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• Chinese officials head to Indonesia for ‘2+2’ military and diplomacy talks
• China’s new green-transition guidelines show how the embattled industry will power on
• Tiny dinosaur tracks in northwest China could help to trace evolution of birds
• China admits Hong Kong-flagged ship destroyed key Baltic gas pipeline ‘by accident’
• Quirky news: China cockroach liberator, sun seeking human ‘seals’, cool criminal
• South China Sea: how will Manila answer as Beijing shifts tactics from water to sky?
• China’s central bank wary of bond bonanza as secondary trade talk continues
• China builds with manufactured sand, easing worry about overmining and environmental cost
• Trade, inflation data offers hope for China’s economy, but there is still a long way to go
• China couple seek loan from bank, manager allegedly demands sex from wife, then beats them
• First batch of Hong Kong ethnic minority pupils depart for mainland China tour
• Giant Chinese cargo drone lifts off on first test flight
• Chinese Olympic gold medallists Wang twins to begin PhDs in Hong Kong in September
• 6 dead, 10 hurt in China after lightning strikes pavilion as visitors sheltered from storm
• China’s central bank to extend lending support for decarbonisation projects until 2027
• Unit of Chinese developer R&F Properties defaults on US$147 million in interest payments
• As Philippines, Vietnam close ranks, China adopts ‘divide and conquer’ approach
• Is China’s coastguard about to go big offshore with new ocean-going mothership?
• China charity boss investigated over sex-for-cash demand to desperate mother of sick child
• China tackles sonic booms, Gen Z at risk of eating disorders: 5 weekend reads you missed
• China eyes anti-drone technology as key to future battlefield success
• China voices support for Iran’s ‘sovereignty’ in assassination’s aftermath
• Chinese mining firm files judicial review against Canada

Chinese officials head to Indonesia for ‘2+2’ military and diplomacy talks

https://www.scmp.com/news/china/diplomacy/article/3274228/chinese-officials-head-indonesia-22-military-and-diplomacy-talks?utm_source=rss_feed

Senior Chinese diplomats and military officials will hold their first “2+2” talks with their Indonesian counterparts this week, as Beijing seeks closer ties with the Southeast Asian power.

According to the Chinese foreign ministry, the two sides will “exchange views on China-Indonesia relations and international and regional issues of common concern”.

Foreign vice-minister Sun Weidong and Zhang Baoqun, deputy director of the Central Military Commission’s Office for International Military Cooperation, would lead the mission to Jakarta, it said, without specifying when the discussions would start.

The 2+2 diplomatic and security dialogue was launched last year after Chinese President Xi Jinping met his Indonesian counterpart Joko Widodo in July.

China and Indonesia have close ties in various areas, including trade, investment and diplomacy, and the talks are designed to build strategic mutual trust between the two.

Indonesia is also one of the founding members of Asean – the Association of Southeast Asian Nations – and the biggest economy in the bloc.

China has been in talks with Asean for years over a code of conduct to mitigate the risk of conflict in the hotly contested South China Sea, but the progress on the code has been slow.

Chinese Foreign Minister Wang Yi said earlier this year that Beijing hoped to speed up the negotiations.

During his visit in Jakarta in April, Wang called for better security and political cooperation between the two countries and for the two sides to firmly support each other on core interests.

Various countries, including China, have overlapping claims in the South China Sea’s resource-rich waters but Indonesia has said it is not one of them.

Nevertheless, Jakarta does have sway in the region on the issue. It also says its exclusive economic zone in the North Natuna Sea falls within China’s so-called nine-dash line, which Beijing uses to demarcate its claim to around 90 per cent of the South China Sea.

The two countries have clashed over fishing rights in the North Natuna Sea. In some cases those clashes have flared into skirmishes, including in December 2022, when the China Coast Guard sent in the 5901, the world’s largest coastguard vessel.

In recent months, China has also engaged in stand-offs with the Philippines, another Asean member, over contested islands and shoals – disputes that it has accused the United States of meddling in.

Asean is China’s biggest trading partner, with bilateral trade volume reaching 3.92 trillion yuan (US$547 billion) in the first seven months, up 10.5 per cent from a year earlier, according to data released last week by the General Administration of Customs of China.

The trade with the bloc accounted for 15.8 per cent of China’s total for the period.

Meanwhile, China has been Indonesia’s top trading partner for 10 years and a major source of investment in the country.

South Korea and China also held vice-ministerial level 2+2 talks in June, as part of an agreement reached in May between South Korean President Yoon Suk-yeol and Chinese Premier Li Qiang.

China’s new green-transition guidelines show how the embattled industry will power on

https://www.scmp.com/economy/economic-indicators/article/3274218/chinas-new-green-transition-guidelines-show-how-embattled-industry-will-power?utm_source=rss_feed

Amid rising protectionism worldwide, Beijing has vowed to accelerate China’s green transformation while also calling for greater global collaboration in its unveiling of a 33-point set of guidelines that signal leadership’s first systematic deployment of green targets.

“We must adhere to a safe transformation at work,” said the guidance for “accelerating a comprehensive green transition in all economic and social sectors” that China released on Sunday.

The document stressed the need to “properly prevent and resolve internal and external risks and challenges faced by the green transformation; effectively ensure food and energy security; [and protect] industrial supply-chain security”.

The main objectives aim to achieve “remarkable results” in the green evolution by 2030, and to basically establish a green, low-carbon and circular development economic system by 2035, according to Xinhua.

An unidentified official with the National Development and Reform Commission (NDRC) – China’s economic planner – said the guidelines were being promulgated as China has made historical achievements in green and low-carbon development, which includes the world’s biggest and most complete new-energy industrial chain, and also because the green transformation has faced challenges and “setbacks”.

“Environmental and climate issues are increasingly politicised, and green trade barriers are escalating,” the official warned.

In 2023, China made more than 80 per cent of solar panels in the world, along with 75 per cent and 60 per cent of the world’s lithium batteries and electric vehicles, respectively.

That dominance has sparked wariness and tariff actions from the United States and the European Union, which have accused China of strangling their own manufacturing sectors via overcapacity in its new-energy industries.

After Beijing acknowledged in December that overcapacity in some industries posed a major risk to economic growth, officials have been refuting Western claims of overcapacity in recent months. They also contend that cheaper and better green products from China are helping to alleviate inflation and accelerate the green transformation worldwide.

Compared with old targets in China’s green transformation, the new guidelines particularly highlight the “guiding role of industry and consumers”, said a note from Huatai Securities.

For the first time, the document proposed that the scale of the energy-conservation and environmental-protection industry will reach about 15 trillion yuan (US$2.09 trillion) by 2030.

It also set a target for the annual utilisation of bulk solid waste, which will reach about 4.5 billion tonnes by 2030.

Meanwhile, it unveiled detailed plans for promoting green consumption, including expanding the scope and scale of green products in government procurements, and encouraging green consumption among consumers through measures such as issuing consumption coupons.

The guidelines also reaffirmed existing goals such as raising the share of non-fossil consumption to 25 per cent by 2030, and gradually reducing coal consumption in the next five years.

China’s heavy reliance on coal power is still one of the biggest challenges facing its green transformation, the NDRC official said.

Despite an aggressive push to install wind and solar farms in recent years, the substitution rate for new energy in the overall power supply has been slow, with the unpredictable nature of these sources leading to consumption bottlenecks.

Thermal power remains the backbone of China’s electricity grid. In 2023, the share of thermal power was 69.9 per cent, down by only 1.3 percentage points compared with 2020, according to a Fitch Ratings report earlier this year.

And it said the shares of wind and solar power were 9.1 per cent and 3.3 per cent last year, respectively, 3.5 and 1.4 percentage points higher than in 2020.

In the document, China also called for international cooperation on the green transition by enhancing South-South cooperation and cooperation with neighbouring countries, and for providing support to developing countries as much as China’s capability allows.

Tiny dinosaur tracks in northwest China could help to trace evolution of birds

https://www.scmp.com/news/china/science/article/3274148/tiny-dinosaur-tracks-northwest-china-could-help-trace-evolution-birds?utm_source=rss_feed

Tiny fossilised footprints that may have belonged to dinosaurs smaller than chickens have been found in northwest China for the first time, in a discovery that could shed light on the evolution of birds.

The five three-toed fossil footprints found in Gansu province measure between only 1cm (0.39 inches) and 3cm (1.18 inches) across. They are believed to belong to one of the smallest dinosaurs ever discovered – a tiny genus of bipedal terrestrial dinosaurs called Minisauripus.

“We estimate that the body length [of the dinosaurs] is about 25cm (9.84 inches), but the tail should account for at least half of the length,” said Xing Lida, a palaeontologist and associate professor at the China University of Geosciences.

In comparison, house sparrows typically have a body length of about 17cm (6.69 inches), a pigeon measures around 35cm (13.8 inches) from head to tail, and a domestic chicken typically measures between 40 and 60cm (15.7-23.6 inches) long.

