Mistral点评

• China ‘profoundly unhelpful’ as it ignored chance to cooperate: US diplomat
• US bans Chinese steel and food-additives firms over Xinjiang human rights
• The 5 major blind spots pushing the US into conflict with China
• 5 Chinese nationals charged with covering up midnight visit to Michigan military site
• US Seeks Ban on Chinese, Russian Tech for Self-driving Vehicles
• CIA boosts online recruiting efforts in China, Iran and North Korea
• China’s tourists, wary of visa rule changes, make more bookings under the wire
• Chinese start-up Numemory claims memory chip breakthrough amid US tech sanctions
• Can China’s military jets find favour in arms markets dominated by US, Russia?
• [Sport] Alcaraz beats Sinner in dramatic China Open final
• China’s biggest self-driving tech firms pull out of US amid rising geopolitical tensions
• China evacuates citizens from Lebanon, urges security precautions for nationals in Iran
• China’s coastguard takes part in first Arctic patrol with Russia
• US election: Vance-Walz clash sees Democrat saying ‘Trump should have come to China’
• Hang Seng Index soars 6.2% as Blackrock’s ‘overweight’ call fuels frenzy for China stocks
• India gains ‘advantage’ over China as Sri Lanka’s new leader seeks to balance ties
• Made in China 2035: will it topple US hi-tech and military manufacturing in 10 years?
• In break from tradition, China receives no formal statement from US on National Day
• Japan wants ‘China to behave responsibly’, new foreign minister says
• Mainland Chinese tourists choose cheap Hong Kong eats touted online for ‘golden week’ trips
• Malaysia defies China’s patrols to expand South China Sea oil, gas drilling: report
• Be ‘bold and steady’, Beijing tells officials amid China’s race to achieve GDP growth goal
• EU to vote on Chinese electric vehicle tariffs, Tesla vs China: 7 EV reads you missed
• How Asean’s influence on China is growing
• Chinese missile boat chase at Half Moon Shoal sparks new South China Sea flashpoint fears
• The ‘Big Short’ on China became the ‘Big Squeeze’ that caught Wall Street on the back foot
• China actress warned by doctors after adding ‘height-boosting’ drugs to son’s food
• China, US agree to revive health cooperation after years-long chill
• How China’s ‘one-child generation’ got trapped in the population pyramid
• Apple may need to turn to China after Indian Tata plant fire, sources say
• Chinese Students Shift from US to Australia, Britain

China ‘profoundly unhelpful’ as it ignored chance to cooperate: US diplomat

https://www.scmp.com/news/china/article/3280859/china-profoundly-unhelpful-it-ignored-chance-cooperate-us-diplomat?utm_source=rss_feed

In November, when Yemen’s Houthi rebels started firing drones and missiles at commercial ships in the Red Sea and Gulf of Aden as the Middle East war heated up, Washington finally thought it had an issue it could cooperate closely with China on, a senior US diplomat said on Wednesday.

China has a huge volume of shipping passing through the dangerous waters, the attacks were a major threat to global stability and China was in a position to use their squadron in Djibouti as they did fighting piracy in the 1990s, said Kurt Campbell, deputy secretary at the US State Department.

“We realised that what the Chinese had tried to do – rather than joining with any kind of international naval consortium – would be to instead take actions to communicate directly with the Houthis about, ‘look, these are our ships, these aren’t our ships, target different ships,’” Campbell said.

“Now that’s just profoundly unhelpful, and suggests an approach to the global commons that we have real concerns over.”

As US President Joe Biden’s tenure winds down, Campbell – a principle architect of the administration’s Indo-Pacific strategy – took the opportunity to reflect on foreign policy victories, setbacks and frustrations, and to refute a common Chinese narrative that Washington is keen to hold back the Asian giant.

While Beijing has done a good job promoting its Belt and Road Initiative, particularly in Africa, the US has stepped up its game, Campbell said. Yet Washington often falls short in publicising its accomplishments.

Last year, China’s belt and road investments in Africa were under US$10 billion, he said, although he added that it was difficult to determine exact figures given the lack of transparency.

“But our DFC, Development Finance Corporation, in the last calendar year invested US$12 billion in the Global South, much of that in Africa,” said Campbell, who has spent his career in government, business and academia. “We’ve done a terrible job at explaining that and underscoring our commitments to critical minerals, to supply chains and the like. But the truth is, we are seeking to find new tools.”

Campbell said those tools included technology dialogues and development corridors but did not clarify whether the DFC’s total spending in Africa exceeded China’s.

He added that Western projects in Africa and other parts of the Global South differ from China’s approach, with more focus on skills training and empowering local people.

Many of China’s projects have “a host of foreign workers coming in and then leaving with very little value added”, he said in a presentation to the Carnegie Endowment for International Peace.

“In truth, some of the things that these countries are looking for, big stadiums for sports, leadership houses and things like that, that China provides, that’s not what we’re in the business of providing.”

Africa has increasingly become a battleground for Chinese and American influence. A month ago, while hosting some 50 African leaders in Beijing, Chinese President Xi Jinping pledged to ease import restrictions and extend 360 billion yuan (US$50.6 billion) in new financing over the next three years.

“Modernisation is an inalienable right of all countries, but the Western approach to it has inflicted immense sufferings on developing countries,” Xi said. “We should jointly advance modernisation that is just and equitable.”

Campbell said the US was focused “enormously” on the challenges of disinformation and false narratives, particularly in the Global South, that have been influenced by the stance Washington has taken in the Middle East.

“I would just underscore that the next administration – this has got to be front and centre – is thinking constructively, again with allies and partners, about how to step up our game in the Global South.”

Campbell said that while the hard work of the Chinese people has been the driving force for the nation’s rise over the past two decades, the US has provided some of the context. That includes helping maintain peace and stability in the Indo-Pacific, making huge investments in China, opening US markets to absorb its products and promoting a “deep respect and engagement” to build a lasting relationship with China, he said.

Beijing’s counter-narrative started in the 2000s but has been amplified by Xi, Campbell said: that the US is in decline, that the US seeks Chinese regime change and that it is China’s time to assert itself and move Washington off the global stage.

“What the United States has sought to do is, not to contain or constrain China,” he said. “In many respects, we are responding to a China that is more assertive, more aggressive, and then are challenging elements of this operating system – peaceful resolution of disputes, navigational confidence, Law of the Sea, you know, rule of law contracts.”

Analysts said the script was far from written on their complex relationship.

“China and the Chinese people generally acknowledge that being a part of the international system set up and led by the US brought China enormous benefits,” said Rorry Daniels, managing director of the Asia Society Policy Institute. “The question moving forward is how to make those benefits equitable, and both the US and China have mixed feelings about how to reform the system as they are simultaneously competing for influence.”

Campbell said evidence of China’s growing assertiveness could be judged by how quickly allies and partners have joined Washington – out of concern for Beijing’s growing aggression and its strengthening of ties with North Korea and with Russia after its invasion of Ukraine.

“Despite the frustrations and difficulties associated with American leadership,” he said, “almost every country that we partner with wants to see more of it, not less of it.”

US bans Chinese steel and food-additives firms over Xinjiang human rights

https://www.scmp.com/news/china/article/3280860/us-bans-chinese-steel-and-food-additives-firms-over-xinjiang-human-rights?utm_source=rss_feed

The US is banning imports from two more Chinese companies over alleged human-rights abuses involving Uygurs, it was revealed on Wednesday, the latest development in America’s drive to eliminate goods made with forced labour from its supply chain.

The companies joining the Department of Homeland Security’s Uygur Forced Labour Prevention Act (UFLPA) entity list are Baowu Group Xinjiang Bayi Iron and Steel, a subsidiary of the world’s largest steelmaker, and Changzhou Guanghui Food Ingredients, a food-additives manufacturer. The restrictions take effect on October 3.

Wednesday’s announcement marks the first time that steel and aspartame companies have been added to the list, which also includes entities in the agriculture, apparel, batteries, chemicals, electronics, household appliances, plastics and polysilicon sectors.

Now the total number of sanctioned mainland China-based companies stands at 75, according to the department.

“No sector is off-limits,” said Robert Silvers, an undersecretary for policy at Homeland Security.

“We will continue to identify entities across industries and hold accountable those who seek to profit from exploitation and abuse.”

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

The UFLPA, signed into law in 2021, created a “rebuttable presumption” that any materials produced in the Xinjiang Uygur autonomous region are at risk of being tainted with forced labour.

The “guilty-until-proven-innocent” principle effectively inverted US customs laws related to forced labour.

Companies can appeal if they provide “clear and convincing” evidence to customs authorities that their supply chains are free of forced labour.

Homeland Security on Wednesday said state-owned Xinjiang Bayi has “repeatedly participated” in the transfer and receipt of ethnic minorities from Xinjiang, such as Uygurs and Kyrgyz, by way of Xinjiang government labour programmes.

As for Changzhou Guanghui, the department said the Jiangsu-based company sourced aspartame and aspartame inputs from Xinjiang.

The international community in recent years has increasingly voiced concern about the situation in Xinjiang, where the Chinese government has been accused of committing genocide and crimes against humanity targeting Uygurs and other religious and ethnic minority groups.

The alleged crimes include arbitrary detention, destruction of religious sites, forced labour, rape, sterilisation and torture.

Beijing has repeatedly and vehemently denied claims of forced labour, instead portraying its government work schemes as poverty-alleviation programmes.

Since the UFLPA took effect in 2022, US Customs and Border Protection has inspected 9,791 shipments totalling US$3.56 billion, denying entry to 3,976 of them.

Still, US House lawmakers last week voiced concern that the act has been insufficiently enforced and called for stronger implementation.

The 5 major blind spots pushing the US into conflict with China

https://www.scmp.com/opinion/china-opinion/article/3280639/5-major-blind-spots-pushing-us-conflict-china?utm_source=rss_feed

With the United States House of Representatives backing a US$1.6 billion anti-China bill, tense bilateral relations are set to get a lot worse. There is entrenched bipartisan consensus that a rising China represents an existential threat to America’s best interests, supported by increasingly negative American public opinion towards China.

While agreeing on guard rails against war between two major nuclear powers, neither Democratic nominee Kamala Harris nor Republican nominee Donald Trump wants to appear weak on China. Any difference between their China policies is more nuance than substance.

Exceptionalism or hegemonic hubris aside, what is driving America’s nationwide hostility towards China are some deep-seated blind spots and misplaced narratives. They need to be debunked if US-China relations are not to derail into kinetic conflict.

First, the rhetoric of “democracy vs autocracy” implies that the Communist Party of China is illegitimate absent Western-style elections. Apart from the fact that US-style democracy often fails to deliver better outcomes for the people and the country concerned, elections are only a process. What counts is the outcome for the people in terms of better lives and standards of living.

According to research from Harvard Kennedy School’s Ash Centre Report in 2020 and the Edelman Trust Barometer in 2024, the Communist Party’s governance is ahead of many others in terms of trust and support by their peoples, multiple ranks above Western democracies including the United States.

Partnering with Gallup, a Washington-based multinational advisory, the World Happiness Report 2024 by Oxford University’s Wellbeing Research Centre ranks China sixth in terms of gains in people’s happiness from 2006-2023, outperforming many countries, including the US, which is ranked 120th by the report.

The “democracy against autocracy” narrative is therefore flawed at best.

Second, the United States’ competition with China is natural and would indeed be beneficial for progress if conducted in the Olympic spirit. There is, however, a tendency to lash out on all fronts, driven by a zero-sum “win or lose” mindset, even at the cost of self-harm.

Indiscriminate sky-high tariffs and massive shifts of global supply chains come to mind. This is likely to be a fool’s errand as China has become too deeply embedded in the world economy as the largest trader and manufacturer. Even if they aren’t made or provided in China, numerous products and services are connected to the country in terms of materials, minerals, parts, components and logistics. Seven of the world’s top eleven container ports are located in China, including one in Hong Kong.

What needs to be reconsidered is the obsession with being No 1 in everything. The US is far ahead in global military reach, number of Nobel Laureates, financial sophistication, multiple natural resources and the dominance of its currency, the mighty US dollar, but that doesn’t mean that it also needs to dominate the field of consumer goods.

In a borderless digital age, zero-sum thinking doesn’t work with an increasingly interconnected and interdependent world. The globe is big enough for both an Albert Einstein and a William Shakespeare on either side.

Third, an American foreign policy favourite is to corral US allies to contain China, particularly in the Asia-Pacific. But the age of rigid blocs of allies is long gone. In an increasingly multipolar world, many countries do not want to take sides. Just ask any member of the Association of Southeast Asian Nations. They all want to be friends with both the US and China. So US rhetoric needs to be put in better perspective.

Fourth, there is a growing belief in Washington that Beijing may launch a military assault on Taiwan by 2027. This has resulted in a series of US military countermeasures and set off a security spiral on both sides of the Taiwan Strait.

While unification by 2049 is a national priority, Beijing has released three successive white papers, the last coinciding with US Representative Nancy Pelosi’s provocative Taiwan visit, setting unwavering faith in peaceful unification.

Most people in Taiwan do not favour unification or de jure independence, preferring the status quo, extremist political rhetoric notwithstanding.

