condemned Chinese air force actions in waters of the South China Sea claimed by both countries, calling the actions “unjustified, illegal and reckless”.

Manila and Beijing accused each other on Saturday of disrupting their militaries’ operations around the Scarborough Shoal in the first incident since Marcos took office in 2022 in which the Philippines has complained of dangerous actions by Chinese aircraft, as opposed to navy or coastguard vessels.

The Philippine military on Saturday condemned “dangerous and provocative actions” when two Chinese aircraft dropped flares in the path of a Philippine aircraft during a routine patrol around the shoal on Thursday.

The Chinese military’s Southern Theatre Command countered that the Philippines had disrupted its training, accusing Manila of “illegally intruding” into Chinese airspace.

On Sunday, Marcos urged China to act responsibly both in the seas and in the skies.

“We have hardly started to calm the waters, and it is already worrying that there could be instability in our airspace,” Marcos said in a statement posted by the Presidential Communications Office on the social media platform X.

The Chinese embassy in Manila did not immediately respond to a request for comment on Sunday.

The Scarborough Shoal is one of Asia’s most contested maritime features and a flashpoint for flare-ups over sovereignty and fishing rights.

Chester Cabalza, president of the Manila-based think tank International Development and Security Cooperation, said China’s actions were a “show of force” in response to Manila’s participation in multi-nation drills that promote freedom of navigation and overflight.

“After a series of gray zone tactics at sea, we may probably see dogfights up in the sky if China continues its growing antagonism in the Philippines’ air and defence zones,” Cabalza said.

Beijing claims almost all of the South China Sea, a conduit for more than US$3 trillion of annual shipborne commerce, including parts claimed by the Philippines, Vietnam, Indonesia, Malaysia and Brunei.

China rejects a 2016 ruling by the Permanent Court of Arbitration in The Hague that Beijing’s expansive claims had no basis under international law.

Communist Party exhibitions lean on honour and obligation among young Chinese

https://www.scmp.com/news/china/politics/article/3273812/communist-party-exhibitions-lean-honour-and-obligation-among-young-chinese?utm_source=rss_feed

Xintiandi used to be the name of a subway station in downtown Shanghai known for its chic eateries and boutiques.

Three years ago, it was renamed the Site of the First National Congress of the Chinese Communist Party, Xintiandi Station, to mark the party’s centenary. At the same time, an exhibition titled “Epoch-making beginnings: Founding of the Communist Party of China” opened next to the shopping mecca and has run since.

Wang Xinning, a student at Fudan University in Shanghai who visited the exhibition before the summer holiday, said she was impressed by the stories of party martyrs who sacrificed their lives at a young age.

“[Their stories] contrasted sharply with my life, and made me rethink my purpose of joining the Communist Party,” she said.

Patriotism-themed exhibitions packed with youngsters in red scarves and college students have become a common sight in recent years, particularly during public holidays.

While it is no secret that many young people have struggled to find work as China’s economic growth slowed, patriotic education, which emphasises altruism and loyalty to the Communist Party, has gathered pace alongside a rise in nationalism in the country.

The promulgation in January of the patriotic education law – which spells out the responsibilities of everyone, from children to adults, and schools to families – added fuel to the movement.

The effectiveness of the patriotism drive is difficult to measure, but at the Red Building on the Peking University campus, a young student of the School of Marxism at Beijing Normal University said she felt “fired up” when she visited the historic party site that is often regarded as the cradle of the student-led May Fourth Movement of 1919.

The Red Building, a four-storey red brick house, reopened in 2021 to serve as a memorial hall of the early revolutionary activities of the Communist Party.

“I feel like I am in the company of those students [in 1919], and I am motivated to relearn Marxism and theories about the Communist Party,” she said.

“With examinations coming up, I hope I may find some luck here,” she added.

Some young visitors said the historic remnants were not all dull and boring. Wang of Fudan University adored a cartoon souvenir of Lu Xun, a towering figure of modern Chinese literature revered by the Communist Party.

“This is a present from a friend who visited the former residence of Lu Xun,” Wang said. “Young people love [the memorabilia] and feel connected because these designs plant the historical figures in people’s hearts in a more relaxed way.”

Enthusiasm among young people was partly galvanised by a popular TV series about Communist Party heroes that aired in 2021.

The Age of Awakening, a state-produced TV drama chronicling the May Fourth Movement and the founding of the Communist Party, inspired a fad of merchandise featuring celebrities and icons made popular by the programme, although the popularity of these souvenirs may have started to fade recently compared to three years ago.

But there were also visitors to these exhibitions who came out of obligation rather than passion.

At the Communist Party Museum, which is near Beijing Olympic Park, some parents said they came to help their children fulfil school requirements. One mother said her son needed to complete a worksheet about the Red Army and write the story of a Red Army soldier.

“These tasks are troublesome, but they are requirements from the school. How can we refuse to do that?” she said.

An undergraduate student at the Red Building said the visit was just “a waste of time”.

“It’s so boring and all propaganda, and there’s nothing new in any of these [exhibition] rooms,” he said. “I could have spent my time better studying for the postgraduate entrance examination.

“We waste too much time in ideological and political courses – even when we are on summer holidays.”

Zeng Jingjing, a graduate of education at Beijing Normal University, said while today’s circumstances were different, young people could still gain insight from the revolutionary generations.

“What we can learn from our predecessors is their spirit,” Zeng said after visiting a patriotic education site in Shanghai.

Yuan Bo, who has completed her graduate studies and is working at a start-up in Shanghai, said she was often more interested in observing other visitors’ reactions rather than the exhibits.

