Mistral点评

• US disappointed in China’s actions in Xinjiang two years after UN human rights report
• Chinese cooking oil scandal prompts new safety rules for transporting products
• China Vanke suffers first interim loss in two decades as home sales plunge 38%
• Chinese companies eyeing US business expansion struggle to fill jobs in hostile climate
• Chinese Olympians show fun side while offering Hongkongers words of advice on never giving up
• Conflict or cooperation – how will US election affect China relations?
• What happened to China ‘Lipstick King’ Li Jiaqi, comeback bid underway after eyebrow pencil scandal
• China says its ships didn’t damage South China Sea reef, but Philippine coastguard did
• China, India agree to turn the page on border conflict ‘at early date’
• Tech war: Beijing sets up US$1.2 billion semiconductor fund as China splurges on chips
• Chinese yuan deposits in Hong Kong exceed 1 trillion, cementing city’s offshore hub role
• China’s yuan volatility rising on interest rates, US presidential election: Goldman
• China’s central bank tries new tool with 100 billion yuan net purchase of treasury bonds
• Hong Kong life insurance sales hit record, driven by buyers from mainland China
• China’s Communist Party brings in new rules to regulate faith, loyalty and performance
• 5 China monks akin to KOLs – 1 charms women while another turns temple into delivery room
• Subtle but substantial: China’s outreach to island states tips military power play
• South China Sea: Philippine push on tiny Thitu Island could stoke further tensions with Beijing
• China ally Solomon Islands irked over conditions in Australia-brokered Pacific police deal
• Wukong mania drives China tourism, Filipino helpers to earn big in South Korea: 7 highlights
• US, European airlines pay more, lose out to Chinese carriers amid Russian airspace closure
• Kamala Harris pitches continuity in China-lite first interview since nomination
• Sightseeing, gala show among events on day 2 of Hong Kong visit for China’s Olympic stars
• Can China build 2-way bridges with Global South partners?
• 500 people 1 face: debate rages as fans of China beauty KOL replicate her ‘baby faced’ look
• China’s internet users near 1.1 billion, driven by short videos and mobile payments
• Expiration of major US-China science treaty signals deep uncertainty amid high tensions
• How Belarus is seeking to balance Russia ties with stronger China relations
• Chinese retailers, once sweet on Mexico, say locals are turning sour. What changed?
• US trade chief Tai lauds Canada’s steep new tariffs on Chinese EVs and metals

US disappointed in China’s actions in Xinjiang two years after UN human rights report

https://www.scmp.com/news/china/article/3276654/us-disappointed-chinas-actions-xinjiang-two-years-after-un-human-rights-report?utm_source=rss_feed

The US State Department voiced disappointment on Friday that China has refused to “release all those arbitrarily deprived of their liberty [and] cease all intimidation and reprisals against Uygurs” on the second anniversary of a United Nations report on human rights in Xinjiang.

The 2022 report by the UN high commissioner for human rights concluded that “serious human rights violations” had been committed in the Xinjiang Uygur autonomous region.

The State Department on Friday added it was also disappointed that Beijing continued to reject the commission’s findings and refused to implement its recommendations, including curtailing actions “taken against Uygurs and other predominantly Muslim minorities in Xinjiang and abroad”.

In the UN report two years ago – its most recent involving Xinjiang – the commission found that China’s actions “may constitute international crimes, particularly crimes against humanity”, the State Department noted.

“We again urge [Beijing] to take immediate action to end these ongoing atrocities,” the department said in a statement. “We will continue to work closely with partners across the international community to seek justice for the many victims.”

Washington added it would persist in efforts to hold accountable “individuals and entities perpetrating human-rights violations and abuses” without elaborating.

But it stated it recognised and welcomed the UN commission’s continued efforts to engage with Beijing on human-rights issues and on enacting recommendations contained in the 2022 report.

America’s position conveyed on Friday followed a statement earlier in the week by the UN commission asserting that “many problematic laws and policies remain in place” in Xinjiang.

While it has held “detailed exchanges” with Beijing on a “range of critical” human-rights issues, the Geneva- based UN body said it still faced difficulties of “limited access to information and the fear of reprisals against individuals who engage with the United Nations”.

Over China’s strong opposition, the UN’s 2022 report was issued in the final hours of then-UN high commissioner Michelle Bachelet’s tenure.

Washington and human-rights activists have pointed to satellite imagery, leaked Chinese government documents and eyewitness accounts as evidence that more than 1 million Uygurs have faced mass detention, political indoctrination and forced labour.

Beijing has repeatedly denied the claims, arguing that lifting hundreds of millions of people out of poverty is also a human right.

The Chinese embassy in Washington did not immediately comment on the US statement.

The US and European Union have introduced legislation aimed at cracking down on the suspected import of goods made using forced labour in the region – charges that Beijing also denies.

The EU’s ban, which does not name Xinjiang but was written with the northwestern Chinese territory in mind, will take effect in three years.

According to a 2023 report by the Global Rights Project at the University of Rhode Island and CIRI Human Rights Data Project – a data set tracking human rights in some 170 countries – China received a score of 20 out of 100, Russia a 24 and the US a ‘barely passing’ 65 out of 100.

Chinese cooking oil scandal prompts new safety rules for transporting products

https://www.scmp.com/news/china/politics/article/3276586/chinese-cooking-oil-scandal-prompts-new-safety-rules-transporting-products?utm_source=rss_feed

China is drafting national standards for transporting cooking oil in the aftermath of a scandal that shook the nation.

Last week, food safety regulators said that following an investigation, two drivers were arrested and three companies penalised for using unclean fuel tanks to transport cooking oil, a practice that had been reported on by news outlets. The regulators said that aside from this case, they “did not find any similar problems”.

The new rules, proposed by the National Food and Strategic Reserves Administration on Tuesday, are open for public feedback until Sunday.

China is a major consumer of vegetable oil and has a great need for oil transport, according to the draft. In 2023, the entire country consumed a total of 39 million tonnes of oil. In the wake of the scandal, the State Council, China’s cabinet, has asked for timely industry regulations, it said.

The draft states that specific containers must be used for transporting cooking oil, and non-edible oil cans should not be used. The quality of the cans should meet the standards set by China’s food safety laws. Furthermore, transport records must be checked, and the cans need to be cleaned periodically with specific types of detergent and water.

The draft did not contain clauses stipulating the consequences if parties fail to meet the requirements.

Food safety regulators launched the investigation shortly after The Beijing News published a report in July claiming it was an “open secret” in the transport industry that tanker trucks were used to carry cooking oil and chemicals – without being cleaned between loads.

The reporter staked out in front of cooking oil factories and saw two trucks working for different transport companies entering and exiting.

In the report, regulators said the first truck was carrying 35.91 tonnes of cooking oil, 11 tonnes of which was used to make animal feed. The rest had not been sold and had since been sealed to prevent further use, they said.

The second truck was carrying 31.86 tonnes, of which 29.38 tonnes had been packaged and sold, mainly to the city of Ordos in northwest China’s Inner Mongolia autonomous region. Some 7.78 tonnes that had been sold but not yet used was recalled and sealed, according to the regulators.

Authorities appear to have closed the investigation. Communist Party mouthpiece People’s Daily said in a commentary on Sunday that the punishments showed China’s “zero-tolerance attitude to food safety issues and a people-first stance”.

But many members of the public were sceptical and dissatisfied with the results, pointing out there were still unanswered questions.

In a now-censored WeChat article, news commentator Xiang Dongliang asked: “How is it that the reporter accurately found the only two tanker trucks that were mixing up the oils?”

Xiang noted that there were over 180,000 vehicles on the road, but the investigations only found two involved in misconduct.

Social media users also questioned why a truck-tracking app went offline last month after user numbers surged shortly after news reports exposed the cooking oil scandal.

A string of food safety scandals has shaken the Chinese public’s confidence. In one of the most infamous incidents, some 300,000 children were poisoned in 2008 after Chinese suppliers added melamine, a chemical used to make plastic, to their powdered milk to artificially boost protein levels. The government launched an investigation and sentenced to death those responsible for the contamination and cover-up.

China Vanke suffers first interim loss in two decades as home sales plunge 38%

https://www.scmp.com/business/china-business/article/3276636/china-vanke-suffers-first-interim-loss-two-decades-home-sales-plunge-38?utm_source=rss_feed

China Vanke, once China’s second-largest home builder, reported an interim loss for the first time in two decades, underscoring the depth of damage the country’s long property crisis continues to cause.

The Shenzhen-based developer reported a net loss of 9.85 billion yuan (US$1.4 billion) for the first six months of 2024, swinging from a profit of 9.87 billion yuan for the comparable period in 2023, according to a filing with the Hong Kong stock exchange late on Friday.

The company’s first interim loss since 2003 came in 9.4 per cent higher than the top of a range the company defined in a profit warning last month.

The loss came after major mainland developers Shimao Group, Kaisa Group and Fantasia Holdings all reported widening losses on Thursday, delaying their efforts to overcome a debilitating debt crisis. Sunac, which reorganised its debt recently, is facing a similar predicament.

China Vanke’s revenue fell by 29 per cent year on year to 142.8 billion yuan, dragged by discounts offered to homebuyers in an effort to reduce inventory, the company said.

Contracted home sales declined 37.6 per cent year on year to 127 billion yuan. The developer will not pay an interim dividend.

“The new-home market remained under correction over the reporting period … and it will take time to restore homebuyers’ confidence even though the declines in home sales narrowed in the second quarter with a set of supporting policies,” China Vanke said.

Looking ahead, the company will “firmly implement” measures to focus on “ensuring home delivery, ensuring paying debts, as well as transformation of high-quality development”, it added.

The results came amid a multi-year crisis in the mainland property sector, which has been beset by woes since 2020 when the government introduced the “three red lines” policy to restrict developers’ borrowing binge.

Though China has pledged to purchase unsold homes to reduce inventory and revive the sector, a historic rescue package including a 300 billion yuan fund for that purpose, announced in May, has failed to lift sales amid slow implementation.

Transacted sales generated by the top 100 Chinese developers shrank 39.5 per cent to 1.85 trillion yuan in the first six months of the year, according to China Real Estate Information Corporation (CRIC). In July, sales fell 36.4 per cent from June to 279 billion yuan, CRIC data showed.

China Vanke shares rose nearly 10 per cent to HK$4.11 on Friday before the announcement, as the Hang Seng Index advanced 1.3 per cent to a seven-week high.

Chinese companies eyeing US business expansion struggle to fill jobs in hostile climate

https://www.scmp.com/news/china/article/3276155/chinese-companies-eyeing-us-business-expansion-struggle-fill-jobs-hostile-climate?utm_source=rss_feed

In July, senior executives from Midea, a leading Chinese consumer-electronics brand, travelled to the Massachusetts Institute of Technology to host a recruitment event amid the company’s push to localise operations and boost its American presence.

The event at one of the world’s most renowned research centres saw Midea’s top managers sharing stories of personal growth and inviting jobseekers to explore opportunities in the US, the company’s second-largest market.

But the nearly 100 prospective job applicants, mostly mainland students attending universities in greater Boston, bore a more pressing concern: how was the firm navigating a politically hostile terrain for Chinese businesses?

The question and the challenges it encompasses have vexed countless mainland companies and prospective employees alike.

One Boston University student asked if Midea planned to set up a manufacturing plant in the US given the rising zeal of “Made-in-America” branding.

Another asked how the company protected customers’ personal data or if it planned to build a local data centre. Several said they were looking for jobs in Asia – not stateside.

The concerns loomed “because the US government is always worried that Chinese companies take data from the US and that it’s a safety risk”, explained an attendee who asked not to be named.

Another admitted: “I am seeking a job in Midea working in China because it’s a large company, perhaps because it will be more secure.”

Their preoccupations reflect hardening attitudes about China in the US, where some lawmakers and regulators deem the popular short-video app TikTok owned by mainland-based start-up ByteDance a dire threat.

As politicians raise national security fears and accuse Chinese companies of taking American jobs, the stigma has ensnared lower-profile firms.

Apprehensions are increasingly widespread for those seeking to localise operations and lure talent in the US, experts observe, and differences in management style can complicate retention.

Midea, a Fortune 500 company whose market capitalisation exceeds US$60 billion, is a major manufacturer of air conditioners, microwaves, refrigerators and other home appliances. Its production facilities can be found in Brazil, India and Vietnam.

However, high production costs leave it reluctant to open factories in North America. That is despite Midea’s US revenue surging from under US$100 million in 2015 to over US$1 billion in 2021, according to a 2022 Forbes interview with Kurt Jovais, the firm’s then president of American operations. Its global revenue totalled about US$53 billion in 2023.

In 2022, some 173 staff worked at Midea’s New Jersey headquarters and plans are afoot to grow that figure next year by 20 per cent. Last month, the company announced its R&D facility in Kentucky would expand with 110 new jobs “over the coming years”.

Globally, Midea has more than 30 R&D centres. Yet a representative, speaking on the condition of anonymity, called attracting top talent in the US its “biggest bottleneck”.

“When you’re localising staff, there’s going to be challenges, whether you’re famous or not,” the company representative said, adding that the strategy was to “localise as much as possible” and offer more salary and opportunities “than average”.

Midea is not alone among Chinese firms confronting steep hurdles to US expansion.

A senior official at REPT Battero, a mainland renewable battery maker whose American operations commenced in 2022, said its hiring was sluggish.