Moreover, people-to- people visits and cooperation are showing great momentum on their own. Performers from Taiwan have appeared on television in mainland China, educational exchanges are taking place and young people from Taiwan are also pursuing their business or career dreams in the far larger mainland market.

A more liberal unification offer has not been ruled out. While it’s too soon to tell, peaceful unification is by no means a pipe dream. In the spirit of Sun Tzu’s , winning the people of Taiwan over without fighting remains Beijing’s stated priority.

Fifth, there is a popular misconception that China’s “state capitalism” leaves very little elbow room for the private sector. However, according to China’s State Council, the private sector has quadrupled in the last 10 years, contributing over 50 per cent of tax revenue, 60 per cent of gross domestic product, 70 per cent of technological innovations, 80 per cent of urban employment and 90 per cent of market entities.

Setting the scene for the next five-year plan (2026-2030), the recent third plenum vows more support for the private sector. The idea of China as a monolithic state-controlled economy is much misplaced.

Whether Harris or Trump wins the White House, it would do a new US administration good to clear the fog of misconceptions, especially if US-China relations are not to veer into a potentially nuclear “tragedy of great power politics”.

5 Chinese nationals charged with covering up midnight visit to Michigan military site

https://www.scmp.com/news/world/united-states-canada/article/3280863/5-chinese-nationals-charged-covering-midnight-visit-michigan-military-site?utm_source=rss_feed

US authorities charged five Chinese nationals with lying and trying to cover their tracks, more than a year after they were confronted in the dark near a remote Michigan military site where thousands of people had gathered for summer drills.

The five, who were University of Michigan students at the time, were not charged for what happened at Camp Grayling in August 2023. Rather they are accused of misleading investigators about the trip and conspiring to clear their phones of photos, according to a criminal complaint filed in federal court.

The FBI noted in the Tuesday court filing that there have been instances of college students from China taking photos of vital defence sites in the United States.

There was nothing in the file revealing the whereabouts of the five men.

“The defendants are not in custody. Should they come into contact with US authorities, they will be arrested and face these charges,” Gina Balaya, a spokeswoman for the US Attorney’s Office in Detroit, said on Wednesday.

In summer 2023, the five were confronted after midnight near a lake by a sergeant major with the Utah National Guard. One said, “We are media,” before they collected their belongings and agreed to leave the area, the FBI said.

The FBI learned that the men had booked a room at a nearby motel a week before they were spotted outside Camp Grayling, 322km (200 miles) north of Detroit.

Four months later, one of the men was interviewed by border officers at the Detroit airport before travelling to South Korea and China. He told investigators that he and others had taken a trip to northern Michigan “to see shooting stars”, the FBI said.

A check of his external hard drive revealed two images of military vehicles taken on the same night of the encounter with the National Guard officer, the FBI said.

The other four men were interviewed last March after arriving in Chicago on a flight from Iceland. They acknowledged being in northern Michigan in August 2023, but they said it was to see a meteor shower, the FBI said.

They mentioned the National Guard officer but referred to him only as “the soldier”, a camper or “nice guy”, according to the criminal complaint.

The men last December communicated on WeChat about clearing photos from their cameras and phones, investigators said.

The FBI said all five men graduated last spring from the University of Michigan. They were part of a joint programme between the university and the Shanghai Jiao Tong University in Shanghai, China.

US Seeks Ban on Chinese, Russian Tech for Self-driving Vehicles

https://learningenglish.voanews.com/a/us-seeks-ban-on-chinese-russian-tech-for-self-driving-vehicles/7805225.html

The administration of U.S. President Joe Biden has proposed a ban on the sale of self-driving vehicles in the U.S. using Chinese or Russian technologies.

The proposal was recently announced by the U.S. Commerce Department. The ban would bar sales of internet-connected and self-driving vehicles equipped with software or hardware provided by China or Russia.

The purpose of the measure is to protect national security and American drivers, the Commerce Department said. A press release called the connectivity and autonomous vehicle technologies “critical systems” that need strong protection.

The department noted that providing access to such systems through software or hardware could lead some foreign governments to “collect our most sensitive data” and seek to control vehicles on American roads.

U.S. Commerce Secretary Gina Raimondo spoke to reporters from The Associated Press (AP) and other media organizations last week about the proposal. She described a possible extreme situation in which a foreign enemy could shut down or take control of multiple vehicles operating in the U.S. Such an incident could cause major crashes and huge traffic problems, Raimondo said.

“This is not about trade or economic advantage. This is a strictly national security action,” Raimondo said. She added, “The good news is right now, we don’t have many Chinese or Russian cars on our road."

Raimondo said leaders in Europe and other parts of the world had raised security concerns about the large number of Chinese vehicles already on the roads in their areas. Imported Chinese-owned vehicle models captured 7.6 percent of Europe’s electric car market in 2023, the European Automobile Manufacturers’ Association said. That was up from 2.9 percent in 2020.

Janka Oertel is director of the Asia program at the European Council on Foreign Relations. She wrote on the council’s website that the security concerns in Europe included “matters of national security, cybersecurity and individual privacy.”

Raimondo noted the U.S. cannot wait until the nation’s roads are already populated with vehicles containing Chinese or Russian technology. “We're issuing a proposed rule to address these new national security threats before suppliers, automakers and car components linked to China or Russia become commonplace and widespread in the U.S.,” she said.

Commerce Department officials said the proposed ban on software would take effect with 2027 vehicle model years. A ban on hardware would take effect beginning with 2030 models. The officials said the different dates were set because software is much easier to change than physical hardware parts.

The software and hardware bans would cover vehicles equipped to communicate through Bluetooth, cellular, satellite or Wi-Fi systems. It would also ban the sale or import of software made in Russia or China that permits self-driving vehicles to operate without a driver in control. The ban would also cover vehicles made in the U.S. using Chinese and Russian technology.

The proposed rule would be for all vehicles except those not used on public roads, such as vehicles used for agricultural or mining purposes.

American automakers have said they share the government's national security goal. But currently, they say the need for such a measure is low. That is because there is very little software and hardware technology coming to American vehicles from China and Russia.

But the industry group Alliance for Automotive Innovation said the new rules will force some automakers to immediately search for new parts suppliers. “You can't just flip a switch and change the world's most complex supply chain overnight,” said the organization’s chief, John Bozzella.

Bozzella noted the timetables to begin the ban should be long enough for some automakers to make changes, “but may be too short for others.”

Administration officials told the AP that Commerce Department representatives met with officials from all major auto companies around the world while preparing the proposals. The officials also met with different industry organizations in an effort to understand the current supply chain issues.

The Commerce Department is currently taking public comments on the ban. This process generally lasts for 30 days after a rule is published. Agency officials said the finalization of the measure should happen by the end of the Biden Administration.

I’m Bryan Lynn.

 

The Associated Press, Reuters and Agence France-Presse reported on this story. Bryan Lynn adapted the reports for VOA Learning English.

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Words in This Story

autonomous – v. acting separately from other people or things

advantage – n. a condition that provides a greater chance of success

access – n. the right or chance to use of see something

strict – v. strong or complete

advantage – n. something good about a situation that helps you

component – adj. one of the parts of something, especially a piece of electronic equipment

cellular – n. relating to cellular phones

flip a switch – phr idiom. to completely change something or make something happen quickly and easily

supply chain – n. the system of people and things that gets a product from its place of manufacture to the person who buys it

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CIA boosts online recruiting efforts in China, Iran and North Korea

https://www.scmp.com/news/china/article/3280854/cia-boosts-online-recruiting-efforts-china-iran-and-north-korea?utm_source=rss_feed

The CIA on Wednesday launched a new drive to recruit informants in China, Iran and North Korea, adding to what it says has been a successful effort to enlist Russians.

The premier US spy agency posted instructions in Mandarin, Farsi and Korean on its accounts on X, Facebook, Instagram, Telegram, LinkedIn and the Dark Web on how to contact it securely, a CIA spokesperson said in a statement.

“Our efforts on this front have been successful in Russia, and we want to make sure individuals in other authoritarian regimes know that we’re open for business,” the spokesperson said, adding that the CIA was adapting to increased state repression and global surveillance.

A Mandarin-language video posted to YouTube featuring only written instructions advised individuals to contact the CIA via its official website using trusted encrypted Virtual Private Networks (VPNs) or the TOR network.

“Your safety and wellbeing is our foremost consideration,” it said.

It asked for individuals’ names, locations, and contact details not associated with their real identities, along with information that could be of interest to the CIA, cautioning that responses were not guaranteed and could take time.

The CIA’s thirst for intelligence has grown as China expands cooperation with Russia and Iran and flexes its regional military muscle.

Russia, China, Iran and North Korea are known within the US intelligence community as “hard targets” – countries whose governments are difficult to penetrate.

The US also is grappling with Iran’s conflict with Israel, its nuclear programme, its growing links with Russia and its support for militant proxies.

North Korea’s nuclear weapons programme is another US intelligence target, along with what US officials say are Pyongyang’s arms supplies to Moscow for the war against Ukraine, an allegation that Moscow and Pyongyang deny.

The Russian and Chinese embassies in Washington and Iran’s UN mission did not immediately respond to requests for comment.

The CIA began recruiting Russians in 2022 by posting Russian language texts on its social media accounts on how to contact the agency securely, followed by videos in 2023.

China’s tourists, wary of visa rule changes, make more bookings under the wire

https://www.scmp.com/economy/china-economy/article/3280800/chinas-tourists-wary-visa-rule-changes-make-more-bookings-under-wire?utm_source=rss_feed

A “striking” majority of Chinese travellers are booking trips within a month of departure – often even later – reflecting fears of sudden changes in immigration rules that could derail earlier reservations, an industry organisation said.

In a survey of 1,500 people by China Trading Desk, 73 per cent said they arrange their itineraries relatively late despite the likelihood of higher prices, according to founder and CEO Subramania Bhatt, with some plans only taking shape one week or less ahead of time.

“They need to mind travel rule changes,” he said.

The last-minute timing reflects sustained skittishness about shifts in immigration rules outside mainland China since the pandemic, Bhatt said, with the percentage of late bookers up from the 65 per cent reported in early 2023.

Trip planning times averaged 10 to 12 weeks before Covid-19 hit, Bhatt said. The pandemic and unpredictable geopolitical changes have sparked numerous alterations to visa rules, with some making travel easier and some complicating matters.

Popular destinations Singapore and Thailand, for example, began allowing Chinese visitors to enter visa-free starting in the first quarter this year – reciprocating a move from Chinese authorities to drum up tourism after the lifting of pandemic restrictions last year.

Washington, however, tightened visa restrictions in May on Chinese officials who might travel to the US and limited visa stay periods for members of the country’s Communist Party in December 2020. Visa delays and insufficient flight capacity were cited as holding back a full recovery in outbound travel by the CEO of Trip.com Group, the country’s largest online travel agency.

Chinese households took 101 million cross-border trips last year, 60 per cent of the figure from 2019. The China Tourism Academy expects 130 million outbound trips this year.

Fears over safety in regions like Southeast Asia and North America, Bhatt added, can also motivate would-be travellers to keep their plans in flux until a later hour than was previously typical.

Chinese travellers are aware prices tend to rise for late bookings, Bhatt said. “They’ve just given up and said ‘OK, this is what the price is.’”

A summary of the survey results said the trend “underscores a shift towards spontaneity and a preference for last-minute planning, reflecting an underlying uncertainty in travel decisions.”

Despite the uncertainty, the wave of late bookings allows hotels and airlines – several of which are clients of China Trading Desk – to schedule their promotions on shorter schedules before peak periods such as this week’s National Day break, Bhatt said.

The survey also found that first-time travel declined 24.4 per cent in the third quarter compared to the previous one, with travellers preferring “familiar destinations rather than uncharted territory”.

But more than 80 per cent of travellers prefer “longer” stays lasting five to 15 days, the summary document said, “reflecting a desire for more in-depth and extended travel experiences”. This gives destinations and brands a chance to retool their offerings for “prolonged, experience-rich journeys”.

Independent travel is also on the rise, the survey found, as tourists seek cultural, culinary and “luxury” experiences that organised groups are less likely to offer, Bhatt said.

Four in five bookings in China for offshore trips are made separate from tour groups, the China-based travel platform Fliggy said in a summer travel report.

As evidence of that trend, Fliggy said, the transaction volume for international cruises increased by more than 20 times over July and August compared to the same period in 2023, and the volume of car rentals expanded five times.

Egypt, France, Russia, Serbia and Turkey are popular destinations for those travellers, the platform said, with bookings for those countries doubling year-on-year from January through August.

Chinese start-up Numemory claims memory chip breakthrough amid US tech sanctions

https://www.scmp.com/tech/tech-war/article/3280828/chinese-start-numemory-claims-memory-chip-breakthrough-amid-us-tech-sanctions?utm_source=rss_feed

Chinese semiconductor start-up Numemory has launched what it touts as the largest-capacity memory chip in its category designed and produced on the mainland, claiming that it is a breakthrough that bolsters the country’s technology self-sufficiency efforts amid stifling US government sanctions.

Numemory, formally known as Xincun Technology (Wuhan) Co, recently introduced to the domestic market its 64-gigabyte NM101, a type of storage-class memory (SCM) chip that is “expected to break the long-term monopoly of international giants in this field”, according to a report on Wednesday by the government-run Hubei Daily newspaper, without providing details.