Similar footprints dating to the early Cretaceous period – which lasted from 145.5 to 100.5 million years ago – were first discovered in the Sichuan Basin in southwest China, and have also been found in the eastern province of Shandong as well as in South Korea.

The discovery of the latest tracks – found in the recently declared Linxia Unesco global geopark – expands the known habitat of the Minisauripus into one of the most abundant regions for fossils in China.

The footprints were found in August last year by employees from a dinosaur museum within the park, after continuous rainfall exposed the tiny marks on the weathered rock surface.

According to Xing – who was part of the team that examined the earlier footprint find in southwest China – the latest discovery could help researchers to gain further insight into the evolution of birds.

“The miniaturisation of dinosaurs was a key factor in their evolution into birds, and it was a very important evolutionary event,” he said.

Ripple marks on the rocks in Gansu suggested that the dinosaurs who left the tracks may have been active next to water. Waterbird footprints were also found alongside the tracks, which was consistent with similar finds in other regions, Xing said.

According to Xing, studying the tracks could also help to shed light on dinosaur behaviour, including how they interacted with their environments.

In a paper published in 2016, Xing and his colleagues estimated that an adult Minisauripus may have had an estimated body length ranging from just 12cm (4.72 inches) up to 71cm (28 inches).

The Minisauripus is the smallest carnivorous theropod genus known to science that is not part of the Avialae, the only group of dinosaurs with living representatives – today’s birds, according to the paper.

The researchers acknowledged in the paper that there was a possibility the miniature tracks belonged to a juvenile from a slightly larger species.

China admits Hong Kong-flagged ship destroyed key Baltic gas pipeline ‘by accident’

https://www.scmp.com/news/china/diplomacy/article/3274120/china-admits-hong-hong-flagged-ship-destroyed-key-baltic-gas-pipeline-accident?utm_source=rss_feed

Beijing has admitted that a Chinese-owned ship damaged a critical Baltic Sea gas pipeline running between Estonia and Finland last October, but says it was an accident.

The South China Morning Post understands that the Chinese authorities conducted an internal investigation and recently communicated the results to the authorities in the European countries.

The Chinese-language report said the accident was the result of a strong storm.

Both countries are still carrying out a joint criminal inquiry centred on the NewNew Polar Bear, a container ship that was flying the Hong Kong flag at the time of the event. Its registered owner is the Chinese mainland firm NewNew Shipping Line.

While it is understood that the report is circulating in various ministries, it is not submissible as official evidence in the investigations. Authorities in both capitals urged Beijing to respond to their urgent requests for information on the ship.

A spokeswoman for the Estonian prosecutor said the document had not been sent to that office and that it “can’t be used as evidence in an Estonian criminal investigation” in any case.

“We submitted a legal aid request to the Chinese authorities to gather evidence from the vessel and its crew,” said Kairi Küngas, its head of public relations.

“In order to execute the legal aid request, the Chinese authorities can carry out the investigative operations by themselves or involve Estonian investigators, although all activities conducted on Chinese territory must conform to local legislation.

“The Chinese authorities have not provided a response on executing the legal aid request as of yet.”

A spokeswoman for the Finnish National Bureau of Investigation (NBI) declined to confirm whether it had received a document, but said its own inquiry was ongoing.

“During the investigation, co-operation with the Chinese authorities has been done and among others NBI has submitted a request for legal assistance to the competent Chinese authorities,” said Anna Zareff, NBI’s head of communications, in a written statement.

“It must be stated that the investigation is still ongoing and final conclusions, what was behind these incidents (technical failure–negligence/poor seamanship–deliberate act), can be made only after all necessary investigative measures have been finalised and this will still take some time,” her statement said.

The Chinese foreign ministry did not respond to a request for comment.

Authorities in the two EU member states have said that the ship dragged its anchor along the seabed, slicing through a crucial gas cable and also damaging two telecoms cables running between the two countries on the night of October 7 or morning of October 8.

Statements from Finnish investigators at the time described a “1.5 to 4 metre-wide [5-13ft] dragging trail” leading to the “point of damage in the gas pipeline”.

“In the distance of a few metres from the gas pipeline damage point, there was an anchor which is believed to have caused the wide dragging trail and the damage itself,” the October 24 statement said.

It added that once the anchor was lifted, there were “traces in it which indicate it had been in contact with the gas pipeline”.

The 77km (48-mile) Balticconnector pipeline is a key source of energy for Finland.

Sources said the Chinese-language report claimed to have been conducted in line with International Maritime Organization rules.

The Chinese Ministry of Justice has yet to respond to detailed queries from Estonia and Finland. It is understood there has been willingness voiced to comply with the European probes at a later date.

That assurance came in response to comments by Estonia’s state prosecutor Triinu Olev in May that Beijing had yet to provide any information.

“We need to collect additional evidence to determine whether the damage was caused intentionally or by accident,” Olev said at the time.

After the incident, the NewNew Polar Bear sailed to St Petersburg, and was subsequently photographed in the Arkhangelsk region of Russia, before eventually docking in Tianjin.

Last November, the Finnish authorities said Beijing had pledged to fully cooperate with the investigation and in January then-president Sauli Niinisto held what Helsinki described as “constructive” talks with Chinese leader Xi Jinping about the damaged pipeline.

The October incident came at a time of heightened suspicion among Baltic states towards China, largely due to its close ties with Russia in the wake of the invasion of Ukraine. This closeness towards Moscow has also caused a more general deterioration in relations with the European Union.

The damage to the pipeline also raised further alarm about the vulnerability of undersea infrastructure.

It followed the destruction of the Nord Stream 1 and 2 gas pipelines connecting Russia and Germany in September 2022 in a series of explosions that have yet to be explained.

Quirky news: China cockroach liberator, sun seeking human ‘seals’, cool criminal

https://www.scmp.com/news/people-culture/trending-china/article/3274155/quirky-news-china-cockroach-liberator-sun-seeking-human-seals-cool-criminal?utm_source=rss_feed

The Post takes a look at the latest weird and wacky stories from around China, such as a woman who deliberately released cockroaches into a community, crowds that bask in the sun like seals and a man who steals air-conditioning units.

A woman set free dozens of cockroaches in a residential community in northern China, triggering a backlash in the neighbourhood.

The woman was captured on video releasing five small boxes of the insects on the grassy area of a block of flats in Hebei province earlier this month, the Xiaoxiang Morning Herald reported.

When the resident who was filming asked her if she was a neighbour, she did not directly answer the question, but instead asked: “Why are you filming me?”

After the video was shared among locals, many people were irked and expressed concern about the health hazards the insects could bring.

The next day, the property management company sent workers to kill the cockroaches and sterilise the area.

A similar incident unfolded in southern Guangdong province last year. Property managers discovered the culprit was a resident who promised he would not do it again.

A novel health trend in Shanghai has seen people flock to parks and revealing only their backs to the sun, looking like colonies of seals.

The back-baskers lie on their stomachs on yoga mats or chairs they bring with them. They lift their tops to expose their backs, with some women undoing their bras, the Xinmin Evening News reported.

According to a traditional Chinese medicine (TCM) theory, back basking during the hottest period of the year can drive away damp and cold inside the body.

“I’ve been doing this for some days. It’s more comfortable than a sauna and is effective in letting out dampness,” a woman told the newspaper.

She said she did not bask her back at home because she preferred the clean air in parks.

A security guard at the city’s Fuxing Park said followers of the health regimen usually arrive before 10am or after 4pm to avoid the hottest time of day.

The worker said they could not stop the practice because there is no regulation that bans it, although some visitors have complained that it is not civilised.

Health experts say it is potentially dangerous to sunbathe for longer than 20 minutes in extreme heat.

A man in central China has been arrested for stealing 20 air conditioners and selling them at vast profit during hot summer days.

The man, surnamed Ai, was caught by police in mid-July in Changsha, Hunan province, central China, where temperatures reach 40 degrees Celsius in summer, reported the Changsha Evening News.

He said he carried out the thefts in the evenings by targeting shops or other businesses without staff on duty at night.

He stole air conditioners because they sold like hot cakes during a heatwave. Police are still trying to trace the machines he stole.

People on mainland social media condemned the man.

“Stealing air conditioners in such hot weather is like intentional killing,” said one person.

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South China Sea: how will Manila answer as Beijing shifts tactics from water to sky?

https://www.scmp.com/week-asia/politics/article/3274215/south-china-sea-how-will-manila-answer-beijing-shifts-tactics-water-sky?utm_source=rss_feed

A recent incident involving Chinese air force actions in the South China Sea has intensified concerns in the Philippines that Beijing’s aggressive maritime tactics in the disputed territory could increasingly be used in the sky.

Analysts said Manila must urgently establish clear rules of engagement and bolster its air force capabilities to manage potential future conflicts. However, they did not believe it would lead to the country invoking its Mutual Defence Treaty (MDT) with the United States, as that might escalate the situation into a direct military conflict, which the treaty is meant to deter.