“We have 10 local people in the US and we are planning to increase our team to 25 to 30, but it’s very difficult,” said Jason Hong, the company’s US general manager.

Having looked “for several months”, Hong voiced frustration over the time needed to interview candidates, saying recruitment agencies were expensive.

In response, REPT’s US-based sales and technical roles now require fewer years of prior work experience.

Chris Pereira of iMpact, a New York-based consultancy, believed professional hazards befell American applicants, especially “if it’s a government relations role or a public affairs role”.

“There could be some reputational risk or even legislative risk in the future if you’re working for a Chinese company,” Pereira said.

Julian Ha of Heidrick & Struggles, a Washington-based executive recruiter, attested to a shift in sentiment from “10 to 15 years ago”.

Before, “executives would reach out to us”, Ha said. “That’s certainly not the case any more. It’s we who actually have to really actively recruit people.”

Isaac Stone Fish of Strategy Risks, a company that analyses corporate exposure to China, contended Americans contemplating such employment must consider risks like sanctions, legal issues and reputational damage.

“The negative press some US government officials have received because they had previously lobbied or advocated for Chinese companies certainly discourages others to follow in their path,” he said.

A China General Chamber of Commerce survey this year of some 100 mainland enterprises in the US found more than 90 per cent viewed “stalemate” in Sino-American political and cultural relations as a challenge of doing business stateside.

The report attributed the pessimism to a complex “policy environment and the hostile public sentiment influenced by ongoing US-China trade tensions”, advising mainland firms to appoint local employees with knowledge of the American culture and market.

As for TikTok, reports in May emerged that the social media platform boasting more than 1 billion monthly active users worldwide would lay off about 1,000 employees globally. The company last year disclosed it had 7,000 employees in the US alone.

TikTok had largely escaped vilification since 2020, when then-US president Donald Trump signed an executive order to ban it over national security reasons and asked parent company ByteDance to sell off its American operations.

Weeks later, then-TikTok CEO Kevin Mayer resigned just months into his job, citing pressure from the Trump administration.

Although a court later reversed the order, TikTok faced calls for a nationwide ban after the US Congress passed a law giving the company nine months to find a non-Chinese buyer or be removed from American app stores and servers.

Amid such developments, some executives at American subsidiaries of Chinese companies have reported encountering harassment.

Chuck Thelen, a North America-based vice-president for mainland battery maker Gotion High-Tech, said he has “personally experienced a great deal of bullying from a number of people”.

Thelen has been booed and yelled at during public meetings and is regularly accused of being “CCP-tied” despite Gotion anticipating its projects in Michigan and Illinois will generate more than 2,000 jobs.

US congressman John Moolenaar, a Michigan Republican who chairs the House select committee on China, has dug in.

“We must not welcome companies that are controlled by people who see us as the enemy and we should not allow them to build here,” Moolenaar said in July.

Billboards and yard signs telling Chinese companies they are unwelcome highlight the unease. At a Gotion job fair in Manteno, Illinois in January, a prospective employee told a local newspaper that, while “No Gotion” placards dotted the village, people still needed work to pay their bills.

In the current environment, Ha said uncertainty forced Western executives “to think twice about whether or not they are going to be able to commit and be successful”.

“Will this company be able to continue to operate? Will they be placed on the Entity List?” asked Ha, referring to the American government’s catalogue of trade restrictions.

Washington has added more than 100 Chinese companies to its blacklists since US President Joe Biden took office in 2021. The lists count about 600 mainland firms.

Pereira, a former Huawei Technologies employee, said “everyone wants to work at a place with long-term prospects” and seeing “the negative about your company will make you think twice about staying long term”.

For an American who has a bad experience at one Chinese company, it is “harder for you to decide to join the second”, added Pereira.

A report last September by Rhodium Group, a New York-based consultancy, found that “restrictive economic policies fuelling US-China economic decoupling over the past five years” had precipitated a “severe and prolonged” decline in not just mainland investment but also employment at Chinese companies in the US.

Unlike in 2017, when 229,000 Americans worked at Chinese firms, in 2022 only 140,000 Americans were employed by Chinese businesses, it said. In contrast, Germany hired 920,000 Americans and Japan hired 1,045,000.

Companies such as Midea have taken cues on localisation from successful counterparts in places like close US ally Japan.

“We don’t want to hide who we are,” said the Midea representative when asked about mainland firms trying to distance themselves from their origins.

“Midea learns more from Japanese and [South] Korean companies … where they don’t hide that they’re from Japan or [South] Korea. They also really do a great job of localising in America.”

Management’s approach can shape success, Pereira observed. “Many Chinese companies think if they hire a local person with a local face then that’s localisation.

“What you need to do is give the local staff autonomy to make real decisions, have control of the budget and let them run with their projects and make mistakes even and let them build their own teams,” he said.

“That’s a step that many Chinese companies have trouble with at this stage.”

Citing reviews on websites like Glassdoor, where former employees share feedback on employers, Pereira noted a common complaint was working overtime while getting free pizza on Fridays and nothing more.

“I’m not saying you have to pamper them like babies. But you do have to compare yourself to other local employers if you want to keep the best talent in the United States.”

Chinese Olympians show fun side while offering Hongkongers words of advice on never giving up

https://www.scmp.com/news/hong-kong/society/article/3276650/chinese-olympians-show-fun-side-while-offering-hongkongers-words-advice-never-giving?utm_source=rss_feed

A Chinese Olympic delegation spent their second day in Hong Kong and enjoyed lighthearted interactions with students, members of the disciplined services and a gala show audience after whirlwind sightseeing and shopping trips to famed tourist spots.

From playing table tennis with a wok spatula to surprising an audience with a song, the athletes took part in a wide range of activities and were welcomed by loud cheers from fans waiting in sweltering heat on Friday.

“This is the seventh visit by Chinese athletes after the Summer Olympics arranged by the central government since the handover [in 1997], reflecting the country’s care and support for the city,” Chief Executive John Lee Ka-chiu told the gala show in the evening.

The showcase event at Queen Elizabeth Stadium in Wan Chai included demonstrations of table tennis, badminton, skateboarding and breakdancing, among others.

The audience was treated to an unexpected singing performance by gold medal-winning gymnasts Liu Yang and Zou Jingyuan, while diving champion Long Daoyi did a short rap.

Earlier, the delegation of 65 athletes, who are on a three-day visit, split into four groups for sharing and exchange sessions at the Hong Kong Sports Institute in Sha Tin, St Paul’s College in Sai Ying Pun, the South China Athletic Association in Causeway Bay and the Fire and Ambulance Services Academy in Tseung Kwan O.

Members of the disciplined services and their affiliated youth groups met 22 mainland Olympians at the Fire and Ambulance Services Academy, where athletes of 10 sports gave demonstrations and taught youngsters their winning moves.

Table tennis veteran Ma Long, world record-breaker swimmer Pan Zhanle and artistic swimming twins Wang Qianyi and Wang Liuyi put on unconventional shows.

Rather than using paddles, Ma and men’s table tennis singles champion Fan Zhendong played against youth representatives with a pot lid and a wok spatula.

Some Olympians shared tips on how they overcame gruelling training, intense competition stress and even looming injuries to achieve stellar performances.

Weightlifting champion Hou Zhihui said a refusal to bow to failure had motivated her, as she pushed through a tightly fought competition at the Paris Games.

Meanwhile at St Paul’s College, the athletes, including diving duo Quan Hongchan and Chen Yuxi, and table tennis player Chen Meng, arrived at around 9.20am for an experience-sharing session with pupils and left around noon.

While the press were not allowed to sit in, Quan was seen in a video on mainland social media platform Weibo telling the students that the 10 years she had been training had been “tough” and “tiring”.

“There are moments where I want to give up,” she said. “I thought to myself: I have already held out for this long, why not keep going? I must cheer myself on to perform better.”

A clip also showed Chen teaching Quan and another athlete to play table tennis, prompting cheers from the audience.

Form Four student Brian Yiu said he enjoyed hearing about how athletes coped with the competitions.

“Athletes tell us how they feel differently when they lead or lag behind,” he said. “This gives me an insight into their strong mindsets.”

After a lunch reception at the central government’s liaison office in Sai Wan, the delegation had some private time in the afternoon to visit The Peak and Victoria Harbour.

A 45-minute visit to The Peak mall ended with the athletes carrying bags of souvenirs, and Quan was among the most satisfied, holding a full bag of stuffed toys, her favourites.

Among fans on The Peak, Mack Ho, 12, said he started playing table tennis after watching Ma Long in the Tokyo Olympics, and brought his paddle and a pen, hoping to get an autograph from his idol.

The boy, who waited for at least three hours, said: “I am not disappointed as some of the athletes did look and wave to me.”

As a highlight, the delegation hopped onto one of the city’s famed green-and-white Star Ferry vessels at Wan Chai pier for a voyage of about 20 minutes to tourist district Tsim Sha Tsui.

Weightlifters Li Wenwen and Hou Zhihui were caught on camera as they had fun recreating a famous scene from the film Titanic where protagonist Jack holds on to Rose by her waist at the front of the ship.

Quan and skateboarder Cui Chenxi stared into the water, with Quan making a mock diving motion.

Additional reporting by Paul McNamara, Angeline Jiang, Leopold Chen and Vivian Au

Conflict or cooperation – how will US election affect China relations?

https://www.scmp.com/opinion/world-opinion/article/3276243/conflict-or-cooperation-how-will-us-election-affect-china-relations?utm_source=rss_feed

As the US presidential election approaches, the world is watching with keen interest, knowing that the outcome will significantly shape US-China relations for years to come. This pivotal bilateral relationship, one of the most consequential of the 21st century, stands at a critical juncture. After decades of engagement and interdependence, recent years have witnessed a dramatic shift towards competition and heightened tensions.

Both Republican and Democratic administrations have come to view China’s growth as a threat to vital US interests. Conversely, China perceives US actions as attempts to stifle its development and deny it a place on the world stage.

Against this backdrop, November’s presidential election emerges as a potential inflection point. The policies and approaches of the next administration will play an important role in determining whether the world’s two largest economies can find a way to peacefully coexist or whether they will descend further into conflict.

The contrasting visions of the two leading candidates – former US president and Republican nominee Donald Trump and Vice-President Kamala Harris, the Democratic nominee – present somewhat divergent paths forward. Each has profound implications not only for the two countries involved but for the entire global order.

Trump has signalled an intention to double down on his confrontational approach to China. His proposed policies include imposing sweeping tariffs of up to 60 per cent on Chinese imports, a move that economists warn could have severe consequences for both US consumers and the global economy.

Trump’s transactional view of international relations, evident in his comments suggesting that Taiwan should pay for US protection, indicates a potential shift in the delicate balance of cross-strait relations. This approach risks further destabilising an already-precarious relationship and could lead to escalations.

On the other hand, an administration with Harris and Minnesota Governor Tim Walz would present the possibility of a more nuanced approach to US-China relations. While Harris is likely to continue many aspects of the Biden administration’s China policy, her choice of Walz as a running mate introduces an intriguing variable.

With his experience in China and demonstrated interest in the country during his time in Congress, Walz could potentially advocate for a more engaged and pragmatic approach. This is not to suggest a return to the previous era of engagement, but rather it is a recognition that dialogue and cooperation on areas of mutual interest are essential, even in the context of strategic competition.

The implications of these somewhat different approaches extend far beyond bilateral relations. The US-China dynamic has become the primary axis around which much of global politics and economics revolve. A further deterioration in relations could accelerate the trend towards deglobalisation, fragment the world economy into competing blocs and increase the risk of military confrontation.

Moreover, it could complicate global efforts to address transnational challenges such as climate change, pandemics and nuclear proliferation. These all require a degree of cooperation between the world’s two largest economies.

Conversely, a more balanced approach could create space for selective cooperation. This, in turn, could lead to a more stable international environment, allowing for progress on shared challenges without ignoring fundamental differences.

Beijing appears convinced that, regardless of who wins, the next US administration will maintain an antagonistic stance towards China. This perception is rooted in the bipartisan consensus that has emerged in Washington regarding confronting China’s rise. However, Beijing may well see important nuances between the two potential outcomes.

On the economic front, there is a renewed emphasis on China to strengthen domestic consumption and diversify international trade relationships to reduce dependence on the US market. This aligns with its dual circulation strategy, which aims to make the country more resilient to external shocks. In the realm of technology, China is doubling down on efforts to achieve self-sufficiency in critical sectors, particularly semiconductors.

Diplomatically, China might seek to further develop relations with other countries, particularly in the developing world. By offering increased market access or investment, Beijing hopes to complicate Washington’s efforts to build a unified front against China. At the same time, China is likely to remain open to dialogue and negotiation, recognising the importance of managing tensions with the US to avoid outright conflict.

Looking ahead, regardless of the election outcome, certain trends in US-China relations are likely to persist. The fundamental shift from engagement to containment is unlikely to be reversed in the short term. Technology will remain a key battleground, with dominance in areas such as artificial intelligence, quantum computing and advanced semiconductors seen as crucial for superiority.

The intensity and nature of this bilateral relationship, as well as the potential for cooperation in areas of mutual interest, will be significantly influenced by the policy choices of the next US administration.

A Trump presidency is likely to take a more confrontational and transactional approach, potentially accelerating economic decoupling and increasing the risk of conflict. A Harris-Walz administration might seek more nuanced engagement, potentially opening avenues for dialogue and selective cooperation on global challenges.