Similar products in the market only offer megabyte-range capacity, according to the report, which pointed out the chip’s potential to “significantly reduce the country’s reliance on foreign memory technologies”.

SCM is a memory and storage technology that combines features found in both dynamic random-access memory (DRAM) and traditional NAND flash storage found in smartphones and other consumer electronics devices. Sometimes known as Persistent Memory, SCM offers fast non-volatile memory to processors used in servers and storage systems in data centres.

According to the newspaper report, hard drives equipped with an SCM chip take only a second to store a 10GB high-definition film.

Numemory – founded in July 2022 in Wuhan, capital of central Hubei province – said solid-state drives built with SCM technology can offer data centres and cloud computing services providers a storage solution with large capacity, high density, high bandwidth and low latency.

The high-profile domestic release of the NM101 shows how mainland memory chip companies are continuing to push advances in technology, despite US government sanctions that have stifled China’s semiconductor industry development.

According to a blog post it published on Tuesday, Numemory said the NM101 is the result of years of “independent and autonomous research and development”.

3D XPoint, developed jointly by Intel and Micron Technology, was a notable SCM technology, but it was discontinued in 2022.

Chinese flash memory giant Yangtze Memory Technologies Corp (YMTC) recently made a leap in technology in terms of chip design architecture, called Xtacking4.0, on the back of its ties with domestic suppliers of chip-manufacturing tools, according to a teardown report of Canadian research firm TechInsights.

YMTC’s 512GB triple-level cell memory chip that adopted the new architecture was found inside a solid-state drive of ZhiTai TiPlus, a consumer brand of the Chinese firm, according to the TechInsights report.

The chip maker has said it was seeing a surge in demand for its flash memory products, particularly from local enterprises working on government and military-related projects. Last year, YMTC was credited by TechInsights for manufacturing the “world’s most advanced” 3D NAND memory chip.

Meanwhile, China’s Ministry of Industry and Information Technology last month highlighted two domestically made chip-making lithography machines that it said had achieved significant advances. Analysts, however, have indicated that those machines are still not capable of making advanced chips.

Can China’s military jets find favour in arms markets dominated by US, Russia?

https://www.scmp.com/news/china/diplomacy/article/3280789/can-chinas-military-jets-find-favour-arms-markets-dominated-us-russia?utm_source=rss_feed

The delivery of JF-17 fighter jets to Azerbaijan makes the former Soviet republic the fourth country to operate the Chinese-Pakistani military aircraft and represents China’s growing inroads into markets dominated by the US and Russia, analysts said.

Pakistan’s military announced last week that it delivered the first batch of JF-17 Block III fighters – part of a US$1.6 billion deal agreed in February that includes aircraft, training and ammunition – during Azerbaijan’s international defence exhibition in Baku.

According to the announcement, Azerbaijani President Ilham Aliyev said Pakistan’s support “would go a long way” in consolidating the existing military cooperation between the two countries.

The 4.5-generation multirole combat aircraft was co-developed by the Pakistan Aeronautical Complex and China’s Chengdu Aerospace Corporation and has already been taken up by Myanmar, Nigeria and Iraq.

The Pakistani military said the JF-17 fighter jets were capable of a “wide array of combat missions” and provided “contemporary air power … options” to strengthen Azerbaijan’s “national security paradigm”.

Pakistan, which accounts for around 60 per cent of China’s arms exports, has 161 JF-17 units in its air force and around 20 J-10C units – the Chinese-made 4.5-generation warplanes that have been compared to the American F-16.

Justin Bronk, senior research fellow for air power and technology at the Royal United Services Institute in London, observed that Azerbaijan had chosen not to opt for a modernised derivative of the MiG-29 or Su-30 family.

Baku has traditionally been a customer of the Russian defence industry and has 14 MiG-29 fighters in its air force.

Azerbaijan’s decision to instead order the Chinese JF-17 was “certainly indicative of the decline of the Russian fighter aircraft industry compared to China’s over the past 10 years”, Bronk said.

“Even before the impact of sanctions imposed by the West following its invasion of Ukraine, Sukhoi and especially Mikoyan products were steadily losing competitiveness with the latest Chinese fighters. The sanctions are merely speeding up a pre-existing process.”

Bronk noted that the JF-17 “has access to a variety of modern air-to-air and air-to-ground weapons, and a modern cockpit interface. In most other regards it is an unremarkable but functional light fighter design”.

“The J-10C is a different class of aircraft, which in its latest variants is directly comparable to the latest F-16 and Gripen variants, and at a lower price point,” Bronk said.

“However, it is still not intended or able to compete directly with more expensive heavy fighters such as the Typhoon, Rafale, F-15EX, Su-35 or J-16 in terms of range, payload and performance with mixed combat loads.”

Kostas Tigkos, head of mission systems and intelligence at global military intelligence company Janes, said Azerbaijan had difficulty getting access to Western fighter aircraft designs such as France’s Rafale, the United States’ F-16, and Sweden’s Gripen.

“[Azerbaijan also has a] growing strategic relationship with China [and] a traditionally strong strategic relationship with Pakistan,” he said.

“Since the aircraft is produced in Pakistan with components from China, as well as potential for Turkish weapons or other electronics, it’s a more secure supply chain from friendly nations and unlikely to be disrupted by any … Western arms embargo.”

According to Tigkos, China is “well positioned” to capitalise on its growing technological capabilities and compete with the US and other Nato countries as well as Russia in the combat aircraft market.

“However, they are more likely to displace Russian competitors [or] designs in certain countries that can’t access the latest Western designs,” he said.

Before the war in Ukraine, Russia was the second-largest arms exporter in the world. International sanctions on the Russian defence industry have sent many of its customers to seek alternatives.

Meanwhile, China has been trying to build overseas sales of its 4.5-generation fighter jets, with Chinese arms contractors especially looking to the Middle East, in direct competition with their Western counterparts.

Egypt is understood to have placed its first order in August for China’s J-10C 4.5-generation jets, although there has been no official confirmation of the contract or its details from Cairo or Beijing.

Because of Washington’s restrictions on weapons sales over alleged human rights violations, Egypt has been struggling to replace its ageing fleet of US-made F-16 fighters, first introduced in the 1980s.

At the inaugural Egypt International Airshow in September, China showcased the J-10 for the first time in Africa.

Reports also emerged this year that the United Arab Emirates was considering buying China’s fifth-generation J-20 stealth fighter, after a senior UAE military official visited Beijing in April.

Abu Dhabi agreed to buy 50 F-35s – the US stealth warplane – during Donald Trump’s presidency, in return for establishing diplomatic ties with Israel. The US$23.4 billion arms deal has been deadlocked since President Joe Biden came to power in 2021.

The US has concerns over growing technological ties between China and the United Arab Emirates, while Abu Dhabi has cited “technical requirements, sovereign operational restrictions and cost-benefit analysis” for its reassessment of the deal.

With both US and Russian options at a stalemate for many arms buyers, France’s Rafale multirole fighter jet has become one of the largest competitors to the Chinese-made warplanes.

Egypt and the UAE already operate Rafale jets, alongside their ageing US fighters, and last month Serbia – a Russian ally and the sole European operator of a Chinese weapons system – agreed to replace its MiG-29 fleet with 12 Rafale aircraft worth €2.7 billion (US$3 billion).

Richard Aboulafia, from aerospace and defence management consultancy AeroDynamic Advisory, observed that Azerbaijan had “never been a fighter market” and owned only a “handful of leftover fighters from the Soviet days”.

“To me, that says these [JF-17] aircraft are being offered with very attractive financing, including very low price tags and seller financing,” he said.

Aboulafia said it would be “far more interesting” if Egypt buys J-10Cs, as it would be China’s “first breakthrough fighter sale” after being “ignored by everyone” other than Pakistan or “completely marginal markets”.

According to Aboulafia, one “complication” is that the Middle Eastern fighter market is “a bit quiet right now”.

“Most of the upsurge in demand has been in the Far East and in Europe. China really can’t play in either of those markets,” he said.

“China’s jets look appealing, and are competitive with Western types. But the problem is that a key reason for selecting a fighter is to secure a strategic relationship with the seller.

“China’s big limitation on fighter sales therefore is a lack of countries that both have a respectable military and want a strategic relationship with [China].”

[Sport] Alcaraz beats Sinner in dramatic China Open final

https://www.bbc.com/sport/tennis/articles/ce8v6560lnro

China’s biggest self-driving tech firms pull out of US amid rising geopolitical tensions

https://www.scmp.com/tech/tech-trends/article/3280781/chinas-biggest-self-driving-tech-firms-pull-out-us-amid-rising-geopolitical-tensions?utm_source=rss_feed

China’s biggest autonomous driving tech companies, including Baidu and Didi Chuxing, have drastically scaled back road tests in the US, and in some cases have ended them altogether, according to industry reports and company sources.

The cutbacks, made over the past few years, preceded the announcement by the US Commerce Department last month that it would ban autonomous driving software from China. That means many of the Chinese players will not be affected as the regulation only applies to new models released starting from 2027.

The total distance driven by Chinese autonomous cars on public roads in California, one of the most self-driving vehicle friendly states in the US, dropped almost 74 per cent to 121,428 miles in the 12 months ending November 2023, compared with a year earlier, according to data from the state’s Department of Motor Vehicles (DMV).

That goes against the overall trend, in which DMV data shows that total autonomous mileage reached a record 9 million miles in the same period, up nearly 60 per cent year on year.

Chinese companies like Didi saw a drop of 90 per cent in self-driving test mileage in 2023, and Didi is no longer active in the autonomous-vehicle testing programme in California. QCraft, DeepRoute.ai and Inceptio, Chinese start-ups that had test driving records in 2021 and 2022, have also pulled out, DMV said in an emailed response to the Post.

For those still holding test permits, there have been sharp drops in mileage. Test vehicles from AutoX and Pony.ai, both autonomous driving start-ups founded in Silicon Valley with headquarters in China, travelled 84 per cent and 82 per cent less between December 2022 and November 2023, compared with the previous year.

Baidu, whose autonomous driving unit operates under the Apollo brand, saw its mileage decline 34.5 per cent during the period. The company, which is a leading autonomous driving player in China, still has a California permit to test cars both with and without a safety driver. Baidu’s last collision report to the DMV was in October 2023.

None of the companies immediately responded to a request for comment.

Two engineers who worked for Chinese self-driving companies in the US said that they were active in road tests in the country because it established a regulatory framework earlier, and there was a large talent pool available.

However, one said that most of the Chinese companies have cut back on their operations in the US due to growing tensions between Washington and Beijing, and because major Chinese cities have built up their road test environment in recent years.

California started its autonomous-vehicle testing programme in 2014, after 2012 state legislation allowed such operations on the road. Although companies like Baidu and Zhengzhou Yutong Bus were able to conduct one-off road tests in China as early as 2015, it was only on a small scale. Beijing and Shanghai issued their first batch of test permits to self-driving companies in December 2017 and March 2018, respectively. This year, the central Chinese city of Wuhan became the focus of attention after it allowed a fleet of around 500 Baidu robotaxis to operate on some of its busiest roads.

Amid current geopolitical tensions, Chinese autonomous driving companies that conducted research in the US were subject to scrutiny. Last year, some US lawmakers proposed a crackdown on Chinese vehicle start-ups over data privacy issues. In February, the US commerce department announced an investigation into foreign-made hardware and software in connected cars, particularly from China.

Last month, it proposed a new rule that would ban Chinese hardware and software integrated into the vehicle connectivity system, as well as its automated driving system.

China evacuates citizens from Lebanon, urges security precautions for nationals in Iran

https://www.scmp.com/news/china/diplomacy/article/3280805/china-evacuates-citizens-lebanon-urges-security-precautions-nationals-iran?utm_source=rss_feed

More than 200 Chinese citizens along with foreign family members have been evacuated from Lebanon, China’s embassy in Beirut said on Wednesday, as Israel launched a ground offensive into its northern neighbour, raising the prospect of an all-out war in the region.

“On [Tuesday], 146 Chinese citizens in Lebanon and five of their foreign family members arrived safely in Beijing,” the embassy said in a statement. Another 69 Chinese nationals and 11 of their foreign family members had been evacuated to Cyprus aboard a Chinese vessel.

“All Chinese citizens who would like to evacuate [from Lebanon] have been safely evacuated,” the statement said, adding that embassy personnel would remain.

The evacuations came hours after Israel announced what it said were “targeted ground raids” in Lebanon, a move that Tel Aviv claimed were directed at Iran-backed Hezbollah, marking another surge in the year-old Israel-Gaza war.

Two Israeli army divisions have been taking part in ground operations in southern Lebanon since Monday. There was no word on casualties.

The Israeli military described the operation as “limited, localised and targeted raids” with the goal of demolishing Hezbollah’s infrastructure in the border area.

The military has also advised people in about 50 Lebanese villages to leave their homes but not to head south.

“For your safety, you must evacuate your homes immediately. Anyone who is near Hezbollah operatives, their facilities or their weapons, puts themselves at risk,” Avichay Adraee, an Israeli defence spokesman, said in a statement on X on Tuesday, adding that any house used by Hezbollah militants is a target.