According to the Philippine military, one of their air force transport planes was on a maritime patrol on Thursday when People’s Liberation Army (PLA) Air Force fighter jets reportedly performed “dangerous and offensive manoeuvres” close to the PAF aircraft and dropped eight flares in its path.

China justified its action on Saturday by saying the PAF aircraft had “illegally” entered the airspace of Huangyan Dao, the Chinese name for the Scarborough Shoal in the West Philippine Sea, Manila’s term for the waters of the South China Sea that lie within its exclusive economic zone.

In a statement on Sunday, President Ferdinand Marcos Jnr denounced China’s action describing it as “unjustified, illegal and reckless”.

It was the first reported incident involving the PLA Air Force disrupting a PAF operation since Marcos assumed office in June 2022.

Marcos’s military chief, General Romeo Brawner Jnr, also condemned the incident, saying it had endangered the lives of PAF personnel.

Filipino defence analyst Vincent Kyle Parada, a researcher at the S. Rajaratnam School of International Studies in Singapore, told This Week in Asia that the PLA Air Force’s deployment of flares was a deliberate, wilful, and provocative action but not one meant to produce lethal results.

“If the incident did result in loss of life on the part of Filipino personnel, it’s certain that the US would mount some type of military response or show of strength in the South China Sea in accordance with MDT,” Parada said.

“But whether it leads to active warfare is entirely dependent on Manila. Obviously, China and the Philippines are rational actors – they want to avoid a war. The MDT serves the country’s interest best as a deterrent. It’s there specifically to ensure we do not reach a point in which armed conflict seems inevitable. If Manila invokes it soon and Beijing does not back down, then it loses a big part of the MDT’s advantage,” he explained.

Grey zone in the sky

Abdul Rahman Yaacob, a research fellow with the Southeast Asia programme of the Lowy Institute think tank, told This Week in Asia that Manila should anticipate similar actions by the PLA Air Force in the future.

“What we can expect is for the Chinese to employ grey zone tactics in the air,” he said, referring to tactics aimed at asserting dominance without crossing the threshold into open warfare. “The main objective is to curtail the Philippines’ military activities in the air domain and to exert dominance control in the contested area of the South China Sea.”

China has frequently been accused of using grey zone tactics, such as firing water cannons and high-intensity laser at Philippine vessels, as a major component of its strategy to gain control of the South China Sea.

The Philippines and China recently reached an agreement to de-escalate tensions in the disputed waters following an incident on June 17 incident in which several Filipino sailors were injured during a clash with Chinese forces while on a resupply mission to a military outpost on the Second Thomas Shoal.

The agreement, the details of which have not been made public, reportedly outline the terms under which the Philippines can carry out such missions with China’s approval.

Despite that, Parada said China still has a vested interest in disrupting Philippine operations in the South China Sea.

“As it pulls back on grey zone tactics at sea, it could very well start employing those same tactics in the air. It’s a shift in China’s approach that the Philippines should be prepared for,” Parada explained.

“Risks increase exponentially at thousands of feet in the air compared to a ship. Like China, there needs to be a fundamental shift in our response in the West Philippine Sea. That means establishing clear rules of engagement that mitigate ambiguity during these confrontations, while at the same time, empowering personnel in the field to be capable of independent action to ensure their safety,” he added.

The incident at Scarborough Shoal occurred days after the Philippines conducted maritime patrol and air drills with US, Australian and Canadian forces under the auspices of the United States Pacific Air Forces (PACAF) in the West Philippine Sea.

In October 2023, the Philippines complained that one of their navy patrol ships had been tracked by Chinese air and naval forces near the Scarborough Shoal. A PLA Air Force spokesperson said the ship had trespassed into Chinese waters and was “tracked, monitored, warned and restricted” for seriously violating “China’s sovereignty and international law”.

In 2012, Beijing seized the shoal, a traditional fishing ground within the 200-nautical-mile exclusive economic zone of the Philippines, after a two-month stand-off with the Philippine Navy.

In 2016, a UN arbitration court ruled in favour of the Philippines’ territorial claims in the South China Sea, finding that China’s assertion of historic and economic rights over most of the maritime region, including the Scarborough Shoal, has no legal basis. China has rejected the ruling as illegitimate.

Projecting air power

Parada said that for decades, the Armed Forces of the Philippines had primarily focused on being an army-centric institution, specialising in counter-insurgency, counterterrorism, and jungle warfare, with the result being that its air force and navy have lagged behind many of its contemporaries in Southeast Asia.

“The shift to air power is definitely a cause for concern for the Philippines. While efforts have been underway to boost the capabilities of these major services, the PAF has less than 30 combat aircraft currently in service. The vast majority of its assets are dated – trainer, utility, or reconnaissance aircraft that go as far back as the early days of the Cold War,” he said.

Parada said that disparity is why the Philippines’ military modernisation plan, Re-Horizon 3, has prioritised the acquisition of multi-role fighter jets in addition to upgrades to the country’s naval forces.

Joshua Espeña, a resident fellow and vice-president of the International Development and Security Cooperation, said that China will continue to employ all domains of warfare to intimidate the Philippines even as Manila modernises its air and naval forces.

“We can see this similarly with Taiwan’s experience with the PLA Air Force’s almost daily incursions. So, it is apt to know those lessons for the Filipino context,” he said. “As the Philippines projects its increasing air power to garner international support, so does China negate it by immediately testing those toys through intimidation.

Espeña said “the threat of force is useful on the Chinese side to enforce their interpretation of diplomatic deals with the Philippines. To be clear, there is no pivot to the air, but a Chinese parry to what Filipino forces are trying to project.”

China’s central bank wary of bond bonanza as secondary trade talk continues

https://www.scmp.com/economy/china-economy/article/3274212/chinas-central-bank-wary-bond-bonanza-secondary-trade-talk-continues?utm_source=rss_feed

China’s central bank has taken a more vocal stance towards secondary market bond trading, suggesting tough action – punishment of rule violators or direct intervention – could be in the works as it attempts to fend off a domestic bond frenzy and optimise its yield curve, analysts said.

The People’s Bank of China said it would gradually increase the buying and selling of treasury bonds in its open-market operations in its latest quarterly monetary policy report on Friday.

It also mandated stress tests for financial institutions’ bond asset exposure to mitigate interest rate risk, and pointed out some bonds and their by-products had been leveraged for “obviously higher” yields than their underlying assets, another source of potential risk.

“This series of warnings is of particular concern,” wrote GF Securities analyst Zhong Linnan in a research note, adding the present unilateral expectations of interest rate cuts could change dramatically with PBOC’s operations, regulations and outlook on expectation management.

On Wednesday, the National Association of Financial Market Institutional Investors (NAFMII) – an affiliate of the PBOC – announced an investigation into four state-owned banks accused of manipulating government bond prices in the secondary market and channelling benefits through these actions.

That followed the central bank’s unusual step of selling treasury bonds on the secondary market to inject liquidity and address issues such as mounting local debt in early June.

In a Sunday report, Guosheng Securities said the call for a “risk test” reflects the central bank’s concern over rapidly falling interest rates, indicating a shift from “anticipation guidance” to “field operation.” This change could lead to increased short-term volatility in the bond market.

As of Monday at close of business, the 10-year government bond yield stood at 2.2135 per cent, up 6.25 basis points from the previous trading day.

The central bank also removed references to “cross-cyclical adjustment” from its statement – instead, emphasising the strengthening of countercyclical measures – amid expectations of a more relaxed external environment as the likelihood of a US Federal Reserve rate cut increases along with the need to bolster domestic demand.

“We need to strengthen countercyclical support, boost the economy’s sustained movement towards a positive trend, and create a favourable monetary and financial environment to achieve our annual economic and social targets,” it said.

In its statement, the PBOC said it will advance market-based interest rate formation, explore narrowing the interest rate corridor and encourage financial institutions to enhance their independent pricing capabilities, leading to a steady reduction in the costs of corporate financing and residential credit.

“We will also prevent capital idleness and ensure that financial institutions actively identify and fulfil effective credit demands,” it said.

China builds with manufactured sand, easing worry about overmining and environmental cost

https://www.scmp.com/news/china/science/article/3273891/china-builds-manufactured-sand-easing-worry-about-overmining-and-environmental-cost?utm_source=rss_feed

About 80 per cent of the sand used in China’s construction industry today is manufactured, marking a turning point in human engineering and offering hope to solve a major crisis for the world, according to a new study.

Sand has been used in buildings for at least 60,000 years. It is the second most used resource on earth after water. Rapid population growth and urbanisation in recent decades have accelerated the depletion of natural sand reserves.

The United Nations Environment Programme (UNEP) estimates that 50 billion tonnes of sand and gravel – stones larger than sand – are extracted for construction every year, enough to build a wall 27 metres wide and 27 metres high (88 x 88 feet) around the planet.