The presidential election represents a critical moment for US-China relations and, by extension, the global order. The hope remains that whatever path is chosen, it will lead to a stable and constructive relationship between these two powers, recognising that their ability to coexist and selectively cooperate is essential for addressing the myriad challenges facing humanity in the 21st century.

What happened to China ‘Lipstick King’ Li Jiaqi, comeback bid underway after eyebrow pencil scandal

https://www.scmp.com/news/people-culture/china-personalities/article/3276409/what-happened-china-lipstick-king-li-jiaqi-comeback-bid-underway-after-eyebrow-pencil-scandal?utm_source=rss_feed

Top mainland e-commerce live-streamer, Li Jiaqi, dubbed the “Lipstick King” is back under the spotlight after appearing in the country’s popular reality singing show Call Me by Fire.

The 32-year-old influencer’s attempt at a comeback, following a series of controversial public outbursts and a formal investigation, has received a mixed reception.

Li’s decade-long journey from cosmetics salesman in a second-tier city to China’s top influencer with hundreds of millions of followers and on to television stardom, was tainted by controversy.

In 2016, the former L’Oréal beauty adviser from Nanchang in eastern China’s Jiangxi province, stood out in a competition held by the beauty brand and multichannel network (MCN) company MeiOne.

Soon after, he became an e-commerce live-streamer in Shanghai.

Li shot to fame as the “Lipstick King” in 2018, after he sold 15,000 lipsticks in five minutes, winning a contest against Jack Ma, founder of Alibaba which owns the South China Morning Post.

He quickly became the top live-streamer on Alibaba’s e-commerce platform Taobao, promising his audience the lowest prices.

His catchphrases, which included “All girls” and “Oh My God”, appeared to be especially persuasive in his high-pitched voice that sounded sincere.

Li’s experience as a beauty adviser helped him win the hearts of China’s female shoppers.

He tried lipsticks on his own lips every evening during live-streaming, and once applied 189 lipsticks in one day: “My lips do not belong to me any more,” he said.

Li generated 10.6-billion-yuan (US$1.5 billion) first-day sales during the Double 11, China’s biggest shopping festival, in 2020.

He attracted a record 250 million viewers in one day. The first-day sales rose to 11.5 billion yuan in 2021 and 12.3 billion yuan in 2022.

Li, who is originally from central China’s Hunan province, obtained hukou, or permanent residency status, in Shanghai under the city’s “special talent” scheme.

However, his career took a turn for the worse after a series of clumsy, thoughtless outbursts, which offended many people.

During a live-streaming session in September 2023, Li lashed out at a customer who complained that a 79-yuan (US$11) eyebrow pencil from Chinese make-up brand Florasis was too expensive.

He arrogantly insulted the customer, saying: “Have you got a pay rise after all these years? Did you work hard enough?”

Online observers later calculated that the price of the eyebrow pencil per gram was twice that of gold, which was 468 yuan (US$66) at the time.

Li was heavily condemned for his outburst and was accused of “forgetting where he had come from”. His Weibo followers dropped from 30 million to 29 million in one day.

He made a tearful apology during a live-stream two days later, saying: “I shouldn’t have judged anyone in my audience. I’m sorry that I let you down.”

Li’s mother once said in an interview that, when her son was admitted to Nanchang University to major in dance, she could not afford the 20,000 yuan (US$2,800) tuition fees, so he left without getting a degree.

The shopping celebrity triggered two previous backlashes when he called a pregnant women “ugly”, and made a sexual joke about mainland actress Yang Mi who was a guest on his live-stream, which offended online observers.

He was also accused by sales people on other e-commerce platforms of “holding brands hostage” and making them commit to the lowest price on his channel. Shanghai’s anti-monopoly office investigated the accusations.

The television show Call Me by Fire, which is entering its fourth season this year on China’s Mango TV station, features veteran male stars singing and competing in groups.

Li said during a live-stream that he attended the show to “make money and send red packets” to his audiences.

He also brought the celebrity friends he had made during the show to his live-streaming sessions.

However, his comeback attempt was not as well received as he had expected.

In a poll by a Douban user, Li received the highest “unfavourable” votes of the 34 celebrities who appeared on the show.

“I’m not qualified to watch the show – not working hard enough,” one person said online, referring to his insult to the woman which sparked the eyebrow pencil scandal.

China says its ships didn’t damage South China Sea reef, but Philippine coastguard did

https://www.scmp.com/news/china/diplomacy/article/3276617/china-says-its-ships-didnt-damage-south-china-sea-reef-philippine-coastguard-did?utm_source=rss_feed

China has accused Manila of making “baseless claims” that it had damaged coral reefs in the disputed Sabina Shoal as it published a report that said a Philippine coastguard ship was instead causing environmental damage.

Earlier this year, the Philippines discovered mounds of dead and crushed coral that had been dumped on Sabina’s sandbars underwater and said this was the result of Chinese land reclamation activities, something Beijing denied at the time.

One of the most advanced Philippine coastguard ships, the BRP Teresa Magbanua, has been stationed off the shoal since April – in part to deter any Chinese land reclamation efforts.

The report produced by three subsidiaries of the Ministry of Natural Resources was published on Friday, a day after China told the Philippines to “immediately withdraw” the ship.

Chinese and Philippine coastguards have been involved in a series of clashes near disputed features in recent months. The confrontations near Sabina Shoal have become more frequent and intense in recent weeks, including collisions between ships and China using water cannons against Philippine vessels.

Chinese state broadcaster CCTV said a two-month investigation into ecological conditions around the shoal had concluded that China had not damaged the reef and instead pointed the finger at the Teresa Magbanua.

“Due to the effects of waves and currents, the anchor and anchor chain of the Philippine coast guard vessel will cause ongoing damage to the surrounding reef,” Xiong Xiaofei, a senior engineer at the South China Sea Ecological Centre, one of the institutions that compiled the report, told CCTV.

He also said that “frequent activities” by smaller vessels carried by the Philippine ship such as speed boats, were also having an impact on the coral reef’s ecosystem.

“As for the Philippines’ fabricated claims that China artificially piled up coral debris at Sabina Shoal, causing massive coral bleaching and death in the area, these allegations are without scientific and factual basis,” Huang Huamei, vice-president of the South China Sea Development Research Institute, another body involved in the research, told CCTV.

According to CCTV, the coral reef ecosystem at Sabina Shoal is “generally healthy”. It said the coverage of hermatypic coral – which plays a key role in helping the ecosystem stay functional and stable – is “relatively high” compared with other major reefs and has been stable since 2012.

The investigation established 34 new inspection stations across the entire reef area for verification, CCTV said.

Chen Xiangmiao, an associate research fellow at the South China Sea Institute of China, told CCTV, the Philippine claims were designed to discredit China and manipulate public opinion to support Manila’s “illegal” territorial ambitions in the South China Sea.

“This time, China’s researchers have provided indisputable evidence through on-site sampling and scientific data analysis, disproving the Philippines’ lies and delivering a resounding rebuttal to the habitual liar,” Chen said.

Xiong said his research team had observed some coral bleaching during the investigation, but this was limited to isolated cases caused by seasonal temperature increases – something he said disproved Manila’s claims.

He added that the coastguard ship had repeatedly dispatched boats to interfere with the research team and had twice sent divers to disrupt their activities.

The investigation also found plastic waste marked with Philippine identification in areas where Philippine fishing boats operate, as well as accumulated shellfish remains underwater that were the result of human activities.

Xiong also claimed that several Philippine fishing boats had been “operating illegally” on the northwest side of the lagoon without China’s permission.

Sabina Shoal, known as the Xianbin Reef in China and as Escoda Shoal in the Philippines, has become the latest flashpoint between the two countries.

Last month China demanded that the Philippines remove a warship which has been “illegally grounded” at the Second Thomas Shoal, saying the vessel had “seriously damaged the diversity, stability, and sustainability of the coral reef ecosystems”.

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China, India agree to turn the page on border conflict ‘at early date’

https://www.scmp.com/news/china/diplomacy/article/3276629/china-india-agree-turn-page-border-conflict-early-date?utm_source=rss_feed

China and India have agreed to further narrow their differences and find an early solution to their decades-old Himalayan border dispute.

Concluding the 31st round of diplomatic talks on the matter on Thursday, both countries pledged to strengthen connections and continue to de-escalate tensions at the border, according to statements from either side.

“The two sides agreed to strengthen dialogue and consultation, accommodate each other’s legitimate concerns, and reach a mutually acceptable solution at an early date,” said a Chinese foreign ministry statement issued after the meeting in Beijing.

Both sides will “strictly abide by the border-related agreements” and “turn over a new leaf in the border situation at an early date”, it added.

Largely mirroring China’s positive tone, an Indian foreign ministry statement said that the two sides had agreed to boost communications through both “diplomatic and military channels”.

“Respect for the LAC [Line of Actual Control] is the essential basis for the restoration of normalcy in bilateral relations,” it added.

The Line of Actual Control refers to the effective 3,200km (about 2,000-mile) Sino-Indian border line, which has not been precisely defined due to a lack of consensus.

Beijing’s readout made no mention of this term.

The 31st round of border talks came just a month after the previous edition, held in New Delhi, where both sides agreed to speed up negotiations as stand-offs along disputed areas entered their fourth year.

The participants remained largely the same as last time. The meeting was co-chaired by Hong Liang, director general of the Chinese foreign ministry’s Boundary and Oceanic Department, and Gourangalal Das, joint secretary for East Asia from the corresponding Indian ministry.

Diplomats, national defence and immigration department personnel from either side also attended the meeting.

Das also separately met Liu Jinsong, director general of the Department of Asian Affairs at the foreign ministry.

The pair exchanged views on bilateral relations as well as regional issues of mutual interest and concern, a statement from the Chinese foreign ministry said on Thursday.

Disputed border claims have long been a sticking point in China-India relations, sparking a brief but bloody war in 1962. They have been divided since by the LAC, having failed to reach an official agreement on the precise location of the border or the more than 120,000 sq km (over 46,330 square miles) of disputed territory.

Both countries maintain a significant military presence in the border areas.

The first round of diplomatic talks to resolve border tensions were held in 2012. Officially named the Working Mechanism for Consultation and Coordination on India-China Border Affairs (WMCC), the talks were proposed by then Chinese premier Wen Jiabao during a visit to India in 2010, a time of growing bilateral economic closeness.

However, border tensions have heated up since 2020, after clashes in the Galwan River valley left dozens of Indian troops and at least four Chinese soldiers dead. Further border clashes have been reported at least twice since 2022.

Multiple senior defence-level and diplomatic talks followed. These have helped to ease tensions but have not fundamentally changed the military stand-off along the western Himalayas.

Last month, Chinese Foreign Minister Wang Yi met his Indian counterpart Subrahmanyam Jaishankar on the sidelines of a regional gathering in Kazakhstan, as well as two weeks later in Laos. The moves were largely seen as part of efforts from both sides to ease the strain in ties.

Tech war: Beijing sets up US$1.2 billion semiconductor fund as China splurges on chips

https://www.scmp.com/tech/tech-war/article/3276614/tech-war-beijing-sets-us12-billion-semiconductor-fund-china-splurges-chips?utm_source=rss_feed

The Beijing municipal government has set up a new semiconductor investment fund, as China ramps up support for its chip industry amid intensified trade tensions with the US.

The state-owned Zhongguancun Development Group established the Beijing Integrated Circuit Industry Investment Fund on Tuesday with a registered capital of 8.5 billion yuan (US$1.2 billion), according to information available on Chinese corporate database Qichacha.

The Beijing government started the Zhongguancun firm in 2010, and the fund will be run by a subsidiary registered as Beijing Zhongguancun Capital Fund Management, according to Qichacha.

The new fund in Beijing joins a slew of initiatives from local Chinese governments aimed at bolstering the country’s chip sector. The most notable among them is the China Integrated Circuit Industry Investment Fund, a national effort known as the “Big Fund”.

China in May set up the third phase of the Big Fund with a registered capital of 344 billion yuan, making it the country’s largest-ever chip investment fund, nearly on par with the US$53 billion in incentives under the Chips and Science Act signed into law by US President Joe Biden in 2022.

Analysts expect the Big Fund III to be a boon for companies across the country’s semiconductor supply chain, including equipment and material suppliers, and make investments related to advanced packaging.

The local Shanghai government recently also injected nearly US$1 billion into its own chip fund, the Shanghai Semiconductor Industry Investment Fund, after establishing in July a 45 billion yuan Integrated Circuit Industry Parent Fund.

Government subsidies for semiconductor firms in China have surged as Beijing doubles down on its self-sufficiency drive. Public funding to 25 of the country’s top chip companies jumped 35 per cent to 20.53 billion yuan last year over 2022, according to an analysis by the Post.

Massive state subsidies have contributed to the growth of China’s semiconductor industry, but have also led to an overcapacity in production, according to a report published earlier this month by the Information Technology and Innovation Foundation (ITIF), a Washington-based think tank.

Meanwhile, Semiconductor Manufacturing International Corporation, China’s largest chip foundry, still lags behind Taiwan Semiconductor Manufacturing Company (TSMC) by five years, ITIF said. TSMC is responsible for manufacturing an estimated 90 per cent of the world’s most advanced chips.

Chinese yuan deposits in Hong Kong exceed 1 trillion, cementing city’s offshore hub role

https://www.scmp.com/business/banking-finance/article/3276593/chinese-yuan-deposits-hong-kong-exceed-1-trillion-cementing-citys-offshore-hub-role?utm_source=rss_feed

Deposits of Chinese yuan in Hong Kong reached 1.06 trillion yuan (US$149.5 billion) in July, further cementing the city’s role as the largest offshore yuan hub as tailwinds gather for the currency’s internationalisation.