On a humid and hot Sunday afternoon in July, she visited the Sihang Warehouse Memorial of War of Resistance Against Japanese Aggression in central Shanghai, which houses an exhibition documenting a battle by Chinese soldiers against the invading Japanese army that started in 1937.

Yuan said she was indifferent about the memorial since the exhibition was similar to other patriotic education sites she had visited.

“We are told how we should feel about history and the motherland, instead of having our own thoughts and ideas. We won [the war against Japan’s invasion] because of all the great work by our country and our people,” she said.

Watching small children running and shouting “defeat the Japanese” at the memorial, Yuan said she was like them when she was their age but had since experienced a shift.

“Before I could form my own values, I was often fed with different ideas by others, and it’s difficult not to be influenced by all those anti-Japanese films and TV series.

“But I don’t want to blindly follow others now.”

She said while patriotism was important, it should not be at the expense of independent thinking.

“Patriotic education is indeed necessary, but there should be room for discussion,” Yuan said. “Promoting peace may be more important than promoting patriotism.”

Jonathan Sullivan, an associate professor specialising in Chinese politics at the University of Nottingham, said that in China, “control of representations of the past represents an ideological battleground”.

Just outside the exhibition, a cafeteria named The People’s Cafe continues the patriotic message in its decor, which features red stars and other Communist Party icons. A stereo plays patriotic songs on a loop, and revolutionary posters on the walls carry slogans such as “Taiwan independence is a dead end”.

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

The cafe sells two types of cappuccino – one with foam in the shape of China’s territory and the other topped with foam in the shape of the word “China” in Chinese characters.

Its pineapple-flavoured latte, a new introduction in July, is decorated with the shape of Taiwan island and the words “must be returned” on top.

“I felt I was living in magical realism,” said Yuan, watching the chocolate foam dwindling from the cappuccino she ordered.

---

Japan appetite for themed outlets from vampire bars to ninja restaurants spreads to China

https://www.scmp.com/news/people-culture/article/3273682/japan-appetite-themed-outlets-vampire-bars-ninja-restaurants-spreads-china?utm_source=rss_feed

Themed food and drink outlets are hardly something new, but Japan is still ahead of the rest when it comes to strangeness.

However, as is often the case, lifestyle trends in Japan regularly find their way to China.

The Post takes a closer look at some of the themed bars and restaurants in the two countries.

The Vampire Cafe in Tokyo includes a Dracula VIP room with Gothic decor featuring skulls, thorns, curses and blood.

Staff in tailcoats and French maid outfits, wearing ghastly makeup complete the picture.

A coffin-shaped menu offers a roast chickendish dubbed “The rebel’s punishment, death by fire”.

Tokyo’s Science Bar Incubator is decked out like a biology lab with beakers, alcohol lamps and test tubes.

Customers are required to wear white lab coats when they enter.

The manager is a biology researcher who wanted to create a place academic exchanges.

Drinks are served in test tubes, meals come in laboratory glassware and there is litmus paper to test the acidity of the food.

The bar also offers “DNA fortune-telling” which predicts the fate of diners by taking skin samples and testing them using proper laboratory equipment.

Ninjas are an important cultural symbol in Japan and were active in real-life espionage between 1603 and 1868.

With more than a nod to history, the Ninja Tokyo restaurant recreates an ancient ninja village.

A sign at the entrance reads: “Ninjas are in training, please press the button on the sword for assistance.”

At this point a ninja server jumps out to greet customers.

Diners are treated to ninja techniques, such as smoke emerging when a sword is drawn from under a serving plate. Master ninjas also perform magic.

A prison-themed restaurant in Tokyo combines the feel of a jail and a hospital.

Customers are greeted by waitresses dressed as nurses who place removable handcuffs on them.

They can eat in areas resembling a cell, operating room or morgue.

To place an order, customers use their handcuffs to knock on the door to attract the attention of servers.

On offer are soft drinks served in head-shaped bowls and jelly served on sanitary pads to mimic the harshness of a prison environment.

Cosplaying prisoners are also on hand to scare people.

China is not being left behind as evidenced by an academic-themed bar in Shanghai.

DJs plays electronic music while giving sociology lectures in conjunction with a projector relaying sociological topics.

Cocktails and coffee drinks are named after academic theories.

Beijing is also an home to an outdoor philosophy-themed bar.

One of its bosses, Zhang Jianing, told the Beijing Youth Daily: “After a few drinks, engaging in philosophical discussions in a laid-back atmosphere makes conversations flow more freely.”

What Marco Polo and Matteo Ricci can teach China and Italy today

https://www.scmp.com/opinion/world-opinion/article/3273417/what-marco-polo-and-matteo-ricci-can-teach-china-and-italy-today?utm_source=rss_feed

It all began more than 700 years ago when Italian merchant Marco Polo, embarked on his legendary journey to China. His tales of Chinese urban life, flourishing commerce, convenient transport systems and sophisticated social structures captivated the European imagination and inspired explorers like Christopher Columbus.

Last month, Italian Prime Minister Giorgia Meloni stepped onto Chinese soil, aiming to rejuvenate relations. The visit, coming after Italy’s withdrawal from China’s Belt and Road Initiative, marked a significant re-evaluation of relations and economic cooperation.

As Meloni and President Xi Jinping revisited the deep historical ties between China and Italy in their conversations, it became clear that cultural exchanges are not relics but a foundation for cooperation.

Marco Polo’s legacy has lasted centuries. Italian missionary Matteo Ricci and painter Giuseppe Castiglione, both Jesuits, are also celebrated for their contributions to Sino-Italian relations.