China – where the urbanisation rate has soared from 17 per cent to 58 per cent over the past four decades – is particularly hungry for sand. The UNEP warned that the world might soon run out of sand resources because of the huge demand from China and other rapidly developing countries.

“We cannot extract 50 billion tonnes per year of any material without leading to massive impacts on the planet, and thus on people’s lives,” UNEP researcher Pascal Peduzzi told the BBC in 2019.

However, according to a recent study published in the journal Nature Geoscience last month, China’s overall sand supply – which increased by about five times between 1995 and 2020 – comes mostly from man-made sand, which is produced by mechanically crushing and sieving rock or mine tailings.

The study was a collaboration between international researchers from institutes that include the Research Centre for Eco-Environmental Sciences under the Chinese Academy of Sciences, Leiden University in the Netherlands and the University of Cambridge in Britain.

The team built a dynamic monitoring system, known as “material flow analysis”, and found that China’s sand supply patterns “fundamentally shifted” over the study period, with the dominant source shifting from natural sand to manufactured sand, which grew rapidly at an average annual rate of 13 per cent and surpassed natural sand after 2011.

By contrast, natural sand supply increased rapidly from 2000, peaking in 2010, and declining since then. In 2020, the proportion of natural sand compared with total sand supply stood at only around 21 per cent – down from around 80 per cent in 1995.

It represents a landmark in the history of human civil engineering, especially considering that China’s sand consumption is an outstandingly high percentage of global use.

In the absence of accurate data on global sand mining and use, cement production is usually used as an alternative method of estimation, as the raw material for construction is cement, water, sand and gravel. According to available UNEP data, China alone accounted for almost half of global cement production in 2012.

Song Shaomin, a professor at Beijing University of Civil Engineering and Architecture who was not involved in the study, said he was not very surprised by the findings. He said the percentage of manufactured sand in the Chinese market could now be close to 90 per cent.

Song said that driven by unprecedented urbanisation and economic development of the world’s largest developing country, especially since 2010, China’s natural sand reserves had been drying up and the price of sand has been rising, prompting the construction industry to seek an alternative source: manufactured sand.

Machine-made sand production started to thrive when the government tightened the regulation of sand mining in rivers in 2016. Illegal sand mining was targeted that same year after an environmental protection inspection group led by ministerial-level officials was set up.

Since then, regulations and strict policies have been put in place to restrict natural sand mining. Medium and large construction aggregate production lines have sprung up to meet market demand in a greener and cheaper way, Song said.

At present, two or three suppliers along the Yangtze River have an annual production capacity of 70 million tonnes or more, a capacity that ranks among the top five in the world.

“The shift from natural sand to manufactured sand is a miracle for a country that has completed such massive infrastructure construction, and a must for China’s high-quality development,” Song said.

The sustainable use of sand has become a global focus in recent years, as it is not only a resource issue, but sand mining could also pose environmental threats such as riverbank erosion, loss of biodiversity and deterioration of water quality if left unregulated.

“China’s practice provides a reference to the transition to alternative sand supplies for the world,” the authors say, adding that mitigating the impact on natural sand resources during industrialisation and urbanisation was possible.

Trade, inflation data offers hope for China’s economy, but there is still a long way to go

https://www.scmp.com/economy/economic-indicators/article/3274077/trade-inflation-data-offers-hope-chinas-economy-there-still-long-way-go?utm_source=rss_feed

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China has, for quite some time, been .

Exports will, it is expected, provide a pillar for China as they have in the past, but getting people inside the country to part with their hard-earned cash has long troubled officials in Beijing.

has not yet grabbed the imagination of consumers, as June’s retail sales fell to their

But while it is too early to celebrate, July’s trade and inflation data could offer some hope that Beijing’s push to get people spending may have had some effect.

Firstly, analysts said the suggested a silver lining in the form of an initial recovery in domestic demand, driven by the electric vehicle sector.

China’s exports, a major growth engine in the first half of the year, to US$300.6 billion. But it was the reading for imports – considerably beating expectations and rising by 7.2 per cent from a year earlier, compared to the 2.3 per cent decrease reported in June – that could be an initial sign of a rally in domestic demand.

Analysts expect imports to continue to pick up in the coming months, with Beijing offering more support as domestic demand has been named as a top priority.

China’s consumer price growth also rose more than expected in July, rebounding to a five-month high.

The consumer price index (CPI), a key gauge of inflation, compared to an increase of 0.2 per cent in June, also beating expectations of 0.29 per cent growth.

Amid an overall economic slowdown, consumers in China have been unwilling to spend due to a prolonged property slump and a bleak job market, with the CPI having stagnated around zero since April last year.

But last month, food prices propped a surprise increase in CPI, which analysts expect to continue in the coming months.

With those hopes came caution, though, as observers added this should not be a sign for Beijing to change its plans for further monetary easing, with interest rate cuts still expected this year.

China still has a long way to go to ensure it meets its “around 5 per cent” annual target for economic growth, which is set to be tested by external headwinds like

Looming tariffs from the European Union and United States are also set to disrupt these efforts, with also seeking to protect their domestic industries from China’s overcapacity.

60-Second Catch-up

China’s consumer inflation slightly improves in July amid Beijing’s spending drive.

China’s export growth held up, but imports offer hope for domestic demand.

Explainer: China’s trade ‘unevenness likely to continue’ as July data offers mixed bag.

China’s consumption drive falls on deaf ears as consumers remain cautious, ask for more.

SCMP Plus: Michael Spence on China’s future in a tech-driven world.

Explainer: Is support coming at the right time for China’s economy? 4 takeaways from July’s PMI data.

Deep dives

Mao Zhenhua is the founder of China Chengxin Credit Rating Group and co-director of Renmin University’s Institute of Economic Research. He is a regular commentator on China’s economy, has been a professor at the University of Hong Kong’s Business School since 2022, and was among the first to warn about the underlying pressure on China’s property prices.

In this latest interview in the Open Questions series, Mao analyses China’s struggling property sector, reflects on US-China tensions, surveys the results of the highly anticipated third plenum and examines the changing nature of Hong Kong’s role in the broader economy. For other interviews in the Open Questions series, click .

Read more.

Justin Lin Yifu is a professor of economics at Peking University and former chief economist at the World Bank. His theory of “new structural economics” – which advises governments of developing countries to take an active role in building and optimising their industrial base – is widely believed to have influenced Beijing’s economic policies over the past decade, and he has predicted China will “surpass the US, as measured by market exchange rate, around 2030” and surmount the middle-income trap “within two or three years”. He was a counsellor for China’s State Council from 2013 to 2023.

In this latest interview in the Open Questions series, Lin elaborates on his projections, analyses the documents issued in the wake of the highly anticipated third plenum and expounds upon the relationship between governments and markets. For other interviews in the Open Questions series, click .

Read more.

Beijing’s strategy to reshape China’s trade profile to boost exports to Southeast Asia has been put to the test by a growing array of barriers in the region that are responding to supply chain shifts, analysts said, with the curbs also coming at a time of weakening shipments to the 10-nation bloc.

China is facing a surge of trade restrictions amid concerns of industrial overcapacity – as it produces more of certain good than it is able to sell or use – and Vietnam became one of the latest countries to officially launch an anti-dumping investigation into certain types of hot rolled coil steel from China and India late last month.

Read more.

Warning signs are flickering for China’s economy – of which the export sector has been a major growth engine in the first half of the year – after concerns about a recession in the United States triggered a massive global stock market sell-off at the start of this week.

A spate of global macro events – weak job data in the US, rising tensions in the Middle East, unsustainable valuations of artificial intelligence-driven tech stocks and policy tightening by the Bank of Japan – wiped out more than US$6 trillion from stocks worldwide on Monday, with leading US equity benchmarks suffering their worst days in two years.

Read more.

Chinese investors – nudged into cryptocurrencies and overseas exchanges by a persistent bear run at home – may have inadvertently moved from frying pan to fire, after a devastating rout on Monday wiped out trillions in value from global markets.

While some are feeling the burn and debating whether to cut their losses and exit these markets entirely, more say they will keep the faith, electing to hold their positions and not move their remaining capital into domestic bourses.

Read more.

Average temperature reached record highs in China in July, but Shenzhen’s indoor ski resorts offered a stark contrast to the heat that had descended on China’s Southern tech hub, while also providing a boost to cooling consumption that is weighing on the national economy.

With sub-zero temperatures, artificial snow, glass igloos and customers bundled up in colourful ski gear, indoor skiing has emerged as a surprise hit in Shenzhen, with bookings via Chinese shopping platform Meituan almost tripling in July from the previous month, according to CCTV.

Read more.

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China couple seek loan from bank, manager allegedly demands sex from wife, then beats them

https://www.scmp.com/news/people-culture/trending-china/article/3274139/china-couple-seek-loan-bank-manager-allegedly-demands-sex-wife-then-beats-them?utm_source=rss_feed

A wife and husband in China who went to a bank to get a business loan have accused a manager at the finance outlet of sexual and physical assault.