Israeli air strikes across most of Lebanon – especially the capital Beirut – have killed at least 1,000 people and displaced about one million residents, according to Lebanese authorities.

Several Hezbollah senior officials – including its leader Hassan Nasrallah – have been killed in recent Israeli strikes.

Late last month, the Chinese embassies in Tel Aviv and Beirut issued travel advisories recommending that Chinese nationals return home as soon as possible or relocate to safer areas.

China’s embassy in Tel Aviv has not yet conducted any evacuations.

In an advisory on Wednesday, China’s embassy in Tehran urged Chinese nationals in Iran to “pay close attention to the development of the situation”, and “further enhance security awareness”.

Chinese citizens in Iran should “strengthen precautionary measures, avoid going to sensitive areas and densely populated places, and ensure the safety of persons and property”, the embassy’s statement said.

On Tuesday, Iran launched around 180 missiles at Israel, according to Israel’s military – marking Tehran’s second air strike on Israel this year – with several evading Israel’s air-defence system.

A Palestinian man in the occupied West Bank was killed in the Iranian attack, Israel’s consulate in Hong Kong said.

“Iran must pay a very heavy price for its attack on Israel”, the consulate said in an email to the Post.

“Iran attacked Israel in an act of aggression and provocation even though many countries warned it not to do so. Iran did not heed the calls of the international community and attacked Israel in an unprecedented manner, endangering the stability of the Middle East,” the email said.

Israeli Prime Minister Benjamin Netanyahu said “consequences” would follow, signalling a retaliatory attack on Iran.

In response to Israel’s ground offensive in Lebanon and Iran’s air strikes on Israel, China’s foreign ministry on Wednesday reiterated its backing for Lebanon and called on the international community, “especially the influential powers”, to play a constructive role to avoid further destabilisation of the situation – a possible reference to Washington.

“China is deeply concerned about the volatile situation in the Middle East and opposes any violation of Lebanon’s sovereignty, security and territorial integrity, as well as any intensification of the conflict,” the ministry said in its statement.

The unrest in the Middle East was the result of “the failure of a Gaza ceasefire”, the statement added.

On the sidelines of the United Nations General Assembly last week, Chinese Foreign Minister Wang Yi met his Lebanese counterpart Abdallah Bou Habib and Iranian President Masoud Pezeshkian, pledging support for both countries.

Wang also delivered a strong rebuke of Israel during his speech at the UN last week, as the Israeli military bombarded Lebanon.

“We will always stand on the side of justice and our Arab brothers, including Lebanon. We pay close attention to the development of the regional situation … [and] firmly oppose indiscriminate attacks on civilians,” he said.

China’s coastguard takes part in first Arctic patrol with Russia

https://www.scmp.com/news/china/diplomacy/article/3280832/chinas-coastguard-takes-part-first-arctic-patrol-russia?utm_source=rss_feed

Chinese state media released photos and footage on Wednesday to mark the country’s first coastguard patrol in the Arctic in a joint exercise with Russia.

The ships entered the ocean during Tuesday’s National Day holiday, marking the 75th anniversary of the People’s Republic of China.

On Wednesday, Presidents Xi Jinping and Vladimir Putin also exchanged messages celebrating 75 years of China-Russia diplomatic relations.

The two countries also took part in extensive air and sea drills last month.

China’s state broadcaster CCTV said the latest exercise was the first joint coastguard exercise between the two countries and four ships had travelled to the Arctic from the north Pacific.

The joint maritime patrols will help the two countries improve coordinated law enforcement at sea and increase the operation scope of China’s coastguards, CCTV has previously said.

China’s coastguard said the operation had “significantly expanded the range of offshore operations, thoroughly tested vessels’ ability to carry out missions in unfamiliar waters, and provided strong support for actively participating in international and regional maritime governance”.

The latest patrols have been watched closely by the United States as Moscow and Beijing expand their cooperation in the Arctic.

The US coastguard said it had spotted two Russian ships and two Chinese vessels sailing northeast through the Bering Sea that separates Russia from Alaska on Saturday, about 8km (5 miles) inside Russia’s exclusive economic zone.

It is the furthest north that the US has spotted Chinese coastguard vessels.

“This recent activity demonstrates the increased interest in the Arctic by our strategic competitors,” said Rear Admiral Megan Dean, commander of the 17th Coast Guard District.

Russia and China have been working together to develop sea routes that are opening up as global warming causes the Arctic ice sheets to melt. In August, Chinese Premier Li Qiang and his Russian counterpart, Mikhail Mishustin, signed a joint communique agreeing to develop Arctic shipping routes.

Moscow is hoping to ship more oil and gas to China to counter the impact of Western sanctions, while Beijing is looking for alternative shipping routes to lessen its reliance on the Strait of Malacca in Southeast Asia.

The US has warned that growing cooperation between China and Russia in the Arctic could affect regional stability, a claim that both countries have denied.

In a released in July, the Pentagon said Russia had strengthened its military presence in the Arctic in recent years by reopening and modernising several bases and airfields abandoned after the Soviet era.

Meanwhile, China is hoping for easier access to resources and has invested heavily in polar exploration and research to establish a “Polar Silk Road”.

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US election: Vance-Walz clash sees Democrat saying ‘Trump should have come to China’

https://www.scmp.com/news/china/diplomacy/article/3280796/us-election-vance-walz-clash-sees-democrat-saying-trump-should-have-come-china?utm_source=rss_feed

The two United States vice-presidential hopefuls squared off in a relatively civil debate on Tuesday night, with observers largely more impressed with Republican J.D. Vance’s performance compared with Democrat Tim Walz.

A nationwide poll conducted by CBS News, which hosted the debate in New York, gave Vance a slight edge as 42 per cent of those questioned said the Ohio senator had won compared with 41 per cent for Walz and 17 per cent calling it a tie.

The debate, their only head-to-head in this year’s election, largely focused on domestic issues such as gun control, immigration and the economy, but China and the Middle East were among the foreign policy issues debated.

Walz, the Minnesota governor who once worked as a teacher in China and later organised trips to the country for high school children, said he had “learned a lot” during his time there and his experience was “about trying to understand the world”.

“I would make the case that Donald Trump should have come on one of those trips with us. I guarantee you he wouldn’t be praising Xi Jinping about Covid, and I guarantee you he wouldn’t start a trade war that he ends up losing.”

Walz’s links to China have come under close scrutiny since Kamala Harris named him as her running mate.

The House Committee on Oversight and Accountability launched an investigation into Walz in August, targeting what Republicans see as a crucial vulnerability.

Hours before the debate, James Comer, the Republican chairman of the committee, said the panel had received whistle-blower information about “serious concern among Department of Homeland Security personnel regarding a long-standing connection between” Walz and China.

Walz has previously said that he had been to China “dozens of times” but this week the campaign has clarified that the actual number is “close to 15”.

He also previously stated that he was in Hong Kong during the 1989 Tiananmen Square crackdown, a claim that was pressed on during the 90-minute debate. He admitted that he “misspoke on this” and clarified he had arrived in the city later in the year.

Vance praised the White House for keeping Donald Trump’s tariffs on imports from China, first imposed in 2018 over concerns about trade deficits and market access restrictions, but said Harris had “run away from Joe Biden’s record”.

Biden has largely maintained the tariffs, and has since raised duties on Chinese electric vehicle imports to 100 per cent.

“Think about this. If you’re trying to employ slave labourers in China at US$3 a day, you’re going to do that and undercut the wages of American workers unless our country stands up for itself,” Vance said.

The two candidates were also asked if they would support an Israeli strike on Iran after the extensive rocket attacks on Tuesday night.

Walz stressed in his response that Israel’s ability to defend itself was “absolutely fundamental”, but also stressed the importance of ending the humanitarian crisis in Gaza and the return of the remaining Israeli hostages.

He also attacked the Republican nominee, saying it was “those that were closest to Donald Trump that understand how dangerous he is when the world is this dangerous”.

“What we’ve seen out of Vice-President Harris is we’ve seen steady leadership. We’ve seen a calmness that is able to be able to draw on the coalitions to bring them together, understanding that our allies matter,” Walz said.

“When our allies see Donald Trump turn towards Vladimir Putin, turn towards North Korea, when we start to see that type of fickleness around holding the coalitions together, we will stay committed.”

Vance responded by saying that in office Trump had “actually delivered stability in the world”.

“He did it by establishing effective deterrence. People were afraid of stepping out of line,” he said.

“Donald Trump recognised that for people to fear the United States, you needed peace through strength. They needed to recognise that if they got out of line, the United States’ global leadership would put stability and peace back in the world.”

Vance said it was ultimately up to Israel whether it wanted to strike back at Iran but added that “we should support our allies wherever they are, when they are fighting the bad guys”.

In his campaign, Trump has repeatedly claimed that the war in Ukraine would never have started if he was in power, suggesting that he could end the conflict “in 24 hours”. On Israel, he has urged Israel to “finish up” its Gaza offensive.

After the debate concluded, Trump praised his running mate’s performance, saying he “crushed it” and did a “GREAT JOB”.

“Walz was a Low IQ Disaster – Very much like Kamala. Our Country would never be able to recover from an Administration of these two. Can you imagine them representing us with sharp, fierce Foreign Leaders? I can’t!”

Hang Seng Index soars 6.2% as Blackrock’s ‘overweight’ call fuels frenzy for China stocks

https://www.scmp.com/business/markets/article/3280741/hong-kong-stocks-surge-sixth-day-blackrock-modestly-overweight-china-shares?utm_source=rss_feed

Hong Kong stocks soared for a sixth day in a row, hitting a 20-month high as the China market frenzy rolled on. BlackRock said more stimulus measures from Beijing could be in store.

The Hang Seng Index jumped 6.2 per cent to 22,443.73 on Wednesday, the highest level since January 2023. The Tech Index surged 8.5 per cent. A gauge tracking US-listed Chinese stocks rallied 5.5 per cent in New York overnight. Financial markets in mainland China are closed this week for a holiday.

The Hang Seng Index’s 1,310-point gain today is the biggest single-day jump since March 2022. Trading volume totalled HK$434 billion, despite the Stock Connect scheme linking the market with onshore exchanges being closed.

In total, the city’s benchmark gauge has surged 23 per cent over the past six trading days after Beijing’s policy roll-out, making it the quickest bull run since 2008. More than US$770 billion in market value has been restored to the market, according to Bloomberg data.

All but five of the 82 index members jumped on Wednesday. Food delivery platform Meituan surged 14.7 per cent to HK$197.20, e-commerce platform operator JD.com advanced 10.7 per cent to HK$185.10 and search engine operator Baidu rallied 9 per cent to HK$115.20.

“We see room to turn modestly overweight [on] Chinese stocks in the near term” given their near-record discount to developed-market shares even with the recent surge, BlackRock strategists said in note on Tuesday. More fiscal stimulus may be coming and that will prompt investors to join in, they added.

Wall Street banks – including Morgan Stanley – are now scrambling to raise their targets on key China equity indices after the rally burned short-sellers by nearly US$7 billion. Over US$3 trillion has been recovered to Chinese equities in total during the frenzy, which helped it reclaim the top position in a key MSCI gauge tracking emerging markets.

Adding to the gains on Wednesday, EV maker Li Auto advanced 12.3 per cent to HK$121.50 and BYD rallied 5.5 per cent to HK$299.40 after posting fresh sales records last month amid new model launches and subsidies.

Meanwhile, Longfor surged 24.7 per cent to HK$18.76 and China Resources Land jumped 10.5 per cent to HK$31.65, leading a 14.9 per cent gain among mainland developers listed in Hong Kong. The rally came as three of China’s biggest cities relaxed home purchase restrictions to help curb the property market rout.

Elsewhere, Chinese kitchenware producer Carote surged 58 per cent to HK$9.15 on its first day of trading in Hong Kong.

Other Asian markets traded lower amid rising tensions in the Middle East. Japan’s Nikkei 225 Index lost 2.2 per cent, South Korea’s Kospi Index weakened 1.2 per cent and Australia’s S&P/ASX 200 Index declined 0.1 per cent.

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India gains ‘advantage’ over China as Sri Lanka’s new leader seeks to balance ties

https://www.scmp.com/week-asia/politics/article/3280672/india-gains-advantage-over-china-sri-lankas-new-leader-seeks-balance-ties?utm_source=rss_feed

India has Sri Lanka’s ear on security matters, observers say – citing Colombo’s appreciation for its neighbour’s help during its recent economic crisis – even as the South Asian island nation’s new president strives to balance ties with New Delhi and Beijing.

Sri Lanka elected Marxist lawmaker Anura Kumara Dissanayake as president on last month, marking a decisive shift away from the old political elite that many blamed for the country’s economic collapse.

Dissanayake triumphed over opposition leader Sajith Premadasa and former president Ranil Wickremesinghe, who had assumed power two years ago after the economy hit rock bottom.

The election came as Sri Lanka strives to recover from a severe crisis marked by shortages of essential goods, including food, medicine, and fuel, sparking widespread protests in 2022 that ultimately forced former president Gotabaya Rajapaksa to resign and flee the country.