Arriving in China in the 16th century, Ricci recognised that evangelising in a country with such profound cultural foundations required an adaptive strategy. He adopted Confucian scholarly robes and studied Chinese literature and philosophy. He earned the admiration of literati such as Xu Guangqi and Li Zhi, and introduced European geometry, astronomy and mechanical clocks to China. His approach showed that genuine engagement and mutual respect can foster deep, lasting connections between cultures.

In the 18th century, Castiglione was drafted into the Qing imperial court as a painter and ended up serving under three emperors: Kangxi, Yongzheng and Qianlong. There, he studied Chinese ink painting, collaborated with Chinese artists and blended traditional Chinese aesthetics with Italian chiaroscuro techniques. These historical exchanges laid a rich cultural foundation and offer important lessons for modern diplomacy.

During Meloni’s visit, the World Art Museum in Beijing held an exhibition on Marco Polo and the Silk Road, showcasing 135 artefacts including manuscripts, paintings, sculpture, porcelain objects, textiles and glassware from Italian and Chinese institutions. It highlighted the enduring friendship between the two nations, underscoring how exchanges in commerce, art and culture have enriched both societies.

Diplomats could take inspiration from the trajectories of Marco Polo, Ricci and Castiglione in building mutual understanding across cultures. This approach could help countries navigate complex issues such as trade disputes and different political systems.

Meloni’s visit was not just a balancing act, but also a strategic move. Italy is not risking its relationships with Western allies, but rather, looks to be positioning itself as a bridge between the East and the West. This approach could garner greater diplomatic leverage and economic opportunities for Italy and more broadly, the European Union.

For instance, Italy’s support of EU tariffs of up to 37.6 per cent on Chinese electric vehicles (EVs) seemingly contradicts its efforts to boost economic cooperation with China. But what it reflects is the delicate balance EU nations must strike between protecting domestic industries and fostering trade relationships.

And this is in stark contrast to the US’ more confrontational stance in quadrupling Chinese EV tariffs to 100 per cent. Italy and China have expressed differing views but the willingness to engage in constructive dialogue signals a commitment to finding common ground.

Italy is pushing for “fairer” trade relations, aiming to address a trade deficit that reached €40 billion (US$43.68 billion) last year. This economic imbalance is a major concern, but it also presents an opportunity for both nations to negotiate terms that benefit their industries.

Meloni’s visit to China resulted in a three-year action plan. When he met Meloni, Chinese Premier Li Qiang specifically called for cooperation in sectors such as ship building, aerospace, new energy, and artificial intelligence (AI). Italy’s withdrawal last year from China’s Belt and Road Initiative might have looked like a setback in bilateral ties but it has also opened the door to a more balanced and mutually beneficial relationship.

The focus on collaboration between small and medium-sized enterprises, as well as in industries such as EVs and AI indicates a pragmatism to Sino-Italian relations. Both nations seem to recognise that cooperation and competition can coexist in their relationship. China’s collaboration with Europe on AI governance, for instance, indicates recognition of a broader necessity to establish trust and an inclusive mindset.

This is not a sign of European nations being pulled into China’s orbit but rather, a recognition of the benefits that cooperation can bring. The narrative that the EU and China should decouple, or cannot cooperate, is increasingly being challenged.

The power of culture and the arts in fostering relations is seen in recent exhibitions as China and Italy jointly commemorate the 700th anniversary of Marco Polo’s death. The Doge’s Palace in Venice, for instance, is exhibiting “The Worlds of Marco Polo”, a showcase of more than 300 works, including paintings, historical artefacts and literary contributions.

In highlighting the significance of cultural openness and curiosity, the exhibition serves as a reminder of how cultural and people-to-people exchanges can bridge gaps.

Even as nations navigate complex economic and political relationships, shared cultural experiences can create lasting bonds and open new avenues for cooperation. International relations do not have to be reduced to battles over military and economic power. Diplomacy can be multifaceted, encompassing art, science, philosophy and human connections.

By leveraging rich cultural ties and focusing on mutually beneficial economic cooperation, countries could forge relationships that not only serve their national interests but also contribute to global stability, prosperity and sustainability.

---

Chinese project in Indonesia’s Kalimantan brings opportunities, controversy over growing clout

https://www.scmp.com/week-asia/economics/article/3273880/chinese-project-indonesias-kalimantan-brings-opportunities-controversy-over-growing-clout?utm_source=rss_feed

A black double-cabin, four-wheel-drive pickup truck stopped in front of a fresh fish store in Kampung Baru, Mangkupadi village, in North Kalimantan, and three Chinese nationals and one Indonesian exited the vehicle. They went inside and spent more than 30 minutes inspecting and selecting fish before leaving.

Kaesi, the store owner, could not hide her smile after they left. It was not only because the group had spent almost 500,000 rupiah (US$30.70) but also that other Chinese customers had entered her store afterwards and spent even more, leaving her with a tidy profit.

“They don’t seem to worry about money. They can spend around 500,000 to 1 million rupiah each time they shop here,” the 35-year-old woman told This Week in Asia.

Kaesi’s customers are a few of the many Chinese workers who have come to her corner of Indonesia in connection with the Kalimantan Industrial Park Indonesia (KIPI) project, which began construction in December 2021.

They have brought with them new business opportunities but also controversy over their growing influence, with some locals complaining the project and its workers are being prioritised over their rights.

The Indonesian government declared KIPI would be the “largest green industrial park in the world”, with President Joko Widodo calling it the future of the country’s green energy industry, powered by clean energy and producing EV battery, petrochemicals, and aluminium.