The couple from Gansu province in north-central China recently posted a video on Douyin, accusing a bank employee of the crimes.

In the video, they show their identity cards to attest to the truth of their claims.

The husband, Du Hongbin, said they were applying for a loan for their business from a manager, surnamed Tian, at a branch of the Agricultural Bank of China in a county in Gansu.

Tian has been accused of repeatedly harassing Du’s wife, Zhao Yufeng, under the pretext of approving the loan, including requesting private meetings and sexual favours.

Du had several heated arguments with Tian about his behaviour over the phone.

Nevertheless, on July 28, the couple went to Tian’s home to discuss the details of the loan.

The couple claimed that when they arrived, Tian, his wife and their two sons, assaulted them, locked the door, and smashed their mobile phones to prevent them from recording anything.

“Tian hit us on the head with an ashtray and a wooden stick and even demanded we kneel and beg for mercy,” said Zhao.

She said he later destroyed many items in his home, placed a kitchen knife in her unconscious husband’s hand, and called the police.

But Tian claimed Du and Zhao came to his home to cause trouble, and he acted in “self-defence”, resulting in their injuries.

The police sent the couple to hospital.

“My husband needed about 20 stitches on his face, and I had 17 on my forehead. I also have a fractured orbital bone. We were both badly injured and hospitalised for several days,” Zhao said.

On August 7, the local government announced that Tian had been suspended from his position at the bank, and he and his family members had been detained by the police for further investigation.

The incident has caused much discussion on mainland social media.

“Tian and his family are demons,” one Weibo user wrote.

“Why did Tian ask the couple to discuss loan matters at his home? This should clearly have been handled at the bank,” said another.

“The bank’s personnel management is worrying. This employee should not only be fired but also bear the criminal responsibility,” a third person said.

In China, people convicted of causing intentional injury face three to 10 years in prison.

First batch of Hong Kong ethnic minority pupils depart for mainland China tour

https://www.scmp.com/news/hong-kong/society/article/3274164/first-batch-hong-kong-ethnic-minority-pupils-depart-mainland-china-tour?utm_source=rss_feed

A group of ethnic minority pupils in Hong Kong has left for mainland China using new five-year travel permits for non-Chinese permanent residents in the city, the first school tour of its kind designed to foster a better understanding of the nation.

The Yau Tsim Mong Multi-Ethnic Youth Cross-Cultural Innovation Exchange Tour kicked off on Monday, taking a group of more than 20 multi-ethnic pupils from Yaumati Kaifong Association School on a three-day trip in Guangzhou and Foshan.

Cheung Ka-hou, the general director of Yaumati Kaifong association, said the trip would help pupils understand the latest developments in the country.

“Many of the multi-ethnic students are born and raised in Hong Kong, but have few opportunities to visit mainland,” said Cheung ahead of the group’s departure on Monday. “This tour will help them better understand the country and enhance their sense of belonging.”

Starting from July 10, non-Chinese permanent residents of Hong Kong and Macau may obtain a five-year travel permit with multiple entries to the mainland for short-term purposes such as investment, visiting relatives, tourism, business, seminars and exchanges.

The permit holders can spend up to 90 days for each stay on the mainland and enjoy self-service clearance at control points.

Cheung said the permit “makes it much easier” for them to organise such cross-border tours.

“The new permit has a 5-year validity period and unlimited entries, so students with the permit can participate in these tours held by schools and other organisations every year in a timely manner,” he said.

During the tour, pupils will stop by the GAC Technology Museum in Nansha, Guangzhou and Foshan Zumiao Museum, a well-preserved historical Confucian temple and ancestors’ hall, among other things.

Diallo Hafsatu, 12, from Africa, was excited to learn about Chinese culture and arts during the trip.

“I really want to visit the Ip Man Tong in the Zumiao Museum,” said Hafsatu, referring to the hall in the museum which is dedicated to martial arts legend Ip Man.

“As these are world-famous martial arts masters, I hope to be inspired by learning how they persevered.”

Her mother, Diallo Binta, 37, said in the past they had to apply for a visa and pay expensive visa fees each time.

“[In the past] we only had valid permits for like three months, and we are only allowed single entry,” said Binta. “The school is always promoting national security education and we believe that by going to China, it will help us better understand the development of the country.”

Binta expressed her willingness to let her daughter pursue career opportunities on the mainland if they arise in the future.

Calling the Greater Bay Area “one of the most open and economically vibrant regions in China” and “an economic powerhouse”, Woo kin-man, the Under Secretary for Constitutional and Mainland Affairs, said the opportunities available to Hong Kong people, regardless of their ethnicity, are enormous.

“Not only will this card-type document enhance the convenience of clearance at control points of the mainland, it will – more importantly – greatly facilitate cross-border visits by non-Chinese Hong Kong permanent residents, thereby enabling them to seize the historic opportunities, the rapid development of our country and the GBA,” he said.

Woo said Guangzhou and Foshan are advanced manufacturing hubs with extensive applications of robotics, and hoped students interested in these fields would make use of the trip and see the opportunities available.

Giant Chinese cargo drone lifts off on first test flight

https://www.scmp.com/news/china/science/article/3274154/giant-chinese-cargo-drone-lifts-first-test-flight?utm_source=rss_feed

The biggest Chinese-developed uncrewed cargo aircraft completed its first test flight on Sunday, marking one more step in a national push to expand the “low-altitude economy”.

The twin-engine aircraft has a wingspan of 16.1 metres (52.8 feet), a height of 4.6 metres and a cargo space of 12 cubic metres (423 cubic feet), with a payload capacity of 2 tonnes, according to state broadcaster CCTV.

“It is the largest fully domestically developed unmanned cargo aircraft, tailored to meet China’s market demand,” the report said.

During the test run in Zigong, in the southwest province of Sichuan, “all systems performed steadily”.

“Additionally, the aircraft is designed for easy loading and unloading, and offers high reliability and safety with a high degree of intelligence,” the report said.

The aircraft was expected to support the expansion of air freight services and “intelligent low-altitude logistics” in China.

Low-altitude airspace is defined as the space up to 1,000 metres above ground.

The low-altitude sector encompasses a variety of activities and industries that involve civilian manned and unmanned aerial vehicles (UAVs), including passenger transport, cargo delivery, manufacturing, low-altitude flight operations, and integrated services.

Beijing has pinned high hopes on technology in this area to power economic growth and spearhead advanced manufacturing.

To that end, it has been pushing the development of drone technology to spur upgrades to logistics and transport infrastructure, a transition that would involve phasing out older vehicles like trucks, ships, and trains, and replacing them with modern models or alternative solutions, such as UAVs.

Zhao Chongjiu, director general of the State Post Bureau, said last month that China’s capacity for air express delivery was growing, with players actively exploring use of UAVs and automated warehouses.

Song Zhiyong, director of the Civil Aviation Administration of China, revealed last month 14,000 companies had been licenced to operate drones. Drone operating licences had also been granted to 225,000 individuals.

The administration said the country’s low-altitude economy exceeded 500 billion yuan (US$69.7 billion) last year and was projected to reach 2 trillion yuan in 2030.

In June, the HH-100 prototype, a new commercial aerial freight drone, made its maiden flight. The craft has a payload capacity of 700kg (1,543 pounds) and a range of 520km (323 miles).

In 2022, a newly developed heavy-lift drone, created independently by China, successfully transported 300kg of building materials to a construction site in Yunnan province for electrical power infrastructure, according to state broadcaster CGTN.

It said it was the first time that a drone transported construction materials in a high-altitude area of the country.

Chinese Olympic gold medallists Wang twins to begin PhDs in Hong Kong in September

https://www.scmp.com/news/hong-kong/education/article/3274142/chinese-olympic-gold-medallists-wang-twins-begin-phd-hong-kong-september?utm_source=rss_feed

The twins who won China’s first gold medal in the duet artistic swimming event at the Paris Olympics will begin their doctoral studies at a university in Hong Kong in September.

The Education University of Hong Kong said on Sunday Wang Liuyi and Wang Qianyi, 27, already completed the enrolment registration procedures after they were admitted to its Doctor of Education programme.

“It is understood that the sisters will combine their sports profession and conduct more in-depth theoretical exploration and research during their PhD studies,” the university said.

“The Education University will provide all-round support to the two Olympic gold medallists to help them enrol in relevant courses and also better adapt to campus life.”

The Wang sisters were awarded scholarships for being outstanding athletes, it added.

University president John Lee Chi-kin also praised the duo for their determination and hoped their “tenacious and hardworking” spirit would inspire fellow students and more young people to give their all in chasing their goals.

The twins clinched the gold on Saturday. They received a total of 566.4783 points, holding off Great Britain and the Netherlands, who claimed the first artistic swimming medals for their countries.