Yuan deposits in July exceeded 1 trillion yuan for the fourth month despite declining by 0.4 per cent, according to the Hong Kong Monetary Authority’s data published on Friday.

The total yuan remittance for cross-border trade settlement reached 1.28 trillion yuan, 1.6 per cent higher than in June.

Improvement in equity-market sentiment and companies’ increasing need for yuan for trade settlement and working capital have contributed to the jump in yuan deposits in Hong Kong, according to analysts.

The Hang Seng Index rose 7 per cent in the second quarter, recovering from a 14-per cent slump in 2023 and a 3-per cent decline in the first three months of the year. Trade volume by mainland Chinese investors buying and selling shares in Hong Kong via the southbound channel of the Stock Connect mechanism also jumped in April and May, averaging 35 billion yuan and 52 billion yuan, respectively, compared with 28 billion yuan in the first quarter.

“All these are indications that investors, in particular mainland investors, who were previously sitting on the sidelines because of weak market sentiment at one stage, did return, and they were bringing their liquidity to Hong Kong,” said Kelvin Lau, Greater China senior economist at Standard Chartered Bank (HK).

Yuan deposits in the city have been steadily rising in recent years, driven by the “genuine business needs and investor needs for holding the currency”, he added.

“Hong Kong does not need to rely only on stock market-related activities to grow its renminbi deposits,” Lau said. “There are many other reasons we believe that international users are holding more and more renminbi deposits, structurally.”

Standard Chartered’s renminbi globalisation index, which tracks the yuan’s level of internationalisation, rose to record high of 5,324 in July, extending a gain of 17 per cent this year.

The bank’s report last week highlighted growing use of the yuan in global payments as a strong driver in the July uptick.

The yuan’s share of global payments hit a record of 4.74 per cent last month, keeping its fourth-place spot in the ranking of payment currencies, according to data from interbank messaging service Swift. In addition, the currency ranked second with a share of 6 per cent in the global trade finance market.

“As long as companies continue to diversify their export reliance beyond traditional Western markets, especially the intra-Asia trades, there are more reasons to use the renminbi going forward,” said Lau.

Meanwhile, dim sum bonds, or offshore yuan-denominated bonds, recorded strong activity in recent months due to lower financing costs and buoyant mainland demand. The China finance ministry’s plan to offer 55 billion yuan in dim sum bonds this year in Hong Kong has boosted the tally, with the latest fourth offering of 9 billion yuan being completed earlier this month. That issuance was oversubscribed by 2.4 times.

“Hong Kong’s advantage as an offshore yuan hub is its cultural and geopolitical proximity to the people who actually use the currency and those who want to invest in that currency,” said Angela Chan, a partner at Clifford Chance.

The city’s significant population of investment banks, securities houses and family offices provides considerable investible capital for yuan products, said David Tsai, another partner at the law firm. “It could set the bar regarding regulation and product creation and continue to be the first mover,” he said.

Evolving foreign-exchange dynamics between the yuan and the US dollar are expected to become a new tailwind for the offshore yuan bond market, which in turn benefits the internationalisation of the yuan, according to Standard Chartered’s Lau.

“The fact that interest-rate cuts coming out from China will be much slower and shallower than the US means it’s usually positive for the renminbi,” he said.

International investors will be encouraged to move their money out of US dollar assets and into yuan assets as the yuan’s depreciation expectation has reduced, while mainland investors will continue to be interested in the higher offshore yields compared with the onshore, he added.

China’s yuan volatility rising on interest rates, US presidential election: Goldman

https://www.scmp.com/economy/global-economy/article/3276585/chinas-yuan-volatility-rising-interest-rates-us-presidential-election-goldman?utm_source=rss_feed

The volatility of the Chinese yuan’s exchange rate with the US dollar is set to rise in the near term due to the uncertainty surrounding interest rate cuts and the presidential election, investment bank Goldman Sachs said on Friday.

Moves by the US Federal Reserve, as well as November’s election, would discourage the selling of yuan, and could lead to a temporary “overshooting” in the currency’s strength, they added.

“We think the recent yuan appreciation against the US dollar is mostly driven by external factors, especially by the changes of market pricing for Fed rate cuts (faster Fed rate cuts) and US election,” Goldman Sachs research analysts led by Xinquan Chen said in a research note.

“External factors likely remain key drivers of [the] US dollar-yuan [exchange rate] in the coming months.”

The offshore yuan has gained about 2 per cent this month in the anticipation of an interest-rate cut by the US Federal Reserve, with the currency strengthening to surpass 7.1 against the US dollar to 7.076 on Friday.

US Federal Reserve chair Jerome Powell said last week that “the time has come for policy to adjust”, marking a reversal after 11 interest rate increases from March 2022 until July last year.

A debate between Vice-President Kamala Harris and former president Donald Trump on September 10 ahead of November’s election, if followed by an interest-rate cut by the US Federal Reserve on September 18, would catch the attention of currency traders, added Goldman Sachs.

Meanwhile, Chinese exporters are estimated by Goldman Sachs to have been hoarding around US$400 billion worth of US dollars since mid-2022, far below the US$2 trillion yuan estimated by Bloomberg, indicating a potentially smaller impact of Chinese exporters converting their funds into yuan-denominated assets.

The “estimates” by Bloomberg have “likely overstated” risks to the US dollar, the research note said, noting that there is growing concern among investors over the potential impact of Chinese exporters converting foreign-currency assets into yuan-denominated assets.

“US dollar assets remain attractive given our expectations of still-large US-China interest rate differentials and still-weak domestic sentiment,” added the note, expecting the yuan to underperform against currencies of major trading partners due to weak domestic fundamentals.

HSBC said on Friday that it was “circumspect about whether there would be a tsunami” of foreign exchange sales over a short period favouring the yuan.

The bank said “positive carry” on US dollar-yuan positions and a “weak” Chinese industrial cycle, along with muted consumption growth in China, would hamper any sudden surge in sales.

Additional reporting by Mia Nulimaimaiti

China’s central bank tries new tool with 100 billion yuan net purchase of treasury bonds

https://www.scmp.com/economy/china-economy/article/3276594/chinas-central-bank-tries-new-tool-100-billion-yuan-net-purchase-treasury-bonds?utm_source=rss_feed

China’s central bank has conducted its first treasury bond trade in nearly two decades in the open market, unveiling the long-waited new monetary tool to help manage the domestic bond market and also stabilise the economy.

In an online statement released in Friday afternoon, the People’s Bank of China said it had bought short-term treasury bonds from primary dealers and sold long-term bonds, with a net purchase of 100 billion yuan (US$14 billion), as part of its efforts to “fulfil the requirements set out at the central financial work conference” in October.

More to follow …

Hong Kong life insurance sales hit record, driven by buyers from mainland China

https://www.scmp.com/business/banking-finance/article/3276563/hong-kong-life-insurance-sales-hit-record-driven-buyers-china-and-jumbo-policy?utm_source=rss_feed

Life insurance sales in Hong Kong surged by 12 per cent in the first half to a record high as a buying spree continued among mainland visitors and wealthy individuals in Hong Kong.

New life insurance sales rose to HK$115.9 billion (US$14.9 billion) from the HK$103 billion reported in the same period last year, which itself was a record, according to the Insurance Authority.

The level is the highest since the authority was established in 2016 and 16 per cent higher than the total of HK$99.9 billion in the first half of 2019, before the Covid-19 pandemic.

Sales of policies to mainland visitors in the first half amounted to HK$29.7 billion, down 7 per cent from HK$31.9 billion a year earlier. Still, that is higher than the pre-Covid level, when mainlanders bought HK$26.3 billion of life and medical policies in the first half of 2019.

Mainland visitors accounted for 26 per cent of the total life and medical premiums in the first half.

Besides mainland visitors, the strong growth was also due to HSBC Life issuing the world’s most valuable life insurance policy at the beginning of this year. The policy, with a protection value of US$250 million, was certified by Guinness World Records in February.

Though the premium was not disclosed, the sale was a major boost to total sales of new life insurance and helped HSBC Life maintain its position as the top life insurer in Hong Kong in terms of new sales in the first half.

“I am excited to witness the rising offshore demand for high-quality savings solutions” said Daisy Tsang, CEO of HSBC Life Hong Kong and Macau. “As a key international financial centre, Hong Kong has seen a surge in demand from offshore clients seeking premium savings and wealth-management solutions.”

Tax incentives the Hong Kong government created in May last year to encourage wealthy people to set up family offices in the city, along with the introduction of the new Capital Investment Entrant Scheme in May, have made Hong Kong an ideal hub for attracting high-net-worth clients to buy jumbo policies for wealth management and estate planning, she said.

“The increasing cross-border mobility between Hong Kong and other Greater Bay Area cities is creating significant opportunities for innovation in the insurance sector,” Tsang added.

Other leading players, such as AIA Group and Manulife, also reported good sales growth in the first half.

Mainland customers like to buy insurance policies in Hong Kong as the products are sold in US dollars or Hong Kong dollars. This helps hedge against a falling yuan, which has weakened 13 per cent against the US dollar over the past two years.

In the first half, 21 million travellers visited Hong Kong, an increase of 64 per cent from a year earlier, according to data published by the Hong Kong Tourism Board. Two-thirds were from the mainland.

Mainland Chinese tourists last year spent HK$59 billion on life and medical insurance policies in Hong Kong, higher than the level recorded in 2017 and 2019 of HK$43 billion to HK$51 billion, respectively.

“As Hong Kong continues its economic growth and welcomes an increasing number of visitors, we witness our industry’s resilience and robust development in the first half of the year,” said Patrick Graham, CEO of Manulife Hong Kong and Macau. “We are delighted to have contributed to this momentum, achieving strong growth across multiple key performance metrics.

“Looking towards the second half, we maintain a cautiously optimistic outlook on growth prospects driven by a steady increase in visitor numbers and the government’s initiatives to invigorate the local economy and tourism.”

The increase in the number of Hongkongers travelling outside of the city also drove up demand for travel insurance, sending new premiums for accident and health insurance up 22 per cent to HK$11.7 billion in the first half, the Insurance Authority’s data showed.

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China’s Communist Party brings in new rules to regulate faith, loyalty and performance

https://www.scmp.com/news/china/politics/article/3276521/chinas-communist-party-brings-new-rules-regulate-faith-loyalty-and-performance?utm_source=rss_feed

China’s ruling Communist Party has rolled out a set of new rules to remove incompetent members deemed lagging in their faith, loyalty and performance, in a bid to further strengthen the party’s control over the conduct of its nearly 100 million members.

The new rules released by the party’s general office on Thursday, decree that underperforming party members, whose problematic conduct might not warrant a formal corruption investigation, be disqualified from the party, state-run Xinhua news agency said.

Comprising 27 articles, the rules are “crucial for exercising full and rigorous” party self-cleansing, according to Xinhua, quoting an official from the Central Organisation Department, the party’s top personnel office.

Unlike disciplinary measures imposed on party members who violate the party’s discipline, such as for corruption, this new set of regulations specifically targets party members who “lack revolutionary spirit, fail to fulfil their party obligations, or no longer meet party membership criteria”, the official told Xinhua.

It is essential for establishing a team of party members with “stronger beliefs, better political reliability, superior qualities, stricter discipline and more significant contributions”, the official said.

According to Xie Maosong, a senior research fellow at the National Strategy Institute at Tsinghua University, membership of the ruling Communist Party is a necessity for any inspiring Chinese who wants to climb the political or social ladder, but that many had slacked off after joining the party.

“The party is already very big. While it is growing in numbers, it must also control the quality of people who are in the party,” Xie said.

According to the report issued by the Central Organisation Department in June, the party had more than 99.18 million members at the end of 2023, up by more than 1.14 million from 2022.

Xie said before these rules, the party mainly relied on the party’s anti-graft watchdogs for self-cleansing but it could only tackle serious wrongdoings.

Many with smaller conduct problems had previously been undisciplined but now the organisation department would have necessary means to show the exit to those who were lagging behind, he said.

The official from the Central Organisation Department said party branches were now required to closely watch their members’ conduct and set a deadline for underperforming members – such as those failing to take part in regular party activities or pay membership fees in full and on time – to rectify their behaviour.

The party branch would expel members who have lost their ideals and beliefs, waver in their political stance, are disloyal to the party or fail to take part in party organisational activities for six months without a valid reason, or neglect work assigned to them by the party.

The party branch can persuade those who fail to rectify their conduct to voluntarily withdraw from the party, or it can expel them, depending on the circumstance, according to the official.

The official added that members who threatened to leave the Communisty Party as an attempt to leverage gains would be strongly encouraged to withdraw from the party if they did not change their behaviour despite consultation.

5 China monks akin to KOLs – 1 charms women while another turns temple into delivery room

https://www.scmp.com/news/people-culture/china-personalities/article/3276386/5-china-monks-akin-kols-1-charms-women-while-another-turns-temple-delivery-room?utm_source=rss_feed

The collision between Buddhism and social media in China has propelled some monks into the public consciousness.

Some have captivated fans with their handsome looks, amassing over one million followers, while others have won hearts through philanthropy, such as rescuing stray animals and helping abandoned children.

Today, the Post turns the focus on five monks who have taken the internet by storm.