Sri Lankan leaders – including Dissanayake – must adeptly balance relations between India, China, and other major powers such as the United States and Japan, said Neil Devotta, professor of politics and international affairs at Wake Forest University in the US.

Although his political background rooted in Marxist ideology, Dissanayake has evolved into a “practical nationalist”, focused on foreign policies that prioritise Sri Lanka’s interests, Devotta said.

With an eye on revitalising the economy and easing austerity measures that have hurt the poor, Dissanayake is likely to pursue domestic and foreign policies that enhance economic stability.

“India is likely to have an advantage in this regard given its proximity and the possibility for Sri Lankans to link with the economic developments in South India,” Devotta said.

While Dissanayake’s National People’s Power (NPP) alliance has traditionally harboured “warmer feelings for China over India”, Devotta said that anti-India sentiment was “much diminished compared to the past”, largely due to the gratitude felt for Delhi’s extensive support during the island’s economic crisis.

India provided around US$4 billion in financing during the unprecedented crisis brought on by mismanagement and corruption, enabling Sri Lanka to sustain essential imports and maintain its foreign currency reserves.

Earlier this year, Indian companies secured agreements in sectors ranging from energy to maritime logistics – including a 20-year power purchase agreement involving two new wind power stations in Sri Lanka’s north – further solidifying economic ties.

However, Dissanayake has previously expressed intentions to cancel the controversial wind power project with India, claiming it was corrupt and detrimental to Sri Lanka’s interests.

Devotta warned that any attempt to renegotiate these deals “while making even minor concessions to China … would upset India”.

Rajni Gamage, a research fellow at the National University of Singapore’s Institute of South Asian Studies, said Dissanayake, 55, was perceived to be closer to China, due to the Janatha Vimukthi Peramuna’s (JVP) historical and ideological affinities with Beijing.

Dissanayake’s socialist NPP coalition includes the JVP, a left-wing political group established six decades ago to promote a communist revolution in postcolonial Sri Lanka.

Despite these affiliations, Gamage expects Dissanayake to be “pragmatic and engage with Delhi”, acknowledging its vital role during the economic crisis. Given the increasing presence of Chinese naval vessels in the region, the NPP has indicated a willingness to consider India’s security concerns.

Both the NPP and Dissanayake have stressed their commitment to protecting the Sri Lanka’s core interests.

“However, the real test is when such a situation or event arises, where the president is forced to make a call on accommodating one country’s interests that could trigger security-related anxieties over the other”, Gamage said.

In January, Colombo declared a one-year moratorium on foreign research ships entering its waters, responding to Indian concerns over Chinese vessels docking nearby.

Chinese research ship Shi Yan 6 spent several days port in Colombo in October last year, and in 2022, the navy vessel Yuan Wang 5 docked at Hambantota in southern Sri Lanka, raising alarms in Delhi that these ships could be used for regional surveillance.

Sriparna Pathak, an associate professor of Chinese studies and international relations at the O.P. Jindal Global University in India, said Sri Lanka under Dissanayake was likely to enforce a ban on Chinese vessels regardless of external pressures.

“[The government] will ensure that these spy vessels from China, bulldozing over Sri Lankan interests merely due to the fact that Hambantota is now China’s, do not get entry into Sri Lankan exclusive economic zones,” she said.

The Hambantota deep water port, the nation’s second-largest, was leased to China Merchant Ports for 99 years in 2017.

Pathak expects that Sri Lanka will maintain the moratorium on ships, with Foreign Minister Ali Sabry indicating in July that the situation would be reassessed at the end of the year.

India had anticipated Dissanayake’s victory, Pathak noted, highlighting the Asian giant’s engagement with all political parties in Sri Lanka, including invitations extended to JVP leaders like Dissanayake to visit Delhi.

In February, Dissanayake met with India’s External Affairs Minister S. Jaishankar, later sharing on social media that they had a productive discussion about deepening bilateral relations.

“Sri Lanka in the past has benefited economically from its ties with India, and Dissanayake will adhere to the same policy,” Pathak said.

India stands as Sri Lanka’s largest trade partner and one of its top investors, with total foreign direct investment surpassing US$2.2 billion.

In 2021, India accounted for the largest share of foreign direct investment at US$142 million, focusing primarily on sectors such as petroleum, manufacturing, real estate, telecommunications, and banking and financial services.

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Made in China 2035: will it topple US hi-tech and military manufacturing in 10 years?

https://www.scmp.com/news/china/science/article/3280584/made-china-2035-will-it-topple-us-hi-tech-and-military-manufacturing-10-years?utm_source=rss_feed

China will overtake the United States in hi-tech and advanced military manufacturing within a decade, according to a prominent Chinese strategist.

“Overall, the decline of the US manufacturing industry and its weakened competitiveness in the global market have become an irreversible trend,” said Lu Yongxiang, former vice-chairman of the National People’s Congress, in a commentary published in the Chinese Journal of Mechanical Engineering on September 9.

Lu, who is also former president of the Chinese Academy of Sciences, is known for his rigour, pragmatism and foresight as a mechanical engineer, and has been influential in helping to shape the Chinese government’s long-term development strategies.

He has also served as the director of the expert advisory board for the “Made in China 2025” programme under the State Council.

While the US has maintained its lead in hi-tech and advanced military equipment production, its advantages are rapidly diminishing, according to Lu.

“It is estimated that by 2035, ‘Made in China’ will surpass the United States and become the global leader,” Lu said in the article.

Lu also predicted that China’s economy will be larger than America’s by that time. “The world will enter a new era,” he added.

In 2010, China’s manufacturing output surpassed the US according to the Chinese government, which cited statistics from the World Bank. However, Chinese factories lagged significantly in terms of technology and product quality. In 2015, Beijing launched a 10-year plan to narrow the gap, and this plan is expected to be renewed every decade.

However, “Made in China 2025” has since drawn significant responses from Washington and its allies.

Both the Trump and Biden administrations have imposed measures such as trade tariffs, semiconductor export controls and “small yard, high fence” policies to restrain China’s development. Yet, according to an investigation by the South China Morning Post, most of the goals outlined in the “Made in China 2025” plan have already been achieved.

Among them, the rise of high-end industries – such as shipbuilding, electric vehicles, drones, renewable energy, and industrial robots – has been much faster than expected, leaving behind competitors in the United States and other developed countries.

Last year, Chinese shipyards secured orders for the construction of over 1,500 large ships worldwide, while only five orders went to the US.

China contributed about one-third of the total global manufacturing output last year, roughly double that of the US.

Still, China’s manufacturing sector lags behind the US in some advanced fields, especially in advanced weapons production, according to Lu.

“Lockheed Martin’s pulse line in the United States maintains an annual assembly capacity of only 12 aircraft, but during wartime, relying on global supply chain collaboration, it can produce one aircraft every two days,” he wrote.

China has now produced more than 200 J-20 stealth fighters, surpassing the number of F-22s made by the US, but far fewer than the more than 1,000 F-35s that have been manufactured.

China has produced only two operational aircraft carriers, while the US has 11.

According to US media reports, some senior American military officers believe that a war between China and the United States could break out as early as next year.

China, meanwhile, is undergoing a painful economic transformation, with traditional industries such as real estate, retail and fossil fuel-powered car manufacturing shrinking, resulting in significant job losses. The average output measured by value of a Chinese worker is also significantly lower than the average American worker.

“We must turn the crisis into opportunities,” Lu wrote.

A long-term advantage of China’s manufacturing sector lies in technological innovation, he said.

“China’s research and development intensity has reached 2.64 per cent [of GDP], surpassing the average level of [European Union] countries,” he wrote.

Advanced infrastructure also helps create an excellent environment for investment in manufacturing.

“China not only ranks first in the world in terms of the length of high-speed rail and highways, but we also lead in the ultra-high-voltage transmission network.

“Furthermore, China is also at the forefront in the construction of gigabit-level optical cables and 5G broadband wireless communication networks,” Lu said.

“China not only possesses a vast pool of innovative human resources but also the world’s largest and rapidly growing domestic market for manufacturing. This makes China an irresistible attraction for global innovative talent and international capital,” he added.

Although the birth rate is declining, China’s quality of life has improved, which has also helped to enhance the competitiveness of its manufacturing sectors.

China’s average life expectancy is now 78.6 years, while the US sits at 77.5 years, according to government data.

“A nationwide health and epidemic prevention network, a healthcare database, and advanced facilities for medical research and clinical medicine covering a population of 1.4 billion provide a solid scientific and technological basis for national health,” Lu said.

The cause of the decline in US manufacturing lies in strategic misdirection, a lesson that Lu said is worth learning.

“In the global division of the manufacturing industry chain, the United States has transferred labour-intensive, low value-added manufacturing to developing countries, while focusing on retaining hi-tech research and development and vigorously developing virtual economies such as stocks, securities and financial investments,” he wrote.

“However, due to excessive financial bubbles, constant provocation of international conflicts, and intense partisan strife within the country, the US manufacturing industry is accelerating its shift from the real to the virtual economy.”

“The ageing of infrastructure in the United States, coupled with the declining attractiveness of manufacturing to the younger generation, has also accelerated the continuous decline of US manufacturing,” he added.

Both candidates in the US presidential race have made revitalising the manufacturing industry one of their top priorities.

US vice-president and Democratic candidate Kamala Harris has said that she will boost investment in hi-tech industries such as chips and aerospace.

The Republican contender, former US president Donald Trump, has promised radical measures to bring manufacturing jobs back to the country.

During a campaign speech last Wednesday in Savannah, Georgia – a vehicle manufacturing hub and home to one of the country’s largest ports – Trump said a vote for him would result in a “mass exodus” of manufacturing from US allies South Korea and Germany, as well as economic rival China.

“We will take other countries’ jobs. We’re going to take their factories,” he said.

In break from tradition, China receives no formal statement from US on National Day

https://www.scmp.com/news/china/diplomacy/article/3280766/break-tradition-china-receives-no-formal-statement-us-national-day?utm_source=rss_feed

In a departure from past practice, the US Department of State is yet to release a formal congratulatory message to mark China’s National Day.

On October 1, China celebrated the 75th anniversary of the founding of the People’s Republic of China accompanied by a week-long national holiday.

The US State Department has traditionally congratulated China before its National Day, as it does with all nations with which it has diplomatic ties. In previous years it congratulated China in statements on September 29 last year and on September 30, 2022.

This year, it sent out congratulatory messages to Nigeria and Cyprus, which both celebrated independence on October 1, and to Guinea for its national celebration on October 2.

The State Department did not touch on the subject during its daily press briefing on Tuesday, which centred on US responses to Iran’s missile attacks on Israel.

The department did not respond to a request for comment.

Leaders or senior officials from Europe, including Germany, Italy and the European Union, sent congratulatory messages to China, as did Russian President Vladimir Putin and North Korean leader Kim Jong-un.

State Department and White House officials, however, attended a Chinese National Day reception hosted by Beijing’s embassy in Washington on Monday. Daniel Kritenbrink, US assistant secretary of state for East Asian and Pacific affairs, gave a brief remark at the embassy to congratulate China and its people on the occasion.

At the event he underlined the importance of managing US-China relations despite their differences.

“I can assure you to all of my friends here that the United States of America will remain committed to doing everything possible, to maximising cooperation, to managing our many differences, and to doing so in every instance in the most responsible way possible,” he said before giving a toast to the guests.

“I also want to underscore that whatever we do, it’s also important to make very clear that we stand for continuing to strengthen the ties between the people of the United States and the people of China.”

Sarah Beran, the White House National Security Council senior director for China and Taiwan affairs, also attended the reception.

Kritenbrink’s message came as the US and China have been locked in an intensifying rivalry over issues from trade to tech to the Indo-Pacific. China conducted a military drill in the contested South China Sea on its national day following a joint exercise by navies of the US, Philippines, Japan, Australia and New Zealand at the weekend.

On Monday, Chinese President Xi Jinping addressed a reception at the Great Hall of the People attended by 3,000 guests, including senior officials and foreign diplomats. He urged efforts to “resolutely overcome uncertainties and unexpected risks and challenges” as the country faces economic and geopolitical challenges.

The US presidential election next month is widely seen as pivotal to the future of bilateral ties.

Both presidential candidates – Republican nominee and former US president Donald Trump as well as Democratic nominee and US Vice-President Kamala Harris – are perceived as espousing a tough policy on China.

Their respective running mates, senator J.D. Vance and Minnesota Governor Tim Walz, were also grilled about China in the vice-presidential debate on Tuesday.

Japan wants ‘China to behave responsibly’, new foreign minister says

https://www.scmp.com/news/asia/east-asia/article/3280773/we-seek-china-behave-responsibly-says-japans-new-foreign-minister?utm_source=rss_feed

Japan’s new Foreign Minister Takeshi Iwaya said on Wednesday that Tokyo wants a “stable relationship” with China based on common interests, although “what we need to assert will be asserted”.

“We hope to mutually work towards building a constructive and stable relationship,” Iwaya said in his first press conference after being nominated by Prime Minister Shigeru Ishiba on Tuesday.

The minister said he hoped to meet his Chinese counterpart Wang Yi “as soon as possible” for “frank exchanges and dialogue”, but a date had not yet been decided.