6 dead, 10 hurt in China after lightning strikes pavilion as visitors sheltered from storm

https://www.scmp.com/news/china/science/article/3274131/6-dead-10-hurt-china-after-lightning-strikes-pavilion-visitors-sheltered-storm?utm_source=rss_feed

A lightning strike has killed six people and injured 10 after it caused a pavilion to collapse in eastern China, Jiangsu on Sunday, according to state media.

A severe thunderstorm hit Changzhou in Jiangsu province where lightning caused the building in Fangmaoshan park to collapse around 8.30pm, trapping 16 visitors who had sought shelter from the rain, state news agency Xinhua said.

A search and rescue operation was completed before midnight on Sunday night. Six people were pronounced dead on arrival at hospital a few hours later, while the other 10 were reported by local authorities to be stable by early Monday.

“Next step, relevant public facilities will be comprehensively inspected to ensure safety,” Xinhua said.

Changzhou Meteorological Station issued a yellow alert for severe convective weather on Sunday evening, warning that parts of the city would experience thunder and lightning, thunderstorms and strong winds, hourly rainfall exceeding 20mm and short-term heavy precipitation.

In China’s four-tier alert system, yellow is the third most severe.

Severe convective weather includes thunderstorms, short-term heavy precipitation, strong winds and hail featuring “rapid impact, strong intensity, and strong catastrophic potential”, according to China Meteorological Authority (CMA).

The weather authority said forecasting severe convective weather was like “using a big net to catch small fish”. Despite advances in forecasting technology, there remained bottlenecks in severe convective weather forecasting that required vigilance and progressive weather forecasts and warnings, it said.

The Ministry of Emergency Management forecast on August 5 that many parts of China were at a high risk of flood disasters and that “more extreme” strong convective weather would occur across large-scale areas in August.

On August 9, Xinhua published commentary urging improved resilience of city infrastructure to respond to weather disasters.

“Every extreme weather event warns us most directly and strongly: respecting nature, complying with nature and protecting nature are eternal issues for mankind,” the commentary said.

China’s central bank to extend lending support for decarbonisation projects until 2027

https://www.scmp.com/business/article/3274129/chinas-central-bank-extend-lending-support-decarbonisation-projects-until-2027?utm_source=rss_feed

China’s central bank will extend a programme of cheap lending to financial institutions in support of emission-reduction projects as the country continues to pursue its carbon peaking and net-zero goals, the government announced on Sunday.

The People’s Bank of China (PBOC) will extend the policy until the end of 2027, China’s cabinet, the State Council, announced in a new national-level guideline aimed at accelerating the country’s green and low‑carbon transition.

Under the programme, launched in 2021, financial institutions provide loans at interest rates close to the country’s benchmark lending rate to companies and projects in clean energy, energy savings and environmental protection. The PBOC then provides 60 per cent of the loans to these commercial lenders for one year at an interest rate of 1.75 per cent.

The extension was part of a State Council announcement of green-transition guidelines on Sunday, which covered key sectors like agriculture, transport and energy. The guidelines also outline development of other financial instruments to support the carbon transition of the world’s second-largest economy, such as green insurance, green equity and green trusts. The council also set an ambitious target of cultivating a 15 trillion yuan energy-saving and environmental protection industry by 2030.

The lending programme had supported financial institutions in issuing more than 1.1 trillion yuan (US$153 billion) in loans as of the end of June, according to the latest data from PBOC. In 2023, the PBOC extended the scheme to the end of 2024 and said it would include more foreign banks and local corporate banks.

The government also plans to promote the green transition from the consumption side of the equation by encouraging a more sustainable lifestyle among the public, developing low-carbon products and encouraging energy and water conversation.

The guidelines reiterated 2030 targets of increasing the proportion of non-fossil energy consumption to about 25 per cent and boosting the installed capacity of pumped hydro storage to more than 120 gigawatts (GW).

China, the world’s largest greenhouse gas-emitter, accounted for around a third of global carbon-dioxide emissions in 2023. It has promised to reach peak emissions by 2030 and achieve net-zero emissions by 2060.

As of June, the installed capacity of renewable energy in China has reached 1,653GW, accounting for more than half of total energy capacity, officials at China’s central economic planner, the National Development and Reform Commission, said at a press briefing in Beijing on Sunday.

China’s energy consumption and carbon emissions as a proportion of GDP have declined by 26 per cent and 35 per cent, respectively, compared with 2012, they said.

Unit of Chinese developer R&F Properties defaults on US$147 million in interest payments

https://www.scmp.com/business/article/3274137/unit-chinese-developer-rf-properties-defaults-us147-million-interest-payments?utm_source=rss_feed

Chinese developer R&F Properties said a subsidiary missed interest payments on offshore notes in another sign of escalating troubles for the country’s home builders amid a gruelling property downturn.

The Guangzhou-based developer failed to pay interest on three notes issued by its subsidiary Easy Tactic, which was due on July 11, it said in a filing to the Hong Kong stock exchange on Sunday.

The notes, which have accumulated US$147.1 million in interest, were subject to a 30-day grace period that the developer also failed to meet. This non-payment may prompt the note holders to demand accelerated repayment, the developer said.

“The company is in discussions with the holders of the Easy Tactic notes for an amicable solution and will continue to closely monitor the situation and consider all possible actions including but not limited to the formulation of a holistic liability management solution in respect of the group’s offshore debts,” R&F said, adding that it has engaged Alvarez & Marsal as its financial adviser and Sidley Austin as its legal adviser for the process.

R&F shares slid 1.27 per cent to HK$0.78 in morning trading.

Despite measures issued by China’s central and local authorities to support property developers and shore up sentiment, the nation’s slumping property market is seeing little sign of recovery, with home prices declining for a 13th consecutive month in July, while land purchases by China’s biggest developers also dropped 38 per cent compared with the same period last year.

R&F said it sold One Nine Elms, a mixed-use skyscraper in London, three months ago to relieve debt pressure, adding that it will “continue to seek suitable opportunities to dispose of its equity interest in certain project development companies to generate additional cash inflows”.

R&F is not the only developer struggling to repay debt. Mainland-based Kaisa Group and Times China Holdings, which have defaulted on a combined US$15 billion in offshore debts and are facing winding-up petitions, were granted extra time by Hong Kong’s High Court on Monday to put together restructuring plans.

Meanwhile, the liquidators of China Evergrande, the world’s most indebted developer with over US$300 billion in liabilities, said last Friday there was no path to restructuring in the absence of substantial new investment given the company’s debt load and its various business challenges.

R&F said its business operations remain normal and that it will “work relentlessly to ensure the delivery of properties, accelerate the sales of properties and stabilise its business operations”.

“Despite the strained market environment, the group remains hopeful that the real estate market in mainland China will gradually recover with the central government’s introduction of policies promoting healthy recovery of the real estate industry,” the company said.

As Philippines, Vietnam close ranks, China adopts ‘divide and conquer’ approach

https://www.scmp.com/week-asia/politics/article/3273874/philippines-vietnam-close-ranks-china-adopts-divide-and-conquer-approach?utm_source=rss_feed

China is undertaking a “divide and conquer” approach in dealing with Vietnam and the Philippines over their differences in the South China Sea, according to analysts, as the two Southeast Asian countries seek closer military ties with regional partners, partly to strengthen their capabilities in managing the maritime row.

Beijing’s policy is calibrated accordingly by factoring Manila’s more assertive approach and Hanoi’s “low profile” way of managing the dispute, analysts say.

Philippine and Chinese vessels have clashed in the contested waters in recent months, with a constant war of words exchanged between both sides. Among the incidents, Chinese personnel deployed water cannons, boarded Philippine vessels armed with axes and machetes and destroyed equipment to disrupt Manila’s resupply missions to the Second Thomas Shoal.

In contrast, Vietnam has more avenues for dialogue than the Philippines to defuse tensions with China, according to analysts.

Last Sunday, the Philippines and Germany said they planned to sign a defence agreement later this year to expand cooperation between their armed forces in areas such as military training and weapons procurement.

This comes on the heels of similar agreements signed recently between the Philippines and its allies – the United States, Australia and Japan – to boost military cooperation, including a pact between Manila and Japan to allow the deployment of troops on each other’s soil.

On August 1, Vietnam pledged to strengthen its partnership with India in areas including freedom of navigation and overflights in the South China Sea. Vietnam has also signed military cooperation agreements with the United States, Australia, France and Japan.

Abdul Rahman Yaacob, a research fellow in the Southeast Asia Programme at the Lowy Institute, said the Philippines and Vietnam faced similar challenges in the South China Sea.

Like the Philippines, Vietnamese fishing fleets and oil exploration activities in the South China Sea within its exclusive economic zone had been harassed by Chinese vessels, said Rahman, a specialist in Southeast Asian defence and security.