Most handsome

Known as “the most handsome monk,” Shi Mingxin is based in Jiaxing, Zhejiang province in eastern China and has 1.7 million followers on Douyin thanks to his striking appearance and stature.

Originally named Jin Hanjie, he secured a job as a civil servant in 1999 and worked at a government office.

The secular and stable life soon left him feeling lost and unfulfilled until one day when Buddhist music inspired a profound spiritual awakening, leading him to decide to become a monk in 2009.

Now, as the abbot of the old Pu’an Temple, Shi Mingxin has attracted a surge in the number of pilgrims.

His handsome appearance has even attracted the admiration of some wealthy women, but he remained unmoved, continuing to focus on his spiritual practices.

Beyond his spiritual duties, he enjoys playing basketball.

Master Chishan

Master Chishan from Linggu Temple in Nanjing in the country’s eastern province of Jiangsu, has attracted a following of 1.2 million on Weibo, captivating social media with his good looks.

In March 2022, tourists and photography enthusiasts flocked to the temple, some even using drones, eagerly capturing his every move.

He patiently walked up and down the temple steps repeatedly to accommodate the photographers.

One internet user joked: “The monk probably never anticipated that being a monk could be more exhausting than being a lay-person. Master Chishan, acting as the ‘face of the temple,’ has become busier than a Tang Monk.”

Genius monk

Liu Zhiyu, born in 1988, is probably one of China’s most renowned monks, largely due to his talent in mathematics and breadth of experience.

He won a gold medal at the International Mathematical Olympiad in 2006 and was admitted to Peking University without sitting exams.

In 2010, Liu turned down a full scholarship to the Massachusetts Institute of Technology (MIT) to become a monk at Beijing’s Longquan Temple, a decision that left many, including his parents, in disbelief.

However, his life in the temple only lasted eight years.

In 2018, Liu left the temple and returned to a secular life, even announcing his marriage last year to the only woman he had ever dated.

He is the co-founder of a psychological counseling company and has attracted 255,000 followers on his Douyin account.

Liu said his life was deeply influenced by the ancient Taoist philosophy of Zhuang Zi, who believed that all life follows its own natural course and there is no good or evil.

The saviour

Zhi Xiang, 56, is a Shanghai-based Buddhist monk at the Bao’en Temple, and has been saving animals since the early 1990s.

“Once, I was on a ramp, and there was a cat with its waist crushed by a car. It struggled to crawl from the middle of the road to the left side.

“The incident deeply moved me, and I decided to focus on rescuing cats on overpasses at that time. Later, in late 2006, I started rescuing dogs,” he told China Internet Information Center.

Over a 28-year period, he has expanded his efforts and now leads a small team operating an animal shelter that cares for more than 9,000 stray cats and dogs.

He revealed that the annual total cost of running the shelter is about 12 million yuan (US$1.7 million). This is partially offset by voluntary donations from well-wishers.

Zhi Xiang trains some skilled animals to become police or military dogs, allowing them to support themselves while contributing to society.

Protective papa

Wu Bing, 49, from Jiangsu province in eastern China, also known as Monk Daolu and affectionately dubbed “Papa Wu,” has dedicated his life to providing shelter and assistance to pregnant women and abandoned children.

Originally a successful businessman, Wu became a monk in 2010 and transitioned into philanthropy.

Initially, the children he adopted lived in the temple, but they were later relocated to a small house known as the “Protective Abode,” which accommodates more than 50 children, ranging from newborns to 10-year-olds.

Wu has rescued more than 600 pregnant women and their children.

His team also sells vegetarian food and tea on Douyin and has 480,000 followers.

Subtle but substantial: China’s outreach to island states tips military power play

https://www.scmp.com/news/china/military/article/3276363/subtle-substantial-chinas-outreach-island-states-tips-military-power-play?utm_source=rss_feed

Two weeks after Beijing signed an agreement to strengthen its “comprehensive strategic partnership” with East Timor, it sent a military delegation to the small island state that reached “a series of consensus” on bilateral defence.

The development is likely to have caught the attention of officials in the US, Australia and New Zealand – East Timor’s traditional security partners since achieving its independence from Indonesia in 2002.

In recent years, China has been boosting its defence diplomacy with small island developing states like East Timor – which sits on the Southeast Asian boundary with Oceania, not far from Australia’s northern coast – and the Pacific Islands.

Faced with development and climate change challenges, many of these island nations have gained traction from the geopolitical rivalry between China and the US, thanks to their locations along important maritime waterways and plentiful ocean resources.

A security pact between China and the Solomon Islands in March 2022 drew resistance from Australia and the US, prompting a “pragmatic” balancing act from the government of then prime minister Manasseh Sogavare.

The pact’s contents, while not made public, were understood to give the Chinese navy access to ports in the Solomon Islands, which raised alarm in Washington and Canberra.

The Solomon Islands’ ruling party pledged in February to “strengthen relationships with China through a ‘look North’ foreign policy, while nurturing ties with other traditional partners such as Australia”.

Observers said that China’s growing influence was giving Beijing a strategic outlook on regions previously beyond its reach, but there were also incentives for East Timor and other small island nations to seek their own strategic advantages.

Huang Chin-Hao, an associate professor of political science at the National University of Singapore, said that East Timor – one of Asia’s poorest nations – was still rebuilding from the pre-independence conflict and “remains relatively fragile in terms of its security and defence capabilities”.

“[East Timor’s] priority and urgency is ensuring internal stability within the country and having the capability to ensure that … I think this is one area where China could play some role, in terms of training, providing equipment,” he said.

According to Huang, the East Timor government would also be eagerly looking for external help with its border and coastline security, while remaining “conscientious of not overly relying on just one source”.

“I wouldn’t say [its strategic location] is that important [to China], but as they’re looking into developing closer partnerships with small states in the region, East Timor seems to be a good one to cultivate and further those ties, just because the baseline for any prior engagement is so low,” he said.

Beijing and Dili agreed in July to enhance exchanges “at all levels” between the military and police forces, including training, equipment and technology, joint exercises and law enforcement, according to the Chinese foreign ministry.

In the five-day visit to Dili that followed soon after, a Chinese military delegation and East Timor representatives “exchanged views on promoting bilateral defence cooperation”, China’s defence ministry said.

The two sides “reached a series of consensus, which further enriched the connotation of bilateral defence cooperation”, it added.

East Timor has a relatively small military of around 2,000 personnel, with vehicles and equipment mostly donated from other countries, according to the Australian Army. These include China, South Korea, and the US.

According to Huang, closer security ties with East Timor – which has observer status with the Association of Southeast Asian Nations – could be “potentially useful for China to have their ears closer to the ground to the region”.

“It’s about building trust with potentially the newest member of Asean and hopefully being able to leverage that trust and relationship cultivated over the years to strengthen those ties in ways that would fulfil Chinese military diplomacy, especially when it comes to disputes and things like that in the South China Sea.”

But East Timor did not have the capacity to receive large Chinese vessels or naval ships, while China would “definitely not” be able to base its personnel on the island any time soon, Huang said.

China also “does not have that kind of forced projection like the United States has, or what Australia has, given [its] historical ties [with] those countries”, he added.

Abdul Rahman Yaacob, a research fellow with the Lowy Institute’s Southeast Asia Programme, said he expected that East Timor was likely to maintain an equal distance from the US, China and Australia.

“The country’s leadership is not keen for East Timor to be drawn into great power rivalry but at the same time, it seeks to draw economic benefits from engaging with foreign powers,” he said.

East Timor and the Solomon Islands are not the only island nations navigating between China and the US, along with its allies in the Indo-Pacific region, as Beijing presents itself as an alternative economic and security partner.

Australia’s long-standing Pacific maritime security programme covers 15 of its Pacific Island neighbours as well as East Timor and provides help in maritime security, governance, communications and training.

Australia also has 21 army and two navy personnel stationed in East Timor as part of the maritime security agreement.

New Zealand also has a mutual help programme for regional peacekeeping and deploys two military personnel with the East Timor military to provide strategic and logistics advice. Wellington also provides policing support.

In addition to its security pact with the Solomon Islands and its agreements with East Timor, China has increased police cooperation with countries like Fiji, Kiribati, Samoa, and Vanuatu.

The Chinese naval hospital ship Peace Ark also visited East Timor and four Pacific island nations to provide humanitarian medical services last year.

These engagements with China have been viewed as balancing acts to the traditional security help that the US provides to the island states, including the joint annual Carat exercise between the US Navy and East Timor Defence Force, held this year in June.

According to the Lowy Institute, an Australian think tank, the number of military exercises China conducted with East Timor between 2021 and 2023 amounted to less than a fifth of East Timor’s drills with US forces over the same period.

Zhiqun Zhu, an international relations professor and director of the China Institute at Bucknell University in Pennsylvania, said China’s main interests in the region remained economic, despite its increased investments and aid.

“To the extent that China wishes to protect its overseas commercial interests, it will beef up security cooperation with countries where it has investment and personnel. However, this is not the same as the assumption that China intends to become a military power in the region,” he said.

South China Sea: Philippine push on tiny Thitu Island could stoke further tensions with Beijing

https://www.scmp.com/week-asia/politics/article/3276469/south-china-sea-philippine-push-tiny-thitu-island-could-stoke-further-tensions-beijing?utm_source=rss_feed

Thitu Island, a little-known outpost in the contested South China Sea which analysts say is “critical” to the Philippines’ maritime security, could become a potential flashpoint after Beijing criticised Manila’s efforts to upgrade its military presence there.

China’s state-owned Global Times newspaper last week accused the Philippines of causing possible “provocations” on Thitu by expanding its military infrastructure to “potentially invite warships and warplanes from countries outside the region such as the US and Japan, sabotaging peace and stability in the South China Sea in the process”.

Thitu is the largest land mass in the Philippine-claimed Kalayaan Island Group within the Spratly Islands, located about 285 nautical miles (528km) from the western island province of Palawan. Mainland China, Vietnam and Taiwan also lay claim to the area.

China’s accusations about Thitu, known as Pag-asa Island in the Philippines, come amid a recent series of clashes between Manila and Beijing at nearby Sabina Shoal and Second Thomas Shoal, with both sides blaming the other for the incidents.

The Philippines established a coastguard monitoring base equipped with radar, ship-tracking, and other monitoring equipment on Thitu in December. The island also features military barracks and an unpaved airstrip.

Defence analyst Santiago Castillo told This Week in Asia that the Philippines had plans to further improve the defence infrastructure on the island to increase maritime domain awareness and logistical capacity of its military forces.

“As to potentially inviting warplanes from the US and Japan, that is a matter of logistics and operational coordination,” said Castillo, who previously worked in the Philippine government’s security sector.

Now a consultant in the private sector, Castillo said it was unclear whether the current facilities on Thitu would be able to accommodate any warplanes landing on the airstrip there.

Thitu is home to nearly 400 civilians, many of whom are subsistence fishermen plying the West Philippine Sea, Manila’s term for the portions of the South China Sea within its exclusive economic zone.

In May, Philippine lawmakers flew to the island on a “historic visit” to inaugurate the construction of new barracks and launch of a rural health unit for the villagers.

“Our investment in infrastructure projects on Pag-asa Island and in Kalayaan is an investment in our security in the West Philippine Sea,” then-Senate president Juan Miguel Zubiri said at the time.

“It will show China and the rest of the world that we have a thriving community in Kalayaan and that we have a functioning military unit ready to complement our patrols in our territory and exclusive economic zone.”

In July, President Ferdinand Marcos Jnr identified the development of an airport on the island as one of the government’s priority projects and said the procurement of land for a runway extension was under way.

These initiatives showed Manila’s resolve to maintain its presence and assert its sovereignty in the disputed waters, analysts said.

Observers note that Thitu is at the “heart” of the Philippines’ maritime and territorial claims in the West Philippine Sea.

The island is vital to the Philippines’ shifting its defence paradigm from decades of internal security operations towards an external approach, according to Castillo.

“Pag-asa Island is at the western edge of our territory, and I could liken it to a guard post and picket fence that keeps watch on what our regional neighbours are doing and gatekeeps unwanted presences,” Castillo said.

“Our presence in locations such as Pag-asa Island is critical for our maritime security and defence forces to have better domain awareness and presence in such areas.”

Chester Cabalza, president of the International Development and Security Cooperation think tank, said the Philippines was the first to build civilian communities on the “disputed islands”, whereas China had engaged in expansive land reclamation efforts “to militarise the South China Sea”.

He added that Beijing cannot deprive Filipinos of their constitutional right of abode “since they have their legitimate communities in Pag-asa Island”.

On China’s claims that the Philippines had been carrying out “infringement activities and provocations in the South China Sea”, Castillo said it was the other way around.

“While Chinese media would like to paint the Philippines as troublemakers, the Filipino citizens who are at the forefront of all this have maintained their discipline and resolve without having to resort to clearly aggressive, perhaps rather borderline belligerent behaviour,” he said.

In May, Philippine officials and marine biologists expressed alarm at the widespread destruction of coral reefs uncovered on the island, with many of them severely degraded and found in unusually high piles, indicating man-made activity.

Philippine Coast Guard spokesman Jay Tarriela attributed the damage to Beijing and said it should be held responsible for the damage and other environmental impacts from its land reclamation activities near the island.

Cabalza said the existing communities on Thitu were the strongest testimonies that the island belonged to the Philippines, despite overlapping claims with other countries.

Filipinos on Thitu had long expressed their frustration at the presence of Chinese vessels around the island, with fishermen seeing a decline in their catch, Cabalza said, adding that the island’s residents should be safeguarded from foreign intrusion and invasion.