KIPI has also been designated as one of Indonesia’s National Strategic Projects, which are considered crucial to the country’s development and given special mechanisms and regulations to accelerate their construction. The project will eventually cover 30,000 hectares (74,130 acres) of land in Mangkupadi and Tanah Kuning village on the eastern coast of North Kalimantan.

KIPI is also seen as a key project for Chinese-Indonesian relations and was specifically mentioned in a joint statement on deepening comprehensive strategic cooperation that was released following Widodo’s meeting with Chinese President Xi Jinping in Beijing last year.

When the project broke ground in 2021, Widodo estimated at least 100,000 workers would be required for KIPI’s construction and 60,000 for its operation. It is operated by a consortium consisting of companies from China, Indonesia and the United Arab Emirates.

Although official records about the companies involved with KIPI are difficult to find, the Nugal Institute, a think tank that has been collecting data about the project, said it could confirm two Chinese companies, Tsingshan Holding Group and Taikun Petrochemical, were involved with the industrial park, as well as two Chinese contractors, China State Construction Engineering Corporation and China Railway Engineering Consulting Group.

There is also no official data on the number of Chinese workers at KIPI either, but locals estimate them to number in the hundreds already.

Merah Johansyah, a coordinator of research and management at Nugal, said KIPI needed to be audited due to the lack of transparency surrounding it. He also cited a number of workers’ rights issues they had documented, including companies not giving workers proper contracts, making them vulnerable to underpayment and summary lay-offs.

“That’s why we urge this project to be audited. How can they let the Chinese enter this country freely and get paid more, while local labourers have no working contracts?” Merah told This Week in Asia.

Findings by Nugal coupled with testimony from residents in the area revealed incidents of illegal land seizures related to the project, with some locals claiming they were forced off their land or required to sell it for less than its value.

Yosran Efendi, a campaign manager at the non-profit Sustainable Forest Circle Association, said locals had not filed any official reports about this because they were too afraid to go to the police or go to court due to intimidation from the companies, which had threatened them with legal action if they refused to give up their land.

One interviewee, who wished to remain anonymous, told This Week in Asia that the companies had also placed spies in the community, making locals afraid to speak up about it.

“We are too afraid to protest, because it’s us against the government,” she said.

For that reason, Yosran said they would bring local representatives to Jakarta to meet the country’s Human Rights Commission (Komnas HAM) next month. “We will facilitate their meeting with Komnas HAM. We hope the commission can take action on this case,” Yosran said.

The Indonesian government has received numerous accusations of human rights violations in relation to National Strategic Projects such as KIPI. In June, Komnas HAM said it documented at least 1,675 cases of human rights abuses over the past three years related to National Strategic Projects, mainly over land disputes and environmental damage.

Lena Purnama Sari, head of the land agency of Bulungan Regency, denied that there had been any issues regarding land compensation for locals related to the project, insisting that KIPI had carried out everything legally.

“If there’s a problem, I believe it comes from someone who doesn’t have [valid rights to land] there. They’re just riding the wave to get some money,” Lena said.

No one at KIPI could provide a statement when This Week in Asia visited its office, as the managers were said to be out on business. A security head who gave his name as Wibowo said “prior notice” was needed for interviews and promised to forward any message to management. However, no response to interview requests had been received as of the time of publication.

Kaesi, for her part, is happy about the project, saying she and her husband’s lives have been improved by the many Chinese workers who have become their regular customers.

Before KIPI came to town, Kaesi’s husband was a traditional fisherman who sold only a small amount of fish. Earlier this year, they began collecting fish from other villages and districts through a “trial-and-error” method to discover what appealed to Chinese taste buds.

It took them months to learn that the Chinese prefer largehead hairtail, moray, grouper, and even sea cucumbers – all species that find little favour among Indonesians.

Their fortune climbs every time the Chinese have special events, such as Lunar New Year or Yuan Xiao Festival, which is celebrated on the fifteenth day of the first month in the lunisolar Chinese calendar.

“That’s why we’re planning to put a Chinese calendar in our store so we know their special dates,” Kaesi said.

The wheel of fortune has also turned in favour of Muhammad Akbar. He operates a travel agency for those going in and out of Mangkupadi village, and many of the companies that bring Chinese workers in for the project use his services.

Akbar recounted a time when he took Chinese workers from Berau, East Kalimantan, to the project site, and they paid him 3 million rupiah for his service – 500,000 rupiah more than what was initially agreed. He said the bonus was due to the road conditions and they were grateful that the 35-year-old was willing to take the job.

“I asked why, and they said, ‘It’s OK, you deserve this,’” Akbar said.

The Chinese have influenced many aspects of life in Mangkupadi and Tanah Kuning. For example, since the project began, road markings have been revised to be in both Chinese and Indonesian languages.

Kaltara University, located in the regency’s capital, signed a memorandum of understanding with the company that operates KIPI and the government of Bulungan Regency to offer a Chinese-language intensive course in 2022. Graduates of the course will be recruited to work at the industrial estate.

However, not all locals have benefited from the influx of Chinese workers, with some expressing resentment over what they perceived as their special treatment.

Amran, a former fisherman who has lived in the area since the mid-90s, blamed the government for being unable to cultivate his land.

He said KIPI authorities had put a sign marking his land as part of the project and would take legal action against anyone carrying out activities in the area without their permission.

“If we want to send workers to Japan, they need to learn Japanese. So why do we need to learn Chinese when they come to our home? They should learn our language, not the other way around,” the 54-year-old said in frustration.