“However, unlike Manila, Hanoi is keeping a low profile and does not publicise these incidents,” Rahman said. “Vietnam’s strategy is not to allow its disputes with China in the South China Sea to shape its otherwise healthy relations with its northern neighbours. This is the point Hanoi officials consistently made to me.”

On the other hand, the Philippine administration under President Ferdinand Marcos Jnr had taken a “resolute and assertive approach” in pressing its maritime claims in the disputed waterways, Rahman said.

Manila has also publicised China’s aggressive behaviour while showing its commitment to defending its territorial rights. “This could have triggered Beijing to act aggressively against the Philippines, especially in the Second Thomas Shoal,” Rahman added.

On Wednesday, the Chinese military conducted a joint sea and air patrol around the disputed Scarborough Shoal aimed at testing its “capacities in reconnaissance, early warning, rapid mobility and joint strikes”, the Southern Theatre Command of the People’s Liberation Army said in a post on the social media platform Weibo. The shoal, located about 220km (137 miles) west of Luzon island, is claimed by China and the Philippines.

China is likely adopting a “softer” approach towards Vietnam in comparison with its assertive stance against the Philippines as part of its “divide and conquer” policy, Rahman said.

“I don’t think Beijing’s policymakers and defence planners would like to antagonise the Vietnamese and the Filipinos at the same time as they would be stretching their resources,” he added.

China’s policy to show the Philippines as the “unreasonable actor” in the South China Sea dispute had been successful to an extent as some Southeast Asian officials had privately expressed their concerns that Manila was being reckless, Rahman said.

One key consideration guiding Beijing’s approach is the Philippines’ geographical proximity to Taiwan and its ability to play a critical role in case of a conflict across the Taiwan Strait that potentially involves the US blocking Chinese ships, according to Rahman.

“Therefore, China will be concerned that the Philippines’ defence relations with major powers may impact its naval ambition,” Rahman said.

Beijing views Taiwan as a renegade province that should be reintegrated into mainland control, by force if necessary. While many nations, including the US, do not officially acknowledge Taiwan as an independent state, they oppose any use of force to alter the existing status quo.

Carl Thayer, an emeritus professor at the University of New South Wales, said unlike the Philippines, Vietnam had refrained from deploying its navy to confront Chinese ships in its exclusive economic zone.

Instead, Hanoi had deployed coastguard and civilian vessels to monitor Chinese activities, exercised tight control over Vietnamese media coverage of maritime incidents and pursued diplomatic channels with Beijing over their South China Sea dispute, Thayer said.

As for the Philippines, China’s approach would have taken into account the various military exercises that the Southeast Asian nation conducts regularly with its allies such as the annual Balikatan exercise with the US, according to Thayer, who is a specialist on Vietnamese defence issues.

“Vietnam does not conduct military exercises with foreign countries because of their war-fighting connotation” and only allowed one annual visit by a foreign vessel per country to a Vietnamese port, Thayer added.

Khang Vu, a doctoral candidate majoring in international relations and East Asian security at Boston College, said Beijing’s more lenient treatment towards Hanoi was because Vietnam was not a US ally.

“Vietnam has also kept its disagreements with China private thanks to the inter-party ties. Such secrecy allows for easier de-escalation due to neither side fearing loss of face publicly,” Vu said.

The approach by the Philippines to actively publicise its differences with China had reduced the leeway for both sides to defuse tensions over their dispute, Vu said. Nonetheless, Manila has been seeking to avert further clashes in the waters, he added.

The Philippine foreign ministry said last month that Manila had reached an understanding with Beijing “on the provisional arrangement” for resupply missions to a beached Filipino naval ship in the South China Sea. Its Chinese counterpart later confirmed the “temporary arrangement” to de-escalate the situation in the South China Sea.

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Is China’s coastguard about to go big offshore with new ocean-going mothership?

https://www.scmp.com/news/china/military/article/3274081/chinas-coastguard-about-go-big-offshore-new-ocean-going-mothership?utm_source=rss_feed

As the risk of maritime conflict rises, China’s coastguard could be looking to update its fleet to operate far from shore with the emergence of a newly designed law enforcement mothership.

The vessel was one of a number of new coastguard ships “recently” on show in Ningbo, in the eastern province of Zhejiang, alongside various underwater drones and uncrewed boats.

The new equipment was designed by the Marine Design and Research Institute of China, which is affiliated with state-owned shipbuilding giant China State Shipbuilding Corporation.

The equipment is not in service with the China Coast Guard but in a statement on its WeChat account on Thursday, the institute said the equipment was based on “the mission requirements of the coastguard” and showed independent innovation in cutting-edge technology, particularly in the field of unmanned equipment.

The statement did not give details of the mothership but such vessels are typically large and used to support and maintain other ships, aircraft, or operational units, much like an aircraft carrier in the navy.

The display of large vessels and unmanned equipment comes amid heightened tensions in the South China Sea, the East China Sea, and the Taiwan Strait.

Earlier this month, the Philippines said it was keeping a close watch on the China Coast Guard’s “monster” ship, a 12,000-ton (10.88-tonne) vessel considered the world’s biggest coastguard ship. The vessel, the 5901, was spotted at Sabina Shoal, also known as Xianbin Reef or Escoda Shoal, on July 30, according to the Philippine News Agency.

The shoal is part of the much-contested Spratly archipelago in the South China Sea, where forces from Beijing and Manila have had a number of tense encounters, particularly around the Philippine-controlled Second Thomas Shoal, known as Renai Reef in China and Ayungin Shoal in the Philippines.

The China Coast Guard has also intensified its patrols near the self-governed island of Taiwan in the past few months following the death of two fishermen from Fujian in February in a chase with the Taiwanese coastguard.

It also continues to conduct regular sailings around the disputed Diaoyu Islands, referred to as the Senkaku Islands in Japan.

Hu Bo, director of the Beijing-based think tank South China Sea Strategic Situation Probing Initiative, said the new large vessels indicated that the coastguard “needs ships more suited to its needs”.

“The industrial sector will certainly make certain modifications and designs based on naval vessels according to the needs of the China Coast Guard,” Hu added.

Last month, Beijing stressed the importance “safeguarding maritime rights and interests” at the Communist Party’s third plenum, a twice-a-decade gathering of the party’s elite to determine the country’s economic direction.

In recent years, the China Coast Guard has grown into one of the largest and best-armed forces of its kind in the world, with more than 150 regional and oceangoing patrol vessels exceeding 1,000 tons, according to a Pentagon report citing open-source information last year.

As part of that expansion, it has also been given a number of decommissioned warships from the People’s Liberation Army Navy.

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China charity boss investigated over sex-for-cash demand to desperate mother of sick child

https://www.scmp.com/news/people-culture/trending-china/article/3274039/china-charity-boss-investigated-over-sex-cash-demand-desperate-mother-sick-child?utm_source=rss_feed

The boss of a charity organisation in China has been accused of seeking sexual favours from a desperate mother in exchange for donations to help her seriously ill child.

A female charity worker, surnamed Zheng, who helped set up the 9958 Project under the China Charities Aid Foundation for Children, publicly accused Lei Ke, the regional head of the project, of exploiting a mother the charity was supposed to be helping.

Founded in 2010, the Beijing-based foundation is one of China’s most well-known charities.

Zheng revealed that the 9958 Project, which is designed to help children with severe illnesses, is one of the most “resourceful” initiatives within the foundation.

Lei, who is now under investigation by the authorities, was head of the project for central China, in charge of Henan and Hubei provinces, reported The Paper.

It is unclear at this stage of the probe if there are other victims.

According to WeChat screenshots provided by Zheng, Lei frequently sent provocative messages to a mother, including “Love you forever” and “I didn’t love the wrong woman”.

Another screenshot showed a mother replying: “I am not a good person either, I’m just doing this for my child. Before you give me a cheque we always go to a hotel. Is there anything in this world that isn’t dirty?”

Zheng received the screenshots from an internet user via a private Weibo message in June.

She encouraged the party, whom she reasonably assumed to be a victim, to report the incident to the police. It is unclear if legal action has been taken.

In 2020, Zheng reported a similar case involving a woman, surnamed Liu, who was allegedly coerced into sleeping with Lei.

However, the police later concluded that the act was consensual, and the case was dismissed due to lack of evidence, reported Red Star News.

In January, another internet user, identified as Xiaohuangyayaya123123, publicly disclosed how she had been “lured” into sleeping with a charity boss for a year after he told her “the foundation has money”.

“I ultimately couldn’t save my child but the price I paid was too high. I’m not physically attractive, but I did it for my child. Just one promise of ‘the foundation has money’ and I endured a year of exploitation,” the woman said.

She further wrote on her post and tagged multiple mainland media outlets.

“Each time I asked for funding, he concocted various excuses. In the end, I had to compromise. What does losing my dignity matter when it’s for my child? If I hadn’t traded my body, I might not have received one penny from the charity.”

While she did not explicitly state that the charity leader she slept with was Lei, she also revealed other unacceptable treatment within the project.