Relations between the neighbours have worsened as China builds up its military presence around disputed territories, and as Japan boosts security ties with the United States and its allies.

“Between Japan and China, there are many outstanding issues and challenges, but at the same time there is much possibility and potential,” Iwaya said.

Both are “major countries holding an important responsibility jointly for achieving peace and prosperity for this region and the entire international community”.

But also, “we seek China to behave responsibly”, Iwaya added.

“We are seeing attempts to unilaterally change the status quo in the East Asia region, so we need to build a system that can firmly deter such attempts,” he said.

On Wednesday, Chinese President Xi Jinping congratulated Ishiba, who was approved as prime minister by parliament on Tuesday after winning a ruling party leadership vote.

Echoing comments made by Ishiba earlier on Wednesday, Iwaya also expressed “deep concern” over missile attacks by Iran on Israel.

“We strongly condemn this kind of escalation, and … strongly urge all parties concerned to calm the situation.”

Mainland Chinese tourists choose cheap Hong Kong eats touted online for ‘golden week’ trips

https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3280777/mainland-chinese-tourists-choose-cheap-hong-kong-eats-touted-online-golden-week-trips?utm_source=rss_feed

Mainland Chinese tourists have been seeking out authentic, affordable Hong Kong food and faithfully following social media tips during the National Day “golden week” holiday, while a catering industry leader has forecast a 10 per cent increase in business.

“The milk tea here is not bad, a bit watered down though,” 43-year-old Guangdong visitor Vivian Huang told the Post, while taking a photo of the drink she had just bought on Gage Street.

The drink from Lan Fong Yuen, a cafe which has long claimed to be the inventor of local-style milk tea, has frequently appeared on the mainland’s Instagram-like social media platform Xiaohongshu.

The mother of two shared her thoughts on Wednesday, the third day of her visit to the city with her husband and their two children, aged eight and 12.

The family, who are in Hong Kong for four days, are travelling on a budget of about HK$35,000 (US$4,500), with HK$15,000 going toward three nights of luxury hotel accommodation in Kowloon.

Huang said the family had considered travelling overseas during the break, but were unsure whether Huang’s husband could step away from work and opted for a last-minute trip to Hong Kong.

“We won’t skimp on hotels since we have children, but other than that, I prefer eating local food and learning about its history,” she added, pointing to the city’s cha chaan teng, referring to local cafes, and wonton noodle joints.

“Maybe we will have one expensive meal tomorrow, when we go to Disneyland.”

Mainland tourists in Hong Kong also continued the trend of focusing on affordable local cuisine, city strolls and visiting photo spots recommended by social media, rather than splashing out on luxury shopping such as before the Covid-19 pandemic.

The change in consumer habits has left the local government and the tourism, catering and retail sectors struggling to adjust and offer new experiences.

The latest government figures showed the total value of retail sales in July stood at HK$29.1 billion – an 11.8 per cent drop compared with the same month last year. The figure also marked the fifth consecutive month of declining sales.

Experts said the reduction in spending was partly due to Hong Kong’s relatively expensive currency as a result of being pegged to the US dollar.

But Hong Kong Federation of Restaurants and Related Trades president Simon Wong Ka-wo said he hoped the situation for caterers would improve this holiday, predicting the industry would record HK$9 billion worth of business for October.

The estimate is higher than the HK$8 billion logged for the same month in 2023, which included the first golden week break since the mainland border reopened earlier that year.

“It would be an increase of about 10 per cent – that’s not bad,” he said.

Wong said the main reasons that business could increase were the recent improvement in local economic conditions, the stock market’s positive performance, residents’ growing willingness to spend and the forecast rise in mainland tourist numbers.

Immigration Department data showed 221,644 mainland visitor trips to Hong Kong were recorded on Tuesday.

The department earlier said it expected to log 10 million trips at the city’s various control points between September 28 and October 7.

Wong said the sector made nearly HK$300 million on National Day, matching the last year’s figure for the holiday.

On the gaming front, the Hong Kong Jockey Club recorded a betting turnover of nearly HK$1.57 billion on Tuesday, marking a 7.5 per cent increase compared with the event held for last year’s holiday.

This year’s attendance reached nearly 25,000 people, including more than 5,200 mainland tourists.

Meanwhile, a 26-year-old visitor from Guangzhou who only gave her name as Qing, said she was in Hong Kong for a couple of days and planned to visit some cha chaan teng, adding she was spending about HK$900 a night to stay at a hotel in Kowloon.

“Hong Kong has a unique old city vibe, and coming here is very convenient,” she said. “But I think if you come here, you have to expect things will be expensive, and you need to find your way to handle that.”

Additional reporting by Harvey Kong

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Malaysia defies China’s patrols to expand South China Sea oil, gas drilling: report

https://www.scmp.com/news/asia/southeast-asia/article/3280751/malaysia-defies-chinas-patrols-expand-south-china-sea-oil-gas-drilling-report?utm_source=rss_feed

Malaysia is expanding oil and gas exploration in the disputed South China Sea despite pressure from Chinese vessels that have maintained a constant presence in waters where both sides have overlapping claims, according to a new report.

Short-range coastal tracking data show that China’s coastguard ships operated in waters claimed by Malaysia “like clockwork”, with at least one of its vessels stationed in Malaysia’s exclusive economic zone or continental shelf area nearly every day of the year, according to the Washington-based Asia Maritime Transparency Initiative.

“Despite the CCG’s [Chinese coastguard’s] efforts, Malaysia has not only continued its existing oil and gas production but also expanded exploratory activity,” according to the report published on Tuesday. It adds that Chinese vessels spent most of their time near Luconia Shoals, a group of mostly submerged reefs 80 nautical miles (150km) northwest of Sarawak state on Borneo that sits between a number of major Malaysian oil and gas projects.

The study comes after the leak of a diplomatic letter weeks ago in which Beijing privately urged Malaysia to halt its offshore oil and gas activities near Luconia Shoals, prompting a rare public acknowledgement of the long-running dispute from Prime Minister Anwar Ibrahim just as his government seeks to foster deeper economic links with China.

“China is a great friend, but of course we have to operate in our waters and secure economic advantage, including drilling for oil in our territory,” he said during a visit to Russia.

Stretching from the Chinese mainland down to Malaysia and Indonesia, the South China Sea is a critical artery for global trade, including about 37 per cent of the world’s maritime crude. China has laid claim to a vast swathe of the waters, based on a vague 1940s map that has broadly been rejected by other nations and a UN tribunal.

To assert its expansive claims, China has utilised a maritime militia of fishing fleets and coastguard vessels to swarm resource rich waters, effectively blocking other claimant nations like the Philippines and Vietnam from tapping the deposits beneath the surface.

“While China’s presence at Luconia Shoals is continuous, it doesn’t come close to matching the scale of activity farther north in the Spratly Islands, where Beijing has deployed dozens of coastguard and hundreds of militia ships to contest Philippine activities in disputed waters,” the Asia Maritime Transparency Initiative report said.

“However, with Malaysia’s expanding drilling and a potential reduction in China-Philippine tensions, Beijing could ratchet up the pressure on Malaysian hydrocarbon production.”

Be ‘bold and steady’, Beijing tells officials amid China’s race to achieve GDP growth goal

https://www.scmp.com/economy/economic-indicators/article/3280755/bold-and-steady-beijing-tells-officials-amid-chinas-race-achieve-gdp-growth-goal?utm_source=rss_feed

Beijing is asking officials to take a “bold and steady” approach, a mantra of China’s late paramount leader Deng Xiaoping, to lift national morale and stimulate the economy in the push toward the annual growth target.

In an article on Sunday, the state-run Study Times stated President Xi Jinping’s emphasis on the need to combine an adventurous spirit with a steady approach to reform and opening up.

Officials must be adventurous and take bold steps “to initiate reforms in the most pressing current issues, addressing the key concerns of the people and the major barriers to economic and social development”, said the media outlet under the Central Party School.

“We need to be fearless and bold in our attempts, exploring reforms based on in-depth analyses of objective laws,” it said, adding that party members should also be “steady” in reform efforts and stay on track while avoiding “catastrophic mistakes”.

The quote, originally formulated by Deng in 1985, emphasised reforming China’s economic model cautiously without undermining the party’s principles, as courage is needed to carry out a comprehensive reform of economic systems.

Xi later referenced the classic quote, urging party members to “dare to gnaw on hard bones and wade through dangerous shoals”.

The change in attitude came after an unexpected Politburo meeting last week, where Xi pledged to support the private sector and urged officials nationwide to prioritise economic revival.

Xi also encouraged officials to boldly implement measures without fearing the consequences of potential mistakes, as a prolonged drag in domestic demand is hindering Beijing’s ambitions to achieve an “around 5 per cent” growth in China’s gross domestic product this year.

The stock markets responded strongly to Beijing’s rare and extensive stimulus measures, with a surge in prices and trading volumes. And analysts were expecting additional fiscal support soon.

“Given the campaign-style nature of China’s party-state system, bureaucrats will double down on the new policy direction set by the top leaders,” said Larry Hu, chief China economist with Macquarie Group, adding that last week’s policy move was “intensive”, as well as a closely coordinated effort among various government agencies.

“The use of such a shock-and-awe approach is rare for Beijing,” he said.

Hu said Beijing’s recent actions may partly stem from concerns over social stability due to rapidly rising unemployment and heightened fiscal pressures on local governments. Amid the revenue shortfall, non-tax revenues, including fines imposed on business owners, have risen by 12 per cent this year.

“The experience of the 2022 reopening has taught us that, when the risk of social unrest rises, policymakers blink,” he said.

“Later in October, the government may announce additional quota for special sovereign bonds or special local government bonds,” Hu added.

Separately, on Tuesday, the first day of China’s “golden week” holiday, the State Administration for Market Regulation said that it would swiftly implement measures to support economic growth.

These measures include streamlining administrative procedures for businesses, enhancing financing support for small and medium-sized enterprises (SMEs), and intensifying efforts to address the collection of fines imposed on businesses that violate the law.

EU to vote on Chinese electric vehicle tariffs, Tesla vs China: 7 EV reads you missed

https://www.scmp.com/news/world/article/3280759/eu-vote-chinese-electric-vehicle-tariffs-tesla-vs-china-7-ev-reads-you-missed?utm_source=rss_feed

We have put together stories from our coverage on electric and new energy vehicles from the past two weeks to help you stay informed. If you would like to see more of our reporting, please consider .

1. D-Day looms for China’s exporters as EU moves towards EV tariffs vote

October 4 is a date that cannot come soon enough for European Union bureaucrats, but one the Chinese government desperately wants to avert. The EU’s 27 member states are slated to hold a crucial vote on whether to sign punitive tariffs of up to 35.3 per cent on Chinese-made electric vehicles into law for five years.

2. Malaysia must stay ‘open’ in EV push amid global trade tensions: minister

Malaysia must navigate global trade tensions carefully as it seeks to sustain competition in its electric-vehicle sector through incentives for local manufacturers and lure investment, according to its Investment, Trade and Industry Minister Tengku Zafrul Aziz.

3. EV maker Hozon says Hong Kong IPO is progressing, seeks funds to drive exports

Hozon New Energy Automobile said some aspects of its stock listing plan in Hong Kong are progressing faster than expected, aided by better market sentiment and the company’s urgency in selling more electric vehicles (EV) in overseas markets.

4. 5 Chinese EV makers set monthly sales records as discounts draw buyers

Top Chinese electric vehicle (EV) makers rode discounts and promotions to higher sales in September, as five companies – BYD, Leapmotor, Li Auto, Xpeng and Zeekr – set new monthly delivery records.

5. Tesla vs China: who is the winner in self-driving technology?

A battle for supremacy in autonomous driving is escalating in China, as major electric vehicle (EV) makers speed up development of cars with advanced driver assistance systems (ADAS) to lure buyers.

6. China’s commerce minister to discuss EV tariffs with US counterpart

Chinese Commerce Minister Wang Wentao will discuss US restrictions on electric vehicles with his American counterpart Gina Raimondo, state news agency Xinhua reported on Tuesday.

7. China’s EV exporters, dealers squeezed at home and abroad as price war rages

As a domestic price war has brought vehicle prices so low embattled dealers have urged the government to intervene, customs data shows Chinese carmakers are also slashing prices in overseas markets to stay competitive.

How Asean’s influence on China is growing

https://www.scmp.com/news/china/series/3280743/how-aseans-influence-china-growing?utm_source=rss_feed

Chinese missile boat chase at Half Moon Shoal sparks new South China Sea flashpoint fears

https://www.scmp.com/week-asia/politics/article/3280704/chinese-missile-boat-chase-half-moon-shoal-sparks-new-south-china-sea-flashpoint-fears?utm_source=rss_feed

A new flashpoint appears to be emerging in the South China Sea as reports surface of Chinese missile boats pursuing Philippine vessels and directing lasers at a patrolling aircraft near the contested Half Moon Shoal – raising alarms over Beijing’s expanding assertiveness in the disputed waters.

Strategically located about 60 nautical miles (111km) off Palawan Island, Half Moon Shoal could become another source of tensions, with analysts warning of its potential as a military airbase.