Starbucks feels chill in China as prices, vibes lose favour with thrifty coffee fans

https://www.scmp.com/business/companies/article/3273882/starbucks-feels-chill-china-prices-vibes-lose-favour-thrifty-coffee-fans?utm_source=rss_feed

Starbucks has been under pressure in mainland China for years from less expensive rivals like Luckin Coffee and Cotti Coffee, but the US chain’s latest results in the market make that challenge look more like an existential threat.

The Seattle-based coffee purveyor said revenue from its 7,306 mainland stores tumbled 11 per cent year on year to US$733.8 million in the quarter ended June 30. Same-store sales slid 14 per cent in the same period amid a 7 per cent drop in transaction volume and average order value.

Once seen as a status symbol for China’s middle class, coffee has taken on a more functional role amid a nationwide spending decline. As a result, Luckin, Cotti and others are steadily eating into Starbucks’ market share by selling brews at a fraction of the price, winning the hearts of cost-conscious consumers.

The shift has added to pressure on the American coffee giant, which opened its first shop in China in 1999, especially as China has overtaken the US as the world’s biggest market for branded coffee shops in terms of outlet numbers, according to a report by World Coffee Portal late last year. The total shot up by 58 per cent last year to 49,691 outlets.

Founded in 2022 and helmed by Luckin Coffee’s former chairman Lu Zhengyao, Cotti has taken the market by storm with its all-encompassing 9.9 yuan (US$1.40) coffee menu and aggressive franchise-focused expansion strategy. Starbucks’ prices vary significantly depending on the product, but a tall latte, one of the most popular items, costs around 30 yuan.

Cotti has opened 7,500 stores in just under two years and pledged to build an additional 8,000 “express stores” in the second half of this year. Its tiniest shops, some as small as 1 square metre, are nestled inside convenience stores and restaurants, with minimal staffing and low costs.

Starbucks, in contrast, added only 826 new stores so far this year, representing a 13 per cent annual expansion, a pace that analysts describe as “much slower” than its domestic peers.

“Starbucks will continue to lose market share in China over the near term, driven in no small part by consumer trade-down and more cost-effective options widely available with local competitors,” Sean Dunlop, a senior equity analyst at Morningstar, wrote in a note.

The US coffee brand’s same-store sales in China are expected to decline by 12 per cent in the fiscal fourth quarter, resulting in a 7.2 per cent drop for the full year. Meanwhile, the company’s new stores are estimated to generate a 50 per cent cash return on investment, much lower than the 70 per cent enjoyed just a couple of years ago, Dunlop said.

Starbucks’ global CEO Laxman Narasimhan expressed dissatisfaction with the results in an earnings call last week, attributing the decline in China to “significant disruptions” in the operating environment caused by “unprecedented expansion and a mass segment price war”.

Cotti Coffee’s aggressive pricing and expansion strategies are hurting more than just Starbucks. Luckin, China’s biggest coffee chain with more than 20,000 outlets, saw its second quarter profit drop 12.8 per cent year on year to 871 million yuan, despite a better-than-expected 35.5 per cent increase in revenue to 8.4 billion yuan.

“Luckin’s profit has seen a noticeable decrease since the third quarter of last year, after it began slashing prices to compete with Cotti,” said Richard Lin, chief consumer analyst at SPDB International.

The competition has resulted in an around 10 per cent slump in the average order value in Luckin’s self-operated stores. The drop in its franchise stores – a key component of its strategy to compete with Cotti in lower-tier markets – is likely to be even greater, Lin said.

In recent months, Luckin has dialled back its discounts and slowed its pace of expansion. The effort has improved gross margins, and Lin said the same store sales decline should to slow in the second half of the year.

Meanwhile, Starbucks, having lost its coffee crown to Luckin in 2023, has been scrambling to cut costs. It also vowed to continue its expansion efforts in lower-tier cities to defend its market share.

But analysts are sceptical.

“The growth potential of China’s coffee market definitely lies in lower-tier cities, given that the higher-tier cities are already very saturated,” Lin said. “But frankly, I don’t think Starbucks can gain a lot of traction in China’s small towns and villages.”

Starbucks’ brand positioning is simply at odds with consumer sentiment.

A study conducted by researchers at the University of Leicester in 2014 investigated Chinese attitudes to Western brands by looking at the case of Starbucks, and it concluded that the brand was an instrument for people to demonstrate their status. This included both their social class and more subjective characteristics, such as being modern, international or fashionable.

“These days, many coffee drinkers, even white-collar workers in first- and second-tier cities, which are Starbucks’ main target audience, are buying coffee out of necessity rather than for the brand,” Lin said. “In that case, why would they choose a 30 yuan Starbucks coffee over something that is much cheaper?”

“A full recovery would rest on recovering comparable store sales growth, and we do not envision the firm returning to peak 2021 levels within the next decade,” said Morningstar’s Dunlop.

South China Sea: Beijing ‘wary’ as Japan deepens defence ties with Vietnam, Philippines

https://www.scmp.com/news/china/diplomacy/article/3273893/south-china-sea-beijing-wary-japan-deepens-defence-ties-vietnam-philippines?utm_source=rss_feed

Beijing will have been on alert amid a recent spate of military engagements between Japan and several Southeast Asian countries that China has disputes with in the South China Sea, according to observers.

And Beijing might seek to counter such activities in the region, they added.

The observations come as Japan pledged to deepen ties with Vietnam this week during a visit to the nation by Japanese defence minister Minoru Kihara, with Tokyo saying it would provide two supply transport vehicles to Hanoi as part of an agreement on defence equipment and technology transfer.