Cabalza warned that any takeover by Beijing of the island would be seen as an act of war and “deemed an invasion at all cost”.

China ally Solomon Islands irked over conditions in Australia-brokered Pacific police deal

https://www.scmp.com/news/asia/australasia/article/3276493/china-ally-solomon-islands-irked-over-conditions-australia-brokered-pacific-police-deal?utm_source=rss_feed

Solomon Islands on Friday aired reservations about a landmark Pacific policing deal brokered by Australia, saying it should not preclude them from working alongside new-found ally China.

“There is one thing that is not so much nagging us, but it’s of concern,” Foreign Minister Peter Agovaka said on the sidelines of the Pacific Islands Forum in Tonga.

“The only thing that we do not agree to, is that it imposes conditions on our own domestic security.

“I don’t think another sovereign state should put conditions on another sovereign state.”

US ally Australia convinced its Pacific neighbours to back an initiative giving it a greater role training the region’s scattered and stretched police forces.

Hailed as a “godsend” by nations such as Fiji, others closer to Beijing appeared far more reluctant to get on board.

Agovaka said offers of policing help from Australia had come with strings attached.

“Conditions like not allowing our police officers who are trained under Australia to be again trained under the Chinese police.”

A leaked snippet of the summit’s final declaration indicated leaders supported the plan in principle, but were free to decide their level of involvement.

Leaders on Wednesday unveiled the plan to create up to four regional police training centres and a multinational crisis reaction force, backed by US$271 million in initial funding from Australia.

Under the plan, a corps of about 200 officers drawn from different Pacific Island nations could be dispatched to regional hot spots and disaster zones when needed and invited.

Canberra and Washington were caught napping in 2022 when Beijing signed a secretive security pact with Solomon Islands – the details of which still largely remain under wraps.

China now maintains a small but conspicuous police presence in Solomon Islands, sending a revolving cadre of officers to train locals in shooting and riot tactics.

Agovaka also questioned Taiwan’s observer status within the region’s top political bloc and voiced unease about the participation of US territories Guam and American Samoa.

He said members should be “sovereign states”, not “states that are governed by another jurisdiction”.

“American Samoa and Guam are territories of the United States. So sometimes we are uncertain if they are speaking for Guam, for American Samoa, or for the United States.”

Beijing sees Taiwan as part of China to be reunited 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.

Wukong mania drives China tourism, Filipino helpers to earn big in South Korea: 7 highlights

https://www.scmp.com/news/china/article/3276492/wukong-mania-drives-china-tourism-filipino-helpers-earn-big-south-korea-7-highlights?utm_source=rss_feed

Asia risks becoming a “powder keg” that could trigger World War III, according to a prominent Chinese academic who blamed the United States and its allies.

Australia could lose its appeal as the top destination for Chinese students to study abroad following Canberra’s decision to cap foreign student numbers, which would be a blow to its A$48 billion (US$32.6 billion) international education sector, analysts and consultants said.

One man has been found guilty over a thwarted bomb plot to kill police during Hong Kong’s 2019 social unrest and faces up to 20 years in jail, with six other defendants acquitted in the city’s first trial involving a UN anti-terrorism law.

China-based IBM workers found themselves blocked from accessing the company’s intranet system, before they were told that the IBM China Development Lab and China Systems Lab were shutting down.

Foreign domestic workers will enjoy high wages under a government pilot scheme – raising affordability concerns among Korean families seeking care.

Malaysia’s first shipment of fresh durian to the giant China market has arrived, vying for demand from eager consumers who are used to buying the spiky and pungent fruit from Thailand and Vietnam.

A province in northern China that has never been a tourist hotspot is suddenly attracting crowds thanks to the hugely popular new online game Black Myth: Wukong that includes scenes from the area.

US, European airlines pay more, lose out to Chinese carriers amid Russian airspace closure

https://www.scmp.com/economy/global-economy/article/3276417/us-european-airlines-pay-more-lose-out-chinese-carriers-amid-russian-airspace-closure?utm_source=rss_feed

With no end of the Ukraine war in sight, analysts said Western airlines are spending tens of thousands of US dollars per trip on extra flight time to reach China without the use of Russian airspace, blunting their competitive edge against their Chinese peers and prompting cuts in the number of flights.

The trend, which emerged following the outbreak of war in Ukraine in 2022, has also posed a challenge to Beijing’s efforts to court foreign travellers, which have included visa waivers, easier access to mobile payments and new cross-border flights.

Each hour of flying a Boeing 777 costs at least US$10,000, and sometimes double, said John Grant, a senior analyst with British aviation intelligence firm OAG.

In terms of fuel, a Boeing 777 burns about 7.5 tonnes per hour, while a more fuel-efficient jet such as a Boeing 787 or Airbus A350 use around 5.5 tonnes, said Dennis Lau, consultancy services director with Hong Kong-based aviation services firm Asian Sky Group.

A popular route from Beijing to Frankfurt on average takes a Chinese airline 9.5 hours, while a German carrier would need 12 hours to complete the same journey, analysts said.

More crew members are also required, while maintenance costs rise with each extra hour, and fleets would be able to do fewer flights, said Jonas Murby, a principal with the AeroDynamic Advisory consultancy in the United States.

“If each flight is taking an extra two hours each way, then it soon adds up to a lot of cash,” Grant said.

Airfares as of Tuesday were between 600 yuan to 1,200 yuan higher on European carriers compared to Chinese airlines, said Li Hanming, a Guangzhou-based aviation analyst.

Hong Kong-based Cathay Pacific, as well as Indian and Middle Eastern carriers, still fly over Russia, saving six tonnes of fuel per hour, he added.

Before the Ukraine war began, Western airlines would normally pass over the Kamchatka Peninsula on the way to China from North America or over Siberia if flying from Europe.

Authorities in Europe, the US and Canada barred arrivals by Russian airlines to voice opposition to the Ukraine war, and Russia responded by closing its airspace to 36 countries, mostly in Europe.

The Journal of Air Transport Management estimated in March that 6.2 per cent of all international flights take an average 13.3 per cent detour due to the closure of Russian airspace, raising global international air transport costs by 0.6 per cent.

Flights between North America and China that traverse the North Pole via Alaska spend 31.3 per cent more time and cover 31.4 per cent more distance, the journal said.

Airlines spend more to fly over Turkey or Central Asia, at a time when some direct flights to and from China already struggle to fill planes due to visa barriers, as well as geopolitical and economic issues.

Air France-KLM found that bypassing Russian airspace took one to two hours more on its flights between China and Amsterdam, “leading to additional fuel costs, impacting flight schedules and crew number”, a company spokeswoman said.

The airline operates 23 weekly peak-season flights from Amsterdam to two mainland Chinese cities, as well as Hong Kong and Taiwan, down from 43 before the coronavirus pandemic.

British Airways announced in early August it would stop flights between London and Beijing from October until November 2025, while Virgin Atlantic said it would suspend its flights between London and Shanghai.

British Airways also said it would halve its service between London and Hong Kong to one flight a day from October.

In Finland, flagship carrier Finnair has cut back its direct flights to China since the pandemic as it lost its competitive advantage of flying straight over its land border into Russia, Timo Kantola, the Finnish consul general in Hong Kong, said in July.

Average yields for German airline Lufthansa “are under pressure” on Asia routes, partly due to the expanding flight capacity of Chinese airlines and the closure of Russian airspace, company press officer Joerg Waber said.

Lufthansa operates 40 weekly flights from Munich and Frankfurt to Beijing, Shanghai and Hong Kong – less than half the 2019 total.

“European airlines are in extremely unequal competition with China,” Waber said.

“They have also been using Russian airspace for more than two years. The shorter routes result in further cost advantages.”

Transfer hubs such as Doha, Dubai and Istanbul are benefiting from the changes due to their geographic positions connecting traffic between China and Europe, analysts said.

In Asia, Hong Kong, Seoul, Taipei and Tokyo are filling the role as transfer hubs.

Visitors to China rose by 130 per cent year on year to 17.25 million in the first seven months of this year, according to the National Immigration Administration

Outbound travel has also picked up since the pandemic, although not to 2019 levels.

Stopovers in Hong Kong between China and the US have kept demand “strong” for Cathay Pacific, group CEO Lin Shaobo told Chinese digital media outlet Jiemian News in August.

Lin also said the airline was “working hard to increase flights to the United States”.

Kamala Harris pitches continuity in China-lite first interview since nomination

https://www.scmp.com/news/china/article/3276513/kamala-harris-pitches-continuity-china-lite-first-interview-nomination?utm_source=rss_feed

US Vice-President Kamala Harris sent a message of continuity on Thursday as she touted the Biden administration’s investment in alliances and domestic industries in her first, unscripted interview since being nominated as the Democratic Party’s standard bearer.

“What we have done to improve the supply chain so we’re not relying on foreign governments to supply American families with their basic needs – I’ll say that’s good work,” said Harris, 59, in response to a question about her “opportunity economy” plan for the middle class.

The joint interview with running mate Minnesota Governor Tim Walz was conducted by CNN’s chief political correspondent Dana Bash in a black-owned restaurant in Savannah, Georgia.

Harris, who was vaulted into position about five weeks ago when US President Joe Biden withdrew from the race and endorsed her as the party’s nominee, spoke for most of the interview.

The interview was thin on foreign policy.

Asked whether she would be different from Biden on Israel, Harris said she was “unequivocal and unwavering” in her support for its defence, but also noted that “far too many innocent Palestinians have been killed”.

“We have to get a deal done,” she said.

In response to a question about Biden dropping out, Harris spoke about his “transformative” presidency, highlighting his record in building confidence in “who we are as America”; bringing allies together; investing in domestic infrastructure and industries; and standing for “the importance of sovereignty and territorial integrity”.

The Democratic platform, released before the party’s national convention last week in Chicago, gave little insight into any differences Harris might have with Biden’s policies regarding Beijing or the Indo-Pacific region.

The 91-page document outlines familiar hallmarks of Biden policy: close coordination with allies to address “intense strategic competition” with China; continued resistance to Chinese coercion and unfair trade practices; a stronger US industrial base; and cooperation with Beijing where possible on climate, fentanyl and artificial intelligence.

The platform also criticises Republican presidential nominee Donald Trump’s plan to impose a 10 per cent tariffs on all imports, as well as his threat to impose a 60 per cent tariff on Chinese goods, calling them “reckless” moves that would cost American families.

Harris did not mention Trump’s tariff proposals on Thursday, even as she spoke about the effect of inflation on Americans and supporting the middle class.

Asked to address her changed stances on immigration and fracking, Harris said her “values had not changed”.

Addressing her pivot from supporting a fracking ban to opposing one, she pointed to the Biden administration’s Inflation Reduction Act, which delivered record investments in combating climate change, as an example of her stance on climate.

Harris has been hit by Republicans on her immigration record. In 2019, she dismissed Trump’s border wall as a “medieval vanity project”.

Yet at last week’s Democratic national convention, Harris committed to reviving a bipartisan immigration deal that collapsed in the Senate earlier this year. The agreement, a compromise between congressional Republicans and Joe Biden’s administration, would have represented the toughest crackdown on illegal immigration in years.

On Thursday, Harris reiterated her commitment to enforcing the law and signing the immigration bill, touting her record as a prosecutor.

Election day is November 5, but early voting starts next month in several states.

China has not been a major focus of the Democratic campaign, but is expected to come up in the first Harris-Trump debate, scheduled for September 10.

Harris has never been to China. Walz, however, spent time there as a teacher and has made some 30 trips to the country. He has been criticised by Republicans who argue that his experience with China has left him too close to Beijing.

That was not among the list of controversies that Walz was asked to address on Thursday. Instead, the Minnesota governor was asked to explain accusations that he misrepresented his military record, experience with fertility treatments, and history of drunk and reckless driving.

“I certainly own my mistakes when I make them,” Walz responded.

According to a Reuters/Ipsos poll published on Thursday, Harris leads Trump 45 per cent to 41 per cent nationwide, though the US’ Electoral College system of selecting the president and vice-president means the voting outcome in a handful of states will be decisive.

An August poll by the Associated Press-NORC Centre for Public Affairs Research, conducted before the Democratic convention, found that 44 per cent of US adults had an unfavourable view of Republican vice-presidential candidate J.D. Vance, compared with 25 per cent for Walz.

Sightseeing, gala show among events on day 2 of Hong Kong visit for China’s Olympic stars

https://www.scmp.com/news/hong-kong/society/article/3276467/sightseeing-gala-show-among-events-day-2-hong-kong-visit-chinas-olympic-stars?utm_source=rss_feed

This live blog has been made freely available as a public service to our readers. Please consider supporting SCMP’s journalism by . to get faster notifications.

After a rousing welcome from fans and officials in Hong Kong on Thursday, a delegation of Olympic stars from mainland China will spend their second day in the city attending various meet-and-greet events.

A highlight will be Friday evening’s gala show, with all 5,100 tickets for the public snapped up within just 35 minutes. Select groups of local athletes, students and members of the disciplined services are also set to meet the delegation during the day.

Follow the Post’s coverage as the Olympians and their coaches greet the public and enjoy sightseeing trips to famed tourist spots including The Peak and Victoria Harbour.