On Friday, a Cessna aircraft operated by the Philippine Bureau of Fisheries and Aquatic Resources spotted a Chinese coastguard vessel and two Type 22 Houbei-class missile boats chasing two BFAR boats near the contested atoll – known as Hasa Hasa Shoal in the Philippines and Banyue Jiao in China.

The Philippine vessels, BRP Datu Romapenet and BRP Taradipit, were en route to deliver aid and supplies to local fishermen when they were shadowed by the Chinese missile boats.

Philippine authorities reported that one of the Chinese vessels aimed a high-intensity laser at the Cessna, an act described by National Maritime Council spokesman Alexander Lopez as a serious threat to the safety of the Filipino pilots.

“Lasers, when pointed directly at the eyes of a pilot, can cause temporary blindness, he said on Monday. “Safety is compromised when the vision of the pilot is impaired.”

Lopez described the presence of the Chinese missile boats in the area as illegal. “They have no right to tail and intimidate our civilian vessels,” he said, adding that a reports would be made to the Department of Foreign Affairs for further action.

This is not an isolated incident. Last month, Chinese naval personnel reportedly blocked a fisheries vessel from performing a humanitarian mission in the same region.

Beijing has been accused of employing aggressive “grey-zone” tactics – such as firing water cannons and using high-intensity lasers – in a bid to assert its territorial claims without provoking outright conflict.

China claims nearly the entire South China Sea, including areas also claimed by the Philippines, Brunei, Malaysia and Vietnam. An international tribunal dismissed Beijing’s claims in 2016, declaring them without legal basis – a verdict that Beijing has consistently rejected.

The Chinese missile boats contravened the principles of a free, open and rules-based order, according to Chester Cabalza, a security expert and director of the Manila-based International Development and Security Cooperation think tank. He described their presence around Half Moon Shoal as “unusual and alarming”, suggesting that Beijing aimed to instil fear among Filipinos.

Cabalza cautioned against interpreting the ships’ movements as a mere “innocent passage”, viewing them instead as a clear sign of escalating aggression by China.

“China’s widening scope of escalating tensions in the West Philippine Sea will not succeed since this will disrupt the ecosystem and coexistence of other claimant states,” he said, using Manila’s term for the parts of the South China Sea lying within its exclusive economic zone.

Both the Philippines and Vietnam would contest China’s claims to the atoll, he said, further predicting that “the Chinese navy will not succeed” in occupying it.

One possible motive for China’s interest in Half Moon Shoal is its potential as a military outpost. An analysis by the Chicago Quantum consultancy in August indicated that the shoal’s geography, particularly its considerable length, could support the construction of an airfield. The rectangular atoll measures around 5km (3 miles) across at its longest point.

Located just south of the Second Thomas Shoal, where the BRP Sierra Madre has been intentionally grounded since 1999 as a Philippine outpost, Half Moon Shoal’s strategic value is significant. China has demanded the removal of the BRP Sierra Madre, claiming it harms marine life.

Sherwin Ona, a political-science professor at De La Salle University, described China’s actions near Half Moon Shoal as a deliberate attempt to escalate tensions in the West Philippine Sea.

“These incidents will continue with the intent of testing the resolve of the Philippines and its allies,” he warned, noting that increased Chinese coastguard and militia activities could signify “de facto control over the area”.

Ona also pointed to a broader pattern of Chinese incursions across the region, including in the Taiwan Strait and Malaysia’s exclusive economic zone, which he said was part of Beijing’s strategy “to push its illegal claims, aimed at strengthening its domestic narrative”.

Muhammad Faizal Bin Abdul Rahman, a research fellow at the Institute of Defence and Strategic Studies in Singapore, likened the situation to a high-stakes chess game.

“We are seeing more maritime jostling and diplomatic moves and countermoves between China and the Philippines to gain an edge over each other, but without further destabilising the already fraught relations,” he said.

Rahman suggested that China’s deployment of missile boats near Half Moon Shoal was a direct response to strengthening military ties between Manila and its allies, particularly the recent deployment of the US Typhon missile system in the Philippines.

This system, capable of launching long-range missiles such as the Tomahawk and SM-6, was introduced during joint military exercises in April and has remained in the country, provoking protests from China.

China’s actions in the Half Moon Shoal incident were an attempt to undermine Philippine maritime claims, Rahman said.

“We could picture all the shoals and features at the disputed waters as a constellation of conflict nodes,” he said.

“Depending on the circumstances, China could increase or decrease pressure on the various nodes and this aims to keep the Philippines off balance.”

The ‘Big Short’ on China became the ‘Big Squeeze’ that caught Wall Street on the back foot

https://www.scmp.com/business/markets/article/3280606/chinas-surprise-stock-surge-catches-wall-street-flat-footed?utm_source=rss_feed

Wall Street is scrambling to catch up after Beijing’s surprise stimulus onslaught set off a bull run on the Hong Kong and mainland China stock markets, catching short-sellers off guard.

China stocks will gain at least another 10 per cent in a tactical rally in the near term amid more stimulus efforts by the government, Morgan Stanley said in a note to clients on Monday. UBS, meanwhile, bumped its year-end target for the benchmark Hang Seng Index up by 7 per cent to 22,100.

Japan’s biggest brokerage Nomura similarly raised its year-end target for the MSCI China Index to 65 from 59 on the back of the measures from China and the Fed’s unexpected jumbo rate cut on September 18.

The sentiment could not be more different than just two weeks ago, when shorting China stocks was among the most popular trades on Wall Street, just after going long on the so-called magnificent seven technology stocks, according to Michael Hartnett, Bank of America chief investment strategist.

The conviction to short China amid a deflating economy has caused a “massive squeeze” amid the unexpected stimulus-induced rally, Hartnett said in a note to clients over the weekend.

“Market expectations have been rectified decisively, and investor confidence restored significantly” by the recent strong policy signals, said Thomas Fang, head of China global markets at UBS.

Robust support and protection for private enterprises and entrepreneurs is what the market had been hoping for, and now policymakers have sent firm and consistent signals to the market, he added.

The market has been on a tear after Beijing fired a policy bazooka to help end a housing market slump and shore up the economy on September 24. The Hong Kong and mainland markets both entered a bull market amid record turnover on Monday, with some US$1.8 trillion of value restored on the three exchanges over the course of the rally, according to Bloomberg data.

Global investors, who have been reducing their China exposure during the past three years of slump, are now set to rebalance their portfolios, which will add more fuel to the market rally, according to fund manager Value Partners.

Allocation to Chinese equities among global mutual funds shrank to 5.2 per cent in August, compared with a peak of 15 per cent in July 2021. Now that significantly underweight China exposure is set to be rebalanced, the firm said.

“These funds will need to restore their Chinese investments to a more rational level,” said Yu Chen Jun, deputy chief investment officer of equities at Value Partners. “Meanwhile, with restored confidence, Chinese households are reallocating their savings to the stock market.”

It will take time for Beijing’s policy measures to be felt in the real economy and for consumption to recover. Manufacturing data released on Monday showed some weak spots in the world’s second-largest economy, while potential homebuyers remain cautious.

However, Beijing has now shown a “whatever it takes” commitment to economic recovery and a strategic focus on reviving market sentiment by supporting asset prices, with a clear commitment to further action if needed, according to Deutsche Bank. The combination of all these factors should be a game-changer.

“China’s stimulus this time could be different from previous unsuccessful ones,” Yi Xiong, the bank’s chief economist, said in a note on Monday. “Sustained market momentum could trigger a positive wealth effect, potentially reversing the downward spiral in sentiment and encouraging consumer spending and business investment.”

China actress warned by doctors after adding ‘height-boosting’ drugs to son’s food

https://www.scmp.com/news/people-culture/trending-china/article/3280307/china-actress-warned-doctors-after-adding-height-boosting-drugs-sons-food?utm_source=rss_feed

Doctors in China issued a critical health warning after a well-known actress drew significant attention when she added “height-boosting” medicine to her 11-year-old son’s meals.

Deng Sha, 38, celebrated for her roles in popular Chinese costume TV dramas and boasting 7 million followers on Weibo, shared a video of herself preparing a nutritious dish for her son.

During the cooking process, Deng sprinkled some powder from a “height-boosting” drug onto the food.

She stated that her son, affectionately nicknamed Big Linzi, was among the shortest boys in his class, standing at 146cm compared to the average height of between 160cm and 170cm.

Big Linzi appeared on a renowned reality television show named Super Mom alongside Deng. His adorable and polite demeanour left a lasting impression on viewers.

The video rapidly became front page news across mainland China’s internet and has garnered over 100 million views on Weibo.

There is currently no evidence supporting the effectiveness of the capsules, and the specific brand and supplement composition were not disclosed.

In China, certain children’s health supplements marketed as “height enhancers” contain Vitamin D and the amino acid L-lysine, typically priced between 200 and 400 yuan (US$28-US$56) per bottle.

Reports from the mainland indicate that the National Medical Products Administration has not approved any drugs or medical devices for height enhancement. All products claiming such effects are likely engaging in false advertising, and their use could potentially endanger children’s health.

Doctors in China strongly caution the general public against using such height-boosting supplements on children.

Ma Huijuan, a paediatric expert at Zhejiang Zhongshan Hospital, informed Shanghai Television that while these products may temporarily stimulate growth, they can also prematurely close a child’s growth plates, potentially leading to various side effects.

Ma highlighted that Big Linzi’s height falls within the normal range for children.

She further noted that a child’s height is primarily influenced by genetics and can be effectively supported through a balanced diet and adequate Vitamin D from sunlight.

Online, Deng received a mixture of support and criticism, igniting a vibrant debate among netizens.

One online observer advised Deng not to fret unduly about her son’s height, pointing out that boys typically experience a rapid growth spurt during secondary school.

However, Deng countered that argument, stating: “What if he does not grow taller later? It would be too late to do anything by then.”

Another individual expressed solidarity with Deng, commenting: “Every parent wants their child to grow healthy and strong. A mother would certainly not wish harm upon her son.”

There have been additional reports of attempts at height enhancement throughout China.

A 29-year-old man from central China’s Henan province felt inferior due to his height of only 164cm. He underwent leg-lengthening surgery costing 100,000 yuan (US$14,000), only to be dissatisfied with the uneven results in his legs.

China, US agree to revive health cooperation after years-long chill

https://www.scmp.com/news/china/article/3280709/china-us-agree-revive-health-cooperation-after-years-long-chill?utm_source=rss_feed

China and the United States have agreed to improve coordination and cooperation on global health affairs between their technical agencies, state news agency Xinhua reported on Monday.

Following talks in Washington, Cao Xuetao, the deputy head of China’s National Health Commission, said China was willing to better communicate policies with the US and work together on areas such as cancer prevention and treatment, chronic disease management, ageing and medical research.

Andrea Palm, deputy secretary of the US Department of Health and Human Services, said she was looking forward to cooperation in health-related fields, which also include climate change-related health issues, nutrition and antimicrobial resistance.

Both officials agreed that health cooperation between Beijing and Washington was beneficial to “global well-being” and health security, Xinhua reported.

During the first ministerial-level visit to the US by Chinese health authorities since 2017, Cao, an immunologist, met directors of several centres at the US National Institutes of Health, as well as the president of the National Academy of Medicine, Victor Dzau.

The officials said they recognised the value of medical exchanges and cooperation between the two countries and were willing to hold more exchanges, Xinhua reported.

However, the report did not mention sensitive issues, such as research on the origin of Covid-19 or cooperation in monitoring emerging infectious diseases.

The renewed efforts to restore ties came as the world’s two largest economies seek to advance high-level talks and increase engagement in areas such as economics and finance, climate change, military defence policy coordination, and the fentanyl crisis in the US.

Last week, on the sidelines of the United Nations General Assembly in New York, the top diplomats from both countries agreed to “maintain communication on international and regional hotspot issues and hold a new round of consultations on Asia-Pacific affairs”, according to China’s foreign ministry.

Chinese Foreign Minister Wang Yi and US Secretary of State Antony Blinken discussed divisive issues including Taiwan, the South China Sea, Ukraine and America’s stance on China’s trade and technology.

In August, when US national security adviser Jake Sullivan visited Beijing, he and Wang agreed to continue bilateral anti-narcotics cooperation and climate change collaboration, as well as hold a new round of intergovernmental dialogue on artificial intelligence.

US-China relations sank after the pandemic as both countries blamed each other for poor handling of coronavirus outbreaks while speculation grew over the origins of Covid-19.

In an article published in the medical journal The Lancet in 2021, researchers from both countries said that after the pandemic erupted, Chinese researchers in the US, especially those who closely collaborated with Chinese institutions, came under intense scrutiny from their employers, funding agencies and law enforcement.

“The tension has been initiated and has intensified more at the higher political levels – senior elected and appointed officials in health and diplomatic sectors – than at the scientific or technical levels – scientists and researchers,” the article said, highlighting the need to restore partnerships in health and medicine between government agencies that has been hampered by politics.

How China’s ‘one-child generation’ got trapped in the population pyramid

https://www.scmp.com/economy/china-economy/article/3280578/how-chinas-one-child-generation-got-trapped-population-pyramid?utm_source=rss_feed

Wendy Liu has grown to dread the sound of her phone.