Vietnam defence chief General Phan Van Giang called for the two countries to push ahead towards a “new, effective phase … for peace and prosperity in Asia and the world”, Vietnamese media reported.

A week earlier, Japan held a joint military exercise with the Philippines in the South China Sea – the first of its kind.

Manila called the drills “part of the ongoing efforts to strengthen regional and international cooperation towards realising a free and open Indo-Pacific”, according to a statement from the Philippine armed forces.

China claims sovereignty over almost the entire resource-rich South China Sea. These claims overlap with several countries in the region, including the Philippines and Vietnam, which have led to ongoing disputes. Tensions have remained particularly high between Beijing and Manila over a series of recent clashes.

Collin Koh, a senior fellow at the S. Rajaratnam School of International Studies at Singapore’s Nanyang Technological University, said Japan’s move to provide security-related material to Vietnam was not surprising, given that it has previously offered coastguard aid.

But it was a “notable step”, he said, as the recent arrangement was directed by Japan’s defence ministry compared to past instances which were led by the Japan International Cooperation Agency (JICA).

JICA is a government body which traditionally focuses on economic and social assistance to developing countries, but in recent years it has been involved in programmes related to maritime security.

The move, Koh suggested, was an example of Japan tailoring its Vientiane Vision – a defence initiative that guides Tokyo’s cooperation with members of Asean (Association of Southeast Asian Nations) – to Vietnam’s needs.

“Hence, it starts with non-lethal and relatively low-tech or unsophisticated material in the form of logistics vehicles,” he said, referring to the supply transport vehicles.

“I believe this is a test balloon. This latest transfer may potentially elevate to the transfer or sale of more sophisticated equipment in the future, such as radars.”

China would be “wary” of this development, Koh said, noting that Japan has close economic ties and growing security links with Vietnam.

“I think Beijing will have come to the long-term assumption that Tokyo would some day in the future transfer or sell lethal arms to Vietnam,” he said.

“That will, however, boil down to Hanoi’s eventual strategic calculations, especially in view of its proclivity to try to balance those key interests, including stable ties with China.”

Greg Poling, director of the Southeast Asia programme at the Washington-based Centre for Strategic and International Studies, said the recent agreement between Japan and Vietnam may be a sign of a deepening security relationship.

He pointed out that Vietnam has elevated its diplomatic ties with Japan to a comprehensive strategic partnership – the highest level in Hanoi’s diplomatic hierarchy – as part of its efforts to deepen ties with other external partners to balance China’s influence.

As for Japan’s recent maritime exercise with the Philippines, Poling said it was “just the latest in a string of security developments in [their] security relationship”.

Other examples include the four-way maritime drills by Australia, Japan, the Philippines and the United States in April, and a landmark agreement signed between Tokyo and Manila last month that would ease military access for both countries.

“Tokyo and Manila believe they face a shared threat in China and are responding accordingly,” Poling said. Japan has competing claims with China in the East China Sea.

“The only thing Beijing could do now to halt that deepening partnership would be to stop using force and the threat of force in its maritime disputes, which is unlikely under Xi’s leadership,” he said.

Prashanth Parameswaran, a fellow with the Washington-based Wilson Centre’s Asia programme, said the recent defence interactions between Japan and Southeast Asian states pointed to Tokyo’s growing security role in the region, which “complicated China’s quest for greater regional dominance”.

“China may prefer the status of regional hegemon in Southeast Asia, but its own actions are leading countries to seek options elsewhere, including Japan, to balance its growing influence,” said Parameswaran, who is also founder of a newsletter on regional developments called Asean Wonk.

“Japan’s greater security role in Southeast Asia is slowly but surely becoming clearer.”

Lyle Morris, a senior fellow at Asia Society Policy Institute’s Centre for China Analysis, called the Japan-Vietnam agreement “significant”, saying it is an illustration of Japan’s increasing role in supporting military technology transfers to South China Sea claimants.

As Japan is not a claimant of the South China Sea, defence exchange and equipment support was one of the main ways Japan could play a prominent role in aiding countries looking to bolster their capabilities, he said.

Morris suggested the recent developments would be seen as a “concerning trend” for China, which he said “did not like ‘external powers’ to intervene” in the territorial disputes.

“It suggests that claimants are eager and willing to engage other powers in the region to bolster their own defence capabilities. I would imagine China will lodge a diplomatic protest with Japan and urge Japan to stay out of the dispute and not complicate the situation,” he said.

Koh said China might seek to counter such regional security arrangements with its own outreach – but so far that has brought limited success.

While there have been some wins with Southeast Asian states ranging from Cambodia to Laos and Thailand, it has not been the case for others, especially its rivals in the South China Sea.

“This is also a strategic reality that perhaps Beijing has come to terms with … that there will be limitations to these outreaches for defence and security engagements with its Southeast Asian South China Sea rivals who appear more at ease having such engagements with extra-regional powers that clearly are designed to balance against China’s moves,” he said.

But, Koh noted, while Beijing would be wary of the recent developments, it “may not be overly worried” as it appeared to consolidate its “physical position” in the South China Sea with its rapid military and coastguard build-up.

“Beijing appears to exude a certain flair of confidence of its ability to handle extra-regional presence,” he said.

While China still pushed its narrative that extra-regional powers – such as the US and Japan – were “meddling” in the disputed seas, it has so far not made significant moves to counter these activities.

Zhou Bo, a senior fellow at Tsinghua University’s Centre for International Security and Strategy, said the deepening ties between Japan and Southeast Asian countries reflect a shift in Tokyo’s diplomatic strategy.