Reporting by Angeline Jiang, Leopold Chen, Vivian Au, Sammy Heung, Jess Ma and Ambrose Li

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Can China build 2-way bridges with Global South partners?

https://www.scmp.com/opinion/china-opinion/article/3276070/can-china-build-two-way-bridges-global-south-partners?utm_source=rss_feed

“Where the hills and streams end and there seems no road beyond, amid shading willows and blooming flowers, another village appears.” This quote from the great poet Lu You describes a situation in which even though things look bad, events have actually taken a turn for the better. After years of reading negative news about Confucius Institutes, I feel that it’s quite fitting to apply this line to one of China’s other outreach efforts, Luban workshops.

Confucius Institutes are supposed to “tell China’s story well” by teaching Chinese language and culture as well as providing a space for cultural exchange. However, they have been subjected to intense criticism in Western countries for allegedly serving as propaganda tools and encroaching on academic freedom.

Fortunately, where Confucius Institutes have failed, Luban workshops have the potential to succeed. Since the first centre was established in 2016, the workshops have become a network of vocational training schools across Africa and Asia, offering courses such as electromechanics, new energy vehicles and “Internet of Things” engineering.

Another advantage of Luban workshops is that they’re geared towards the Global South as opposed to Western countries where China has met strong opposition and where many Confucius Institutes have been shut down.

Luban courses focus on skills that can be easily transferred to the workplace. This is arguably way more practical than courses offered by Confucius Institutes, such as calligraphy, which many would see as a hobby, or Chinese language, which requires years of study for students to only scratch the surface.

Thus, although they have a more technical orientation, courses offered by Luban workshops could have a stronger cultural impact than Confucius Institute offerings.

China struggled through years of decline and turmoil. It only began developing in earnest less than 50 years ago. Although still lagging behind in key areas, China has made huge strides in uplifting its people.

This story resonates with the Global South, where many countries have suffered exploitation for hundreds of years, and long for better economic conditions. Looking at China’s success, they know they too can succeed. This could explain the results of a recent poll published by Pew Research Centre last month, where 14 out of 17 middle-income countries had a favourable view of China.

When students at Luban workshops learn how to operate Chinese equipment, they are not only learning practical skills but also indirectly learning about China. It’s a form of education outreach that tells a pretty good China story.

However, for all the improvements that Luban workshops have made over Confucius Institutes, they still appear to be a one-way bridge – a flow of expertise from China to the Global South. For example, the Chinese Ministry of Education says these training centres bring the “standards, models, equipment and programmes of Chinese vocational education” to the countries involved.

Zhao Zhiqun, a vocational education specialist at Beijing Normal University, believes that “in the future, the focus of China’s vocational education should be about serving Chinese enterprises going abroad, by cultivating local vocational talent teams that understand Chinese language and culture”.

Such attitudes inadvertently leave an impression of condescension. It would be better if Luban workshops also facilitated the flow of information from the Global South to China, doing what Matteo Ricci did in the 16th C, only without the religious aspect.

Ricci was a well-educated Renaissance man. He helped bring Western scientific developments to China, such as those in astronomy, mathematics and geography. His “Great Map of Ten Thousand Countries” awed the Chinese. He was also one of the earliest Western scholars to read Chinese literature and study Chinese classics.

His Latin translation of the Chinese classics, The Four Books, as well as his letters and memoirs on his impressions and experiences in China, provided Europeans with fundamental knowledge about Chinese culture. He was a true cultural bridge between the East and the West.

Since Luban workshops already aim to bring technological advancements to the Global South, the next step should be to introduce the Global South to Chinese audiences.

Indeed, the term “Global South” itself is a vague concept. I bet most Chinese people are like me, and only have a fuzzy idea of what it means. We probably know more about American politics than the differences between Ethiopia and Kenya.

This is where Luban workshops could make a difference. Like Ricci, Luban workshops could use their geographical advantage to become a true cultural bridge between China and the Global South.

500 people 1 face: debate rages as fans of China beauty KOL replicate her ‘baby faced’ look

https://www.scmp.com/news/people-culture/china-personalities/article/3276369/500-people-1-face-debate-rages-fans-china-beauty-kol-replicate-her-baby-faced-look?utm_source=rss_feed

A baby-faced beauty key opinion leader (KOL) in China has inspired more than 500 fans to replicate her look by encouraging them to have cosmetic surgery at her clinic.

On the mainland, a baby face is characterised by a round shape, big eyes, plumped-up lower eyelids and a small chin, giving the appearance of youth and innocence.

Wang Jing, 30, from Zhejiang province in eastern China, shares her cosmetic surgery experiences and fashion choices on Douyin, attracting 940,000 followers.

She revealed that she has spent more than a million yuan (US$140,000) on operations to achieve the face that makes her look 10 years younger.

In her videos, Wang explains the surgery she has undergone over the past few years.

“After the initial surgeries, my face was uneven and bumpy. Through multiple corrective procedures, I finally achieved the ideal baby face.

“Half of each year is spent recovering. I’ve endured so much pain, the beauty I have now is well-deserved,” she said.

Wang’s baby face has been hailed as the perfect model for the specific look by the cosmetic surgery industry.

“Just like make-up styles can be imitated, many young women want to replicate Wang’s baby face. It’s as if time has frozen, giving an innocent and baby-like charm,” one Douyin user wrote.

Online sources have revealed that the influencer runs her own cosmetic medical clinic.

She holds consultations with clients, using her own face as the template for their procedures, which are performed by her chief surgeon.

At Wang’s clinic, the price for three hyaluronic acid injections into the face to plump it up is 38,888 yuan (US$5,400).

Obtaining the same shoulder shape as Wang’s, which are said to make clothes look more stylish, costs 25,888 yuan.

Reports on Zhihu show that, based on customers’ cases Wang shared on Douyin, 517 people have already replicated her baby face.

“Wang is building her own kingdom, where everyone looks the same as her,” a Douyin user said.

Jingjing, one of Wang’s fans, claimed she spent more than 60,000 yuan (US$8,400) to acquire the baby face look.

She wrote on the Xiaohongshu social media platform: “I finally joined Wang’s kingdom. After investing in my face, I realised I could also be beautiful and confident.”

A female writer with 2.1 million followers on Weibo, who uses the name “Li Xue loves and freedom” online, said women should not pursue a really youthful look, because confidence and beauty shine at any age.

“The pursuit of a baby-style aesthetic is a way of seeking care and affection by appearing weak,” she said.

The copycat phenomenon has sparked a heated debate on mainland social media.

“Losing individuality, with everyone looking the same, is terrifying and eerie,” one Weibo user wrote.

While others held a different view: “Cosmetic surgery is about pleasing oneself. It’s their own money, and it’s not illegal, so there’s nothing wrong with it.”

“What worries me is the high maintenance costs after surgery. As you age, facial fillers can cause deformation and even carry a risk of facial paralysis,” someone else said.

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China’s internet users near 1.1 billion, driven by short videos and mobile payments

https://www.scmp.com/tech/tech-trends/article/3276441/chinas-internet-users-near-11-billion-driven-short-videos-and-mobile-payments?utm_source=rss_feed

China’s internet users approached 1.1 billion at the end of June, up 7.42 million from December, as a plethora of online entertainment options lured the young and old into joining the world’s largest online population, the latest government figures showed.

Around 78 per cent of mainland Chinese citizens were connected to the internet as of June, according to a report released on Thursday by the China Internet Network Information Centre (CNNIC), a state agency. Over 37 per cent of new internet users were drawn to short video apps, the report said.

Entertainment and social needs were the main drivers of internet usage in China. Some 95 per cent of web users in the country had viewed short videos, which are available on popular platforms, including ByteDance’s Douyin, its rival Kuaishou, as well as Tencent Holdings’ multipurpose app WeChat.

Short dramas, with each episode typically a few minutes long, were watched by over 52 per cent of internet users, the survey showed. As the sector gains popularity, Chinese authorities have been tightening their scrutiny. Since June, all short dramas in the country have been required to go through production licensing and content reviews before being aired.

Most of those who joined the internet in the first half of this year were between the ages of 10 and 19 years old, accounting for 49 per cent of the total, as well as elderly people aged 50 or above, accounting for 36 per cent.

The CNNIC, which has been conducting twice-yearly surveys of the nation’s internet sector since 1997, recorded a slowdown in user growth, as internet penetration neared saturation. In the same period last year, China added 11.09 million web users.

Digital payments are becoming more popular among the elderly and foreigners. In the first six months of the year, over three quarters of internet users aged 60 and above had used online payment services.

During the same period, more than 5 million inbound visitors used mobile payments, a fourfold jump from a year ago. Transaction numbers surpassed 90 million to exceed 14 billion yuan (US$2 billion), a sevenfold increase year on year, CNNIC data showed.

This comes after China’s two dominant mobile payment services, Ant Group’s Alipay and Tencent’s WeChat Pay, eased the way for foreign travellers to pay for goods and services on the mainland, following new guidelines released in March by the State Council – the national cabinet.

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

The report also highlighted trade-in sales on e-commerce platforms, part of a nationwide government initiative launched in March to encourage consumers to upgrade their home appliances and vehicles, aimed at boosting sluggish consumption.

In the first half of the year, nearly 69 per cent of trade-in participants used online platforms to replace items like smartphones and traditional household appliances.

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Expiration of major US-China science treaty signals deep uncertainty amid high tensions

https://www.scmp.com/news/china/diplomacy/article/3276479/expiration-major-us-china-science-treaty-signals-deep-uncertainty-amid-high-tensions?utm_source=rss_feed

A key US-China science and technology treaty has expired with little apparent evidence of progress following a year of delay fuelled by American apprehensions over how China has benefited from the decades-old pact.

Renewal of the US-China Science and Technology Agreement (STA), the first bilateral deal signed between the two countries in 1979, had been postponed twice since August 2023. The most recent six-month extension expired on Tuesday.

A State Department official on Thursday said on background: “I don’t have anything additional to share at this time.”

This followed word by the same official a day earlier that the two sides were “in communication” about the STA “including on the necessary guardrails around any such cooperation, strengthened provisions for transparency and scientific-data reciprocity”.

“The United States remains committed to advancing and protecting US interests in science and technology,” the State Department official added. “We have nothing further to share about the status of the agreement at this time.”

On Thursday, the Chinese embassy in Washington did not immediately respond to a request for comment.

In the lead-up to the deadline, the Chinese embassy in Washington told the Post that “China-US cooperation on science and technology is mutually beneficial”.

“To my knowledge, the two sides have maintained communication about the renewal,” spokesman Liu Pengyu said last Thursday.

Discussion of the treaty coincides with the US presidential race shifting into high gear ahead of the November 5 election.

The race has seen Republicans accuse Democratic presidential nominee, Vice-President Kamala Harris, and her running mate, Minnesota governor Tim Walz, of being too close to Beijing.

Just hours before the pact was about to expire on Tuesday, the Chinese embassy said it would “release related information at [an] appropriate time”.

“China and the US side are keeping communication on this,” the embassy said late on Tuesday.

Meanwhile, a State Department spokesperson said on background last Friday that the department was negotiating on behalf of the US government to “modernise” the agreement “to reflect the current status of the bilateral relationship”.

“We are not prejudging the outcome,” the spokesperson.

The discussion also comes amid simmering tensions on multiple fronts between the two economic superpowers

This week National Security Adviser Jake Sullivan met in Beijing with President Xi Jinping and Foreign Minister Wang Yi to stabilise bilateral relations tested by their differences over Taiwan, the South China Sea, tariffs and fentanyl.

Originally signed by US President Jimmy Carter and Chinese Premier Deng Xiaoping, the symbolically significant pact has been renewed every five years since it took effect, with the most recent renewal in 2018 under then-president Donald Trump.

After August last year, when it was on the verge of lapsing, the two countries extended it twice, for six months each time, to negotiate renewal terms.

In March, the US House Foreign Affairs Committee unanimously approved a bill to impose greater congressional scrutiny on future State Department efforts to enter, renew or extend any science and technology agreement with China.

For decades, the existing agreement has fostered scientific collaboration by providing American and Chinese researchers financial, legal and political support.

According to the Congressional Research Service, sub-agreements under the STA have encompassed research areas such as agriculture, energy, the environment, nuclear fusion and safety as well as earth, atmospheric, marine sciences and remote sensing.

Its supporters contend the deal shields American researchers working in China and enables research in the US by granting access to crucial Chinese databases, especially in areas like health studies.

But critics say China’s state supervision and control over local science and technology projects have allowed Beijing to exploit the STA.

They claim Beijing can address scientific gaps, hone skills and capitalise on America’s decentralised academic landscape to predominate in sectors like electric vehicles and renewable energy.

In June, the House select committee on China asked the Commerce department to provide information “to assess the damage already caused to US national security” caused by the STA.

“We believe the US-PRC STA is a vector to give the PRC access to US dual-use research and presents a clear national security risk,” Republican lawmakers said in a letter. “The Biden administration must stop fuelling our own destruction and allow the STA to expire.”

The agreement’s protracted renewal process after decades of uncontroversial renewals highlighted the complex new issues that have come between the two sides, according to Denis Simon of the Asian Pacific Studies Institute at Duke University.

“Many of the central issues being discussed were simply not issues in 1979, such as data security and personal security,” said Simon.

“The old STA had become almost obsolete, so renewal shifted to devising a new agreement that was more up to date and reflected the realities of 2024 and not the situation 40 years ago.”

On Thursday, the US deputy assistant secretary for science and space at the State Department co-chaired a meeting with Japan’s ambassador for science and technology cooperation.

They reviewed progress on cooperation in areas such as quantum, fusion and artificial intelligence and strengthened collaboration in emerging technologies including high-performance computing, according to the State Department.