In another leaked conversation between an anonymous source and Lei, the charity boss boldly claimed: “The child’s mother volunteered. I said, ‘If you sleep with me once, I’ll give you the donation,’ then she volunteered.”

When challenged that the funds belonged to the charity, not to him personally, Lei replied: “But I control the money. What’s the problem?”

Lei had previously been celebrated as “an outstanding Henan native and a dedicated member of the 1980s generation” in 2019, with his endeavours praised by Xinhua News Agency, China’s official state media.

He even earned the title of “Good People of China” in December 2017.

An official source confirmed to The Paper that Lei had been placed under investigation months ago and the case has been transferred to the prosecution service.

A member of staff from the Civil Affairs Department of Henan province said: “We are taking the issue seriously and are further investigating the matter.”

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China tackles sonic booms, Gen Z at risk of eating disorders: 5 weekend reads you missed

https://www.scmp.com/news/world/article/3274107/china-tackles-sonic-booms-gen-z-risk-eating-disorders-5-weekend-reads-you-missed?utm_source=rss_feed

We have put together stories from our coverage last weekend to help you stay informed about news across Asia and beyond. If you would like to see more of our reporting, please consider .

China eyes anti-drone technology as key to future battlefield success

https://www.scmp.com/news/china/military/article/3274071/china-eyes-anti-drone-technology-key-future-battlefield-success?utm_source=rss_feed

China’s military and private manufacturers have been urged to ramp up efforts to produce anti-drone weapons after seeing how effective they have been in the Ukraine war.

The People’s Liberation Army has been watching closely how the technology has been employed on the battlefield, and has been testing its own capabilities in regular exercises.

The official military newspaper, The PLA Daily, has reported on some of these drills, the most recent being carried out in Kunming, the capital of Yunnan province.

Another article in May highlighted some of the technology being studied, including Britain’s DragonFire, a high-powered laser weapon that was successfully tested in January.

The military has also published regular articles about the use of the technology in conflicts such as Ukraine and Gaza.

One article in June argued that “through the study of local wars in recent years, it is found that foreign militaries usually adopt detection, electronic jamming … and other means to implement anti-UAV [unmanned aerial vehicle] operations, and often achieve good results”.

It went on to call for the building of “smarter and higher-efficiency” anti-drones systems for the Chinese military.

Earlier this year, Globe Weekly, a magazine published by China’s state news agency Xinhua, said in an article about Israel’s air defences, that “whichever side can effectively counter the other side’s use of drones can better seize the initiative on the battlefield”.

According to a report by the Pentagon last year, the PLA’s air defence unit concentrated on improving its tactical air defences against low-flying and suicide drones in 2022.

Drones have played a key part in the war in Ukraine, with both sides using them for reconnaissance and attacks on enemy troops.

But counter drone systems – whether they involve the use of missiles or jamming – are just as important on the battlefield.

The technology could also prove vital in any conflict in the Taiwan Strait, where the United States has threatened to deploy thousands of drones if mainland forces attack the island.

Admiral Samuel Paparo, the new head of the US Indo-Pacific Command, told the Washington Post in July the US had plans to create an “unmanned hellscape” in such an event.

Meanwhile, the Taiwanese authorities are developing their own anti-drone defences, budgeting NT$4.98 billion (US$156 million) this year to spend on the technology.

On the Chinese mainland, there is a thriving domestic market for the technology.

One employee at Jindowin, a firm in Nanjing that specialises in anti-drone technology, said the market was “booming”, and Russia’s war against Ukraine had been the turning point for domestic producers.

“Our business is impacted by international situations, such as the Russia-Ukraine war during which drones have been widely used. Our country’s drones are amazing, and once there is a spear, there must be a shield,” they said.

China has been steadily tightening restrictions on exports of drone technology that has military uses following repeated Western accusations it is tacitly supporting Russia’s war effort.

But the Jindowin worker said the company had no overseas market and its products were mostly used for domestic security.

China imposed some of the strictest bans on civilian drones around the time of political events of various levels and there is strong domestic demand for drones to be used on such occasions.

The employee also said the country’s economic system gave it an advantage by providing all elements of the supply chain, which helped to reduce costs and produce “high-quality and low-price products”.

China voices support for Iran’s ‘sovereignty’ in assassination’s aftermath

https://www.scmp.com/news/china/diplomacy/article/3274087/china-voices-support-irans-sovereignty-assassinations-aftermath?utm_source=rss_feed

China has backed Iran in its right to defend its sovereignty following the assassination in Tehran last month of a leading Palestinian figure.

It also renewed its call for joint efforts to de-escalate tensions in the Middle East.

In a call on Sunday, Chinese Foreign Minister Wang Yi told acting Iranian foreign minister Ali Bagheri Kani that Beijing supported Tehran “in defending its sovereignty, security and national dignity in accordance with the law”.

“[China also supports Iran’s] efforts to maintain regional peace and stability, and stands ready to maintain close communication with Iran,” Wang said, according to the Chinese foreign ministry.

“The priority is for the international community to jointly urge all parties to implement in earnest United Nations Security Council resolutions and create conditions for a comprehensive, permanent ceasefire in Gaza as soon as possible.”

He also described China and Iran as “comprehensive strategic partners” and said China was willing to work with the new Iranian government.

The call was the first between the two since Ismail Haniyeh, the political leader of Palestinian group Hamas, was assassinated in Tehran on July 31. Haniyeh was last seen at the inauguration of Iranian President Masoud Pezeshkian.

On Sunday, Wang again condemned the assassination, saying it has seriously “infringed on Iran’s sovereignty and directly undermined the process of Gaza ceasefire negotiation”. Hamas-led armed Palestinian groups have been fighting Israel in the Gaza Strip since early October.

According to the ministry, Bagheri said that while Iran was committed to maintaining regional security, it would firmly defend its national sovereignty and territorial integrity. He also hoped China would play a bigger role in de-escalating the situation.

Hamas and Iran have blamed Israel for the killing and vowed to retaliate. Israel has not claimed responsibility for the death but it previously vowed to eliminate Hamas leaders.

The tensions have added to fears of a wider conflict in the region, prompting China’s embassies in Lebanon and Iran to issue security alerts.

Iran’s Islamic Revolutionary Guard Corps has also staged a massive drill in the country’s west since Friday.

Wang’s call with Bagheri is one of a series in the past week related to the region.

He had similar conversations with counterparts in Egypt and Jordan on Monday, calling for joint efforts to ease the tension and create conditions for a ceasefire in Gaza.

Beijing has ramped up efforts as a peace broker in the Middle East. A week before the assassination, rival Palestinian factions including Fatah and Hamas signed an agreement in the Chinese capital aimed at resolving divisions and building unity.

Also on Sunday, Pezeshkian nominated Abbas Araqchi, formerly Tehran’s top negotiator in nuclear talks, as the country’s foreign minister.

Chinese mining firm files judicial review against Canada

https://www.scmp.com/news/world/united-states-canada/article/3274105/chinese-mining-firm-files-judicial-review-against-canada?utm_source=rss_feed

Jinteng Mining, a subsidiary of Chinese gold and copper company Zijin Mining Group, has sought a judicial review against Canada’s decision regarding a Canadian company’s sale of a gold mine in Peru, the Canadian Press reported on Sunday.

Jinteng bought Pan American Silver Corp’s gold asset in Peru in May for US$245 million with an option of additional payment of US$50 million. The Canadian Press reported that the judicial review was against Minister Francois-Philippe Champagne’s order seeking a national security review for the deal, which Reuters was unable to independently verify.

A case filed in the Federal Court of Canada which was viewed by Reuters showed that Jinteng (Singapore) Mining filed a judicial review in late July under section 18.1 of the Federal Courts Act naming the Attorney General of Canada and the Minister of Innovation Science and Industry as parties to the case.

Jinteng is represented by law firm Gowling WLG LLP, according to court documents.

The law firm representing Jinteng and Canada’s industry minister’s office did not respond to email queries.

Section 18.1 under Canadian law provides a legal recourse for any party affected by a federal order, allowing them to seek a review within 30 days after the decision.

The judicial review by Zijin could be a test case on how other Canadian companies approach their deal making with regards to Chinese investments.

Ottawa has taken a tough stance against investments by state-owned Chinese companies in Canada’s critical minerals sector.

Since 2022 Canada has asked Chinese investors in Canadian graphite, lithium and copper company to divest their holding even though the mining assets of these companies were outside Canada, owing to national security issues. But Chinese investors have continued their interest in Canadian mining companies.

The Canadian government has identified 31 minerals, including copper, lithium and nickel, that it considers critical for their strategic uses in modern technology and the energy transition, such as in electric vehicle batteries. Gold is not considered a critical mineral.

In July, the country’s industry minister Francois-Philippe Champagne said the country will have a high bar for approving large M&A deals in critical minerals and said any deals involving major Canadian miners will be approved “under exceptional circumstances”.