He said this stems from Japan’s concern over a possible use of force by China in the South China Sea and Taiwan Strait, which he called “unreasonable”.

“[Japan’s] judgment of the regional situation has led to its desire to interact with those countries that have conflicts with China,” said Zhou, who is a retired PLA senior colonel.

However, he added that Japan’s recent agreement with Vietnam was “not a big deal”.

“I don’t think these [military] aids will play any role in changing the situation in the South China Sea,” he said. “It’s just a drop in the bucket. [China] does not need to respond to it.”

Zhou stressed that China has always faced interference by “foreign forces” in the South China Sea.

“This sort of opposition [towards China] is inevitable in that they believe they have a stake in the security of the South China Sea. But since no one is impeding freedom of navigation, it won’t necessarily have a big impact,” he said.

China has turned inward to sell Xinjiang cotton after a trade ban. Will it be enough?

https://www.scmp.com/economy/china-economy/article/3273899/china-has-turned-inward-sell-xinjiang-cotton-after-trade-ban-will-it-be-enough?utm_source=rss_feed

After Hong Yongcheng’s American customers began to shy away from renewing their orders – a change the towel factory owner attributed to heightened restrictions on Chinese imports – he responded in unexpected fashion.

Rather than try to win back those skittish buyers from overseas, he started a new production line in the Xinjiang Uygur autonomous region – an area of China where exports to the US are all but forbidden.

“I don’t see much hope in getting American orders back, so producing from Xinjiang does not matter any more, as most customers are domestic,” Hong said. “At least we can cut costs.”

Hong’s new line in Xinjiang made him a perfect fit for the China-Eurasia Expo in the regional capital Urumqi last June, where authorities invited him to display his home-grown wares and help promote the local economy.

In the two years since a sweeping ban on US exports hit the region, however, most of China’s textile and apparel makers are struggling to fill the resultant vacuum in demand.

Global retailers have been under pressure to sever their supply chains from Xinjiang – China’s largest cotton-growing region – after allegations over the use of forced labour began to surface in the US and European Union as early as 2019.

International clothing brands – most notably Nike and H&M – responded to those concerns in 2020 with statements disavowing any links to the region. The next year, when legislation began to work its way through Western legislatures, those statements resurfaced and sent Chinese internet users into a furore.

Outraged netizens called for a boycott, using the hashtag “I support Xinjiang cotton” to push consumers to avoid products from foreign firms in question and buy local as a form of patriotism.

But even with its considerable size, Hong said, the domestic market does not fill the void created by the departure of foreign customers.

“It is true that we are seeing our costs halved in Xinjiang, but our overall profits are nothing like before,” he said. “The orders just don’t make up.”

Xinjiang, a region in China’s far west with a surface area about three times the size of France, supplies one-fifth of the global cotton supply and 90 per cent of China’s own stocks. It has made international headlines as governments and media outlets – mostly in the US and Europe – alleged regional authorities have detained an estimated one million members of Muslim ethnic minority groups and subjected many to forced labour.

While Beijing has denied these allegations, the Uygur Forced Labour Prevention Act – a ban of all imports from Xinjiang unless a “rebuttable presumption” of forced labour can be successfully disputed – passed the US Congress in late 2021 and was enacted in June 2022.

Beijing responded forcefully, saying in a Foreign Ministry briefing companies that stopped using the “best cotton in the world” would only be harming themselves. But for authorities and businesses in Xinjiang, the ban – set to last eight years according to the legislation’s sunset clause, though the likelihood of indefinite renewal is high – has put immense strain on the local economy, which had one of the country’s lowest nominal GDPs even before the ban.

While there is little public data available to gauge the full impact the act had on Xinjiang’s economy, the region has seen a 54.6 per cent drop in foreign direct investment, with only US$50.14 million invested throughout 2021 according to the local government.

In terms of trade, Xinjiang’s total exports to the US in 2023 were valued at around US$373 million – a 92 per cent drop from 2020, according to Urumqi customs figures.

Xinjiang has historically relied on help from other regions and the central government to support its economic development. Since 2015, the local authorities have rolled out a multitude of investment incentives, attempting to grow the textile and apparel industry through tax rebates and subsidies for electricity and transport.

Hong and his partners – who have been running their towel business from export-heavy Jiangsu province for over a decade – only considered a move to the faraway arid region last year, when conditions were particularly bleak.

“We needed to find a way out,” Hong said. “We were losing one-third of our business just from Americans cutting orders. We were not even using Xinjiang cotton in our production, we imported it from Pakistan.”

Hong said the drop-off began in 2020 among his customer base, mostly buyers for international hotel brands. “They faced pressure to drop Chinese suppliers.”

Revenues went down 60 per cent. In response, the company has moved the lion’s share of its exports to a mix of closer markets, including South Korea, Japan and several countries in Southeast Asia.

“Before the sanctions, 70 per cent of our business was exporting overseas, half to the US,” Hong said. “Now it’s the complete opposite. Seventy per cent are local orders.”

Hong said his company decided to open a production line in Xinjiang after being offered a rent-free factory by the local government, 10 times the size of their 2,000-square-metre (21,528-square-foot) facility in Jiangsu.

“Electricity and labour costs are half of what we pay in Jiangsu. We just needed to buy our own equipment and use cotton from Xinjiang in production,” Hong said.

Thanks to heavy government subsidies like these, Xinjiang’s textile and apparel industry has grown considerably. By October 2023, there were 3,725 companies registered for the fabrics business in Xinjiang, almost six times the count from 2014. More than one-third came about via investments from elsewhere in the country, official figures revealed.