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How Belarus is seeking to balance Russia ties with stronger China relations

https://www.scmp.com/opinion/world-opinion/article/3276203/how-belarus-seeking-balance-russia-ties-stronger-china-relations?utm_source=rss_feed

Belarus, one of Russia’s few allies in Europe, seeks to strengthen its economic, political and military ties with China. Isolated from the West and heavily dependent on Beijing, Moscow is in no position to prevent a potential Chinese encroachment into the Kremlin’s zone of influence. But does China really have significant geopolitical ambitions in Belarus?

In 2016, while Belarusian President Alexander Lukashenko still had relatively good relations with the West, Minsk and Beijing established a comprehensive strategic partnership. In 2017, the Belarusian government offered 22 state-owned enterprises for privatisation exclusively to Chinese businesses, but none have attracted any interest.

That year, the volume of Chinese investment in Belarus was comparatively small. However, by 2019, China was among top three international lenders for Belarus, although Beijing’s economic presence in the former Soviet republic remained relatively low.

A lack of structural reforms, as well as a Soviet-style economy, seemed to prevent greater influx of Chinese investment. However, that has not discouraged Lukashenko from seeking to strengthen economic relations with Beijing. Following the controversial presidential election in 2020, Lukashenko turned to China for loans, investment, and military and political support.

As a result of Premier Li Qiang’s recent visit to Belarus, Beijing and Minsk agreed to expand security and economic relations. According to Li, Beijing stands ready to work with Belarus to “push for the high-level development of their all-weather comprehensive strategic partnership to better benefit the two peoples”.

The Chinese and Belarusian leaders also expressed support for “peaceful resolution of conflicts and constructive bilateral dialogue between countries”. Such rhetoric suggests they have the same approach regarding Russia’s invasion of Ukraine.

Belarus is nominally Russia’s ally in the Collective Security Treaty Organisation (CSTO), and it indirectly participated in the Russian invasion of Ukraine by allowing Moscow to use Belarusian territory to attack northern Ukrainian regions of Kyiv and Chernihiv in 2022. However, Lukashenko seems to have changed his stance slightly on Russia’s actions in Ukraine over the past two years.

After Ukraine launched its cross-border offensive into the Kursk region, Belarus did not take any measures to help its CSTO ally. This was despite Article 4 of the treaty stating that an act of aggression against one member state will be considered a collective act of aggression on all member states. Instead, Lukashenko urged Moscow and Kyiv to negotiate an end to their conflict, pointing out that “neither the Ukrainian people, nor the Russians, nor the Belarusians need it”.

Last year, Lukashenko supported the Chinese peace plan for Ukraine – a document stating that “dialogue and negotiation are the only viable solution to the Ukraine crisis”. His most recent peace-promoting rhetoric indicates that he still holds the same position on Ukraine as Beijing. But Belarus’ proximity to Russia and its economic dependence on its giant neighbour are crucial reasons Lukashenko cannot fully adopt China’s strategy of “pro-Russian neutrality”.

While Minsk continues to rely heavily on Moscow for political and financial support, it also seeks to balance this dependence by forging closer ties with Beijing. Belarus joined the China-led Shanghai Cooperation Organisation (SCO) last month, while on July 8 the two nations conducted joint military exercises at the Brestskiy training range next to the border with Ukraine and Poland. This has led to growing fears about Beijing’s reported plans to build a military base in Belarus.

Being a landlocked nation far from China, it is questionable how appealing Belarus would be to Chinese military strategists. However, as part of the military cooperation between the two countries, Chinese and Belarusian companies have jointly developed the Polonez multiple launch rocket system. The last thing the West wants is this weapon ending up in Russian hands.

But since the Polonez uses Chinese-made missiles, its potential transfer from Belarus to Russia would require Chinese consent. So far, Beijing and Minsk have been careful not to cross the West’s red lines in their military cooperation, both with each other and with Russia. That is why their ties will largely remain within the economic sphere for the foreseeable future.

From the Chinese perspective, Belarus is not only an important partner but a crucial hub for its Belt and Road Initiative, as well as for freight trains between China and Europe. Therefore, it is no surprise that the two countries agreed to strengthen cooperation on China-Europe freight trains by promoting infrastructure connectivity and jointly ensuring the safety of the China-Europe train transport corridor.

For Belarus, on the other hand, China and Russia are key markets for its export-oriented economy. As one of Belarus’ largest trading partners, China has so far financed at least 35 joint projects in the former Soviet republic. But Lukashenko now wants to see more Chinese technology in Belarus even though his country remains firmly in Russia’s geopolitical orbit.

The Belarusian leader probably believes he can maintain strong relationships with both China and Russia without having to reduce cooperation with either. This is underscored by Belarus’s decision to join the SCO, which reflects Minsk’s intention to strengthen ties with China while continuing to nurture its partnership and military alliance with the Kremlin.

In other words, Lukashenko looks as if he’s trying to revive his “multi-vector” foreign policy, a concept he had to abandon in 2020 after Moscow effectively helped him stay in power following mass protests that threatened his rule. This time, he may well view China as a counterbalance to Minsk’s strong dependence on Russia.

Chinese retailers, once sweet on Mexico, say locals are turning sour. What changed?

https://www.scmp.com/economy/global-economy/article/3276340/chinese-retailers-once-sweet-mexico-say-locals-are-turning-sour-what-changed?utm_source=rss_feed

In the heart of Mexico City, only a few blocks from the historic centre, a 16-storey shopping complex sat dormant. Paper signs reading “CLAUSURADO” – “closed” – had been plastered over the main entrance for more than a month.

“We are almost ‘drinking the northwest wind’,” said Elisa Guan, an apparel wholesaler with a store in the centre, using a Chinese idiom meaning “nothing to eat”. She had been out of business since July 11 – the day local authorities ordered the facility’s closure.

Among its tenants, the market is called “Yiwu Mall” – a reference to the city in eastern China that is home to the world’s largest small-commodities market. It is one of several wholesale centres operated by Chinese nationals that have popped up in the neighbourhood over the past four years, creating a quasi-Chinatown and a reliable source of cheap products like keychains and water bottles.

But the mall has been caught in a vortex of controversy since June, when Mexican newspaper Reforma released a series of investigative reports on the complex, emblazoned with provocative headlines like “Chinese Invasion” and “Informal Empire”. The periodical accused store owners of tax evasion, ignoring safety hazards and squeezing out local businesses.

The allegations, and the mall’s subsequent closure, have brought into sharp relief the resentment some in the local population are feeling towards the Chinese emigrant community.

The Latin American country has become a prime destination for Chinese companies, as its border with the United States provides a workaround for trade restrictions aimed at products of Chinese origin. That inflow has, in turn, created a larger constituency – among locals as well as emigrants – for inexpensive consumer goods like those provided by merchants at the mall.

“Many Chinese have come to Mexico City in the past two or three years, flooding into the city centre to open stores,” said Simon Zhao, vice-president of the China Business Association in Mexico. “To be honest, some people tend to exploit loopholes in local rules when doing business.”

But some local media coverage is not really fair, said Zhao – also CEO and founder of Solarever, a solar panel and electric vehicle manufacturer – as it directs blame to the entire Chinese community and fans negative sentiment.

“I’m worried that Mexicans will be misled. They used to be really friendly towards China and Chinese people,” he said.

Along with others in the local Chinese community, Zhao has been preparing several charitable donations – sending projectors and iPads to rural schools and automated defibrillators to public areas like airports – in part to restore that amicable relationship.

“Chinese should reflect on ourselves and be aware of our own problems,” Zhao said. “We cannot only think about making money. It is necessary to localise while doing business in Mexico, so local people share the benefits.”

In a letter to the Chinese business community sent in early July, the Overseas Chinese Organisations in Mexico wrote: “We are fully aware that it is not easy for everyone to carve out a path in a foreign country, and we also understand your enthusiasm in advancing your career.

“However, we hope that everyone can pay attention to the safety and harmony of the local community while pursuing success,” said the social group for ethnic Chinese in Mexico. “Let us work together to abide by local laws and regulations, and make contributions to Mexico’s economic development and social progress.”

Despite the “timid resurgence” of hostile sentiment triggered by the Yiwu affair, little ill will has spread beyond the capital, said Eduardo Tzili-Apango, professor of China studies at Mexico’s Metropolitan Autonomous University.

Though some comments on articles related to the closure of the mall expressed animosity, he said others included complaints about losing a place to buy affordable products, as well as criticism against the Mexican government for approving a retail development for a building damaged by an earthquake.

“I cannot say that the resentment against Chinese will grow further in Mexico, as Yiwu Mall was well accepted – or at least tolerated – in Mexican society,” Tzili-Apango said.

Guan, the apparel wholesaler, said while there had been negative news stories about Chinese people, she thought it was an “exaggeration” to take that to mean there is “anti-Chinese sentiment”.

Monterrey, a major industrial city on the US border, has become a landing pad for Chinese companies as they attempt to navigate the “nearshoring” strategy of Mexico’s northern neighbour. Factory managers there said the negative news has yet to impact their operations.

But some in the community are wary of what role the US may play in the formation of anti-Chinese sentiment in the Latin American country, as closer economic engagement with Chinese firms in recent years has put Washington on high alert.

In April, Mexico announced tariff increases on 544 items imported from countries without a free-trade agreement – of which China is one – and last month, the US and Mexico closed a loophole in the steel and aluminium trade which increased duties on supplies from China routed across the southern border.

For Hugo Wong, it is easy to empathise with the community’s concerns. His ancestors – who migrated from Guangdong province to Mexico in the late 19th century and became successful businessmen – survived a massacre of over 300 Chinese in the city of Torreon in 1911 and the deportation and illegal expulsion of Chinese-Mexican families in the 1930s.

“I am worried the same thing that happened 100 years ago will happen again,” said Wong, an investor and author of the book America’s Lost Chinese.

Last summer, in the Mexican state of Hidalgo, local merchants staged a protest against their Chinese competitors, urging city and state governments to prohibit new stores.

Mexico is far from the only country to experience such a backlash. Twenty years ago in Elche, Spain, a Chinese shoe warehouse was set ablaze by locals, who claimed discontent over what they saw as a flood of cheap products that had priced out local businesses.

“[The Chinese] don’t think about what it does to the local people. But you can’t blame them,” Wong said. “China is probably the most competitive place in the world. So when Chinese go abroad, they bring a very competitive mindset. They take a lot of risks to go to new countries. They just want to be successful.”

In keeping with that outlook, Chinese businesspeople have adjusted the way they establish themselves overseas: as goods of Chinese provenance encounter more trade barriers, companies are shifting stages of production or entire lines to foreign countries rather than simply exporting what they make.

With this process comes new challenges, and a greater need for cross-cultural sensitivity. As Chinese firms move abroad, bringing more intensive capital investments, closer relationships are required with the local government and community.

The key to successful globalisation for any company is a high degree of localisation, which includes respect for the locals and their culture, said Dominique Turpin, European president and professor of marketing at the China Europe International Business School in Shanghai.

“If you have a big cake in front of you, don’t eat all of it,” Turpin said. “Leave a piece to the locals.”

For the hundreds of tenants who have awaited the reopening of Yiwu Mall for more than a month, a more literal, celebratory cake may be in order. In a WeChat post on Tuesday night, Lin Yun – general manager of the company which owns the shopping centre – announced the complex would return to business on Wednesday.

The announcement came not a moment too soon – some tenants and their workers had already run out of patience, taking to the streets in late July to demand a return to work.

But even as the mall has been permitted to reopen, the unease its closure generated is likely to linger. Not far away, at three other malls Lin’s company operates, Chinese signage has already been removed from the buildings as a precaution.

“We need to keep a low profile,” Lin said in a video posted last month.

US trade chief Tai lauds Canada’s steep new tariffs on Chinese EVs and metals

https://www.scmp.com/news/china/politics/article/3276478/us-trade-chief-tai-lauds-canadas-steep-new-tariffs-chinese-evs-and-metals?utm_source=rss_feed

US Trade Representative Katherine Tai on Thursday gave a strong endorsement to Canada’s decision to impose a 100 per cent tariff on Chinese-made electric vehicles and 25 per cent on Chinese steel and aluminium as she finalises US duties planned at similar rates.

In a statement issued by her office, Tai applauded Canada’s decision to take strong action against China’s “state-directed, unfair and anticompetitive non-market policies and practices, which threaten the existence of our market-oriented industries”.

She said this was an important step to ensure that Canada’s workers and companies could compete fairly in the electric vehicle, steel and aluminium industries.

“We share Canada’s concerns over the PRC’s unfair, non-market policies and practices and its failure to uphold labour rights, enforce environmental protections, and promote fair, market-oriented competition,” Tai said, using the acronym for the People’s Republic of China.

Canada announced on Tuesday that it will impose the tariffs starting on October 1, including on EVs made in China by US-based Tesla, to counter what Prime Minister Justin Trudeau called China’s intentional, state-directed policies that have created excess production capacity in these industries.

The move comes as the US trade representative is expected to announce final implementation plans by the end of August for tariffs on US$18 billion worth of Chinese imports, including duties of 100 per cent on EVs, 50 per cent on semiconductors and solar cells, and 25 per cent on lithium-ion batteries.

Many US companies have asked for the duties to be eased, and exclusions expanded, but a US official told Reuters in Beijing that the expectation was for the Biden-Harris administration to follow through with well-communicated intentions on the tariffs.