These days, most calls mean a parent of the 47-year-old vocational school teacher has been rushed to the hospital. Whether her mother with Alzheimer’s disease or her father with cancer, any emergency means a long, anxious drive from work to her home in Guangzhou – a stress-ridden trip she has made on countless nights.

Liu and her husband Deng Jie are members of China’s first generation of only children. Born in 1977 – only a year after the country instituted a one-child limit for most urban households – they not only have to raise two children, but also care for four ageing parents.

Last month’s announcement of higher retirement ages and persistent levels of youth unemployment are adding to worries they will need to work longer than their parents did, all the while providing more financial support to their adult children.

The dilemma of balancing care for the elderly and the young is becoming more commonplace as this cohort enters middle age. This “sandwich generation” is being overwhelmed with threefold pressures: a longer life expectancy for their elderly parents, extended dependency periods for their children, and hurdles in their own careers compounded by an economic downturn.

Raised without any siblings in the 1980s, China’s first batch of only children were once jokingly called “little emperors” for being the sole focus of their families.

But as they have grown into adulthood and started families of their own, these former household monarchs have found themselves on the wrong end of a top-heavy population pyramid.

According to the National Bureau of Statistics, between 1982 and 2023 the average life expectancy in China rose from 68 to 78.6 years, while the proportion of people aged 65 and older jumped from 4.9 to 15.4 per cent.

At the same time, the children of the “sandwich generation” are grappling with an unforgiving job market, with many dependent on family support even after graduation.

Per official figures, the jobless rate for the 16-24 age group excluding students rose to 18.8 per cent in August, up from 17.1 per cent in July.

The plight of Liu and Deng, seen in families around the country, is having downstream effects almost certain to dampen the younger population’s desire for marriage and children even further.

Deng, once a real estate project manager, lost a secure income amid a prolonged slump in China’s property market. Liu, meanwhile, is working hard to secure a professorship, leaving her little time to look after her parents.

Although Deng’s parents are still in good health relative to Liu’s, their advancing age has brought a greater need for daily care.

“I’m anxious, but the reality is that there will be more caregiving ahead, and I won’t be able to manage it all – let alone start a new career,” Deng said. “The only ‘relief’ may come if one of our parents passes away, but that is heartbreaking.”

With Deng’s income stagnating and their daughter unsure if she will find a job after graduation, things are looking bleak – and their two flats have also depreciated in value.

“Our wealth is starting to be insufficient to cover our current expenses, let alone future costs as we age,” Deng said. The couple’s daughter, currently in her third year of college, needs about 100,000 yuan (US$14,251) a year for tuition and living expenses. Education costs are also rising for their 12-year-old son.

According to a projection from Peking University’s department of sociology, the proportion of “dual-only-child families” where both parents are only children will peak at 34.2 per cent by 2030 in urban areas. ‘Single-only-child families’, where one parent is an only child, will account for nearly 50 per cent. Both are expected to present unprecedented challenges in elder and child care alike.

“My husband and I have a combined monthly income of just about 30,000 yuan this year – a third less than last year – and we can’t put anything into savings,” said Li Wei, a photographer and part of an only child couple born in the late 1980s.

“The outlook is grey,” she said. “We are in Shenzhen, my parents are hundreds of kilometres away in Shantou, and my husband’s parents are thousands of kilometres away in Yancheng. We have a mortgage of over 900,000 yuan to pay off and children to raise.”

To make matters worse, the simultaneous ageing of the population and decline in birth rate are having a suppressive effect on consumption, which may in turn harm China’s overall economy, said leading demographic economist Cai Fang at a conference in Beijing last month.

“Our parents are in their 60s,” Li said. “They might continue to work odd jobs to save some money for the next time they get sick.”

Yi Fuxian, a senior scientist at the University of Wisconsin-Madison who studies Chinese demographics, has argued China’s one-child policy has necessitated an increase in the retirement age and depressed the youth population, resulting in insufficient domestic demand, lower employment and exports – all of which conspire to limit growth.

“When other countries reach China’s current tertiary enrolment rate, the service sector [typically] provides 70-80 per cent of jobs,” Yi said. “But due to underconsumption, China’s service sector provides only 45 per cent of jobs. This makes it difficult to employ college graduates who are primarily engaged in the service sector, resulting in high youth unemployment and declining marriage and fertility rates.”

China’s social security system has yet to account for the shortfall. According to data from 2022, less than one-third of Chinese workers pay into unemployment insurance, and only one-quarter of the urban unemployed actually receive benefits. More than half of all pensioners, primarily rural seniors, received a paltry average sum of 205 yuan a month.

And these are the early days of the demographic shift. One study by Peking University estimated that by 2030, China will have more than 77 million elderly people in need of long-term full-time care.

“My parents are retired workers, and although each has a pension of more than 4,000 yuan, it can’t cover their medical expenses,” said Xiao Hui, a 43-year-old media manager living in Shenzhen and another only child.

Her parents are both in their 70s. One suffers from Sjogren’s syndrome and polio, and the other has Parkinson’s disease – conditions which require costly medications and frequent hospitalisation to treat.

“After insurance reimbursements, I have to pay at least 90,000 yuan a year for their medicine bills, let alone care fees,” Xiao said.

“Probably the only way out is to sell the house to meet the expenses of my parents and children. But when my husband and I grow old, odds are our children will repeat what we are going through now. That thought breaks my heart.”

Independent demographer Huang Wenzheng said the present quandaries of the only child generation could snowball, as other age groups witness their hardships and seek to avoid their fate at all costs.

“The government must realise that future economic issues stem from an excessively shrinking population,” Huang said. “There has never been a case like China’s where a country’s annual newborn population dropped by half in just seven or eight years, and the root of the problem can be traced to the one-child policy.”

One group of retirees seems to have avoided such a fate – those formerly employed by China’s vast bureaucracy.

Many leaving the urban state apparatus depart with higher pensions and levels of healthcare reimbursement than their rural and private-sector peers, providing the elderly in this contingent with a level of stability that allows their children to breathe easier. In some cases, even “one-child couples” can ask parents and grandparents to assist with major purchases, a phenomenon referred to as having “six wallets”.

But in the medium term, the bigger picture is far from certain. The International Monetary Fund has projected China’s gross domestic product growth will drop to about 3.3 per cent by 2029, a significant decrease compared to last year’s 5.2 per cent.

“No one can solve [this group’s] suffering without effective incentives and changing society’s pessimistic expectations for a continued population shrinkage,” he said. “Only then will companies have the confidence to invest and young people have job opportunities and stable incomes; otherwise, the social and economic pressures on young people in the future will worsen.”

Apple may need to turn to China after Indian Tata plant fire, sources say

https://www.scmp.com/news/asia/south-asia/article/3280710/apple-may-need-turn-china-after-indian-tata-plant-fire-sources-say?utm_source=rss_feed

Extensive damage from a fire at Tata Group’s Apple iPhone component plant in southern India could hamper production ahead of a festive season sales surge, an industry watcher and a source said, forcing the US firm’s suppliers to arrange critical parts from China or elsewhere.

The weekend blaze has caused an indefinite production halt at Tata’s Hosur plant in Tamil Nadu, the only Indian supplier of iPhone back panels and some other parts for both contract manufacturer Foxconn in the country and its own iPhone assembly at another plant.

Hong Kong-based Counterpoint Research said it estimates local sales of 1.5 million units of iPhone 14 and 15 models during the Indian festive season, which runs from late October to early November, and said Apple is struggling to fulfil all of that demand due to the fire.

“There will be a 10-15 per cent impact on production of older iPhone models from India. Apple could offset that impact by importing more components, and by re-routing more export inventory towards India,” said Neil Shah, a co-founder of Counterpoint, which has for years tracked Apple’s global shipments.

Apart from local sales, Tata, one of India’s biggest conglomerates, also exported iPhones to the Netherlands and United States as well as some parts to China, worth more than US$250 million overall, in the year to August 31, commercially available customs data shows.

Tata declined to comment.

Apple suppliers typically carry a three- to four-week stock of back panels, Counterpoint said. An industry source with direct knowledge of the matter estimated, however, that Apple was likely to have stock for eight weeks, and therefore would not see an immediate impact.

However, they added that if the production suspension continues, the US company could set up another assembly line in China or add shifts there to secure parts for India’s iPhone manufacturers.

Supply chain disruptions more generally have cast a shadow over Prime Minister Narendra Modi’s drive to attract foreign investors to “Make in India”, especially in the electronics sector.

Apple has been diversifying beyond China, but last year separate fire incidents in India caused suppliers Foxlink and Pegatron to briefly halt operations, with authorities finding much of the fire safety equipment at Foxlink’s facility was not functional. Contractors Wistron and Foxconn have also been hit by labour unrest in recent years.

“These are temporary setbacks,” said Prabhu Ram, vice-president at Cybermedia Research. “Continued efforts to improve safety and operational standards are crucial for strengthening India’s position as an emerging global electronics manufacturing hub.”

Tata is among Apple’s newest suppliers in India, which analysts estimate will contribute 20-25 per cent of total global iPhone shipments this year, up from 12-14 per cent last year.

The fire-hit plant employed 20,000 workers. Another unit in the same Tata complex was due to start making complete iPhones later this year, and it is unclear if the incident will cause this to be delayed.

Tata has another iPhone plant near Bengaluru, which it acquired from Wistron last year, and a second one in Tamil Nadu near Chennai, which it is set to acquire from Pegatron.

Chinese Students Shift from US to Australia, Britain

https://learningenglish.voanews.com/a/chinese-students-shift-from-us-to-australia-britain/7778485.html

A yearly report on international study shows the number of Chinese students in the United States fell by a small amount last year. Meanwhile, a growing number of Chinese students are choosing to go to less costly countries like Britain and Australia.

Experts say the cost of studying in the U.S., a struggling Chinese economy, and tension between the two countries are reasons for the changing numbers.

The number of foreign students studying in the U.S. during the 2022-23 school year passed 1 million for the first time since the COVID pandemic. That information comes from Open Doors, the yearly report on international study.

While the U.S. saw a 12-percent increase in foreign students in 2022-23, the number of students from China fell by 0.2 percent to 289,526. China still had more students in the U.S. than any other country that year.

India was the second-largest country to send students to the U.S. in 2022-23, with 268,923 students. That represents an increase of 35 percent from the previous year.

In the 2021-22 school year, the number of Chinese students in the U.S. fell nine percent. The COVID pandemic saw Chinese student numbers in the U.S. drop in 2020-21 by nearly 15 percent. That number is about the same as the drop in students from all parts of the world in 2020-21.

Vincent Chen advises Chinese students about studying abroad. He is based in Shanghai. He said most of the students he advises are still interested in studying in the United States. However, he also said there are growing numbers of students applying to study in Britain and Australia.

"If you just want to go abroad, a one-year master's degree in the U.K. is much cheaper,” Chen said. “Many people can't afford to study in the U.S., so they have to settle for the next best thing."

Data from the nonprofit U.S. group College Board Research shows that in the 2023-24 academic year, the average cost for a U.S. private college four-year education increased 4 percent to $41,540 compared with the previous academic year.

Foreign students, including Chinese students, also study in public U.S. universities. Those schools are generally less costly than private colleges.

The British Council said three to four years of undergraduate tuition in Britain costs as little as $15,000 per year.

The number of Chinese students in Britain was 154,260 in 2022-23, according to the U.K. Higher Education Statistics Agency, HESA. That is about 22 percent higher than in 2018-19, when the number was 121,145.

Australia’s Home Affairs office said in the 2023-24 program year, China was the top foreign country for new students at 43,389, up slightly from the previous year.

Chen gave two other reasons more Chinese students are choosing to study in Britain and Australia: Chinese media's negative image of the United States and concerns about unfair treatment in the U.S.

Bruce Zhang is a Chinese citizen who received his master's degree in Europe after studying in China. He told VOA’s Mandarin Service that he had such an incident happen to him after he was admitted to a U.S. university’s Ph.D. program.

When he entered Boston's Logan International Airport last year, Zhang said customs officers questioned him for more than an hour about his research. They asked him if it had any connections to the military. And he said they took his computer and mobile phone for examination.

Zhang was permitted to enter the U.S. for his studies in materials science. Still, the questioning left him so upset that he has told other Chinese to study elsewhere.

Cui Kai is a study abroad advisor based in the American state of Massachusetts. She told VOA Mandarin that experiences like Zhang’s -- or worse -- happen for a reason.

Cui said those students who are questioned or denied entry have usually come to the U.S. for advanced study in an area related to security.

Former U.S. President Donald Trump signed Proclamation 10043 in June 2020. That ruling denied visas to any Chinese student who had studied or worked in an organization connected to China’s “military-civil fusion strategy”.

The U.S. says China has been using students and researchers to get important technology. Under Proclamation 10043, the U.S. took away more than 1,000 visas given to Chinese nationals and has denied thousands more.

Critics say the policy is costly to the U.S. and is making Chinese students look to universities in Europe and other places.

I’m Andrew Smith. And I'm Anna Matteo.

 

Andrew Smith adapted this story for VOA Learning English based on reporting by Tracy Liu and Adrianna Zhang of VOA News.

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Words in This Story

apply -v. to formerly ask to be admitted into a school; to formerly ask for a job

afford -v. to be able to pay for something

tuition -n. the money schools charge students to attend their classes