The region has also ramped up trade with its five Central Asian neighbours – Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan – which were the recipients of 66.9 per cent of Xinjiang’s exports during the first six months of 2024.

Customs data showed the value of these shipments totalled 147.6 billion yuan (US$20.7 billion), a 23.9 per cent increase compared to the same period last year.

Apparel and footwear now represent 60.7 per cent of China’s total export value to the five countries, with electronics coming in at 30 per cent, according to 2023 customs figures.

But the surge in trade with Central Asia has only made up for some of the shortfall in China’s textile exports, a problem exacerbated by lethargy in the broader economy.

Manufacturers in the field exported US$67.2 billion of goods in the first quarter, a year-on-year slump of 6.9 per cent according to Chinese customs data. Shipments to the US, EU and Japan shrunk by 18.4 per cent, 24.7 per cent and 8.7 per cent respectively during the period.

The trend is unlikely to be reversed any time soon, as the US has continued to strictly scrutinise the region’s textile trade and update the scope of its legislation accordingly. The state-owned Xinjiang Tianshan Wool Tex Stock, one of Xinjiang’s largest garment companies, was added to the act’s list of proscribed firms in September 2023 along with two other enterprises. Five metals and chemical companies were added to the list on Thursday, according to Reuters.

A person with direct knowledge of the company’s operations said it exported 20,000 fewer pieces of clothing in 2023 compared to 2022. There is no public information on how many pieces of clothing the company produces each year.

“Orders from the US are now virtually zero. The US and France used to be our biggest customers, but during the Covid period, France started cutting orders, too. Fortunately, Germany’s orders have remained stable,” the person said, adding other export destinations are unlikely to account for the loss of business.

China’s textile sector reported an export value of US$293.6 billion last year, an 8.1 per cent drop in export value compared to 2022. Fabrics and clothing contributed 8.6 per cent to the total value of China’s 2023 exports – a figure that also fell on a year-on-year basis, but only by 4.6 per cent.

Sheng Lu, a professor of fashion and apparel studies at the University of Delaware, said while China’s sector will “undoubtedly remain one of the world’s most competitive” given its manufacturing capabilities, geopolitics will continue to be a drag on exports.

“Due to deteriorating relations, sourcing from China is regarded as high-risk for US fashion companies,” Lu said. “This pushes [these] companies to reduce their ‘China exposure’ and move orders elsewhere. For Chinese manufacturers that heavily rely on exports, the worst may be yet to come.”

China reported weaker than expected economic growth in the second quarter of 2024, with a 4.7 per cent expansion year on year falling short of the government’s annual target of “around 5 per cent”. A slackening of demand appears correlative, as retail sales rose 2 per cent in June, year on year – a noteworthy slide compared with the 3.7 per cent growth seen in May, and the slowest rate of increase since China lifted its coronavirus restrictions at the end of 2022.

Clothing sales were hit particularly hard during that month, with a drop of 1.9 per cent reported despite growth of 1.3 per cent in the first half of the year. Of the discretionary items that Chinese consumers said they would cut back on when “uncertain about their financial prospects”, clothing ranked near the top. These results were published on July 9 in the 2024 McKinsey China Consumer Report, after a survey of nearly 12,000 respondents was conducted last year.

All these are worrying signs for Chinese policymakers, who have repeatedly stressed the importance of shifting the primary source of economic growth from manufacturing to consumption.

Hong, meanwhile, has been dealing with numerous challenges. On top of receiving smaller orders from hotels and restaurants for his towels this year, fierce competition from domestic players – bordering on “price-slashing”, he said – has led him to expect another 30 per cent drop in sales by December.

Chen Li, an analyst from Chinese think tank Anbound, said weak foreign and domestic demand, along with geopolitics-induced shifts in supply chains, would mean more undercutting among clothing manufacturers.

“Low prices lead to a decline in companies’ profit margins. In the long run, it will hinder corporate growth because companies are unable to invest more resources in brand-building, product innovation, and marketing,” Chen said. “Small and medium-sized enterprises will become extremely fragile, and likely to be eliminated in the market, thus having a major impact on the economy in the long run.”

With manufacturers duking it out over a shrinking pool of domestic demand, Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, said many will look to move production out of the country.

“Those with access to the international market [will] seek to expand overseas,” Zhang said. “It is a trend I expect to continue for the coming years.”

Sun Ruizhe, president of the China National Textile and Apparel Council, named “Arabic, Southeast Asian, Central Asian and African countries” as top destinations for Chinese businesses in a July speech to members.

With the broader economic picture still hazy, however, some companies are content to stay put.

Li Qingrong, general manager of Sichuan Firstlady Textile – another company promoting its wares at the China-Eurasia Expo in Urumqi – said business went down by one-third since Japanese clothing brand Uniqlo cancelled its orders over cotton sourced from Xinjiang.

“Now most of our buyers are Chinese,” she said. “They know how things work and exactly how much production costs, unlike foreign buyers who usually buy at a higher price. This has pushed our prices down further.” She expects another 20 per cent drop in sales by the end of the year.

“We don’t have particular plans, the economy is not looking great for everyone,” she said, adding that her family-owned business has nearly 300 employees.

Hong, still adjusting to running a factory in Xinjiang, said he has started to plan for the future despite this year’s gloomy outlook.

“We have to change our business model, from customising for other brands to creating our own brand for domestic customers,” Hong said.

“These things take time. We need to produce our products to a higher quality so even if we sell fewer, we can sell it at a higher price,” he said. “I think labelling products as ‘made with Xinjiang cotton’ would still do well in China.”